Today on The Epic Real Estate Investing Show, we conclude Matt’s new free course, “Your First (or Next) Deal – Little to No Money Needed Real Estate Investing!” Learn about the best three exit strategies and how to use them, how to navigate negotiation scenarios and create win-win scenarios, and how to execute the sale and get that check!
What You Will Learn About Your First (or Next) Deal – Little to No Money Needed Real Estate Investing Pt 4:
- How to invest in real estate and get paid
- Some clarification on things from part 3
- Your three exit strategies and use to use them
- The BEST exit strategy that will yield the best results
- How to escape the rat race
- How to navigate 3 negotiation scenarios
- 2 different contracts and how to use them
- How to find a C buyer
- How to create maximum exposure for a property
- Exactly what to say on incoming buyer calls
- How to create win-win scenarios in your negotiations
- How to execute the sale and collect the check
- Where to ask any questions about getting your first deal
- How to make a good counteroffer
- How to go faster and further with your investing
Whenever you’re ready, here are a few ways we can help:
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Matt Theriault: This is Theriault Media.
Yeah, welcome. Welcome back to The Epic Real Estate Investing Show. And thank you. Thank you so much for listening and for your interest in this new case study program, this case study pilot program we’ve been talking about. The private Facebook group that we set up is very active. Its great to see everyone interacting and exchanging ideas, everyone is doing what they are supposed to be doing, everyone is helping and supporting each other. In my book, just that alone, that type of cooperation and support in today’s world, that’s a success right there. I mean, there’s enough negativity going on right now and just in our overall globe, the ethos, and we could use some more positive places to interact. And so just thank you all for making that place an amazing spot.
We’re going to wrap it up today to show you how you’re actually going to get paid with a simple exit strategy using someone else’s money, as that’s the foundation of this pilot program of how to go from A to Z in a deal using little to no money. When I say little, I mean little, like very little, is actually required and necessary. And up to this point, we’ve covered how to attract leads to you and we’ve covered how to convert those leads to contracts. And today, we’re gonna cover how to turn those contracts into paydays. Alrighty?
So I’m going to keep this really, really short so we can get right into today’s lesson as you’ll be able to listen here to the entire program. But if you’d like to watch and get access to all of the resources mentioned in the program, interact with those in the program, and plug in to the regular mentoring calls that come with the program, with me, go to freerealestateinvestingcourse.com, freerealestateinvestingcourse.com, just like it sounds, no funny spellings, no hyphens, no spaces, just freerealestateinvestingcourse.com.
So here’s what I’m trying to accomplish with this new pilot program. I know that you’re probably listening to this show and paying attention to what I do because you know you need help in one or all of these three areas. Number one, you might need more leads. Number two, you might need some help with converting those leads into contracts. And/or, number three, you might need a way to find the money to close your deals and be able to do that consistently and systematically. So we’ve made a tremendous stride. We’ve made tremendous strides in creating real predictable businesses out of investing in real estate through our REI Ace program, it’s our big flagship program that we have here at Epic, and we’ve multiplied our successful case studies by seven or eight or so. It’s been a lot, and just in the last 18 months. And the results really have been nothing short of extraordinary.
So I’ve interviewed several of the participants here on the show just to give you evidence and let you know what it sounds like because a lot of these people started from the exact same place that you’re starting in right now, and with just a little bit of guidance, and direction, and some resources, and some help when they needed it, they were able to make it happen for themselves. And what we’ve noticed that what most of the successful case studies have had in common is that they’ve made large investments in their education before we ever met. Like in the past, they made a big, giant, sizable investments in their education in the past, and as a result, they have been able to close a deal or two here and there. And their biggest challenge now though, it’s closing deals consistently, and that’s where the REI Ace program has really crushed in helping that specific person. So if that sounds like you, REI Ace just might be for you.
Now, what we’re doing is we’re applying the same approach to help the newer investor of limited resources, get their first deal. That’s where this case study pilot program that we’ve been discussing the last few weeks, that’s where this comes into play. And so, here’s what I ‘d like to do for you and do for all of you, regardless of where you are in your real estate investing. You see, I’ve got just … I don’t know, I just got so much respect and admiration for you hanging here with me each week and every week and taking this on, playing such a big game in life, you know taking control of your finances and taking control of your financial freedom. There’s so few people are courageous enough to take something like this on. I mean, it’s so simple, It’s so important, yet so daunting for people that they leave their finances and their investments up to someone else to manage.
So I know what it takes. I know it can be lonely out there. I mean, just being an entrepreneur can be a lonely existence. I know the resistance that you experience from your family, from your friends, from your associates, a lot of naysayers out there. I mean, some of the biggest resistance comes from the people in your life that you are closest to, that is the most important to you. But you hang in there, you do, because you know you deserve better and that no one should dictate what you do with your life. It takes courage and I commend you for it.
So here’s what I’d like to do for you. I’ve got a guy. I talked briefly about him a couple of weeks ago, a couple episodes ago … or a couple weeks ago, Nick. He’s the only one that I trust to actually get on a consulting session with you and find out specifically which of these three areas that you need help in. Nick calls this session, he calls it a business acceleration session. And what I’ve asked him to do is simply to make himself available and find out where you need the help and then literally, give you any of my relevant trainings that can help you get there. Now, keep in mind, he’s not a salesperson, and when you talk to him, you’ll understand what I’m saying. He’s not a salesperson. He is a trained business consultant, however, to work with people that struggle with getting to their next level and particularly people looking for fast results. That’s where he specializes. His passion, it’s really to find out exactly the type of help that you need and literally, give you the training materials and resources that are going to help you get there.
