In this episode, Larry and Kandas discussed how the market has changed and the importance of keeping up with said changes. They also shared how change in the market has led them to do direct mail. In addition, they also talked about some of the lists you can tap into and the criteria you need to take into account.
Larry: Hello, hello, hello. How is everybody doing? What’s happening? Good to see you, good to see you. Got people logging on. That’s awesome, that’s awesome. So, this is Larry Goins welcome to BRAG. I’m really excited you are here. It’s awesome. We were little late getting an email out today and look here comes the co-star of the show.
Kandas: My email went out on time.
Larry: It did?
Kandas: Well, it went out for when it usually goes out 5 to 10 minutes beforehand.
Larry: 5 to 10 minutes before?
Larry: Good. So, welcome to the show. Todd Toback is in the house. What’s up buddy? How you been? He is an awesome dude, man. He is really good. He is on the West Coast crushing it, doing the wholesaling and some other dish. Shawna is on the line, that’s awesome. So, we got a 3-day event coming up and I want to introduce you guys real quick to somebody that’s going to be at the 3-day event. If you haven’t signed up for it, let’s see, do we have a link right here, we do have a few seats left for larrygoinslive.
Kandas: Hey, Korn.
Larry: Korn. What’s up? Kornis in the house. I texted him yesterday.
Kandas: I texted him today.
Larry: Oh, okay you got me beat. I saw a Roush Mustang yesterday on the road and I took a picture of it and send to him.
Kandas: See, I have to text him, I’m kind of, while I’m not even slick about it. He knows what I am going to do. I have to say good morning or some type of opening remark and then like “Hey, where is this? Where is this in the office?”
Larry: That’s awesome. That’s awesome. So, we do have a few seats left for the 3-day event and at the 3-day event, we will be… yeah Todd, you tell them. Sign up now. Sign up now. Larrygoinslive.com, right? You tell them Todd. I appreciate you watching. I watch his show yesterday.
Larry: I was in the car and I watched his show. Yeah, he’s got a good show going on. So, at the event, it’s going to be Dan. Dan come over here.
Kandas: You guys stand in the corner.
Larry: Yeah, just, just come on over here for a sec...
Kandas: This corner right here.
Larry: Either one, wherever you want to go. Just come over here. Guys, this is Dan Albitz.
Dan: What’s happening?
Larry: Also known as cheapy D.
Kandas: Discount Dan.
Dan: Discount Dan.
Larry: Discount Dan, cheapy D.
Dan: What’s going on?
Larry: That’s because we sell all the cheap houses, right? We have, we have 3 closings tomorrow right?
Dan: We do, yeah.
Larry: Tell them about some of the deals that you got into sold.
Dan: I mean we sold, I mean we sold the couple houses last week for only 15,000 bucks each. We got those cheap. I don’t know if you want me to give numbers and specifics, but…
Larry: Yeah, that would be great.
Dan: I mean one of them…
Larry: Let people know what we got.
Dan: Yeah, we got 2 houses for 4,500 bucks each and we also wholesale those for 15,000 each, one of them have 4 acres, so to secure our deal our buyers are really happy, we are happy, everybody is, you know, making money and at the end of the day everybody is really happy.
Larry: But what about the Lancaster Six those were even cheaper.
Dan: Yeah. So, that 6 properties we sold a total for $50,000.
Kandas: Yeah, this was a bulk purchase and a bulk consignment, so…
Dan: 2100 a month cash flow which is a fantastic number for a $50,000 investment, so our buyer is really happy to get those and we got a few closing this week. It’s a great little deal, 3-bedroom houses we are selling for 15 grand, 29 grand and just really we are rocking and rolling, so…
Larry: That’s awesome.
Dan: A lot of great off market deals. So, yeah.
Larry: That is awesome. That’s awesome. And Dan you are going to be at the 3-day this weekend right?
Larry: He is going to be there selling cheapy houses.
Kandas: The ones that we have left, yeah.
Dan: Looking forward to making some new friends and networking and hopefully we can help with people out, help some people out get them some deals on great properties.
Larry: That’s awesome. That’s awesome. So, Dan I really appreciate it. Guys, how would they reach you if they wanted to find out about cheap properties?
Dan: Yeah, if you want to reach me, my email is email@example.com, so shoot me an email, I’ll get right back in touch with you and we can talk about some properties.
Larry: Awesome. What’s your phone number?
Dan: My phone number is 803-602-4107.
Larry: Awesome. Awesome.
