Writing an escalation clause, Finding sub2 deals in 2022, and Beating imposter syndrome | Live Probate Real Estate Coaching

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Episode 41 of Estate Professionals Mastermind - Live Probate Training with Certified Probate Experts

Full show notes, time stamps, video stream, and resources: https://probatemastery.com/writing-an-escalation-clause-finding-sub2-deals-in-2022-and-beating-imposter-syndrome--live-probate-real-estate-coaching

Watch this as a webinar on YouTube: https://youtu.be/Q8TNIm5tAB8

Key Takeaway: You can use probate leads for long-distance real estate investing!


0:00 Dealing with imposter syndrome and getting focused in your probate business (Productivity and Growth)
20:00 Why did you get started in probate real estate? (Personal Growth)
21:52 How to find a land developer? (Building a Team)
24:02 What to say when you can’t answer a question (Real Estate Sales)
29:36 Using real estate market predictions to handle price objections (Presenting Offers)
30:56 Start long-distance real estate investing with probate deals (Remote Investing)
32:17 Consumer behavior as an indicator: What a housing market “crash” could look like in 2022 (2022 Housing Market Predictions)
36:35 How to find sub2 deals in 2022: List stacking in Propstream (Finding Motivated Sellers)
40:47 How to get your offer accepted on a house: How to write an escalation clause (Real Estate Escalation Clause Example)
44:39 Shifting demographics: Who’s moving? Who’s buying the most real estate? (Housing Marketing 2022)

Learn more at www.probatemastery.com

Transcript

0:04

We'll jump right in and anybody have anything they want to share anywhere you're stuck. Anything that's working out for you. How can we help you today? I was in a program a while back. Yeah, you're in Northern Virginia. I'm in Laurel Maryland in 20, 20, 20, 21, it had, didn't do very many deals, laid back a little bit off of probate. So I'm just retooling, restarting. I'm in the course, the newest one that you have, but for someone kind of sorta starting all over, what would be your advice? If I remember correctly, you're part-time right. You have 15, 20 hours a week for agency? Your memory is superb. I was, I just retired on the 31st of December. So now I'm like, okay, now you have the time. You can't say, oh, I'm just so overburdened. I'm just overwhelmed. So I'm really trying to get a handle on this, get my vendors together and that sort of thing. But yeah, you're correct. I used to be. One month on retirement now the real work starts. Okay. So tell me where you're at. Are you confident in the offer that you had when you were active? You know what I think part of the problem was I never did get my vendor lists really hashed out. So I always felt like, I was offering something I didn't really have. And if somebody needed someone in particular, I would then scramble in the background and, go to the home advisor or task rabbit, or, something like that to try to get the vendor, they said they needed and ran into a little bit of a problem last month with that, because I tried to get a clean-out guy and the typical one I have used, I just haven't heard from him. So I don't know if he made it through COVID or maybe, he's not here anymore. I don't know. So I knew somebody knew I wasn't that familiar with, and that didn't turn out so well. So I'm thinking I really need to hash out my vendor list and be fully aware of who I'm recommending, because it can make you lose business as well. For sure. Don't let I complete vendor list get in the way of you starting or restarting. You definitely want to make sure that you've got a contractor you can trust to clean out true crew that you can trust. At least one probate attorney that you can lean on. Just the ones that are more commonly used, like bill gross. And I don't know if you were here last week, but in three years, he, it took him three years to uncover his first deal where he had to do this, but he had to use eight vendors, seven or eight vendors on one deal. It's not like you need to build your dream team before you can begin. Just make sure you get the most likely ones that you'll need. Yeah, like clean out crews and in your area, like where it's very populated, you can always fall back on two guys in a truck or college hunks moving junk or, franchises. It's typically more expensive. Yeah. But they're insured and they're a legitimate business. So for a lot of us in smaller markets, we can't really fall back on, on the franchise brands, but you can, so if you get in a pinch, just remember that, you can do it with a more. Professional service. So all that said Katt, could you drop Belinda the link to the handout? We actually just made a handout. That'll help you work through that monster of, the team that big mind map that I show you in session two. I would say go back through session two, figure out who your key team members are and make sure you have those in place. A lot of folks get stuck, right where you are. They're like, oh my God, I know all of this, but what do I do first? And honestly the first thing that you need to do to get confident on your own offer, because it comes through in your copywriting, your phone calls, like everything you have to believe, you have to believe that they're better off hearing from you than not. And I'll just go right back to my question. Do you believe that? You know, When I had the actual vendors in place and I felt like, yes, I truly can promote a person who can do clean out. I can come over, I can provide options besides just maybe selling the property as a realtor. So at one point I did, but I, as I started to not have vendors I started to lose a little confidence in what I was actually offering. The test. I usually put this through let's assume that a $30,000 cashier's check on your broker's desk for them to release that you have to come up with a contractor and clean out crew, a social worker and a senior moving company before end of business. Can you do it? Oh yeah, absolutely. Proceed with confidence. Yeah, it's just thinking. If the dollars were there, you would find a way to get it done and find the people you need to move mountains. You just said yes to that. So proceed with confidence and believe that you can get that in place quickly in short order, if you ever need it, don't let that be a hurdle. And then from there is action. So once you believe in your offer, the next best thing you can do is put yourself out there because that