In today's show, Larry and Kandas shared how you can do your first or next deal. They also discussed step-by-step the things you need to know so you can do your first or next deal in 60 days or less.
Listen in and learn different tips and tricks on how you can make that first or nth deal happen!
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 estate. 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; Kandas and Larry.
Larry: What’s happening? How are you doing Kandas?
Kandas: I’m good, how are you?
Larry: I’m doing excellent good to see you. I’m really excited about this show. I’m excited about every show.
Kandas: I know. I’m not sure what makes this one different.
Larry: Yeah well. I don’t know what makes it different other than you’re getting ready to go on vacation soon.
Kandas: Soon yeah not soon enough.
Larry: How do you mean?
Kandas: How do you mean?
Larry: I’m going to miss you. I’m going to go into KDTs for those two and a half weeks.
Kandas: It’s not like you do that over a weekend. So when I stopped answering your emails over a weekend you started, what’s going on, what’s wrong?
Larry: I start panicking. What’s happening?
Kandas: What’s going on? What’s wrong? Texting Matt.
Larry: My wife says, leave you alone, “Leave her alone.”
Kandas: Texting Matt.
Larry: Well my wife says, “Leave me alone too.”
Kandas: That’s a whole another show.
Larry: But that’s in a different way.
Kandas: Yeah that’s a whole another show, that’s nothing to do with this right here.
Larry: I know, right. That’s funny. So today’s show I’m really excited about our topic. By the way if you’re just now joining us BRAG Radio, be rich and generous it’s all about investining in real estate. We teach you how to be an active investor or a passive investor. We’re local coaches, mentors and we flip a lot of houses. We’ve actually done deals in 12 different states, right Kandas?
Kandas: That’s right.
Larry: That’s exactly right. And we can teach you how to do it too and we’re in Lake Wylie South Carolina.
Kandas: If you’re a good listener.
Larry: If you’re a good listener. You got to be a good listener, right.
Kandas: And you got to be an action taker.
Larry: That’s true.
Kandas: We can tell you all day but it’s not going to help.
Larry: That is the key. So on today’s show, guess what we’re going to talk about.
Kandas: What are we going to talk about?
Larry: Step by step how to do your first deal in 60 days or less.
Kandas: First or next.
Larry: Your first or next, yes.
Kandas: Yes and yes.
Larry: Any and all of the above, right. Your first or next deal in the next 60 days. And I say 60 days I’ve had some students that have done their first deal in three weeks, right.
Kandas: We really have. We’ve had students and they’re worth-
Larry: Wait you think I was lying.
Kandas: I’m not thinking you’re lying. I’m trying to enforce the fact with the people listening.
Larry: With the people.
Kandas: I have personally talked to a student just-what was it, two months ago we went to a REIA group and she came into our program with some of the material. And before we had even heard back from the group with like a final total she was requesting her tuition reimbursement from doing her first deal.
Larry: That’s awesome, that is really cool.
Kandas: Yeah and then.
Larry: I need to stop offering that. We give people their money back for their home study course when they do their first deal. It’s just one of the 10 ways they could get their money back.
Kandas: Not only that but she had done three.
Larry: I love three.
Kandas: She had done now you can’t get a refund on each three because you only buy one time. However you got plenty of money now.
Larry: That’s hilarious. That’s pretty cool.
Kandas: It was awesome for her, I was really happy.
Larry: So what we want to do this week is talk about specifically step by step exactly what you need to do to do your first deal. Now step number one, we’re going to jump right in okay Kandas?
Kandas: I’m ready jump in, go ahead.
Larry: Step number one is pick a market. And there’s a lot of different things you need to do pick a market. Now if you’re already in a decent market like in the Carolinas we’re in the Carolinas but there’s people out there that are in markets like Las Vegas or San Diego or Los Angeles.
Larry: Phoenix is another hot market.
Kandas: Phoenix is hot right now, Dallas Fort Worth.
Larry: DFW area, Houston all those are markets that I call growth markets. When the markets are hot they go up really fast.
Larry: And then whenever the market turns and gets soft, they go down really fast too. So what you want to do is you want to stay in areas that have low to flat appreciation, right. They go up gradually and then they go down gradually and you’re always able to stay right below the market when you’re buying right, does that make sense?
Kandas: To me.
