Unveiling the Mysteries of Real Estate Contracts: Tips, Traps, and Insights | RETalkPodcast | Episode 10 - Real Estate Talk Podcast with Jesus Castanon | RETalkPodcast

Episode Transcript
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Speaker 1 (00:02):
All right, guys, this is a Susca Tanyong from the
real estate podcast.
I can't get used to saying thatshit.
Real talk podcast.
Real real real estate talkpodcast.
The logo made a lot of sensewhen I came up with it, like I
was like, yeah, it looks good,so I'll put the estate and I
won't really write it.
I'll write it in so I could youknow.
But saying it just sucks alittle bit.
But so, yeah, I'm JesusCastanon and or got Tanyong, I

(00:24):
want to say it in Spanish andyou are sir Josh Cadillac.
All right, all right, great.
So look, today.
The thing is, guys, if thisseems a little bit weird right
now, it's because we wentthrough this already once and
then we realized we weren'trecording, so I'm going to have
to do it the same shit overagain right now.
So, but all right, long storyshort, we are going to give a

(00:45):
class today on contracts.
Not just go line by line andread the contract for it.
No, we're going to kind ofsummarize the paragraphs in it.
We're going to give you mostcommon mistakes, you know, and
why would you even listen to?
You know, a couple of lads likeus on contracts, right?
Well, first and foremost, Ihave been doing this right here,

(01:10):
this contract thing, andnegotiating, and not only that,
but getting myself in the messesthat my realtors create, sure,
okay.
So I call myself the complaintdepartment.
So when this shit hits the fan,hey, everybody's fighting
attorneys.
Why are you?
Keep on looking at the camera,you're making me nervous.
Are we recording?
Sure, all right.
So you know, anytime the worldis falling apart, everybody's

(01:35):
fighting attorneys.
Or you know, there's somethingforgotten on the contract,
deposits are at risk andeverything like that is usually
when I step in.
So what that does is man.
It creates like a fifth sense.
You know, per se, that you justunderstand this and you
understand the mechanics of it.
You know there's been a lot ofcases where, for example, I
don't know paragraph six, youknow, is the one causing the

(01:56):
problem, or maybe it's another,maybe it's an addendum that's
missing, maybe it's, you know,you forgot to put the washer and
dryer, I don't know, thingsthat we're going to go over
today, right.
So you know, between kind oflike on myself, we have
thousands of transactions, butthe cool thing is that kind of
like an actual instructor.
So you know he has the streetcred because he's been out there
and he's doing the deals andhe's very successful in real

(02:17):
estate.
But he's actually not only acertified I guess national
instructor for the NationalAssociation.
A realtors travels the countryteaching classes, but he's also
has a real estate courseapproved.
Tell us a little bit about thatcourse there.

Speaker 2 (02:32):
Yeah Well, actually, before I do that, why don't you
tell us about the gentleman,because I thought that was
really interesting.
The gentleman, that whose classyou went to, that still to this
day is on.

Speaker 1 (02:40):
And then I'll take that after you.
That's right.
I mentioned in the previousthree minutes that we didn't
record.
So, yeah, the you know, it'sone of these things that I have
a horrible memory.
I don't know if it'sself-inducer, it was a birth
defect or anything, but I have ahorrible memory.
So it's.
I'm not one of those guys like,oh, I remember one, because I
don't remember Right, so there'sno remember ones.
But when I first started inthis business, I went to a

(03:02):
seminar and it changed the way Idid business, so much so that I
actually remember the guy'sname.
The guy's Neil Littman, allright, still around.
I actually had an attorneyrepresent me in a in a in a real
estate related situation there,and and one of his partners was
, was was Neil Littman and I waslike, oh man, that guy's still

(03:23):
around.
You know, actually I forgot, Iwanted, I wanted to meet him and
tell him that.

Speaker 2 (03:26):
You could take him a coffee man.
I should, I should, I should, Ishould.

Speaker 1 (03:29):
I would make a big deal and say but I, you know I
really should, because it reallydid.
I remembered the day, Iremembered the way it changed
everything.
So I'm hoping that we're todaydoing what we're doing today.
We're kind of like the NeilLittmans of of, you know, of the
real estate contract for youguys.
So we're going to go over it,you know, in in two perspectives
, really three perspectivesAgain.

(03:49):
You're, you have the street cred, like I mentioned earlier.
You know I'm looking at it likein the hardcore emergency
situations negotiating forrealtors.
You know I train almost all myrealtors.
I get brand new.
So we got to train them on thecontract.
And then, you know they're alittle bit more prone to I
wouldn't say mistakes.
But you know things happen,little minor things happen.
So you got to keep on top ofthe stuff.

(04:10):
So we're a lot more alert to it.
You know.
You know you're, you knowyou're an actual instructor that
understands.
You know how to go line by lineon stuff.
So it's going to be, you know Ihope it's going to be something
really cool for you guys to to.
You know it'll change the wayyou do contracts, so sure.

Speaker 2 (04:25):
No, I think that's important because, as I said the
first time around, unlessyou're going to commit yourself
to do rents for the entirety ofyour career, you are going to
have to go through this document, whether it's this contract or
one of the other form contractsthat exist, you're going to have
to have this contract be a bigpart of your business.
So most people spend quite a bitof their time early on in their

(04:46):
business being very muchintimidated by this.
It's the reason why I, whileI've been teaching a three hour
course for for quite a while onthis, I wrote my own four hour
course that just got approved.
Actually, today I showed youthe message that we not only
look at it from a standpoint oflike, let's go line by line, as
it turns out to take, and do itline by line.
With a room full of realtors,it takes about three hours just

(05:06):
to answer all their questionsand get through it.
I would figure it would be alot more than three, but I think
it's a great figure to be a lotmore than three, but yeah, you
go fast.
Yeah, you would have to, but I,mine is a four hour because I
want to spend another hour onkind of that idea of, okay, now
I understand what it does, buthow do I work with it.
Because there's a differencebetween you know it is a tool

(05:27):
and me showing you, hey, this iswhat this tool looks like when
it's, when it's being operatedproperly.
It's like me explaining to youmaybe, how, like, a drill works
and then watching someone that'sreally good using it to take
and do something.
Now you go from having just anidea of what it does to having a
good picture in your mind,that's, seeing how it works.
Yeah, and there is thatdifference between just knowing
how it works and seeing it usedwell, right, and so I think that

(05:51):
a lot of times, the differencebetween agents that are new and
agents that have been in thebusiness and been successful is
that they know how to make thisnot just work but how to make it
work for them.

Speaker 1 (06:00):
Absolutely.
You know from the way we we wedid a podcast earlier.
That's really.
You know getting offersaccepted.
But in a large part of gettingoffer accepted is to fill out
the contract Right.
I had one of my realtors justtell me it was a today or
yesterday.
She's like man.
I had like five offers, by theway, the market's still hot
COVID-19, covid-20.
I don't give a shit, it's busyright now.
She's telling me she'scompeting with like five or six

(06:21):
different offers.
You know the way she presentsspecifically.
The realtor called her and saidlisten, my seller's an attorney
saw your offer compared toeverybody else's and the way you
presented it and you know what.
We just had to go with yoursand there was better, there was
better offers.
But they felt, again, being anattorney, he just felt this
person has their shit togetherso well.

