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How to negotiate a deal & make $10,000 | Wholesaling Real Estate - YouTube
Channel: Max Maxwell
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do a roleplay kind of yeah you close
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that I kinda wanna do a role-playing on
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how I go into a house so I'm gonna set
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this scenario Tommy calls like he calls
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our he sees our website he calls and
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house is worth 120 right and he says he
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wants seventy five thousand okay and he
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owns it free and clear and you inherited
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this property from a family member right
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so this is how I come to a house so I we
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in script this but I'm here but we'll
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knock on the door yeah how you doing sir
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yeah nice to meet you nice look at how
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she got here it breaks my heart a lot of
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memories in here but it was time to go
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son did you live in this house you know
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I didn't live in here but it was my
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heart's house okay and you have a lot of
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memories there like family cookouts
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birthday party so stuff yeah and I know
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what you mean it's kind of hard and
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sometimes it's a commerson when you just
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a property falls in your lap yeah right
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well let's go around and look at let's
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go around look at it well you can see
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the water stains here yeah that's not
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that bad though yeah I mean I guess I
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mean it's not that bad but obviously I
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mean that's terrible yeah yeah okay I
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mean I want to be upfront with you yeah
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yeah I want to be real with you though
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so but you know I mean besides I think I
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think it's a pretty good house now I
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mean you know we got a little stuff here
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and there but I mean you can see here
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the floor looks pretty decent okay
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yeah I mean it's it's okay it's outdated
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a little bit the kitchens look outdated
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the baths look outdated now remember
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guys the house is worth 120 right it is
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workable now let me tell you what we do
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right we're a group of four investors
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local here in winston-salem and we buy
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houses from mainly to two different
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reasons we'll buy a house and we'll fix
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it up a little bit well added to our
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rental portfolio now the second one
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would be doing a lot lately
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my house completely fix it up make it
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monetized right 2018 and we try to get
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it on the market in the next six months
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right so this house if you had if you
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had to take it you know guess what do
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you think this house is good for our
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rental portfolio or what you think we
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can flip this house I could see a family
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live I think you're right I think you're
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right now you know I think on this
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market I think you know we can get
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probably 109 pushing it you know yeah
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which Zillow was correct all the time
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you know but this is about 109 pushing
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now if we do push the envelope and put
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granite countertops in which is not
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normal for a house this price you
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probably get a little bit more but you
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know I got to compete with other houses
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that people are putting 120,000 into
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buying random house so I got to make
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this house look brand new right but you
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know what I I don't think you've run out
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of options you know I think if you want
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to get the highest dollar I think you
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should list this with the realtor yeah I
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think you well I mean you want yeah but
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you want to get the most out of this
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property right yeah yeah I mean listen
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if you take out a loan for maybe thirty
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forty five grand which I think it's
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gonna take you fix it up in six months
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you put on live here I understand we're
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about people breaking in I don't want it
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you know well here's the thing I'm an
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investor right and and my thing is based
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on numbers and that I just don't think
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we're in the same page when it comes to
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selling this house and it's fine you
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know what I go to a lot of houses and
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when I leave here I got two more
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appointments you know it's it's kind of
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hard to say I would what do you what do
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you what do you need out of this deal I
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mean what are you comfortable what's
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what's the perfect scenario for you what
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are you gonna do with the money yeah but
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here's a scenario and I understand why
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you want 80 and makes sense 109 there's
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a big discount but Frances and I are
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gonna go in this house so we're gonna
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spend 30 maybe 40
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thousand dollars to get it to look like
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a house from - now think about this
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you and your wife are driving around you
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got a 115 thousand dollars to spend you
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want it to look like a house in 2018
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right so that's kind of what we're up
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against when we're flipping properties I
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wish it was easy as on TV but it's
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really not that easy so $80,000 is not
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gonna put me in there because think
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about it from 80 to put let's just say a
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minimum I put 30 in it I'm at 110 so
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there's no money for us that's why I
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think the best option for you is maybe
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you get that hard money loan or you know
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I got I got phone numbers of about five
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or six Realtors that I come here and
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take a look at it I don't I don't really
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want to insult you I kind of want to
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find out what is your perfect scenario
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you know tell me tell me what you got to
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have and here's the difference between a
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lot of people I buy houses right so you
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know the thing is I'm not gonna the
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offer I give you an offer we just decide
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on its what you're gonna walk away with
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I'm gonna pay all the closing cost okay
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right yeah the number we agree on that's
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the number you're gonna walk out the
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attorneys office - a couple hundred
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bucks for some excise tax fees that you
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know I can't take care of for you you
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know here's a scenario how it works so
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you and I agree on a price I'm gonna
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bring a hundred dollars escrow to the
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attorney's office this this that meant
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basically I hire him at that point he
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starts a title search probably takes him
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anywhere from seven to ten days then we
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get on this calendar I say all together
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three weeks but you know on the contract
