Turn Expired Listings into Cashflow Subto Deals

does this not just add more like concrete evidence that agents just don't know what the hell they're doing sorry agents but here you are you've got an agent that's struggling on a listing that could have solved the problem and gotten paid in the process and the only thing they were taught was put a stick in the yard put it on the MLS and accept cash offers that's the only thing they've learned right so outside of that they don't know what they're doing hey guys I'm here with Josh valenzi and Kevin Cho 12 on Instagram he's unbelievable he's amazing I've put a lot of pressure on this guy to sell me 50 deals in Maricopa County in Pinal County and 15 deals outside of the state have you done any outside of the state this year two in Vegas yeah no oh yeah tune to Vegas in four in Texas four in Texas so we're at dude and one in Florida he's going to make probably 600 700 000 this year and Josh is going to make probably 150 to 200 000 a year as a 19 year old as a 19 year old and what we're going to talk about today in this video is the anti-real estate agent strategy that we just came up with today okay what do I mean by that we're going to talk to you about how this house was listed with an agent and Josh and Kevin and Chris Jean-Baptiste that's right here called the called the agent for months called the agents for months called the agents for months and the agent never pitched creative Finance to the seller and the agent said seller's not interested seller's not interested seller's not interested the first hour that this house went off Market what did the seller say to you the seller said we're very interested very interested went from the agent saying no no no no no no no no to the second that this was an expired listing Josh called the seller Josh and Kevin are Partners on this deal they assigned it to me they made ten thousand bucks and we'll go through the story in this video and hopefully you guys enjoy it so where'd this deal one where'd this deal come from I called it it went off Market and it's been looking at this house probably so Josh has a Advantage what's what's Josh's advantage over most people time agent I'm an agent he's an agent yeah the only advantage to being an agent in my opinion is that yeah I checked I checked that Melissa was gone so your MLS gives you all the expired listings and you immediately call the seller an hour after it goes unlisted great strategy it's one of the best strategies ever and I get people go man I I was on a live the other day and this girl goes man I keep submitting offers to agents and I'm like in my mind like why why not just go after expired yeah so what'd the seller say so the seller says oh this is great um and Angelica was the agent's name she brought it up but they never went for it with Angelica because Angelica made it seem unappealing right but when I presented it they were like oh I love that I didn't know about they do on sale costs which you guys do to prevent that and what happens if they do on sale class gets called so then about an hour after talking to them on the phone I was like eight at night we talked to like nine they were like you know what send me over contract and then yeah they signed it the next day amazing so the three reasons why a seller won't sell to you on Creative Finance why are they what are the three reasons they need the money number one is not they need the money what's the number one they don't understand it yeah that's it I get so many people like oh my seller said no agent said no like number one reason it's probably 95 of the reasons why a seller won't sell to you on the creative Finance is because somebody did a horrible job explaining it to them right it's the same thing when like you learned what creative Finance was yeah right like you went through real estate school you did all these things and you still were like wait what wait what wait you can take over a mortgage and you can do this stuff and yeah wait do on sale Clause so even you like everybody has to learn it so if you can dumb it down for the seller and help them understand it like a third grader you win every time yeah and the problem with the agent is because the agent is so used to just going after cash deals then when they present creative Finance to the seller the agent like you said doesn't make it sound appealing doesn't know how to pitch it properly and honestly doesn't know all the answers to the objections so they are hoping the seller says no I'm not interested in that yeah I've heard agents pitch creative Finance to Sellers and it's awful and I'm like are you trying to kill this deal and then you realize the answer is yes because subconsciously they can't answer the objections right so like I don't want to answer any of the objections I don't have the answer so I'm going to try and deviate you so Angelica actually pitched the sellers and they were like oh she didn't explain it this way yeah so how much did the seller get I made 25k 25k what's the interest rate on the house the interest rate is four flat okay great and then the is this the one where I paid you you guys picked out a big old assignment thing on it and I was like you're pushing it that's one closing two weeks okay yeah yeah this is uh how much did you guys make on this one yeah we got 10. yeah you split it yeah yeah how much money did you make last year last year I made I made twelve