self-talk, that's usually not so generous to us is saying, oh, they don't need you, or they don't want this. They're going to call you an ambulance chaser. And the very fortunate thing in this niche, you, the people who do need your help are usually happy as hell to hear from you. And if you can knock out 10 phone calls, you'll find at least one person that just thinks you're the greatest thing ever. And that positive reinforcement will fuel you to make the next call and the next. Okay. So step one, get clear on your offer and get confident on your offer. Step to take action, pick up the phone and have a few conversations and then adjust from there. Are you currently getting leads? Are you looking at working your old list? I haven't been on the phones for awhile and I've been looking at various systems. And of course you always get the ones that say, oh, no more cold calling, no more this, no more chasing leads, have them call you. And you're doing mailers and this and that. So I don't know you in this field with this target niche, if you can even get away from that. Cause you have to develop some type of rapport with the person seems to me. You're going to have to get on the phone. The only alternative. To build an audience. I don't know if you've been listening to the recordings of these calls. It's been a while since we discussed it, but one of the really great ideas that's come out of this group in the last six months or so is creating a community Facebook group. So it's not just for people in probate, but for anyone in that end of life transition. And then you get your vendors on deck and they become admins of your group and they have ownership. Then each week feature one of them. Yeah. My probate leads as a Facebook audience. And as a matter of fact today, I just did a recording with my probate attorney, and put that out there. Then I'll have 'em the marketing team to show that to them. So we're talking about two different things. That's good. The other ad that you can run for that audience. So you already created the audience. Now create a Facebook group, put a nice brand to it and then run an advertisement for them to join your group. Oh, I see. Okay. And then you have a captive audience and it'll take them nine to 12 months to proceed through this most folks do so for the next nine to 12 months, Facebook's algorithm will feed them organically content do you post in that group. Interview your vendors, interview other people in the space that might not necessarily be a vendor, but help people through the struggles of, the end of life transitions. And just have like content going on into that Facebook group that gets fed to them. I'm not saying don't get on the phone. I'm saying this is supplementary. If you really want this to work, get on the phone. I saw bill gross had a hand up. Yeah. I was just going to rephrase some of your coaching in the past. You're answering the question and I forgot her name. The lady that just spoke. And I would say rather than having a Belinda. Rather than find the dream team, she is a dream team. You asked the question, she gets the job done. So she has to own, she is. The dream team members are her current list and list we're going to create. You hit right on the head she's got to phone some people. The second is look at finding these resources not as a problem, but really as a lead generation opportunity. Because the person you're calling to solve the problem owns a house, wants to buy a house, so when we come from service, that just creates more opportunities for us. So I would not wait, like you said, a hundred percent. I get this all the time. You want to wait until they build out their list. It's the opposite. Get started with what you have. You'll get somebody's problem. You'll solve it. You added two things, you solve that problem and you find a new vendor. Yep. So see your hand up, Stanley. Hey Chad how are you this week? I'm a little stressed out. How about yourself? All right.,are you stressed about your business? I was speaking with Gio, him and I role-play on Wednesdays. He's actually in the call right now. One of the problems that I'm having as I'm speaking to the personal representatives is I told them about the imposter syndrome that you spoke about. And I will say things such as we have a team, we have this, we have these resources and as I'm speaking to them and I'm helping. They're saying. Okay, thank you, Stan, for what you guys are doing for your team. And it's in my mind, I'm like, it's just really me. I'm the point of contact. I'm just I'm quarterback in everything. So how do I get over that? Listen to what Bill Gross just said, you are the dream team. Like you're that filter you're, the medium between them and all the services they need. And you're going to go do the work. Maybe you haven't done it yet, but if the need arises, you're going to go do that work and find them the options and come up with the best option. Aren't you, of course, then you're not full of it. You're going to do what you say you're going to do. So because you haven't gotten around to it. It doesn't make you a liar. You'll do it. I think you'll get it done. So would you recommend substitute in the word team with I have partners or it's the same thing? I like team because it paints this picture of a vertically integrated solution. That's under one roof and people like that's the way I've always conveyed it. And people would be like once, once we came down off the business conversation and that was tapering off where we were about to get off the phone, people used to ask me all the time, where in the hell are your offices? You guys must own like a Walmart sized building because in their mind's eye, they were envisioning all of these businesses, all these services in one single building, like in a physical place. And that to me was like, all right, that's the image that I wanted to project. I want it to look like this big vertically integrated solution, but not be responsible for all that. Gio go ahead and jump in you're part of this feel free to unmute. We talk about is, or we don't talk about is inaction or just trying to do everything ourselves. And in terms of building this vendor team, I think it's a great opportunity to get in motion to be able to kind of learn the business. If you're going to be targeting five attorney offices that you want to partner with, you're going to end up talking to these folks and learning something you didn't know the day before or a trash out company