So I believe after being an investor for, I don’t know, more than a decade now, and an educator for close to a decade, that courses, they are very, very helpful, but actual help from real living people is even more helpful. That’s what this business acceleration session it’s all about.
So, yeah. When you’re a part of this Epic community, the number one highest priority is that you get actual in-person help when you need it. And in conjunction with his consulting firm, Lighthouse Advocates, Nick will be assisting me with an elevated level of support for you by sponsoring The Epic Real Estate Investing Podcast. So, welcome, Nick. He’s our first official sponsor. Let’s all give Nick a nice, warm welcome. Thank you, Nick.
Lighthouse Advocates, they operate primarily as a business consultant in the areas of cash management, process development, business innovation, marketing strategy, tax planning and preparation, accounting, bookkeeping, payroll services, customer acquisition and retention, legal and asset protection, and all-encompassing wealth creation strategies too. It’s a lot. But it’s not just him, he’s got a staff, he’s got support with the staff of attorneys and licensed professionals at his disposal. Lighthouse Advocates has been rescuing businesses in the nick of time for more than 20 years. So go to lighthouseadvocates.com, submit your biggest challenge that you need to be solved, or give them your biggest opportunity that you’re facing right now that you need help to seize. And when you do, either John or Brock, they’re going to reach out to you and they’re going to help you schedule your one on one session with Nick.
Again, Nick, he’s not a salesperson, he’s not going to be pitching anything, he won’t be asking for any money, he’s just going to be helping you figure out what can have the biggest impact in your business right now, and then just point you in that direction. Alrighty? That call’s going to be, I don’t know, maybe 45 minutes or so, and he’s just going to find out the one thing that you need help with the most, and if it happens to be something that I do, he’s going to literally give you any of my trainings that I’ve created over the last decade that can help you get there. Alrighty? So whenever you’re ready, go to lighthouseadvocates.com, lighthouseadvocates.com. And yeah. I hope you take me up on this offer, and I look forward to hearing about the breakthroughs that you’ve had as a result of talking to Nick. Alrighty?
So thanks again to Lighthouse Advocates. Now, let’s get on with this show, the last training in this pilot program. And like I said, you can listen right here, right now, or you can go ahead and watch at freerealestateinvestingcourse.com. Alright, let’s get paid today. Enjoy.
All right. Welcome back to the fourth and final lesson of this course of how we’re going to get you to your first deal using little to no money. And if you’ve gotten this far in the process, really the hard part, all the difficult stuff, the challenging stuff, it’s all behind you, and now it’s time to get paid. All right? So it’s actually a lot easier than I think that you might think. Most people think that this is really the hard part. Not the case. So, let’s see. Something I was thinking about yesterday was, or I was thinking at the end of yesterday after I got done with the lesson, was there were a couple of things I kind of skipped over and I just wanted to clarify, and there were some things that were kind of blurry and I wanted to clarify.
So when we were going over the actual deal analysis, we went over that deal analysis and we ended up with this weird situation where we had this $10,000 property. So $10,000 properties, yeah, they exist. If you’re from one of the coasts, those things actually exist, but don’t let that distract you, okay? The principles all apply the same. So if you’re thinking like, “Ph, yeah, sure. For a $10,000 property, of course, that would work.” No, same principles apply if it’s 100,000 or a million dollar property, okay? So that was one thing. Second thing was, I showed you how to go ahead and access that information through a website like Zillow. What I didn’t show you, it was just kinda cool, inside of REI Solutions, they have a quick analyzer tool to where you can get that information. Just like this, you can get all nice, pretty read out. So I thought I’d just show you that real quick.
So this is what it looks like on the homepage of REI Solutions. Click on this little house up here. You just kind of click this and you go quick analyze, and then you just go ahead and you can type in the address of the property. Let’s see. Just type in the address, click “show me the comps”. And just like that, you’ve got an instant readout of all the comps, everything that’s sold, it gives you a nice little summary over here. Here’s the estimated value, the value range, the 30 day change, if it’s gone up or down, the last time it was updated, and then here’s all the different properties that they pulled that information from. So that’s pretty slick. So I just want to show you how you can do that really quickly. But if you have access to Zillow, which everybody has, it’s a public website, you can find it readily available there. [inaudible 00:11:36] cuts to the chase and streamlines it. It makes it a little bit more easy and efficient for you, okay?
Then the last thing I noticed that I didn’t mention and it might confuse you, especially when you go down to the downloads and you get the scripts on the present and get consent document. Here it is. All right. So we went over this yesterday. Here’s where you ask once for the deal. You ask here for the deal, you ask here for the deal, and then you ask here for the deal. So that’s four times that you’re going to try and create some sort of agreement between the price and terms with you and the seller. Down here below, you’ll see this on your copy, and I didn’t cover it, I just want to make sure it doesn’t confuse you.
It says, “Mr. Seller, I’m sorry, it doesn’t look like the market is going to allow us to both get what we want. As a final attempt in creating a win-win scenario for us, what I can do is leave you with this letter of intent. You’ll see it has three different options of how I’m prepared to purchase your property. Take a look at it and let me know if anything resonates with you. My number’s at the bottom if you’d like to call me and discuss further.”
All right. So we didn’t cover that three option letter of intent. That’s what it’s referring to this three different options on this letter of intent you see right there. Okay. So it’s an extra way to work the price and terms, and trying to get a contract with the seller, but that’s not what I’m really covering on this strategy, in this course because we’re really going to focus on just how do we flip this property, put some money in your pocket? I don’t want to complicate the whole process by going deep into a deal structure. That’s inside of The Epic Pro Academy. That’s for a later time. I want to keep things really simple and just get you a cheque as efficiently as possible.