thousand dollars last year made twelve thousand dollars last year working at Starbucks okay how did you meet me I met your wife through the Starbucks line okay and then my wife okay met my wife through a Starbucks line yeah and my wife was like oh you're an agent come on my team and then my wife then pushed you to go work with Kevin right so your wife I so we met when I was in high school I was 16 and she's been my regular for like three years at this point and then I know exactly what she gets and then she was like hey Josh what did she get she gets a venti ice matcha with soy milk and Light Ice yes every single time or sometimes she gets a grande mocha iced with soy milk too yeah so it actually gets both sometimes sometimes she gets both yeah peach tea yeah sometimes she'll get a peach tea that's for me though and Laney likes a beach and Laney yeah wow bro paying attention yeah good salesperson yeah so she was like you should become an agent and I was like great I'll become an agent she goes when you become an agent come work with me so then I said becoming an agent I became an agent this is my my wife and I are completely different I would never ever tell somebody to go be an agent I literally like people what should I do to get into real estate I'm like step one don't become an agent and my wife is going around telling people to become agents what the heck yeah I gotta text her and tell her we have a problem so so you go become an agent and then she's like hey come to this Meetup I meet Kevin at the Meetup and then she's doing some agent training with me and she tells me that if you go work with Kevin you and Kevin will be unstoppable so then now now me and Kevin it's basically March March just ended how much money have you made so far this year this year I've made the with this closing tomorrow I'll have made I think 25k total amazing on real estate so you're on track to make 100 Grand this year 100 Grand this year and business is only picking up you literally you'll probably you and I know Kevin will probably make six hundred thousand seven hundred thousand this year's is my hope for him and then um You probably as you ramp up you'll probably go to like 150 maybe 200 000 this year that's the goal 200k is the goal expired listings isn't it ironic that you became an agent so you could go and call other agents failures and then not actually be an agent in the transaction yeah if you're a real estate agent and you're paying attention to this let me say this one more time to you Josh is going to make 150 to 200 000 as the economy is trending downward everything is somewhat imploding do you guys see all the defaults in the commercial space right now all the massive like apartment buildings like billions of dollars of defaults um advertisers like in the TV world for our TV show The advertisers are spending 40 of what they normally do so they cut their ad spend by 60 it's across the board everybody's there's layoffs everywhere layoffs everywhere yeah you are gonna eight acts maybe 12 extra last year's income and you did it by becoming an agent so you could call expired listings which expired listings equals failed agents listings you call them call the seller and say hey how about you just let me take over your payments yeah it's not that hard is it not that hard at all 19 year old 19 and a 19 year old why is it that people that are 40 50 60 years old you don't know the answer but why do you think why do you think people don't do this Kevin they have a set limiting belief from the past and they just haven't unlearned that yet yeah I think the advantage you there's a disadvantage and an advantage for you guys being really young the advantage is you haven't learned the wrong way I learned the wrong way I learned to trade my time for money right and I did that all the way through my 20s I got I had wife and kids so then everything in my mind is like I need to go and make money so I can pay my bills next week so you'll go exchange all of the time that time for money so you didn't learn the bad habits necessarily you probably saw your parents and everybody's like go get a job right but you're 19 so you didn't learn it wasn't ingrained in you like it was ingrained in most of us the disadvantage to you is that when I call a seller I've had real life experience so it's really easy for me to talk to a seller and find Common Ground whereas you like if you're 60 how can you not talk to any single human being on planet Earth like you have every Common Thread you could imagine kids no kids I've traveled here I've done this yes you don't you by that point you have all the experience in the world to talk to people and so for you you are currently learning how to talk to people and navigate away from your age as an issue yeah that's what I find yourself as non-credible so the the best the best only benefit of being an agent is that when I'm calling these sellers I can say I'm an Asian yeah I know okay at least you've gone to a two-week class and spent a thousand dollars yeah so so the sellers are like oh he's an agent I never dropped my age it would probably kill the deal isn't that so funny yeah that real estate agents get that much credibility it is the most worthless license on the planet Earth yeah it is it's like you take an agent that just graduated real estate school girl they didn't know another thing about real estate right when you graduated did you even know