For the next hour, best sell real estate investing author Larry Goins & Co-Host Kandas, will show you the many ways real estate creates the I.D.E.A.L. investment. Whether you want to Flip houses or become a passive investor making double-digit returns while others do all the work. You will learn how here on BRAG Radio.
Tips On How To Take Care Of Your Deals And How To Avoid Losing Money.
Today's episode Larry and Kandas discussed about deals they have done the past weeks. They will teach you how to handle good and bad deals. Learn a lot of lessons and tips on how to take care of your deals and how to avoid losing money.
Kandas and her family's little project on helping other children Paying forward
Upcoming Training Events
Deals they've done this week
What they do and what they can offer
The HUD house they got this week listed for 72, picked it up for 39 and will offer it for 49.9
Teaching other people how to avoid losing money
Difference between saying "You're right" vs "That's right"
Dealing with Heir properties
Gerald's deals - good and bad ones
"If you don't give when you have a little, you won't give when you have a lot." "It's a lot easier to flip a dime out of a dollar than it is a hundred grand out of a million." "You're right" gives compliance, "That's right" gives commitment. "If you're buying a house from somebody, it doesn't matter how much they make as long as your number works for you."
Welcome to BRAG Radio, which is all about being rich and generous. Every week, your host, Kandas, and bestselling author, Larry Goins, will show you how to be rich and generous by investing in real estate. Broadcasting around the globe 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.
Kandas: Thanks, Chad.
Larry: What’s happening? Good job, Chad. How are you doing there, man?
Chad: Good, thank you.
Larry: Awesome, awesome. I’m excited to be here today on this glorious Saturday afternoon. Right?
Larry: It’s awesome. See, most everybody got the weekend off but not us. No, we’re here for your enjoyment pleasure.
Kandas: That sounds so bad. Let’s don’t say that again.
Larry: We’re here for your entertainment.
Kandas: Enjoyment pleasure. It just sounds weird.
Larry: It didn’t until you brought it up.
Kandas: Chad’s face was like, what is he saying?
Larry: All right.
Kandas: Entertainment. We’ll go with entertainment.
Larry: How about edutainment?
Larry: We’re here for your edutainment.
Kandas: Are you going to write that one down?
Larry: Infotainment. Chad’s always got the words. He knows. He’s a wordsmith.
Kandas: I’m telling you. Most of the time.
Larry: He’s a wordsmith.
Chad: I can speak good.
Larry: I got some good book learning.
Kandas: That’s why the two of you understand each other so well. Just saying.
Larry: Awesome. So, we’re here for your infotainment, edutainment, talking about BRAG Radio, that’s Be Rich and Generous. This is all about investing in real estate and then we want you to go out and BRAG. We want you to be rich and generous, not ‘brag’ in the literal sense, but we want you to be a blessing to others, right, Kandas?
Kandas: That’s right.
Larry: Kandas, recently, I want you to tell what little project we have going on now and you did with your family last week before we jump into some real estate stuff that I want to share. Over the weekend, last weekend actually, you went out and you did some stuff to help others. You and your family went out—am I telling the story or are you telling the story?
Kandas: Well, you haven’t stopped talking yet. So, I was waiting for a spot to jump in.
Larry: Well you had that look like, uh, what is he talking about? I’m not really sure what’s going on.
Kandas: We’re starting to get involved with a lot and this weekend we got a lot more coming up but yeah, we felt led to reach out and my kids really pushed us in an area to help other children. They have a real heart for helping other kids and so to get them involved and kind of encourage them along the path that they want to go and where they feel led, we have a children’s home that’s near our house.
We live in Waxhaw, so we have a children’s home that’s over near our house in a community and they had some names. And so I called and found out a lot about the home, about the history, who runs it, all of that stuff. They actually invited us over to the house to meet the kids, to meet the house parents. We met the pastor of the church that kind of holds everything together. So these kids go to school that is an academy lead by the church. So the church also has the home. And they sent me a needs list, some projects that they have going on for 2018 and I also a list for the children and just the house in general and we were able to fulfill some of those needs last week.
We haven’t been able to drop them off yet. I don’t want to just show up because I’m sure they have stuff going on with the kids, if they’re like mine, which they seemed to be. They have activities after school and things, so we are trying to coordinate a time but it is The Shepherd’s Place, that is the children’s home, that we’re working with and I’m really excited about a lot of the opportunities that we have to help and to feed in and to minister to these kids.
Larry: That is great. That’s a really a good thing to do and I love how your kids are just so excited about doing that.