that, that might've done a trash out And they need to get it sold quickly. So I think in terms of those specifically starting new, it's a great way to just, have a conversation to get yourself prime to start making calls to folks. And and what better way than to, get a warm lead from one of these vendors. And the opportunity does happen. If you're in motion and talking to them. Yeah, it is a good point. And it's usually the first place that you get to practice your pitch, right? Your USP. You're selling yourself to that vendor. You've got to sell your credibility to them. And frankly, the consequences are probably higher, but most people perceive them as lower. Most people are more willing to approach a vendor when they cold called. And they are a prospect when the vendor relationship might be worth more over 20 years than that one deal that you'll, you might do as little as one deal with the prospect. Anyway, that comfort can work in our favor where we can go B to B practicing our USP. Hey, my name's Chad, I've got a team of local experts here in this market. We help families going through probate, but I've got one seat that's open and I'm really looking for the right fit. Then it gives you a chance to really learn how to articulate your value statement to other professionals. So it's a great proving ground. That's a good point Gio. Stan. I'm feeling, feeling good. I'm just a lot on my mind really, but I'll, I'll get it. I'll get it. And, um, I don't. I don't know. What are you expecting to hear? What are you, what do you want Usually, when you say comments, like I got a lot on my mind without specifics. There's something hiding in there. No, I was just things, personal life, things that I'm trying to do aside from the whole probate thing. Can you separate those things or is the personal load too heavy? It's right now, it's me trying to find a schedule in which everything will fit. That's overwhelming right now. So you don't have time to prospect. Oh, I definitely have time to prospect, it's just overwhelming. Just thinking of the sheer amount of things I would have to do. In addition to that I believe I told you last week that I'm taking my pre-licensing course and it starts in March as well. So I have to try to fit that in the schedule. Again, I'm going to let the fed coach you on this. Cause he just showed up, Fed, I'm blindsiding you 30 seconds after you jump on. Fed fought this fight back in the summer. What advice would you have for Stanley? What being over overwhelmed with too much, too big of a load taking one step at a time and just realistically just understanding what you want to create in order of importance and then attack one obstacle at a time. And then once you can start managing one of those things and you feel like you can add more to it, you can. I think reading who not, how is extremely important that taught me how to better take care of a situation like that because you start realizing that you're spending a lot of your time doing stuff that shouldn't be on your schedule that other people can do for you. They'll happily do it for you. They'll probably do it faster than you and better than. And it'll give you more time to make a lot more money, to hire a lot more people and to be a lot more efficient. It's easier said than done. You kind of have to catch yourself sometimes like your ego gets involved and your ego says, oh no, but I can do it. Yeah, but you shouldn't be doing it. there's a big difference between, could you, for sure you can do it, but should you be doing it? That's the question you have to ask. And once you start going about it, that way, I think the right people start showing up in your life. And a lot of times, people even such as Chad and such as David who are on this zoom, these are people that honestly, I feel like they could charge you whatever they want an hour and people would pay it. And they would say, that's it. I say that all the time to people even who are asking about how to improve their business. I tell them to come to this to do this course all the time. I hope that answers a question, Chad I can elaborate as much as you want, and Chad was the one who recommended who not how I'm extremely grateful that he did that because you start realizing just how many things you're doing that you shouldn't be doing and that don't think the dollar amount that it costs. You think about what the return on investment is going to be. So for example, to give you an idea, I hired this girl now who does all my marketing for me now. And before I was spending one hour, two hour, three hours designing it. What am I doing designing? I'm not a designer. It came out nice, sure. Cool. I got complimented. Cool, pat on the back ego rub. Cool, fine. Did it make me any money? No, actually lost money because I could have been, let's say three hours. Let's say each appointment is 30 minutes. How many appointments? Is that, that I missed that could have resulted in a 25, 30, $40,000 commission. I'm not saying it's all about money. It's just more about understanding and when you feel overwhelmed, it's okay to timeout. Take a step back. And pivot, you gotta pivot to understand like, all right, let me go on bird's eye view and see what's on the playing field. And then move the chess pieces accordingly in a way where you can keep moving forward and not staying stuck. I hope that analogy made sense it did in my head, but maybe it made no sense to anyone else. that's helpful. Thank you. Fed had gotten to the point to a point where he was just completely lost and frozen in inaction because he put too many balls in the air. He was too aggressive at his approach, and that's why I, it's sometimes better to hear from your peers than it is from me. I do want to challenge you with an exercise. I want you to start a Google sheet or an Excel sheet, and I

want three columns column a is: 15:31