your butt from a hole in the ground zero clue about anything I had but you were licensed yeah I was licensed and you you could represent a seller on their largest asset in their life yeah isn't that crazy if you're an agent and you hate me make it make a comment down below and say I hate your gut space but it's true and so um agents are having a really hard time days on Market going up for a lot of Agents is a negative thing but days on market for you going up is a big benefit yeah have you have you guys all looked at how many um expired listings go on every single month in your respective counties do you know how much we have here thank you so I was looking at it today I think it was 600 when expired this month 600 list are you okay oh yeah no I'm good you need to eat more kimchi bro um so the um 600 listings when expired just in Maricopa County yeah which means you have 600 sellers just like this that an agent failed to sell the property exactly 600 opportunities why is it that the seller why is it that the agent couldn't sell this property because she so I would present the offer right I probably called her we were on the phone so many times probably once every two weeks that's when I would follow up how much money did the agent well okay so you answer that question first and we'll go to the next question so I would follow through every two weeks send her and I'd send her an Loi probably about once a month and the LOI was will give like 15K to the seller and we'll pay your commissions right this agent wouldn't do it she wouldn't present the offer when I talked to Robin as the seller she was like oh I haven't even seen that email yet so she had no idea that we even presented this Loi so then Robin ended up making the 10K that the agent didn't make Robin made more money because the agent couldn't sell the house isn't that amazing yeah the the agent wouldn't even present the offer so that really is the main ant there's a couple answers there is why why did the agent have a hard time selling the house probably because the seller didn't have a lot of equity no they had basically none they would have netted zero okay so they had very little Equity so the seller the agent doesn't know how to handle that situation we haven't we have an agent class on April 21st in my office we have about 300 agents coming in I think we have 280 spots already filled and we're going to do six hours on how to present creative Finance to your seller so if you're an agent I have Eileen Brown my longest uh running escrow officer and then Sean Sinclair my real estate and contract attorney is coming in for six hours to teach on all this kind of stuff so if you're an agent we'll put a link in the description down below to sign up for those free classes they're completely free why do we do them because I want to do deals with you and the fact is that agent should have just let you do the deal yeah and and here's the problem agents if and this is a shout out also to David Green okay shout out to David Green David Green made one of the most irresponsible comments on a YouTube video recently it was so irresponsible he says that sellers don't benefit from wholesaling and basically wholesaling is borderline illegal I don't wholesale I don't do that I don't I'm not like I'm not gonna say it's immoral but in general I just don't like the model it's skirting lines of legalities it is rarely beneficial for the seller of the property wholesalers will always tell you that they're working on a deal that's win-win and sometimes I do think that happens but the majority of the time I think that the the seller would make a lot more money if they put their house on the MLS where everybody could see the property and other investors would have access to more inventory versus when they just sell it to a buyer's list and a guy like me gets instant access to those properties that I buy all of them and your normal investors just don't get to see them so I'm not really a huge fan of the wholesale model the people who come to me that want to make money in real estate I'd rather sell their house for them and get them as much money as I could then just get them a quick sale and some investor is going to make money and he says sellers will always benefit not always he says the majority of the time the sellers benefit by listing a property with an agent they get way more money well guess what the agent listed this property and 600 plus other agents listed other properties in Maricopa County which all failed and not only that but a wholesaler called that agent every two weeks every two weeks every two weeks and the agent got to a point where they just would rather have an expired listing than just listen to you and present an offer to the seller yeah did you guys not wholesale the sub 2 deal to me yeah okay so wholesaling actually was a better benefit to the seller in fact a listing pay attention to me the listing failed and wholesaling succeeded here so if you ever make a comment that wholesalers don't bring value to the industry just means that you probably don't have a pulse on the industry that's all there is to it 600 who what other Market are we anybody in here Brooklyn stand up do you know how many expired listings are in Brooklyn Chris there's a lot a lot yeah okay so you got the agent failed the listing why did the seller need to sell where were they going what were they doing they're moving to Tennessee