NEVER Ask For A Signed Agreement Again: Presumptive Closes, Paperwork Must-Haves, and Plan B Options For Appointments. Probate Mastermind Podcast Episode 304All The Leads
In this episode of the Probate Mastermind Podcast, you'll learn how to: use presumptive closes to win appointments; motivate old leads to sell in Q4; be prepared with the right paperwork at every appointment; leverage flat-rate listings with MLS opt-out; find quality contractors and agent partners; motivate old leads to sell in Q4; and more!
These episodes are recorded as a live Question and Answer Mastermind with participation from agents and investors across the country. Thanks for tuning in, and don’t forget to subscribe for future episodes!
Episode Topics, Timestamps, and Resources:
Caller is signing a listing agreement today, but the seller was hesitant. What are some tips for getting a seller to commit right away? The seller mentioned wanting to see what another investor would offer before signing. Chad and Bruce answer. Caller describes how he turned this lead into a listing at (9:57), after really starting to focus on his probate leads just a couple weeks ago.
If a seller mentions they have an investor who might be interested in making them a cash offer, and you don’t want to make an offer on the property yourself, what should your next move be? Chad describes a common strategy he uses to generate a frenzy of cash offer: Flat-rate listing with MLS opt-out.
Caller asks for advice on handling awkward/rude objections. Chad and Jim advise and give a few examples of language to use.
Danny and Chad mastermind how to win commitment to an appointment/follow-up contact when a prospect is hesitant.
Johnathan is interested in finding quality contractors to work with in his real estate business. What are some ways to do this during coronavirus and social distancing? Chad and Johnathan discuss.
Johnathan is building out his “Dallas Life Transitions” brand. Does featuring his real estate logo help or hurt his marketing efforts? Chad discusses.
Johnathan and Chad discuss how to use the probate leads CRM to organize follow-ups and prospect efficiently.
Sam is working with a family that already had an agent in mind. One of the family members seems interested in meeting Sam’s agent partner as well. How can Sam navigate this? Chad breaks down how to make sure, as an investor or wholesaler, you have an agent-partner YOU are confident in. Next, Chad describes the process and language for setting an appointment and establishing your agent partner as a step above the competition.
Joyce is representing a personal representative. A buyer made an offer during the probate process but wants to back out. Can they do that? Chad gives a simple answer.
Joyce is getting the same objections from her old leads - Corona, corona, corona. What can Joyce do to build motivation and get personal representatives to stop putting off their real estate needs indefinitely? Chad advises.
Woo-Hoo Eddie!!! Congrats on the baby and all the deals you put together during such a big life event!! Eddie shares deals he’s closing through wholesale, investment, and brokerage strategies. Then he shares a current deal he’s working on with a personal representative who inherited his brother’s house. Eddie has the keys to the property but the personal representative won’t sign a contract. What’s the next move?
Eddie is working with a probate lead involving 8 heirs. One heir has possession of the property and already has a for sale sign posted, even though the other siblings haven’t agreed to sell or signed releases. The sibling living at the property is also asking for an unrealistic price. What’s the next move? Chad probes for more details and suggests creative financing options. Best idea here would be owner-financing and getting the siblings to roll the property into a land trust.
Whether the path forward is listing or selling to an investor, what paperwork should you always be prepared with? Chad discusses listing agreements, letters of intent, purchase agreements, and other information to come prepared with. He also shares a few strategies for putting deals together on the spot and reading the seller’s body language to determine which way to steer the ship. Chad also describes how real estate agents can make money wholesaling deals with proper disclosure. Bruce suggests writing reverse offers to buyers when a buyer seems to be on the fence.
A listener follows up on something mentioned earlier in the call, that it can take 18 months to close probate cases in some cases. Chad and Jim offer clarification on cash conversion cycles here: The timelines for property sale and probate court are two different timelines. Chad discusses some factors that can impact both.
Ron is an investor and is looking to build a relationship with a realtor to help with deals outside of his driving range. His strategy includes long-term buy and hold, wholesale, fix and flip and creative financing. Chad shares his advice to make sure the agent understands those things and how to establish an amicable relationship from there.
Ways To Catch This Episode of Probate Mastermind:
Transcript: Probate Mastermind Real Estate Podcast Episode #303
A.I. Voice Narration: [00:00:00] Welcome to the Probate Mastermind Podcast. These episodes are recorded live once a week and are hosted by the AllTheLeads.com coaches. Agents, investors, and wholesalers join the coaches each week for everything from marketing tips, sales, psychology, live deal analysis, transaction engineering, advanced real estate strategy and personal development.
You will learn to get more listings, more deals and find financial freedom by listening to these episodes. Be sure to catch show notes at AllTheLeads.com/podcast and join our free Facebook mastermind community: https://facebook.com/groups/AllTheLeadsMastermind
[00:00:33]Jim Sullivan (Host/Coach): Welcome to all of our astounding agents and investors from across the country. Today is Thursday, November 12th, 2020. And this is mastermind call number 304. We have a full queue, so let's get right to the first caller this week. And first up is phone number ending in zero three zero nine.
Never Ask For The Listing - How To Use Presumptive Closes.
[00:00:55] Caller 1: Hey guys how you doing?
[00:00:56]Jim Sullivan (Host/Coach): Great. How about you?
[00:00:57] Caller 1: Good. Good. So I got a two part question, one more is actually a success story. I was able to reach out to a client over at that property and we're actually signing a agreement today. So I'm excited about that.
[00:01:09] Jim Sullivan (Host/Coach): Awesome!
[00:01:09] Caller 1: What I was going to say next, it took me about a week before she actually signed and I wanted to see, what's the best way to approach something where I know I'm providing value and I know I'm giving them everything that they want, but there hesitant to sign. So I'm just trying to figure out what's the best way to do it?
[00:01:25] Chad Corbett (Coach): Why do you think they're hesitant?
[00:01:26]Caller 1: Because if they said Oh, we know we'll find out more on Friday, whether we're going to list over, we're going to, go with an investor and we'll agree.
[00:01:34] Chad Corbett (Coach): We'll make a decision then. And w why was Friday relevant?
[00:01:37] Caller 1: I honestly don't know.
[00:01:38] Chad Corbett (Coach): Yeah. my response to that would have been well, what if I could give you both? if we go ahead and list it today, we'll give you exposure to retail buyers that where you'll get probably a 20 to 40% premium.
[00:01:48]And if nobody comes through your investor can always make an offer. And if you would like me to exclude my commission on that particular buyer that you have in mind, I'm happy to do that. I'll write it in right here. Okay. And then you turn the paper and hand them the blue pen.
[00:02:01] Caller 1: Okay.
[00:02:02] Chad Corbett (Coach): So don't ever ask them, don't ever ask for a listing.
[00:02:06] Never you should like presumptively close them all the way through, in a series of small closes, figuring out what their objections are solve for the objection. And then just turn the paper around and hand them the pen and they sign every time.
[00:02:18] Caller 2: Oh, okay. That's cool. I didn't think about that.
[00:02:21] Bruce Hill (Coach): I want to throw in on, what Chad did before he gave you an answer.
[00:02:25] He asked you a couple of questions and ultimately when you get somebody that seems to be hesitant, you need to dig a little bit more and listen, if you don't know the questions to ask, Chad just came up with two questions really quickly. If you don't know those, you can simply insert "tell me more" into the conversation. Hey, we want to wait a little bit. Okay. Tell me a little bit more about that and then be quiet. Don't if they're quiet for a second, it's going to feel like an attorney to you. If not, just be quiet until they, they tell you their motivation for waiting and then you could even follow it up with.
[00:03:02]Okay, what would the potential benefit to that be? What's the benefit. And tell me more. Those are two really good. one's a statement. One's a command. One's a question, but you're gonna, you're gonna understand it. So a lot of their motivations, and a lot of times they're going to talk themselves out of the waiting.
