Best sell real estate investing author Larry Goins & Co-Host Kandas, will show you the many ways real estate creates the I.D.E.A.L. investment. Whether you want to Flip houses or become a passive investor making double-digit returns while others do all the work. You will learn how here on BRAG Radio.
In this episode, Larry and Kandas dissected the different deals they had the past week. They also shared tips they implemented in their office that led them to discovering potentials. They also talked about The Rubber Band Reprimand where the goal is to look for something you shouldn’t be doing and reprimanding yourself when you catch yourself doing it.
The Rubber Band Reprimand
What's going on this week on properties
Going wide - widen out their geographical area
You want to be about 15 to 20 miles from a Walmart or a Home Depot.
The deals they got this week
What is Wholesaling
Discovering Troy - our MLS acquisition manager's potential as he talked
about his previous career on selling vacuum cleaner
The deal Troy handled
Success story of our student - Joseph's deal
“There are two ways to do real estate: you can go deep or you can go wide.”
Welcome to BRAG Radio, which is all about being rich and generous. Every week, your hosts, Kandas and bestselling author, Larry Goins, will show you how to be rich and generous by investing in real estat. Broadcasting around the world on the BRAG Radio Network from the flagship station, WBT in beautiful uptown Charlotte, here are your hosts, the rock stars of real estate, Larry and Kandas.
Larry: What’s happening?
Kandas: How are you doing?
Larry: How are you doing?
Kandas: I’m good.
Larry: Awesome. Good job, Chad. Good job.
Chad: Thank you.
Larry: The man, the legend, the myth.
Kandas: Can we hear your radio voice?
Chad: Thank you very much.
Larry: That’s awesome, man. I love it. I love it. That’s great.
Kandas: That’s my favorite thing ever.
Larry: So I hope everybody’s been well. We’re back from a three-day. We had a three-day event last weekend.
Kandas: Not last weekend.
Larry: In Charlotte. Well, the weekend before last.
Kandas: The weekend before last.
Larry: That’s what I meant.
Kandas: Say what you mean, sir. Say what you mean.
Larry: They run together from me because I’m always on the road, off the road. I mean, you keep me away from home.
Kandas: Is this whining that I’m hearing? Chad, what do you hear?
Chad: I hear little violins.
Kandas: Whining. Whining.
Larry: That’s funny.
Kandas: Poor thing. Poor little thing. He’s got to be on the road all the time.
Larry: Is this gang up on Larry day?
Kandas: And it’s only a minute and 25 seconds in.
Larry: That’s funny. So we’re supposed to be talking about real estate, right?
Kandas: We’re supposed to.
Larry: That’s what this show is all about, be rich and generous, BRAG Radio, right? We teach you how to invest in real estate, whether it’s active or passive, either one. It doesn’t matter to us. We can teach you. If you want to go out and flip a bunch of houses, if you want to be a real estate day trader like the book I wrote, Getting Started in Real Estate Day Trading, or if you want to flip HUD houses or whatever you want to do. Or if you just want to be a passive investor, just write a check and then have mailbox money coming in. We can teach you either one, right?
Larry: That’s all you got? Wait a minute, that’s all your got? Come on. What’s the matter with you?
Kandas: Yes, we can teach you either. And put a smile on your face while you’re doing it.
Larry: And you even got the Texas hair today, right? The big hair.
Kandas: Yeah. You know what, though? It doesn’t like humidity. It doesn’t like rain. It always looks better—yeah.
It always looks better before I leave my house, in my own lighting.
Larry: It’s like that Seinfeld episode where the girl was either good looking or ugly based on the lighting.
Kandas: Yes, it’s a real thing. It really happens.
Larry: I’m not saying that about you. I’m just saying.
Kandas: Of course not. Of course not. It just came up all of a sudden right now.
Larry: Well, you mentioned lighting.
Kandas: About real estate.
Larry: Yeah, I want to share a little tip with you guys. It’s something that we started implementing in our office that I’m really, really excited about and I want to share about it. There’s a lot of people out there that have habits that you either—
Kandas: I want to share. I want to get this on.
Larry: I want to share. This ain’t Swap and Shop.
Kandas: I’d like to get this tip on.
Larry: All right. So anyway, every morning, we have a morning meeting. We have a morning meeting every morning. Monday, Tuesday, Wednesday, Thursday, and Friday, right? And we have some kind of a training—I don’t know if it’ll be self-training or if it’ll be just motivational or life or something like that and then we have a short devotion, somebody in the organization does it. And then we close with a prayer. But we do this every single morning, all right?