so there's the bunnies right yeah the seller had bunnies they like were moving we don't want to have two house payments yeah why wouldn't the seller just turn this into a rental themselves what Kevin because they're not investors it's the best answer ever people when I I got into this business I'm like why doesn't the seller just like do what I'm trying to do turn this into an Airbnb or a rental or something it's like sellers are not going to meetups and learning how to be Real Estate Investors and the funniest thing funny thing is this deal this this listing has been hit up by like at least 20 30 other sub-2 students like I know like just right on top on the way here I got a call from a guy uh another stuffy student named Chris not him well he wasn't one to call too and I called too check this out Kevin called it first oh I remember this I called it second yeah then he called it this is with the agent yes yes okay so the agent so this is where you guys are trying to do a deal with an agent by the way this does this not just add more like concrete evidence that agents just don't know what the hell they're doing sorry agents but here you are you've got an agent that's struggling on a listing that could have solved the problem and gotten paid in the process and the only thing they were taught was put a stick in the yard put it on the MLS and accept cash offers that's the only thing they've learned right so outside side of that they don't know what they're doing and um so you called Chris Kevin called agent said what what did the agent say to you uh no the seller is not going to go for that no basically being the gatekeeper yeah we're standing on the back patio of the house that the seller went for Creative Finance 100 in a heartbeat and they were excited about it they were pumped yep they they said I can't believe that I've never heard of this before they were super excited and they had an agent for six months being reached out by Chris back you called them five six months ago probably yeah yeah I remember the text message I I know so many students I called this listing and like you probably recognize until on the way here there's a guy uh you made an Instagram post about the Anderson Road somebody somebody had my number and they asked me hey what were the terms because we were going after and I'm happy that you got it sellers needed to move to Tennessee we close on this tomorrow tomorrow nice who's doing the TC work on it my TC and Molly okay wow this house this house is great this is awesome I don't have to do any work here I might I might replace the carpet with like a linoleum okay so oh actually no that's a that's just a pro probably the only thing I'll do here is I'll take the carpet out and I'll just do this I know where this linoleum comes from this is a good linoleum and I'll just do that in the bedrooms paint looks good the doors look good it's a three these are three big bedrooms too yeah right so dude this house is great this is a great house like I would turn this into this is a pad split you could do a pad split here and just rent by the room and you could probably get bring in I don't know three thousand four thousand a month yeah but an Airbnb in this area this is a freaking great house right on the corner lot pool in the backyard did you pull it up did you see what this could bring in or what do you think I I will just down the road oh you have one down the road yeah what's it bring it in pool I did 126k holy moly last year there you go this one's not as nice resort yeah yeah okay so you think 80 grand in a year conservative yeah I mean that's great okay so it's a four bed with an E with a little guest house yeah so it's a five bed house right so I could bring in 80 grand in a year on an Airbnb and not even have to really do anything except furniture how much am I out of pocket on this deal I paid you guys 10 grand yeah seller got 25 so I'm into this 30 40 Grand after closing costs just about yeah what's the purchase price do we know something isn't it Mortgage Balance here's what guys everybody on IG here's what's great about creative Finance investors none of us care about the purchase price so every time I buy a deal somebody's like what'd you buy Fargo I I have no clue yeah I I'm I think we bought it for the mortgage miles right so we because we buy for the mortgage balance we really we're not super concerned about any of that school we care about interest rate yeah cash out of pocket and what the payment is and then you add all that up and you compare it to what you can bring in and that's how we know if it's a dealer yeah super easy we are what's the address here Glendale Arizona a new house that we just bought subject to Kevin and Josh found this from an expired listing so if you guys are trying to find deals stop asking real estate agents because what happened here is Chris Jean-Baptiste Kevin Cho uh Josh and a handful of other people tried to get the agent to sell the property subject to and the agent's like no they're not interested turns out the agent actually never pitched it to the seller so Josh called the seller an hour after it went on unlisted or failed listing um shout out to all the agents out there thank you guys for failing so hard in the market right now we have another one that we that you're buying that's also a fair listing in Buckeye when's that closing in two weeks cool yeah how how can I I'm trying to buy