[00:03:18]They're only stalling because they have a fear of buying something. They're just getting a little bit of buyer's remorse and they're throwing a stall out there just out of habit and they can still overcome it themselves. If you ask the right questions.
[00:03:30] Chad Corbett (Coach): And that's, I could do a better job explaining myself too.
[00:03:33] Thanks, Bruce. What I'm doing in the background is I'm asking myself, what's the emotion driving the behavior? And the behavior is apprehension, right? that's what we're there they're doing. But why is that? If I haven't heard a legitimate reason and they say, Hey, you're the guy for us. We really like what we've heard.
[00:03:51]Let me think about it. You've given me a lot to think about. Then my mind immediately, I'm going okay. What is the fear? It's almost 99% of the time. It's a fear whether it's rational or not, no matter how small it is, it's creating a block in their behavior. So I'm like, what is the figure that is driving this behavior?
[00:04:09] And how can I remove that fear? And a lot of times people just, they know what they need to do, but you've gotten them out of their comfort zone and all they want to do their amygdala is like retreat. Get back into your comfort zone. Even when it's not in their best interest and you'll get a feel for this.
[00:04:23]and that's why I apply pressure the way I do. If somebody, if this were a grieving widow and I felt like she just wasn't ready, my approach is 100% different. But when someone says, Chad, we love what you're doing. We're ready to do business with you. Why don't we just wait a week to see if we can sell it for less?
[00:04:40] That's an that's irrational. So their fear is not representing their best interest in my opinion, as their potential fiduciary. So that's when I grabbed him by the hand and pulled her ass out of the probate quicksand before they ended up costing themselves a bunch of money. And I can feel good about that.
[00:04:55]But that's, what's going on behind the scenes with me, as I'm trying to identify the emotion, driving the behavior. If there's not a good explainable reason, then I'll put pressure on and make them and have them do what's in their best interest. Gotcha.
[00:05:07] Caller 1: That's exactly what happened. She's like, I'm looking for an investor, but at the same time, I want to make more money.
[00:05:12]So just I want to wait till Friday, since I'm meeting with an investor then, and see what they propose to me.
[00:05:16]Chad Corbett (Coach): So you can use Bruce's tactic there and be like, Oh, that's interesting. So tell me why you're you think selling was investors in your best interest? And then you're going to get all of her beliefs.
[00:05:26]So you'll get the belief that selling with a realtor is hard. You'll get the belief that cleaning out a house is more than she can handle. You'll get the belief that it's going to take 60 days. You'll get the belief that she's going to pay more in commissions and end up making less money. And what does that become?
[00:05:40]That becomes your language roadmap for the rest of the conversation. You just literally she'll set up the flags and you just go pluck them out and then hand her the blue pin, but asking, say, listen, that's a lot of folks say that I'm really interested to understand why, because we have a fiduciary responsibility and we, we are.
[00:05:56] Bound by a code of ethics and investors aren't. So as far as where I said, it looks like I'm offering you protection, consumer protection to get you the most amount of equity out of the asset. And it looks to me like you're not interested in that helped me understand. And I'm bringing that fear to the surface right now.
[00:06:13]I'm an investor too. but if I believe that it's in their best interest to sell on the retail market or as is, I'm going to use that language. If I think that it really, they really do need an investor offer, then I'm going to be the one with the blue pen. I'll sign the offer and then slide it over to them.
[00:06:28]Caller 1: Okay.
Listing Flat-Rate with MLS Opt-Out for Cash Offers
[00:06:29] Bruce Hill (Coach): Another thing that you could do is act a little bit confused. It takes a level of confidence, and I don't want to say practice this, but
[00:06:35] Chad Corbett (Coach): -you're really good at it, Bruce.
[00:06:37] Bruce Hill (Coach): You do want to practice and you're acting confused. I'm great at it. You do want to practice acting confused and say, okay and an investor might be a solution for you why? Why don't I just bring you some investors and. It needs to have, an air of authenticity to it. because if they feel like it's just a trap, it'll play against you. But if you just get a puzzle book on your face and go, huh, okay, I get it.
[00:07:03]why don't I just bring you a handful of investors now you better have the investors if you're going to do that.T hat will normally get them to go well. Yeah. why not? Okay. And then you can turn it around and get the listing side.
[00:07:15] Caller 1: Okay. Cool.
[00:07:16] Chad Corbett (Coach): That's I used to use that tactic too. I hadn't, NAR has muddied the water for us there, a lot of sellers were, they were hell bent to go sell to an investor.
[00:07:25] And if it's a house that I didn't want, I would list it on a flat rate. So I would get, higher than six or 8%, if it was a cheap house, an inexpensive house. I would list it flat rate with an MLS opt-out and then I would just send it out to my list of 138 cash buyers that had real relationships with them. We would have a frenzy in five minutes and they were always shocked and I'm like, so you create price competition among qualified investors who have been pre-vetted by you. You're technically representing the seller, but you get the double ended and you just, the first page of your offer for the investor is an unrepresented party had done them.
[00:08:00]So I actually did that quite often with if I didn't want the house myself, it's essentially, it's the net result of wholesaling, but it's not considered in that listing. And it's perfectly legal, but NAR has tried to put an end to any MLS opt-outs okay.
Responding to Awkward/Rude Objections
Caller 1: Cool. And then, what are you doing in a situation when you do a USP and the response I receive was like, Oh, probate, that's going. And I just got stuck there. Obviously I'm, I'm just starting out, but I'm trying to get used to it, and I have a little bit of a fear, typically, that's an objection that I never heard before say, thank you.
[00:08:33] Chad Corbett (Coach): Good probate. Is, did you say probate is done
[00:08:35] Caller 1: The objection I received was like, probate is going. after I did my USP. Yeah. Which is odd. I didn't understand what he meant by that.
[00:08:43] Chad Corbett (Coach): What can serve you? Like he gave you an awkward response. So answer him with an awkward response. So probate is going... well or not?
[00:08:51]And then it'd be absolutely silence. If they're being like that with you, just turn it back around probate's going, just give them an awkward pause and say, well or not? And then don't speak because you want to use that silence as your leverage, and it's extremely uncomfortable for people.
[00:09:07] So they've established a pattern that they found the run people off quickly, and just a few words, and you can short circuit that and get to get, to have a real conversation with the person you can use. You can use humor, you can use just and that situation, that's an awkward response.
[00:09:23] So that's what I responded with. But get them out of that loop and then have a good question on deck. Is it going well or not? and then they'll respond and say, the reason I ask is because we actually make a phone call to every single family, every single month and Roanoke County. And I would say at least 85% of the people that say it's going well, ended up calling us back when they're in the, when there's, the stress is up to their ears.
[00:09:45]And then we asked to go do six months of work and a month. is it going that well for you?
[00:09:50]Jim Sullivan (Host/Coach): Yeah, I thought of another one you could say, where did it go? If you want to use a little bit of humor, are you able to find it?
[00:09:55]Hey please come back next week and share, when you get that listing you'll be up for winner of the week.
[00:10:00] Caller 1: So I'm going to meet with them.
[00:10:01] Chad Corbett (Coach): Did you get that listing that you're signing today? Was it inbound or outbound?
[00:10:05] Caller 1: Outbound
[00:10:06] Chad Corbett (Coach): On the phone? Like you own all your followups?
[00:10:08] Caller 1: Yup.
[00:10:09]Chad Corbett (Coach): The first time you talked to them or.
[00:10:10] Caller 1: Yeah. First time I talked to her and met with her at the property, give them my listing presentation. And they said give me until Friday.
[00:10:15] And it's just happened the beginning of this week. And then before you know it, she tells me, good job, thank you for their hard work. you worked so hard for me, I'm ready to assign and just bring them, listen to agreement when we meet. And how long have you been at? Great. Awesome. Repeat that again.
[00:10:27]How long have you been doing this? Honestly since September, but not hardcore to like maybe a couple of weeks ago.
[00:10:32] Chad Corbett (Coach): So you started trying two weeks ago and you already got your first listing on the first phone call.