Larry: Cheapy D will be at the 3-day.
Dan: Take care everybody.
Larry: So, for those of you if you haven’t seen the show before, if you are brand new to us you can get a free Investors Kit by calling 877-LARRY-GO, there is a lot of stuff in the Investors Kit. What do they have? Tell us what they have?
Kandas: Tell us what they have. Last week Z did that for us but you’ve got the digital HUD Homes Half Off Book, you’ve got the digital Real Estate Day Training Book, Filthy Riches webinar, I’m not sure if, I think the HUD Mastery webinar is in there now too. Not sure if Hard Money Millions Information is in there, but how to be a hard money lender, borrow hard money, be a broker for that. There are all kinds of links to additional education and things like that in the Investors Kit that kind of just gives you an overview of everything that we have done or that we do.
Larry: Awesome. Awesome. Sweet. You could call 877-LARRY-GO or you could also text the word BRAG to 803-897-6063 and next week we are giving away a free HUD Jump Start course. I wrote a book called HUD Homes Half Off.
Kandas: If you didn’t know he only mentions it every time he talks.
Larry: Every time, every time. So… anyway, so we also have a course called HUD Jump Start and if you share this video, right? Just go ahead and click share right now while you are watching, right now, just go ahead and click share and we will choose a winner from someone who shares and it’s not like we get hundreds of shares…
Larry: Yet. Right? I knew that was coming. Hundreds of shares yet, but if you will share this video then I’ll just pick a winner next week just like I pick this winner right here, Jasmine Brumfield.
Larry: Jasmine Brumfield and she might even be on here. She made a lot of comments last week. So, Jasmine all you have to do is email customer service at larrygoins.com and we will send you all of the information for our free Ultimate Buying and Selling Machine.
Kandas: That’s right.
Larry: Look who is in the house. Magnus all the way from… Magnus is all the way from I want to say, it’s not Australia, it’s not… where is it… it’s New Zealand or somewhere… Magnus where is it you are from? Tell us.
Give us a shoutout. I can’t remember where he is from. He is from way over under somewhere and he has been to our office right here. He is from overseas. So…
Kandas: Far away down here and did you notice that I have our shirt on today? I have one of our shirts on.
Larry: Good. Look…
Larry: She has a TGG shirt.
Kandas: I can’t see what you guys see but I’ve got this thing about t-shirts. I love t-shirts, so a lot of the people in our masterminds have t-shirts that promote their business and they bring them in and just give them out or whatever. So, there have been several instances where some of our mastermind partners have sent a message or a text or something liking the advertisement, I guess more or less.
Larry: Yeah, yeah, yeah.
Kandas: That I do for them, so you guys must be Googling the image that the logo that you see on my shirts. So, I wanted to point out to Larry today that I have one of our shirts.
Larry: There you go.
Kandas: Instead of…
Larry: Instead of someone else’s. Last week it was a Van Halen shirt.
Kandas: Well then, I mean you can’t go wrong with the Van Halen shirt.
Larry: That’s true.
Kandas: But, I wanted to point that out that I have one of our logo shirts instead of one of our partners.
Larry: That’s awesome. That’s awesome. That’s good. So, Magnus is from Sweden. I forgot about that. We talked a lot about that while he was here, right? So, yeah, look Allen Orr says “Hi to Dean.” Right?
Kandas: We will.
Larry: They might drop by in a few minutes. I asked them to come out here if they had just a minute. So, let’s jump right here. Let’s talk about the deal of the weekends.
Larry: So, it’s always difficult for me to try to figure out which deal I want to talk about because they are all unique. Right?
Kandas: They’ve all got something. We nicknamed this…
Larry: It’s not even really about… we do nickname them. Like we have the Lancaster Six and now we have the snake house.
Larry: And I’m getting ready to tell you why, why it’s called…
Kandas: That’s your deal of the week?
Larry: That’s my deal of the week. Right.
Larry: So, this is a deal that first of all I got to tell you guys, we do a lot of direct mail, we are going to talk about direct mail marketing list and criteria and stuff like that in a few minutes, okay? Anyway, we are going to talk about that but this lady. I’ve been working with this lady for I don’t know at least 8 weeks, at least 2 months.
Kandas: At least, at least 2 months.