So that kind of brings us back to our REI Ace model, right? So today’s lesson is all about the exit, right? So you make your money when you buy real estate, you heard that, right? And when you buy real estate, that’s when you attract the lead and you get under contract. This is where you make the purchase. It’s over here, is where you actually get paid. This is where you collect your check. So there’s three components or three profit accelerators when it comes to the exit strategy. There is the flip, then there is the hold, and there is the finance. So you make your cash when you’re flipping properties. You make your cash flow and you build your equity when you’re holding properties. This is where the real wealth is created. This is where the rat race escape comes from.
But what we’re doing right now, is we’re just flipping to make some cash to put us in a position to start holding. And once we get these two things underway and we got these established, we can essentially start becoming the bank and executing an additional exit strategy where you can kind of get the best of both worlds, you get chunks of cash and streams of cash flow. But for this course, all we’re going to be focused on is the flip, how do we purchase things at this property low? How we sell it high and get to keep the difference? All right? So all the while using little to none of your money, or use somebody else’s money for this.
All right. So let me explain to the actual deals. So we’re going to go through how to market your deal and find buyers, we’re going to go through how to field incoming buyer calls. So when those buyer calls start coming in, how are you going to handle those so you can make sure that you put the deal together. And then we’re going to go through how to execute the sale and collect the contract or collect the check. Got it? All right. So let me get a clean piece of paper. All right. Here we go.
So I’ll grab a couple of different colors here, and here we go. All right. So you’ve got this house. We’ll say this is our house. And this is our seller over here, and then you are the buyer over here, and it’s you that are buying this property. And when we did that, we did that with a contract, all right? Here’s our purchase agreements. So in the transaction, we call this our AB transaction. So the seller is A, selling to the buyer, being B. Okay? To get this house, there is a contract between these two. The contract is between the buyer and the seller. Now, we’re going to flip this property and there’s a few ways that we can do this. We’re going to flip it and sell it for more than what we’re in contract for.
So the first one is we can do what’s called an assignment of contract, an assignment of contract. So it’s going to be your job to go out and find someone else that wants to take your position, take your place inside of this transaction, and we’re going to call that our … This is our C buyer. This is always going to be the money person. This is whose money you’re going to use, all right? So an assignment of contract, what that is, you have this contract between you and the seller, and then with an additional document, you’re going to assign your rights to this contract, you’re going to take your rights out of this contract and you’re going to pass them on to the C buyer, then the C buyer is going to come in and they’re going to do the deal with the seller. Okay? So we call that an assignment. You can’t really read that, but you get it, that assignment.
Okay. So it’s taking these rights, passing from here to here. So now this contract is no longer with you, the contract is between you and the seller … Excuse me, the C buyer and the seller. Okay? And inside of this assignment of contract, you’re going to have some sort of fee. They’re going to pay you to get the rights to your contract. So that could be, I don’t know, just say, you did it for 5,000 bucks. So they’re going to pay you $5,000 for a position in your contract. Now, this $5,000, it can all be negotiated in how you collect that. It can be paid inside of Escrow or outside of Escrow. We’ll talk about Escrow in a second. I just want to make sure that you got that, how it works. Let’s see. There it is.
So this is the document, You’ll see a link to this one below. This is the assignment of contract or interest and controlled business disclosure and holds harmless. So the assigner is you and here’s the property address. Here’s the assignee, here’s the C buyer, they’re going to go on here. The assignment fee of … You have to put your fee in there, that’s whatever you agreed to. And assigner has negotiated a purchase price on the above-referenced property, so that’s going to be the purchase agreement contract, and is a price with no warranties or guarantees, add an assignment fee of whatever that fee is. The assignee’s total purchase price is, so your C buyer, is [inaudible 00:18:54], okay? And you just kind of fill in the blanks and you’re good to go.
So you can execute this outside of Escrow without a closing agent, without a title officer, without an attorney, or you can go ahead and you can take this and provide it to the closing agent and they’ll make sure per this document that you will get paid once that deal actually closes. That’s traditionally how it goes, more often that’s how it’s going to go. So that’s first way, you’re going to assign the contract. Yeah, let’s just do … We’ll do a fresh one, okay?
So kind of the same scenario. You got a house, you have the seller and you have you, the buyer, and then in the middle, you’ve got a contract. Now, what we’re going to do is called a double Escrow. So you would still have the same C buyer, they’re down here, but instead of doing an assignment of the contract, what’s going to happen is there’s going to be a second contract created, the second contract between you and the new buyer, the C buyer. So there’s two contracts. In this contract, you are the buyer, in this contract, you are the seller. Got it? So there’s two different contracts, and obviously, you want this one to be for more than what this one is. And you get to keep the difference.
So how do you collect that? Well, you take those two contracts once you had them negotiated and you got both pieces of paper, they’re both executed by all parties. You can go ahead and you can give that to your closing agent and say, “Close this one first, and use this person’s money on the second contract to pay this person.” So you’re going have these closed concurrently and the Escrow officer is going to understand this person’s money is going to come all the way over here to pay the seller, and then you get to keep what’s in between, right? So that’s how that works. And this is called a double Escrow.
Now, the caveat here is, it’s becoming more and rarer for closing agents to go and execute these. It’s kind of the ramifications, is the right word, or maybe the consequences that we’re all paying for, for all the trickery and chicanery that happened in 2007, 2006, 2005. There was a lot of weird things that went on. And so closing agents, closing companies, they kind of like to just not even do these and allow you to do these because they just don’t want even risk it. And you’ll hear people say, double escrow, that’s illegal. You’ll hear people say, assignment, no, you can’t do that. It’s illegal. None of this is illegal. It may be against the closing agent’s policy, it might be against company policy, but it is not illegal. So don’t let anyone talk you into that. Don’t get fooled or intimidated by that. You just might have to look for a few different closing agents to find people that will do this for you. You just have to look for an investor-friendly closing agent.