[00:10:37]Applaud from the crowd!
[00:10:38] Jim Sullivan (Host/Coach): Good job, buddy. We got a very full queue this week, but thank you for leading it off. Appreciate it. Next up is phone number and again one eight five, five. You're up next.
How to Close Prospecting Calls With An Appointment Set
[00:10:47] Danny: Hey guys.
[00:10:48] Jim Sullivan (Host/Coach): Hey, Danny. What's up.
[00:10:49] Danny: So I just want to do a quick follow-up. I know Chad wasn't in the call last week and then you guys gave me some really good insights.
[00:10:54] I want to get some insights from Chad as well. I'm going to, it's the same question. I wrote down everything as well. Chad, if you can give me some insights as well. My question was, what advice would you give me for making sure I definitely get that appointment set up on the call. I'm running into, I know it's a me thing, but I'm calling them.
[00:11:11] Everything's going well, competition going. Great. tell me about the house. Everything I need to know, but making sure I get that appointment set, or at least a follow-up call.
[00:11:19] Chad Corbett (Coach): Tell me where you're losing it. What's the objection where you're not getting the appointment?
[00:11:23]Danny: I believe it's just more so on my side. I'm calling everything going well, I'm getting on.
[00:11:29] Chad Corbett (Coach): All right. let me ask, I'll ask a better question. how are you going in for the appointment? Give me your, tell me what that language is.
[00:11:36] Oh man, I don't. And that's another thing I don't even know if, at the time, like I really was trying to go in for, I was more so tunnel vision on can I get the right questions to ask to know about the property or where everything else I didn't get to know about?
[00:11:51]And by the time, like the end of the conversation came around and it was good. I didn't want to like force upon Hey, I'll call you back at this time or Hey, can I, can we go see the house?
[00:12:01] Danny: Okay. I think that's more,
[00:12:02] Chad Corbett (Coach): So this is something I struggled with early on. I used to ask myself the same question.
[00:12:07]The reason, have you been through mastery?
[00:12:10] Danny: Yeah. Yeah.
[00:12:10] Chad Corbett (Coach): Okay. So you remember the order in mastery, so it's, your USP and then you identify, is there a real estate? Is there an intent to sell? Who are the decision makers? What is the relationship dynamic? And then go for the appointment.
[00:12:23] Before we talk about real estate, we go for the appointment. We identify real estate and then we quickly step away from it. So they don't feel like that's the only purpose of our call. And then we focus on building a rapport by talking more about people and situation, and we set the appointment. It's usually tentative.
[00:12:39]And then you get, you give them a hundred percent of permission to cancel and they never do, because you will reinforce that with so much value after you go, Oh, Hey, real quick, before you go, can I ask you a few questions about the property so I can do my homework and then it becomes a more casual, light, easy conversation.
[00:12:55]And then, and you gather all the other information. So what you're doing is you're accomplishing, I try to accomplish that 10% and then pick after I have the appointment and get the other 90% of the information you're on the flip side of that. And that's how I used to do it. And that's what I tell you in mastery, like everything on that probate seller interview sheet, and during day three, like when we go through the conversation, like literally line by line, I've moved each of these pieces around and put them in the right progressive order where I had the highest close ratio.
[00:13:23]So I would suggest that you focus more on people in situation and get the appointment, even if it's a tentative appointment and then say oh real quick. Can I ask you a few questions about the property? And this is where you get to really show off your value and learn a lot about the property and the finances and all those things.
[00:13:39]So I think that's going to help you. The other thing that will help you is remind yourself every time you pick up the phone, why are you picking up the phone? what's your personal outcome? I'm asking you, what is your personal outcome every time you pick up the phone?
[00:13:52]Danny: Oh, you're you're asking me.
[00:13:53] Okay. for me, it's, reach out to them. If they are in need of any help, and if I can,
[00:13:58] Chad Corbett (Coach): How much money do you make reaching out to people?
[00:14:00] Danny: None.
[00:14:01] So let's get to, what is the prime objective of the call? It's to get face-to-face with this person for any reason, because once they meet you face to face, you close, right?
[00:14:10]Chad Corbett (Coach): How many have left 10 face to face appointments you have? How many did you fail at?
[00:14:14]Danny: For me, I haven't made a face-to-face myself yet. I've gone in with, I work with in this, in this, gotcha. Yeah.
[00:14:23] Chad Corbett (Coach): So you're teeing Shaiah up with appointments.
[00:14:25]So of the last 10, how many failed like that? You got the face-to-face appointment.
[00:14:29] Danny: I've gone well, personally, I wouldn't say I've gone to 10 so far myself, but I've gone to four. And from my knowledge and everything, I was having none of them, I told her we always make a up with if we can, view the house, but we've gone and met them.
[00:14:43]So I, man, I wouldn't even say any of them.
[00:14:46] Chad Corbett (Coach): Fair enough. You get my point. What I want you to like during this entire conversation, even after you've gotten the appointment, why do these people need to see me in person? Because when you get there in person, your chance of getting in deeper rapport and closing goes up exponentially.
[00:15:01]Every time you make a prospecting call, deep breath. How do I get face to face? Sometimes it's to put a no trespassing sign on the window. Sometimes it's to get a dog and take it to the SPCA. So it's cared for sometimes it's, to change out the locks on the house to winterize the house, whatever, however, small that reason might be.
[00:15:20]If you can get a decision maker to meet with you, it changes the whole dynamic of this and you no longer have competition. So I want you to focus on that as the primary objective of your next prospecting call being, how do I get face to face then you don't have to be thinking about 10 different ways to set an appointment because you're going to come up with it.
[00:15:37] And it's going to be different every time. You'll know how to close the appointment, because you'll know that the clear reason and the clear outcome of the meeting you in person, and that will drive your language. So you don't need a script. You just need a purpose and your purpose as a face to face appointment this time, actually.
[00:15:53]Danny: All right. Yeah. Thank you me. I was writing all that down as well, and that was good advice. Thank you.
How To Find Quality Contractor Partners
[00:15:58]Johnathan: Hello everybody. This is Johnathan from Dallas, Texas. How's everyone doing today?
[00:16:01] Chad Corbett (Coach): Hey Johnny, Johnathan. Welcome.
[00:16:03] Johnathan: Thank you. Thank you. Thank you. Okay, so I'm going to go right into the questions. Okay. So first when I'm talking about quality contractors, so in mastery, Chad, one of the things, one of the ways you said to meet a quality contractor was, you would be out either at Lowe's or home Depot in the morning.
[00:16:20] Coffee donuts or something of that nature and meeting the people, it looks for the big trucks, people who actually are making money and doing well real business. So in this environment where we are with COVID, how would you change that tactic? in order to meet some quality, contractors, or would you still do the same thing?
[00:16:36]Chad Corbett (Coach): I did the same thing. they have to get out and work and they're, they're doing what they do. So there's a lumber shortage now. So like when I go to buy lumber, I have to go to three or four stores. So you're actually more likely to meet them now than ever, because now they're going to three and four different Home Depots.
[00:16:52] So if you spend three hours under the port, the Portico on the pro side of the home Depot, you'll meet more contractors now than you would have a six months ago. they're having to run all over town for materials.
[00:17:02]Johnathan: Gotcha. Good deal. All right.
[00:17:04]Chad Corbett (Coach): Another thing you can do something. And I don't know if I mentioned this in mastery, go to custom cabinet shops, custom kitchen and bath stores. Those are people who are selling to a higher end clientele and, get to know, just let them know, say, Hey, listen, I'm looking for a guy that's, that has some availability right now. I've got jobs lined up.
[00:17:22] Can you please give him my card and just stop into those places were more successful and more organized contracto, the people they have relationships with. So if you've got lumber wholesalers, if you have kitchen and bath stores, granite places, and just say, who do , who do you do a lot of business with that you trust that has some time in their schedule? Can you please make sure they get one of my cards? And it gives you some scale there. Cause you can have people out recruiting for you.