Larry: Right? So, what was funny was we mailed the same person every single month, right? So, this lady keeps telling me, “Look, I got to give as much as I can out of it. I got to get as much as I can, so just call me back, call me back.” And I call this lady like every 3 or 4 days. So, the other day the phone rings and I answered it and she says “Yeah, I got this postcard in the mail.” I said Nancy, that’s the second or third postcard I’ve sent you. I have been calling you every 3 days. “Oh, I didn’t know it was you.” I’m just, I’m still trying to get as much as I can.
Kandas: Now, she is trying to get the best deal possible. She really was. She is looking at all of her options. She is talking to everybody…
Larry: Realtors too.
Kandas: She is trying to do her due diligence and make sure that she’s got her teeth crossed and her eyes dotted and she is getting the most she can out of this property, so 2 months we have been hanging on this. Just second, again.
Larry: So, and she finally called me back, right? She finally called me back and she said “Larry I’m getting ready to lose my house in 15 days. Can you help?”
Kandas: I’m ready to take…
Larry: I’m ready now. I’m ready now.
Kandas: That’s what she said.
Kandas: I’m ready to take your offer. I need to close in 15 days.
Larry: That’s right. So, I went up to the house yesterday, okay, and by the way I had my phone in my pocket like this, so you could see the camera and I recorded it from my partner program students so signing the contract and going through the house and everything, but I got to tell you, I go in the house and you will be amaze to some of these deals at the stuff that they leave. Right? I’m talking to antique furniture, all kind of stuff that’s worth a lot of money, right? But the problem is a place like 1800 got junk, they want to charge you thousands just to haul it away, right? I wish I had somebody that would just take it away and give me half the money they make out of something, right?
Kandas: You are, you are off the point.
Larry: Anyway, I am off. So, so I’m going through this house and I’m walking around the house and I always, always, always, when you are going through a house of somebody, if there is a closed door, don’t just walk through it. You want to say something like are there any dogs or naked people I need to know about in this door, right?
Kandas: Or whatever else you want to throw in there.
Kandas: It does not have to be naked people hugging and followed at somewhere.
Larry: That’s true. That’s true. So, I got to open up this one closet door in the leaving room and she said “All that is just the hot water heater.” Right? So, I open up the door and there is the hot water heater, okay, and I’m looking at the hot water heater, I’m like, there is a line and I don’t remember seeing. It’s kind of a curvy line, I’m like…
Kandas: A curvy line?
Larry: Wait a minute, somebody left a toy snake. Wait a minute it’s moving. I couldn’t believe this. There was a snake on top of the hot water heater curling around, moving around. I could not believe this. So…
Kandas: You can get out.
Larry: I said Nancy there is a snake in here. And here’s the funniest part, she said “That’s the 5th one this week.” I can’t believe it.
Kandas: What’s so funny which I don’t know, what’s so funny to me about this story is I heard it last night because I was on the phone when he was looking at houses. I heard it 4 times this morning. I heard it 4 times this morning. And then now I am hearing it again. That’s 6 times in a period of 24 hours.
Kandas: His laugh with this story does not change. He is…
Larry: It still just as funny.
Kandas: So funny. It is so funny to him. I’m laughing because he still get fatigued out of this property.
Larry: I cracked myself up.
Kandas: Somebody is got to laugh at him.
Larry: That’s funny. That’s funny. So anyway, here comes our great grandson-in-law, right? And she yells at him, she said “Go get the knife.” It was so funny.
Kandas: Every time. So funny.
Larry: So, anyway, so by the time…
Kandas: What was the rat for them?
Larry: The what?
Kandas: What was the snake for?
Larry: What was the snake for? Oh, yeah, I forgot that part. She said, “Oh, they’re just in here trying to eat the mice.” I said, what?
Kandas: He had made this stuff up.
Larry: You can’t make this stuff up… it was so funny. So, anyway, you know, on a water heater, you may or may not know this, on a water heater, a water heater has the tank part and then there is insulation and then it has the outer tank, right? So, with the outer tank, right? There is insulation there and there is a hole at the top, there is a hole at the top. So, there was a hole at the top and there was a little bit of insulation around, so this snake slowly starts crawling in that hole, so by the time he gets back with the knife, it’s ducking out of site. It’s inside the water heater, right?
Kandas: Where it stayed.
Larry: Where it stayed.
Kandas: For the remainder of Larry’s trip.
Larry: Where it stayed. Yeah, right. I mean I went back over there every once in a while and opened up the door to see if it came back out, right? But so, so we know it has snakes, we know it has mice, right? And we know it needs a lot of work. But that my friends is the deal.
Kandas: Not really because of the numbers, because of the snake. She is going to point that out there.