So if you can’t assign, you can’t do the double Escrow, The third option is to use what’s called transactional funding. Transactional funding. You can conduct a Google search inside of Google, obviously is where you conducted Google search. Just type in transactional funding and you get a list of people that will do this for you. And really what it is, it’s a really short loan. I mean, one day or less. So up here, they give you the money here, so you can buy the first transaction. And then that same day, now that you own it, you can go in and you can sell it to the C buyer and collect your money that way. The transactional funding, they give you the money for a temporary loan, really short term, one, two days max, really, and you’ll be able to buy this property with their money, you own it. And now that you own it, right away, you get to turn around and sell it to your C buyer and obviously, you want to sell it for more than what you bought it for, and then the lender will take a little fee of course, and you get to keep the rest.
So those are the three different ways. Assignment of contract, double Escrow, or using transactional funding. How do you find this C buyer? That’s the next big part. How do you find the C buyer? Once you’ve got this under contract, you have something that’s called equitable interest. Essentially, you own the property, you just don’t have the right to move in and live in it yet, but you have the right to go ahead and conduct inspections, and part of your equitable interest rights is to go out and market this. Now, even though technically, it is your right, I would let the seller know. I think we covered this, the little speech right after you get the contract signed, and if we didn’t, not covering it up. It was in a right after you get the contract signed with the seller, it’ll be something to the effect.
All right, I’m going to start my due diligence and this looks like it’s going to be a good fit for my portfolio. But if it’s not, don’t worry, I can find another buyer for you. There’s plenty of people in my network, or we’re going to just make sure that you get your money in the time that was promised. After all, that’s what is most important, right? Perfect. Okay. So once you’ve given that little speech, now they’re aware that you might be finding another buyer for this, so you want to kind of disclose that up front. If you do it after the fact, they can get a little sticky and a little more difficult to backpedal and explain to the seller what’s happening. But if you give them that little free speech, then the subsequent part that happens next is going to be a lot easier, a lot smoother.
So, now you’ve got this under contract, you have to find this C buyer, that’s what we’re looking for. So there’s something that you’ll see below called the 20 point property marketing checklist, and let’s just look at it right here. That’ll probably be the easiest. So once you get the property under contract, if you can’t, you won’t be able to execute every single one of these steps. You won’t be able to execute every single release steps with every deal, but you’re going to do your best, okay? So the first thing is we’re going to try and get the keys and secure the property. We want to have access to the property so we can let that C buyer in if we need to. We’re going to go in and we’ll take photos, we’ll take a video, we’re going to determine what our sales price is. Remember our second contract is going to be for more than what we’re in contract for, the contract we have with the seller. And then we’re going to write a property description, we’re going to create headlines.
Let me just touch on that for a second. There’s a basic tenet of marketing that says … Let’s see. Here’s a basic marketing law, and it says, exposure creates demand. Exposure creates demand, and demand drives value. So you as a marketer, what you want to focus on is creating maximum exposure. This is the goal. As long as we can take care of maximum exposure, then the value is going to take care of itself. So to sell this property for as much as we possibly can, we just focus on maximum exposure. And this 20 point property marketing checklist, this is how we create maximum exposure.
So first, we’re going to control the property by getting the keys and securing the property. We’re going to take photos and video because we’re going to use that in exposing the property in our marketing. We’re going to determine the price, we’re going to write the property description, we want to write three of those. I’ll explain to you in a second why. And you want to create headlines up to 15 of those. Down below you’ll see examples of headlines, some of the headlines that worked for us the best in the past, you’ll see an example of property descriptions, what those are supposed to look like. Once you have these headlines and property descriptions, I want you to choose your favorite headline, so choose your favorite headline, choose your favorite property description, and then you’re going to blast this to your buyer’s list. You can blast it via voice, text, or email. But wait, this is my first deal, I don’t have a buyer’s list yet. That’s fine. You will have to skip that step for this first deal. But if you do everything else that I’m about to show you, you’re going to build up your own buyers list really, really quickly. And so for your second, your third, your fourth deal, this is going to be a big part of you finding that C buyer to use their money to close your deal so you can get paid.
All right. So now, the first step, we’re going to go to post ads to online classifieds, just like Craigslist, and there’s a bunch of others out there. Now, this is where the multiple property descriptions, the multiple headlines come into play. Because what we have to do is … Craigslist has a little self-governing algorithm and they have a community algorithm. You got it. Okay. They got a self-governing algorithm and they got a community that does all the policing of the content that’s posted inside of Craigslist. So what you need to do is mix and match multiple headlines and property descriptions, so every time you post an ad, it looks like, to the algorithm, as something different. It looks like to the community, well, this is not the same ad over, and over, and over again, if it gets detected, they’ll go ahead and they’ll delete your ad, and your phone won’t ring you, your email inbox won’t fill up.
So that’s kind of how we work our way around it. So you just want to mix it up. And this is the other part of why you need so many. It’s because you’re going to post it three times a day, at 8:00, noon, and 5:00 because there’s so much traffic on Craigslist, or a website like Craigslist that by the time you post your ad, in an hour or so, it’s going to fall to the second, maybe even the third page, and it essentially becomes invisible once it gets down that far. So you want to keep on posting those three times a day. Zillow rental manager, this is getting a little bit more difficult, a little more tricky. Zillow has imposed some regulations to where they don’t allow you to post a property unless you own it completely unless you’re on a title. So there are ways to work around that. Use that at your discretion. You’re not going to go to Zillow jail or anything, but I don’t know, they may shut your account down if they discover what you’re doing.