One thing that I learned a long, long time ago—I forget where I even heard it but it was called the rubber band reprimand. Remember that?
Kandas: Did you forget where you heard it?
Larry: Was it from you?
Kandas: Yeah. Most things he forgets where they come from, they’re from me. Just so ya’ll know.
Larry: Listen, I know I was doing it back in the day. It was before you were born.
Kandas: It’s either me, or Jim Rone.
Larry: So you’re right up there with all my philosophers—it was either Grant Cardone, Jim Rone, Jesus, or you. Is that what you’re saying?
Larry: Or from a Seinfeld episode.
Kandas: Yeah, you can’t forget them. You can’t leave them out.
Larry: I know, right? I know what I was doing today.
Kandas: We heard the rubber band reprimand. Whenever it came back around, we heard about it at the same time. We were like, oh, that’s a good idea.
Larry: So here’s the thing. If you have something that you’re either trying to do or not do, like maybe it was like mine was. We went through and we’ve got about a dozen people at the office, right? And I ask everybody—
Kandas: A dozen or 15.
Larry: About seven or three. About five or 11. Five or 11 people. People always ask, how many people do you have working for you? My standard answer is, about half of them.
Kandas: It’s so easy. If you guys only knew. Do you see how easy it is for me to take him off track when we’re in here? This is all day, every day. All day.
Larry: You’re right. You’re right. So anyway, we went around the room and I had everybody tell me, what is one thing that you would like to either stop doing or do that you know, throughout the day, if you catch yourself doing it, you can reprimand yourself? And we’ve got these big rubber bands. Look, I still have mine on my wrists right here.
Kandas: I don’t. I took a shower since then. I don’t have mine on.
Larry: I left mine on in the shower. Okay? That’s when you can barely read what it says.
Kandas: Sure, sure.
Larry: Are you saying I don’t shower?
Kandas: I’m just saying mine’s not on anymore.
Larry: Anyway. Listen, this is a really good idea I’m trying to share here. Okay? And you keep pulling me off track. You know how I am. So we went around the room and people were saying things like, mine was I want to check my e-mail no more than three times a day because I find myself on e-mail all the time. I mean, an e-mail—woo, hey. You know how I get distracted. There’s a sale on Amazon.
Kandas: I was going to say, I don’t know what kind of e-mail you would get that would make you make that sound. But all right. We’ll just go with it.
Larry: Easy now.
Kandas: Ooh, a sale on Amazon.
Larry: Or whatever. Here’s a house for sale, right? A price drop on Zillow, right?
Kandas: Sounds more appropriate.
Larry: That was a weird sound I made, wasn’t it?
Kandas: Yeah, a little bit.
Larry: All right, anyway. Moving along.
Kandas: Mine was only do one thing at a time. No multi-tasking.
Larry: Yeah, because you’re horrible at it.
Kandas: I am. If you read the book, The One Thing—you will understand.
Larry: So how many times do you find yourself—here’s what you do. It’s the rubber band reprimand. You put a rubber band around your wrist and anytime you found yourself doing what you said you don’t want to do, you pull it out as far as you can and you let go, right? And snap your wrist. And it hurts.
Kandas: But see yours had—mine didn’t have a quota on it. It wasn’t like, you can catch yourself three times multi-tasking before you pop yourself, like yours said. I had to snap myself from the very beginning from like the first thing. And you were like, oh, I got one more time. I got two more times.
Larry: Yeah, but it’s e-mail. You’ve got to check your e-mail at least a couple of times, right, Chad?
Chad: At least every three minutes.
Larry: I know, right? So morning, noon, and at the end of the day. Right? That’s when I should check it. But see, I have it open on my computer so like whenever I move screens, I’m like, boom, there it is. Great. Now I’ve got to snap this thing. And you said, three times?
Kandas: You said three times. That’s your quota. I didn’t have a quota.
Larry: You didn’t have any.
Kandas: No, it was the first time right off the bat.
Larry: Three times is too many. Three times is not too many. But the goal and the key is to find something that you realize that you’re doing that you shouldn’t be doing or—I’m talking about business stuff. Time management. All that good stuff. So find something like that and then come up with an idea and then put the rubber band on and snap it. It makes you think. It really does. How many times have you snapped your own wrist since you started?
Kandas: I don’t know.
Larry: You started doing it when, Monday or Tuesday or this past week?