Larry: Seriously, this deal, this deal, the house right beside it…
Kandas: Is a very good deal.
Larry: Right beside it, it’s almost the exact same house listed for $133,000. I got this house for forty seven five and we are going to wholesale it for fifty nine nine. Yes, it needs paint, carpet, kitchen and bath but somebody’s going to make a decent amount of money on this house. It’s not going to be a $50,000 profit deal but somebody’s going to make a decent amount of money on this house. Once they get rid of all the snakes and the mice and everything else. So, guys that is the deal of the week and the cool thing is it is right close to our office, okay? I couldn’t believe how, I mean it’s only like 3 to 5 minutes away, right? It’s not very far, 3 to 5 miles away probably, something like that.
So, before we talk about direct mail, before we talk about direct mail, I want to introduce you guys to a couple of people that are going to be here at our event this weekend, Dean and Ron. Let me first talk to Dean because Ron is still on the phone. Dean come on over. A lot of you guys know Dean already.
Kandas: Right here in the middle. In the middle.
Larry: Dean, the man, the legend, and the myth right here. So, Caleb, what’s up buddy, how you doing?
Dean: I want to save the questions about the rats and the snakes, people had to be sending in, you know.
Kandas: No! They just keep saying we’re crazy, you crack me up.
Larry: That’s awesome. So, Dean… Dean is our Education Consultant and he’ll be in our 3-day this weekend, sitting down and talking to people one-on-one about their goals, their likes, their dislikes, their strengths or weaknesses, their assets, their liabilities, all that good stuff and he will be working with people to create a MAP, My Action Plan.
Larry: You know, from the event, right? So, yeah, Dean tell them a little bit about yourself. We’ve been working together for years, right?
Dean: A matter of fact, you are the only person who’s been here longer than I am, right?
Kandas: That is not true.
Dean: That is true.
Kandas: I was here in 2004.
Dean: Yeah, but you split your time.
Kandas: I still have 10-year….
Larry: We had a breakup for a while. Yup.
Kandas: I still have 10 years in. I am just on my second term.
Larry: She makes this sound like it’s a prison sentence or something, right?
Kandas: I do. What is that called?
Larry: Look, Dana Kings says “Hi Dean.”
Dean: Hi, girl.
Larry: Somebody else said “Hi Dean” a while ago. Yeah.
Larry: There is Magnus. You remember Magnus from Sweden?
Dean: Yeah. Wait, I want Magnus. How are you my friend?
Kandas: Dapper Dean.
Larry: Dapper Dean.
Kandas: Dapper Dean.
Larry: That’s awesome. That’s awesome. Look… Jose said “Hi, Dean” too.
Dean: [Inaudible] [16:25] I can tell you that.
Kandas: It’s not that bad, yeah.
Dean: It’s enjoyable. It is so rewarding to be able to help people the way that we do here. Not just on the phone, but at the events as well. I mean this is truly amazing, most rewarding job I’ve ever had in my life.
Larry: That’s awesome. That’s awesome. You have helped a lot of people. So, that’s awesome. So, Dean is going to be at the 3 day, the 3 day is tomorrow, Friday, and Saturday and go to larrygoinslive.com to sign up. If you’re local…
Kandas: There are 3 seats. There are only 3 seats left.
Larry: If you are in Sweden, we will take you a little bit longer to get there. You might make it by Friday. Right?
Alright, Ron, come on over. We will introduce you to Ron.
Dean: I look forward to seeing you people there at the event and looking forward to help you get what you wanted.
Larry: Awesome. Thanks Dean.
This is Ron. I’m going to need to lower this a little bit.
Kandas: That’s going to put me in the bad light. That’s like going to chop my head off.
Larry: I know right. So, guys this is Ron Devine, create yourself a fabulous date. See, Ron just got back from like 2 weeks in Phoenix or something, right?
Ron: A little over a week.
Larry: Yeah, it was seemed like 2 weeks to me.
Kandas: Everything is 2 weeks to Larry. We need something 2 weeks. How long you’ve been gone? Two weeks.
Larry: You know that true. That is true.
Ron: Yup it is.
Larry: Yeah. When will you have that book finish?
Ron: Two weeks.
Kandas: It’s the only time frame he knows is two weeks.
Larry: That’s funny. But Ron will also be at our 3-day training right in Charlotte and he is also a senior ad consultant. We have been working together for many, many years as well.
Larry: Whoo-hoo! This sounds like it’s a prison sentence too. That’s hilarious. Not really.
