Three Beginner Mistakes to Avoid in Subto

Don Walker everybody's on Walker thanks guys [Applause] appreciate all the love it's kind of weird to get all of it but I love it thank you um okay so you the deal closed like you got paid right [Music] paid yesterday we're still dealing with one problem with the title company but it's something we're fixing tomorrow so what's the problem Heidel doesn't want to record the performance deed and we're having to amend the addendum and so we're going to send that out tomorrow Molly's on top of it and so is Allison so I messed up from the beginning I made a mess and I didn't realize that it wasn't proper to hold back on the performance seat and offering that I just heard it so many times during the zooms I was like yeah we can do this right so that's a Learning lesson for me because it does create quite a bit of problems sounds like in Texas with title companies so it makes a lot of sense to me I'm still trying to piece it all together but I think we're good the seller's happy and she was excited that she got her three thousand dollars so she wasn't expecting that so it was good so tell me the story tell me the bunnies I want another bunnies so a maybe elephant brought this to me and at first they wanted a baby elephant for the people are brand new a baby elephant is someone that comes to the elephant challenge that is brand new doesn't know hardly anything about real estate or they just have struggled to get anything started in their real estate business so they come the elephant challenge so I am leading Zooms in the elephant challenge so Scott bottomley is the elephant and he first went to Myron Myron said hey go see Dawn so I said yeah well let me see what I can do come to find out it's an agent that's selling her own home that's leaving Texas to go to Atlanta so she uh she's like I'm done I just want to be done it's like okay great so she said yes to the deal after the first call that I had with her Scott did a great job teeing it up and so Center the contract the next day she responds and says after T talking with my broker I decided not to go through with the deal well that's not the end of it on Saturday my partner Mike sees a post in sub 2 that says hey family my one of my family members is having a hard time selling her home she needs some help can somebody help turns out it was the property that I was helping with and so I was trying to reach out to this sub 2 student like oh my gosh I don't want him to think that I was going around him or that I was trying to circumvent anyone right so I was trying to get a hold of him we didn't end up talking until later on Sunday when he responded but I already had a phone call set up with the seller again for Monday well then on Monday I talked with the seller she said yeah my broker didn't know what she was talking about she thought you were assuming the loan I said oh no we're not doing that so that's when we go into how is she protected what happens if you default well that's when I as a knucklehead offered to do the performance deed without even explaining to her the deal couple things I want you so listen to all you new people by the way Don how many mistakes do you think you made in this total I'm gonna I'm gonna give you the first one there's at least at least 25. perfect it's a requirement guys it's mistakes are a requirement it is the soil in which your learning will Sprout from the more that is in that soil the healthier that seed becomes yes I agree sorry for saying for anybody's anti-shit it is the manure somebody's like Pace you could have said manure it is the manure in your soil and that is where the seed Sprouts from it is impossible for you to be successful without the manure for the people that are like oh my gosh I'm trying to avoids oh my gosh just avoid being a business owner it's 99 mistakes you know what's great here's the statistic okay out of a hundred people that think about taking action 10 take action out of the ten percent of people that take action ten percent of them take consistent action and out of those 10 those are the successful people action requires mistakes so I'm gonna tell you guys the first mistake just real quick okay the first mistake she made maybe she didn't know this and this is the good practice you have to go through right now she has experience she has a story she has a feeling inside of her that stuck with her what are the three reasons why a seller will sell say no to you on sub 2 or seller finance what are the three reasons number one they don't understand how it benefits them or they're confused at how it benefits them which typically comes when you're brand new and you're like oh this person wasn't open to sub 2 and their broker destroyed the deal that's not what happened here but when Don Walker got off the phone Don Walker Texas Ranger okay Don Walker got off the phone with that broker and she's like gosh dang it I got a seller who's like ready to go but the broker destroyed the deal was it actually the broker no it was that Don Walker needs more repetition on how to explain the difference between assumptions and subject too that's what actually killed the deal in the very beginning and then the universe is like oh hell no we are giving this girl a second chance at bat how freaking dope is that Don it was amazing but I went for three strikes that's that's what happened at the end of this so okay I gotta hear this son we haven't even gotten there this is great so you already got strike one and so God gave you a second at-bat second at bat and then so you this the you got back in touch with the seller and you said no we're doing sub two here's the difference then the seller's like okay awesome let's move forward now cat now keep gone I want to hear straight I want to hear a strike too so what I did great let me let me Angela time with my TC 's to walk through the car set