(06:41):
Everything is so buttoned upthat I'm going to go with this
guy and, by the way, that isexactly the way I recommend my
sellers.
When I have a seller and we havemultiple offers, I am going and
I am going to see how organizedthis contract is set up.
Are they missing stuff?
Are they missing dates?
Are they missing sections onthe contract?
How is it submitted?
Because that's the person I'mgoing to be married to for the

(07:01):
next 60 days, or 45 days, or 30days.
So I want to know that thatperson there is on the same page
than I am.
I don't want to have to begiving a class to the person, I
don't want to be teaching them,you know.
Hey, fill this out Now.
Will I do that sometimes?
Will I do that when I have to?
Will I do that when I reallylike the person Absolutely?
But, man, if we could just beon the same page from the
beginning.
And one of those things thatNeil Lippman says hey, always go

(07:24):
as is.
There's no reason why.
And the way we do things here,it's everything's as is, with
the right to inspect, right.
So it's a more comprehensive.
Hey, I'm going to put in anoffer it's as is.
You got a certain amount ofdays to inspect.
Within those certain days, youwant the property or you don't
want the property, that's it.
But hey, after you pass that,it's as is, and that's a real

(07:45):
comprehensive way to go with it.
You know.

Speaker 2 (07:47):
I think what you said there is actually really good.
We're talking about it being amarriage because it's really
like an arranged marriage.
I don't know if anybody's everwatched something from like
medieval times where, like aking is trying to get married
and he asked for them to likesend a picture or something like
that because he wants tomitigate his risk.
Because, like, when you get anoffer in, you know you're going
to be stuck with this person andso whatever you can do to let

(08:08):
them know, hey, look, thisarranged marriage is probably
going to work out.
If you can write this becauseI've gotten contracts sent to me
and just look at the contract,I'm like the agent that sent
this is a jerk.
Well, this is not.

Speaker 1 (08:20):
this is not a person I want to be with, and in this
particular case of this realtorthat you know just got this
offer accepted a couple of daysago.
There was also instructions onthe MLS to include certain
attachments.
So it's not only that they didshe fill out the contract
correctly, but she followedinstructions correctly, added
things correctly, had a desktopunderwriter approval submitted,

(08:44):
had everything, and when shesubmitted this, that other side
was so impressed that it was hey, slam dunk, I want to go with
this person.
Guys, this is just stuff thathappened.
It might have even been today,but again back to my memory,
right, it was today or yesterday, but this is stuff that happens
to me on a regular basis.
Realtors, you know our realtorshere and again.
I promise myself I'm nevergoing to make this podcast a

(09:06):
commercial on the company.
All right, but it is what it is.
You know we, we got our shittogether here.
So, wherever you are, if youdon't have your shit together,
go somewhere where you have yourshit together, where the
company is going to back youguys up and make sure that those
contracts are filled outcorrectly.
Not only is it going to saveyou, is it going to get you
offers accepted, but it's goingto save you a ton of heartache,

(09:27):
a ton of issues with you know,losing clients, deposit Guys, it
is, it is.
I can't remember the last timewe lost a client's deposit.
And again, you know, we have alot of transactions and
everything, but we keep such aclear like it's so close
connection with the realtors andmaking sure that they don't
screw this up that that's whyI'm constantly busy with you
know, avoiding issues in reality.
Right.

Speaker 2 (09:47):
And I think the goal with this is not has never
really been to just sit thereand say, hey, come work here.
It's to give agents out therewho maybe don't know what it
looks like to see it done right.
An example of hey, when, when,when the help is there on the
top, this is what it looks like,so that agents can go out there
themselves and shop.
They can go out there and lookfor places to work and say, hey,
look, this is how we do it hereand this has been successful.

(10:08):
Look for this.
Yeah, this is what you shouldexpect, because agents don't
know.
All they know is what they seein HGTV.

Speaker 1 (10:13):
Look, and there's one saying that that that really
resonates with with the way the,the, the contracts.
You know your relationship withthe contracts right, so you
guys could really understand it.
You could spend a year fillingout the contract I mean half
complete and get away with it,sure.
But guys, here's this, here'sthe saying right here.

(10:35):
Is there a sound effect forthis thing?
Something special coming in, orwhat?
Everything is fine Ifeverything is fine, no, the
second, the shit hits the fan.
The second the seller doesn'twant to close, or buyer doesn't
want to close, and everybodystarts staring at that contract.
It goes back to another saying,the Warren Buffett, saying uh,

(10:58):
when the tide comes in, you findout who's who's swimming naked,
or something like that.
The tide goes out, yeah.
When the tide goes out, you findout that, yeah, when the tide
goes out, you find out who'sswimming naked, right?
So when the tide goes out withthe contracts, when, when, all
of a sudden, oh, one of thesides does not want to comply,
everybody is going to be staringat your contract.

(11:20):
Okay, now, do you want to bethere naked or do you want to be
there with a swimsuit?
Right?
That's really what a contractis, everything.
So you could literally spendfive years in this business
filling out the contract likeshit and no problem, right?
Until that, one day, it onlytakes once, just once.
And that's the thing.
You know.
Listen, I've been very honestwith with our, with our

(11:43):
listeners.
Let's say you know that, um,I've run out of wrong ways to do
this business.
So it's not like I just showedup here and, oh, my God, you
know, I figured it out from dayone.
No, dude, I've made everymistake.
I could go paragraph byparagraph and tell you each
mistake I've made on each one ofthose paragraphs.
So you know, but it was manyyears ago, and, um, and then
after that, you're going throughall the mistakes that your
realtors make and fixing it andthe whole situation, and you

(12:04):
know, so it's uh, the best wayto do things from the beginning
is there's no, by the way,there's no better feeling than
all right, everybody's at warand your contract is perfect.
Oh yeah, there's nothing theycan get Like, sorry, come get me
, absolutely.
Come, get me Great feeling.
How awesome do you look infront of your clients and in

(12:25):
front of your realtors in ourcase that you know the shit's
hitting the fan and all of asudden, everybody's trying to
attack it and our contract isperfect, because they went
through our classes and theywent through our training and
they went through our filteringprocess before they submit an
offer.
So, believe me, guys, you got toknow this.
You know, if you're still stuckin quarantine, no better time
to sit down there and read thiscontract with it, make friends

(12:46):
with it, become one.
What's that?
Uh, that, bruce Lee, you know,uh, come like water or something
like that, I don't know, I'mfucking up.
All the same, stay with.

Speaker 2 (12:53):
Well, I'll, I will say that it's uh, it's, it's
super important to get this andget it right, and I mean, that's
really what this boils down to.
I will.
I will say this in all honestythere's that moment when the
call comes in and somebody givesyou a problem about your
contract, where your stomachsinks and you're like oh, my God

(13:14):
did I do it and it's like sixyears ago and you're going
through the file and you pull itout and you see that everything
is the way that it's supposedto be.

Speaker 1 (13:20):
Yes, no better feeling.

Speaker 2 (13:22):
No, the best feeling honestly is for me is when I
take and I scan it back in and Isend it to the other side and
say please note page 11,subsection a, letter G what you
marked an initial might as well,just taking a picture of a
middle finger and scan it tothem.
I mean it really is, or scanyour ass or something.
I really feel like that'swhat's going on there and it

(13:43):
feels very cathartic.

Speaker 1 (13:44):
So yeah, I remember early, early in uh, in my uh
career, I mean, I had a majorissue with somebody and
everything like that.
I remember they sent me somethreatening letter and I call my
attorney.
I'm like, let me ask you aquestion, man, and I you know
this might sound a little bitweird, but what have I?
Wiped my ass with this documentand mailed it back, like what

(14:06):
are we looking at here?