Branding Beyond The Real Estate Logo
[00:17:49] Johnathan: Got you. And if I could differentiate those people from people who are just wanting to do punch work, real quick, all my letters. Okay. I know this is a plus or minus. I need your everyone's opinion on this one. I have on the top of my letters, another hand, I have Dallas Life Transitions, which is, which is my LLC. And then in the middle, I have my real estate logo, which is actually my logo, which is my main, the little fancy way that has real estate under there. Is having my real estate logo, a plus or minus on there?
[00:18:16]I have Dallas life transition. One side. This is in my logo is in the middle.
[00:18:20] Chad Corbett (Coach): You need to test it and find out, all right, so I'll take it off. The only real way to know is to remove it. My inclination is to tell you to take off your real estate logo because you wouldn't be, you wouldn't be building and supporting a brand called Dallas Life Transitions.
[00:18:34] If all you cared about was real estate listings, am I right?
[00:18:37] Johnathan: Gotcha.
[00:18:38] Chad Corbett (Coach): So you're conveying two different things. You're saying here's a broad scope of service that I do to provide service value to my community. But Hey, look, I'm a realtor got me real estate. So take that off. And in the beginning of the conversation, think of it as a funnel, right?
[00:18:53]So in the beginning you have a broad scope of service. And as you learn about the people in this situation, you start to tighten the focus of the conversation at the bottom of the funnel is realist. Because that's what you can directly monetize, but there may be 12 things that are bigger problems in their head and their perception is their reality.
[00:19:11]So if the dog that needs to be taken to the SPCA, because nobody, people are getting tired of going and feeding it every day. If that's the biggest problem in their mind, You need to have a solution for it. So if that was life transitions as a brand that can capture all of that, you, your name as a real estate agent or broker doesn't.
[00:19:29]So they may perceive that as well know, I'll call this guy whenever it's time to sell the house and someone else will get it before then. So that's why I like. That's the, that a brand is you're painting the picture of a vertically integrated solution, like a social enterprise in the community and to dual brand something is just diluting, both brands.
[00:19:48]Johnathan: Gotcha. All right. Good deal.
[00:19:49] Bruce Hill (Coach): One more real quick. real quick before you throw that, Chad almost convinced me cause I was going to take the opposite approach. And and now, now I'm wishy watchy on the opposite approach, but I've
[00:20:00] Chad Corbett (Coach): are you acting confused again?
[00:20:02] Bruce Hill (Coach): I'm actually confused. Yep.
[00:20:04] So I've run two separate companies with, generic brands, not Dallas life transitions, but just generic company names. And both times in my business, both times that I went away for my personal name and two, a company name, I lost conversion. What I realized is most of the time people do business with a person and they're less likely to do business with a company.
[00:20:29] If that company isn't brand. And I, so they do business with you as a person.
[00:20:34] Chad Corbett (Coach): One thing I would say to that is it's an obvious personal letter with his name at the bottom. So he, they're not getting a letter from DLT, saying respectfully DLT, corporate headquarters.
[00:20:45]They're getting it from DL, from the person. I agree with what Bruce is saying, but considering how personal our letters already are, I think that you get around that.
Staying On Top of Your Prospecting Schedule
[00:20:54] Johnathan: Okay. One more time. I have one more, one more real quick. I'll all right. It's about follow-up is about followup and everything.
[00:21:00] It's about system. I'm finding it. A lot of my leads are falling through to falling through the cracks because either I'm not calling them back or what day to call them back. And, I don't know if I, should I try paper. I put writing each lead that I needed to call back on the paper, put it in the system, like it folder system, but it becomes junkie.
[00:21:17]What have you guys done in the past in order to make sure that the call that you're going to make the follow-up calls, that you're going to make pop right up so you can, so it's not such a headache to search through and find, okay, I need to call this person back. Or is it today or tomorrow?
[00:21:32] Does that kind of make sense? So this is a system question.
[00:21:35] Chad Corbett (Coach): You just need to start using it. So when you're making a call, are you prospecting from the, my probate leads, the CRM we give you? Yep. Yes. So you have four tabs at the bottom. Tab number three is the option status tab. So that's where you rate the lead.
[00:21:49]You can opt them out of phone calls, emails, whatever follow-up. Excuse me, it tracks the result of your phone call and on, I think on the second tab, you actually schedule your follow-up date. And then on the list view, you sort by followup date, the other thing you can do to more, to customize it and make it more personal to you is on the first tab you can use the shortcode function.
[00:22:08]So if you can say, let's say you're sending a premium mail piece, so you could say. PMP follow-up and that would mean for you, that would mean premium mailpiece follow-up. That would be a shortcode. And now you can sort your list or filter your list by that short code. you know what our goals are, which ones need to get the PMP or which ones has already happened.
[00:22:28]Everything you need to stay organized and save money already built in. It's really simple by design, but every, I think everything you're looking for is there. And we talked about this in pretty great detail. I think it was two mastermind calls ago. Katt can link it in the show notes. but, I think it was two calls ago.
[00:22:45]We actually had a pretty extensive conversation about just all the ways you can use that to get a more efficient workflow.
[00:22:52] Johnathan: Gotcha. So it's user error. All right. If Katt links that I'll take a look at it, I'll still search it. So I'm just looking to maybe, be able to maximize that to the most, be very efficient with it so we can, have success if you guys for, thank you for taking my call.
[00:23:05]Jim Sullivan (Host/Coach): Thank you!
[00:23:06] Johnathan: All right.
[00:23:06] Jim Sullivan (Host/Coach): All right. Next up is phone number ending in three five seven, five. You're up next.
Investor Tip: How to Pitch Your Agent-Partner to Prospects.
[00:23:11] Sam: Yes. Hello?
[00:23:12] Jim Sullivan (Host/Coach): Yes, sir. You're on.
[00:23:13] Sam: My name is Sam. I'm calling North Georgia. A Person out in Cali and I'm here in Georgia and she's the PR is out in California and her sister is here locally in Georgia, and her sister has a realtor, but it doesn't seem like the sister in California is dead set on the realtor. So I was wondering, what can I, how can I sway her to use my realtor here?
[00:23:33]Cause she said it's okay that my realtor gives her a call,
[00:23:36]Chad Corbett (Coach): Does your realtor have probate experience or do they offer the, all the services we talk about on these calls?
[00:23:41] Sam: No. He does not.
[00:23:42] Chad Corbett (Coach): Yeah, it's pretty tough. you're saying, this Apple versus that Apple. Typically my answer would be the, the service we provide is such a differentiator.
[00:23:51] It's very easy to outsell almost any realtor, but if you feel like that, what's your realtor's X factor. why do you call them your realtor?
[00:23:59] Sam: Actually he, cause he's just been here for a while. I haven't gotten many, different, realtors to choose from, Cause it's hard to find somebody that's going to work with you.
[00:24:08]Chad Corbett (Coach): Yeah. If you don't even know what his X factor is or her X factor is it's going to be hard to convince somebody else. typically the direction I go with that as Oh, that's incredible. I'm so glad you have options. let me ask you this. Have you already signed an agreement with that person?
[00:24:22]Okay, great. And when you're, when are you guys meeting? And if there's no meeting scheduled, that means there's probably not that you don't have much competition. It's pretty easy to overcome and then I'll go toward, alright, listen, the reason we'd like to come and try you've trust me. I understand my risk.
[00:24:35] I could be wasting my time. I certainly won't waste yours. I will leave everything with you. but I at least like I have an opportunity to meet with you and see your whole situation. Cause there's a lot of things families don't expect from us. So getting homes cleaned out, getting them secure, getting proper insurances in place.
[00:24:51] Many families don't even know that they could lose everything. so there's a checklist we go through with every family and that's why I like to meet face to face. It's just. it, we can just accomplish a lot more and a lot less time. yeah. Would, could you think you can meet with that other agent before Friday?