task that needs to be complete. Column B is this task dollar productive? Meaning is a direct result revenue in the next 30 days? And then column three is, do I want to do this? be really honest with yourself. Say, this is the overwhelming list of things I'm facing. The ones that are dollar productive are the ones that are prioritized. Fed talked about how he had to prioritize, but he didn't say what, criteria that you use to make it a priority. And I would say for you, I hear stress about money and the very first couple of sentences that you shared. So I think you should lead with revenue and focus on the dollar productive activity and then your second pain point was time. Do the things that are dollar productive that you want to do. Next, you delegate the things that are dollar productive that you don't want to do. And lastly, delegate the things that are not dollar productive that you do not want to do, but are still necessary to keep you moving forward. Those chess pieces that the Fed was talking about. So you'll lay the pieces out on the chess board, which is a spreadsheet in this case, and it'll help you see what, where your focus should be. Chad, can I chime in on that real fast? Okay. So I just moved. So that's why I'm still filling it out. It took me a little time to put this up. Stan, if you don't have this, doesn't matter what industry you're in. You can make it your own. I have this for my real estate practice. You'll see. I have six boards and wherever there's a gap, that's where I know where I need to dedicate time. So this'll, for example, shows leads, source, motivation, timeframe, just whatever you need. Active listings, active buyers, pending closed, and to do lists. This is my top three every day. And unless I go through that through the to-do list every day, which means I have to follow up with all of my leads, then my day's not over. Have to follow up with. And cause because I think Chad brought up a super good point. A with your, as far as money goes, don't focus too much on money and on the dollar amount. But instead what the return is going to be. I know I said that earlier. I think Chad was saying it too. That's super, super important. And it's super easy to freak out about these things, but we're all here to help you. So this organizes your day because we all say, oh, I'll remember it. I finally put these up yesterday and I realized, I thought I had two buyers that I've been working with. There's 13 people that I have not been consistently following up with and that's my fault. So if they go to someone and they buy something with some, somebody else, that's no one else's fault, but me, it's not them. It's not them being shady. It's not them being anything. If I show them that I don't remember about them, they think that I'm too busy and therefore it becomes my fault. Okay. This is, you have to also take accountability for your own stuff. You know what I mean? And I dunno, I just think that's super, super important. Fed when I challenged you to commit to a CRM, I didn't think you would use the wall. No, I'm doing that too. It's just that this, if you're doing it properly, this changes every day, because the lead turns into a listing or a buyer turns into a pending and an active listing that turn into a pending, the pending eventually turns into a closed. Okay. So it's just that, you know, the saying out of sight, out of mind, If it's not in my face that I'm seeing what's going on, I'm going to go to bed and I'm gonna be like, oh crap. I was supposed to look for that for Chad. That tells me if I did it for you or not. And before going to bed, I make a to-do list for the following day. And then when I wake up, I look at that to-do list. That's way, way too long. And I say, what are the top three? If I have to get on a plane, it's 8:00 AM. If I have to get on a plane at noon, which three do I have to get done? And then I get those done. If I have more time to get the other things done, then I also include this. Thanks for sharing that. Thanks for letting us see your wall. Geo. I think he had something to add. No I really appreciate Fed, you sharing that. You sound a lot different than you did 12 months ago on the calls. So, uh, Obviously you're putting systems in place that help. And I think also just adding, this is the, the ground floor that you're looking at, but also building a business plan, a simple business plan would help Stan. And we talked a little bit about that in terms of just, what is going to be your target and then putting in motion, the actions that will achieve those targets. And I think oftentimes, and I get stuck sometimes when I'm doing things that are relevant to my business plan, to my goals. So I think that's something that's important to, even if it's a business plan for the week and how are you going to achieve those goals for that week? So that, and what actions are you going to take? Stan, one more thing I'm going to add, and then we'll let you out of the hot seat, so fed, referenced the book who not how, and that was written by Dr. Benjamin Hardy and co-authored by Dan Sullivan, inspired and coauthored. They just released in the last couple of weeks, I think on two or three calls ago, we talked about another book called the gap and the gain. And I think that's something that you can also benefit from because you're measuring the gap. You're saying, this is how I define success in this niche. And I'm coming up short and that self-talk begins. Your ego starts to say on a stand, you're not going to do it. You can't do this, man. You're going to run out of money out of time, out of like, when you can also measure the opposite is the gain like where you came from. So when was the first time you considered this as a specialty I will say many months before I took probate mastery. And I believe I completed the course and November. And how much more capable and confident are you now than you were many months ago when you first thought about this man, a thousand percent more confident, that's what you need to be measuring. So it's essentially the same as gratitude, right? But don't forget to look back at all the ground you covered. When people are climbing Everest, it's sometimes helpful to just turn around and realize you're almost on top of the world. That last quarter mile was a son of. But look at what's behind you. Look at what you came through. Camp one camp to camp three, camp four, and you progress through that. And looking back down that mountain and realize, I'm almost at the top. So don't forget, especially when you catch yourself being in the gap, when you catch yourself, measuring yourself against your future self, sometimes that's healthy. But when we're in like a negative state, you should be measuring yourself against who you used to be and pat yourself on the back. Cause you come a long ways. agree. I agree. And who not how is a book that I definitely need to get my hands on. I was talking to Gio about, whenever we're speaking with personal representatives, some of them, they have questions that we have no idea how to answer. For example, in our role-play this month. With her