Larry: That’s awesome. That’s awesome. So, yeah, Ron will be able to sit down with you guys one on one and you can also give him a call if you want to 803-831-2858, is that the number?
Ron: Yeah, that’s the main phone.
Larry: Yeah, the main number and 803-831-2858 if you want to talk to Ron or Dean and Mikey is also there as well. They will answer the phone and answer your questions and all that cool stuff as well, right?
Ron: Yes, sir.
Larry: And if you want, if you want to talk about as partnering together, right? About our partner program, we do have a partner program and you can apply larrygoins.com/apply.
Kandas: You didn’t get that link in there today, did you?
Larry: Apparently, I miss that one for some reason.
Ron: Good job.
Larry: I appreciate you.
Ron: Alright, let me get back to work.
Larry: Yeah, alright we will see you. Thank you. Thank you very much. Alright guys let’s talk about some direct mail, okay? Now, we do a lot of…
Kandas: Yes Tom, we have this much fun all the time. It’s very boring.
Larry: I do anyway. It’s like a prison sentence for them.
Kandas: Or this one at least.
Kandas: Not that we have seen, Michael. No snakes out here that we have seen but I will tell I have been looking.
Larry: Well, there you have.
Kandas: I have been checking.
Larry: We have seen them out here before.
Kandas: I’m not a snake fan.
Larry: We have seen them out here before. Okay, so, let’s talk about direct mail. For many, many years I did not do direct mail. We bought all of our houses HUD and MLS, right?
Kandas: It was easy.
Larry: It was easy and I’m a firm believer that both are low-hanging fruit. Now, HUD and MLS is not the low-hanging fruit. It’s more difficult. The market changes, it’s not that I change, it’s not that you change, it’s the market has changed. You’ve got to go along with the market.
Kandas: We have to adapt.
Larry: Right? You have to adapt.
Kandas: You have to be a chameleon.
Larry: You have to learn to adapt, right? So, we started doing direct mail a while back and it’s been… direct mail has been very, very good to me. Right?
Kandas: Fortunate is the word that comes to mind for me. We have been doing very good.
Larry: And you know I just wished I could be on the phone more because, well…
Kandas: Is there a time when you are not on the phone now?
Larry: That’s about the truth.
Kandas: Except when we are doing this?
Larry: That’s about the truth. But I do enjoy it. I do enjoy being on the phone with these people. I mean I have had people try to give me houses, right? I mean, literally give me, “Hey, Larry, just send me the paperwork.” Right? “I’ll sign it over to you.” And I ended up buying the house and paid in 10 grand. But we’ve had people do that and some of them, you know, they call up and they are just like “You know what, I am just curious. I just want to see what you can do, you know, I just want to see what you are going to offer me.” Right? So, first of all you have, you have to set that tone with them and let them know that, you know, hey look, you can get more money in your house if you just fix it up, get it in tip-top shape, list it with the realtor for a year, have people come in through your house every week for a year, and then you might get an offer and then hope they can qualify for a loan, but you go ahead.
Kandas: How’s that sound? That’s usually being questioned? How’s all that sound?
Larry: Yeah, yeah. How’s that sound to you?
Kandas: Then you go in to, you know, the benefits of working with me.
Larry: Right, exactly. But what we want to talk about today, right? What we want to talk about today…
Larry: Yeah, I do this all the time. She makes fun of me when I do that too. So, but what we want to talk about today…
Kandas: I’m not the only one.
Larry: Are the difference… You are the only one I know about. So, anyway, what we want to talk about today are the different kind of list, right?
Larry: There is a lot of it and I’ve got a sheet right here, right? So, there are a lot of different kind of list that you can get and the main list that a lot of people market to are what’s called absentee owners.
Kandas: What’s that?
Larry: The wind is blowing all my stuff. The main list a lot of people market to are absentee owners guys. Now, these are people that they’ve own the property since anywhere, since the beginning of time, up until probably about 10 or 12 , 10 years ago, right? They need to have own it probably at least 10 years unless it is a probate property or inherited property or something like that, right? But if it is a property that you are going after equity, absentee owners, you want them to have owned it at least 10 years. You can set up your criteria for your amount of equity, but I got to tell you guys, I really, really, really like, really like a lower priced properties, okay? The reason I like the lower priced properties, in my criteria when I’m direct mailing, I don’t want anything with the value over 100,000. Now, sometimes I get properties that are over 100 because a person might own 2 or 3 rentals over here or maybe they own a nice fix and flip over here or something, right? A nice house they used to, they used to live in or whatever and now it’s a rental.