[00:25:06]Okay, great. Then help us. How's Friday at one, try to put them in the door in front of me, but I have a huge differentiation point before I do that. So I try to show them the broad scope of service that we can offer. everything that comes along with brokerage, put my competition through the door in front of me, and then they go, that's going to leave so much curiosity that they're going to, they're not, they're going to be very hesitant to sign any, anything with anyone until they meet with me and see if I'm full of it.
[00:25:32] Or if I can actually do what I've said. And then that's back to the very first caller. Like you, you just become a good listener. And and them the blue pen. But if you don't have much faith in your, and your brokerage partner, I would say step one for you is finding a brokerage partner that you're proud to present like that on the phone so you can differentiate them.
[00:25:51]Cause it sounds to me like you don't really believe in their service.
[00:25:54] Sam: Okay. And, there was, there was, one of those. Masterminds that came when you gave options, and then you crossed out certain ones and you explained to them which one, that they would go with. where could I find that one?
[00:26:05]Chad Corbett (Coach): it's we. And probate mastery. We unpack it all in session two. I show you everything and literally dozens and dozens of options. And that's where the long form where I show you how I, shaped the conversation and use the net sheet, but right there in our, and if you look up a seller net sheet as a keyword, if you go to alltheleads.com.
[00:26:25] And the top, You'll see a global search bar put in seller net sheet. And that should bring up show notes from previous role-plays and masterminds, where we've talked about how we use it.
[00:26:34] Sam: Okay.
[00:26:35]Jim Sullivan (Host/Coach): All right. Thank you, sir. next up in the queue is phone number ending in six, two, four eight.
Earnest Money Deposit and Buyers Backing Out
[00:26:41] Joyce Arnston Morris: Good morning. It's Joyce Arnston Morris in Orange County, California.
[00:26:45]I have two quick questions. If I have a client who has full authority to file for full authority, and I have a buyer that signed an offer to them, and the probate isn't closed yet with the court. Can the buyer back out at any time?
[00:27:02] Chad Corbett (Coach): Who are you representing Joyce
[00:27:03] Joyce Arnston Morris: Oh, I'm representing the PR.
[00:27:05] Chad Corbett (Coach): Okay. whether the buyer can back out is dependent on the contingencies in the contract. What contingency are they trying to exercise
[00:27:12] Joyce Arnston Morris: They just don't want do it anymore,
[00:27:14] Chad Corbett (Coach): That's fine. Send them a release with a $0 earnest money deposit return.
[00:27:18]Joyce Arnston Morris: So they don't get their money back.
[00:27:20] Chad Corbett (Coach): I'm assuming that's what the contract says. So if you guys have held up your end of the deal and it's contingent upon court approval, as long as that court approval wasn't on or before a specific date, then you're within, you're performing with within what you agreed to in the contract.
[00:27:35] So if they've changed their mind, just let them know that it's very simple. You just forfeit the earnest money deposit and then you go sell it to somebody else.
Why Winter Is A Great Time To Prospect Old Leads
Joyce Arnston Morris: Got it. Okay. just one more quick question, Chad. I still don't have an open courthouse in orange County and, my regular, USP and, things that you've taught me to say, aren't really working with my old leads.
[00:27:59]It seems like I need a new. A new approach because they're so old. I haven't had a lead since April.
[00:28:06] Chad Corbett (Coach): Okay. Where did the conversation hanging up? what's the choke point?
[00:28:09] Joyce Arnston Morris: It just seems like I get all the standard objections that a lot mostly. we're just stuck with COVID and we're not moving forward until we get.
[00:28:19]Chad Corbett (Coach): Okay. my first response would be, yeah, trust me. I understand. we've had to, be patient and a lot of families are being patient right now, even when it's not the best thing for the family. Let me ask you this. Joyce, when is your next hearing date? Are you, do you know that. And what I'm looking for is how engaged are they really?
[00:28:35] Or have they just checked out and the attorney sitting on his hands because there's no urgency. And if they do know a hearing date, then that gives me a target, like a follow-up target. if they're just not, if I know they're going to sit on their hands until X date, then I know exactly what I need to follow up is about a week before X.
[00:28:50]So ask them, ask them some questions like that are more procedural questions. Will you help me understand where you're at in the process and, what's the net, what do you think the next, what's your understanding of the next step? and as you, as I start talking about that gives you some time to think and be listening for other chinks in the armor, like things that could be bothering them.
[00:29:09]And, for example, winter, property tax coming due next in your market, as it in December. Okay. So that's a good milestone that, applies to every single conversation. Mr. Smith, I'm sure you're aware that, property taxes, aren't cheap and orange County and they're due on December 5th.
[00:29:24] So if we could get this in someone else's name and your family could save $15,000, do you think that would be in your best interest? We can't do that because -- actually we hope a lot of our clients get full authority from the court, so they actually can sell on the family's timeline, not the state's timeline.
[00:29:40]Is that something you'd be interested in? If we could show you how to do it, to save you a whole lot of time and a whole lot of money. Great. How's Friday at three. I can meet you at the house. And so look for specifics like that, like use, use specific things like their next court date, the next tax event, the election, if you want.
[00:29:57] Like the, the presidential inauguration and whatever your belief is about where your market is headed. You can use that as urgency, but if they've gotten in this pattern of procrastination and the attorneys validating that, because he's also in that, if you watched the interview with John Fraker, and it takes him an average of.
[00:30:15]Nine 10 months to close a probate case, where the average in the state is 18 months. And it doesn't just because they have an attorney just because they trust that attorney doesn't mean they're getting the best service or the, or are having the most efficient process. So poke around and see if there's anything you can do to expedite the process and get them ready, engaged, because it will save them money and then stress. So that's what I would try is
[00:30:41]Joyce Arnston Morris: That's good. Thank you. You're welcome. I will give it a try right now. As soon as the crossover thanks bye bye
[00:30:47] Jim Sullivan (Host/Coach): All right. we only have two more in the queue. We had a few people drop out. If anybody wants to jump in and start at six and hit one in the meantime, next up is phone number ending in five, four, six, four.
50 Cents On The Dollar With Probate Properties
Eddie: Hey, how's it going? It's Eddie here in Kansas city.
[00:31:01] Jim Sullivan (Host/Coach): Hey, Eddie.
[00:31:02] Bruce Hill (Coach): What's up, man.
[00:31:03] Eddie: Bruce. I told you I wasn't get on the call like three weeks ago. And, I've just been two swamped. We had the baby last week, And we weren't able to get on the phone call. but, I have some wins from a couple of weeks ago when I told Bruce, but, I got two contracts signed for purchase, properties I'm gonna purchase. I have. I got one of them assigned already. And we're closing sometime next week, dealer property I'm purchasing on the 18th.
[00:31:28]Then I wholesaled the property that closed a week ago. Monday. And then I purchased property that will we're going to fix up and sell. Hopefully today I was just talking with the title company while we were, while I was listening to this. And she's saying, hopefully we'll close it today. a lot of things coming through that are for the good, Bruce, that property that I was hoping to get under contract.
[00:31:52] I did not get the contract, but the guy gave me the key to the house. So he was like, here's the key? So I'm still like, can we sign a purchase agreement, but he was just like, here's the key. So I don't have to come over here and show you inside anymore. So now we'll
[00:32:06] Chad Corbett (Coach): ....move in and claim adverse possession!
[00:32:09]Eddie: Yeah, I can. Or just, I'll just, start renting it out and do that.
[00:32:13] Chad Corbett (Coach): Yeah, there. Yeah. what do you think his hang up is like he wants to sell it?
[00:32:17] Eddie: Yeah, his brother committed suicide there.
[00:32:19] Chad Corbett (Coach): So what have you, if you just send them, I send them a contract, just send it to him and see if he signs it and sends it back.
[00:32:24]So I've done this with letters of intent in case they sign it. It's a non-binding agreement. if you've already been through the house, you know your price, right?
[00:32:33] Eddie: Yeah.