Kandas: They really are. They are—we talked at the beginning of the year. One of our annual goals as a family is to do one service project per month for the year. And they wanted to get involved with the soup kitchen so your wife is actually working on that part for me with soup kitchens around Charlotte and Rock Hill areas that will allow children to come in.
Larry: Are we going to participate in that, too? My wife and I?
Kandas: And Noah.
Larry: Okay, good. I was getting ready to write that down but it sounds like you got it covered.
Kandas: Pam and I are working on that one together. She has some connections that she’s reaching out to so we’re going to get both of our families involved with that. That was Morgan’s idea and then the Children’s Home, Mikayla saw. So just feeding into where they feel led is going to feed all of us, I think.
Larry: That is awesome. That’s really, really good. That’s really cool. Thanks for doing that, Kandas. You guys are awesome. What?
Kandas: He’s got a way sometimes.
Larry: Does it sound insincere?
Kandas: It does. In a way.
Larry: I knew that’s what you were talking about. I can’t help it. It’s the way I am.
Kandas: It’s the way I sound. It’s the only voice I got.
Larry: It’s the only one I got. You know.
Kandas: Chad, sometimes he gets these faces and I’m like, what is wrong with your face? And he’s like I don’t know. It’s the only one I got.
Larry: That’s the way I was made. I can’t help it. That’s all I got. I got nothing else.
Kandas: This is a show about real estate and so without the blessings of real estate and being involved in our companies and everything like that, I wouldn’t be able to pay stuff forward. So ultimately, our goal is to help other people that are listening to the show that are interested in real estate—maybe they’re not even listening to this show yet but to get involved.
And we know, we understand there is going to be some time for you to take care of and get yourself in a stable position, maybe, but one thing that was said in our office last week or—maybe it was last week. If you don’t give when you have a little, you won’t give when you have a lot. And that was something that really stuck with me as well, making sure that we create time and we make time to pay it forward and give back and do what we can do now so that when we have more to give, we will continue to give on the larger scale.
Larry: You know it’s a lot easier to flip a dime out of a dollar than it is $100,000 out of a million.
Kandas: I believe it.
Larry: Unless you learn to do it early on when a dollar means something, right? And then whenever you have a million, it’s a lot easier to be able to—
Kandas: It’s the same percentage.
Larry: It’s the same percentage. It’s a numbers game.
Kandas: That’s right.
Larry: All right. So a couple of things we want to talk about. We have an event coming up soon. Right? In Charlotte.
Kandas: We do. And you guys, probably, if you’re in the Charlotte area and you have been showing any kind of interest in us, we have people get onto our Education Center list in multiple different ways, opted in for our books or free information or anything. But we did a call blast so you guys may have gotten a call and information about the three-day already, but if you haven’t and if you’re new to us, we have a three-day event in Charlotte February 16th, 17th, and 18th.
We are running low on some seats, though, so you may want to go ahead and get registered for that as quick as you can. Multiple ways to do that. You can go to LarryGoinsLive and learn a little bit more about the event and everything we talk about. Yeah, LarryGoinsLive.com. And I’m sure we’ll go through it a little bit more on the show today, everything that we’re going to cover in the next couple weeks with that three-day.
But you can go there, find out some more information, register right there online. We actually have the Charlotte event and the St. Louis event up. We keep two of them up at a time so those are the two next cities that we’re going to be in. Charlotte, obviously in February 16th, 17th, and 18th and then St. Louis will be in April.
Larry: Why should someone come to the event?
Kandas: Oh, gosh. Just to meet us, that’s all. That’s all they need. I’m just kidding.
Larry: I mean, that sounds a little diva-ish right there.
Kandas: Somebody’s got to do it. You can’t be it all the time. No, I mean we go through in depths in all types of funding and finding deals and negotiating deals and prospecting and criteria to set up for your searches and negotiating and I don’t even know, hiring a VA, automating things, HUD, lease options, seller finance, wholesaling, asset protection—
Chad: Do you have to be brand new in real estate to go to this or experienced people go to them as well?
Kandas: Both. Yeah, we encourage both because the culture in the room really feeds itself. People that are novice can get information not only from Larry and from our team but they’ll hear questions, deeper questions from people that are already doing real estate and they can kind of get a sense for what is possible, what’s able to be.
And sometimes, people that have been in real estate for a long time need to scale. We offer that as well in education around that. But at times also, we found that people that have been in real estate for a long time forget some of the fundamentals so it’s a really good refresher just to kind of take a step back, too, at certain times, and get some of those basics back in play.