All right. And it says rental manage [inaudible 00:30:45] that word for you. It’s just a portion of Zillow, at least at the time of recording this video. Maybe it changes. I think it’s kind of ridiculous why they have it, but it’s in Zillow rental manager, where for sale by owners posts their properties, so you post a property on there without using a real estate agent, and it’s under Zillow rental manager. And then from Zillow rental manager, that will syndicate it over the entire Internet to all the different real estate websites that are out there because Zillow is that kind of the engine, the primary engine that feeds all of these different websites. I think it’s like almost 30, 40 different websites. So if you get in there and you succeed, it’s a pretty good strategy. You get a lot of exposure that way.
Next, if you have a business Facebook page, and if you don’t, you probably want to create one, but you’ll post the property on your Facebook page and then you can boost your post to everybody in that area. What that means is for a small fee, 20, 30 bucks, you can broadcast that property, you can advertise that property to everybody in a given area. So if you want to do advertise that in the same zip code is where the property lies, that might be a good strategy and that’s something that you can do. You can do the same type of thing on LinkedIn, and then you can go ahead and post to all the real estate social sites. There’s things like Flipnerd, and BiggerPockets, and Connected Investors. There’s a bunch of them out there. So you get an exposure that way. And for the most part, this should be just about as much as you really need to do.
The only reason that your phone is not ringing or your inbox isn’t filling up after a few days, is that there’s one of two things. Something happened with the exposure and you didn’t actually get the exposure that you thought. So you want to constantly check on your ads and check on where you’ve posted the property to make sure it is visible. But that’s rarely the issue. The second reason that your property isn’t selling or no one’s inquiring about it, it’s not the deal you think it is. There’s something about it that you might not necessarily know that the market is telling you, “Dude, miss, ma’am, this is not a good deal. That’s why I’m not interested.” All right?
So if that’s the scenario, after a week or so, that should become pretty darn clear. And that’s new information you can take back to the seller in the sense of saying, “Mr. or Mrs. Seller, the market has spoken. This is a bad market.” Remember about the bad cop? “The market is saying, it’s probably not what we thought it was. I thought it was, but the market has changed its mind, and we might have to make some adjustments. So we could share in this new discovery, this newly, what I like to call, this newly found liability, and maybe extend the timeout a little bit to make sure that we can actually close this in the way that you want it closed, so you get the money that you wanted. So those are all different types of conversations you go back to the seller and discuss.
Now, if you still have the property at this point and you don’t have it under contract with a new buyer, that C buyer, then you can post for sale signs, okay? Some of these are going to have a little bit of an expense attached to them. As I said, you don’t have to do every single one of these with every property, but if you work your way from one down to 20, you have achieved maximum exposure. There’s not a whole lot more than you can do. So the next one will be creating a property flyer. You can send direct mail to a targeted cash buyers list. You can attend your REIA Meetings to announce your deals and pass out flyers. If it comes down to it, you may have to close and you could list with a realtor. Like I said, not all of these are going to apply, but then you accept the offer, you send an offer to the transaction coordinator, you open Escrow, closed Escrow, collect your proceeds. Okay? Oops, had a little cutoff there.
So those are just all the steps of how we get to the closing part. But if you go through those and you start from the top, work your way down, you’re going to get maximum exposure. Hey, but you got to stay on top of it. Some of those things are just for one day, some of them are just a few hours. You got to stay on top of it and keep on marketing, okay? Once you’ve got your property under contract, this is where all your attention goes. Because you are so close to the finish line, don’t fumble the ball and not get paid. So you really want to adhere to this in place all your focus on this and take it down to the finish line, so you can take that check to the bank.
Okay. So I showed you the assignment of contract, right? I showed you that. There’s two contracts down there. There’s one that you’re going to use to purchase real estate, and then there’s one that you’re going to use to sell the real estate. So this purchase agreement, and I’m not sure if I showed you this in the right order yesterday, but I’m going to make sure that it’s right, now. So this is the contract to purchase your real estate. You’ll fill this in, that’s between you and the seller. That’s the A to B transaction. And if you’re not going to do the assignment … This is the assignment contract, so you could do the assignment. And if you’re not going to do the assignment, then this is your B to C contract, your agreement to sell real estate.
The reason you want to use two different ones is because the A to B contract, where you’re using the purchase, it gives you certain rights. Specifically, it gives you the right to back out of the deal without penalty, and it gives you what is called contingency clauses. And the inspection contingency inside of that contract is pretty far-reaching and robust. It pretty much, you could really change your mind for anything and legally get out of that contract without penalty. And also, a little line or a little clause I put in there is that all contingencies must be removed in writing. So your contingency period, however you wrote it in the contract, it could be 14 days, 17 days, it could be 30 days, whatever it may be, but all contingencies have to be removed in writing. So like if you have a 14-day contingency, it’s not like at the stroke of midnight, all of a sudden, you’re in a binding contract. It has to be removed in writing, so you can’t get surprised. And then it gives you the right to inspect, and it gives you the right to assign the contract.
Now, when you go to this one, the agreement to sell real estate, it takes those things away from your C buyer. So this agreement to sell real estate, it takes away from your C buyer, all of those nice gifts that your purchase agreement gave you as the B buyer, all right? So it limits their inspections, it limits their … It actually removed their right to assign the contract. It’s adding leverage to your position so that the C buyer can’t, I guess manipulate the transaction and make you look bad and put you in a tight spot with the seller. So it just removes rights from them. The A to B contract gives you certain rights, and then for the selling contract, it removes those rights from the C buyer.