Kandas: Yeah, Tuesday. And I don’t know how many times I snapped myself with the first day. It was a lot because I’m constantly pulled in multiple directions and having to stop what I’m doing to handle something, handle a fire more or less that’s going on. So I had to do it a lot that first day, but not so much yesterday. No, I haven’t had to do it so much today. Or Wednesday, Thursday, or Friday.
Larry: Yeah. So okay, you’re even doing it on the weekends.
Larry: Wow, good for you.
Kandas: Well, it starts getting in your heard, thanks, Chad, for laughing at me. It starts getting in your head and I don’t have to do that much stuff at home but you know, it’s always there now.
Larry: You know, we’ve got to take a break here in just a minute but when we come back, there was one person that gave themselves up to ten times before—and we’re going to talk all about that. You guys do not want to miss this. This was hilarious.
Kandas: She’s not going to be happy with you.
Larry: That’s okay. We’re going to make sure she is listening. This is Kandas’ mom we’re talking about.
Kandas: You guys give 877-Larry-Go a call and get your investors’ kit. I can get the digital version out to your e-mail or have a physical version ready for you to pick up at the office. We can talk about the next upcoming three-day, office tours, our mentoring programs, anything you want. Give me a call. 877-Larry-Go. We’ll be right back.
Welcome back to BRAG Radio, investing in real estate to be rich and generous. We’re supposed to talk about real estate on the show. Last segment, we talked about rubber band reprimand. On Larry’s mind since he initiated it.
Larry: I love it. I love it. We used to do that when I was a stockbroker years ago. In the ‘80s.
Kandas: It does work.
Larry: It really does work.
Kandas: I’m telling you, you say what you’re getting ready to say, this little story you’re getting ready to go into, she’s not going to be happy. She ain’t going to be happy.
Larry: It’s okay.
Kandas: All right.
Larry: You don’t have to tell her it’s coming. She don’t listen to you anyway, on the radio.
Kandas: She doesn’t.
Larry: Mama don’t listen to you.
Kandas: I know. Isn’t that sad?
Larry: I know. Your mother-in-law does.
Kandas: She does, yes.
Larry: Yeah, that’s good. So we went around the room and everybody picked this thing and you were talking about, I’ve got to do something three times before the e-mail—three times. So your mom, the thing she picked out, she didn’t have to start the rubber band reprimand until she hit ten.
Larry: And her ten was not saying any explicitives.
Kandas: That’s right. She doesn’t say any bad ones, like Chad, I know we talked how my mother is the salt of the earth and everything on this show and it’s not like she says the bad ones, and she actually has created her own.
Larry: She makes up her own. In fact, the funniest part of this, was she was sitting there explaining it. She was like, I want to try to not say this as much anymore. And I said, what are some of those things you say anyway? And she said one and I said, that’s nine. And then she immediately said another one. I said, that’s eight.
Kandas: He tricked her out of two of them. He tricked her out of two.
Larry: And I think that day, what did she say, how many times did she have to snap her wrist?
Kandas: Well, I was with her that night because we had to go to the hospital after that and she had to snap it when we were at the hospital. It was so funny.
Larry: She was doing it even after work.
Kandas: Yeah, we had gone to dinner with my aunt and my aunt—she said one at dinner and my aunt’s like, there’s another one.
Larry: So she told your aunt what was going on.
Kandas: Yeah, because she was like, why do ya’ll have these rubber bands on your arms? I was like, all right. Here we go.
Larry: That’s hilarious. I love it.
Kandas: She couldn’t hide from it after that. It was everywhere.
Larry: That’s cool.
Kandas: Hey, what did we have happen this week in properties?
Larry: We had a lot going on. We had two—
Kandas: Just a little bit of news for the people.
Larry: News you can use.
Kandas: News for the people.
Larry: Is that original? That’s not original, is it?
Kandas: No, it’s not original. Is it at least from WBT?
Larry: No. How about from Larry’s Learning? Is that original?
Chad: That is, yes.
Larry: Okay, let’s get to some Larry’s Learning on real estate.
Kandas: All right. What’s happened this week? Let’s let them know what’s happening in the office this week with our properties?
Larry: We got a couple of HUD properties offers accepted on HUD properties, down in Georgia. Right? In Georgia.
Kandas: There were two, right?
Larry: I think we’re going to end up dropping one. We may even end up dropping both of them, I’m not sure. But we did get a couple of HUD offers accepted. I mean, the one, it was like I can’t remember exactly what it was listed for. I think it was listed for like $70,000-$80,000 and we got it for like $30,000-$40,000. But the problem is, it’s out in the middle of nowhere.
