In this episode, Larry and Kandas talked about assignments versus double closes. They also discussed when to use assignment and when to use double close. In addition, they also shared some situations determining what to use between the two.
Larry: Hello, hello, hello. How is everybody doin’? Welcome to BRAG TV Now live from Lake Wylie, South Carolina.
Kandas: I think we’ll just do the BRAG Network, that way it covers all areas of media.
Larry: That’s really good. Can you tell she is feeling better, she is arguing with me first thing, 10 seconds into the game she is arguing with me.
Kandas: I got a lot of time to catch up for. I am feeling better. Thank you guys for the prayers, I really appreciate it. It definitely helped. Not 100% yet, but at least well enough to be here.
Larry: Exactly. Exactly. So, yeah, I’m really glad you guys are here. We’ve got a winner from last week but for some reason my thing messed up and my agenda where I was gonna announce the winner, but luckily I remember who it was, right? So, all I got to do is scroll down here and find last week’s show and then I could tell you who the winner is.
Kandas: When you were by yourself?
Larry: Yeah, when I was by myself, right?
Kandas: Bless your heart, poor little thing.
Larry: I wasn’t by myself, was I? I wasn’t by myself last week.
Kandas: No, I was here.
Larry: Just for a minute and then you came in.
Larry: So, Eugene, you were this close to winning. This close to winning, right?
Kandas: Eugene La Branch?
Kandas: They’ve already won.
Larry: They’ve won before. But here’s who won for this week, it is David Wickboldt and I know that’s what it was.
Kandas: Good job David. Thanks for watching. Thanks for sharing.
Larry: Look, your mom is in the house.
Kandas: Hey, mama.
Larry: Hey, mother Teresa. So, yeah, so, David all you need to do is what does he need to do?
Kandas: Send an email to email@example.com and I will be able to get that Real Estate Day Trader course. You didn’t have one in you?
Larry: I do, I do right here.
Kandas: The Real Estate Day Trader course out to you. And while we are talking about that, thank you Eugene for being so patient with me. Last week you won, I was able to get that shipped out to you today. We have the event last week. I was sick yesterday and Monday and so that went out to you today. You will get it soon.
Larry: Awesome. Awesome. They can call 877-LARRY-GO.
Kandas: Mm-hmm. 877-LARRY-GO for the Investors Kit that has the digital copies of the Real Estate Day Trading book, the HUD Homes Half Off book, some of our links to our training webinars, all kinds of stuff in that. So, give 877-LARRY-GO a call and talk to Zenobia and she will get that out for you. You can also text the word B-R-A-G to 803-897-6063 and it will do the same thing except you just won’t talk to Z.
Larry: That’s right, but you wanna talk to her.
Kandas: Z is a good girl.
Larry: She is awesome and that will get you your free Investors Kit.
Larry: Awesome. So, there you have it. So please share, share, share. Every week we give away a Real Estate Day Trading and Jumpstart. It’s a $297 value on our website. “Z who?”
Larry: Kenny Culver.
Kandas: She is our in-house Indian.
Larry: She is our virtual assistant from India but she is right down the hall.
Kandas: Right. She is awesome. You would like her.
Larry: Yeah, she is really cool. So, Kenny I’m really glad you are on here man. Kenny has been very active. He’s working out and getting all fit.
Kandas: You know, what, he is getting fit for the baby because he is gonna have to keep up with the baby.
Larry: ‘Cause he is gonna be up all night, right?
Kandas: We are excited for you. We better get pictures too. I think she is due in July.
Larry: I think so. I think so. But I told Kenny the other day, I’m like man I’m really proud of you. He is getting fit. He is working out. He is doing good.
Kandas: In business too.
Larry: Exactly, he is. So, I’m really proud of him. Kenny used to be in our office and he is just a great guy. So, check him out as well. So, what do we need to talk about next?
Kandas: I found out he is having a boy. The world is in trouble.
Larry: That’s right.
Kandas: The world is in trouble.
