Breaking Down a Real Seller Call | TU In Review - The Titanium Vault hosted by RJ Bates III

Episode Transcript
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SPEAKER_01 (00:07):
Welcome back to TU in review, the series where I am
going to review a live sellercall submitted by a titanium
university member.
And today is Mr.
Adrian Pearson.
He submitted this call over tome.
It's a pretty lengthy call.
It's about 35 minutes.
He says there's a ton ofobjections.

(00:28):
The reason why he submitted itover is because he felt like
this was a closable lead, but hewas unable to close it.
Now remember, in this series,I'm not wanting the TU members
to submit seller calls that endup in signed contracts.
We're wanting them to submitover the deals that don't get
closed so we can figure out whyand we can work to be better.

(00:52):
So shout out to Mr.
Adrian Pearson for submittingthis so you guys can get better
alongside with him.
Let's get into the call.

SPEAKER_05 (01:06):
Hi Sean.
Hey, my name's Adrian.
I was giving you a call aboutyour property there on Terry Lee
Lane.
Are you still looking to sellthat one?

SPEAKER_03 (01:16):
Possibly.

SPEAKER_05 (01:17):
Okay.

SPEAKER_04 (01:18):
Um also looking into maybe refinance.
I don't know what I'm gonna doyet for sure, but just trying to
see what people are would bewilling to offer on it.

SPEAKER_05 (01:28):
Okay.
How much would we look how muchwould you be looking to get?

SPEAKER_04 (01:31):
Well, I'm thinking of over 300 right now.
That's what I'd like to kind ofbig spark pre point.
Um that's the hell of a deal.
I don't want my phone.
Can you is it is it ringing inyour ear?

SPEAKER_05 (01:49):
Um, it's not too bad.

SPEAKER_04 (01:55):
Maybe it'll stop.
That's better.
Um, yeah, it it's the address is4808 Terry.
I think it's about a hundred orfour hundred and nine.
If it was up to market specs.

SPEAKER_03 (02:11):
Okay.

SPEAKER_04 (02:12):
Yeah, um, it's not it is not laudable right now.
The conditions it needs to havecarpets to put in it or trigger
the floor or something.
It has closed doors and interiorpaint.
It's really what it needs.
And then a kitchen upgrade,whatever that looks like.
It has the old oak uh cabinetsin it and stuff.
People are liking the paint itlook a lot better than I guess

(02:34):
this these days.

SPEAKER_03 (02:38):
Okay.

SPEAKER_04 (02:39):
So um, but I've I've been here 18 years.
Um, I'm behind on my taxes andwhy I'm selling it, I'm trying
to get that satisfied.
Yes, and get the debt satisfied.
So that's where I'm at with it.

SPEAKER_05 (02:58):
Okay.
Um, if you don't mind my asking,how far behind are you on the
taxes?

SPEAKER_04 (03:03):
29,000 with penalties and late fees.

SPEAKER_05 (03:07):
Okay, 29,000.

SPEAKER_04 (03:10):
Yeah, I got 10 jobs for rest, but I got also
satisfied child support debt.

SPEAKER_05 (03:15):
Okay, and how much is that?

SPEAKER_04 (03:17):
138.

SPEAKER_03 (03:20):
Okay.

SPEAKER_04 (03:21):
And then there's a $2,200 fee.
Uh failure to get a permit finewith late fees from 2017 has
just been the account ring.
Um I gotta take care of that's$2,200.
I might be able to talk to themnow because the things have been
fixed that they've cited me for.

SPEAKER_03 (03:39):
Yeah.

SPEAKER_04 (03:40):
Um they'll probably work with me if I had cash, you
know.
Yeah, it probably fell downsubstantially.
And then the other debt is uhthe traffic ticket for$1,100
that has to be paid, and thatshould be pretty much
everything.

SPEAKER_01 (03:54):
Okay.
So pretty interesting start tothe scall.
Um, Adrian obviously using theclosure's formula here, he had a
choice at the beginning wherethe seller was kind of like,
potentially, I'm also exploringto refinance.
He had a uh a path where hecould have kind of really tried

(04:15):
to hammer the seller on.
Well, I only want to have thisconversation if you're
interested in in selling.
He also had the choice to tokind of pull away when the guy's
like, I'm taking offers, I'monly taking offers over 300,000.
But he decided to go down thepath of the the guy said, I'll

(04:36):
sell.
Um, obviously, if I get the theright amount, I'm looking for
offers over 300,000.
So he chose to go or for theright amount.
That's when he chose to go intothe second question, which is
how much are you looking to getfor?
What is that right amount?
And that now has led into a tonof reasons as to why this guy
probably should sell.

(04:57):
I mean, I'm doing this callreview in early August.
This guy is facing losing hisproperty on October 14th, and
he's got a ton of liens on theproperty for all kinds of

different things (05:09):
child support, traffic tickets, citations from
the city.
So he's got a lot of reasons, alot of pain points there.
And so excellent decision byAdrian, right?
He didn't know it when he whenhe made that decision to kind
of, hey, I'm gonna accept yourkind of vague answer on if you
want to sell.
And now it's led us into allright, we we probably are a

(05:33):
solution for the seller,depending upon how much he owes
on top of these liens.
And so Adrian's got a lot ofchoices here, he's got a lot of
different directions that he cantake in regards to the the next
questions that he's gonna ask.
So I'm curious to see where hetakes that.

SPEAKER_05 (05:49):
Uh see here.
Um, you mentioned that date ofOctober 14th.
What happens then?

SPEAKER_03 (05:56):
It goes to the auction.

SPEAKER_05 (05:58):
Oh, to the taxes?

SPEAKER_03 (06:00):
Yeah.

SPEAKER_05 (06:05):
And what options are you sploring outside of selling
it?

SPEAKER_03 (06:10):
Well, I mean we're gonna sell it and satisfy the
debt.

SPEAKER_04 (06:14):
I'm trying to get I'm trying to get some of my
equity back out of it.
I've been here for 18 years.
And I got behind during COVIDwhen we couldn't kick out the
tenants because uh there weredislocated workers.
The state of Oregon wouldn't letpeople let landlords evicted

(06:34):
them while COVID was in in youknow, in effect.
There was gonna be a subsidythrough the Oregon Toast Act
that was supposed to cover theirtheir back due rent, but um the
people living here uh gotbehind.
They used they used that subsidyto move it to move out of here
into another place.

SPEAKER_03 (06:52):
Really?

SPEAKER_04 (06:53):
Yeah, they were actually transferred it to a
different fucking place, andthen I got stuck in a bunch of
no-paid, uh, you know, two yearsof no paid rent.

SPEAKER_03 (07:01):
Yeah.

SPEAKER_04 (07:03):
Like three people, so it really set me behind.
That's what I always came upwith.
My texts was by writing rooms inthe house here.
So after that, it was anightmare to get certain ones
out, and then um I just gotgunshot.
It's actually the first time Ilived here by myself in in 18
years.
Uh I got him out of here aboutfour months ago and I've just

(07:24):
been staying here alone.
So trying to work on the placeand get it put back together.

SPEAKER_03 (07:27):
Yeah.

SPEAKER_04 (07:28):
But I just don't I don't have the money to do what
it needs to get up to fullmarket value.
I just don't um put on it in2009.
This is still pretty good shape.
I think you could probably he'llhe'll pass from that.

SPEAKER_03 (07:41):
Yeah.

SPEAKER_04 (07:43):
It's gonna have to be upgraded eventually the next
few years, too.
But you might get three yearsout of it, probably.
Maybe four.
Um, what were you thinking?
Are you trying to do aninvestment flip or are you
trying to do a rental?

SPEAKER_05 (07:55):
Or um, it would really depend on what the
numbers look like.
I would either do a flip or arental, um, would be obviously
my two main options.
What do you think would be bestfor it?