One of the things, now many of you guys know, there’s two ways to do real estate. You can go deep or go wide. In other words, if you want to buy just in say the Charlotte MSA, Metropolitan Statistical Area, you can go deep. But if you’re going to go deep, you’re going to stay in one central area, what you’re going to have to do is you’re going to have to do Craigslist, Zillow, Realtor.com, BandofSigns, Bird Dogs, Property Locators. You’re going to have to do direct mail, paper-click advertising, just a lot of different sources of property.
We choose to go wide, right? In other words, you widen out your geographical area and in that way, you don’t have to do 50 or 11 things. So we can do HUD and we can do Zillow, or Ziller as we say in South Carolina.
Kandas: You are the one person that I hear it from.
Larry: Ziller, as I say. And then maybe some direct-mail or Facebook advertising, right?
Larry: So here’s the key thing. I wanted to mention, we’d go wide—there’s some properties that are in just too small of a town for us to buy.
Kandas: We like having an established area like super rural though is not going to work.
Kandas: We’re not going to be able to get the traffic there to resell it or to lease it.
Larry: Here’s the key. You want to be about 15 to 20 miles from a Wal-Mart. That’s it, right there.
Kandas: Why are you looking at me like this is the Golden Rule? Did you see that look he gave me? What was that? From a Wal-Mart.
Larry: From an El Wal-Marto.
Kandas: From the Wal-Mart. You’ve got to be 5 to 20 miles from the Wal-Mart.
Larry: I was in Mexico. I don’t speak Spanish and I’m in Mexico one time—
Kandas: Ask me how I know.
Larry: I was looking for a Wal-Mart and I was like, we pull up and there’s some people on the street corner. I should have known right then. But we pull up and I said, Donde esta El Wal-Marto?
Kandas: So glad.
Larry: Roll them up. Roll them up.
Kandas: Speed away. They don’t know what I’m talking about.
Larry: Speed away. All right, so you want to be about 15 to 20 miles from a Wal-Mart. Another good indicator is 15 to 20 miles from a Home Depot or a Lowe’s. Because that’s where you can market and advertise your properties for sale. So we did. We got two HUD deals this week. We sold a couple of houses. We sold one in Florence we’ve had a while and we sold one in Olander we’ve had a while.
Kandas: Those are our oldest two properties. They’ve been on the books—I think we’ve talked about them before being kind of problem properties. You guys know everything. If you do this long enough, you’re going to lose money on something.
Larry: So both of these houses, one of them, we had $38K in. The other one, we had $39Kish in and we’re selling them both for $35K each.
Kandas: We’ve got to get them off the books. There comes a point in time where you’ve got to just get what you can get and go.
Larry: It’s time to fish or cut bait. What are we going to do? Let’s get her done.
Kandas: And we decided to sell these for $35K and just move them.
Larry: Yeah, just get them out of inventory. Get the money back from the account. Because we needs our money.
Kandas: We need to be able to do more deals.
Larry: Exactly, exactly. So we did sell those two houses. We also got another house that we got under contract to buy. I don’t remember where it was. It’s somewhere near Goldsboro or Grifton area. We’ve got a couple of houses out there already.
Kandas: It is Goldsboro.
Larry: No, we have another one that we just got in a very similar area. I think we’re paying $70,000 for it and we’re selling it for like $89,900 or something like that. But it’s a good fix and flip house.
Larry: It’s a good fix and flip house so we’re wholesaling that one. Yeah, there’s a lot of price drops going on.
Chad: For those who don’t maybe not know, what do you mean when you say you’re wholesaling it?
Kandas: Look at Chad jumping in.
Larry: Look at you go, Chad. The man, the legend, and the myth right there.
Kandas: Loving the jump in.
Larry: Loving the jump in. So wholesaling—
Kandas: Or the pop-in. We should call it a pop-in. Sorry. I’m sorry.
Larry: That’s okay. Kind of like you just did.
Kandas: Kind of like on Seinfeld. Don’t they say pop in? Not a fan of the pop in, yeah. I love the pop in. That’s what we’re going to call it. The pop in.
Larry: All right.
Kandas: For you. Not for people who stop by the house.
Larry: I love Seinfeld. I watched that episode this morning—see, I’m getting off track.
Chad: Wholesale, wholesale, wholesale.
Larry: Thanks, Chad. Thanks, Chad. Thanks, Chad. So we get paid as a professional negotiator where we’re making hundreds and hundreds and hundreds of offers. We find that one gem of a deal that we get under contract at a deep, deep, discount, and then we add a little bit of money to it and pass it along to somebody who is either going to fix and flip it or they’re going to fix it up and rent it out, or like the person we sold the Olander house to that we had to sell at a discount, or at a loss, I should say—
Kandas: Yeah, at a loss.