Larry: That’s awesome. That’s awesome. The world is in trouble. Kenny is in trouble. That’s it. You’re welcome man. You’re welcome. We love you. So, we wanna talk about the deal of the week, right?
Larry: The deal of the week. Last week we had our 3-day event which went very well.
Kandas: It did go well.
Larry: Yeah, considering you were sick.
Kandas: Considering I was sick. The whole event I was warning people, I was walking around with hand sanitizer. Every time somebody will try to shake my hand, I couldn’t do it. I had Lysol spray and every time there was a break I will spray in chairs, the giveaway items and everything with Lysol, trying to keep everybody safe.
Larry: That’s funny.
Kandas: Yeah, sick the whole event. It did go well though. It was a good group and we are looking forward to May. May is the next one, so we’ve already got people registering for May.
Kandas: Yeah. Z sent me one today. I know it will sell out and you guys already wanna go ahead and make your arrangements for that. We’ve already got the hotel. Everything is already lined up so you can reach out to Z or you can call 888-212-6567 or go to LarryGoinsLive.com and register your seat for that as well. And that’s in May.
Larry: There you go. I’m sorry guys. I’m having to type my scrolling notes while we are live because right before we went live the page shutdown and somehow I lost all of my preset agenda.
Kandas: Sorry, sorry, just hanging around, just lingering. Two antibiotics later. I’m still not all that great.
Larry: Ben, “March”, yeah, baby.
Kandas: No March is different. March is the partner program so that is a different event. So, if you guys wanna learn more about that, you can go to LarryGoins.com/Apply and find out more about the program that’s coming in March. That’s a 3-day Partner Program. Completely different than the 3-day event. We just had one that’s coming up in May.
Kandas: All right, so, what are we talking about today? When to assign?
Larry: Let’s talk about the deal of the week.
Larry: Let’s talk about the deal of the week. Last week was a very short week where we are getting ready for the 3-day, right? I wasn’t really on the phone that much at all. I don’t know that I got any deals last week itself but on Monday I got 6 houses under contract.
Kandas: I don’t remember talking about any deals last week because we had the event. So neither one of us were on the phone.
Larry: I’m pretty sure I did have a deal from either the beginning of the previous week, but…
Kandas: I think it was in the end of the previous week. Anyway, 6 on this Monday though when you are back.
Larry: Yeah, on Monday and it was 3 different sellers. On one deal, I’m buying a house that has a niece living in it. This is a house that I’m buying for $15,000. It comes with a house that the niece lives in. The niece is not paying anything, right? The niece is not paying anything and the uncles getting tired of just letting her live there for free.
Kandas: You know, we got a bunch of uncles that are really great people.
Larry: We do. We’ve got three right now.
Kandas: Uncles seemed to be the best most generous people right now with the tenants, with the squatters. The nephews and the nieces just squat in all their house.
Larry: That’s true. We do have three of them going right now. No, two, maybe three.
Kandas: You don’t hear that from parents. They don’t say… you don’t hear that from parents sellers that are like, oh, yeah, my son is living in there, rent free. None of that. It’s the uncles that have…
Larry: That’s true. The parents treat you like a stray dog.
Kandas: That’s so weird.
Larry: You know, not here. All right? It is good. It is good though. Good for us too.
Kandas: Good for us.
Larry: So this one particular deal, I’m buying this house. It’s like a 3-bedroom, one-bath house, black house. Is it black or brown? I can’t remember. Anyway, it is a house. And she is living there. So, we are buying that and right beside it is another lot that has a single-wide mobile home that his brother lived in and his brother passed away, so he just got to go over there and get a few things out of it and then right behind it is another vacant lot that used to have a house on it. Used to have a house on it, but now it is a vacant lot, so I’m buying all three of them, all three parcels for $15,000. All three parcels for 15 grand, right? And this is a guy who told me on the initial call, “I wanna sell it so I can pay some taxes on his other property” and I don’t think it is income taxes, but he has some other taxes he need to pay and he wanted to pay down his mortgage or pay off his mortgage on his primary residence. I did have to hard close this guy, had to hard sell him but I told him I said this is what you told me you wanted to do, you wanted this money. Now, you’ve got this assets sitting over here that is worth $15,000 or that you are getting nothing out of, right? Or you could take that money and pay your taxes and you can pay down your mortgage. So, you weigh, you know, which one should it be, right? Which one is more beneficial to you? So, I did have to hard close him but I got him to sign the paperwork and that was one of three offers I got to accept. The other one I’m buying two properties for $22,000 I think. I got another one where I’m buying two properties for $22,000 I just got accepted.