Kandas: We talked to you about that too guys where we direct mail out and you may direct mail to one address but you get on the phone with these people and they have got 2 or 3 properties that did not get a postcard, you know, they didn’t get a postcard on or they have one of these higher priced houses in a County that you are not mailing to and then so you just, you developed these conversations and the other houses just kind of appear.
Larry: Right. That’s true. The other thing I like about the lower priced properties, you get more bang for your buck. I tell you what I mean by this. You find more people that have multiple properties, so you don’t buy one, you buy 2, 3, 5, 6, 10 or more from them like of all the deals we have under contract right now, we probably have 28 or 29 deals because we got, I think, 3 under contract yesterday.
Larry: Of all the deals we have under contract right now, I know we have a package of 6 we’re closing on tomorrow, we have a package of 3 that the contract just came back today that we sent out, a package of 3, we have the 2…
Kandas: Two twos.
Kandas: There are two twos.
Larry: Two groups of two properties that we are buying from one seller, so there is a lot of multiple deals out there with a cheap low priced properties. Guys, that’s really, really important stuff, right? So, what you can do is you get more bang for your buck. Not only if you can’t workout a deal on 1 property, you might be able to workout a deal on another one, like we had a guy call us about two cheap houses that he had in Hickory. Well, we couldn’t buy those because they have been vacant for about 5 years.
Kandas: It’s too far gone.
Larry: Too far gone, holes in the roof, all that stuff, right? But he said, “But I got a house over here and if you buy this house, you know, I’ll take X for.” So, we negotiated a deal on that house and the guy we are buying the 6 houses from he just text me just a few minutes ago and he’s got 8 more he wants to sell us, 8 more he wants to sell us. So…
Kandas: So, it’s not only 2, you’ve got to keep in mind too, it’s not only about the deal you are trying to close on the phone with that particular seller at that particular time, you never know what else might come down the pipeline. We didn’t know this guy had other properties, he was even interested in selling other outside the Lancaster 6 until he came into the office to sign closing papers on the Lancaster 6…
Larry: That’s right.
Kandas: And he said, “Well you know, while I’m here I do have another 8 that I’m interested in selling.” So, I mean, you got to foster those relationship and make sure you are building rapport all the way through. Do the best you can. Stay true to your word, on your closing dates. If not, make sure you keep them up-to-date and aware us to what’s going on.
Larry: That’s right.
Kandas: So that you keep building that relationship and it will turn in to more.
Larry: That’s true. And another key with direct mail, you got to have a followup system.
Larry: You need to be following up by email, text, and RVM, that stands for ringless voicemail.
Kandas: As soon as you can, you may not be able to start out with that system in place but as soon as you can get it, the more pieces you put behind the initial call, the more chances you have by getting properties.
Larry: And go back, and look at some of the previous shows. We’ve talked about tools that we use for RVM, for text blasting, for email marketing and CRMs and stuff like that, so we’ve got these tools. John wants to know what area of the country we are marketing in. We’ve done deals in 12 different states but as far as marketing, I love being able to do deals closer. Now, if you are in the market where you can, that’s great. If not, you got to do it virtual. You need boots on the ground. We talked that in the episode about finding boots on the ground, right? But we market in 7 different Counties where we are. And what I have found is, if you are in an MSA like this, once you get out, right? Get out a little bit further, right?
Kandas: If it fits the deal you want to do. You got to keep that in mind too.
Larry: If it fits the deals you want to do. Now, some people like to do luxury homes, higher priced homes, all fix and flip, I personally like the cheap houses, right? Because I get more bang for my buck, I can get multiple properties, I can sell or finance it, I can run it, I can lease option it, I can sell it to a landlord. It’s just to me it’s much cleaner and the older I get the simpler I want things to be.
Kandas: And he is getting pretty old now.
Larry: Shut up! She puts some kind of coupon on my desk today.
Kandas: That was a life alert.
Larry: About life alert coupons.
I’m like Kandas what is this? What is this? She just starts laughing. Alright, so, we talked about absentee owners, okay? Absentee owner… John is in Sacramento, California then you are not going to find any cheapy D houses, okay?
Kandas: You got to need some boots on the ground.