SPEAKER_04 (08:08):
Well, it it would make it great.
Like I've used it as a recoveryhouse when I first bought it.

SPEAKER_01 (08:15):
I absolutely loved that question by Adrian.
The seller is is trying toexplore what is Adrian looking
for?
Is he looking for a flipperrental?
I love Adrian kind of flippingit back around and saying, I
don't know, what do yourecommend?
And and that's kind of our wayof being like, you know, you
know more about the propertythan we do.

(08:36):
So you tell me, you're asking meto give you$300,000.
You know I'm an investor.
How does that make sense?
This is kind of like when youput them in the four seller
buckets and you're you'relooking at it as hey, highly
motivated, incorrect price.
We have to educate them.
The beginning stages ofeducating a seller is having

(09:00):
them educate us on their thoughtprocess, their numbers.
So now he's asking, he's alreadystarting that process, and it
was very fluid and naturalbecause the seller actually kind
of started that process.

SPEAKER_04 (09:14):
I was actually not really recovery, but recid
recidivism, which is where it'sre-entry program.
Um, and I ran it to people thatwent through a program here at
Eugene called sponsors.
After they did their 90 daysago, then I ran a room to them
because I was feeling friendly,and so that worked out good.
I did it by the week.
And it's actually the house hasactually got five bedrooms in it

(09:35):
right now.
It's classified as athree-bedroom, but that was one
of the permanent issues.
I had an office out in thegarage that has a loft bed in it
that I lived in, and then Irented the other four rooms.
So it was pretty feasible forme, even though things were
rolling right.

SPEAKER_03 (09:49):
Yeah.

SPEAKER_04 (09:50):
But I've been here a long time.
18 years is a long time to be inthat spot.

SPEAKER_05 (09:54):
It is, for sure.

SPEAKER_04 (09:55):
Yeah, my kids are growing up now and gone, and and
so um it's like a country boy, Ilike to get back out out of city
limits and take the boy out ofthe country, but you can't take
the company out of the boy kindof thing, you know?

SPEAKER_05 (10:09):
Yeah, I understand that for sure.

SPEAKER_04 (10:12):
Yeah.
It's been tough for me to livein the city, but I haven't had a
car's license, so it worked outgood because I have the bus line
and other means of you know,electric bike and stuff like
that, so I was able to getaround and do what I needed to,
but um I'm gonna be petitioningthe courts and hopefully get my
license back during the nextcouple months, so that gives me
more options and um I'm justtrying to figure out what way to

(10:33):
go with it.

SPEAKER_01 (10:34):
Okay, so so side note because we can see Adrian's
screen, and now we're gonna haveto blur this out to be on
YouTube.
But what he's doing right hereis he's clicking around and he
he's trying to find the the soldvalues of the properties, and
and I can almost kind of readinto Adrian's mind.

(10:55):
And if you've been doingacquisitions for a while, we we
you probably have haveexperienced this before, but
it's almost like he doesn't wantto accept that the the$300,000
number is an incorrect numberbecause he can sense that this
seller is highly motivated, andso it feels to me, and maybe I'm
incorrect, maybe he does this onevery deal, but it feels like

(11:18):
he's trying to find highercomps, a unicorn comp.
He's he's clicking the bedroomcount from three to four to see
if that impact the values.
He's using Zillow a lot insteadof going into prop stream.
I would have I don't mind himgoing to Zillow just to kind of
look around, but I would rathergo to Zillow to look at like the

(11:40):
actives today, what they'relisted for, and and then just
rely on the sold comps inside ofprop stream.
It's gonna give you all theinformation that you need right
there.
It's gonna show you the bed andbath count and the square foot
and the year built and the dayson market and all of that.
I mean, the facts are this isthis is a incorrect price.

(12:01):
We're we're not gonna be able tocome up to that$300,000 number.
And we've really got tounderstand the dot process.
I know he says he wants tocapture some of his equity, but
how much equity, why, and andthen how does that satisfy him?
What happens if he doesn't getan offer above$300,000?

SPEAKER_05 (12:19):
Kind of once you do get this sold, what is your
plan?
I know you mentioned a littlebit of it.
Go out to the country, like doyou have a spot picked out, or
what does that look like foryou?

SPEAKER_04 (12:30):
Well, I'm just gonna try to find something small that
uh maybe has an ultra orsomething on it.
Something like that.
It's I'll do something simple.
Um I'll be 57 this year.
Um I'm not trying to buildmansions or kill snakes, you
know what I mean?
I'm just right now at the end ofthe line here, so I want

(12:50):
something that that is umcommercial friendly, I guess
you'd say.

SPEAKER_05 (12:56):
I'm not sure I understand what you mean by
that.

SPEAKER_04 (12:58):
I'm a car nut and I'm a um I do metal art and I do
metal fabrication, so I have aton of stuff that's industrial
area in my neighbors in theneighborhood.
This is uh uh HOA, and they sothey give me shit all the time
because I just got cars from ourstill cars that are getting
worked on the driveway, and it'sit's a really quiet

(13:19):
neighborhood.
Um I pretty much pay here morethan all the neighbors.
Uh most of their kids live intheir houses now here.
So I've been here a long time,but we came in 08.

SPEAKER_03 (13:29):
Okay.

SPEAKER_04 (13:30):
So yeah.
So uh you know now, I'm I'd liketo find a political residential
spot where I could hook up aHeinz Kaiser building or
something, maybe, and just livein a loft.

SPEAKER_05 (13:40):
Yeah.

SPEAKER_04 (13:41):
See how things play out.

SPEAKER_05 (13:43):
Kind of have your shop down below and then live up
above.

SPEAKER_04 (13:46):
Yeah, if I was close enough to the city where that
was feasible to do, because I domake a lot of money just
transferring cars and fixingskills for people.

SPEAKER_03 (13:52):
Yeah.

SPEAKER_04 (13:53):
I got a tire machine, I run a little tire
store, and um I'm always buyingand selling stuff up garage
sales and storage unit auctionsand whatnot.

SPEAKER_05 (14:01):
So yeah, I need somewhere to put it all in
between.

SPEAKER_04 (14:04):
Yeah, just be busy.
This house has got oh my god, Ihad no idea I had so much stuff
until I started trying to cleanout these two rooms that I'm
just they're packed full of justunbelievable amounts of shit.

SPEAKER_01 (14:16):
So this is uh unfortunate circumstance.
The the question that Adrianchose to ask, you know, where
are you gonna go after you sellthe property?
Do you have a place?
And now here we are, theseller's rambling and telling us
about how successful he is, andhe owns a tire shop and all
this.
And it's like we've got tosteered away from what we do

(14:37):
need to be talking about.
Now, this was a discovery andexploration questions to see if,
hey, the there's another painpoint there associated with the
move or the timeline andwhatnot.
But Adrian's got to find a wayto take control of this and get
it back on point to talkingabout the property and what the
seller needs here.

(14:58):
Because as of right now, we'rewe're not discussing that at
all.

SPEAKER_04 (15:01):
Like, why do I even keep it?
Because there's something theyshould have probably went to
Goodwill from the storage units,but you're thinking we're gonna
have a big sale and make a buckon it, but people don't pay
nothing at a gross sale, youknow.

SPEAKER_05 (15:10):
Oh, yeah, they're just up there uh looking for
looking for deals.

SPEAKER_04 (15:15):
I'd like to get an auction thing going would be
ideal.