Kandas: I thought it was 21.
Larry: You know what, I don’t think you heard the end of the conversation.
Kandas: No. I heard it’s 21.
Larry: Because, one house has a tenant, the other house is almost ready to rent, but I told him I would give him 22 if he would go ahead and finish the repairs and put a tenant in it before I buy it.
Kandas: There you go.
Larry: So, it is 22. But the other one we got was 22 also. Manny, “Make them put out bandit signs too, the freeloaders.”
Kandas: Why not?
Larry: That’s awesome, Manny, I love it. Hey, Tammy what’s up? How you doin’? “You hard close someone, Larry looks too nice.”
Kandas: Typically, he does not have to. He is able to charm them before it gets to a hard close, but sometimes I mean sometimes people have unrealistic expectations. Now, this guy does not sound like he had unrealistic expectations. He had just been in the industry a long time from when I did hear of the conversation.
Larry: We got to date. Not the deal of the week.
Kandas: We got today, yeah. So, he had just been in the industry for a long time, so guys that know the way around and know the conversation and know how the cat and mouse game works with negotiations, you’re gonna be a little bit tougher to close, so you are gonna have to get a little bit harder than our typical sellers.
Larry: That’s true.
Kandas: But he usually is really nice even though they can’t see him like you say he looks too nice. He sounds really nice on the phone too, but most of our sellers aren’t hard closes at all.
Larry: No, most of them aren’t you know, but I do tell them listen I just wanna be upfront with you, I can help you, great. If not, I will try to give you some ideas to help you sell your property, right? And that’s kinda what I do. So, the next thing, we are talking about the topic of the day. What was the topic of the day?
Kandas: When to assign and when to…
Larry: When to assign. There you go.
Kandas: When to assign the contract and when to actually do a double close.
Larry: Right. Eurica is in the house. Lisette in the house. What’s up? All right, so, here’s the deal, we are talking about wholesaling here which we do the vast majority of our deals is wholesaling.
Kandas: It’s not as bad as it was last week.
Larry: You know, you’ve had like 3 relapses.
Kandas: I had two relapses. I’m on my second antibiotic and I don’t have a steroid so it is getting better, but yeah.
Larry: Wow! Okay, so, let’s talk about assignments versus double closes okay.
Kandas: Right. Back to the topic for the people.
Larry: Exactly! And this is a good topic, really, because of all the deals we do, of the vast majority of them I would say are assignments but you’ve got to know when to do a double close, right? So, an assignment is where I get a house under contract and it says and/or assign and then I could assign that contract, I’m just selling the contract, the buyer… I need a shield, yes, you’re right. I need more of… Kandas needs one of those masks.
Kandas: I do not need a mask. Don’t give him ideas Eugene. You know, you don’t give him any ideas.
Larry: So, anyway, we assign the contract and our buyer steps into our place and it’s only one closing.
Larry: It’s just one closing. Now, the term double close basically means I’m gonna buy it and I’m gonna sell it, right? I’m gonna buy it and sell it. So, also sometimes they call it a simultaneous close. But the part that means simultaneous or double close is I’m gonna use my buyer’s money to pay my seller. So, I don’t have to come to the closing table with any money, okay. Now, some states don’t allow you to do that.
Kandas: Some attorneys in some states that allow it aren’t gonna let you do it.
Larry: Some attorneys or title companies aren’t gonna allow it. And if you don’t know yet you wanna ask your local investors group for what’s called an investor friendly attorney or title company. Those are your key words, investor, friendly, attorney or title company, okay. ‘Cause some states use attorneys, some states use title companies, right?