it up for tomorrow at 10 A.M because she had to work that evening said perfect gives me plenty of time to make sure it's all correct so we set up the time I got the TC on the phone who's the TC it was Katie Holmes she was amazing and I became an and asked so many questions of her and she just felt followed through with it it was amazing so if you guys need a TC reach out to her then we get ready for the phone call and so I talked to KT get her on the phone then we get the seller on the phone well we're both ready to go to walk through it well as an agent she wants to keep things a little close to the cuff she wants to be able to have her time to go through the contract which I understood because she's like no I'm good I'll just read through it because she's already seen it before she just wanted to make sure everything was still there as we put together the first time yeah and it was just which is really tough because agents are trained to do this for their clients their whole career like don't just get walked through a contract and get close like give your seller or give your buyer plenty of time to talk through it and have a conversation about it and blah blah blah blah so that's what she said she said no I'm not going to walk through it just send me the contract I'll do it myself is that what happened yeah that's that's what happened I said great if you need anything call me if you have questions let me know I can get the TC on the phone if there's something I don't know the answer to she said okay great we hung up real quick question this is your first deal so I want to give this some breath how good did it feel to be able to say let's get my TC on the phone instead of you worrying about all the all the stuff oh my gosh it was so good it was so good because I was looking at this contract like I have no idea what all of this truly means it's like like you said before it wasn't important to me in the moment when I was just trying to find a deal or find a lead until it became apparent that I needed to know those things it was so much better that I had somebody that had the knowledge in the ins and the outs of the contract that I haven't been through yet or understood so that took so much weight off of my shoulders so guys seriously get a TC to help you when you are going through a deal even if you feel confident understanding the contract it's not about you understanding it it's about the seller so there's also also The credibility that comes from you being able to say let me have my TC call you right that gives you like especially talking to an agent who has a broker like how legit do you sound when you're like let my it's almost like you're saying like gray Poupon it's like you're so fancy it's like let my transaction coordinator call you like it's so legit to be able to have that opportunity it also takes all the pressure off your back especially you had a badass do your transaction coordinating so shout out to her for doing a great job yes but Brianna says but Realtors have TC's too yeah exactly my point could you imagine if they are like oh you're doing the paperwork yourself it's the uh the opposite is true if you come to the table with a real estate agent who is used to working with the TC and you come to the table to buy their house and you don't have a TC it makes you look like you don't know what you're doing just as bad if not worse right right and I even asked her at the beginning I said do you feel more comfortable using the state contract or does it matter which contract so you can use whatever contract you want so I was like great I'm going to use a sub 2 contract that's the one I went with so I get off the phone with her at 10 A.M that's on a Tuesday and I have my elephant Zoom at 11. so I'm on my elephant zoom and I'm going through everything and it's on for two hours 40 minutes in I get a text message from the seller while I'm on the zoom saying hey Don I accepted a cash offer I'm gonna go with that instead and I'm like trying everything not to cry in this because did she sign your contract before this or she had she still hadn't come okay we had just gotten off the phone she had not signed it she was reading over it again by the way shout out to this lady I love this lady already because she told you straight up like hey I'm going a different direction like so many other sellers would have ghosted you you know what I'm saying yep so shout out to that lady so she sends you that text how did you feel what were you going through how I think in I think eight days at that point no matter what if she sold the house or not so I just said hey I hope this is you know going to bring you some some peace of mind here to go with that offer if you need anything or you have questions I'm still here and I just left it at that but I said congratulations it was hard for me but I did a job dude great job shout out Dawn Walker thank you are you kidding me that is so hard on your first deal to be like that like you want to be like are you kidding me flame emojis and sending her gifts of like fighting agents and stuff like that I mean like to be that close I mean for a second time I was like dang it oh my gosh dude so that was done now here's the thing she was selling her home for 3 39 she bought the home last September so it's a brand new conventional loan and she's already leaving so the offer came in at 3 28 for cash and I'm like man she's gonna have to come to the closing table and and pay money but I didn't say that to her I wanted her to just go with the options she felt most most comfortable with so the next day I reached out to the the family member that's in sub 2 and I said hey man I am so sorry I had no idea that you were related to her or that you were helping her I didn't know she was talking to anybody else but I wanted to let you know that I wasn't trying to go around you just being transparent he