All right. Next, I think we’re just about there. Okay, cool. So now you’ve got your marketing going, now your phone is going to be ringing, your inbox is going to be filling up, you’re going to get inquiries from your classified sites, and these are people that want to buy the property. This is a point where you kind of have to take charge, you have to take control, and I’ll give you some key points on how to do that. The first thing is incoming buyer calls. So how do we handle those? Because they can run you crazy if you let them, so you have to take charge. Understand that this is your deal. You have control of it. You’re the boss, okay? You’ve got a good deal, they want your deal. You did a great job at negotiating and got a property at a nice discount, that they want that now. You’re the boss, okay? So if they want that property, they got to play by your rules.
So with that said, when they call, you have to take charge and tell them what you want them to do. You have to give them instructions, and those instructions are. “Send me an offer.” And you can say, “Send me the offer via fax, via email, or drop it off in person. I need it FedExed over here.” However, you want to receive their offer, have them send it in. Because these calls are going to come in and they’re going to say, “Hey, I saw your ad, I saw your property. Would you take 100 grand for it?” And you’re just like, “I might. Send me an offer. Send it via fax, send it via email, scan it, send it over here,” wherever it may be, but make sure that you’re telling them to put it in writing. “I can’t negotiate this. It means nothing to me unless we have this in writing. So put it in writing, send me an offer and then we’ll go from there.” That’s the first thing. Tell them what to do.
The second thing about that is you want to create urgency. You want to create urgency. So something I like to say is, hey, I’ve got some offers coming in and I’m going to be making a decision in the next 24 hours regardless of how many I receive. So I’ve got some offers coming in from buyers and it looks like I’ve got a few of them coming in. I don’t want to play games. I’m going to go ahead, I’m going to make a decision within 24 hours. So if you want this property and if you want a shot at it, I’d recommend you get your offer in within the next 24 hours. Actually, get it in right away, okay? I like to do this first and if I find something that’s going to fit, I’m more inclined to pick that one and not wait for the rest.
So that’s why you’re creating urgency. So it’s kind of combined with you’re telling them what to do, fax this thing in, email this thing over to me and you better do it quickly because I’m getting some other offers coming in. I don’t want to waste a lot of time. I want to pick an offer. I want to be in contract within the next 24 hours. The sooner you get yours over here, probably the better shot that you have. Okay?
So that’s two. Number three. You’re going to keep the possibility open. Here’s what I mean. Sometimes, if you play a little bit too hard, and you’re taking a little bit too much control, and you’re saying that, hey, you better fax this in, you better get over right away because I got a bunch of offers coming in, that can scare some people away to think like, “Oh, he’s got a bunch of offers. I might as well not even try. He’s going to pick somebody else’s.” You don’t want that. You want all of those offers to come in. And you might only have two coming in, or you might just have one coming in. You have an idea that you’re going to get some more, but you might only have one coming in and you don’t want to scare that person away. So you want everybody to submit that offer. You want to encourage them to do that.
So you’ve got to keep the possibility of them winning this thing, you got to keep that open. And what I say is something along the lines of, “Hey, I’ve received a few offers. None of them are quite what I’m looking for, and I’m not sure if I’m going to get it. However, I’m going to choose one in the next 24 hours. And so if you get me your highest and best offer, you’ve got a really good shot at getting this deal.” So what you’re saying is, “I am getting some offers in. I’m not sure if I’m actually going to get what I’m looking for, but I am going to choose a deal, or a contract, or a price, I’m going to choose an offer within the next 24 hours. If you submit yours and you get it in quickly and just submit your highest and best right away, then you’ve got a really good shot at winning this deal.”
So you’re keeping the possibility open. And by you saying that you know what, I’m not sure if I’m going to get what I’m looking for or not, you’re letting them know that they don’t have to outbid by an exuberant amount or go way over your asking price. They think like, “Okay, I still got a shot. Let me just get close to his price. Let me get in fast. It sounds like I might get this.” So you’re telling them what to do, you’ve created urgency, but you’re keeping the possibility for them open.
The last one is you want to counter everything, and you want to counter with your contract. So here’s what I mean by that. They’re going to send you an offer on their contract, and their contract is probably going to look very similar to your A to B contract, but you don’t really want them to have all the same rights with your deal as you have with the seller. You don’t want them to go and try and assign your property to someone else, and now you got two assignment fees in here. And that almost never works out. There’s too many moving parts, something is always going to break. So when you receive an offer that you are willing to accept, and you just keep on accepting these offers and you see one that you like, don’t sign, theirs, counter back with the same price and terms that’s in their contract. So you’re going to counter back with your contract because you want all those … You want to have the upper hand there. You want all those different clauses to be in your favor
And then if you get multiple offers and you don’t know which one is going to take it, you’re going to counter back all of them with your contract when you’re negotiating the price and terms, just like when you’re negotiating with the seller. You don’t want him to get down to just price and go back and forth on the price, because there’s always going to be a winner and a loser. You want to do the same thing with your buyers. You want any of your negotiations with the buyers to get reduced down to just one point, like just the price, or just the closing date. So anytime they ask for something and you’re willing to make that concession, ask for something else in return. So there’s always this give and take. A win-win scenario can be created, even if you don’t even care about that second term. You just want to make it look like, “Okay, well if I’m going to do this for you, then I need you to do this for me.” That needs to be the constant line of communication and the constant thought process going back and forth with buyers.