Vic who was also on the call, I throw out an objection of we're looking for a land developer. If a PR was to throw it out to me, I have no idea. Okay. So let's think it through. It comes down to creative thinking, critical thinking who do land developers do business with? Usually home builders and then the home builder hires the agent. All right. So if we, and where do home builders congregate? Almost every manager MSA in the country has a homebuilders association. So if I had to find a land developer in a town where I knew nobody by the end of business today, my first contact would be at the local home builders association. I would try that in person, if I could. And then I would say, Hey who's the best land guy that brings you guys deals and, or, who's the developer that bought the last three pieces of land that come through your association. And then I would go talk to those guys and I would say, Hey, who did you? Who'd you buy that from? Okay, can you, do you mind connecting me? And you may or may not have to grease his Palm. Probably not find a way to provide value to them. Hey, I'm, I'm in, I'm getting my license. Teach me more about your development. I'll bring you some guys. So that's just one example. Another example is pull up a tool like propstream or go to the county courthouse and look for anyone who has had two title transfers on a piece of land within a one-year period, ideally with vastly different prices. Just think outside of the box, like I needed this person, where would they hang out? Who would they associate with? Who did they do business with? Go find those people and they'll lead you back to the one you're looking for. It's never ending, man. That's what I'm trying to show you. I couldn't possibly teach you every way to find every person you're ever going to need. Like one of these days you'll need a fine antiques dealer. One of these days you'll need a firearms guy. Someday, you're going to need a gold and silver guy. Like those are things we don't really talk about in the course. You're going to come up with it like this baby boomer generation. They have a pretty eclectic collection of things. And sometimes you come across$43,000 in Lionel trains. Like Jim did down in Florida. He didn't have a train guy, but he does now Chad, to, to your point. When you don't know how to answer a question, in my opinion is you ask more questions. So tell me more help me understand, so they're saying I want a land developer. Okay. What's the end goal? I want to build this. All right. What's the timeframe. What kind of team do you have to set up? What, I don't have a team. I, ideally, how long would you want this to take? Do you have financing in place? This is just so you could get a better understanding. And then once you have a clear picture, then you could say I have a couple of people in mind. I'll reach out to them and I can get back to you by the end of the week. How does that sound? Does that sound fair to you? That gives you time. You have all this ammunition, and then Chad was saying, you'd go to the builders association and you have all this ammunition where you say, this person needs this, that. So you're not wasting anyone's time. And even when you go to the builders association, these people see that you're not there just wasting their time. You did your research and they'll take you more seriously. The second point was Chad was saying, one day some guy needs silver. What? I need all this stuff. So I just did something in an area that I'm farming. We did a clothes drive. Okay. And what that is I door knocked the entire neighborhood right after the holidays for right. Yeah. After the holidays. And I made a card and I said, dear neighbor We're looking for, gloves, hats, socks, whatever that you may not need. If there's anything you no longer need and you wanna dispose of, you can leave it in a bag and leave it outside your house. We'll donate it to the less fortunate. There's a great response, right? In the card I asked for clothes, socks, hats, all this stuff. I've had people saying, Hey, can I give you VCRs? Can I give you TVs? Then through that, I met someone who does a food drive in the same neighborhood. Every Sunday, I went to go visit them and they were saying, Hey, I have a ton of furniture that I need to get rid of. Can you take that as well? So to Chad's point, I didn't go in there knowing that I'm going to take furniture from people. But now I need to find out where that can go. But at least you took a problem. Headache away from them. And at the same time, not only did you create a new contact, which could be a new form of referrals, but you also got you, you came as this problem-solver. So you just have to constantly be open-minded and things will just, that's why it remember, we were saying with who not, how you just start the right people start falling into place. You just have to communicate enough and well enough. And the right people will come. You could be on the zoom call and someone could private message you and say, Hey, do you mind if we jump on a call and all of a sudden it solves a ton of problems that you had, but you're helping them with a conversation. So thanks for picking up my slack Fed. So Stan, like I went directly to the solution and Fed noticed that I left the role-play like, thanks for that. That was really sound advice. And that he's absolutely right. Ask more questions. Especially if you don't have an answer, it's probably because you don't have enough information, don't feel embarrassed about that. They'll get more information. that was a really important part of that advice that I skipped over. And I wouldn't suggest anything different. He's exactly right. One of my first questions will be well, if you guys think that the highest and best use of this as a subdivision, would you rather partner with a developer or sell it to a developer? Because I have a way that I can structure this and create lots and lots more equity for your family? It's just going to mean probably you'll have to wait another six to 12 months. What's what sounds best to you more money in 12 months, or just getting this done. Okay, great. So that's just one question that my mind would want to know, because in my experience you can take a couple hundred thousand dollar vacant piece of vacant land and turn it into a couple million dollar subdivision. Why not pass some of that to the family? And it's also going to show them, you're really thinking outside of the box and in their best interest.