Larry: Now, when to use an assignment and when to use a double close, okay. There’s some states by the way that have large, what do you call, transfer taxes. If you buy a house and sell it, you’re gonna pay a transfer tax every single time you buy and sell that house. So, if you could avoid it at all cost, don’t do a double close, don’t buy it and then resell it ‘cause you’re gonna pay transfer tax on that deal.
Kandas: Each time.
Larry: Each time, so not only do you have closing cost but you’re gonna have transfer tax as well. So, if you are in a state that has transfer tax, try to avoid the double close, right? Also when you do a double close, there’s closing cost involved, you know, ‘cause you are doing an A to B, you know, your seller to you and then B to C, you to your buyer, right? So, somebody is got to pickup all those closing cost in between, right?
Kandas: And it’s not gonna be the attorney.
Larry: Right. Right. They’re not gonna do it for free, right? So, the key is to find a really good one. The key is to find a good one. So, usually unless your assignment fee is pretty large, you want to use an assignment versus a double close. Now, if you have an assignment fee that’s very large, you have to always, always, always do a double close so you don’t kill your deal. For example, we’ve had two closing so far this week, we’ve got another one tomorrow. On Monday, we close Sam’s, right?
Larry: How much did we buy and sell that one for?
Kandas: Sam’s we bought for…
Larry: That was your deal.
Kandas: That was my deal. We bought for 30,000 and sold it for 49,900.
Larry: 49,900? I thought we made 50 on it. We made 20?
Kandas: I think we made 17 on it, yeah.
Larry: Oh, okay.
Kandas: 17 to 18.
Larry: Oh, okay, good. So, did we do an assignment or did we…
Kandas: Yes, we did an assignment on that one.
Larry: Okay, so we did an assignment on that one so it was less than $20,000. It was an individual seller and Kandas had a good rapport with them.
Kandas: I do.
Larry: So, we weren’t really concerned about that, okay. We weren’t concerned about our seller getting mad. Oh, you are making almost $20,000, right?
Kandas: I have good rapport with all my sellers.
Larry: That’s good. So, she didn’t have to worry about that so we did an assignment. Now, the other one we close on Monday, we bought it for $50,000 and we sold it for $85,000. That’s $35,000 wholesale fee, right?
Larry: We did close on that one and we did resell that one. I didn’t want my seller coming back and saying, oh, this or that, you know, you are making way too much money because I already renegotiated it down from 75,000 down to 50,000, renegotiate it after I had it under contract.
Larry: I went back and renegotiated the deal and got an additional $25,000 discount.
Kandas: To Ben’s question, will the new buyer know how much you purchase it for? If you do an assignment, yes, they will know how much you purchased it for and how much you are making. That shows on the HUD because your proceeds will be distributed from the closing. So, that’s gonna show on the HUD.
Larry: Yeah, exactly.
Kandas: My seller was only concerned that we weren’t gonna make more than she did, right? She wanted to and that was part of the conversation that she and I had when we were out at the house. She wanted to know what we are gonna do with it and so vaguely I was telling her kinda how our company works and this that and the other and what she wanted to make sure of is just nonchalantly she said, “I just don’t want you making more than me.” Okay, fair enough. We didn’t. So, we didn’t ‘cause there was a mortgage or anything on that house. So, I knew that she would be okay seeing how much we made on that property as a seller.
Larry: Exactly. And there are cases were we make more than the seller.
Kandas: There are.
Larry: We bought them for 20 and sold them for 40,000 to 45,000, right?
Larry: So, there are cases that that happens and you need to do a double close on those kind of cases.
Kandas: We could also, now the other one that’s closing this week, we are going to close on it and resell it.
Larry: Which one?
Kandas: The Grover property. But that has nothing to do with the seller. The seller already knows, she has seen us already advertising the property, she knows how much we are making ‘cause she knows how much we are paying for it and she doesn’t have a problem with that. That’s another one of my deals. But she does not have a problem with that.
Larry: Let me just point that, that’s another one of my deals.