Larry: That’s right. And the cool thing about it is, we’re teaching the whole of it. We don’t bring in a lot of outside speakers and I’m there teaching every day, all day long. What we’re doing and how we’re doing it and when we come back from the break, I’m going to share with you some recent deals that we’ve done and I’ll teach you how to do them at the three-day. How can they register real quick?
Kandas: You can call 877-Larry-Go. Send me an e-mail to info@BRAGRadio.com or go to LarryGoinsLive.com. We’ll be right back.
Welcome back to BRAGRadio, all about investing in real estate to be rich and generous. Kandas here.
Larry: Hey. What’s up. How you doing?
Kandas: Same as our first segment.
Larry: Awesome. All right.
Kandas: Those of you that are just now tuning in, we didn’t really go through a lot in the first segment. We talked a little bit about the three-day and what we teach at that but you can go to LarryGoingsLive.com to check out more information on the three-day. Also, you could call me at 877-Larry-Go and I can get you registered for that as well as sending an e-mail to info@BRAGRadio. Whichever way you want to do it. There’s some other stuff we can talk about too, when you call.
Larry: That’s exactly right. So I want to talk about some of the deals we’ve done this week. We’ve had a lot going on this week. We’ve got a couple of people in the office. They’re already starting to do deals and I want to talk about that. What do you think?
Kandas: We had a closing.
Larry: We did?
Larry: I love that. I have real estate closings and I didn’t go. I didn’t know about it. How much money did we make?
Kandas: We haven’t sold it yet. We bought it. It wasn’t a day trade deal.
Larry: That’s not good.
Kandas: Well, it wasn’t a day trade deal. This one—
Larry: I thought we sold one last week.
Kandas: We did sell one last week but not this past week from this Saturday.
Kandas: We bought and sold one. We day traded one last week, but this week we bought it and our buyer had to push their closing so we had to close on it. So it wasn’t a day trade deal.
Larry: I think we made about $14,000 or $16,000 on that one.
Kandas: The one on last week.
Larry: But it was a wholesale deal. I mean it was just a very quick easy, in and out. Right?
Kandas: Right. That’s what we set them up for. It’s not about a $60,000 or $70,000 paydays with us on every deal. It’s more about the quantity.
Larry: It’s stack them deep and sell them cheap.
Larry: Right? You like that?
Kandas: I mean, it’s a machine.
Larry: Exactly. So I want to talk about in real estate investing and if you’re just now listening or you haven’t heard of us before, we primarily day trade real estate. I wrote a book about it called Getting Started in Real Estate Day Trading: How to Buy and Sell a House the Same Day Using the Internet. I also wrote a book about HUD Homes Half Off and it’s all about buying HUD houses for pennies on the dollar.
A couple of deals I want to talk about this week are HUD deals and then I want to talk about another couple of deals that we got last week that were not HUD deals but they were Troy’s deals.
Kandas: MLS, yeah.
Larry: Yeah, they were just off the MLS, and guys, I’m here to tell you, you can still get deals on the MLS right now. Now, do you have to make a few offers to get a deal? Of course. Of course you do. You know, it’s not going to be like, it’s listed for $100,000 and you can pay $98,000 and make money on it. No. No. We make a lot of offers. In fact, when we have a buyer that calls us, when we’re day trading, buying and selling houses the same day, when people call us, here’s a part of our script.
If somebody calls about one of our deep discounted properties, we’ll get their information. Let me get your number in case we get disconnected. If you’ve ever called in somewhere before from some marketing, that’s one of the first things they tell you. Can I get your phone number in case we get disconnected? Now, you never get disconnected but that’s just a nice way of getting a phone number, right?
And then we tell them, what are you looking for? Are you an investor? Are you a fix and flip investor? Are you a landlord? Are you looking for a property with some equity you can fix up and live in it? And then we say, let me tell you what we do. Now, check this out. You’re going to love this, all right? Let me tell you a little bit about what we do.
We are professional negotiators. We make hundreds and hundreds and hundreds of offers to get that one gem of a property at a deep, deep discount. And then it goes through our rigorous due diligence.
Kandas: I like that word.
Larry: I’m sure you do.
Larry: It goes through our rigorous—am I even saying that right?
Kandas: Yeah, you are. You say it the way I say it, so we’re going to go with it.
Larry: So it goes through our rigorous due diligence period, right? Our due diligence that we do and then and only then, if it passes, then we add a little bit of money to it and we pass it along at a deep, deep discount to people like you.
In other words, we have properties at prices that aren’t available to the public. Did you hear that? We have properties at prices that aren’t available to the public. In other words, the house might be listed—I’ll give you an example. I’ll give you an example right now.