Larry: Good. So couple of things I want to share with you about picking a market number one, you can look at home prices and home values at city-data.com. You want to look for areas or MSAs, MSA is Metropolitan Statistical Areas you want to look for those that have a million plus population, right.
Kandas: Don’t get hang up in this having to be in your backyard. If you’re in Phoenix or if you’re in DFW, of if you’re in even the Charlotte MSA, you don’t have to be right there in it. I mean how has it been since we’ve invested right in the Charlotte MSA?
Larry: It’s been about four years since I bought a house in Charlotte. We buy houses all over the Carolinas.
Kandas: Right. However that MSA, the hotness of that MSA is going to trickle down to those sleepy towns that we do invest in right outside of the MSA.
Larry: The sleepy towns. Is that another word for bedroom community?
Kandas: Yes. Yours sound dirty but okay.
Larry: I’m pretty sure my term is the correct terminology? Am I right Chad?
Chad: You’re correct sir.
Kandas: Seriously Chad?
Larry: Sleepy town.
Kandas: It means the same thing, sleepy town.
Larry: I think they understood my terminology better.
Kandas: As people that leave the MSA to go to sleep and then they come back to go to work.
Larry: Right, there you go. So yeah don’t get hang up on the MSAs, we buy a lot outside of the big cities. But you want to look for areas that have low prices for fix and flips and also the areas or cities or MSAs that have lower prices. And what I mean by that is if you’re in an area like LA or San Diego, you’re going to have the median priced home as $300,000, $400,000, $800,000, right. So if you’re in an area where the median priced house is 100 to 150 or 100 to 200, there’s going to be more landlords there, right.
Larry: And you also want to look in areas that are older versus newer, okay. That’s important as well. And just a few resources,
Kandas: Now how old are you talking when you’re saying older versus newer.
Larry: I’m talking Phoenix versus Pittsburg.
Kandas: There you go. So you just wanted to make that clarification.
Larry: Or Las Vegas versus St. Louis.
Larry: I mean you can tell which one is- they don’t have a lot of older inventory that need rehabbing.
Kandas: Just wanted to give the people a little something.
Larry: Good. That’s why we’re here. Give, give, give and never take. So there’s also you can get a lot of good data at realtor.com, at listsource.com to find out the amount of transactions, the amount of investor transactions versus owner occupied. You can get employment information at bls.gov and another really good site is zillow.com/local-info, right. So that’s step number one pick a market, okay.
Kandas: Pick it.
Larry: Step number two is going to be setting up your business, right. and what we’re primarily talking about here to do your first deal in 60 days or less, we’re going to talk wholesaling, real estate day trading I wrote the book about it, right, Getting Started in Real Estate Day Trading. You can get in touch with Kandas to get your copy of it here in a second.
But I’ve had a lot of people that have done their own personal name. Now am I recommending it? Not necessarily no. I’m not but a lot of people have. But that’s the second step is you got to do, if you got to have some asset protection right. So you need to set up an entity doesn’t need to be an LLC, doesn’t need to be a C-Corp.
Kandas: Now would you say that this has to be done before somebody just gets started at all? Does this need to be in place before somebody just is like you know what I’m going to try this out and I’m going to do a deal.
Larry: Well that’s kind of what I just said a minute ago in a sense. So I’ve seen many people do their first deal to make sure they like it, it’s something they want to do before they ever set up an LLC.
Kandas: But you’re going to get hit pretty hard on taxes when you do it that way.
Larry: Well it depends.
Kandas: Don’t you think?
Larry: That’s not necessarily true. The entity you’re in does not really matter as far as taxes depending on what you do.
Larry: But you could set up a corporation, it could be a C-Corp or an S-Corp, it could be an LLC taxed and as S-Corp or taxed as a disregarded entity. There’s many different things plus you can do deals in your retirement account. So if you want to get more information on that as well as the book, contact Kandas, right.
Kandas: Right. We’ve got two books that are in the investors’ kit actually. Getting Started in Real Estate Day Trading and HUD Homes Half Off are both in the investors’ kit. You can give me a call 877-LARRY-GO and we can get you set up with that.
[08:44] [Break] [09:01]
Kandas: Welcome back.
Larry: To BRAG Radio, leading the world to be rich and generous.
Kandas: I didn’t know if you were ready.