SPEAKER_01 (15:19):
Like a license to be an auctioneer, they'd like to
just coach full of stuff and youknow so Adrian's on the profit
calculator right here.
I do agree with his after-repairvalue of$400,000, especially
just on a quick glance.
I'm not diving into the comps oranything like that, but I feel
like that's a fair number.
Um, I do think the the rehab ofbeing 40 grand, I think that's

(15:42):
light.
I think that's that's prettylight.
And so that's gonna cause us,you know, he's putting in a
contract price to sell our250,000,$20,000 wholesale fee
that puts$42,000 profit to theend buyer.
I just think that the issuethere is uh that the rehab is
light, and so that's gonna throweverything off.
I do like the fact that he'sbeing aggressive with the$20,000

(16:06):
assignment fee.
Now, again, he he might betoggling the numbers, but just
on a first glance, right here,the only thing that I would
really change is that contractprice to sell her and the rehab.

SPEAKER_04 (16:16):
Well, it's I do a lot better, I think.

SPEAKER_03 (16:19):
Yeah.

SPEAKER_04 (16:20):
Uh most of this hair is gonna go in the garbage can.
I'm not gonna leave a mess.
I got a fifth wheel I need toget out of here yet.
It's falling apart, full ofhardwood lumber.
Um, trying to market that rightnow.
Um and get that thing cut up andout of here.
I'm gonna turn it into a flatbedand just throw what I have to
take with me on it and get outof here with it.
I'll leave the plant.

(16:40):
So we'll see.
Might all end up at thescrapyard.
Uh, just depends on how we do onthe house.

SPEAKER_03 (16:45):
Yeah.

SPEAKER_04 (16:45):
Um, I my main thing is I did the time I just want to
get some equity back out of it.

SPEAKER_03 (16:50):
Oh, yeah, for sure.

SPEAKER_01 (16:51):
And I've been getting really insulting offers
from Ah, that's that's like thefirst real misstep there of
Adrian's, where the seller'slike, you know, I just want to
get my equity back out of it.
Instead of saying, Yeah, yeah,sure, I would have liked to have
asked them, you you brought upyou you want to get equity out
of the house.
How much equity are you lookingto get?

(17:12):
How much equity do you have inthe house?
How much do you want net in yourpocket?
One of those questions rightthere would have been fantastic
instead of just agreeing withthe seller, because by agreeing
with the seller, it didn't itdidn't do anything, he didn't
hear it.
Like he he just breathes rightthere.
He's still talking.
I would have loved to have seena question there, Adrian.

(17:34):
A couple people, and it's justreally discouraging.
Where oh well maybe letting himramble a little bit longer
because that next sentence wasimportant.
I've been getting some reallyinsulting offers, and it's been
really discouraging.
This is a this is a majortalking point right here.

(17:55):
This is where Adrian Adrianreally needs to kind of shift
the conversation to let's getdown uh what we need, what's
been happening, why has thatbeen insulting, what's been the
feedback?
This is important.

SPEAKER_05 (18:09):
Where have those offers been, if you don't mind
my asking?

SPEAKER_04 (18:12):
Uh one was at 225 and one was at 245.
What was uh excuse me, that'snot correct.
It was it was uh 185 and 225, iswhat you came in at.

SPEAKER_05 (18:25):
185 and 225.

SPEAKER_04 (18:28):
Yeah.

SPEAKER_05 (18:29):
Okay.

SPEAKER_01 (18:30):
That's what I thought.
Funny enough, Adrian literallyhas on his profit calculator a
contract price to sell or 225,which is the same offer that
he's already received, that wasinsulting.
Now, Adrian could go back to theprofit calculator and try to
manufacture a deal and starttoggling numbers, or he sits

(18:51):
back, doesn't touch hiskeyboard, doesn't touch his
mouse, and says, let's have aconversation about why was 225
insulting to you?
Why did they tell you that theywere coming in at 225?
Why do you think that'sinsulting?
How did you come up with thenumbers that you're coming up
with?
Because now we and then in theeducation process, we want to

(19:14):
reverse engineer and show howwe're coming to that because
that's what our competition isnot going to do.
They just lowballed him probablyand told him 225, and he doesn't
understand why that's the offer,so it's insulting and
discouraging.

SPEAKER_04 (19:30):
I paid for it 18 years ago, so I mean, come on,
you gotta be better than that.
Yeah, that wasn't perfect, butit's still a good solid home.
It's um it's right in the frontin the middle bathroom, uh,
underround the toilet stuff hasall been fixed two years ago.
I did did that whole floor inthere and cut all the rod out of
there from where I had a waterleak I wasn't aware of back in
there behind the toilet.

(19:51):
Um, the master bathroom seems Ahah, we missed a moment here,
Adrian.

SPEAKER_01 (19:56):
You almost gotta hold on.
Before we go down that path, I'mpretty sure you tell me about
the dry rod around the toilet,but I want to talk about these
other offers and what like yougotta take control during that
moment right there.

SPEAKER_04 (20:08):
It should be pretty solid, but it might it might
need to be opened up, but itshouldn't be a big deal.
Um everything looks pretty good,it's just there's a split, you
know, linoleum around thetoilet.
So I don't know what the extentof that could lead to, but it
feels real solid underneath it.

SPEAKER_03 (20:23):
Yeah.

SPEAKER_04 (20:24):
Um the kitchen has marble going in the floor right
now that that comes off thedining room corridor in the main
entryway.
It's all done in 12 by 12 marbletile.
Um that was done probably eightyears ago.

SPEAKER_03 (20:40):
Mm-hmm.

SPEAKER_01 (20:41):
Ah, he did what I didn't want him to do.
He went and he and he changedthe price from 225 to 245.
Adrian, that's you you youlistening to the seller and
being afraid of asking questionsabout why was that an insulting
offer?
You think you're going to fitright in line with that?

(21:04):
Our job is to buy it at theright price, not not just to go
get it signed.
So if you felt like 225 was theright price, you should have
kept it there.
And I'm not saying that's whatyou were thinking, but I I did
kind of anticipate that you weregonna go back to the profit
calculator and change thatprice.
And and what's happened here isyou you're kind of falling into

(21:28):
the I'm always agreeing with theseller.
I understand.
Yeah, I got you.
Instead of silence, question.
That's if if I could make onehuge change for you, critique,
that would be it so far.
You've done you navigated thisconversation pretty well.

(21:49):
It's just there's been timeswhere you miss the opportunity
to ask a question based off ofwhat the seller said by agreeing
with him.
And because he's a talker.
He kind of shifts the topic onyou.
And that moment just like aminute ago, where we were
talking about the other offers,how they were discouraging and

(22:11):
insulting.
We got to get back to that.

SPEAKER_04 (22:14):
I'm redoing the kitchen because it didn't get
crowded right and they all brokeand cracked.
So I had enough tile.
I was just going to brighten itup and throw that in there.
Um so they'll have a new moralfloor in it.
So that just matches through themain part of the house.
I don't know if you guys justripped that out and go purgo a
lot of places like one floorthrough the whole building, but
I don't know.

(22:34):
I'm old fashioned, I like thetransition.

SPEAKER_05 (22:36):
Yeah, it just kind of depends.

SPEAKER_04 (22:38):
Yeah, depends on if you're living there or what
you're doing with it.

SPEAKER_05 (22:41):
Yeah.

SPEAKER_04 (22:42):
But um, that's where I'm at.
And so you can do your math andyour homework, and you want to
make me an offer, you have mynumber.

SPEAKER_01 (22:52):
See, the the seller talked for so long, he's trying
to get off the phone now.
Um, and I I have no idea whyyou're back on Zillow, why
you're looking at your computerand comping.
You've got all the informationthat you need.
You need to be 1000% all in onhaving this conversation.

(23:13):
In fact, Adrian, I had a a callreview with Hunter Spencer and
Cameron Lawfrin the other day.
And and Cameron was doing theexact same thing where where he
was so comping and underwritingand numbers oriented.
I told him, you have to get upand you have to walk away from
your computer at this point.