Speaker 2 (14:07):
Well, dude, yeah.

Speaker 1 (14:08):
Well it was, it was uh, it was a federal, uh, it was
something federal andeverything like that.
I'm like, yeah, but what, whatis it?
Okay, so federal?
So then what, what?

Speaker 2 (14:16):
what's jail time Right?
What are we?
What are we looking at here?

Speaker 1 (14:19):
How, how bad do I want to wipe my ass with this
letter and send it back to thisguy, you know what I mean.

Speaker 2 (14:24):
So well, actually, I found there is a solution for
those out there that really wantto take a mess with someone.
There is a company that willsend them all different types of
animal poo.

Speaker 1 (14:32):
Oh yeah, yeah, yeah, gorilla poo, yeah, elephant poo,
and that's legal.

Speaker 2 (14:35):
Yeah, yeah, yeah, for some reason, that was, and
supposedly it's completelydiscreet.
But yeah, I know, use thatinformation at your own risk,
All right.

Speaker 1 (14:43):
So let's get to the fun part here, Cadillac, Um,
we're we're going to actuallytry to make a contract class Fun
.
Is that what we're trying to dohere?

Speaker 2 (14:50):
Well, I think a lot of sound effects are going to be
needed for this.
We'll try to share our pain andsuffering and places where
we've screwed this up beforemaybe so hopefully you don't
have to all right.

Speaker 1 (14:59):
So paragraph one, which is basically parties,
buyer and seller, propertydescription, Well, I mean the
big one with propertydescription.

Speaker 2 (15:08):
That that I've heard and this is something recently
is that you need to make surethe entire the script legal
description is there, yeah, andso if it's not, you need to
actually add an addendum, and Ihadn't been doing that for a
long time, but you know that's,that's a big deal.
Yeah, it needs to be there.

Speaker 1 (15:23):
It needs to be there because the way I best heard
describe the, the, the legaldescription is the fingerprints.
Yeah, right, so the address iskind of like a picture of the
person, maybe from far away orwhatever.
But there's another 127southwest 150th St In a bunch of
different places in in, in the,in the state and and uh, yeah,

(15:45):
you have zip codes andeverything but legal description
is literally the fingerprintsof the property.
There's no way to you know inany way.
Mistake it with any other theDNA.

Speaker 2 (15:53):
Yeah, it's a DNA Right.
You can borrow your right.
Dna, so and so it's just takingone more place.
You know what you don't want isthe person that's on the other
side to be an attorney that'sgot nothing better to do and is
deciding to try to take and pickapart this stuff.
So if you want to just take andyou know the ultimate fig leaf,
if it doesn't fit in there, youjust take an attach, an

(16:14):
addendum, and say in that area,right there, see addendum, and
you put that information there.

Speaker 1 (16:19):
Yeah.
So, by the way, the foreverybody who wants to sit, I
mean, the right way to do itwould be to sit at home and kind
of go over it.
This is the aziz residentialcontract for sale and purchase,
also known as the far bar, as ohyeah, known as a far bar.
Is this the most recent version, revised on 6 19,.
Do you remember what was fivepages?

(16:40):
Yeah, I do remember when it wasfive pages.
What are we right now?

Speaker 2 (16:43):
Yeah, one, two, twelve, yeah it says at the
bottom there yeah, one of 12.
There we go, five pages, andthe first three pages are the
only pages you had to fill outon the old one.
And you could actually youcould actually get on it.
I probably shouldn't say this.
You could get a, sell it a sign, page three, and then just take
and put it the same page threeand multiple offers for them,
because you had sellers thatwere out of the country.
I'm not supposed to say that.

Speaker 1 (17:04):
Yeah, I know, we never did that, I know.

Speaker 2 (17:06):
I had emails authorizing it.
Yeah, I mean, that was the wild.
Look at florida.
It's south florida, man, it'sthe wild west.
Yeah, that's well, and therewas time.

Speaker 1 (17:13):
There was times where I mean there was, there was
times where you, you, I don't, Idon't think there was a way.
I'm not admitting to me doingthis, but I'm saying, but it,
hypothetically speaking, if Iwere to have done that, there
was a time that you almost hadto do it because, uh, there was
20 offers on a property, oneverything, on everything 20
offers.
That was the wild, wild west2006,.
You know, uh, mortgage fraudwas was.

(17:34):
I mean, we were leading the uhhere in Miami, we were leading
the country and mortgage fraud,you gotta be got something.
You would submit a contract foryou new schoolers here.
So you would submit a contract,you would get an offer accepted
.
You would send it to a countrywide back then, which country
wide is you know they close itdown with.
They should have.
Yeah um, so you would submit the.
If you would submit thecontract today, if you would get

(17:55):
the contract accepted today,you would send it to the
mortgage company, you couldclose it tomorrow.
Yeah, so appraisal was done.
I'll print, I mean huge airquotes there.
Appraisal was done, um, andunderwriting, and everything was
done in overnight and you wouldclose it the next day.
And that was normal 24, 48 hourclosings, 100 percent financing

(18:15):
, no documentation.
So, yeah, you had to get andyou had to get creative to get
anything done because there wasa thousand offers on each
property.
So, but again, don't do thatand I never did it.
Um, so what else?
Uh, uh, okay, so, personalproperty, uh, what's included
and what's excluded?

Speaker 2 (18:32):
correct, so, yeah, if you notice in there, the big
one is washers and dryers.
Yeah, aren't included.
Yeah.

Speaker 1 (18:40):
I can't tell you guys .
Let me tell you how I learnedthis lesson probably through
about 20 000 dollars worth ofwashers and dryers that I had to
pay for the clients because Iforgot to put one.
And all of a sudden I show upto the, to the walkthrough, and
it's not there.
And all right.
I mean I'm 20 years old, aboutto get, you know, a contract, a
closing.
What am I gonna do not pay fora 300 dollar, you know, washer
or dry, or 500 dollars, and missout on a six, seven thousand

(19:04):
dollar commission?
So, yeah, I paid for a lot ofwashers and dryers.
So after a while I learned toput make sure that everything is
included or excluded.

Speaker 2 (19:11):
Yeah, pain, pain is a great educator.
It is even even financial pain.
It definitely reminds us stuff.
Actually, my story of pain andsuffering, near pain and
suffering although, well, youknow how I feel about my
customers I don't, I don'tadvertise.
All of my business comes frompast customers, so I lose a
customer, I take it verypersonally, yeah, and this is
actually one of it's, one of theonly customers I've ever lost.

(19:31):
I was subsection was the littlesection there on e and it's
personal property, and theparticular property was a house
that was a major overimprovement in the area.
So this house is like a milliondollar house somewhere else,
but it's it's like 400 000s, butthe guy is asking in the area
and this is circa 2010 2009.
There's nothing.

(19:51):
There's no offers coming inAnywhere in the world was still
ending.
Yeah, I mean, we were, we werestill, the inventory was still
expanding and there was, therewas no Org's every where.
It was crazy.
I think there was 33, 33 000single family homes available in
dade counties brutal.
So I got this guy in house onthe market and it was.