But then Fed: 27:54

it's perfect advice. You go walking into the homeowner's association with an order. Okay. I got a deal for a guy. I just need to know which guy is the right guy. Who should I be talking to? I actually used the same approach yesterday. I didn't feel like making my calls. I'll be completely honest with you on my I'm not doing them today, but I did them. I had a coach, always told me do what you don't want to do when you don't want to do it, at the highest level. I'm like, all right. I heard them in my head telling me that it was seven o'clock at night yesterday. I'm like, I'm not doing them at seven it's too late. And I said, no. Okay. You gotta do. You gotta get one appointment. And I got lucky. I got lucky. And on the fourth call, I got an appointment. And it was an expired from over a year ago. And I just asked her, I said, Hey, look, this may not be for you. I just called because obviously inventory is incredibly low. And I just wanted to know if there was a buyer interested in your property, would you be open to entertaining any offers? And she said, no. I said, all right it sounds like you're not looking for any help at the moment. And she said you know, maybe if the right price comes up. I said, all right? What does that price look like? It's over market value. Okay. That's fair. There's low inventory. I would do the same thing. If you had a magic wand, what would that number be? And she gives me the. And she said, you have a buyer? I said I have various different investors. What I would have to see the property first, I would want to see the property first so that I don't have to waste your time, my time or their time. Cause if it's 10 different people, I don't want to bring 10 different bodies into your house when maybe nine out of 10 of them sees the house and it's not for them. I said, that's a huge waste of your time. And it's me being disrespectful towards everyone's schedule, including yours. So I can come by tomorrow or I can come by Thursday. What's best for you. She's like I'll come by Wednesday. Cool. Sounds good. So we have an appointment, but I want you to do too. I want you to run two scenarios in the mortgage calculator. One is her price today at a 3.65 rate. The other is her price today at 3.95. Show her the difference in payment buyers by payment amount price most matters. It may motivate her to get it on the market sooner than later, because she honestly has probably a 45 day window to sell it at that stupid price. I don't know if you guys have looked at markets, but it looks like it's hot. Yeah. And also she's asking way, way too much. So a short window to find the fool. Yeah, no we'll see. I'll give it a shot. I do have some people that are ready to just unload cash. All right, Stan, have you had enough or you want another round? Every everyone was helpful. I definitely thank you. I want to say something to you that I've said the fed in the past. Thank you for having the courage to come in front of this community and talk about your weaknesses. huge man. You'll have no problem with this. That measure of accountability is rare and I'm proud of you. So keep asking, keep that hand up. Know I love this community. I definitely love it. Everyone's thanks for being part of it. Who else? Who can we help today? Everybody's I don't want to be in the hot seat. Dave Glenn, are you hiding behind that photo? I haven't talked to you, but I see you hear a lot. No. How are you I'm assuming you're still in Denver, still working on the Florida and the Colorado market. Yes. Yes. I am playing away and it's going well, it's going well, got a few offers out and a few things I'm hopefully closing by the middle of next month and yeah, just just trying to stay warm here. We've got a big snow storm coming through those I'm in West Virginia for the winter and it's like when, or when I was a kid we're getting hammered this year. Are your deals in Colorado or in Florida? So guys, this is David's proof, not only that this strategy or this niche is productive in the most competitive market in the country, the Denver Metro, but also proof that you can do it 100% virtually because his other market is in Florida. And I think you were buying houses there before you'd even been there, right? Yes. So Dave is a great member of the community for those two things that ever so many people call them possible as getting those, to work in the Denver in the Colorado market and getting it to work 100% virtually you've been what we were probably five years in four years in three to four. Yeah. So anyway, just wanted to highlight you. I appreciate you being here and it's always fun to hear how you're doing. Yeah, no, I appreciate appreciate this group. It's great. Great group made some great connections and always learn on these calls. So I appreciate you and your time and putting this together. Now, did I just hear you say 2007, here we go again. Oh, yeah, we've got a debt crisis. It's just, real estate was healthy. You were around one last year or two years ago when I was doing my shift happened series at all the leads. A lot of the stuff I called for, I still believe it will happen. It's just, they kicked the cans so far with so much QE. The Canary in the mind for me is consumer goods coming back on the market, people are being asked non prices, but if you look at trucks, campers, boats, RVs motorcycles, like Facebook marketplace is starting to load up with those things. And most of them are year model 20, 20 and newer. So they were bought with stimulus checks and now as a down payment and now that is starting to hurt. So I think we're, I think we're setting up for one of the most amazing subject to. Acquisition periods probably in us history because you had a 24 month environment of stupid, low interest rates. And those people are going to you look at the stock market right now. What happens when the fed turns off, the easy debt for the corporate debt is what worries me more than anything. So when the fed takes the easy money away from companies, what happens to the share prices and when share prices drop, what happens to mid-level management jobs and when the mid management level jobs go, what happens to the mortgages that are being unpaid? You're going to have this mental class default come through as a result of a corporate debt level, not as a result of real estate metrics. And many people would say, I'm wrong. I say I'm early, but I think that's where we're headed to. So I think there'll be an opportunity to pick up assets. Top shape that we're overpaid for based on price, but it still makes sense on a massive inflationary environment to pick up cheap debt. It's an income producing asset. If you're doing it for primary residence, that's always a liability. Not always usually, but there's a really good chance that you'll be able to use that strategy to build a free portfolio of overpriced houses. They won't praise, but it doesn't freaking matter. You're assuming debt subject to, and you put a tenant in there as fast as possible. And every time someone has to move out, like your tenant base is gonna come up. It's already incredibly hard to find a rental. So chances are your debt. Coverage is going to be way positive. You would probably have a debt coverage of two or three. Because of the low rates that are on those. So