Kandas: My sellers, knock on wood, are great. I built a lot of rapport on them. Will you stop please? I’ve built a lot of rapport on the front end, I’m very upfront. I’m very informative. So, typically, to date, I don’t have any issues with mine, but we are gonna close on that one because the interest that we have in the property, we don’t want our buyers to know because they have been investors, our buyers to know how much we paid for it or how much we are paying for it. So, we are just kinda close and then resell it.
Larry: And that one we are paying 25 and selling it for 50. So, we are making the same amount that the seller is.
Kandas: Yeah, same amount.
Larry: We are making the same amount. All right, so, what else? Small assignment fees versus large assignment fees.
Kandas: Eugene, these aren’t HUD deals. These are all private sellers.
Larry: Right. Right.
Kandas: We are not doing HUD right now.
Larry: “Is there any risk of the seller bypassing you as an investor or is all the information only available after closing?” So, if I ever have a deal that I’m concerned about…
Kandas: There’s a feeling you get.
Larry: Yeah, if you know, maybe I shouldn’t even talk about that deal. But if there is a deal you are concerned about…
Kandas: Just be general about it.
Larry: Yeah, I’ll use fake generalities. So, if there is a concerned that the seller is gonna go around you, you can file what’s called a memorandum, okay. A notice of interest. Memorandum of interest. And the attorney can file that for you. It won’t cost you very much and basically it’s a cloud on the title. Your seller cannot sell to anyone else unless you release that cloud on the title.
Kandas: During the period of your contract.
Larry: During the period of your contract. If your contract expires, that’s it.
Larry: So, you can file a memorandum. We’ve had a situation come up where you have…
Kandas: We have a few of them right now.
Larry: We do have several memorandums filed right now. But we have a situation not too long ago like this week where seller wanted to cancel the contract and will not proceed as planned and they even offered me cash money to cancel the contract. And then not only that but then I got a word later that the house have been broken into and vandalized and we went out to check and it hadn’t been vandalized. So, we just plan to go ahead and proceed but we do have a memorandum on that property. We do have a memorandum on that property.
Kandas: ‘Cause Larry got a feeling last week that something was gonna kinda shake up with the deal and so just to make sure our interest was secured with the contract we already have in place, we had it filed last week before we went to the event.
Kandas: And now with good reason.
Larry: Exactly! So, if you get a feeling, if you get a feeling, go with your gut, right?
Larry: Yeah, anyway, so, the other time that you would use a double close versus an assignment is if just for some reason, you don’t want your buyer to know how much you are paying or how much you are making. You don’t want your seller to know how much you are making because they are gonna sign the HUD and it has your assignment fee on it and if they are making 25 grand but it says down at the bottom your buyer is paying 50 grand, they’re gonna know that 25,000 is going to you, right? So, if there is any reason you don’t want them to know for example, it might be a retail buyer, you know, somebody is gonna buy to live in or whatever and they might try to go around you, whatever. So, the other time that you want to use a double close versus assignments is if there is multiple people on title.
Kandas: Yeah. Lesson learned, ask us how we know.
Larry: Exactly. We had a deal last month where there were 8 people on title, okay and I remember here in the bullpen area I said let’s make sure we close on it and resell it because if we assign it one of those 8 people is gonna have a problem with us making 25…
Kandas: At least one of those 8 people is what you said.
Larry: Yeah. One of those people is gonna have a problem with us making 20 grand on this deal, right? And we tried to push it through real quick and in pushing it through we failed to close and re-close, do a double close…
Kandas: Paperwork got mixed up, yup.
Larry: Exactly. So, we ended up assigning it and one of the 8 people, saw how much we were making and I have renegotiated… we were selling it for 40 and I had negotiated it from 35 down to 20. I renegotiated it from 35 down to 20.
Larry: So, we were making 20 grand on the deal. One of those heir said look, you know, no, we are not gonna do it, not gonna do it.
Kandas: You can’t make…
Larry: Not gonna do it.
Kandas: And then…
Larry: And so the guy I was dealing with, the one of the 8 that I was dealing with I asked him I said so what it is gonna take for us to do the deal, he said the original price, 35,000. So, instead of making 20 grand, we only make 5.