Larry: They’re going to fix it up. They’re a handy person. They’re going to do the work themselves. They’ve got $35,000 cash. They’re going to fix it up and move into it, right?
Kandas: Yeah. And it does put them in a good position. I mean, it was a bad deal for us.
Larry: ARV or After Repair Value, is $70,000 on that house, right?
Kandas: Yeah. I mean, it doesn’t need that much work. It’s still going to put the buyer in a good position that’s moving in with some equity.
Larry: That’s awesome. That’s awesome.
Kandas: It is good.
Larry: So we’ve got several houses under contract this week, got two houses under contract to sell this week and—
Kandas: And we’ve got to take a break.
Kandas: Yeah. If you guys want to know more—
Larry: Tell us about the investors’ kit.
Kandas: I’m trying to, Mr. Pop In. If you guys want to know what’s in the investors’ kit and want to get a copy for yourself, you can give me a call. 877-Larry-Go. You can also text 803-897-6063. Text the word BRAG to 803-897-6063 and you can get a copy of the digital investors’ kit that way as well. Both of Larry’s books, some additional trainings, things like that. But give me a call, 877-Larry-Go if you want to talk about our mentoring programs, our upcoming three-day events, taking an office tour and kind of meeting everybody. Or picking up the physical investors’ kit. We’ll be right back.
And we’re back. Aren’t you loving it?
Larry: I do. I do.
Kandas: I was talking to the people, not to you.
Larry: Loving what? Oh. The stories?
Kandas: No, the people listening.
Larry: Good. Good. So what were we talking about? We’re talking about the deals we got this past week. Yeah, we got three houses under contract, two HUDs, one non-HUD, and—let me tell you about this other deal that we’re working. Listen.
Kandas: Is this how you’re going to do—
Larry: Oh, my gosh. This is good. I got plenty.
Kandas: You know Chad, how sometimes when you just get something that clicks, right? You’ve got a person and you’re seeing some potential with that and then all of a sudden, this opportunity just like opens up and you’re like, man, this guy is perfect for this seat. Well, we moved somebody in the company to a new seat and that’s what has happened. It’s like an epiphany moment.
Chad: He got his seat into a throne?
Kandas: Almost. He’s getting there, yeah.
Larry: Troy, who works in our office as an acquisitions manager, an MLS acquisitions manager, right? So in other words, he’s calling realtors all day long, making offers on MLS houses. Well, during one of the morning devotions, he got to talking about a previous career—
Kandas: He got on a roll.
Larry: Yeah, he was talking about he used to sell Rainbow vacuum cleaners.
Kandas: Not Rainbow.
Larry: Okay, it was—what’s the other one? Kirby. It was Kirby. It was one of the high dollar vacuum cleaners, right?
Kandas: Get the story straight.
Larry: It was a door-to-door high ticket item vacuum cleaner, right? Anyway. So, he got to talking about how they sell them and how they do the demonstration and how they have to close the sale and all of this—I’m telling you, anybody that can sell vacuum cleaners door to door, that is a closer, right? They’re a hammer closer. They’re a salesperson. You’ve got to be.
Chad: They can have coffee.
Kandas: They can have coffee. Coffee is for them.
Larry: Coffee is for closers, right? So that’s really good. I love that. We’re talking about the movie, Glen Gary, Glen Awesome, right?
Kandas: You’re getting sidetracked. Back to Troy.
Larry: So Troy is talking about all the different things they’d do to make sales to sell a few thousand dollar vacuum cleaner, right? So during this meeting, I’m like, man, Troy is a closer. He’s a salesman. He doesn’t need to be making offers on MLS properties, shooting over e-mails and talking to realtors. He needs to be going directly to the sellers, right?
Kandas: In home.
Larry: To talk to the sellers.
Kandas: In-home buying.
Larry: So as soon as the meeting was over, I ran into your office, didn’t I?
Kandas: Before it was over, he was like looking at me like this. Like, are you hearing this? I know you’re listening to us and you can’t see that, but the people watching us can. But he keeps looking over at me during the meeting and I could feel it and I know what’s coming and so after the meeting, I just go to my office and like, right behind me, here he comes in. He closes the door and he’s like, I think Troy’s in the wrong seat. I was like, I heard that.