goes no it's it's fine it's totally okay so a week goes by after that I think I lost lost the deal and so I let the baby elephant know hey man this is what's going on just updating you sorry it didn't work out on this one hopefully on the next one and he said something that I should have paid more attention to he goes well you never know I said you're right we never know but I didn't hold it with a grain of salt a week later at 7 30 at night I got a text message from the seller saying hey Don my cash buyer fell through are you still interested I was like I said yes I am and what happened I'd be happy to help so we get on the phone I start talking to her and she goes at this point I don't care I don't even care if I get three thousand dollars like we talked about last time you can just take it I was like okay well I think I'm gonna honor giving you the three thousand dollars because that's all you wanted so why not let's just do that so I said I'm just gonna rewrite I'm so freaking pumped right now dude you freaking straight up like that text message on the way you gave her love and the way you perspected her and said hey I I hope this gives you peace dude oh my gosh it left the door wide open Dawn it did and just so you know there were so many people between the last like three or four weeks that this has been going on I reached out to Angie milazzano who talked with me for like an hour and a half because I was freaking about something going on in the contract or how to explain something what I was missing what I didn't so Angie shout out to you thank you so much Mike Jackson my partner I love Mike he spent 3 hours him and I were trying to put the first contract together really quickly to get it over to her the first time and he spent all afternoon with me trying to make sure that got done and he was just there from start to finish and I couldn't ask for a better partner so and then however many people I talked to this family is amazing just so you guys know if you're new this is what relationships are for I could reach out to Carolyn and Myron I can reach out to Angie Lozano Mike Jackson I mean the list goes on about the people that I talk to in between trying to understand and piece things together and they all were there they didn't get upset with me they didn't get like oh my gosh you're asking me this again just go watch a zoom video they took the time to answer my questions and to bring me back down to earth when I needed it please leverage the people around you because without any of them or all of them combined this wouldn't have gotten done and also more importantly be one of those people that can be relied on in moments like this okay be one of those people by the way shout out Robin hurt I'm telling you one of the best seller calls I've ever heard in my life Robin hurt did the other day unbelievable I'm gonna release it like probably in the next week Dawn you networked with these people go to meetups become friends with them and even though you're like hey I'm still going through my journey of trying to figure this out you didn't let that stop you from reaching out asking what other people another Mentor when I was in other mentorships it's like don't bother me dude go watch the recordings that's why like people ask me a question I go hey just so you know I did do this in a two-hour Zoom but I will give you one hour answer yeah because I know people need the answer right now so dude shout out to freaking Mike Jackson and Angie milanazzo and Carolyn and Myron the leaders of Dallas like and Dawn dude you are a leader in Dallas like it doesn't matter that you haven't done 100 deals like so many people have gotten so much help by you just being around so you deserve this so you guys go to close us bro who do we close escrow Scott horn no so that's the other part of the story so I get under contract right after the third strike I get under contract well the seller calls me the next day or I'm talking to her about something on the property like she left some property there she already gave me the keys she gave me the key she left on the 10th so she goes yeah go ahead and do what you need to do gave me the keys which I can mail to if you want them or I can just keep them she said hey somebody just texted me this the guy that the other sub 2 student who's related to her uh had introduced another sub 2 student and she goes hey this other guy is texting me and I go oh okay she goes well wait did he send me a contract and I'm like wait a minute what I was like did you sign two contracts as far as I normally signed one it's like okay can you give me that person's number so I can give them a call and just see what's going on here she goes yeah so she sends me the number get on the phone and it's Zach Shelley him and Scott horn we're going to buy this together wow then you said you were gonna buy it I was like cool so pace is going to buy it this is it this is great but I had to have a conversation with Zach I'm like dude I'm so sorry I didn't know that you were involved as well so this you know this is how it goes when did you start talking to her I just want to make sure that we're we're both good and he goes no you got it you're fine I was like okay are you sure he goes yeah it's good so the seller that I let her know that you know you only signed one contract you're fine it's it's all good she goes okay great she asked about the family member that's a sub two student she goes well I really would like him to be involved would you be okay with that I said Absolutely I'll put him I'll put him on our JV agreement so I have the baby elephant and the other sub 2 student on the JV agreement so because it made her happy as the seller and I was happy to do that so I added him in there with us my gosh I'm gonna sleep so well tonight ha when are we doing another deal as soon as we can but I promise it won't be for 17 grand