(20:12):
It was on the market for like325, 340, 000, something like
that.
And we get an offer and it musthave been 340 because we've got
the offer for like 335 andeverything looks good with it.
I, I'm looking at on my phone.
I sent it to the seller and Isaid, hey, take a look at this.
You know I'll come by, we'll dothe paperwork and we'll get it
moving.
I was really excited.
So I get over there and theseller says so you look at the
offer, everything looks okay.

(20:33):
I said yeah, yeah, no, I mean,I looked at on my phone and you
know I had the paperwork but Iwas rushing to get there.
So he said, yeah, I'm notincluding my bedroom set.
I said, what not when this guysays his bedroom said he had
like a 30 000 Bedroom setthere's like fake fabric.

Speaker 1 (20:48):
Yeah, yeah, huge problem.

Speaker 2 (20:50):
When I looked in section e, the agent had
actually typed In a font thatlooked almost identical to the
paragraph that the bedroom setwould be included.
I couldn't believe.
I mean it was like really dirtypool.
And after that, man, before Iever send a contract to anyone I
check every little bit of it,because that is the worst

(21:10):
feeling in the world To haveyour customer catch something
that you was the real estateprofessional room flat out
missed.
So that one still makes mecringe at night.

Speaker 1 (21:17):
Yeah, that font, the font.
The font will get you.
I remember I had a man.
I had a huge war with anotherreal estate company one time.
It was in, it was in one of thecities here and I'm not gonna
get too detailed, but it was himand I became really good
friends after.
It's like really good friendswe.
We loved each other after.
But, man, there was a pointwhere we were at war.
We were at war, we were, wewere in the same community and

(21:41):
we each had a ton of listings.
I had like a hundred andsomething listings.
It was a big community, it waslike almost like a city.
I had, yeah, almost to almost200 listings.
He had around the same.
But he was in there kind ofbeforehand, so he shut down the
association from allowing me toput signage.
So later on I found out all thedirty games that he was playing
and then again you know so.

(22:01):
So there was a time where hewouldn't let me put a sign.
So what I did was I got thesame font phone number, right.
So I got my phone number in thesame exact font that he had his
phone number.
So I went in at night.
I had one of my guys go inthere and stick my phone number
On top of his phone number forthe sign that says homes for

(22:21):
sale and the whole situation Ilove it Right and uh and dude,
it was weeks, weeks.
Why am I not getting any phonecalls?

Speaker 2 (22:28):
Because, the number that it was us Dude.
We ended up becoming family.

Speaker 1 (22:32):
It was war, it was throwing a wind, uh, rocks, um,
uh, there was one night them anduh, we wake up in the morning
and we get there and there waslike a rock with a paper, uh uh
tied onto it.
Um, you know, like, like it waslike um rubber band around
through it, through the window,and it was a whole scary uh note
on what he's gonna do.
It was a whole scary uh note onwhat he's gonna do.

(22:54):
It hurts like that.
Uh, it was bad man.
You know, one day hit the hit.
Um, he calls me and I'm likewhere are you?
You know where are you.
And then, uh, I meet him.
I get in the car and you knowwe were supposed to start
fighting there.
I look at him, he looks at me.
We both start fucking laughing.
Go have a drink and we're likebest friends.
We ended up working together.
It was great.
So there's actually a morerated r story to that.

(23:17):
But uh, yeah, I can't do it inthe park.

Speaker 2 (23:19):
South Florida real estate right there, this is
actually central florida realestate.
Okay, there you go.

Speaker 1 (23:24):
Um, so all right.
So yeah, just includeeverything as far as seller and
buyer this paragraph one justmake sure you have go on the
public record and make sure theseller is the seller.
You know, a lot of times whenyou have the husband and wife
Might, maybe the husband is theonly one that's untitled, but
you should add the seller thewife also buyer.

(23:46):
It's you know, it's you got tobe.
You got to be careful and askyour mortgage company who you
want to add on there.
Who's gonna be on the mortgage.
You could add them later ontitle.

Speaker 2 (23:54):
You can add them on title but in order for them to
be in the closing and on thedocuments at the closing, I
don't have them maybe later onhas to be on the contract or an
identity.
It has to be part of thecontract, whether it's on this
contract or an addendum.
You can do a buyer and have abuyer later.
Be it, can the buyer can be anSo-and-so or an LLC to be named
later.
Yeah, so, bill Smith, or an LLCto be named later, because a
lot of times investors don'tknow if you know, and or assigns

(24:17):
, and all that kind of stuffabsolutely so, but one way or
the other you have to have it inthere.
And if you're going to do thatlater on, we need to talk about
the assignment, because ifyou're gonna have an end or
assigns, a situation when maybemaybe Bill Smith is the investor
and he wants to take theproperty in an LLC, but it is an
own any yet so he hasn't formedthe LLC and so it says, when an
LLC to be named later or and orassigns, there has to be later

(24:40):
on in the contract room made forhim to assign it.
Otherwise you're gonna need anaddendum and you're gonna need
to sell it, a sign off on it forhim to take and do that later
on, yeah.
So I mean, that's justsomething to be aware of.
And I think one thing just tomake sure that we hit it hard is
On D you want to want whiteright washer and dryer.
Sure, if the washer and dryerare staying, yeah, if you expect
them to stay as the buyer'sagent, you need to put them in

(25:01):
there.

Speaker 1 (25:02):
That's right.
So purchase price Ask, grow,okay.
So one thing that I get andagain kind of like here's where
your world, in my world, kind oflike um, are a little bit
different, right.
So what I see on a regular, mymind immediately goes to what I
know realtors that are startingoff in the business Like one of
the biggest confusions, forwhatever reason, it's deposit

(25:25):
versus down payment.
Mm-hmm right deposit versus downpayment.
So you guys got to understandthat a deposit is earnest money
deposit.
It's there to hold the contract.
It's there to secure thecontract, saying alright, if
anything happens, that's thesecurity for the contract
there's.
If you know, that's basicallywhat they go after if you've

(25:46):
reached the contract or anything.
The Down payment is what youuse to give the bank right.
So let's say you're going onjust easy numbers a hundred
thousand dollar property andit's a 90% LTV, which is a 10%
down payment.
So down payment is the whatyou're gonna give the bank.
Bank, I'm gonna give you tenthousand dollars.
You're gonna give me a ninetythousand dollar loan, right, so

(26:07):
that's the down payment.
Now where it gets reallyconfusing to these new realtors
is when you get the deposit andthen you transfer it over and
then it becomes the down payment.
Yep, right, that's where the orpart of the down payment, or
part of the.
That's where their head blowsup, yeah, so that's like smoke
coming out of their ears.
Well, wait, wait a second.
What's the difference?
You know?
So that's the stuff that I seeon a regular basis and I need
everybody to understand that forall you new realtors and it's

(26:29):
again it's a very common thing,it's.
It's the deposit is there tohold the property.
So, hey, uh, seller, I'm gonnaput a ten thousand dollar
deposit On this property for youto to accept my offer for the
next 45 days, right?
So this means that if I screwup in any kind of way, right,
that's your remedy, because atthe end of the day, that's what

(26:51):
lawsuits are for.
It's damages, right, whatdamages?
So it's to cover, really, yourdamages.
So if I'm a seller and I can'tsell for 45 days, and I'm, or 60
days and I've turned down otheroffers, and I still have to pay
mortgage, I still have to payelectricity, I still have to pay
all of these things.
You've slowed my life down fortwo months, right, and I've had
to pay $5,000 and and then maybeI paid the mover and whatever

(27:16):
the case.
That's where I go after yourdeposit, right?
And then that's how I pay mydamages.
If I'm the seller, okay, downpayment is just has something to
do with the bank.
Okay, something to do with thebank.
So the bank is saying, allright, well, yeah, I'll give you
the loan on this house.