three Deals this week I need actually I bought it I bought a deal today in Texas three percent you guys got deals where are we buying deals we should be getting one sign today from what part part of the area Casa Grande okay I'll buy in Casa Grande I told Kevin I'll say yes to everybody so let's let's talk about this let's talk about what my actual cash flow will be on this so I'm I'm into a 25 seller 10 grand to you guys 5 000 in miscellaneous I'll probably have to put another 25 Grand into Furnishing doing a little bit of judging like maybe do linoleum and a couple little things yeah so I'll be into the deal 60 Grand okay okay sixty thousand dollars if my payment is twenty five hundred dollars Chris give me give me some math here let me see your give me your calculator so let's say that my payment is 2500 okay and then I've got management and utilities of a thousand so it's gonna cost me 3 500 a month to operate this property okay if this property brings in let's say 6 500 which is what it sounds like it can 6500 78 Okay cool so this property could probably net around two thousand dollars a month wow okay so think about that what's my cash on cash return there so two thousand dollars a month on fifty percent yeah it's gonna be somewhere around so it's two thousand dollars a month times 12 months is twenty four thousand dollar return yeah divide that by my sixty thousand dollar investment it's a forty forty percent cash on cash return so most of most investors are like give me a 12 cash on cash return this is a forty percent cash on cash return that's pretty good um okay so anything up any construction that we have to do here probably paint get rid of the green newer cabinet so this is nice the linoleum matches which is also good washer and dryer in here dude this is like die I I don't have to spend much okay this is great forty percent cash on cash return no credit check no nobody I never even hadn't talked to the seller all I had to do was teach a badass how to go out and be a badass well I didn't really talk to the seller either I know okay but that's what I'm saying I taught a badass how to be about us and help other people right that's everybody's job Chris's job it's Wes's job it's like how do you take newer students and help them out and cultivate them and get them doing deals that's your job right this is a house that Josh and Kevin sold to me on the sub 2 deal you guys made 10 000 bucks on it I hope this ends up being an Airbnb now if here's the cool thing is like let's say that I'm brand new and you need to do this this year and you got to like venture out and take a chance you have it what's our goal you and me 50 deals in Arizona 15 deals outside of Arizona so 65 deals a little 65 yeah it's 65. you can do it you're just building momentum oh yeah yeah so you and I will do 65 deals this year Chris and I are into at least 50. you're going to do a lot of deals that'll be great you'll sign a lot whatever but at some point you go to Wes and you go hey Wes would you want to be my partner on this would you partner with something on this for 40 yeah 60 grand out of pocket you guys own the property together let's say you guys do a 50 50. you get an infinite cash on cash return because he brings the money to the table and you have nothing like you need to do a couple of these yourself this year maybe it doesn't I'm doing I'm doing two right now where I'm buying houses traditionally through the through some through a sponsor sponsor converts so you've got somebody sponsoring your loan which is a gator strategy 4.0 yeah and you're going to hold they're going to hold the note or they're going to partner with you I'm going to buy this stuff too okay is that great yeah and I can pick and choose which house you know what's funny is all of his friends went to college [Laughter] I'm going to my friend's graduation in UCLA this may you have any uh college student loans no no do you have any debt from college or anything just no I don't have any debt will any of your friends with their college degree make any make more money than you this year no not even though gosh and the fact that you're like oh yeah somebody's sponsoring a loan then I'm gonna buy us up to and I got one going here in Tampa I got this is that not a deal it's a deal closer it's a buyer we have who buys some deals hey guys we want to give you a gift my wife did a training on expired listings how do you find expired listings in fact once my wife convinced you to become an agent right yeah but we're going to give you a training on how to find expired listings so click a link in the description down below and you'll get a free training on how to find expired listings and what is the script on how to talk to them and make money like these guys combined you guys might make a million dollars this year combined yeah that's freaking crazy wow so click the link down below and we'll give you all that training we want you guys calling these two boys we'll give you guys their Instagram down in the description down below and on your way down there don't make me say this every time we make a video hit the Subscribe button because 81 of our people that 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Channel: Pace Morby

Views: 28,329

Keywords: real estate, real estate investing, pace morby, pace morby creative financing

Id: sYMaV3f4Q0Q

Length: 24min 51sec (1491 seconds)

Published: Sun Jul 02 2023