Larry: You need to call cheapy D and get you some houses, right? But we do have a lot of successful students on the West Coast where the prices look like phone numbers and they are buying on the East Coast and other areas as well and we will be glad to help you with that, help you determine what areas if you want to that’s one thing we do with our partners is help them determine what’s the best area for them to work in. Let’s get back to the direct mail. Okay, so you’ve got, so you got high equity, absentee owners. You’ve also got owner occupied high equity. I don’t particularly hear for the owner occupied although we do buy a few properties from owner occupied.
Kandas: They come up.
Larry: They do come up. The downside with that is showing the house while they live in, okay? We have done it. We do do it. We have some right now that are living in the house. But I don’t care for it as much because what we typically have to do is create a showing. What we will do is we will say, okay, we are going to show this property Saturday at 4 o’clock and then have everybody show up at once, right?
Larry: And we show up about 5 minutes late. That way everybody is like, “Hey, I want to get to him first. I want to get to him first.” Right? So, that really helps, just same way with renting a property. Tell all your prospective tenants to show up at X time and you show up 10 minutes late. Right?
Kandas: Back to the list.
Larry: Okay. Yes Kandas. Okay, tax delinquent. That’s also an awesome list. If they are not paying their taxes, they can’t afford to pay their taxes, their chances are they might be interested in selling the property. Another good list is probate. Probate is a great list. Now, I could tell you about 80% of the people that go through a probate who have inherited the property or whatever, they’re going to sell the property. They’re going to sell the property.
Kandas: They just don’t know what to do with it. They don’t want it.
Larry: They really don’t.
Kandas: They really don’t know what to do with it.
Larry: And a lot of people say, you know, when you got to send them the sympathy ladder, you got the… you know, they are going through a tough time and there is no question about that. But, they don’t know why you might have sent them the postcard. You can just tell them, “Hey, look, we sent it to 500 people or a thousand people.”
Kandas: Or 25,000 people.
Larry: We do 25,000 people a month, right? So yeah, probate is good. Now, there is a thing called pre-probate. What pre-probate is, pre-probate is a list where someone is deceased but the probate process hasn’t started yet. No one has opened up or started the probate process yet. So, you can catch them even before they do that, right? Another great list is code violation. Properties who have violations against them, City code violations, County code sometimes but mostly City and some of them don’t have the money or the time, they are living out of state, another one with absentee owner, some people only market to out of state owners. I would say of the, look there is Kinney Culver. What’s up buddy? Of the 28 or 29 deals we have under contract right now, how many of them would you say are out of state owners?
Kandas: How many of them out of state?
Larry: I know of. 1, 2, 3, there is one…
Larry: There is one…
Larry: I don’t think there is that many. There is at least 3 or 4.
Kandas: 5 or 7.
Larry: Yeah, okay.
Kandas: I would say 5 or 7.
Larry: Somewhat between 3 and 7. There is a good percentage of them.
Kandas: Since we have a closing coordinator now.
Larry: Yeah, Kandas is not as involved in day-to-day.
Kandas: I am not having to mail things then I’m not sure where they are. I’m on the front end.
Larry: That’s exactly right. Now, there are some other things that you can look for and list as well like divorce, not in good divorce. People who are divorced, you can find those in the book of Civil Lawsuits, right? At the County Court House. Mark says “My pre-probate lease have not quite dad yet.”
Kandas: That’s not funny. He says LOL, that’s not funny. May be a little bit funny.
Larry: Maybe. So, divorce, you look into the book of Civil Lawsuits for same last name, that’s where, you know, Smith vs Smith blah blah blah, look and see if they have properties. Disability, senior list, people who are wanting to go into a nursing home or retirement center.
Larry: And it’s a part of life. It’s going to happen, right?
Kandas: And a lot of people, there is some people that are really proactive about it. They know what’s coming. I talked to a lady yesterday and she and her parents actually living in her childhood home but they, and she has done everything she can to make them stay there but she knows within the next 6 to 8 months, she is going to have to move in with her what she is okay to do and she is going to have to sell this house. So, we weren’t her buyer because she has already done a lot of upfitting to this property and things like that but…
Larry: Hey, honey how are you?
Kandas: But she…
Larry: You just now joining us come on.
Kandas: She’s probably then pretty busy.
Larry: She probably has.
Kandas: But she is having to… she is planning ahead. She knows that this is coming. She knows she is going to be preparing it soon, but then you got other people who are the actual homeowners. The people that are getting into that age and they just find themselves when they not being able to do the things that they want instead and so then they are ready to relinquish some of that, I don’t want to say independence, but responsibility of maintaining a house and things like that. So, you get those people that called who does a really good list, but that is a pretty common calls that I get.