this time all right that didn't bother me at all well after the conversation you had about the horrible rape with Kevin on one of the sub 2 deals and you know going over when something doesn't cash flow the way it should then you shouldn't be asking for such a high assignment to be honest I just picked a round number at 20 grand as the entry fee it just was like here you go because I didn't want to do the math so I didn't even realize what I had put for the assignment until I did the math after it was all done but yes I will I will make sure that it's kosher next time it worked out it did I didn't I didn't make a comment to you about your entropy at all all I said is when you sent when you sent me the deal I said I don't love the interest rate but I'll buy it oh you said well right like five percent or something of concept and two that I got to do the deal with you I'm so grateful for Molly and Allison and every person that helped me on this and talked to me and was a part of it and for Zach and the other sub 2 student that's related that we all got to to work that's Zach's fine he he Zach and I done deals he's made a lot of money he's fine I was was actually in Dallas and we were having dinner together he goes what do you think I should do do you think I should go work for Scott horn I go yes and it's funny that that ended up being the person that's competing with us on the deal that's funny yeah so I realize I have a lot that I need to go back and unpack and learn and deal all my research From the Vault but I will be better about the performance deeds in Texas and understanding that a little bit better dude you don't need to do anything except just go get another deal I do you learn all your lessons about being involved in a deal that's it yeah oh my gosh like think about this you've been in sub 2 for a while you learn more on that deal than you did in probably the whole year I mean you had more information go in one year and out the other and you probably retain 10 of it of all the things you learn but on this deal it was like hammered into your brain you will never forget any of these lessons which is amazing and more importantly now when you go do the next deal you have a third party store to tell about well the last seller that we did or the last thing that we did and the last title coming in my title company all the vernacular and the terminology changes dude like forget about the money that you made on the deal this is I'm so excited for you here's the other thing I wanted to tell you I found out last week she goes hey I'm actually a broker in Atlanta she has to go she's transferred her license for she's doing nursing but she needs to go back through it and I said you know what my partner on this actually loves Atlanta and he would love to do deals she goes you know actually I want to learn how to do what you just did and I go what's that she goes how to assign I was like I'd be happy to show you that so she saw you assign the deal to me yep and I was upfront with her about it I told her from the beginning I was like look on this I would say hey either I'm going to sign it I'm going to put my own renter in it or I'm going to wrap it to somebody else and she goes okay that seems that sounds great dude I'm so proud of you great freaking work thank you Pace now are you gonna take that money and go buy a Ford with it no you said you wanted to use part of my assignment oh that's a great idea I got a I got a whole bunch of Gator stuff that comes my way turn some of it down and give it hand it over to other people I'll let you I'll give you one of those deals so it turns out I got 17 grand burn all in my pocket oh my word so freaking cool Don anything you have to say to new people that are just starting out number one reference to talk to more number three if you have a problem or you have a question it has been answered but you need to talk to the right people or you need to go find it I can't tell you how many people that have poured into me over this last year I joined in March of last year my first event was at clever investor and that was a whirlwind but it's more the relationships that I've made that have gotten me to this point and that have given me so much that all I want to do is give back in the same way they poured into me I may not be where the biggest leaders are in our group right now but I will be but I'm only teaching for my experience and what not to do and what you should be doing so if you ever have any questions about that or you need someone to be able to reach out to and you don't know who asked me if I can't answer it I'll point you in the right direction with who can so that's that's cool Brad Lewis says you gave me my confidence yeah I mean to make his call I did freaking amazing by the way guys do you see why we work so hard on community yeah I never wanted this to be a mentorship I always from day one a year before we launched up to I wanted this to be a community always guys if you need to reach out to somebody you're brand new Don Walker just did her first deal right get on the phone with her connect with her for 10-15 minutes okay love on her give her some freaking love go in the Facebook group and go dawn Walker thank you Don you're awesome great job seventeen thousand dollars

Channel: Pace Morby

Views: 13,908

Keywords: real estate, real estate investing, pace morby, pace morby creative financing, pace morby subject to, real estate mentor, investing in real estate, subject to real estate, real estate advice, real estate investing for beginners, real estate investing strategies, creative financing real estate, real estate for beginners, investing for beginners, how to invest in real estate, Gator method, investing methods, Buy-sell, agreement, Three Beginner, Mistakes, Avoid these mistakes, Subto

Id: iUS6HyvzSss

Length: 23min 0sec (1380 seconds)

Published: Wed May 03 2023