that's the big opportunity I see. We already, we see foreclosure increase, but it's challenging because foreclosure data has been started for the last two years. I don't really trust it like I have in the past. Just because the courts have been so messed up and it's hard for me until some of that works through in the courts, clear backlog. I don't really trust the pre-foreclosure trends that I'm saying that they are surging December was the highest. And what I'm talking about is probably a couple of fed rate hikes. If you remember back in 2018, the fall, it was around August, September of 2018, the federal reserve Easter there, quantitative easing and started that like they let rates rise and they started moving assets off the balance sheet. What happened in a matter of days, we shut down the whole back end of the financial service, like the whole financial system overnight lending, repo lending, all that shut down. So even then we were trying to recover from 2008, 9, 10, 11 stimulus. And we couldn't back that off without harming, without a taper tantrum is what it became known as well. Now we've expanded money supply. Just ridiculously beyond that point and debt ridiculously beyond that point, we've got rates slammed down to zero. And we shouldn't be printing any more money. So the fed is in a conundrum because they've got real inflation. If you include food and energy, inflation's running probably around 30%, like that's real. And at the household level, that's real. And that's where that pain starting to show itself. So it's just a matter of time until that ripples through real estate. I don't care if we're 6 million housing units short. If most people are buying homes with debt and if they can't access the debt or can't afford that, it's going to lower the price of the assets. So anyone who's overpaying for houses right now is going to be the, if they have to move in the next and the short term, chances are, they're going to be a landlord, not a seller, but some of them won't be able to afford to move and hold on to that house. So I don't think we have a massive foreclosure crisis looming. I think we have a massive opportunity to pick up sub2 deals. Chad, if we want to take advantage of that and start prospecting those types opportunities, what would you suggest? Is there a particular list or particular strategy? So I think prop stream is the best current toll just because of the sheer amount of data that they're putting in. And the criteria that I would use is, look at, I would say for rentals, for me and most every market I worked in, I want at least a three bedroom, two bath. I want one that has one with that, that, that has a high LTV debt that was originated after 2012. Let's just say March of 2020. So you can assume that you have a ridiculously low interest rate on that. And then whatever zip code you want, you're willing to be. And that's pretty good list and you'll come up with hundreds or thousands, but look at your budget, your marketing budget, and then pair it down from there. You can tighten that filter even more. But if someone bought a house in the last two years, they had at least an 80% LTV and the market slips, most of them are going to be stuck. They're not going to be able to afford negotiation, post inspection, repairs, realtor, commissions, and closing costs. They're stuck. So they're facing, do I want to be a landlord or do I want to do, do I want to like, let someone else pay off my debt and nurture my credit score while I go start over? And what you'll find is most of them will go for the ladder and that's for people in primary residences or secondary. Yeah, second home to go. So what you'll normally find, if you look at what happens coming into a recession, second homes will go first divorces. You'll start to see second home markets ramp up. Then you'll start to see divorce filings, spike, and then you'll start to say the primary residences. A lot of people are married because of material bullshit. Not because they should have been married and these environments tend to flush those marriages out. So a lot of these will be divorced sub two deals, but there's no good source for divorce records that I've ever found. And I've, I have looked extensively. There's one company that claimed to have it but there 83% of their data is filed on decree, which means the assets have been dealt with or usually refinanced or sold. The other thing that didn't mention, so the filter I gave you is pretty wide open. You can also put in notice of the fall, if they're 30, 60, 90 days late, those are the high priority, really motivated ones. But if you want to cast a wide net, if you're really serious about just picking up, we're talking about free houses, so you can spend all your money on marketing because you don't spend the money on the houses. You're literally taking the debt away from them so they can get back on their feet financially, whether that's divorce, job loss, job transfer. So those are probably the three most common scenarios. But propstream has a really good tool, you can pull up to 10,000 leads a month. Cat dropped the link in the chat. I think earlier I saw we do have an affiliation with them because the founder, they sold it. But my friend Rob started that. So we do pick up something. I don't remember what all subscription for a hundred bucks, months, best software value out there for investors. I think the other tools, if you want to look at alternatives is remind and Propelio. But I just, because I know the back end of stream, I think they have a better data seats for agents as well. Absolutely. So Grant Cox, he used it last, I guess it's been three weeks ago. So he had a retail buyer, they got beat out. It was a tough negotiation. I coached him through that and he lost it. Like someone else just paid a ridiculously high number and as a fiduciary to the buyer, he wasn't willing to drive them up into that stupid price category. So he went the propstream. He pulled up a list based on the criteria of his buyers and he's double ending the deal. So he's one of the few realtors that will go get his own inventory. And you use this propstream to go grab his list. And he skip traces. He hits the mailbox first, and then he hits the phones. So when he needs a listing, he doesn't sit around and wait on some other listing agent to get it. He becomes that listing agent. So for a hundred bucks a month. Yes. If you're actively working with buyers, you don't have an inventory problem. Like the market might have an inventory problem. You shouldn't pass. You'll get them. Hey Chad, I got a quick, easy one. Hopefully. I contracted a property. Well, I signed the contract on an MLS property this weekend. I'm thinking that the agent's little shady or they're just holding off and waiting for other buyers. Cause he was like, we've got to put offers in, by the end of the night, I said, well I could give you a verbal offer real quick. I still got to, go talk to my partner and see if he wants to property. But anyways, at that point he said there were other um, offers. And then the next day he was like, okay, there aren't any offers. You want to go ahead and sign the contract. So I went to go meet him at the property. And then he was like there's other offers now, after I gave him a number and everything, he's so there's other offers. So