Kandas: Just like all the other heirs. Everybody making the same amount.
Larry: Right. Right. Right.
Kandas: All because we tried to rush it through in paperwork.
Larry: Exactly. Exactly. And he knew what the original price was. He knew he was still making money. He didn’t mind that. He just wanted this cash.
Kandas: Multiple heirs always close twice.
Larry: Multiple heirs always do a double closing, right? Also if your buyer is waffly.
Kandas: Willy-nilly in other words.
Larry: You know what waffly means. Yeah, if your buyer is willy-nilly, waffly.
Kandas: Larry uses the word willy-nilly around all this.
Larry: Don’t just go out there all willy-nilly, right? So, if your seller is waffly or willy-nilly, the other time is if your buyer and seller know each other or talking to each other. We had a deal this month where the seller live right next door, every time we would send a buyer about to look at the property, the seller would walk over, hey, how you doing?
Kandas: Let me tell you about this property.
Larry: I know. In fact, I got a call from a buyer who called me, they normally…
Kandas: On my field day.
Larry: Yeah. I got a call from a buyer, field day is when we go out looking properties which is very rare.
Kandas: Those are my favorite days. They are my favorite days though.
Larry: Which is very rare.
Kandas: Field days.
Larry: Field trip.
Kandas: Field trips.
Larry: So, I got a call from this buyer and she said yeah, I was calling about the house that you are selling. I was like, how did you get my number? She said, well, the seller next door gave it to me. So, the seller has given me my buyer’s numbers right?
Kandas: By buyer, it’s his number.
Larry: Yeah the buyer is my number. So, what we ended up doing was… “Are all this all cash?” Yes, they are wholesaling. They are all cash wholesale deals Tammy, absolutely. So, anyway we ended up going ahead and closing on that and now we are gonna close with our buyer as well because we are making 25 grand on that one too. We are buying it for 25 and selling it for 50, right?
Kandas: Right. So, here’s the thing with that property is we are going to give the old owner an opportunity to not talk to because we have had the house sold three times.
Larry: We did. We had it sold three times literally and each one of them backed out because of the seller’s mouth. Talking about how much we are making.
Kandas: So, we are gonna give her an opportunity to not talk to our buyers now because it has nothing to do with her. She doesn’t own it anymore but if it comes to it, we’re gonna have to go put no trespassing signs out which Daniel and I were talking today, I mean it could present a bad image to future buyers because you got no trespassing signs, you know, and it has been a problem before.
Larry: Right. That’s a good point. I mean I didn’t think about that.
Kandas: It’s kind of a messy situation, but actually I think I’m gonna take a buyer out there to it this week.
Kandas: And I will talk to the seller.
Larry: We don’t show houses.
Kandas: We don’t. We have minions for that, but…
Larry: Why are you leaving the office?
Kandas: We have minions, Dan can you hear me?
Larry: Nobody goes out and shows houses.
Kandas: Nobody does. Well, I have…
Larry: Dan only shows houses if it is occupied and he does a one-time showing, it has multiple people show up at one time.
Kandas: It’s like… what is that called when they do that, it’s like creating a buyer frenzy.
Larry: Yeah, round robin or something.
Kandas: There’s a name for that. I can’t remember what it is.
Larry: May be one of your guys know.
Kandas: Anyway, I’m trying to help somebody find the house. So, this one I will take out there.
Larry: And this is a house by the way over in Chester, South Carolina and when I bought this house they wanted to accept my offer, but they said it has 7 acres with it. They said I wanna pull back and only give you 1 acre and we are gonna keep the other 6 to see if we can sell it on our own and I said the only reason that I am buying this is because of the 7 acres.
Kandas: The land, yeah.
Larry: Otherwise, it is not worth it because anybody will not move out in the middle of nowhere on the middle of bamboo freak.
Kandas: Who wants land in bamboo freak?