And lastly, the big don’t that I want you to do, don’t let the ball bounce twice in your court. It’s a tennis analogy if you haven’t figured that out. But you know, tennis, you hit the ball back and forth and it can bounce once, and then you hit it back and it can bounce once, you hit it back. But if it bounces twice in your court, you lose. Same thing with offers going back and forth. So if you go ahead and an offer comes into you, so you’ve done your marketing, offers are coming in, you have three people, they send in offers, and you look at them all like, “They’re all too low. I’m not going to make any money if I take these,” counter back. Don’t get offended, don’t take it personal, don’t let them sit there and just rot and sit there and wait around for the next offer to come through because these three weren’t any good. You want to keep countering back.
So if you want 100 grand, they came in at 90, and it’s just like, “I can never take 90. I’m not going to make any money on this,” counter them back at 100. Counter them back at whatever number that is, but always send the counter back. Even if they offered $10,000 for your $100,000 property, counter them back to where you need it to be. Yeah, you just don’t want it to sit on your side. You don’t want that ball to sit on your court for too long. And if it comes over and comes back and they said that 10,000 bucks again, or they come up to 12, like you can tell that they’re not going to move or budge that much, send it back again. Just keep sending it back. Don’t ever let those offers sit on your desk. Always send them back something that they can execute. Because you never know what someone’s position is, you don’t know what their motives are, you don’t know what their negotiating strategy is, or what their negotiating style is. You just don’t want to be responsible for not getting the deal because you didn’t respond. There can still be a deal there, may don’t you be the person that decides that there’s no deal until you actually have a deal under contract, right? Or until you actually have that buyer under contract, I should say.
Okay. So how to execute the sale and collect your check. So either you’re going to have a purchase agreement and an assignment of contract, or you’re going to have two purchase agreements, one to buy, one to sell. Now, how do you close that? Well, I want to give you a nice big universal answer, but there’s not because every state it’s a little bit different. Some people use Escrow offices or Escrow officers to be that middle person that’s going to close the deal for you, some states use title officers, and some states use closing attorneys. They all serve the same purpose that is called something different in each state. And so it’s going to depend on how you go find that person. So what you’re really looking for, the name that generally covers them all is you need a closing agent, you need a closing agent. And what this is, it’s just a third party, an independent third party that kind of plays referee and make sure all the paperwork gets squared away, and everybody’s treated fairly, and everybody gets what they’re promised in that paperwork. Okay?
So how do you find one? You could go to Google, you could go to … I was going say Yellow Pages, but that’d be really showing my age and some of you might not even know what a yellow page is. But you can go to Google and research closing agent for your state, or a title company, or Escrow officer, closing attorney, real estate attorney. Do that for your state. And that’s one way you could do it, and you just start calling and interviewing saying, “Hey, this is what I’m trying to do.” Or go to your REIA Meetings, because you would have gone to a few by now, go to your REIA Meetings and just ask people who they use, ask other investors who they use. I think that’s probably the best way, the easiest way.
But with that said, it’s still not a perfect system. You might have to go through a couple before you find the one that’s going to be a good fit for you, that’s going to want to work in the way that you want to work, that’s going to say, for example, that will do double closings, or will do assignments. Go ahead and just … If the first person says, no, don’t stop there, just pick up the phone until you find one that works because you will find one.
All right. So once you’ve found one, what you do is you just take your paperwork, you give it to the closing agent, and you just kind of explained to them, “This is what’s happening. I’m the buyer in this contract. This is the seller in …” Oh, excuse me, “This is the …” You can say, “I’m the buyer and this contract, I’m the seller in this contract. I need these two to close at the same time. All the instructions are in there. If you need anything from me, here’s my contact information. Would it be okay if I checked in with you from time to time during this period and just make sure everything’s going well?” That’s it. You just have to give the purchase agreement all the instructions for the closing agent so they’ll know exactly what to do.
So don’t be too concerned that you don’t know how to do it or you don’t how to explain it to them. They’re just going to look at the contract, they do this every day, they’re going to know exactly what to do. But just kind of given the brief overview, “I’m the buyer in this one, I’m the seller in this one, and I need this to disclose concurrently and I’d like to use the C buyer’s money to close him a deal and pay my seller.” Or, “I got transactional funding coming in and here’s his contact information. We’ll fund on Monday, we’ll fund the next one on Tuesday, and we’ll close that way.” Or, “Here’s my contract, here’s my assignment of contract. Just make sure that I get paid. Here’s my wiring instructions and this is where you send my check,” or blah blah, blah. Okay? Just general instructions. And if you need any help on that, go ahead and just put that in our private Facebook group, or bring that question to our monthly mentoring call.
Yeah. The last step is really just to sit tight. Your job is kind of done. So you’re going to follow up regularly with the buyer, your C buyer, to make sure that they’re getting all of their questions answered and they’re going to be following through per your agreement with them. You can check in here and there with the closing agent, see if there’s anything that you can do to help and expedite and push this along much more easily. Can do that, but really it’s just kind of sit and wait until the closing date. And then there, the closing agent will distribute all the necessary proceeds to the appropriate parties.
So that’s it. That’s the follow through all the way to your first deal. So to recap, we talked about how to market your deal and find buyers. And when those buyers come in, you want to keep track of all of their information and whether that’s in your spreadsheet, or if you decided to start trying REI solutions, make sure you put all that information there because that buyer’s list is going to get bigger, and bigger, and bigger. And on your third, fourth, fifth deal, you might be able to sell it just to your list and not have to go through all of these steps. That’s how powerful that buyers list is going to become. And if you follow all these steps, that buyers list is going to naturally build. So don’t be too concerned if you don’t have one right away for this one, there’s still plenty of places to sell your property. It just gets a lot easier the bigger that buyers list gets. And the more business you do, the bigger the buyer’s list will get, just happens naturally.
So we talked about how to do that. Then we talked about how to feel the incoming buyer calls. We’re going to tell them what to do, we’re going to create urgency, we want to keep the possibility open, and then we’re going to always counter with our own contract.
