– Do a role play kinda, yeah you can close that. I kinda wanna do a role playing
on how I go into a house. So I’m gonna set the scenario. Tommy calls Lyka, he sees our website. He calls and house is worth 120, right? And he says he wants 75,000. Okay and he owns it free and clear. And you inherited this property from a family member. Right? So this is how I come to a house. So we didn’t script this, but I’m here. Boom, boom, knock on the door. – [Tommy] Hey, how’s it going? You Max?
– Yeah, how you doing sir? – Talked to you on the phone right? – Yep, nice to meet you. – Oh you too man. – Nice looking house you got here. – Yeah man this is, I’m telling you man, this is, kinda sad. You know we had some family passed away. And you know, it breaks my heart. We got a lotta memories in here, but you know it’s time to
go, it’s time to move on. – Did you live in this house? – You know I didn’t live in here. But it was my aunt’s house. – Okay. – And I do have a lot of memories. We had like family
cookouts, birthday parties, those type of things. – Yeah, I know what you mean. It’s kinda hard and
sometimes it’s cumbersome when you just, a property
falls in your lap. – Yeah, yeah.
– Right? – Yeah absolutely. As you can see there’s some problems. We got a little leaking, I’m gonna be honest with you, right? – Well let’s go around and look at it. Let’s go around and look at it. – Alright, cool. I mean well you can see
the water stains here. – Yep. That’s not that bad though. – I mean yeah, I mean I guess, I mean it’s not that
bad, but obviously if, I mean if that’s there,
there’s something wrong on the roof, right?
– Yeah, yeah, okay. – I mean I wanna be up front with you. You know what I mean, I
wanna be real with you. So but you know I mean besides that, I think it’s a pretty good house. Now I mean, we got a
little stuff here and there but I mean you can see here, the flooring looks pretty decent. – Okay. Yeah I mean, it’s okay. It’s outdated a little bit. The kitchens look outdated,
the bath look outdated. Now remember guys, the
house is worth 120, right? – I mean it’s a little
outdated, but I mean, I mean it’s workable right? I mean–
– It is workable. Now let me tell you what we do. We’re a group of four investors, local here to Winston-Salem. – Alright.
– And we buy houses for mainly two different reasons. We’ll buy a house and we’ll
fix it up a little bit. And we’ll add it to our rental portfolio. Now the second we been doing a lot lately is we buy a house, completely fix it up, make it modernized, right? 2018. And we try to get it on the
market in the next six months. Right?
– Okay. – So this house, if you
had to take a guess, what do you think, this house is good for
our rental portfolio or you think we can flip this house? – I mean, you know I
think this either one man. Like I mean I can see a family
living in here for sure. Like my aunt did. – I think you’re right,
I think you’re right. Now you know I think on this market, I think, you know, we can
get probably 109, pushing it. You know. – Really? Are you sure? Like I looked on Zillow and
you know it looked like it was. – Yeah, I wish Zillow
was correct all the time. But you know if this about 109 pushing. Now if we do push the envelope and put granite countertops in, which is not normal
for a house this price, you’ll probably get a little bit more. But you know I gotta
compete with other houses that people are putting 120,000
in to buy a brand new house. So I gotta make this house look brand new. Right?
– Okay. – But you know what, I don’t
think you’ve run outta options. You know I think if you want
to get the highest dollar I think you should list
this with a realtor. – I should list it with a realtor? – Yeah, I think you– – Well if I list it, well I mean, why am I… – Well I mean do you want–
– I called you, right? – Yeah but you wanna get the most outta this property, right? – Well yeah, I mean I’d like to, you know get a fair amount. – Yeah, yeah. I mean listen if you could take out a loan for maybe, 30 45 grand, which
I think it’s gonna take, you fix it up, in six
months you put it on. – That’s, I mean, I kinda
want to just get it done with, you know what I’m saying. – Okay.
– Like I don’t wanna have to owe on every single month. We got other things. You know I don’t live here. – I understand.
– Don’t gotta worry about people breaking in. I don’t wanna, you know. – Well here’s the thing. I’m an investor, right? And my thing is based on numbers. And I just don’t think
we’re in the same page when it comes to selling this house. And it’s fine you know what, I go to a lotta houses. And when I leave here, I
got two more appointments. – I mean but what number,
what number are you, you looking at though,
what are we talking about? – You know it’s kinda hard to say. I would (sighs) what do
you need outta this deal? I mean what are you comfortable? What’s the perfect scenario for you? What are you gonna do with the money? – Are you saying it’s worth 109, I mean, I think if I can get 80 or so, I think that’ll be cool. – Yeah but here’s the scenario. And I understand why you want 80. It makes sense. 109, there’s a big discount. But Francis and I are
gonna go in this house and we’re gonna spend 30, maybe $40,000 to get it to look like a house from. Now think about this. You and your wife are driving around. You got $115,000 to spend. You want it to look like
a house in 2018, right? So that’s kind of what we’re up against when we’re flipping properties. I wished it was easy as on TV. But it’s really not that easy. So $80,000 is not gonna put me in there, because think about it, from 80 to put, let’s just say a minimum, I put 30 in it. I’m at 110. So there’s no money for us. That’s why I think the best option for you is maybe to get that hard money loan or you know I got phone numbers of about five or six realtors that’ll come here and take a look at it. – I mean I shot you an offer. What can you do? – I don’t really wanna insult you. I kinda wanna find out what
is your perfect scenario. You know tell me what you gotta have. And here’s the difference
between a lotta people. I buy houses. So you know the thing is I’m not gonna, the offer I give you or
the offer we decide on, it’s what you’re gonna walk away with. I’m gonna pay all the closing costs. – Okay, so you’re gonna take
care of the closing costs? – Yeah, the number we
agree on, that’s the number you’re gonna walk out
the attorney’s office, minus a couple hundred bucks
for some excise tax fees that you know, I can’t
take care of for ya. – Alright. How quickly can you close on this? – You know here’s a scenario how it works. So you and I agree on a price. I’m gonna bring $100 escrow
to the attorney’s office. This, basically I hire him at that point. He starts the title
search, probably takes him anywhere from seven to 10 days. Then we get on his calendar. I say all together three weeks. But you know, on the contract,
I like to put 30 days, because I’ve lost a property
because we weren’t able to get on the attorney’s
calendar fast enough. So I put 30, but we’ll
probably close in 20. – So you think you can
close in less than 30 days? – Absolutely, I know I can. – You know you can?