Larry: We’re over here swapping candy, WBT is really nice to us, they give us candy, they give us cupcakes, they give us water with our show name on them, as well as boxed water. Boxed water is better.
Kandas: Box water.
Larry: There you have it. So we’re talking on the show about investining in real estate how to do your first deal in 60 days or less, right Kandas?
Kandas: First or next.
Larry: First or next deal in 60 days or less, right.
Kandas: See I don’t want to lose the people that have already done a deal and they’re like, “Oh well I don’t need any of this stuff.” I guarantee you that there’s something that you’ve forgotten.
Larry: That’s exactly right. So the first step was picking a market. You got to understand what market you’re going to be in. second step is setting up your business.
Kandas: Setting up the business.
Larry: Setting up your business whether you need an LLC or a corporation. Corporation could be taxed as a C-Corp or an S-Corp an LLC could be taxed as a partnership or an S-Corp or as a disregarded entity. There’s many different ways to do it and when you get ready we are here to help you, right.
Larry: We know what we’re doing, we’ve helped many people and we can help you as well. So step number three in doing your first or next deal in 60 days or less is marketing, right marketing.
Kandas: It is something that’s very important. And I mean we do a bunch of different types of marketing, we have a bunch of different avenues for marketing. And sometimes just having one sole one is a good way to get started so that you can make sure that you optimize that particular avenue that one time. But don’t leave yourself that being your only avenue.
Kandas: I’m saying.
Larry: Alright. So let’s talk about some different ways to market to generate some leads okay. First of all, as opposed to marketing there are sources out there that you can get properties like HUD.
Larry: We still buy a lot of HUD houses.
Kandas: We do.
Larry: Are you eating?
Kandas: [Inaudible] [11:02].
Larry: Good job Kandas.
Kandas: Thanks for calling that like I can tuck it in my cheek and you can’t tell.
Larry: You’re going to mess around and get us fired or something.
Kandas: I’m telling you. It would be me, of the two of us really you think? No.
Larry: This might be our last show.
Kandas: Will you stop.
Larry: Anyway, let’s talk about marketing.
Kandas: You’re wasting time. Squirrel.
Larry: So let’s talk about HUD, alright.
Kandas: Go for it.
Larry: HUD out of the 12 or 13 deals we have on the board right now, we’ve got a deal board and if you guys want to come to the office if you’re close by you can come to the office take an office tour and see the deals we have on the board meet all of our team. But six or seven of those 12 or 13 deals are HUD houses.
Kandas: That’s right.
Larry: So I would be the first one to tell you I love HUD, I mean I wrote a book about it. You guys could get a free copy by reaching out to Kandas HUD Homes Half Off. But there are fewer HUD houses now that there used to be. I remember a time when there was 150 HUD houses available at any given time in North Carolina. Now it’s probably like 50 or 60, right.
Kandas: Right. And I mean it dropped below that. It dropped down to hardly nothing there for a while but it has come back and we are able to get deals still.
Larry: Right, exactly. The next is MLS. There are MLS deals out there available. And I will also be the first one to tell you that there’s not as many MLS deals as there used to be, right.
Kandas: It’s getting tight.
Larry: We’ve got a couple of our deals are MLS but the rest of them there’s other types of marketing that you need to do to make the phone ring. You got to make the phone ring, that’s very important.
Kandas: But if you make the phone ring, answer the phone.
Larry: Yeah well we’re going to get to that, that’s another step. Simmer down, you’re getting ahead of yourself okay.
Kandas: Well and that just came up like this week, last week something like that.
Kandas: So it’s a fresh sore spot for me.
Larry: So with marketing there’s a lot of different ways that you can generate what we call motivated seller leads. The first way I want to talk about is direct mail. Now there’s postcards versus letters okay. You could do letters, you could do postcards. I prefer postcards because number one it’s cheaper and number two they don’t have to open up the envelope right. They don’t even have to open up the envelope it’s already open.
Kandas: So think about how many people see that postcard coming through. And if they’re nosey like most people are, they’re going to take a look at it.
Larry: Who sees that other than the mail carriers?
Larry: Are you saying our postal employees are nosey and they’re looking at our mail?
Kandas: Are you saying they’re not?
Larry: I don’t know. I have no idea. But I’m going to continue to receive my mail.