Kandas: Give us an example, Larry. Go ahead.
Larry: Let me give you an example.
Kandas: Go ahead. Give us an example.
Larry: There’s a house that we just got this week. It was a HUD house, okay? Just this past week. Nice house, four bedroom, two bath, brick ranch house. It’s got a double garage. Four bedroom, two bath, brick ranch house, double garage, nice fix and flip house. It’s livable. And it needs a little work. Probably $15,000 in work but it’s livable. House is listed for $72,100. I don’t know why the one is in there but that’s what it’s listed for. $72,100. Guess what we picked it up for?
Kandas: Go ahead. Tell them.
Kandas: That’s right.
Larry: Can you believe that? $39,000. And it was a hot house. So it’s listed for $72,000. We picked it up for $39,000. Now, we’re going to offer it for $49,900 at a deep discount. Anybody that is interested in it, we can say, look. It’s on the MLS for $72,000. You can get it from us for $49,900. Let me tell you the way. And it’s an easy sell. It’s a cash sale. It’s not a financed deal
Kandas: Are you okay?
Larry: Yeah, I’m just pausing for effect. Maybe. So it’s—
Kandas: As far as you know.
Larry: As far as you know. It’s not a financed deal. You can’t go to the bank and get a loan because it has what’s called deferred maintenance. It needs a little bit of work. So anyway, we’re going to offer it at a deep, deep discount. And we start marketing that property right away. We put out signs. We put it on Craigslist. We do this. We do that. And we send it out to our buyers’ list and we find a buyer. And on the day we’re supposed to buy it, we’re going to buy it at 10 o’clock as an example and selling it at 10:30, right?
Larry: Real estate day trading in. So that’s what that’s all about. So that was one deal. Right there. That was one deal that we got. I wanted to talk to you a little bit about the problem properties.
Kandas: I like talking about problems. I think when we talk about our problems, it’s just that much more relatable. Everything is not perfect with real estate. If you do it long enough, you will lose money. We’ve been fortunate to figure out where we lose money and stop doing that and so we try to teach people how to avoid those up front.
Kandas: That’s right, Kandas.
Larry: No, I didn’t say that’s right. I said exactly. Right? I’ve learned my lesson from saying you’re right, Kandas. You’re right, you’re right.
Kandas: Here, Chad, there’s a whole thing about that with ‘you’re right’ versus ‘that’s right’. I don’t like to hear ‘you’re right’. I can’t stand it. If you ever read the book—if you read. I think you do read some stuff, but if you would like to read the book Never Split the Difference. It’s written by a hostage negotiator and ‘you’re right’ gives compliance. ‘That’s right’ gives commitment.
Larry: Subtle difference but it is right.
Kandas: It means a lot because if somebody is like, you’re right. You’re right. It’s almost like they’re getting you to stop.
Larry: Yeah, they’re patronizing you.
Kandas: But if it’s like, that’s right, that’s right, then they’re in agreement and there’s more of a commitment with that. I hate hearing ‘you’re right’ from anybody now. It’s what you get for making me read stuff, Larry Goins.
Larry: There you go. That’s it.
Kandas: Are you paying attention here?
Larry: I am paying attention. I’m trying to buy a house while we’re talking.
Kandas: Anyway, you’re going to think about that next time you hear it, next time somebody says it, you’re going to be like, hmm, I wonder if they’re just trying to get rid of me or not.
Larry: The only thing is nobody ever tells me I’m right.
Kandas: Either way.
Larry: I’ve been married for 25 years.
Kandas: I didn’t say I get it from Matt.
Larry: There you go. That’s awesome. That’s awesome. Okay, what was I talking about? The deal that went bad.
Kandas: Problems was where it got started. That’s where that started.
Larry: Okay, so Troy got a couple of properties under contract a week or two ago, a couple of weeks ago, I believe.
Kandas: North Carolina.
Larry: Yeah, yeah. North Carolina. He’s working North Carolina MLS. That’s all he’s making offers on, is properties in North Carolina. People say Charlotte or Kanapolis or Concord, no. North Carolina. That’s his market, North Carolina. So these properties happen to be in Whiteville or Doraville or I don’t know where they were.
Kandas: Whiteville is right.
Larry: Is that white?
Kandas: You said that’s white. That’s Whiteville.
Larry: Anyway, he’s got these properties, two properties, brick ranch houses. Good properties, okay?
Kandas: And when we come back, we are going to tell you more about them.
Larry: Are we done? What? All right.