still sign the contract and And it's three o'clock right now I'm thinking, are they just holding off for other buyers? Would I seem too anxious if I call and say, Hey, what's going on? Or how should I play this one out? And maybe you lose a deal, but I would learn something from this deal. Never ever place some offer without an expiration and time. Okay. My opinion it's not even valid. It's why would you leave something open-ended like that? Give them a timeframe to perform within and take some control. So it's too late for that now, but I will say even if it's not part of your contract, if you have to come up with the language, put in an additional term and expire every damn offer you make from now forward, it will work in your favor. I think that a valid offer has to include that. The attorneys and the Virginia association of realtors don't agree with me, but every other state that I've been licensed in, it was part of the contract. So in Virginia, I just write my own in. Fed said you had something you wanted to throw in? Two things. I don't know what state Alex is in. Here's the Texas you're in Texas, Houston, Texas. So I don't know about there, but here an offer. If you're doing it through a realtor form, it expires after three days. First of all, secondly, if the agent is telling you that he or she has offers, you can always whether it's in your counter or in your offer. For example, when there's multiple offers here, or at least an agent tells me, oh yeah, we have offers. And I feel like he, or she is full of it then in my offer if we put an escalation clause, we'll put an escalation clause and we say, we'll go up to our price increases by X amount and then in parentheses up to blah, blah, blah. And then the second item is that the agent has to provide proof of the highest offer. That's the only way we'll beat it. We have to see the signature and if they don't want to do that, then we can step out that's. That's how I've done it because unfortunately here. Some agents do unethical things, agents do that. I didn't know that. And often they'll tell you, they'll send you a seller, multiple counter offer to your offer when they don't have more than one offer, which is so illegal to do. But some agents do that because they think they can get away with it. And eventually they come across the person who won't let them get away with it. Just be a couple of steps ahead and just prepare for the worst, awesome. Fed. Can you share could you share with Alex, I'll find an actual addendum I created with that. And you can use that exact thing I use it often for these types of, yeah. So post to that in the probate mastery alumni group later. And Alex, be sure and check back today. Awesome. Awesome. Good language. That secondary clause. I'll find a document. I'll just send it to you. Awesome. Thanks guys. Good stuff. This is my would be, or would have been my first wholesale deal. Is going to be going to be. Thank you, Chad. Going to be awesome. We have a standardized form for that, for The escalation clause in Maryland, we have a standardized form. Okay. Yeah. yeah, We actually bought our first house personally with an escalation clause that got us the deal. So I think that's great language to have in there, especially these types of markets. I was I'm curious, Chad, what's your buy box requirements kind of basic terms for your sub2 deals as far as monthly cash flow, positive cashflow and a lot like a lender. If I can get a debt coverage ratio of 1.25, I'm happy because I know I can refinance that asset. Do you take into account reserves? Like it's it depends like what's the highest and best use of the house? Is it always going to be a rental or is it short-term rental eligible? And that's the thing like in, in your market you're in Volusia, right? Is that the county you're working in Florida now? I see a Brevard, Indian river and Palm beach. Okay. Well, All those are short-term rental markets. So you can probably get like a debt coverage ratio of three or better, on short-term rental and regardless of economic conditions, baby boomers are, if you study, if you look at demographics, there's a mass Exodus from new England and the Florida. So at least December through April, you've got a super strong short-term rental market there. The other thing to focus on is can I make that. Travel nursing housing. So can I make it a furnished rental or can I make this senior living? Not necessarily like skilled care assisted living. Can I hire one manager to live in a six bedroom house and take care of six elderly people that are mostly independent are ways we can squeeze massive margins out of these and pick up free inventory. That's not on our credit, but it's on our balance. I don't have a hard and fast rule. It's depends on how close are we to a convention center, a hospital, an airport what, which direction is this market or this neighborhood moving in? If it's if it's a older construction hasn't been updated, I'm looking for a much higher DCR and I will factor in reserves and cap ex, but for a lot of these, because they've recently transferred in the last 24 months, you've had home inspectors in there. You've had contractors on there. A lot of them are in as good a condition as long as we live in now. So fed, just put the specific language from the addendum in the chat. And then I saw a comment from Cory Richardson. So Corey is set up in the Northwest. I would say nine out of 10 offers are from foreign investors. We sold 34 estates in 2021, 30 of them went to foreign investors. Any insight on long-term effect of that? All I would say Corey is look up the road five hours at what Vancouver had to do in the last environment like this they started a foreign investment buyer tax. And I would say that the west coast is going to see that sooner than later. Farmland is the more alarming thing. We have foreign investors driving up the price to farmland, very discreetly, but if you look through the Midwest, farmers are selling an all time high values and they're being accumulated by ultra wealthy international capital. And they're controlling the commodities, the water and the food. So I think eventually you'll see action from regulators. I think it'll be a while because they've, they kinda got their hands full right now. I don't think in the next 12 months, you're going to see any action like that, unless it's at the local level, you might see like Seattle city and like Portland or LA, like they might be likely to do that. Toronto actually did it too. I think it's been two years ago, they instated their foreign and foreign investment tax. And it's usually like 15, 18% on top of everything. But they still attract capital, because it's usually China, they're going into inflationary environment, and they want to get out of yuan and into US dollars. So I don't see any immediate end to that. But ultimately it will overheat markets and they'll blame foreign investors on the wealth divide and increased homelessness. Federal reserve is who caused that problem. And it started back in 1971. It didn't start just in the last two years. Like we've been working on this wealth gap for awhile. I do have to run I'm nine minutes late for my 4. Great conversation. Guys, love these conversations. Thanks for all the participation and have a great week. See you next week.