Kandas: I’m just saying if it’s a postcard, pretty easy to view.
Larry: All they have to do is whip out their phone and take a picture of it right.
Kandas: That’s all they got to do.
Larry: I don’t think that would- I would be fine with that.
Kandas: Of course you would be. They could become a birddog or something.
Larry: So there are a lot of different kinds of postcards. Some people like generic postcards and some people like what’s called branded. Branded would have your company like our company Investors Rehab or Neighborhood Housing Group which are a couple of our companies. You could have a branded postcard or you could have generic.
Generic would just say simply, ‘I buy houses’, or ‘We buy houses’, or something like that, right. We also use the brands larrybuysbouses.com as well as Gaby with one B, gabybuyshouses.com as well. And we just recently set up kandasbuyshouses.com, right.
Kandas: Well we set it up but it’s not pulling anything yet.
Larry: I don’t think we’re using it. Yeah we could use that. So direct mail is really good. Next I want to talk about is pay-per-click advertising, right.
Larry: A lot of people think you say paper clip. Paper clip, how am I using a paper clip ad? That’s why I go pay-per-click, right.
Larry: So you see a lot of ads on Google, you go to websites and also Facebook. Facebook marketing and Facebook advertising is really hot right now. It really is. So there’s Facebook ads, you could hire somebody to do it for you or you can do it yourself. There’s other sources out there and we can help you with those sources.
You just got to know what kind of budget you have to work with because there are some sources out there, they don’t want to mess with you unless you’re going to spend $5,000 a month, right.
Kandas: That’s right and I mean they’re a niche though. They’ve got a niche market and that’s the caliber of investor that they are comfortable hiring. That’s not the only caliber that other companies can hire though. So you’ll be able to find somebody if you want somebody to do it for you.
Larry: Right or you could just learn how to do it yourself.
Kandas: You could.
Larry: There’s courses and training out there on doing that as well. Next source for generating leads is what we call cold calling. Now I‘m not talking about just picking up the phone and randomly dialing numbers or dialing everybody on the street.
Kandas: I think this is my least favorite.
Larry: Well you can take your direct mail list and you can upload it and have it appended. There’s appending services that they’ll take an address and a name and they’ll look up a phone number, and then you upload that to a source-or not a source- a predictive dialing machine like Mojo or something like that.
And it will dial the numbers for you. And then whenever somebody gets on the phone it will let you know and then you start talking to them. You don’t have to dial anything, it’s just dialing for you.
Kandas: Right I know. I think my thing is it’s still cold calling. I would rather somebody else take the initiative and call me than me calling out there.
Larry: Well and that’s a really good point. That’s the difference between marketing versus processing.
Kandas: I know. Prospecting.
Larry: Yeah marketing versus prospecting, what did I say?
Kandas: Right you said processing.
Larry: Oh okay.
Kandas: What’s in your water today?
Larry: I don’t know but I’m not eating candy right now.
Larry: You got a big pile of wrappers over there. Let me knock these last two out before we go to break.
Kandas: Okay go ahead.
Larry: You’ve got door knocking, you could hire a service to do that. They’ll put out postcards for you. You can also put out bandit signs. Everybody sees the signs all over town that say ‘We buy houses’ or ‘I buy houses’. And then you could also get your own website. We have really good websites we could make those recommendations for you as well. And these marketing tips, these marketing strategies as well as about 63 more are in the book Getting Started in Real Estate Day Trading, right.
Kandas: About or 63?
Larry: There are 63 more because there are 67 total ways to find deals.
Kandas: I knew he knew the exact number that was just too coincidental for that to not be accurate. But yes they are in the real estate day trading book that’s included with the investor’s kit. You guys can get that along with some of our links for our deeper training material, a copy of the HUD Homes Half Off book. Schedule an office tour with me, talk about upcoming three day events, anything and everything. Give me a call 877-LARRY-GO or you could text the word BRAG to 803-897-6063. That’s BRAG 803-897-6063.
[18:12] [Break] [18:36]
Kandas: Welcome back to BRAG Radio, all about investing in real estate to be rich and generous.
Larry: It’s all about real estate investining, that’s what we’re here for.
Kandas: All real estate all the time.
Larry: To teach you real estate investining.
Kandas: Half the time.