Kandas: Hey, if you guys want to know more about the three-day event that we’ve got coming up on the 16th, 17th, and 18th, go to LarryGoinsLive.com if you’ve heard enough and you’re ready to register, give me a call. 877-Larry-Go. You can pick up the investor’s kit by calling me as well or text BRAG to 803-897-6063. We’ll be right back.
Welcome back to BRAG Radio. This is Kandas.
Larry: I’m Larry.
Kandas: Investing in real estate to be rich and generous and be able to give back. That’s the ultimate goal, to turn you into a BRAG-er.
Larry: A Be Rich and Generous-er. Individualistic person, right?
Larry: Helping others.
Kandas: What’s happening with your chair over there? What’s going on?
Larry: It won’t stay.
Kandas: You don’t sit down anyways so this is kind of freaking me out that you’re sitting down in the first place.
Larry: I know. I’m usually hyper, standing up and walking around but now—
Kandas: And now your chair is—
Larry: But I’m working right here. I’m trying to do deals. You know what’s funny is in the last segment, I’m getting e-mails from people. We run ads on Craigslist to buy a house. I’ve got to tell you the story real quick.
Kandas: He doesn’t let me have my computer open because I get distracted though.
Chad: And the clickety-clack of the—
Kandas: Right. My clickety-clack and in the last segment, his clickety-clack. I see what he means. Anyway, Craigslist ads.
Larry: See, that’s how I make offers. If I’m on the phone with somebody, I go like this. Looks like I need to be around—
Kandas: Chad, it’s all day. It is all day, every day. This is what it is.
Larry: That’s my calculator. Because I do it in my head. I mean, to me, it’s slower using the calculator so I’m doing it in my head and I gotta make them think that I’m putting numbers to it, so hmm. Let’s see it needs this much in work, let me see here. Let’s see. Okay, and what’s the after-repair value? Okay. And you owe how much? Okay, let me see. Okay, we could probably make you an offer of—so I want to tell you this real quick story.
Kandas: I’m listening.
Larry: That’s funny. All right. And that’s what you do with the handset, you just set it down near the computer and tap on the keyboard a little bit.
Kandas: You need to start your story.
Larry: Anyway, so we run ads on Craigslist and there’s a lot of Craigslist crazies out there. Right?
Kandas: You all know who you are, too.
Larry: So we ran an ad about buying houses. We run ads all over that we buy houses, okay? And this person responded back and he said, what percentage do you pay? Of list or of the value? And I said, well it really depends on a lot of things. Is it a rental property? Is it this? Is it this? He e-mails back, I just need a percentage. That’s all I need. I don’t want to meet with anybody and I don’t want to talk to anybody.
So I said, I asked you if it was a rental property, if it was a fix and flip, about how much are the repairs, you know, and what’s the condition of the property? Is it rented now? Is it vacant? How soon are you looking at closing? Are you interested in financing it or do you want me to pay all the closing costs? And he just e-mails back, I just need a percentage.
So I e-mailed him back and I typed ‘70’. That’s all. And he responded and he said, ‘Lord, no. You must think I’m stupid. There’s no way. If my house is worth x and you pay me 70%, you’d make $25,000.
Kandas: One, it shouldn’t matter how much you make. Obviously, he’s not motivated.
Larry: Well, that’s what I tell people all the time. If I’m buying a house from somebody, I don’t care how much they’re making if my numbers work for me. And if I’m selling you a house, it shouldn’t make any difference to you how much I’m paying as long as the numbers work for you.
Kandas: Right, without them bringing you the deal, you’re not going to be making any money anyway. So you really shouldn’t care or try to go around anybody or renegotiate somebody on the amount they’re going to make for doing the first part of the legwork and bringing it to you in the first place.
Larry: That’s exactly right. That’s exactly right. So I responded back to him and I said, okay, you say I make $25,000 but what if it needs $30,000 in work? Then I’m losing $5,000. You can’t sell a house over e-mail and nobody is going to buy a house over e-mail anyway.
Kandas: Just giving a percentage.
Larry: Yeah, go call a realtor. Right? So anyway. Let’s get back to the story about Troy’s two deals, okay? Troy got a couple of deals, two nice brick ranch homes. Literally side by side, 800 and 808.
Kandas: Yeah, side by side.
Larry: Side by side, owned by the same person and it was actually what we call ‘heir property’. They had inherited the property. So what’s the first thing that tells you, if someone inherited the property?
Kandas: They don’t have anything in it.