(23:33):
Start pasting your office.
Get away from this.
You need to be solely focused onwhat the seller is talking about
and what questions you're gonnaask to find out how we can get
the seller to come to the pricethat we need.
Because October 14th is comingand he's saying these offers
that he's received.
Do we even know what that netamount was to him?

(23:55):
Do we even know what the netamount he's desiring is?
Does he even know?
Sellers, more often than not,have no idea how the math
actually works when they sell aproperty.
And so we need to start divinginto that, and you definitely do
not need to be comping andunderwriting anymore at this
point.

SPEAKER_05 (24:14):
I mean, uh, just so I'm sure you said that can be
used as a five bath or afive-bed.
How many official bedrooms arein it right now?

SPEAKER_04 (24:21):
It's three, three official bedrooms, but the
master is split in two, andthere's two closets in it, so it
works out well like that.

SPEAKER_03 (24:27):
Okay.

SPEAKER_04 (24:28):
Um, I could I could tell these this it's just a pony
wall put in there like a dividerwall that splits in like a T.

SPEAKER_03 (24:34):
Yeah.

SPEAKER_04 (24:35):
So the back bedroom is like eight foot, maybe seven
foot by uh I would say fourteen,and then the other fourteen, uh
the other part is gonna be theseseven feet by uh fourteen wide
discounted divider splitting itwith another door that that
where it's technology like wherethe hallway would be, uh the
closet area.

SPEAKER_03 (24:55):
Okay.

SPEAKER_04 (24:56):
So you can out you come into the master bedroom and
you go past the the first closeton the left and pass a door on
the right that goes into alittle like eight by eight
little it there's just a tinylittle box of the room.
That would make a good office.
It has a loft in here as well.

SPEAKER_03 (25:10):
Okay.

SPEAKER_04 (25:11):
A little loft, so there's up you know, there's
storage above where you can putthe built bed on top and store
below.
Um the room is really probablyseven foot by nine foot.

SPEAKER_03 (25:22):
Okay.

SPEAKER_04 (25:23):
But then with the door open, and you have the big
the hallway, right?
There's a corridor, I call itthe corridor, and then there's a
big closet, and then it's afanny deck closet right next to
it, adjusting in the masterbedroom.
Um, but it has a divider thathas another door in it that goes
to the back section.
I can send you pictures of it ifyou want.

SPEAKER_00 (25:42):
Okay, yeah, that'd be great.

SPEAKER_04 (25:43):
Um, well, because at a certain point a week, um,
you're actually getting 13months, and then uh, you know,
that's$500 a month every fourweeks.

unknown (25:55):
Yeah.

SPEAKER_04 (25:55):
So it worked out good when I had all you know all
four of them ready.
It was worth it.

SPEAKER_05 (26:01):
Yeah, that's definitely uh paying some bills
for you.

SPEAKER_04 (26:04):
Yeah, I did.
I lived here a long time withouta house payment.
So I paid the house off in 2012.

SPEAKER_01 (26:10):
Nice.
Definitely gotta move away fromthe oh awesome, gotcha.
Yeah, I completely understand.
Like those those small littleagreements, oh man, it's it's
crushing the conversationbecause he's such a talker, like
you're not really adjusting tolike his personality, and so

(26:31):
like every time you do that, hehas a tendency to just keep
talking and then shifting theconversation.
Like, I'm gonna now talk aboutsomething else, you know.
Like, yeah, I used to get$500 amonth in rent, and then it was
awesome.
Oh, yeah, that's great.
Paid some bills for you.
Yeah, the closet's six by 12,and it's like, oh, now we're
talking about something else.

(26:52):
It's just really killing theconversation because you keep
agreeing with him instead ofasking him something.
So you I know in your mindyou're like, oh, I've really got
this guy opening up talking, butwe're not capitalizing on the
moments that are are coming upthroughout the conversation
because we just keep agreeing.
And honestly, it sometimes it'slike, why are you agreeing?

(27:16):
Like, he wants$300,000 and we'retalking about$500 a month in
rent.
Like, it's no, no, I don't wantto say yes to any of that.
We we got to shift it back towhat we want to talk about.

SPEAKER_04 (27:30):
Yeah, that was kind of a good thing, but kind of a
curse at the same time because Ihaven't charged anything since
then, and so I'm having aproblem borrowing money, even
though I have a$410,$410,000home.
I can't borrow 10% of that topay my taxes, it's become an
issue.

SPEAKER_05 (27:46):
Yeah, it's crazy how that works off.
Like I paid off uh my car nottoo long ago, and my credit
score actually went down becausethey said I'd lost the debt.
Like I lost the good debt.
It's crazy.

SPEAKER_04 (27:59):
Yeah, they want us to be uh they want us to they
want that interest.

SPEAKER_03 (28:03):
Yeah.
Yeah.

SPEAKER_04 (28:06):
I'm paying for it now because they're like, well,
it's not liquid assets.
Well, the hell it ain't thatwe're like can't run away with
the house, you know.

SPEAKER_05 (28:13):
Yeah.
No, I read, I think it was atweet someone said, like, I
think credit scores were made upin like 1988.
And then, like, I mean, beforethen you could buy, you know,
anything just based on you knowa checkstub and everything like
that.
Since then there's thisfictional three-digit number
that determines a good chunk ofwhat you can do in your life,

(28:36):
and like the person ended itwith like uh boomers really, you
know, chopped themselves up andthen pulled the ladder up behind
them.

SPEAKER_03 (28:45):
Mm-hmm.

SPEAKER_05 (28:46):
That's crazy.

SPEAKER_04 (28:47):
Yeah, it is.
I mean, I bought my house in 96,I just went out bank statements.

SPEAKER_03 (28:54):
Mm-hmm.

SPEAKER_04 (28:55):
And they didn't, I mean, I was working for I just
started my own business andworking for myself, and it was
pretty new, but they went outthe bank statements for six
months, and they were like,yeah, give you your finances
also.

SPEAKER_03 (29:06):
Yeah.

SPEAKER_04 (29:06):
Yeah.

SPEAKER_01 (29:07):
They'll do that today too if you if you're
running a business or whatever,but so I mean, like we also had
a massive mortgage crisis liketwo years after that.

SPEAKER_05 (29:18):
But how much would you be looking to walk away
with?
You know, it looks like you havearound 46,000 in debts you need
to satisfy.
How much do you need in yourpocket to walk away?

SPEAKER_04 (29:30):
Well, obviously, as much as I can get out of it.
I mean, it isn't gonna take ahundred thousand dollars to fix
this place up to market value.
I I painted the exterior lastsummer.
Um, so it's got great paint.
It's fighting on the outside.
I mean, it'll it'll fly withflying colors we get past that
part.
The roof is gonna bequestionable, but I think it'll
be okay.
You might the guy might get upthere and scratch a little more

(29:53):
of the moss stuff that's inbetween the edges of the
shingles and maybe putThompson's water seal on it or
something.
I see a guy doing that, he'scalled roof renew.
And he just all he does is hejust demosses it and then
Thompson's water seals it.
It's crazy.
I'm in the wrong business.

SPEAKER_03 (30:14):
No, that's right.

SPEAKER_04 (30:15):
It doesn't look like a new roof, it just makes it
shiny, so people think they gothey, cool, it's coded.

SPEAKER_03 (30:20):
Yeah.

SPEAKER_04 (30:21):
No, it isn't, but anyhow, more power to still if
he can get people to buy it.

SPEAKER_01 (30:25):
So, how much do you think I think double down on
your question?
You asked the question, hedidn't give you an answer.
He went on a ramble about astory about demossing the roof.
This is this is where you got todouble down.
Now, I think you're gonna goback to the rehab because he
said it's not gonna take ahundred thousand.

(30:46):
I don't hate that, uh, but I Istill after that, I want you to
go back to so how much do youneed to net in your pocket?
I understand you want as much aspossible, but you're already
like this is where you couldleverage those other offers.
So let's talk about like what isthe number that you would say

(31:08):
yes to in your pocket?