[00:32:33] Chad Corbett (Coach): Yeah. So what I've done in the past is I will actually sign the purchase agreement, but over the price field, I will put a post-it note that says, call me, let's fill in the blank on the phone, and then I'll send it in a certified envelope, just so I know it gets there and I know it gets attention.
[00:32:50]And when they open it up, it says real estate purchase and sale agreement and they remove the sticky and see the price field blank. Your damn phone rings immediately. And it's a way to break people out of that. And, he obviously is emotionally checked out about the house. He's here's the key, screw it.
[00:33:05]Like he needs to sell that house, but he needs a breakthrough and you need to make it real. if you ever negotiated on some like personal property, if you show up with cash and actually show it to the person, you can buy shit at 30 cents on the dollar. And you're doing as how we do it in real estate, right?
[00:33:22]Show him the reality of the situation by giving him a purchase agreement that he's not expecting. And I'm actually, I had it backfire on me once. Cause I did it with people who I'd never spoken to. I only just so everybody understands, this is only a tactic I use with people I have rapport with. If you do it as a cold mailer, Man, it pisses a lot of people off asking me how I know.
[00:33:42]but it, I have used it in this way where, when people just can't get out of their own way and make a decision, it can create a breakthrough. it's, what's it going to cost you 10, 15 cents to try, or whatever the certified letter costs plus the printing, but that's something you could try.
[00:33:57]Eddie: Okay. I like that.
[00:33:58] Chad Corbett (Coach): So you've gotten four deals in the last month. Is that the timeline you're talking about?
[00:34:02] Eddie: Yeah, the two that I've closed off, like I've literally been working on these two for two years. Like two of them for two years, it's the same seller, but I just kinda kept nudging and kept nudging.
[00:34:14] And, then we found out that it was a dirty title. So then I renegotiated my price paid for quiet title actions to be done, and then had to wait for those to go through and then COVID stopped everything. So then September is when the quiet title came through on two of them. And then the, so those are our two of them.
[00:34:34] They. Third. One is a guy who really didn't like my price at first and said he was going to go and he was going to clean out the whole house and then call me to come back. And so he called me and he was like, yeah, come back. And literally hadn't done anything to the property. We were just, I gave him a little bit higher than what he said he will be originally talking about.
[00:34:54] And he was like, okay, this sounds good. And my buyer, he does a lot in that area. So I signed the assignment contract the same day that I got the contract on that property. And then the last one is actually the first deal I'm closing. Since I bought AllTheLeads. It's the first deal that's come through for all the leads.
[00:35:14]Since I started buying them in, I think August, September, something like that, but, and it worked from a phone call. I just called the guy once. He was like, yeah, meet me there today. And he's the same guy that said he got higher offers, but when it was me, because I was more professional,
[00:35:28] Chad Corbett (Coach): That means you're doing something, you're doing it. All right. That's awesome. So what would you say is the average percent of market value? You're getting these, if you, if it's a blended across all the deals, you've gotten in probate, how many cents on the dollar do you think you're averaging?
[00:35:42]Eddie: Probably around 50.
[00:35:43] Chad Corbett (Coach): That's amazing now. And these people feel. They feel served by you, even though you're paying them 50 cents on the dollar. And that's absolute proof that you're providing real value in the community. And this is a realtor heavy call and it's a realtor heavy conversation most of the time.
[00:35:58] And you just heard me compete against you as an investor, but there is a time and place for an offer at 50 cents on the dollar. And like David Pannell was one of our. top producers, he's averaging 55 cents on a dollar 65% of his deals are wholesale are versus listings. And there is a massive need in the community for this, for people who just are done.
[00:36:20] And it's really common for people to say, Oh, we're going to clean it out. We're going to keep it. We're going to run up to cousin, Jerry. And a month later after a blow up argument, everything changes. So you're doing a lot of things right. Your approach is obviously right. Your service is obviously top notch.
[00:36:35] Your follow-up is working for you. Like you're doing a lot of things. And it shows, you're getting a consistent result, so good on you, man. Thanks for sharing all that.
Creative Financing: Multiple Heirs and Distressed Property
Eddie: I appreciate it. I have a question. On, this is one of the, what I should, how I should approach this. This is a lead that I talked to the ladies, the PR, she said she there's eight siblings, which typically when there's eight people, I don't really bother.
[00:36:57]Chad Corbett (Coach): because you need to change your mindset on that seriously. Yeah.
[00:37:01] Jim Sullivan (Host/Coach): Yeah. Those are the best deals because the more heirs, the less interested. Yeah, exactly. A discount the price doesn't affect any of them too drastically the way it would with one. So yeah, I've always found those are the best.
[00:37:14] Eddie: Okay, on this particular one's six, people want to sell there are six siblings and then two step siblings and the step sibling, one of them, he has possession of the house.
[00:37:26]And he has a for sale sign in the I've talked to him and he's yeah, I want to sell it for this much money. how do I, talk to him to be like, has this gone through probate? Do you have the letters of testamentary? What other questions should I be asking him to get him to realize he can't - he could quit claim deed it to somebody, but legally he can't sell it, from under his siblings like he's trying to,
[00:37:46] Chad Corbett (Coach): Let's find out if that's right. Is there a, will.
[00:37:49] Eddie: No.
[00:37:49] Chad Corbett (Coach): Okay. So state succession law says that all siblings get an equal share, right? If it was a legal marriage, even though another stepchildrenthey have an eighth of it. So that means you need eight signatures or releases. So if he gets a buyer today, he still has to get all the other siblings to sign. t sounds like you're not sure if it said if they've ever petitioned for probate.
[00:38:09] Am I right?
[00:38:10] Eddie: Yes. The petition for probate's been filed. Oh,
[00:38:12] Chad Corbett (Coach): Who is the who's the administrator?
[00:38:15] Eddie: I think it's his sister, Wanda. Okay. The person that I called originally, and she's like, my brother, isn't letting us into the house. He's not letting us do anything.
[00:38:23] Chad Corbett (Coach): So she's, but she is the personal representative or the administrator for the estate.
[00:38:27]Have you spoken to the brother?
[00:38:29] Eddie: Yes.
[00:38:29] Chad Corbett (Coach): Have you been in the house?
[00:38:30]Eddie: I haven't. We tried to set it up a couple of times and just hasn't quite worked out, but, I keep following up with them to set up a time to try and go over there and take a look at it.
[00:38:39]Chad Corbett (Coach): Okay. Do you think his price is fair or are we off base?
[00:38:43]Eddie: Oh, abs it's, last time I talked to him about going to look, he was like, it is in pretty rough shape. He says he wants 34, it based on the area. And if it's in rough shape, can't do 30. So he's, it will take some talking to get him to come down.
[00:38:58] Chad Corbett (Coach): So do you do creative financing at all? I haven't.
[00:39:01] Eddie: I just picked up the books that you talked about real estate.
[00:39:04] Chad Corbett (Coach): Let me ask you this. If you could have that house for a hundred dollars a month, would you take it?
[00:39:09] Eddie: Yeah.
[00:39:09] Chad Corbett (Coach): Then go buy it with owner financing and they all get what they want.
[00:39:12] Eddie: Okay. It's a good idea.
[00:39:14] Chad Corbett (Coach): Show them how to roll it into a land trust, set up autodraft payments, but a third-party service are in place and you take away all their objections and they all end up making more money over time.
[00:39:23] If they want their money up front, then use that as an anchor and say, okay, listen, I showed you how I can give you a price. If you like, if you want to talk about my price and then it's, we're going to have to change the terms of this. This is my price. This is your price. I'm giving you two ways to sell this house.
[00:39:41] Which one do you think works best for you? So creative financing, even if you just use it as an anchor for the conversation, it can be a great leverage point that gets him past this because he hasn't had that realization. Like you, you've got to bring him to reality. And using giving them a real option, okay, perfect.
[00:39:58]I'll pay you, $30,000 we'll close next week. Can you be moved out by then? And you're getting back on his heels and it's no, listen, like I gave you what you wanted. So here's the blue pen and then you're having a real conversation so that if, as long as you're okay, holding that as a rental or wholesaling, it.