Larry: What to do and how to do it. And today we’re talking about how to do your first or next as Kandas says, deal in the next 60 days or less. We’ve actually had many students that have done their first deal in as a quick as three weeks, right.
Kandas: Oh I know it.
Larry: Now I’m not telling you, you can go out there and do it because I don’t know how smart you are.
Kandas: Or how dedicated.
Larry: Or how dedicated or how much you’re going to work, right.
Larry: That sounded kind of bad on my part didn’t it? When I said I don’t know how smart you are, right.
Kandas: Well I mean it’s the truth. You never know.
Larry: There you go. So the first step was picking a market because I don’t know where you’re listening to this from. We have listeners all over the country even around the world. So I don’t know you got to pick a market. Step number two was setting up your business, you got to have some asset protection and entity structuring.
Step number three is marketing, we went over six, four, five we went over four of the 67 ways to be able to market to get deals. The rest of them are found in the book, Getting Started in Real Estate Day Trading. Step number four is once you’ve got your marketing, now the phone is going to start ringing, right.
Larry: And it’s time to answer the phone. Now first thing you got to do is make a decision. Do I want to live answer or do I want it to go to a voice mail so I call them back? Now I have an opinion about that.
Kandas: You also have to decide not to freak out when the phone start ringing.
Larry: Yeah depending on how much you market, your phone may ring off the hook, depending on how much direct mail you’re going to send out.
Larry: Or how many ads you’re going to run and all that good stuff. So are you going to do a live answer or a voice mail? Now you could set up a voice mail system you need a good script. We’ve got scripts we can help you with but you can set up a script to where it goes straight to voice mail. It’s an automated 24/7 message center. And some people actually prefer that versus having to speak to a live person until they find out a little bit more information, right.
But I prefer the live answer. You also want to set up different numbers for your different marketing. So that way you can tell your lead source. We have a different number for each lead source. Like a number for direct mail or a number for Facebook ads or number for bandit signs and a number for Craigslist ads.
So we can tell when the phone rings what number they’re calling. Our call system will let us show the caller ID of the number they called not necessarily the number they’re calling from. So we can put that number in our phone and we know, hey this is a Facebook lead or this is a direct mail lead. So once you determine that-
Kandas: Do the scripts change based on the number that’s calling?
Larry: Absolutely the scripts will change yeah.
Kandas: Right okay.
Larry: Yeah based on what they’re calling from, how they’re calling or whatever then the script will change from live answer versus
Kandas: Voice mail too.
Larry: Right. So here’s what I want to talk about now as far as taking calls. The absolute best person to take the calls [Inaudible] [21:41] is you, right. You are the owner, you’re the one that wants to buy the property. You’re the one that’s going to go out and look at the house unless you’re doing virtual investing. So you are going to be able to do this yourself.
So if you can’t answer it, you could have an acquisitions manager. Somebody who is going to go out look at the house or is going to make the offer. If you can’t have an acquisition manager have an in-house lead manager. That’s what we have. We have an in-house lead manager that takes all of the incoming calls both buyers and sellers.
And then he doles them out to the acquisition managers and to our sales guy which is called an asset manager okay. And if you don’t have a lead manager or you don’t have an acquisition manager and you can’t answer it, you can have a virtual lead manager.
I mean there’s companies out there that will take those calls for you. Like there’s a company called Seller Snipers and that’s what they do, is they take all incoming lead calls from motivated sellers. And then you can also hire a service like Pat Live.
There’s a Pat Live service that you can get and they’re very familiar with real estate, they have a real estate team, or you could a virtual assistant maybe in the Philippines or something like that. But that is the next step is being able to take the calls. And I highly suggest having them taken live versus a voice mail message if possible. Does that make sense Kandas?
Kandas: It does. Aren’t there stats on that too?
Larry: Yeah I know a lot of different people, our students as well other fellow mastermind members and stuff like that that have share that if you’re going to generate a lead, your best possible outcome would be by answering the phone live. And I will tell you this, if you’re generating the lead on Facebook or on pay-per-click in other words if it’s an online lead.
Larry: If you don’t call them back, if you don’t answer it live and you don’t call them back within five minutes, your likelihood of ever getting a deal is cut in half, 50%.
Kandas: Right there.