SPEAKER_05 (31:10):
I need to put into it to get it up to market value.

SPEAKER_04 (31:13):
Well, are you gonna do the work or are you gonna
hire it?

SPEAKER_05 (31:16):
I gotta hire it out.

SPEAKER_04 (31:17):
Yeah, you're gonna probably spend 60 to 70,000, is
what my lady friend thinks.

SPEAKER_01 (31:22):
Okay, I told you your 40,000 was light, even the
sellers coming in.
Now, Adrian, I I'm just gonnapick on you a little bit because
I I know that this is kind of aan issue of you.
I I think sometimes you'reyou're light on that that rehab.
Um, and I I don't know why.

(31:43):
I I would have liked to haveseen you assume a little bit
more.
I mean, just on the street view.
I mean, this guy's talking abouthe gets citations from the city
for all the junk in the frontyard.
I mean, when you pulled it up onZillow, you saw the exterior.
I mean, it wasn't this guy, itdoesn't look like he's living
like a real clean lifestyle.
I mean, it looks like this isgoing to be man cave, uh, pretty

(32:08):
dirty, not really rehabbed.
And he's doing the same thingthat all elderly men do.
Well, I painted the exterior ofthe house.
I replaced the roof in 2009.
What about the bathrooms and thekitchen?
Oh, well, you fixed the dry rotaround the toilet.
Okay, like we know that bathroomhas to be fully remodeled.

(32:30):
We know the kitchen has to befully remodeled.
Interior, I mean, dude, I wouldalmost go as far as to say I can
almost guarantee this housesmells like cigarette smoke.
Like, we have to start makingsome of these assumptions.
That$40,000 number was alwayswrong.
And so now here we are at the17-minute mark.

(32:50):
And now you're back on theprofit calculator and
readjusting your numbers becausethe rehab number's wrong, that
means your your price is wrong,everything's gonna readjust, and
we're going to need to besignificantly lower.
Honestly, you're that 225 numberthat you had was was the
correct, you should have neverpivoted off of that.

(33:13):
Probably gonna need to be alittle bit less than that, but
at least there you had the$20,000 buffer on the assignment
fee, and it wouldn't have been abig of an adjustment mentally
for you.
And I kind of see it on yourface right here, like, oh shit,
like the sellers tell me 60 to70.
And you know, the sellersusually like now maybe he's

(33:36):
accurate because he says hislady friend thinks that's how
much, but this was a misstep wayback in the beginning when you
were underwriting.

SPEAKER_04 (33:44):
Okay, and because in these all new doors, interiors
are those six-panel cheap doors,you know, just the paper type
door.
But they're hammered, every doorin the house is hammered.
Okay, and it's gonna betransparent with you.
So, I mean, just plan on all thedoors, including the entryway
and probably the patio door,should be replaced.

SPEAKER_03 (34:02):
Okay.

SPEAKER_04 (34:03):
And I gotta bid on that for eleven hundred dollars,
which is crazy because I can buyone for$199 and put it in myself
and save myself$900, you know.

SPEAKER_03 (34:11):
Yeah.

SPEAKER_04 (34:12):
So, I mean, that's something we could talk about if
I needed a couple extra days tostay here.
Maybe I'll put a door in for youor something like that.

SPEAKER_05 (34:18):
Yeah, we can work that out for sure.

SPEAKER_04 (34:20):
I'm pretty handy like that.
I just can't do it for myself.
That's the problem.
It's like I'm I'm also amechanic, you know, my cars are
new or run very good.
So everybody else's shit runscrazy.
Yeah, it's life out of devicelike that.
But you know.

SPEAKER_05 (34:34):
Okay, so you're saying, you know, the market
value of the house is gonna bearound 400?

SPEAKER_04 (34:39):
409, I think it was last time I checked, but it
could have come down to I'm notsure where we're at today.
I haven't reached it.

SPEAKER_05 (34:46):
I mean, that's close to what I'm seeing.
So, you know, I buy it for I cansell it for 405.
I'm gonna have to put 70 into itto get to that number.

SPEAKER_04 (34:55):
Yeah, possibly you will you would, yeah.
I I mean that's that's why I Iwould think.
Because I mean a guy could comein here with a paint sprayer and
white it out.
There's there's no bad damage tothe walls or nothing.
It just needs to be freshenedup, couldn't paint, you know.

SPEAKER_03 (35:08):
Okay.

SPEAKER_05 (35:15):
So let's say, you know, let's say I can get out of
there for 55.

SPEAKER_04 (35:20):
Yeah, yeah.

SPEAKER_05 (35:23):
Okay.
So you can sell it for 405.
And then 55,000 in repairs.
So 405, I'm gonna do some mathhere.
See where I need to be.
So 405 minus 55 is 350.

(35:45):
Um for me, I've got closing costand holding costs.
So I'm gonna pay the closingcost when I buy it from you.
I'm gonna split the closing costwhen I sell it after I flip it.
And I like to account for aboutfive percent in holding costs,
just to you know, keep thelights on, utilities, things
like that.
Um so that's around 12%.

SPEAKER_00 (36:09):
Okay.
Why are we talking percentages?
What's happening right now?
Way too detailed, way toodetailed.

SPEAKER_01 (36:21):
First of all, you should never change that$70,000
to$55,000.
That's just gonna come back andbite you in the ass later.
You should have kept your ARV at$400,000,$70,000.
You should have adjusted thecontract price, you should have
stayed in the pocket with askingquestions.
So you think the the afterrepair value is$400,000,$70,000

(36:43):
re-amp.
So, how'd you come up with yourasking price of$300,000?
I want him to say you buy itfrom me for$300, you put$70,000
into it, you're$370,000 in, youcan sell it for$409, you're
making$40,000 in profit.
I want to hear him say that.
Because then you could say,Well, what about the holding

(37:05):
costs?
Like taxes, the literal thingthat he's about to lose his
house to, Adrian.
I have to account for taxes andutilities and cost of capital,
and then I've got closing costs,and then I want to make profit.

(37:28):
So I think this is why thoseinsulting offers, like, did
anybody talk to you about theseother things?
But again, it's hard because wehad that moment to talk about
why he thought those offers wereinsulting, and we never
revisited that.
And that's such a massive missedopportunity on this call.

(37:49):
Because we want to understandwhy he thought that was
insulting.
I want to hear him say, becauseif you buy my house for 225 and
you put 70 into it, you can sellit for 409, you're walking away
with$115,000 in profit.
I want to hear him say thatbecause now we know how to

(38:10):
educate him.
But what's happening right nowwith like the 5% and the 7%, and
that's 12%.
You're giving him points ofargument.
Just holding costs, closingcosts, that's realtor
commissions, and when I buy fromyou, the title fees and whatnot,
and then I want to make profit.

(38:31):
Stop using percentages.
We don't want to do that.

SPEAKER_05 (38:48):
You said 7,000?

SPEAKER_04 (38:50):
Your holding cost, yeah.

SPEAKER_05 (38:52):
Oh, yeah.
Uh yeah, so my closing cost, myholding cost, that's around 12%.
So that's around 40,000.
Because that comes that's 12% ofthe resale value.

SPEAKER_01 (39:05):
All we're doing is giving him a point of argument
at this point.
This this you're you're losingthe deal right here.

SPEAKER_04 (39:12):
Oh my god, is that right, Neil?

SPEAKER_05 (39:14):
Yeah, I mean, it's crazy, especially the closing
costs.

SPEAKER_04 (39:17):
You call it holding costs, that's like time you sit
on it, right?

SPEAKER_05 (39:20):
Yeah, the time I sit on it as I'm doing the flip, and
you know, uh and the electricaland all that.
Yeah, yeah, yeah.
And just, you know, every monththat it sits on market, I'm
having to peek repay all thatstuff.
So, you know.