[00:40:15]I would offer him owner finance and call him to the carpet.
[00:40:17] Eddie: Okay.
[00:40:18] Jim Sullivan (Host/Coach): And I was going to quantify my comment about multiple heirs. That is if they all want to sell, if they don't, they could be a challenge for sure.
[00:40:25] Go ahead. You have one more question, find it.
[00:40:27]Eddie: I have a statement actually. Chad keeps saying, tell us about Chris Voss, his book never split the difference on one of the contracts. I'd given him a price 20,000, he came back. He was like, can you do 22 five? And I did, when I used to do sales training, I called this technique, the sizzling bacon, where you suck air through your teeth, go.
[00:40:48]And then I said, how am I supposed to do that? Just quiet.
[00:40:52]Yeah. And I was just quiet. It was super uncomfortable. It was so awkward, but he was like, all right, sounds good. So beautiful. Anybody who, hasn't picked up that book it's worth listening to or reading.
[00:41:05] Jim Sullivan (Host/Coach): That is awesome. Thank you, sir. We have a full, we got a full queue again. We had a bunch of people just jump in and we're probably not going to get to y'all if we don't get to you, right after the call, reach out.
[00:41:15] We'll get back to you. One-on-one I think we, Bruce, and Chad, are you, do you have a hard cut off at two or can you go a little bit over, two 15? I'm good. I got about 500 staff after. phone number ending in three eight, six one.
[00:41:27] You're up next.
What Paperwork Should You Bring To A Listing Appointment?
[00:41:27] Wayne: Hey everybody. This is Wayne in the Houston, Texas area. My question relates to paperwork. Oftentimes I go out and after I schedule an appointment and I'm out at the property meeting with the PR, I think I know part of the answer that you might give me here, Chad, and that is, I think I'm probably not as prepared as I should be with paperwork in hand.
[00:41:49] I often just go to work on just establishing the relationship, looking at the property and then coming back later with a, solution, whether it be I'm a realtor. So whether it be me listing it or. connecting one of my investor partners, on the situation. So currently I've got a PR, representing her sister's estate and there's three houses.
[00:42:12]and again, I met him, I met the cyst. I met the PR out there. We toured. To all three properties, two of them were rented to tenants and the third one had a, her sister's son who is living in it. So they're all, they all, they all are in somewhat of a state of disrepair. They need work. So both myself and the PR are uncertain as to what the.
[00:42:34]The, the end game or the path forward is whether it be listing it or selling it to an investor. One of the tenants is interested in buying it. So there's this, at the time of the initial appointment, I don't sign any paperwork. I don't really tie up, the opportunity and, I just kinda go along from there.
[00:42:51]And I'm working on all three properties, currently. And, I guess my question is what is there, as an, I can't, even if I had a good price and I signed a listing agreement, I guess I could put a delay on before going to MLS or, and there's certain paperwork we can do with the Texas real estate commission to.
[00:43:08]to get something signed, but not put it in the MLS yet, but I wanted to get your opinion on how I can secure something so that when this PR gets approached by maybe other investors or other family members, there's a sense of commitment and I've signed something and I'm working with Wayne and, so I have more control over it.
[00:43:27]Chad Corbett (Coach): Sure. So it starts with a commitment like right here and right now that you'll never go on another appointment without paperwork. And unfortunately, I had the same bad habit when I first came from, I came from resort development. So I was selling brand new construction. And once I got the handshake, I would turn it over to an attorney.
[00:43:45] The attorney would write the contract. So my habit was to never do contracts myself because somebody else will do it while I was out selling something else. And I brought that in the residential and I, I probably cost myself at least $200,000 before my hard-headed ass learned the lesson. But. I will never go on an appointment without contracts.
[00:44:04] Even if I have, I leave blank ones in my truck, I've got one of those folding binders that fits in the map pocket in the back of my truck seat. And it as a standard Virginia residential purchase, purchase agreement, and a listing agreement and they stay there and I've actually had the, like the, I've gotten phone calls while I was out.
[00:44:22]There's no time to do the homework. It was moving really fast. And I'm like, you know what, let me run to the truck real quick. And I've literally pulled blank paperwork out of the back of my truck seat and bought houses. So I've had enough experience to learn my lesson. What I'd prefer to do is have a more controlled environment.
[00:44:38] Like I will pull the tax card based on the initial conversation and the tax card. I'll pre-fill as much as possible on both the purchase agreement and the listing agreement. That goes in the left-hand side of the folder and I teach you this and mastery, like I. I have a technique where I opened the folder up where it's clearly displayed.
[00:44:56] So it shows my intent. It shows it to me as importantly to them, but I'm here with intent. And my intent is to serve you and get paid for the service I'm providing. So I slide that folder in front of whichever person has the seemingly as the most social authority, even if that's not the administrator or the personal representative, if somebody else has stronger authority in the family, like in the walkthrough, then that gets slid over in front of them.
[00:45:21]And I'd play a game. Like when they pull the folder out of the paper, out of the folder and start looking through the contracts, then I know I'm done. So I would suggest that you just think about it a little bit and think, my intent is always to get paperwork signed, whether that's a letter of intent, a purchase agreement or a listing agreement, one of the three usually fits.
[00:45:40]Okay. Now, as far as when you're, when it's unclear, what sh what exact tactics you'll be using, choose a strategy, whether it's listing or acquisition, choose your strategy. And if you're unclear on the tactics, go ahead and sign the agreement. You can always amend just about any agreement, right?
[00:45:57]So you can in my listing, I really like this here. Cause I use it this way a lot. We have a listing date and we have a, a listing live date or we have a listing agreement date, and then a list, a live listing date. So it gives me two date fields that I can use and easily show my MLS that I was in compliance and our roles are, it has to be uploaded within 48 hours of the live listing date.
[00:46:20]So I can do it on the November 12th. And my live listing date can be January 2nd. and there's, nothing. So I'm protecting my interest in this property until I get it ready for market. if you don't have that built into your standard forms, just use the additional CaRMS and just figure out your language, additional terms.
[00:46:38] Number one, the effective listing date is X the listing live date that it will go onto. TX XMLs is this date. And as long as I can do that, we can do that. Yeah. That's what I would recommend, but always go with prefilled paperwork if it's an option.
[00:46:53] Wayne: And I'm not an investor, I have investor partners, so I don't have the letter of intent or a purchase agreement. I only get, wouldn't be able to carry, the listing agreement. So just use that to
[00:47:05] Chad Corbett (Coach): That's not necessarily true. If you want to represent buyers as a buyer's agent, then you can pivot and you can say, listen, that's fine. It sounds like you don't really need representation. It seems like you're a very intelligent person.
[00:47:17]I also, I represent buyers as well, and I have several investors that buy in this zip code that I'm sure would be interested. So could I, can I bring you in. Can I bring can I write an offer on the property? And if they say yes, as long as you have a good book of buyer business, like for me, like I could send a few text messages and, walk around and look at the gutter system for 10 minutes.
[00:47:37] And I would pretty much know when I came back around to the front door, whether I could present an offer or not. And you can DocuSign an offer off and do it like in real time, like that's extreme, but you could also go ahead and sign the listing agreement for, even if it's just for 24 hours or seven days, I've done this a lot to sign a listing agreement with a very short listing term.
[00:47:58]And then go out, send it through your cash buyer list. All those investors, get them to give you an offer, have them sign an unrepresented party, had done them. So in that case, you can play the role of the wholesaler, but with, a fiduciary responsibility, you can double in the commission without dual agency and everybody wins.
[00:48:16] So you can use your state forms the same way a wholesaler would use a contract and an assignment. you're getting, and you can do it as a flat fee. Like I was saying that earlier one, I did this on, I took five of $5,000 commission on a $25,000 house. And I knew I could sell it in hours and it took, I don't know, it might've taken 10 hours to get that one ratified.