Larry: Right on the spot. And if you don’t get them on the phone within 24 hours, it cuts down to 90%. So you have a 10% chance or ever doing anything with this person if you can’t get them on the phone in 24 hours, right. And that’s from other people who’re in the business sharing stats.
Larry: So it’s very important especially an online lead if you’re generating a lead on Facebook of pay-per-click it’s very important. So now once we’ve taken the call, once you get them on the phone, let’s talk a little bit about negotiating. It’s very important that you understand a little bit about sales and negotiating, that’s very important.
Kandas: There are some really good books out there on negotiating and sales.
Larry: There are some books. The one that you and I both just read is Never Split the Difference, right.
Larry: That’s a good one.
Kandas: I finished it a while ago yeah.
Larry: Yeah or you’ve listened to it a couple of times.
Kandas: I have.
Larry: Right. So I think I’ve listened to it one and a half times or twice maybe something. But anyway there’s a lot of good books out there on negotiating, on sales and in our training in our books and in our trainings we have complete chapters on negotiating. But what you want to try to do if you can is negotiate the deal over the phone.
Because remember we’re going to day trade this deal, we’re going to wholesale this property. We’re not going to buy and hold it and fix and flip it. We want to get it under contract, find a buyer, turn around and sell it and put 10 to $20,000 in our pocket. Right Kandas?
Kandas: That’s what I want.
Larry: That’s the key right there. So there you go.
Kandas: That’s what I want to do.
Larry: So first of all you need a good script, right. You need to sit down and take a little bit of time and put together a good script. You also need to learn to handle objections I mean what if you’re trying to make them an offer on the phone and they say, “Well I don’t want to talk on the phone.”
“I want you to come out and look at my house. How can you make an offer if you don’t come out and look at the house? You got to see the house.” So you got to know how to handle those objections. You got to know what to say and how to say it, right.
Kandas: Confidently right, yeah.
Larry: Exactly. And then the other key is follow up because you’re not going to buy it on your first phone call, right.
Kandas: Nine times out of 10 no.
Larry: That’s exactly right. You’re not going to buy it on the first phone call. so step number six is to analyze the deal, right. You got to analyze the deal, if I’m going to buy it and sell it the same day, aka real estate day trading, like the book, how to-what is the book?
Larry: Getting Started In Real Estate Day Trading.
Kandas: Getting started. Is that what next week it’s going to be too?
Larry: No, I told you.
Kandas: I didn’t think so.
Larry: I told you that already. But the book is Getting Started in Real Estate Day Trading: How to Buy and Sell Houses the Same Day Using the Internet. Available wherever books are sold.
Kandas: Or by calling Kandas.
Larry: Or call Kandas. So the next step number six is to analyze a deal. You got to be able to analyze a deal. And to do this, to day trade real estate it’s very simple. You take the ARV which is After Repaired Value, in other words what is this property going to be worth once it’s fixed up, times 0.7, 70% and then you minus out repairs, you minus out closing cost, and you minus out what you want to make. If you want to make 10 grand, right for example.
And that equals the most you can pay for a property okay. And it’s as simple as that. Realistically we used to have an analyzer that we use, we don’t even use it anymore. You can do these numbers in your head.
Kandas: If it’s a deal you don’t need to calculate it.
Larry: That’s exactly right. And step number seven is the contracts, okay. You got to have really good paperwork and included in the book is some contract as a well, right Kandas?
Kandas: That’s right. So the book Getting Started in Real Estate Day Trading, the book HUD Homes Half Off, some links to some webinar trainings for a little bit deeper education are all available if you give me a call 877-LARRY-GO. You can send me an email to firstname.lastname@example.org or text the word BRAG to 803-897-6063, the word BRAG, B-R-A-G. We’ll be right back.
[27:41] [Break] [27:57]
Larry: Welcome back to BRAG Radio, leading the world to be rich.
Kandas: And generous.
Larry: There you have it.
Kandas: Most generous.
Larry: It’s all about investining in real estate, right.
Kandas: Most of the time.
Larry: To be rich and generous. And today we’re talking about how to do your first or next deal in 60 days or less. We’ve gone through many steps already. First step pick a market, right pick a market.
Kandas: Sounds simple but you’re coming to introduce some tips on that.