SPEAKER_04 (39:33):
Well, any gonna shit.
I mean, if this place was readyto go, it would still admit it.
Like it all spit it off.
My neighbor still is in twodays.

SPEAKER_05 (39:39):
Okay.

SPEAKER_04 (39:40):
So maybe I can it's a good location, and they're
building all around us likecrazy.
So it's only gonna go up.

SPEAKER_05 (39:46):
So maybe I can back out.

SPEAKER_04 (39:48):
It's a pretty quiet neighborhood too, though.
It's sort of the outskirts ofWest Eugene, so okay.

SPEAKER_05 (39:54):
So I'm gonna back out a little bit of that.
So I'm gonna say 405 is what Ican sell it for.
We said 55 for the repairs.
I'm gonna take out 35 for myhard cost.
So that puts me at 315 rightnow.

SPEAKER_00 (40:12):
Yeah.

SPEAKER_05 (40:13):
Okay, and then that is if everything goes right.

SPEAKER_01 (40:20):
This is way too detailed.
Well, I I don't know why whywe're doing this.
This is way too detailed, andit's it's giving the seller so
many points of argument anddisagreement.
We're we're losing this.
Is where the deal got lost,right here, Adrian.

(40:40):
This and not asking the questionabout the other offers being
insulting.

SPEAKER_05 (40:46):
And me not even building in any kind of profit.

SPEAKER_04 (40:50):
Now, the other thing you have to consider is there's
zone now, they changed thezoning here, so this is zoned
for two tiny homes, too.
It has a pretty good size lotcompared to a lot of the houses
here on Terry Lee.
And it has access to Rooseveltback.
So back here asked this gate,which is really important
because we don't you can't havethe tiny homes fire while you

(41:12):
can chase the fire.
So that's a bonus.
Um, the other thing that's gonnacost you is fences, it needs it
needs fences all the way aroundit.

SPEAKER_03 (41:21):
Okay.

SPEAKER_01 (41:23):
This is why we don't lower our rehab costs.
I that 55,000, that 40,000 was apipe dream.
55,000 ain't admin.
The seller already told you 70,is probably even higher than
that.
Um, and because we we talked somany numbers, and you said I

(41:43):
gotta back in the profit and allthis.
If we're at that point, it needsto be all right, so we agree
that this could be worth 405.
I'm gonna have to put 70 intoit.
I've got to account for holdingcosts and closing costs.
So that's how I'm coming up withI need to be in the low twos.

(42:08):
But that should have beenfollowing the conversation about
why the other offers in the highones and low twos were
insulting.
So then you can be like, I thinkthis is what the other investors
were seeing.
I think this is why their offersare coming in.
How you beat them is throughthat education.
They just said I need it at 185.

(42:32):
You've gone the polar opposite,where now you've reverse
engineered it with not accuratenumbers, okay?
405, 55, all of this, and thenyou got you even lowered your
holding cost because he told youdays on market would be two
days.
Don't know why we would do that.
That's a fixed number.

(42:52):
We never adjust that.
So now you've done that andyou've told him 315.
So every dollar below 315 isyour profit on a bad rehab
number and a lower holding cost.
This is how we manufacturedeals, and we end up having to
terminate, it gets rejected bydispo, or or we have to

(43:13):
renegotiate.

SPEAKER_04 (43:15):
I did that last time.
So in the ports face B.
So that tells me that it's it'sthe other party's liability.
So what I did when I did thefences right after I bought it,
I talked to each homeowner and Idid the labor and they did the
material.
That's how we worked it out.

SPEAKER_03 (43:30):
That's number.

SPEAKER_04 (43:31):
Yeah, but I got this stuff at cost because I I grew
up in a lumber yard and I gotconnections in WBMA people.

SPEAKER_05 (43:37):
Nice.

SPEAKER_04 (43:38):
That helps.
Yeah.

SPEAKER_05 (43:40):
Okay.
So I mean, if I'm at 315 rightnow without you know keeping my
lights on and being fair to mybusiness, if I'm putting in 55,
60 for a rehab, I want to makesure that it's worth my time.

SPEAKER_04 (43:56):
Absolutely.
And then you might have a guythat needs 60 days to move out
to get.
out of your way.

SPEAKER_05 (44:01):
Yeah.

SPEAKER_04 (44:01):
So I mean depending on what happens with with me
being able to find a place to gobecause I I can't live in my
trick.

SPEAKER_05 (44:07):
Yeah.
So with all that being baked in,you know, the numbers kind of
put me around 235, 240.

SPEAKER_04 (44:17):
Yeah, if you want to make a killing, yeah.
I mean that's just that's noteven a killing.

SPEAKER_05 (44:23):
That's just making sure that you know I'm I cover
myself if that makes sense.

SPEAKER_01 (44:30):
Like that's not that's what you get for telling
him that your break even numberwas 315 because it ain't 315.
And so now he's gonna combatyou.
You gave him that point of arrowyeah if you want to make a
killing you're gonna go make 70grand 65 grand yeah it's gonna

(44:54):
be really hard to overcomebecause of the way that you
explained it to him.

SPEAKER_05 (44:58):
Not a home run deal by any means that's just a
barely penciling deal here's thesituation.

SPEAKER_01 (45:06):
When you tell a seller who can't pay their
$20,000$26,000 he can't pay his$1,100 uh traffic ticket okay
he's about to lose his home thathe's owned for 18 years due to
$2000 in in property taxes.
When you tell somebody like thatthat hey$50$60$70 in profit

(45:30):
because of the way that youexplained it is not a home run
deal it's gonna be hard for themto kind of swallow that.
And like it makes sense to usbecause we we get that there's
risk associated with this butnow you're going to have to kind
of argue with the seller aboutall the things that could go
wrong but you already made it sotight on the numbers and there

(45:57):
was just a an easier more vagueway to have this conversation
and just uh the lost point ofleverage there with not tight
like you now are just along thelines of the other offers.
You just offered more becauseyou manufactured the numbers to
offer more and and you shouldhave never offered more you you

(46:20):
should have hit that head on andto be honest with you probably
offered less and you probablycould have gotten it not on
maybe every single one of thesetypes of conversations but
there's going to be a percentageof them that you will contract
because you're going to be theonly person that's willing to
have that conversation thateducational conversation and

(46:41):
talking about these numbers butnot in such great detail to
where you're you're handing overlike percentages and dollar
amounts and also tellingsomebody that hey me making 60
plus thousand dollars profit offof your house is not a home run
deal okay well all right that'sthat's where you're at that's

(47:02):
where you're at so that's goodinformation I got an offer on
the table for 285 right now so Iam I mean you're asking 300 you
got 285 on the table why haven'tyou taken that well I just want
to see I just I just just rightnow started getting uh uh offers

(47:23):
again so I mean not two yearsago I was at 412 if I walked out
the door and and and lefteverything sitting here I would
have absolutely hammered thatbecause I feel like that was a
lie he told you earlier that heuh had an offer at 185 and 225

(47:45):
that's when you had the profitcalculator at 225 and you
decided to jump it up to 240 Ithink that 285 offer is bullshit
and I'm calling him on it what285 you told me it was 185 i i
would have been all over that Igot an offer from 412 and I I

(48:05):
don't know why I didn't take itas in the middle of July I
should have walked out thegoddamn door and went to the
airport.