Larry: He needs to be selling the seller, right? He needs to be selling the seller. Now guys, don’t get me wrong. I am a firm believer in sales. If you have a good product and a good service, if you can help somebody, you have an obligation to close them and sell them.
Kandas: If you know you’re going to help them, yeah.
Larry: If you know you’re going to help them—and listen, they can always say no. Whether it’s a seller selling a house or somebody buying something, it doesn’t really matter. They can always say no.
Kandas: That’s right.
Larry: But immediately, I mean, I talked to Kandas about it and she agreed and then we talked to Troy about it and he’s like, yeah, I can do that. Yeah, I’d like to do that.
Kandas: Tell them about the deal. Tell them about the deal.
Larry: Let’s tell them about the deal.
Kandas: That’s the best part.
Larry: As I’m ringing my hands. So, this guy had come to our website and opted in about selling his property and the guy was wanting $49,900 for this house. It’s a little brick house in Columbia, South Carolina. I don’t know why every time I say Columbia, I say it like that. Like South America.
Kandas: I don’t know that there’s anybody in Columbia that says it like that.
Larry: Columbia, right?
Kandas: Not the people that I know.
Larry: Anyway, so the house is in Columbia, South Carolina and it’s rented out. It’s got a tenant in it. They pay him $500 a month, right? And it hasn’t been rented. It has $700 a month. But now, it’s rented for $500 a month. So anyway. Troy’s on the phone with him. He’s pulling up comps while he’s on the phone with him, looking at it. And the guy is asking $50,000. $49,900. And it was bringing in $500 a month. A lot of people think, or a lot of people will say your rent should be 1% of what you paid. So $500 of $50,000, that’s 1%, right?
So Troy is on the phone and you know, I teach this and he knows this—if you’re not embarrassed by your offer, it’s too high. So Troy says, based on what I’m seeing, I’m pulling up the comps, the comparable sales and what I’m seeing, he said, I don’t think we can probably go much more than $10,000 or $20,000. And you know what the first thing the guy said was?
Kandas: I know.
Larry: I’ll take $20,000. I’ll take $20,000. I mean, he goes from $50,000 to $20,000 just like that, right?
Kandas: It was crazy.
Larry: The story’s not over.
Kandas: I know. But that part.
Larry: But wait—in addition to that—
Kandas: It was so awesome. He was so excited. Troy was like, wait, what?
Larry: So he went out to look at the house. Him and Dan. Dan has to sell it. He’s our sales guy. Or excuse me, our asset manager. Dan disposes of all of our assets. So he and Dan went out there and there’s some kind of a plumbing type issue or something where the cleanout is backed up and they have to root out the sewer drain line or whatever. They had somebody go out and look at it and it looks like it’s going to cost $3000 or $4000 to fix it permanently.
The guy says, hey, I can root it out or whatever you call it. Make it work. You’ll have to do it every once in a while. So Troy calls him back. He says, look, I don’t know. I mean, with all these plumbing problem and everything, I just don’t know. I’m probably going to need to be around $5000 o $10,000. Maybe $15,000. The guy says, I’ll take $15,000. He goes from $50,000 to $20,000 to $15,000 like that in two phone calls.
So now, here’s where we are. The guy went out there, looked at the plumbing and everything and he’s writing up an estimate to send over to us. We’re going to send it to the guy and I really believe we can get it for under $10,000. And then we’ll just wholesale it to another landlord that there will be enough spread there that the landlord can replace that pipe, $3000-$4000 and he’s got a tenant already in place paying $500.
Kandas: The tenant is solid in the property now with it as is. They don’t want to go anywhere.
Larry: Yeah, they don’t want to go anywhere.
Kandas: They’d be happy if somebody can fix the plumbing.
Larry: They want to stay.
Kandas: Yeah. Are you in this show? What are you doing? Are you in this show?
Larry: I’m the one telling the story, aren’t I?
Kandas: Are you checking e-mails?
Larry: Dan just sent me a flower. What does this mean? He sent me a picture. Dan, our asset manager. Listen to this. This is good. “The greatest good you can do for another is not just share your riches but reveal to him his own riches”. That’s really good, isn’t it? Why would he send that to me?
Kandas: It’s pathetic.
Larry: It is.
Chad: He just heard you talking about him on the radio.
Larry: He must have. Dan, I can’t take this call right now. He’s trying to call me. He’s probably not even listening, right?
Kandas: I don’t even know if he’s listening or not.
Larry: So anyway, so guys, let me tell you something. There’s deals out there. People say we’re in a seller’s market and we really are in a seller’s market, right?