– I know I can. And listen, you never
have to come back here. You don’t have to take
anything outta the house you don’t want. – I was gonna ask you, yeah. – Yeah, you leave anything you don’t want and we’ll take care of the rest. – Okay. Man, so less than 30 days, we’re done. I don’t have to be nothing. – It’ll be the smoothest
transaction you’ve ever had. And like I said we do
this 10 times a month. – If we can get it done quick, I think I might be willing to do, 50, 55. (sighs) – I might not be your guy. And I don’t wanna insult ya. I don’t wanna insult you just because I gotta put
30, 40 grand in there. And I’m at 90. That doesn’t leave much room. And I know you’re thinking it’s easy. But I’m, I’m really at about 40,000. – 40. Can you do 42? – It’ll be tough. It’ll be tough. But you know what, I’ll get it done. Let’s do 42.
– 42? – Alright?
– 42. – So now you guys seen that. That’s $120,000 deal. But here’s what I wanna explain to you. I didn’t give him an offer
until I know he was ready to sign the contract. I gave him every opt. He sold me the house. I didn’t buy it. He convinced me to buy the house. And that’s what you don’t
wanna go into a house as a desperate buyer. Right? That just changes. I gave him a scenario. Listen you can go list it, I can get you a guy for a hard money, I can’t get him no hard money loan. I can get him for a hard money loan, there’s all these other
options that he has. And he’s upset because
he called me to get what? An offer. I got the carrot that I
wanna hang over his head. And I’m not gonna give up that carrot too early in the conversation. – [Man] Can I? I would say good point it,
like you didn’t make offer, he made the offer. – I made him make three offers. So he went from 80 to 50. I said listen I’m at 40. I’m good at 45 on this property, without even doing the math. I already know. Right so that is the difference in between going in a house, now you know how to talk to somebody. Huh? Well yeah, I know the numbers, but you should’ve already
done your homework before you got here, right? So if this house, do the math. Anybody got a calculator,
this house is $120,000. Remember we talked about that. 120 but I told him it was 109. So 120, remember I purchase on this number and I sell on this number. So let’s talk about what
we really need to be at. You’re at 120, right? You’re gonna minus 30%. What does that leave us guys? – [Man] 84. – Alright so we’re at, say okay. $30,000 rehab. How much does that leave us? – [Man] 54. – 10 grand in profit. – 44.
– 44. – I got it for 42. And I’m gonna call him and ask
for a reduction in six days. You see what I’m saying? (group laughs) I didn’t even have to think about that. And that is how you go into
a house as a confident buyer. That I don’t need this house. But if you wanna sell it,
I’m the guy to buy it. Right, because the prep conversation for me coming here is that I’m
not here to look at houses, I’m here to buy a house. You wanna show your house,
put it on the market. A lotta people come looking through it. I don’t wanna come to just see your house. I’m coming to buy that thing. That’s how you close deals. It’s called the going negative. Right? ‘Cause most people woulda gone in there and they woulda threw out the offer. They done started negotiating. You lost. If you start negotiating
with that guy at 80 grand, you’ve lost. You know you need to be at 45. You not gonna get somebody
from here to there. I started negotiating when he got to 50. And I felt that he was, he so desperate he wanted to sign that contract. I threw out my offer. I threw out 40, knowing that
if he said 45 I’d take it. And he said 42. And I didn’t argue with him. ‘Cause he won. You see that? I gave 40, he said 42. He walked away happy. Baby, I got him. He go in the car, he say baby I got ’em. He offered me 40 I said I need 42. And he said baby I got it. (group laughs) Right? So he won. He just made an extra two grand. I made an extra three. Right? So that is, that’s sales, right? And you guys that’s
back there selling cars, I hope they taught you that. You never wanna push the sale. You never wanna push the sale. You always wanna be behind. You always wanna be behind the person. You never wanna push them to a sale. Right? I don’t need this house. That’s my attitude. Remember it’s not that bad. That my money came from,
I gotta update the house. Yes your cabinets look great. But they’re 1984 cabinets. I gotta put all white ones in here. And I flip the script on his perspective. Imagine if you and your wife
was shopping with 120 grand. Would you buy these cabinets? I gotta make ’em look like brand new. So yes, your house is not in disrepair. But it’s outdated. Get ’em every time. I’m telling you. People, because he, that 80 he threw out there
when he was on the phone, that was BS. He ain’t want 80. If I gave him 80, he would’ve been happy. But he knows ’cause he read the website, that we’re investors. And 109 to 80 and you see
how I anchored him at 109? That’s called anchoring. I made him agree, we agreed. See if you don’t agree
on the starting price, then you’ll never end up
at the same ending price. Because if he thought the house was 120, and I said 109, we’re 11 grand apart. My offer would’ve had to’ve been 52 for it to make sense. So that’s it. That’s how you go in
there and close the deal.