[00:48:36]but I made 5,000 bucks in 10 hours.
[00:48:38] Wayne I'll, I'll jump in and say it years ago. I've learned that a lot of times as a seller, when you have an interested buyer, you can write a reverse offer to that buyer, especially if the buyer's on the fence. So I started making that technique several years ago.
[00:48:55] Bruce Hill (Coach): And when I meet with a seller and they say, Hey, look, we just want X price. I go ahead and write up the offer and have the seller, the owner, sign it. And I'd say, if I get you a buyer that meets these terms, signatures on the, on this document, the new buyer, they're just going to sign it and you're going to be under contract.
[00:49:14]So if, if you think that. They're going to be good with certain terms. And you think that you have a buyer that would jump on those terms. You can have them sign the purchase agreement ahead of time as well. Okay. That helps.
[00:49:25] Chad Corbett (Coach): I think something that's an important areas is disclose like your representation.
[00:49:30] Wayne: Okay. True.
[00:49:31] Jim Sullivan (Host/Coach): All right. Does that help, sir? Yep. All right. We have one more in the queue chat before we get to the last caller.
Real Estate vs. Probate Timeline: How Long Does It Take?
I just got a text question from a caller, like three, three callers ago. it was mentioned that in California, it can take 18 months to close the probate just in case we got any new people.
[00:49:47] We don't want them to think that they're not going to get ever get paid for 18 months. Would you just real quickly explain how you can get full authority in California and be able to close it sooner?
[00:49:56] Chad Corbett (Coach): Yeah. And just because probate takes 18 months doesn't mean that you're not going to get paid. I think that's a common misconception.
[00:50:03] Like real estate is not probate. Real estate is one asset within probate. So even in States where probate takes a long time, which, California, Nevada, Hawaii, like they, they have long processes. It doesn't mean the real estate professionals not going to get paid and the title's not going to transfer.
[00:50:20] So the first thing is understanding that the next thing is understanding, but not all attorneys are created equal. Some are way better than others. And some are way more, proactive, which makes their process more efficient, which shortens the timeline. Great drastically. If they haven't. Petition the court for full authority versus limited authority.
[00:50:39] That's one thing that you can nudge the attorney to do on their client's behalf. And what that allows them to do is fast track the entire process, especially the real estate sale. So in California specifically, and that is very similar when you have the contract and the purchase agreement is ratified.
[00:50:55] That's then submitted to the probate attorney who submits it to the court and that they then appoint a referee. I go out and give them a valuation. Then you wait for the next hearing. And then they open an over bid process. And then your buyer, if you're the buyer, you could be overbid by 10% and it's more like it's an option format.
[00:51:13]If you want to avoid that whole thing, you just need to petition the court for full authority. At which point it looks like it does. And just about, and the really simple States ratified the purchase agreement. Get us a title close. So it's you don't like if you were alarmed by that statement, it did certainly doesn't mean you can't get paid for 18 months.
[00:51:31]But you can, by understanding the local process and being very familiar with it, you can find ways to help the clients. If the attorneys not, you can help push them through. And what you'll find when you do this and get to know a few attorneys, really good probate attorneys, don't allow their clients to have limited authority because it's not in there, but it's not in their best interest.
[00:51:51]but unfortunately they're not all really good. So sometimes we have to help them along.
[00:51:55] Jim Sullivan (Host/Coach): Perfect. Thank you. we have, we're making up for the short call yesterday with a long one today. We'll one more caller in the queue. Last up this week is phone number ending in six, three eight, eight year up last.
How To Find An Investor-Friendly Realtor and Get Paid For Finding Them Listing Opportunties
[00:52:07]Ron: Hi, thanks for taking the call. This is Ron in Arizona and I'm new. I got, a couple of things, first of all, my County is two hours away from me. It's not going to be easy for me to drive down there all the time. I want to work with a realtor. There's a realtor there that I respect. I'm not sure how to frame the relationship.
[00:52:28]And I'm also, the second part of the question is I'm not sure what to do to, get some momentum, get the things moving. I'm in a mental framework where I want to know the whole stretch of how things are going to work before I take a step and I'm not getting anything done that way I have to move forward somehow.
[00:52:48]Chad Corbett (Coach): So are you clear on your offer? Like all the ways you can help these families?
[00:52:52] Ron: Yeah. I think I'm clear on that. What I'm not clear though, is, how many to work with their real estate agents? I'm aware that she may be tempted to try to take, what could be a wholesale or a creative finance deal from me and make, turn it into a listing for her.
[00:53:10]And I want to try to, frame the relationship in a way that's not so tempting for her. That she would really value the relationship more than anything. So that may mean that I'm going to have to pay her more for wholesale now.
[00:53:23] Chad Corbett (Coach): You won't cause she's going to get more opportunity than you are. There are more listings in most cases, there'll be more listing opportunities then than acquisition opportunities. It sounds like you're doing creative financing. So you're going to have a higher close rate, but my suggestion is make the two hour drive. Go, take her to somewhere or her choice of where she would like to meet for drinks and, settle in for a couple of hours and really just talk this through and set proper expectations.
[00:53:50]And if you're comfortable with this and she is, I would recommend that you end that meeting with a pledge, like just, it can be the back of a napkin or something you type up and whatever that might be. But yeah. Is, make sure the things that are important when I coach investors to find the right realtor, you need to make sure they understand your strategy.
[00:54:08]So if your strategy includes long-term buy and hold wholesale fix and flip and creative financing. They need to understand those things. Cause they won't know when they're getting out of their lane unless they do. So you guys need to have like standard operating procedures for when somebody is at this level of motivation or this price point, then that's my appointment when they're at, different than it's yours.
[00:54:31]and figure that out. If in the beginning, you may to help build these like procedures, you may actually want to go on each appointment together. So you guys can, you can kick her under the table and be like, no, we're buying this one. What's key is setting proper expectations and getting all the, what ifs up out upfront before anything bad happens and any money gets lost or, it ends up putting the wrong pocket.
[00:54:55]so I would recommend, sit down and really build that relationship, like a bottle of wine, Get a restaurant close to the hotel. Like you sit down and really flush this out and until everything is said, and then that should eliminate any conflicts or confusion.
[00:55:08] Jim Sullivan (Host/Coach): And then probably want to recommend two rooms right Chad so we don't, it doesn't get too confusing. Okay. Okay. Go ahead. We're running short on time, but you have a follow up question.
[00:55:17] Ron: Yeah. If it turns into a listing for her, is can I ask her for a, a fee on that? Yup.
[00:55:23] Chad Corbett (Coach): She needs to account for income tax liability because she can't legally pay you pretax. unless she has a, unless she holds her license in entity, then she can, but she can pay a marketing fee to you. What might it be cleaner way? And I'm sure her broker would be more comfortable with it is if you actually just split the cost.
[00:55:41] So maybe you pay for the leads. She pays for the male or vice versa. or something like that, if not having the payment tied to a specific piece of real estate is wise, because that way it can't be construed as a commission or perceived as a commission. So if you have a retainer that she pays you a monthly marketing retainer as a marketing fee, then it's, you can clearly say, listen, here's the invoice from the last three months, it's always the same amount.
[00:56:08] That's obviously isn't associated with business activity or any certain the parcel ID, this is just a business arrangement between the two businesses. Or you can just split your credit cards, her credit card on file for mail and yours for leads and see how that equals out.
[00:56:24]Jim Sullivan (Host/Coach): All right, sir. Does that help?
[00:56:25] Ron: Yeah. Yeah. All right. All right.
[00:56:27] Jim Sullivan (Host/Coach): All right. we appreciate all of you guys. Thank you for it was a marathon call. We had great participation. I want to challenge each of you: take one thing, one thought, one idea that inspired you on this call. Go out and put it into practice and please come back next Thursday and share your results with the group.
[00:56:45]Have a great week. Stay healthy, stay productive, and we will talk to you. Same time. Next Thursday, take care everybody. Talk to you soon.