SPEAKER_04 (48:10):
Yeah not everything here I really should have that
was a great offer but there's aton of stuff here too like tools
and I mean I got a full blownshop here.
So that offer of 280 is thatlike in writing and fish
official no it is not but he hewas uh really shocked when I
hung up the phone and told himno I'm don't I'm not taking any

(48:30):
officers under 300 right now soI mean you can offer it but I'll
write it in my book if I don't Imean just based on what you told
me house can sell for 405 youneed 70 and work how is an
investor gonna buy it for 300investor yeah an investor really
can't probably that's theproblem you know and if I had

(48:51):
the money if I could get thisreverse mortgage and have the
money but I hate I just hate theterms on those that would give
me the money to finish the houseand pay off these taxes and get
them off my back um you know andI wouldn't have a payment still
but when I die it's not gonna dono favors for my kids.
Yeah and that kind of sucksbecause we've been here a long
time yeah so so what do you do?

(49:17):
I'm still trying to make up mymind what I'm gonna do.
Yeah so I mean too much going onall the time.

SPEAKER_05 (49:28):
And you tell me if I'm wrong but it sounds like
you're really looking for a cashoffer to just kind of you know
take it off your plate let youmove on so you're not having to
do a ton of repairs andeverything.

SPEAKER_01 (49:41):
Because I mean the way you described it I don't
think you can list it on themarket can you um no no I gotta
get this permit thing lifted andall that you know it's uh
there's some things that gottabe done but uh I mean I could do
it for way less than 70 000myself okay I mean that was
what's gonna eat you up that'swhat's gonna kill you is the
contractor's sir you can't do itfor less than$70,000 because you

(50:05):
can't even pay your twentythousand dollars in taxes so I
mean like this is where we haveto kind of like bring the seller
back to reality and be like whatare we talking about right now I
mean sure anybody could do thework for less than$70,000
because if you're gonna livethere you don't care about
achieving maximum value.

SPEAKER_04 (50:27):
Labor.
Yeah they're gonna hit you theeye on it you know because you
know you're flipping especiallyif you're doing as a as a flip
property because they want theircut about 70 bucks an hour ain't
it for a contractor today I meanit's not cheap by any means
that's for sure yeah yeah yeahso um so I don't know what I'm

(50:48):
gonna do yet I um yeah becauseyou said I mean it's nice to
have my house paid off I don'twant to end up with a$2,000
house payment again.

SPEAKER_00 (50:56):
This is true.

SPEAKER_04 (50:58):
And it you know it's um it's been nice and I'm
comfortable as hell here and I'mjust you know my roots are deep
but at the same time I'm askingmyself do I want to die here do
I want to finish my my lastchapter somewhere else and so
being still though that's a harddecision to make for me.
Yeah I had a partner that wassaying let's go here let's go
there I would be more inclinedto do what they wanted to do and

(51:20):
it would be easier but I'mindecisive I've been stuck and
that's why I'm I'm pushing theclock now I've got to do
something she or get off thepot.

SPEAKER_05 (51:28):
Yeah so um but you're coming in at 235 I think
235 240 in that ballpark.

SPEAKER_03 (51:38):
Okay.

SPEAKER_05 (51:39):
And you know this would be you know I'd close on
your timeline it sounds like yougot some things to get in order
so I'd definitely work with youthere.
Um you could leave what you wantto in the house take the things
you want to take with you so Imean I could handle the bulk of
the cleanup especially if you'regoing somewhere a little smaller

(52:00):
not have to worry about that.

SPEAKER_04 (52:01):
I gotta take a truck in the dump's what six miles
from here I really don't want tostick anybody with a mess.

SPEAKER_05 (52:06):
I mean it's you wouldn't just be a shit you
wouldn't believe some of thehouses some of the states of
houses that I've bought in thepast so you're definitely not
going to bother me any cool shittoo though.
Yeah I mean way less cool shitthan just actual shit.
Yeah yeah I don't know I was ahouse mover we would go and move

(52:28):
these buildings and they theystill have the college kids shit
in them yeah yeah so I mean yeahI mean it's it's I guess it
makes it that much more specialwhen you do find something
worthwhile as opposed to yeah 40years of newspapers with cat
piss all over them.
Yeah I know what I mean if thosehouses when you lift them up to

(52:48):
move them I'll tell you whatit's yeah it's pretty nasty
other so little yeah like thatdry dirt anyhow um okay well uh
I don't know what to say I'llconsider it but I've got someone

(53:08):
who's offering me a littlehigher than that right now so I
mean I mean if you really dohave an offer for 285 and that's
a legitimate offer and they'regonna hold I would hold their
feet to the fire and say send mea contract send me your terms
and let me see if your offer islegitimate or if they're just
blowing smoke up your ass.

SPEAKER_04 (53:28):
Right how do I go about doing that?

SPEAKER_05 (53:30):
I mean I'd call them and say hey 285 let's do it and
see what how they react like ifit's a real buyer then they'll
send you a contract and stillmove they'll try and move
forward with it.
I would say at that number makesure that you're clear with the
terms like make sure they're notgoing to try and list it make
sure they're gonna close on yourtimeline make sure you know it's

(53:54):
a pretty solid deal um and thenI mean if obviously you don't
know me for Adam if they do endup sending you a contract and
you want me to take a look at itjust to see if there's anything
I see from an from an investorstandpoint that would give me a
red flag I'd be happy to dothat.
But again you don't know me sowho am I?

SPEAKER_01 (54:16):
That means a lot to me I appreciate that is one of
your strongest moments so far inthe call right there
unfortunately I know I've saidthis numerous times I it's about
20 minutes too late.
I really wish we would havetalked about the other offers
it's just it's sometimes why Ihate call reviews because I know

(54:40):
everybody wants me to review theentire call but there's always
the moment where I feel like thecall breaks and then it's like
well if we never get to it thenall of this is kind of
irrelevant.
This was your your first uhmoment kind of really kind of
going after the competition herea little bit and hey make sure

(55:03):
that they're legitimate thatthey're a real buyer they send
that over to you what are theterms going to look like make
sure they're not gonna listen onthe MLS this is a really strong
moment and you can see how muchthe seller really appreciated
you for this moment.

SPEAKER_05 (55:17):
Appreciate that very much yeah but I mean just the
way I see it at 285 based onwhat you've told me I think that
would have a hard time gettingit to the clothes table.
Yeah it might and if it if itoperates like win win who
offered me 315 and then uheverybody said run like hell
from that so I probably repolledit but yeah so I mean guaranteed

(55:40):
if they said they could pay me315 no problem and I'd had 90
days to move and and everyone Italked to said no not with win
win they're no good they'regonna add an add on all this
other shit on there and yeah alot of times people tell you
like oh this is I mean it's doyou get those I get like a like
a fake check in the mailprobably every week or so saying

(56:02):
someone's gonna give me at orabove market price for my house
and then when you look into itwell yeah that's their initial
number and then they're gonna doa walkthrough and they're gonna
find X, Y, and Z and they'regonna subtract all that from the
price and a lot of times theprice that you end up with is
you know considerably less thanwhat they got in the door with

(56:24):
Yeah I hate that.

SPEAKER_04 (56:25):
Yeah so oh go ahead I just say that's part of the
game that's the game you play inthat in that line of work or
whatever you're investing isgonna be fun though how many
houses do you own?

SPEAKER_01 (56:40):
I own I feel like we're we're just kind of wasting
time at this point and and we'renot coming to the conclusion.
And now now he's kind ofexploring he's gonna ask you
questions to see if you'relegitimate or not but I I don't
even know if he's reallyconsidering your offer um I I

(57:05):
like the strong moment there acouple minutes ago but the the
call kind of felt like it itwent off the rails when when you
made your offer and he was likeI got another offer at 285 and I
don't know if I'm gonna sell I'mgonna think about it.
I didn't think you kind ofgrabbed the reins there and
really hammered him on SirOctober 14th is coming pretty

(57:29):
quick.
Like we got to start making somemoves here because we've got to
open up title we got to do duediligence like that I would have
really tried to to kind ofbecause there is a timeline
concern right this isn't a hey Iinherited a free and clear
property and we've got all thetime in the world like there is
an actual legitimate timelineconcern here would have liked to

(57:50):
have seen you be a bit moreaggressive uh and right here it
just feels like we're justshooting the shit outright by
myself just my personal home I'mpartners on around three or four
let's see we're up to fourmainly in the KC metro and then
as far as flips I've done me andmy partners have done I couldn't

(58:12):
even count at this point.