Larry: I would say a big majority of the people who call us and it’s not because we specifically target age but the vast majority of people that we buy from I would say or probably in their 60s, 70s and 80s. Wouldn’t you say so?
Larry: I mean we…
Kandas: Majority are going to be…
Larry: I mean we have one right now we are buying in his 20s, you know, because… but he inherited it from his dad, right?
Larry: But most of them are probably 60s, 70s, and 80s, they have a property they have inherited, they finally want to sell or they have rental property they’re getting ready, you know, that they want to retire, they don’t want to have deal with Tennis Trash for mites and toilets anymore, right?
So, let’s talk about some more list. You’ve got senior list, adult care homes, intakes and adult care homes, you can advertise and market them, another good source that a lot of people use are court cases, court cases.
Kandas: Court cases.
Larry: Right? Where people got arrested for something…
Kandas: Oh yeah, yeah.
Larry: Arrest, arrest records…
Kandas: Arrest records, yeah.
Larry: Yeah. So, arrest records, court cases, jail records, whatever it is it’s called in your area, you know, you can find those and you can hire a VA to look up that list for you. Another good list is evictions, find out the people who have evictions. My son know when I were in Hickory, I was showing him the house I grew up then on Saturday, and we were riding around the circle and I saw a vacant house with the sign, not a sign but luckily they… a flyer or something, not a flyer, a letter posted…
Kandas: A sign, a letter. None of those things.
Larry: Sorry. Sorry. It just looks like this from the distance, right? So, anyway, I told him to go up there and take a picture of it and it was an eviction noticed. They had already moved out. So, I look up and found out who owned it and got their phone number and called them and she happens to own, you know, 11 different other properties and she’s going to send me some info on those properties, and all of that from just riding around, right? So, evictions are a good source. Sometimes you are catching a landlord, you know, when they are sick and tired of being sick and tired, right? Right?
Larry: When they are done busted and disgusted, somebody said earlier. Okay, so, tax defaults is another good one, foreclosures, we are buying one right now that is in foreclosures, I just mentioned the deal of the month. Any type of distress like I know a lot of guys who bought a lot of property in Houston, whenever the hurricane went through, there is a lot of people selling properties now, I had a guy call me, actually one of our students, he called me and wants to sell a property that got hit in the flood just a couple of weeks ago, in the hurricane. So, also you can look any kind of demographics you want to look up whether be age or whatever. So, that’s a really, really good list, different types of people to mail to. I would say the number 1 list people mail to are absentee owners. I tell people if you want to get started, if you don’t have a whole lot of time, may be talk with absentee and on the lower priced and 100% equity and out of state, right? Especially if you are on a limited budget, narrow it down, out of state, 100% equity and under X value, like [Inaudible] [35:54] or under $100,000 value. Most of our houses we are buying, we are buying for 5, 10, 15, 20, 30 thousand, something like that, right? That make sense?
Larry: Good. So, what else do we have? Share the video. Share the video to win the HUD Jump Start course and yeah, thanks V. We appreciate that. That’s awesome. V is a rock star. She is at there crushing it doing development in Charlotte.
Kandas: Beautiful houses.
Larry: Oh my gosh. She makes the most beautiful house you have ever seen.
Kandas: Of course.
Larry: And she, and she, she knows how to stage them too, make them look good.
Kandas: Yes. Yes.
Larry: She knows how to put all the colors and stuff. Oh my god, I can’t do any of that stuff.
She is just awesome. She really is. So, guys I appreciate you guys watching. Thank you very much. If you can make it to the 3 day…
Kandas: We got 3 seats. That’s it.
Larry: Is that it?
Kandas: That’s it. We are capped.
Larry: Yeah. Awesome. It’s in Charlotte starting tomorrow, so larrygoinslive.com, also if you want to apply to partner with us sold some deals, we have a partner program were we work with you one-on-one and we partner on your first few deals and go to larrygoins.com/apply, larrygoins.com/apply. Anything else you can think of?
Larry: Alright. We got to go, we got to get back on the phone.
Kandas: We got a bunch of stuff to do.
Larry: I got to get back on the phone. We got to get ready for the 3 day. We are going to set up actually in a couple of hours.
Larry: So, thank you guys for watching. We really appreciate it. And next week we are going to talk more about some direct mail stuff, I can’t remember what it is, 10 ways to something I forgot.
Kandas: Are you sure?
Larry: But, yeah.
Larry: I think.
Kandas: Bye guys.
Larry: Bye. See yah.