Larry: Well there’s some steps and we can help you with that. Second step is setting up your business. Do you need an LLC, do you need a corporation how does it need to be taxed, we can make recommendations with that as well and put you in touch with the right people. Next step number three is marketing, make the phone ring, right.
Kandas: Make it ring.
Larry: That’s right. And then next is answering the phone. What are you going to say? How are you going to say it? Right.
Kandas: Yeah don’t freak out when you make it ring.
Larry: That’s right. Next step is negotiating over the phone. You got to be able to sell the seller.
Kandas: That’s right.
Larry: You got to get your offer out there in a way that gets them to like you and trust you and leaves the door open for them to call you back.
Kandas: Without having to go out to the house.
Larry: Exactly. Because we teach virtual investing, right.
Larry: Virtual investing.
Kandas: And it’s really important if you’re in one of those markets that we were talking about earlier.
Larry: That’s right.
Kandas: If you guys weren’t able to listen to the earlier segments of the show, just go to bragradio.com and the whole show will be posted there.
Larry: That’s right. And the next step we talked about was analyzing a deal. You got to be able to analyze a deal so you can buy it and sell it put 10 grand in your pocket.
Kandas: If it’s a deal like we do you don’t need a calculator.
Larry: There you go. You don’t even need a calculator. Step number seven contracts. Just before the break we mentioned that.
Larry: You need a good contract to buy, a good contract to sell if you cannot assign the deal. And you also need a good assignment agreement, right.
Larry: And we can help you with all that stuff as well. You need that and now once you get the deal under contract step number eight is due diligence, right due diligence. Some of the things you want to do for your due diligence is you want to drive the street online, you want to go see it if you can. If it’s close by we go see it, right.
Kandas: If it’s close enough.
Larry: But if it’s far away you can drive the street online, Google Maps.
Kandas: I recommend that anyway.
Larry: Google Maps and them you’re going to pull comps. That’s comparable sales what are other similar houses selling for in that neighborhood? You can pull those on Zillow.com. You can also pull them on a site called realquest.com as well. Next thing you’re going to do is pull rent comps. You want to know what the property will rent for because it might be a rental type property that you’re going to sell to a landlord.
Larry: So you need to know what kind of money it will bring in so you know exactly how much you could sell that property for. And then you want to get pictures. Whether it’s you going out to get pictures.
Kandas: Lots of pictures.
Larry: A lot of pictures. We usually get about 100 pictures for every house.
Kandas: Love the pictures.
Larry: Yeah the thing about that is we want to take pictures every room, any mechanical items, any repair areas, all four sides of the house, any out buildings, street view both ways.
Larry: Anything. If there’s a hole in the wall behind the doorknob we want to have a picture of it. We want to know.
Kandas: And you also want to take pictures on if there’s nothing wrong with it if it’s going to be one that you could easily either assign or actually whatever you’re going to do to it, you could also take sales pictures too while you’re in there so sell it.
Not just to buy it and show to prospective buyers for wholesaling that are going to fix it up and flip it. But you want those pretty pictures too, and Dan is really good about that, the doorway pictures, making the rooms seem really large and things like that.
Larry: Right. And we also take a video, we start at the front door. He turns on his phone and starts video recording. And he walks through the front door and he walks you through the entire house describing every room.
Larry: So that really helps too to show houses and to get buyers. We’ve sold many houses guys that person never even went looked at it, right.
Larry: Never even went to see it, because we have so many pictures, we have a video, we have street view, we have comps we have all that stuff, right. And then other part of the due diligence you want to do is call other realtors or property managers in the area and get their opinion as to the value of the house and that was step number eight.
Step number nine is now that you’ve got your due diligence, we’ve got to start building our buyers’ list to sell this property. Now I know it’s step number nine but I always tell people, work as hard at building your buyers’ list as you do at finding properties.
Kandas: Because what?
Larry: Because it’s much easier to find a house for a buyer than a buyer for a house. See you’ve heard this before.
Kandas: I have.
Larry: And you weren’t eating candy so you could speak.
Kandas: I knew it was coming. I’m out of candy the only I have left is cupcake.
Larry: You’re out, here use this bag.
Kandas: No all you have is chocolate.
Larry: Oh you’ve already traded me.
Kandas: All you have is chocolate.
Larry: You’ve already traded me what you liked for what you didn’t like. So anyway.