Larry: They don’t have anything in it. Anything they get is profit, right? Anything they get is profit. So these are nice three bedroom, two bath, brick ranch houses and I think one of them may even be built as a four bedroom house. But anyway.
Kandas: I would say, before you get into the numbers, the only thing that comes into my mind with heir properties other than the fact that they don’t have anything in it is that occasionally, very rarely, occasionally, you do have somebody that inherits the property and they have emotional ties to it. So their expectations of what they’re going to get initially are unrealistic until you can start some of the negotiating tactics that we use.
Larry: Well Kandas, it’s like you said. Occasionally, because let’s face it. When we die, our kids are going to sell everything we have and get the cash anyway. You know?
Kandas: Yours are.
Larry: You’ve said that before.
Kandas: I said it. I think we said it last week. I mean, one of them. I’m going to encourage that.
Larry: That’s funny. So anyway. So we went out to take a look at the property and don’t get me wrong, we’re not crawling into the crawl space. We’re not getting a home inspection. We go out to look at the property, okay? And we take about 100-200 pictures, right?
Larry: We take a ton of pictures. I mean, if there’s a stain on the ceiling, we want to see it. If there’s a hole in the wall, we want to see it. If the floor looking unlevel, we want to see it. So they open up the crawl space door and they’re looking under there and there’s a few pillars or columns that, it’s got a couple of blocks but on top of that, it’s like a 2x4 turned this way and a 2x4 turned the other way. A couple of shims.
And like, it’s held up in the middle by 2x4s, right? And laying flat. And also there were some shims and some of the columns didn’t even reach the floor, right? You go in the house and it’s kind of unlevel, so having seen that, we called a local foundation company, a structural foundation company and they said it can cost anywhere from $15,000 to $40,000 to fix.
Kandas: This is just a random quote. We didn’t give them the address, have them go look or anything like that. We just asked for a random quote of general work. What is a range that it could be from?
Larry: And we sent them the pictures, too.
Kandas: Well, we did send them the pictures. We just didn’t ask them to go out.
Larry: Right, right, right. So we sent them the pictures and then what we did was we forwarded that to the agent. So now the agent—
Kandas: Because that makes us have to go back. I mean that spread, $15,000-$40,000 in work has to change your number.
Larry: Oh, there’s no question about it. There’s no question about it. And that’s during what we call our due diligence period. In other words, we get 15-20 days due diligence period or inspection period so we can back out of the deal or renegotiate or whatever. So we went back to the agent, sent them the pictures, and even though we were paying I believe it was $63,000 for both houses, both houses--$63,000, so it’s $31,500 each.
So even though we were only in them for $31,500 each, we went back and told them based on this information, it looks like the most we can pay is probably $30,000 for both of them. So because one of them needed additional work and we were just buying one to get the other one. In fact, we were just buying the other one to get the one that had the foundation issues.
Kandas: The one that had foundation issues was in better shape.
Larry: It was the one that we liked better. So we were just buying the other one to get, because they wanted to get rid of both of them. So we went back in and made them an offer of $30,000 and sent them the picture. At first, they said no, right?
Larry: They said no so what we did was Troy sent them a letter or an e-mail along with all the pictures.
Kandas: All the pictures.
Larry: All the pictures. Everything we have. All the problems and also sent them that information that we got from the foundation company and said you know, I’m sorry we couldn’t work it out on this one. I wish we could have been able to. Looking forward to working with you on the next one. By the way, I’ve enclosed all the pictures of the problems of this house and the information from the foundation company because as you know, any future buyer that you show the property to needs to be made aware of this because it’s now a material fact.
Kandas: That’s right. It has to be disclosed by the agent for any offers.
Larry: Yeah, that’s just a nice way of letting them know, oh my gosh, we’ve got to start over. Now, we’ve got to tell everybody about this, right? So we’ll let you know what happens. Next week, I’m guessing within the next week or two, they’re going to probably come back and they’re going to accept the $30,000. You know, it amazes me the times that I’ve been able to go back, renegotiate a deal, they say no, and in a week or two or three later, they come back and say, all right.
Kandas: A little bit of something is better than a whole lot of nothing.
Larry: We’ll take it. We’ll take it. And when we come back, I’ve got some other deals that I want to tell you about. Some good, some bad, and some ugly.
Kandas: You guys give me a call. 877-Larry-Go to request the digital investor’s kit. If you’re close enough to the office, come by and pick it up. We’ll schedule a tour and get that going for you. You can also text BRAG to 803-897-6063 to get the digital kit. Check out LarryGoinsLive.com for details on our upcoming three-day event. We’ll be right back.