Speaker 2 (27:31):
You got to give me 10 of it and I'll give you the
other 90 percent right, and 100it really is your deposit, is
your what you're saying to theseller for the seller to take
you seriously and say, hey, look, if I screw up, this is what
I'm putting at risk becauseyou're taking on a risk going
forward with me.
Here's the risk that I andhere's my mirroring, mirroring

(27:51):
risk You're taking your risk onme saying you're going to accept
this contract and take it offthe market.
I have a mirroring risk becauseI am putting this much money
down, saying I will perform or Irisk this money.
And so, as far as the positivegoes up, the positive is just
simply the, the, the reciprocalof the LTV.
If it's 80 LTV, okay, well,where's the other 20 percent
coming from?
That's your deposit, right?

Speaker 1 (28:13):
LTV again for for your new guys.
Um it loan to value.
Okay, so loan to value if it's.
If you're putting 20 down, yourLTV is 80 percent Okay.
So, um, what else in a?

Speaker 2 (28:24):
hundred thousand dollar house, a bank is going to
lend you 80,000.
80,000 on another 80% LTV,correct, um.
The other one I think that'skind of a big one I like to talk
about is that the financingExpresses a dollar amount or a
percentage.
Um, I always recommend toexpress it as a percentage.

Speaker 1 (28:40):
Yeah, listen, I can't agree more, and that's one of
the things that you know.
Back to this is basically theneil lintman podcast.
I'm I'm gonna have to send itto him.
Um, this is one of the thingsthat I know that changed.
Uh, when I went to a seminar,everything from from from then
on, I didn't use dates anymore,I used days.
So I never put closing date on.
You know, may 15th, for example, I'll put honor before 30 days,

(29:04):
honor before 20 days.
By the way, I figured outwhat's wrong was different with
the lighting.
The shades are open.
Yeah, so I would never put.
My brain works the.
Um, I never put date a date, Iput days and and and there's a
real, real good explanation why.
So let's say, I'm putting in anoffer today, today's, what the?
The fifth six, right?
today is the sixth seventh,seventh, the seventh, all right

(29:27):
so, and I'm gonna put a date ofso this may seventh.
I'm gonna put a date of june7th, but let's say so.
I'm gonna put in an offer.
I'm gonna put june 7th, butlet's say I spent two weeks back
and forth offer counteroffer,alpha counteroffer, we're
fighting over a washer, and twoweeks passed by.
Now, all of a sudden, I got tochange everything again.
But if my whole, everything isbased on percentages, okay, and

(29:51):
the price went up, price wentdown, but everything's based on
percentages, we're fine, it's apercentage of the price, correct
.
And if it's days, so the, the,the way to make the contract.
And again, guys, this, if youknow, this is like this is stuff
that's going to change the wayyou do business.
Right, if you just put days andyou put percentages, the
contract becomes flexible,flexibility, absolutely.

(30:14):
It almost expands and and andand.
What's the what's the oppositeof expanding contracts?
Expands and contracts with thenegotiation, you know so it
moves with it huge tip.
It moves with it.
Huge tip if you guys are usingdates, stop.

Speaker 2 (30:28):
Yeah, well, I mean, the simple answer is this you
know, we put an offer in for 200000 and we say that financing
is going to be 160 000, which isagain 80 loan of value.
Well, the thing is, if I put160 000 and the seller counter
is at 205, that's it.
I'm wrong that 160 000 is nolonger 80 l tv and I've already
committed to it.
Yeah, I've committed my buyerto it in the agreement.
If I have 80 l tv, thatautomatically when that price

(30:51):
changes and we agree to the 205I'm getting.
I'm not.
My contract is committing me toget 80 percent of 205 000.
Yeah, which is exactly where Iwant it to be, because if I
could wind up getting a loan for160 000 but I couldn't get a
loan for whatever 80 percent of100 205 000 is, my customer is
still committed to close If,even if they don't have the
money to make that up, andthat's a problem.

Speaker 1 (31:11):
Yeah, yeah, absolutely so.
Again, it's a huge tip, hugetip.
From now on, you want to makeyour life a million times easier
and do less work and and a lotof contract.
To be flexible, go withpercentages on everything and go
with days on everything.
Don't pick dates.

Speaker 2 (31:26):
Pick dates are dates are too specific and and things
are going to change on youdespite the fact that that a lot
of times the software wants toforce you to put a date in there
, it makes more sense to usedays, absolutely yeah so time
for acceptance.

Speaker 1 (31:39):
Uh, you want to want to include anything else on the
escrow?
Okay, where you hold escrow.
You want to talk about whereyou hold escrow.

Speaker 2 (31:43):
Yeah, I mean I had that happen with me way back
when again in the wild west days.
So we're still in paragraph two,by the way, sir of a million
things going on and you knowoffers coming in left and right.
Um, you want to make sure thatthat date reflects who's
actually holding the escrowmoney.
That's not the title company,right, it could be the title
company.
The title company could be theone holding escrow, but maybe

(32:04):
not.
So I had a deal one time andagain getting a million offers
at the time and the, the buyer,like ghosted on us.
So I went to look and find outwhere the deposit was and the
section of the contract wasblank.
I go through my emails, I haveno emails from them and I can't
get the other agent to answer myphone.
So now I'm calling the brokerand the.

(32:25):
I haven't heard from that guyand you know, oh, I'm sorry, the
broker, I couldn't even get thebroker to get on the phone,
like, what do you do?
How much?
What do you do?
And so you need to make surethat that information is there
and it reflects not who thetitle company is going to be,
they, they reflect who is theperson holding the money.
You know, even even when the,when somebody's having a bet in
a movie, right, they got joe.

(32:46):
Hey, joe's gonna hold the money.
This is where you put joe'sinfo where he lives.
Yeah, right.

Speaker 1 (32:51):
Yeah, yeah, yeah let's gotta go on.
Yeah, absolutely so.
Yeah, that'll that'll, that'llsave a whole lot of issues.
Um, all right, so well, let'sgo.
Paragraph three Offer anacceptance.
So the time that they have toreply, so you're gonna submit an
offer.
So this paragraph three, again,what we're trying to do is kind
of we can't go line by line andwe can't cover every single
Thing will be here for fourhours, right?
So we're trying to likesummarize the little things,

(33:12):
that little tips that will helpyou on each one of these
paragraphs, we are going to givea full Four hour zoom class.
That's what we're planning ondoing in the next couple of
weeks.
We're going to go just realnitty gritty.
We'll probably add richard.
Actually I was texting a secondago, I was trying to try to get
richard on to see speak on acouple of these paragraphs, but
richard the our attorney.
So, um, but, uh, but yeah,we're trying to give tips on

(33:34):
this, on this time foracceptance, if you guys have
somebody that Uh, likes threedifferent properties, right?
So what you're not allowed to dois not, you're not allowed to
put three different offers Onthree different properties,
because the idea is that if youget them accepted, okay then,
what then then then what are yougonna do?
It's, it's, it's.
You shouldn't be in threecontracts at the same time with

(33:56):
the same escrow.
It's just not legal, right?
But there is a little bit of atrick to do it in a way where
it's legal and if the otherperson did it pick it up, that's
their problem, not yours.
Where it's on the time foracceptance.
So if you want to say, let'ssay I wanted to put you know, I
needed to put two offers inbecause, mark, it's hot, this
guy needs to move in, he likesboth of them, he doesn't know

(34:16):
which one to pick and their onlyreal thing to do is say, all
right, well, let's put in anoffer on both and see, see what
comes back?
see what comes back right.
So what you do is you put thetime for acceptance on one of
them, Okay, as today fiveo'clock or tomorrow, or
something that you know.
Guys, nobody looks at this, youknow, and that's where the

(34:38):
difference of knowing thecontract and not knowing the
contract means means somethingyou know.
So if you're on the seller side, you got to pick that type of
bullshit up.
You got to pick it up as atrick.
Nothing better than calling theguy to listen.
What's up with this?
Answering right away stuff youknow, yeah, you know.