Kandas: Right. But it all depends on somebody’s situation. You never know what somebody is going through. We have no idea what the seller of this house is facing. Apparently, he needs money and he knows there’s a bottom line that he needs.
Larry: And he needs it fast.
Kandas: He needs it now, yeah. And we’re going to be able to accommodate that.
Larry: He’s what we call a motivated seller and that’s what you’re looking for when you’re buying properties. You’re looking for a motivated seller. Not somebody that wants to sell but somebody that needs to sell.
Kandas: Needs to sell. That’s right.
Larry: Guys, we have an event coming up in Charlotte—not Charlotte. In St. Louis, right?
Kandas: St. Louis next, yeah.
Larry: St. Louis and then after that, there’s Portland and then after that, it’s DFW, Hartford, Connecticut—
Kandas: Charlotte again and then Tampa.
Larry: All over the place.
Kandas: We’ve got them all over the place.
Larry: So we’ve got one coming up in St. Louis.
Larry: You can go to LarryGoinsLive.com to register. Just pay a $97 seat reservation fee so we know you’re going to show up. We’re going to give that money back to you.
Kandas: If it’s your first time, you get it back.
Kandas: If it’s our first date, you get it back.
Larry: They don’t you glomming onto us forever. You know. And coming to all of our events for free. Let us show you we’ve got some learning.
Kandas: You’ve got to pay to play at some point.
Larry: Let us show you we’ve got some learning. Call Kandas and get the free investors’ kit or just you know, ask information about the event and that stuff, right, Kandas?
Kandas: We can get you signed up for the St. Louis event. That three-day is coming up in April. Definitely take care of that for you. 877-Larry-Go. You can also get the digital investors’ kit sent to you via e-mail by letting me know the same on 877-Larry-Go. You can also text the word BRAG to 803-897-6063 and it will be sent out to you as well that way. If you have any questions about anything, you can give me an e-mail to info@BRAGRadio.com or if you just want to chat, 877-Larry-Go.
Welcome back to BRAG Radio. Always my favorite segment here, fourth segment, always. Love it.
Larry: All Van Halen segments are my favorite.
Kandas: You’re so funny. But he wouldn’t even have to do the show if you just listened to Van Halen. Come in the studio and you and him sit and listen to Van Halen, Chad.
Larry: I know, right? That’d be awesome.
Chad: That’d be fun.
Larry: I’d love it.
Kandas: No. So anyway, like I said, fourth segment so this gives us a chance here on BRAG Radio, if you guys are listening to us for the first time, to talk to students or highlight students that are investing in real estate, just like we do. Like how we’ve taught them to do. So this week, we have Joseph with us.
Larry: What’s happening, Joseph?
Joseph: Yes, hi.
Larry: How are you, sir?
Joseph: Hi guys. I am just great, just great. How about you?
Kandas: Good. Doing good.
Larry: I am doing awesome. We’re doing great. We’re doing great. Sorry that Helen couldn’t be with us on the Live on the Radio today but we really, really appreciate you taking your time out. Joseph and Helen, his wife, are our inner circle apprentice program students and they’re out there just crushing it. They’re rocking and rolling and I’m just so proud of what they’re doing. I’m just so impressed. And so, Joseph, tell our listeners a little about who is Joseph?
Joseph: So, honestly saying, we started real estate a really long time ago. We bought our first house about 19 years ago. In November, it’s going to be 19 years and it was in the regular way. We got mortgage in the bank, we got our money as a down payment and so on and so on. Then, we went to many coaches and we learned a lot of different approaches but we did not like all of them.
We picked up some from other coaches but we did not like the complete approach. Only when we actually met Larry and this is not compliment, this is true—so we realized that this is actually what we were looking for, a program like this. And we started doing exactly what Larry says, buying houses cash with other people’s money and the seller gives either cash for cash or with wholesale financing.
And so like recently on Friday, actually, we sold one house for cash and we were selling it with all the financing and we got the hold from one lady and she asked us how much we want if she would put $5000 down and $10,000 down and $15,000 and then $20,000. So I did not even know when she’s going to be stopping.
Larry: Wow, that’s great.
Joseph: So then she told me, okay, now let’s come to the point if I pay you all cash, how much would you give it to me? So we negotiated a little bit and so we agreed. They were completely ready, wired the party’s money to [inaudible][31:49]. We closed. So we bought that house maybe, it was HUD. HUD house and we bought it maybe a week before, maybe even less, before we got the offer and deposit. So it was very nice. It’s unfortunately not everywhere you go this way, but it was nice.