Welcome back to BRAG Radio. Hey guys, listen, if you’re listening to the show right now, I’m not going to be able to take your phone call. So don’t call me right this very second. If you do, you’re going to have to leave a message.
Larry: Call her at 5:03PMish.
Kandas: You can call whenever you want to, whatever works for you, but like right now, somebody’s calling. 980-xxx-xxxx. I can’t talk to you right now. You’re going to have to leave a message.
Larry: And they’re probably listening in their car right now.
Kandas: Yep. So you leave a message and I’ll call you back and get that squared away for you, whether it’s the three-day event or whether it’s for the digital investor’s kit or you can come out for a tour. We’ll get it squared away for you but just know I can’t take your call while we were on air.
Larry: Awesome. All right, we’re talking about deals we’ve done recently. Recent deals we have and just talked about a couple that Troy has. I won’t talk about one or two that Gerald has. And these guys have only been with us for about a month.
Kandas: Talk about them. Go ahead. Get them on.
Larry: I’ve got a property I want to get on. This act Swap and Shop.
Kanda: We’re going to start a Properties Swap and Shop here on BRAG Radio.
Larry: Do you ever listen to the Swap and Shop?
Chad: Oh, I’ve done a Swap and Shop. Back in the day, yeah.
Kandas: I love Swap and Shop.
Larry: I want to hear you do one.
Chad: Somebody’s here’s got some chickens for sale. Call 877-Larry-Go.
Kandas: Chickens. That’s something. I’ve got three rims I wanna get on.
Larry: I’ve got a 396 big block I wanna get on.
Chad: Got a soup supper this weekend.
Larry: That’s hilarious. You can really do that, Chad.
Kandas: I bet that doesn’t call for your radio voice, does it? Swap and Shop doesn’t call for your radio voice?
Chad: No, you’ve got to be conversational with the Swap and Shop.
Larry: By yourself.
Chad: Yeah, I’ve just a fax here. Back when I was doing it, the facts were the paper that unrolled.
Larry: The thermal paper.
Kandas: Oh, my gosh.
Chad: That’s how far back I go.
Larry: That’s hilarious. That fades out after three days.
Chad: Disappearing fax.
Larry: And you can write on it with your fingernail. That’s funny. Swap and Shop. All right, so let’s get back to properties. So, Gerald. Gerald’s a new guy that’s been with us for about a month-ish and he’s also, he got a couple of deals recently. One of them, he ended up paying way too much, right, Kandas?
Kandas: Yeah, he did. I didn’t like this property from the very beginning.
Larry: Well, I didn’t either once I found out it had no kitchen, right?
Kandas: Well, we were looking at the pictures. We were looking at the pictures and I was like, okay, the bathroom, all right. Fair enough. Bathroom, fair enough. There’s some stuff that didn’t really look right but whatever, it can work. You can sell it and somebody can make it their own. And I was like all right, where is the kitchen? There is no kitchen. How do you mean?
Larry: Yeah, how do you mean? See, that’s a good thing in negotiating. If you ever want someone to expand on what they’re saying, just ‘hmm, how do you mean?’
Kandas: And then don’t talk. At all. Just let them keep going. And that’s what he did. He was like, well the realtor said you know, they’ve pulled the kitchen out. There was just no kitchen.
Larry: Right, right, right.
Kandas: So then you just sit there and stare.
Larry: When we going for supper, honey?
Kandas: I mean, it has some other issues. The roof needs to be redone. The windows need to be redone. I didn’t like the fact that it wasn’t on a state-maintained road. We kind of have a rule in our office, no dirt roads. This wasn’t a dirt road but it wasn’t a state-maintained road. I wasn’t lying.
Larry: We won’t buy on non-paved roads. It must be paved.
Kandas: This was paved but it was not lined, meaning it wasn’t taken care of or cared for by the state.
Larry: Right, right, right.
Kandas: Anyway, back to it. No, I didn’t like this house.
Larry: And the other thing is it wasn’t that good of a deal anyway. I think he was paying $30,000something-ish for it and it was listed for $50something.
Kandas: I ended up asked him why he was fighting so hard for it because I didn’t get it. I was like, why are you so tied to this house? It was his first one.
Larry: Yeah, it was his first one. So anyway, I said okay. We’ve already gotten it under contract so let’s play it out. So you know, 15-day due diligence period. On about the 13th day, he let him know, I don’t think we’re going to go ahead and close on that.
Kandas: We’re going to pull our offer.
Larry: So I told him to tell him we needed to be around $8,000 or $10,000 on it.