Speaker 2 (34:51):
And now all of a sudden.

Speaker 1 (34:52):
Now you know what the hell's going on.
And they're.
They're not pulling the woolover your eyes, right?
So?

Speaker 2 (34:57):
But that's one.
Look, that's one of the goodones actually to take and do To
let the other side know yeah,hey, you just ran into somebody
that knows, that's right.
I like, I say like, which wouldlike I do with an electrician.
I'm a general contractor aswell, right, that's, I do with
an electrician.
And the electrician doesn'tnecessarily know that I know
electrical stuff.
And so he comes in he's like,oh well, yeah, you see the flux
capacitor over there.
It's a little bit off in hisskew and uh.

(35:19):
So I nobody rather than justtaking call them out, I'll ask
him one or two questions thatlet him right that all like, all
of a sudden, you can hear thetoilet flush in the background.
Yeah, you know like, and hisbill just came down to grant
right off the bat.
And so it's.
I'm a big believer in and I andyou're very good at this, at
preserving relationships and dohe in such a way that maybe you

(35:40):
let the other side know hey, I'mnot going to call you out and
embarrass you.
Yeah but I'm going to let youknow that you can't play this
right with me, and I think thisis one of those ones where, hey,
you know what's up with the 15minutes for acceptance here it's
very similar.

Speaker 1 (35:53):
So I had one of my best friends growing up was uh,
jackson, he's actually, heactually passed away but he's,
uh, he's real black.
I'm talking about, like youknow, there's black and there's
real black.
See, uh, leo, he won't say he'sblack, but he's, he's very
light skinned.
This guy was black but he wasCuban, right.
So you know, everywhere it wasfunny, everywhere he would go,
they would, you know, the peoplewould start talking, you know

(36:15):
shit about him, in Spanish,where, where I am, and and then
he All of a sudden he'll.
Because you know there's,there's cuban guys, that'll look
, you know they're black guys,that'll look, you know, like,
they're cuban, like you know.

Speaker 2 (36:23):
But we're on this Chapman for the years.

Speaker 1 (36:25):
Yeah, and he would always catch people talking and
then I had a same, except Icould play basketball.
So another teammate of mine was, uh, was Mike, um, blonde, but
I'm talking about like whitehair, almost light blue eyes, so
he had the same thing going on.
So I grew up with a lot of that.
You know joking, you know a lotof that happening to my friends
.
So so, yeah, it's, it's, uh,this is the same same thing here

(36:47):
, man, you know.
So you, you want to know.
And yeah, if somebody tries topull something on you, you want
to let them know.
Hey, man, what's up?
Like you just said, right now,the electrician, or hey, I speak
Spanish, you know that type ofstuff, so it's a cool thing.
So, again, using that date to Ifyou want to be in a contract,
just to kind of see what's goingon, but you don't want to be
tied into the contract, meaningyou want.

(37:08):
So I want to throw it out thereBecause I want those wheels to
start moving.
That's the way I use that,right, I use that paragraph a
lot, so I want to send it outthere.
They got to reply by today atfive.
I know they're not going tolook at it and I know they're
not going to reply by today atfive, but they don't, since they
don't know that.
I know that they don't knowthat they're going to keep on

(37:30):
working and I might get an offer, counter offer, three days
later and you're not committedto anything and I haven't been
committed to anything.
Now, when they reply back andthey counter, then all of a
sudden I'm back in the ballpark,right, but that I that would
allow me to.
All.
Right, let's put this one onice, let's get this one working
while I move on to the next one.
You know, because, again, if youhave clients that that need To
need to find something rightaway, man, miami's a weird place

(37:54):
.
I'm sure New York's like that.
I'm sure these bigger citiesare like that.
You know, it's like a placewhere you know I look and I
don't let's.
I have friends from New Yorkand everything.
I don't give a fuck what theysay.
If you make it in Miami, youcan make it anywhere.
It's a weird crazy.
Listen, New York's not numberone fraud capital of the world
For like five years straight.
That's because the realtorscan't do contracts.
Listen, this is a weird place.

(38:17):
So you, you know you got totake off the gloves sometimes if
you want to be out here.
You got.
You know you want to swim withthe sharks, you can't.
You know you got to have themgloves on.
So those are the little things,you know.
What's the issue here?
Realtors don't answer, you knowyou send them an offer.
You can't even get them on thefucking phone.
So what do I do?
So I'm like, all right, Well,let me just get this thing going
.
But you know, this persondoesn't even answer the phone,

(38:38):
Absolutely.
So that's how you start using,and you and you start using the
law and the rules and thecontract to your benefit.
And that's how knowing thecontract so well Just makes you
money, because not all of asudden you're able to do that.
Instead of sitting therewaiting for that person, you're
putting it on ice and you'removing on.
Maybe they accept another one.
By that time they call you back, say, brother, I couldn't even
get you on the phone and Ialready got around with another
offer, you know, instead of youhaving to chase that person.

Speaker 2 (39:00):
So those are the little things you know well, I
mean, the other cool thing isand I don't know if you know
this, but you probably do butAutomatically all the times in
this are close of business 5 pm,so you don't even have to put
in there.
You used to have to put it,maybe you don't have to you
don't have to, right?
So all you have to do.
And so, even if they call youon it oh man, I'm sorry, you
know, I just was going throughthere quickly and it just it

(39:21):
just defaulted to today's dateor something like that.
So you know, it gives you a figleaf to take and see, you know,
like you're not being reallythat difficult.

Speaker 1 (39:28):
The old, the previous version had a time, so that's a
lot of things that change inthe car.
I can't even keep track of itanymore.
You know I always tell peoplelook I have.
You know Janelle, who's beenwith me for 15 years.
She's been doing my contractsfor about for about 15 years.
So what I got to do every oncein a while is doing what we're
doing right now is go look likeright now.
You know.

Speaker 2 (39:44):
Oh, you say five o'clock doesn't say it anymore.

Speaker 1 (39:46):
You got to go up the date.
You got it.
Now I negotiate them everysingle day.
I'm in a mess with them everysingle day, so you learn, and
that's what I mean.
You don't have to learn, youdon't have to know every single
thing there.
You know you should go back andand refresh yourself, but you
got to know what it means andyou got to know what it, what it
does, more than anything else.

Speaker 2 (40:05):
Absolutely says because that right, there is one
of the things that I like totalk about a lot when I teach
this is the idea of Of not beingobvious with things you know.
Sometimes there's there's waysto take and do things where you
want to be very precise andthere's times we want to leave
information out, because nothaving the information there
actually helps you some.