SPEAKER_04 (58:14):
Now how is this getting all the way out to
Kansas City that's weird.

SPEAKER_05 (58:18):
So like I said you entered um you entered into my
website okay or no sorry yeah Ihad it I had an ad on Facebook
that you answered is how I gotyour information.
Interesting that you're inKansas City and I'm in Oregon
but yeah you can yeah I mean wecan flip you know it's to the
point now with technology andstuff.

(58:40):
I've got a really good partnerout in Oregon that I work with
on a lot of my deals out there.
It's just about you know findingthe right connections finding
the right people and then justkind of zeroing in on areas you
like it's cool.

SPEAKER_04 (58:53):
Yeah I mean it's a good area here yeah this is a
nice town to live in Eugene it'sit is it's expensive but it's
it's really pretty here.

SPEAKER_05 (59:01):
Yeah no Oregon is crazy.

SPEAKER_04 (59:03):
Yeah you're like 45 minutes from the coast right
here and you're two hours fromthe desert it's just a good
spot.

SPEAKER_00 (59:09):
Yeah that's no that'd be cool.

SPEAKER_04 (59:12):
Yeah it is cool it's been a good place to to live for
sure I've been here since 72 umbeen in Oregon for a minute are
you familiar with cottage grove?

SPEAKER_01 (59:24):
I'm not yeah it's about 30 miles south of here all
right I'm looking on the mapright now yeah that's that's a
neat little town that's where Igrew up okay they got a quarter
mile clay oval that's like thefastest quarter mile clay track
on the west coast spring carsand all that the circuit runs
through there that's a big dealfor that town then they have uh

(59:45):
it's the cover bridge capital ofAmerica there's cover bridges
all around the whole area whichare authentic old old railroad
bridges that they're not in useanymore but they made you know
historic monuments oh reallyjump off them and swim and have
a day there you know picnic atthe bridge kind of a big deal
down there in Cottage Grove it'sa neat little town yeah for sure

(01:00:10):
there's the bohemian mines andstuff for like 45 minutes out of
town we're just talking at thispoint we're just talking oh what
is what is happening this isthis is crazy Adrian you just
let this guy kind of I don'tknow if you thought that there
was gonna be an opportunity foryou to ship this back or you

(01:00:30):
didn't know how to kind of wrapit up but we're we're just
literally but we're we'reentering we are we are firmly in
the friend zone go up there andgo gold pan and stuff there's a
lot of gold up there still it'spretty neat yeah that's cool
especially when gold's a fivegrand right now it's it's going
crazy to be buying gold nothouses I mean I wish that's what

(01:00:55):
I'm gonna do if I sell this I'llbuy gold I'll tell you what who
knows what Trump's gonna do tous oh I don't even want to get
started that's a whole notherthing that I don't have time for
I hear you okay well Sean here'swhat I'm gonna do just so you
can see my exact terms and whatI'm offering I'm gonna shoot you

(01:01:16):
that offer for 240 so that wayyou can just see exactly you
know that way you have a firmoffer in your hand to compare
against others.

SPEAKER_05 (01:01:26):
Um like I said if I were you I'd call that 285 guy
and hold his feet to the fireand see if they're actually
willing to commit to those termsand if not maybe we can talk.

SPEAKER_04 (01:01:39):
Yep you'll be second in line for sure if that's if if
that guy's real okay so yeah forsure.

SPEAKER_05 (01:01:45):
I've got your email here is shall work.
Okay.
Alright I'll get the shot overto you in the next five six
minutes and um can I call you uhnext week sometime?

SPEAKER_04 (01:01:58):
Yeah please do.

SPEAKER_05 (01:02:00):
What's a good time for me to reach you?

SPEAKER_04 (01:02:01):
Uh if you send me a text and then and then let me
text you back and tell you whatworks because I'm just all over
the place all the time.

SPEAKER_05 (01:02:08):
Okay.

SPEAKER_04 (01:02:09):
Yep I'll just send you a follow tires but sometimes
I'm you know I'm just runningerrands or whatever in the car.
So it's best just to text me andthen I'll get right back to you.

SPEAKER_05 (01:02:18):
Okay sounds good.
I'll shoot you a text with alink to that um contract and
seeing what a good time toconnect is.

SPEAKER_04 (01:02:26):
Appreciate your time and thank you for your offer.

SPEAKER_01 (01:02:27):
All right sounds good we'll talk soon oh man I
did not like how that ended wenever asked them what is going
to be your decision makingprocess what is the timeline in
which you're gonna make adecision are you gonna wait
until you know September are yougonna wait until October 1st

(01:02:49):
like how are you making theseconvers or decisions um we never
went back to how much net did heneed in his pocket we never
understood why the other offerswere insulting we never really
even explored the 285 and whothat was and how did that offer

(01:03:12):
come to be and why didn't hetell us that when he told us 185
and 225 he never told us aboutthis 285 offer uh what was so
important about an additional$15,000 when he's asking 300 and
he received 285 why why was thatso important to him and then
there at the end we're just likehey I'm gonna write you up a

(01:03:33):
contract I'm gonna send it overto you so you can see my terms
do you want me to call you nextweek and when all this did was
is put you in a position offollow-up and so if you're
navigating conversations likethis on a regular basis you're
just going to have a ton of workto do all the time following up

(01:03:54):
with people that essentiallytold you no but you didn't know
why and you didn't know whenthey were going to make that
decision.
So didn't like that overallAdrian I thought there were some
really strong moments in thecall I still think that the the
biggest moments for you are stopagreeing silence question stop

(01:04:17):
with uh gotcha yeah yeah yeah ohyeah that's cool I understand no
silence open ended questionthat's one thing two you got to
go back to moments you got todouble down on the questions you
got to really explore um Ireally thought that you you
tried to manufacture this dealum and I know that you have

(01:04:42):
tried to overcome some likeissues with comping and
underwriting but right here youtried to allow you finagling
numbers on on the profitcalculator instead of diving
into questions and getting theseller to explain to you what
they need to accomplish and soit to me it felt like you feared

(01:05:06):
the no so instead of gettingtold no we went into the maybe
so you can have more work to doyou're gonna write a contract
you're gonna follow up next weekI would have rather have seen
you really dive in to whathappened when when are you going
to make the decision?
Why haven't you accepted theseother offers?

(01:05:26):
What's important to you?
Explain and educate why we needthis in the low twos high 100s
240 is not going to work I don'tlike to offer felt like the
numbers are off I felt like youeven disagreed with the number
the the seller's numbers to makethem worse in your favor to make
them better for him uh just wekind of gave up on on the

(01:05:52):
education process the key toeducating a seller is is
repeating yourself getting theseller to truly understand where
you're coming from too detailedon holding costs and percentages
and all of that.
It should have been about ARV,rehab, the price because we need
profit holding costs, closingcost.

(01:06:14):
That's it too detailed on theminutiae there inside of the
numbers uh and and because ofthat you you kind of deleveraged
your position with saying I'mfirm I'm a hard cost at 315 just
was really hard right there.
Man Adrian you are you're reallyclose but there's some things

(01:06:37):
here that I I fear have beenissues that you've been battling
for a while and you're kind ofdefaulting to them over and over
again.
So hopefully this call reviewhelps you um I appreciate you
giving me this to put out hereon YouTube for everyone that's
watched this far hell of a callreview hour and seven minutes

(01:06:59):
show Adrian some love in thecomments show me some love in
the comments by giving me a likewe'll see you guys next time

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