Kandas: You’re blocking yourself you really don’t want to do that do you?
Larry: I’m blocking myself yeah set the bag of candy down it was blocking the video.
Kandas: Lynn’s looking out.
Larry: Thank you Lynn.
Kandas: You got to be able to see LG.
Larry: So step number nine is building your motivated buyers list. You do that at your local REIA group, there’s Metrolina REIA in Charlotte. There’s real estate investors associations and groups all over the country. Just go to nationalreia.com to find one or you can also go to meetup.com and do a search for real estate in your area, right meetup.com.
And you can also run blind Craigslist ads. What do I mean by that? You run an ad with a property, you don’t even have to have a property available yet. But you find a picture of a property, you put an ad on craigslist that says something like handyman special fixer upper cheap cash. And then when they call, “I’m sorry this property is not available, our properties go very fast, let me add you to my buyers’ list.”
Are you a fix and flip investor? Are you a landlord? Are you looking for a property to live in? And the most important part is are you a cash buyer?
Kandas: Yeah that is very important.
Larry: Because we don’t have time for people to go get a loan, right.
Kandas: Or if we do have time, they’re going to pay more.
Larry: Right, exactly.
Kandas: Your time is valuable.
Larry: Exactly that’s why all of our marketing says Cash Price X, right.
Kandas: It’s true.
Larry: If you want to finance it.
Kandas: It’s going to go up.
Larry: The price is going up baby.
Kandas: If we’ve got to hold up because just like you said earlier, a lot of our properties, we’re trying to day trade. So if we’ve got to extend the contract or if we end up having to close on it we’re going to have holding costs, those are going to be passed on.
Larry: That’s exactly right.
Kandas: And if you’re an investor they should be passed on as well.
Larry: That’s exactly right. Now you could also if you’re selling a property that a rental type property, you could also send postcards to absentee owners in the neighborhood where the house is and have other landlords call you about that house.
Kandas: Great idea
Larry: Right, you’re welcome. So now the next step is after building your buyers’ list we got to get this property. Now remember you’ve been building your buyers’ list all along anyway, right. So what you’re going to do is you’re going to email your buyers’ list.
You need to have some kind of an email service provide like Mail Champ or Constant Contact or something like that. Then you can also text your list. There’s services out there that you can text on. There’s also RVM or Ringless Voicemail. You can have them go right to voicemail.
Kandas: Now some of these like the ringless voicemail depending on the state you just need to kind of follow up with your state guidelines and regulations. Because some of these things are getting protective of the consumers value.
Larry: That is true. But there’s also some attorneys will tell you that RVM or ringless voicemail does not fall into that category because they phone actually never rings.
Kandas: It might fall into that category depending on who interprets the law.
Larry: Right. But also they’re on your buyers’ list and they’ve said, “Add me to your buyers’ list then there’s your permission right there. And bandit signs we put out a lot of bandit signs to sell these properties. And last but not least step number 11 is closing the deal and getting the money, right. Close the deal and get the money.
You’re going to have an attorney or title company handle your closing for you. You want to make sure it’s an investor friendly attorney or title company that’s very important. You’re going to send them your contract and your assignment. I haven’t personally attended a closing in years, we give them what’s called a limited POA or Power of Attorney.
Kandas: That’s right I was getting ready to say that it’s even been a little bit since we’ve had to sign on a closing.
Larry: That’s right. So there’s your step; pick a market, set up your business, analyze deals, marketing, taking calls, negotiating, contracts, due diligence, buyers’ list, sell it, close it and get paid. So guys you can do this, you can do your own deal in less than 60 days if you want to, or if you want me to help you I’ll be glad to help you. That’s what we do.
Just go to www.larryhgoins.com/apply to work with me and my team. We will personally mentor you and coach you and help you. It’s not for everybody, it’s for those that want to run, that want to do a deal really quick and get their business up and running www.larrygoins.com/apply.
Thank you Larry and Kandas. If you’d like more information about what Larry and Kandas talked about or like a free investor’s kit or to schedule a tour of the office, call 877-LARRY-GO, that’s 877-527-7946, 877-LARRY-GO. You can also text the word BRAG to 803-897-6063. It’s BRAG Radio be rich and generous on News Talk 1110993WBT.
[End of Recording] [37:51]