Kandas: Which is true. For everything that we needed was what we were going to sell it for.
Larry: So Gerald goes back and he renegotiates it. I think they sold him up to $20,000
Kandas: Yeah you said $8,000-$10,000. Well he comes back with, they got $20,000. They accepted $20,000. What?
Larry: Yeah, but we didn’t, did we? Well, I kinda told them. So Gerald, we have to have a conversation.
Kandas: Everybody’s got to learn, you’ve got to start somewhere. You guys need to align with somebody that knows what they’re doing so you don’t fall into that track. Because if he had been on his own, he would have gone ahead with that $20,000 offer.
Larry: And he would have lost money.
Kandas: And he would have lost money.
Larry: Yeah and that’s why it was important to get yourself some edumacation.
Kandas: Which we provide at our three-day events.
Larry: We do. We do.
Kandas: At refundable ticket price of $97.
Larry: Oh, refundable. That’s just for a seat reservation. It’s just a hold fee.
Kandas: It’s to hold the reservation.
Larry: Because you’re going to get it—it’s to hold the reservation.
Kandas: I’m like, people on Seinfeld, I know how to hold your reservation.
Larry: I love that episode where they rid in the car. Can you get me the insurance?
Kandas: That is one of the best episodes ever.
Larry: I know, right? That’s funny. All right, so that was one deal. We ended up cancelling out of that deal. We backed out of it. We got our deposit back, all that good stuff. But I want to tell you about another deal Gerald just got. This past week, he got it under contract for $35,000. Okay?
So this was a house that was listed for $55,000 or $59,000 or something like that. I can’t remember. It’s a nice little brick ranch house and I love brick ranch houses. I like houses that are easy to sell, right? Ranch-style houses. Brick houses are easier to sell. Houses that have kitchens. Right?
Larry: Houses that don’t need total rehab, that the ceiling’s not caving in, the floors aren’t falling in. I like a light rehab or you know, painting carpet, whatever. But this was a good little house. It was listed mid, high $50,000-ish. His first offer was $30,000. Okay? And then they countered and I always tell people, when you’re making an offer on a house, I can tell you especially if it’s a bank-owned property, their first counter is going to be within a thousand dollars of list.
Troy told me this just yesterday. He said, oh my gosh, I’ve got to counter. He was excited. And he opened it up and it was like, they were asking $65,000 and he offered like $30,000something or $40,000something and they counted at $64,000. He was like, this is not a counter. I told him, I said, Troy, it’s okay. All they’re trying to do is test you. They’re just trying to see if you’re serious and you’re going to come back with another offer.
So you raise yours up $4,000-$5,000 or whatever. So anyway, Gerald, he made the offer on this house. $30,000, I think. And they were asking in the mid to high $50,000s. And they came back within like a thousand or two or whatever. He raised his offer to $35,000. That was it. And guess what? They took it. They took it the same day. I couldn’t believe it. I was so thrilled for him.
Kandas: That’s good. I’m excited.
Larry: So yeah, we’re going out there to sign the property and get it going and it’ll be his first closing. He’s been with us about a month-ish, I think.
Kandas: Something like that.
Larry: Yes. So I’m really excited for him. He’s going to make some money. We’re going to make some money. It’s going to be a good house and a deep discount for somebody. We’re probably going to offer it for $44,900. Something like that. Right? We could even offer it for $49,900 and still make good money.
Kandas: I think we should start at $49,900. That way, we can drop it. We know we can drop it if we need to.
Larry: Yeah. You know what? You’ve got to always go down. It’s hard to go up.
Kandas: You can or you can’t.
Larry: That is exactly right. So guys, this is some of the things that we teach at our events. I’m going to go over wholesaling, fix and flips, seller financing, lease options, negotiating, marketing, advertising, sales, automation. How to set up your business. Asset protection, entity structuring, tax planning, tax reform, using your self-directed retirement accounts. All that. So call
Kandas: 877-Larry-Go and that’ll get me. Obviously not when we’re recording but it will get me and then I will be able to talk to you about the three-day event, about the digital investor’s kit. The physical investor’s kit, taking a tour, anything like that. 877-Larry-Go. You could also text BRAG to 803-897-6063.
Chad: Thank you, Kandas. That is going to wrap up this week’s BRAG Radio, leading the world to be rich and generous. Tune in again next Saturday as bestselling real estate investing author Larry Goins and co-host Kandas teach you the latest strategies and techniques the pro use to make money in real estate. It’s BRAG Rado leading the world to be rich and generous. On News 1110, 99.3.