Another, we sold the house with all owner financing. It’s actually what you like. We do like this owner financing and people do appreciate it and so we were selling one house in Jacksonville, North Carolina, and it was a double wide mobile home like Larry loves.
Larry: Right. Like Larry loves.
Kandas: He does love them.
Joseph: By the way, Larry, this house, what I’m talking about, it was the house I was telling you which is with [inaudible][32:55]. You remember I shared with you this. You mentioned if you don’t like when house [inaudible][33:02], it was that house.
Kandas: The side of the house was turned.
Larry: Oh yeah, it was turned sideways. It wasn’t facing the road like it should be.
Joseph: Yes, exactly. And we are getting cold because we put in a lot of time. We actually said, why did we put a lot of time over there and we are getting cold till now?
Kandas: That is awesome.
Larry: That is great.
Joseph: Yes, till now. And what actually just puzzled us, we put one sign close to Wal-Mart and we thought that it was Saturday, Sunday, and on Monday, definitely somebody will take it off. We got called today and I asked her, where did you see the sign, she told me it was just next to Wal-Mart.
Larry: Next to Wal-Mart. That’s awesome. I love it.
Joseph: I was really surprised. And [inaudible][34:05] selling one house, it’s exactly like Larry said. Needs cosmetics, needed flooring, needed painting. Nothing more. Nothing major. And it was absolutely ugly piece of the floor in the living room and I cannot even imagine who painted this story, absolutely ugly. And you were talking with my wife and I actually suggested, let’s get rid of this. Because it’s really ugly. As soon as you are getting [inaudible][34:42]. And we were thinking of saying maybe yes, maybe no, so we got the call from one lady with her husband on the phone so they negotiated very hardly. They negotiated $900. We were selling it for $79,900. And they told us, maybe $79,000 is going to be okay? Because [inaudible][35:11].
Larry: So they got a $900 discount.
Joseph: A $900 discount. It’s not the end of this story. Then he told us, I love this floor.
Kandas: He loved the floor.
Larry: I’m just going to schelack it. I’m just going to schelack the plywood.
Kandas: The floor that scared Joseph, this guy loved.
Joseph: It was very scary to me. So, I loved this floor. What is interesting is he told us his story of five years in the flooring business. So this is why he told us, I’m going to change everything up. But what he loved from this floor, I don’t know. But he’s going to change everything.
Then he asked for how many years you are giving mortgage? Twenty. No, it’s too much. No more than five. I told him yeah, even one year, but you know, your payment is going to be completely different. Oh, that’s not a problem. So then we finally made it for five years.
Larry: Wow. So what kind of payment are you getting?
Joseph: They are paying $1500something plus they pay tax and insurance, just mortgage.
Larry: Wow, that’s a better deal than you could have ever have imagined. Am I right?
Joseph: Yeah, so it was very funny to us why you want it this way but if they want it, they want it.
Kandas: They wanted it and you were able to give it. That’s a win-win for everybody.
Joseph: So, okay.
Larry: Wow. Now, that house, you sold for $79,000. How much did you have in it?
Joseph: We bought it for $31K I believe. $31K or $32K. And we did some change to the house like for approximately like $800 outside. You know, the lawn, something like that. About $800.
Kandas: Just some landscaping.
Joseph: So we had in this house about $32,000, maybe $32,000 and a half.
Larry: Wow. That’s great. That is great. And now you’ve got a $1500 a month coming in. But they did work you down $900.
Joseph: Yes, they did. So he told me when he made negotiation, he goes, I am going to put $6000 down so it means that my mortgage is going to be on $73,000, then like small hesitation and he is asking, is it okay, not $73,900 but to $73,000 even.
Larry: Wow, that is awesome.
Joseph: I told him listen, you are a nice guy so yes. You got it.
Larry: Joseph, you are the man, the legend, the myth. And I’m so proud of you. I mean, I know you just told us about a couple of deals but I know you guys are doing a lot of deals. Congratulations. Thanks for going out there and making it happen and taking action.
Chad: Thank you Larry and Kandas and that’s going to wrap up today’s BRAG Radio, leading the world to be rich and generous. For more information about what Larry and Kandas talked about on today’s show or to get a free investors’ kit, call 877-Larry-Go. That’s 877-527-7946. You can also go to BRAGRadio.com. Make sure to tune in every Saturday for BRAG Radio leading the world to be rich and generous. Larry and Kandas will show you how to invest in real estate and the many ways real estate creates the ideal investment here on News 1110, 99.3 WBT.