(40:26):
You just remind them you have agood one.

Speaker 1 (40:28):
Um, go ahead, it's kind of, that's what we're here,
it's absolutely it's.
On the financing part rightwhen you said you know you, you
don't, you just said what was it?

Speaker 2 (40:34):
you just said right now that you don't want to be
obvious Sometimes you don't wantto be obvious.

Speaker 1 (40:37):
What I see a lot of a big mistake that I make, that I
see people make all the time is, um, writing Contracts
contingent on appraisal.
Yeah, oh, my god guys, if, if,what you're trying to do, if
somebody's asking 500,000dollars for the property, all
right, but you know it's worth,for you know, because you've
done all the comparables in theworld, that it's not worth, that

(40:58):
.
It's worth 450.
Okay, and you write Contract iscontingent on appraisal.
You're letting them know thatyou're playing the game that
you're gonna put in an offer Tosee if the appraisal comes down
so you could retrade them on theprice You're.
You're showing them your cards.
Sooner than you have sooner thanyou have, right, the contract

(41:18):
is already.
I shouldn't call you stupid.
I'm teaching people here, right?
That shouldn't I.
Should you were talking to me,okay, okay and I own it.

Speaker 2 (41:25):
I'm good so.

Speaker 1 (41:26):
All right.
So, um, you know you're, you'reyou.
It's the contract's alwayscontingent on appraisal because
the contract is contingent onfinancing.
If, or let me rephrase that ifyour contract is already
contingent on financing, it'salready contingent on appraisal.
Sure, so, because appraisal ispart of the financing.
So you don't have to put thatif it doesn't appraise, then you

(41:47):
don't qualify.

Speaker 2 (41:47):
If it doesn't appraise at the ltv that you
have In your section two, youget out, that's it, and you get
your deposit back and no harm,no foul.
Putting that the contract iscontingent upon appraisal
doesn't mean that the seller hasto go down to the appraised
amount.
It doesn't mean that, whichmeans that you're doing nothing
except restating stuff in thecontract and you're raving a red

(42:08):
flag.

Speaker 1 (42:09):
Hey, um, I already know it's not gonna appraise.
So if somebody has five offers,okay, and you're the only one
that says not.
So not contingent on appraisal.

Speaker 2 (42:17):
Who offers contingent ?
Appraisal offers contingent onappraisal.

Speaker 1 (42:19):
You're the only one that says offers contingent on
appraisal.
You think they're gonna acceptyours if you're already telling
them it's not gonna appraise.
Everybody else is the same way.
Everybody else is contingent onappraisal Everybody because
it's contingent on financing.
So you're just saying, hey, I'malready going to tell you right
now that the property is notgoing to appraise.
They're not going to pick you,they're gonna pick somebody else

(42:39):
.
It's already gonna becontingent on appraisal.
The appraisal is gonna come inlower, they're gonna renegotiate
and they're gonna get it soldat some point right at the
correct price.
So you just gave yourself away.
You excluded yourself from arunning, from actually being
able to get this contractaccepted.
Here's another thing, right.
So if your client Is, you knowI had, I had, um.

(43:00):
So the only clients that Ireally work with right now I'm
not trying to act big time oranything.
I just I'm really busy with myrealtors.
So I I'm not active in realestate anymore, but I do have
friends.
I do have, you know, businesspartners.
I do have family.
I do have People, have been myclients for many, many years.
So I, every once in a while justjust three days ago, I had a, a

(43:21):
friend client, whatever isputting on a pretty you know two
million dollar property and and, uh, you know he's he's putting
a pretty pretty aggressiveOffer on the on the property.
So he's like, man, I reallywant to get this deal.
I'm like, all right, so go cashyou.
Because, yeah, but I don't wantto pay cash for it.
I'm like, don't pay cash for it, but put cash.
Yeah, I mean, first of all, Iknow you could get the financing

(43:44):
right for sure.
You're just no plan on noplanet.
It there's.
There's no way on any planetthat you will not be able to get
finance.
I mean, I know he's veryfinancially strong, so why we're
gonna put financing.

Speaker 2 (43:55):
You're just.
You're just eliminating thecontingency, but it doesn't mean
that the offer has to gocorrect.

Speaker 1 (44:01):
It just means and let me let me say that again, by
putting cash just means that youare functioning, it doesn't
mean that you're forced to do it.
Cash you could still gofinancing, but now you don't
have a financing contingency.
If you don't close, you'reyou're gonna lose the deposit
unless you you uh didn't closebecause of inspection or
anything else.

(44:21):
So what you're just doing iseliminating that.
So if you have a client, that'spretty damn for sure I mean
they're for 100% for sure gonnaclose and you're competing with
other people just put cash,absolutely it all.
It means against.
It doesn't mean that you'remaking a promise or you're
putting on there that he's gonnaactually pick At.
First of all, there's no suchthing as paint.
Let's be honest.

(44:41):
There's no such thing as payingcash.
You're not showing up therewith cash.
Yeah, bullshit already.

Speaker 2 (44:46):
Yeah, like you're not showing up with a box of
suitcase yeah, suitcase cashjust not gonna happen.

Speaker 1 (44:52):
So you are you're saying is I have eliminated all
financing contingency.
I am functioning here, goingforward.
I am functioning, I am goingwhat they call it going hard.
Absolutely right, absolutelyright.
I am going to continue on as ifthis was a cash transaction.
So it's only going to leave methe inspection period title it
could.
The property is not going tohave any title defects or
anything like that.
But if I don't close because offinancing, I'm going to lose my

(45:14):
deposit.
That's really all you're sayingrealistically.

Speaker 2 (45:16):
I mean An analogy for this is kind of like there's a
bunch of guys and there's onegal and she's trying to pick who
she's going to go out with.
That's right, right, andthey're all fairly good-looking
guys.
She finds them all attractiveand she finds out one has got a
really good sense of humor,right.
Well, all of a sudden, who'sgot a leg up?
And she finds out the other guyis rich and Also has a great

(45:38):
sense of humor.
All of a sudden, you got a lotfunnier, right?
This is this is the same thing,guys.
Your contingencies are thingswhere, when you have them in,
it's literally making you lessattractive.
There's weaknesses and as youtake them out, all of a sudden
you get better looking.
Whether that's the, whetherthat's the I don't know this the
the same as taking two shots ofscotch making you better

(45:59):
looking, I don't know, but itmakes your offer better looking
to the seller and, at the end ofthe day, we don't need to be
the best offer in the world.
We just need to be the bestoffer among the ones they have
to choose from, and that is notspecifically Necessarily the
amounts of money that are inthere.
There are other terms and even,as we talked about earlier, the
presentation of the offer Cantake and give you a leg up.

(46:21):
So I think what I'm saying.

Speaker 1 (46:23):
I'm also an optical illusion.
That was like wearing a stripe,a horizontal, vertical stripe
shirt.
It makes you look a little bitskinny, that's what it is.
You're just looking like you'restronger, but you're just as
strong as everybody else.

Speaker 2 (46:35):
Yeah, and I mean I really think what it is?
Is you taking every advantageyou can of all the little thing
Because, like, maybe I mean Ihave had a take and put offers
in that I know are not goodoffers, yeah, but because of the
situation of my customer, it'sthe best they can do, sure, and
so.
So sometimes what winds upbeing the difference maker isn't
even the contract, it's the,the personal letter.
I have them right to go withthe contract and the phone call

(46:58):
I make to the other agent andsay, hey, look, I know this,
this offer makes me look likeI'm a jerk because I've got all
these, these things, all thesecontingencies and it's all in my
favor.
But understand, this is themmaxed out.
They love this house, this istheir dream home.
You know, help me get there,man, I will.
I will do the heavy lifting andmake sure this deal gets done.
That's right and so.