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I like to put 30 days because I've lost
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a property because we had weren't able
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to get on the attorneys calendar fast
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enough so I put 30 but we're probably
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closing 20 I know I can I know I can
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and it's cat and you know listen you
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never have to come back here you don't
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have to take anything out of the house
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you don't want yeah do you leave
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anything you don't want and we'll take
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care of the rest okay so less than 30
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days we're done off do nothing it'll be
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the smoothest transaction you've ever
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had and like I said we do this 10 times
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a month if we can get it done quick I
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think I might be willing to do
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5055 I might not be your guy and and I
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and I don't want to insult you
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I don't I don't want to insult you just
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because I got to put 30 40 grand in
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there and you yeah I'm at 90 then that
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leaves need much room and I know you're
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thinking it's easy but I'm I'm really at
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about 40,000 thank you 42
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it'll be tough it'd be tough but you
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know what I get it done let's do 42 all
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right so now you guys seen that that's a
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hundred it's a hundred and twenty
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thousand dollar deal but here's what I
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want to explain to you I didn't give him
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an offer until I knew he was ready to
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sign the contract I gave him every
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option either house I didn't buy it he
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convinced me to buy the house and that's
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what you don't want to go into a house
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is a desperate buyer right you that just
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changes I gave him a scenario listen you
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can go list it I can get you a guy for a
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hard my kid getting a hard money loan I
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can get him for a hard money loan
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there's all these other options that he
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has and he's upset because he called me
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to get what an offer I got to care it
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that I want to hang over his head and
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I'm not going to give up that carrot too
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early in the conversation I made him
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make three offers says he went from 80
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to 50 I said unless I'm at 40 I'm good
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at 45 on this property without even
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doing the math I already know right so
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that is the difference in between going
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in a house now you know how to talk to
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somebody huh
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well yeah I know numbers but you should
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have already done your homework before
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you got here right so this house do do
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the math so I bring our calculator this
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house is one hundred and twenty thousand
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dollars remember we talked about that
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120 but I told me was 109 so 120
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remember I on this number and I sell on
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this number so let's talk about what we
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really need to be at you're at 120 right
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you're gonna minus 30 percent what does
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that leave us guys 80 so we're the same
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okay
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thirty thousand rehab how much does that
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leave us
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10 grand and profit I got it for 42 and
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I'm gonna call him and ask for a
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reduction in six days you see what I'm
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saying
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I didn't have to think about that and
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that is how you go into a house as a
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confident buyer that I don't need this
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house
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but if you
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you want to sell it I'm the guy to buy
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it right because the prep conversation
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for me coming here is that I'm not here
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to look at houses I'm here to buy a
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house you want to show your house put on
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the market a lot of people come looking
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through it I don't want to come and just
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see your house I'm coming to buy that
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thing that's how you close deals it's
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called the going-
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right because most people would have
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going in there and they would do what
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they offer then they started negotiating
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then you lost if you start negotiating
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with that guy at 80 grand you've lost
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you know you need to be at 45 you're not
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gonna get somebody from here to there I
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started negotiating when he got to 50
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and I felt that he was he was so
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desperate he wanted to sign that
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contract I threw out my offer I threw
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out 40 knowing that if he said 45 I'll
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take it and he said 42 and I didn't
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argue with him cuz he won you see that I
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gave 40 he said 42 he walked away happy
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baby I got him he going to Carson baby I
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got him
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he offered me for that 70 42 and he said
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baby I got it right so he won he just
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made an extra two grand
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I made the next of three right so that
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is that's that sells right and you guys
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are back there selling cars
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I hope they taught you that you never
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want to push the sale you never want to
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push the sale you always want to be
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behind you ever will always want to be
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behind the person you never want to push
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them to a to a sale all right I don't
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need this house that's my attitude
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remember it's not that bad sounded the
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my might my money came from I got to
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update the house yes your cabinets look
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great but their 1984 cabinets I got to
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put all white ones in here and I'm and I
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thought I flipped the script on his
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perspective imagine if you and your wife
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were shopping for 120 grand
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would you buy these cabinets I got to
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make them look like brand-new so yes
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your house is not in disrepair but it's
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outdated
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get him every time I kept telling people
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because he that 80 he threw out there
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when he was on the phone that was BS he
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180 if I gave him 80 he would have been
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happy but he knows because he read the
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website there were investors and and 109
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to 80 and you see how anchored him at
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109 that's called anchoring
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I made him agree we agreed see if you
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don't agree on the starting price then
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you'll never end up at the same ending
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price because if he thought the house
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was 120 and I said 109 were 11 grand
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apart my offer would have had to been 52
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for it to make sense so that's it that's
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how you go in there and close the deal
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you
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