Larry: Yeah exactly. That’s the only reason I wanna move out to the middle of nowhere, right? So, I can pay you the money but I can’t pay you if you only gonna give me 1 acre.
Kandas: So, we got 7.
Larry: Yeah, exactly. The other thing which lead me to my next topic, I’ve got a list of them up here. If someone lives next door which Kandas already explained.
Kandas: There you go.
Larry: Also if you’re gonna buy more houses from your seller, you may want to keep how much you are making out of their view because if you make 20 grand on the deal even if you make 10 grand on the deal, all you are doing is assigning a contract. If they got another 10 houses they are getting ready to sell then you are not making a 100 grand off of me. I’ll tell you what, I’ll sell you all 10 houses at once and you make 10 grand on all 10 up.
Kandas: Yup. No.
Larry: So, if you are gonna buy more houses from your seller that’s another reason to use a double close as opposed to an assignment, right? If you are selling to a buyer getting a loan, that is a whole other story. Because your lender…
Kandas: That’s a mess.
Larry: Your lender is gonna make sure that they pull title prior to and if you don’t own the property that may kill your deal and the lender may also require ceasing, you’ve have to own that property 30 days or 90 days or something like that. We don’t wholesale to anybody getting a traditional loan. All of our wholesale buyers are cash or cash, right? One or the other.
Kandas: No. That cash can come from them getting a HELOC and having cash to buy a property with then pulling money out of their 401k or retirement account in buying a property. Their cash can come from any location they need it to but when we come to closing, it’s a cash closing. Not a finance closing.
Larry: That’s true. They can use hard money, private money, cash partners, credit partners, HELOC, cash in stocks, bottoms, retirement account, whatever, but our deal with them is cash. Our deal is cash. And the last way that I wanna talk about that you wanna use a double close as opposed to an assignment is if the buyer is an owner occupant buyer especially if they are…
Kandas: No, we will not take Bitcoin.
Larry: Yup. No, Manny we don’t take Bitcoin. Nope. Sorry. Goes up and goes down. Goes up and down. Right? So, if your end buyer, they don’t understand what we do, they don’t understand wholesaling, they don’t understand why we are even in the deal. Why I’m buying this from you when they are the ones that own it. Right? So, they don’t even understand that, so if you are selling to an owner occupant buyer think about it and you may want to do a double close as opposed to doing an assignment.
Larry: And I don’t know if you guys have noticed, but there is a lot of wholesalers out there that are making 3,000, 5,000, 7,000 you know up to $10,000 but it’s very rare. We do one under 10.
Larry: Our stuff is 10,000, 15,000, 20,000, 25,000, 30,000, 35,000. That’s how much we are making on each deal and we do that because we do negotiate good deals and then sometimes we renegotiate but I don’t really know why we do it.
Kandas: It’s just how the numbers work out.
Larry: It is how the numbers work out.
Kandas: Our target has been 12 to 15 minimum on our spread. So, that’s the numbers we go for. When we are analyzing deals, when acquisition managers are talking to sellers, they prep them for different things, they try to price condition them with different questions that they ask and so that’s our target I mean you put it out there and that’s what you get.
Larry: Exactly. I didn’t see that article in the paper about investors but investors do get a bad rep.
Kandas: They really do.
Larry: They do a get a bad rep.
Kandas: And we get that on the phone too with people that get our postcard, are you a scam? Where are you located, how do you know my address. I mean there are all kinds of obstacles that we overcome on the front end as acquisition managers take the calls to try to lower people’s defense mechanisms, to try to get them kinda lower that guard from everything they’ve heard in the media about the investors and what we found is kinda just explaining to them how we help other people, what we are gonna do with these properties has really helped us with getting that defense down kinda quickly on the phone.
Larry: Exactly. Exactly. And you get some people that call up and are irate, they are mad, they are yelling at you, they’ll leave a message, how did you get my address anyway especially if you mail out the street view postcard, the street view postcard is where it post the image from Google maps and puts a picture of their house on the postcard. Have you been stalking me? Having you been driving by house?
Kandas: They freak out.
Larry: You better not come by my house again. Right?