The third thing we talked about was how to execute the sale and collect your check, so you just kind of give the closing agent a little bit of basic instruction, hand them the paperwork, and then you just kind of sit back and you wait. Check-in, make sure that everything’s going smoothly. If there’s anything that you can do to push it along, then offer that assistance, but really, you’re just kind of waiting and you collect your check-in. And probably, once you have that check, pretty sure that you can handle walking it down to the bank and putting it in your account.
All right. So, boom. Yeah. So the most successful students in our course are those that are quick to implement, quick to ask questions. You might still have a lot of questions here and around this lesson, and when you get there and you might be thinking, “Well, what I do there? What I do there? I want to do there?” Don’t worry about it until you get there. This is what I want you to do. I want you to go out there and find deals. I want you to go out and find deals. I want you to get under contract with sellers. bring that back here for the support and then we’ll untangle all the mess. That’s the hardest part, so just focus on that. Go out there, find the deals, and negotiate with sellers, get contracts signed, bring it back here, and then we’ll fix it and help you get paid that way. All right? So don’t worry about everything that happens next after you get the contract signed, just get the contract signed. Deal?
So you have access to the [inaudible 00:53:07] club through our community. You can use that to fill in the holes, to connect the dots. There’s a ton of information in this lesson. It’s very common when people ask for help, that I’m going to refer them back to a video. There will be one more lesson that while we’re recording, it will be kind of our FAQ lesson, because I’m sure that there’s things that I missed that I’m taking for granted, that I kind of breezed over because I just feel like everybody knows this, but I understand this your first deal and it’s been a while and I might’ve missed something, and I want to make sure every single hole gets plugged in and every single dot gets connected. So there will be one more. If you’re watching this right when we launched, it’s probably not there yet, but if you’re watching this later on down the road, then it might be there. So look for that for support, because if you have a question and it’s answered there, that’s where we’re going to direct you.
And then, we’ll answer and clarify anything else in the Facebook group. Please, inside of the Facebook group, no hypothetical questions are allowed. And really, hypothetical questions mean, they’re a symbol or a sign of fear that you’re scared about something and there’s just no room for it. There’s nothing to be afraid of. And second thing it’s really, you overthinking this. It’s really simple. You don’t have to overthink it. You just go out, you find a seller, you get under contract, you find a buyer, get under contract, and then go tell the closing agent, this is what I want you to do. It’s really that simple. Okay? So don’t overthink it. And just remember to move at the speed of instruction, and at the very least, you just got to stay ahead of your negative thinking, you got to stay ahead of your doubts. All right?
And then, you’ll see around this here, probably below, I’m not sure because we haven’t built the website yet, but there is a link here somewhere to our monthly mentoring call and the schedule there as well.
Alright. So that’s it. And whenever you’re ready to go faster and further, there’s a few ways that I can help you. If you want to go and take on the full membership of The Epic Pro Academy, there’s a link for that below. I’ll just kind of tell you what’s in there that is not in this course. [inaudible 00:55:13]. Here it comes.
So The Epic Pro Academy addresses all three pillars of the REI Ace framework, and we pretty much-covered everything. There’s a lot more in there with regards to lead generation that you’re going to find. Pretty much all the conversion is taken care of it in this course. We talked about the flip a little bit, but if you want to go into more of the creative acquisition strategies, you want to go into buy and hold, you want to go into seller financing, you want access to the three option letter of intent and the calculator that we use to create it, all that’s inside of The Epic Pro Academy. If that’s the next logical move for you, then there’s a link below to do that. There’s also a link below for The Epic Intensive.
Yeah, it’s been my pleasure here meeting you and working with you virtually, but I’d love to meet you in person. So you can click there and you can be my guest, compliments of me. Come and be my guest and let’s work together face to face, all right? And then, yeah, if you haven’t taken advantage of the REI Solutions, 30-day free trial, that is below as well. We have amazing support around that, a huge video library. We do a weekly web class on that to answer your questions. It’s got your phone system in there, it’s got your texting system in there, it’s got your database in there, it’s got that analyzer in there, it’s got project management, it’s got your autoresponders, all your email autoresponders that’s already been typed out, that’s already done for you. It’s really plug and play. And there’s one other thing in there. It’s got the phone system. Oh, it’s got unlimited landing pages that you can go build for buyers and sellers, you can build websites. It’s all there underneath one umbrella. That could be your whole business. It could be your primary business expense and keep you really organized and efficient. So if you want to take advantage of that, you can do that.
And then the other way that we could help is through our business acceleration session. If you’re really looking to go fast and build a significant business out of this, whether that’s a part-time business or a full-time business, go ahead and you’ll see that link below. Share some information with me about your business and what you’re looking to accomplish, and then I’ll just make sure that you get all the details there. Alright?
So I think that does it. Yep. So, yeah, all the information on moving fast and further, that’s down below there. It can all be found there. And that’s it. So this all works. It all works amazingly well. It’s how I built my whole business. It’s how I built Epic, just like this. And it’s going to work for you as well, but only if you work it. You’ve got to want it bad enough, okay? It’s got to be that important to you. Be consistent with the right activities and be persistent with those activities, and there’s no reason why you can’t absolutely crush this business and take advantage of everything, and all the benefits, and all the perks that real estate investing promises.
All right. It’s been a pleasure, and I will see you in the support areas. I’ll see on the [inaudible 00:58:11], I’ll see you in the Facebook group, and hopefully, I’ll see you in person at the next Epic Intensive. Take care.
Alrighty. So that’s it for today. To your success, God bless. I am Matt Theriault, living the dream.