Kandas: We better not come by and put something in their mailbox or call them. We didn’t even call them. They called us. But you just have to remain calm and you just have to let them know you understand where we got the picture from, how we got their address and if you can answer all those questions I mean they calmed down as you give more information and they have a better understanding then there is… calming is not the word, there is something that happens to them and they just kinda or like okay well I don’t want any more mailers. Take me off your list. Okay, fine. Or they say okay well I do have a house or I don’t have anything for sale but my neighbor does. You know, it can go on any kind of direction.
Larry: Exactly. Look, William Tingle is in the house. What’s up buddy? How you doin’? So, Lisette wants to know when you do an assignment who pays the closing cost? Remember, an assignment is not a contract. Whatever the contract says, whoever you assign it to that’s who pays the closing cost and on our contracts, it says the buyer pays all closing cost. Whatever the price is the seller is gonna walk away with net minus any taxes they owe or liens or judgments. Right? So, if we have an assignment fee of $20,000, we get a check or wire for $20,000. That’s exactly what we get is $20,000. So, Dave Lee, “Could you talk more about price condition?”
Kandas: I think we should do a whole segment on that, price conditioning.
Larry: You think so?
Kandas: I do.
Larry: I don’t know that it has much content but okay.
Kandas: I think we could do a segment on price conditioning I mean if you don’t want to if you don’t like that idea then go ahead and tell them.
Larry: We can do that. We can do that. Next week on BRAG…
Kandas: Price conditioning.
Larry: The BRAG Network is price conditioning. Price conditioning your seller and price conditioning your buyer. That will make for a good topic. Price conditioning both your seller and your buyer. Before we go, can I play this call?
Kandas: So this call as he is pulling this up here, this call was a call that I received from a seller that received one of our postcards and this is sometimes what you get off of the postcards.
Larry: I hope you guys can hear it. Give us some feedback or comment if you can hear it okay. So, let’s see if you can hear this, okay. Here it goes right here.
Kandas: Like you can’t make this stuff up. You can’t make this stuff up. That is a seller that called us. So, I get this voicemail and of course we played it like I don’t know 8 times in the office laughing like crazy and I call the seller back because even though he did not leave his number, our system captured it. So, I called him back I was like you know I just wanted to call and let you know we didn’t trespass in your house, someone had brought that in but if you’ll give me the address we mailed it to I will be glad to take it off and he said, I didn’t call. I said yeah you did. He said, no I didn’t. Don’t call me back. Hang up. All right, we will see you next month. We will get another mailer.
Larry: That is her standard response. If somebody says I’m not giving you my address, she says, okay, we will see you next month.
Kandas: What can you do? You’re gonna get another postcard if you don’t give me the address to take off the list.
Larry: Down the chimney.
Kandas: It was the craziest thing.
Larry: We are Santa Claus.
Kandas: We went into the house. Like how does that even, how can somebody rationally think that which obviously…
Larry: Through 4 gates, my big question is if you have 4 gates maybe somebody break in in your house.
Kandas: And it shouldn’t be your main concern.
Larry: You should want to sell your house. If you’ve got 4 gates, right?
Kandas: We have made, we have laugh more at that call. It has been so funny. Anytime somebody is having a bad day, we play the call. Because it is just funny. You have those types of callers.
Larry: That’s too funny.
Larry: Awesome. Well, please share this video. Is there anything else you can think of that we need to talk about?
Kandas: No. Call Z at 877-LARRY-GO to get your Investors Kit. Talk to one of the guys or apply to be one of the partners on LarryGoins.com/Apply and the guys will give you a call back for that. Get registered for 3-day event. There’s all kinds of ways that you guys can keep up with us and learn more from us. Just engage I guess is all I got.
Larry: That’s it.
Kandas: That’s it.
Larry: Well, guys thank you so much. Next week is gonna be all about price conditioning.
Kandas: Thanks Dave.
Larry: All about price conditioning. Your buyer’s and your seller’s.
Kandas: That’s right.
Larry: So, with that thank you guys very much. We appreciate you watching. We will see you next week.