Speaker 1 (47:18):
So, yeah, that's, that's.
Uh, I don't anything, we'rethere yet, but well that's kind
of the inside and outside thecontract.

Speaker 2 (47:24):
Yeah, because part of that is that is what's included
in here and part of that isOutside of the contract.

Speaker 1 (47:30):
Yeah, look and, in general, this is this is, um,
you know, talking about dates.
If you guys want to avoid, thebiggest issues that I see are
realtors for getting their dates.
Okay, what does that mean?
So you have 10 days to inspect.
You got 20 or 30 days for thefinancing contingency.
You got I don't know X amountof days for this, for that, the

(47:51):
biggest issue that I see.
Oh, so another one that youknow second, deposit on such and
such day.
You know, first, deposit onsuch and such day.
I see a lot of screw-ups too.
Sure, because it's uponacceptance.
And when do they bring it in?
So you know, so I we end updoing a lot of addendum, so
there's a lot of things that Ihave to talk about there, right?
So, first and foremost, if youever make a mistake on a
contract, fix it.

(48:11):
Don't leave it there, okay, ifyou're still in contract,
meaning, like I say, you forgotto put the second deposit in or
you put it in five days late,don't stay like that, say, hey
guys, I screwed up, didn't putthe deposit in on time.
Here's an addendum Fixing thedate that I put it in.
Okay, what?

(48:31):
Because what what happens isagain, if everything's right,
everything's right.
But what you don't want to haveis that opening there.
Now again, if they have likewhat's the different backup
offers and you know they wantyou out, then you don't play
around.
I guess you just write it out,explain it to the client and
then you're good.
But, um, yeah, if you, ifthere's anything wrong with the
dates or there's anythingmistakes that you catch through
the beginning process, inparticular of the contract, you

(48:53):
could fix it.
You can fix it and you shouldfix it.
Don't leave openings in thereAgain.
Guys, that other side is yourfriend right now, but they will
quickly become your enemy thefirst time you screw up and then
they're going to use every,they're going to go Through with
this with a fine-tooth comb andthen they're going to get you.
So, as far as dates areconcerned, if you want to avoid
80 probably of the mistakes andthe reasons why people lose
their clients deposits becauseof the dates, if you forget that

(49:16):
.
So, for example, you have a 10day inspection period and you're
not done with your inspections,you can't just say, okay, well,
later on I'll do it.
No, on day 10.
You say I need an extension forthe financing.
Sorry for the, for the, for theUm inspection period, or we
have to cancel the deal, rightwell, by you already sending it
out.
So a lot of people think thatyou have to get it signed back

(49:40):
to be protected.
So long as you send it out,okay, and they say, hey, I need
this, you can't force them tosell it.
You can't force them to sign it.
So now, if they don't, you sendthem a release and cancellation
.
See, I requested it, you didn'tgive it to me and you send them
a release and cancellation.
So but the whole point is thisif there's a 10 day inspection
period, you can't do the shit onday 11.

(50:00):
Absolutely, you can't do it onday 11.
Because if you're gettingsomebody like with experience on
the seller side, they'll belike no, I'm not gonna.
No, it's day 11, dude, we'redone with that, absolutely.
And then, all of a sudden, nowyou're only dealing with the
financing contingency, nowyou're gonna have to go give
them a fake denial letterbecause you wanna get out.

(50:21):
And all of a sudden, if thatguy's good which I would I'll be
like no, no, I wanna seeeverything.
I want proof.
No, I'm going after yourdeposit unless you show me exact
evidence on why I wanna you'rea mortgage broker on the record
telling me why you didn't close.
I want him writing me a lettersaying exactly why they did not
close.

Speaker 2 (50:36):
And I want it on stationary, I want it on
letterhead.
I want it signed, absolutely no, I just had, I just had that
happen.

Speaker 1 (50:42):
That's right, you told me a little story about
that.

Speaker 2 (50:43):
Just had that happen the other day.
I mean for me and this is howI've kind of there's so many
dates that can be a problem andfor me, the way that I've
integrated in my business tomake sure that I never miss a
date is I have it in my CRM, myCRM, you know.
I have the date that I sign.
I automatically have three daysout that customer set for
follow-up and I have in thenotes hey, make sure the deposit

(51:05):
is in.
Now I will tell you this I hadone where the seller was trying
to cancel it because the buyerhadn't got the deposit in.
But the buyer had wired themoney from overseas in plenty of
time but through themachinations of whatever's
involved, from yeah, I justwanna use it today.

Speaker 1 (51:22):
I gotta use this today.

Speaker 2 (51:24):
Through all the aggravation of getting it from
there to here.
It went up taking like threeweeks for the money.
It was supposed to be there inthree days and so luckily, the
title company that I use has anattorney there and the attorney
is going back and forth with theother side's attorney who's
like why isn't the money here?
Well, we're canceling.
Well, wait a second.
You know in good faith they'vedone, and so you know there can
be this sort of thing, but youneed to have proof.
I had documented proof that hehad sent it on time and all of

(51:47):
this stuff.
So I think that 100% is a placewhere your CRM has a perfect
memory because I don't, and Ithink there's actually a good
place to put in a quick shoutout to Pilar, cause she actually
asked us that's right Aquestion about CRM.

Speaker 1 (52:02):
Was Pilar's Instagram or did she write us through
Instagram?
Oh, you have it, there it's.

Speaker 2 (52:06):
Pilar I don't have the rest of the name there and
she'd asked what CRM we use andwhat we recommend.

Speaker 1 (52:11):
Yeah, well, you use a one page.

Speaker 2 (52:14):
CRM.
One page CRM.

Speaker 1 (52:15):
Real simple one.
We use a super complex one too,which is conversion.
It's complex cause it does alot of marketing stuff and
everything.
If you want to use a hardcoreCRM to remind you of stuff,
Pilar, definitely the one pageCRM is a real simple Like it
says.
The name says it's one page.

Speaker 2 (52:30):
Well, I think that the important takeaway that I,
whenever I talk about CRMs andteach them, is the best CRM that
there is is the one that you'lluse, whatever one, and so if
you'll use the complicated oneand you'll do all the stuff that
it does, use it 100%.
I know me.
The problem I have with me isme, and so, like if it's not
simple, I won't use it.

Speaker 1 (52:49):
Yes, it's like the example that I've given a couple
of times throughout thedifferent podcasts it's the
treadmill.
Doesn't matter how bad ass thetreadmill is, if your fat ass is
not gonna get on it, Am Isupposed to body shame people?
Go ahead, body shame me, I'm fattoo I can speak about my own
people, our people, our people.
So if your fat ass is notgetting on that treadmill, it
doesn't matter how good thattreadmill is, it doesn't really

(53:11):
matter, it really doesn't.
So same thing as a CRM.
How good is CRM?
Only as good as you make it,only as good as you make it.
Now there is differentfunctions.
So we use the conversion CRM,which is a lot of the marketing
stuff when it sends out dripcampaigns and it's an actual
website and it has a matrix init so the clients can send
properties.
It has an app that you can sendproperties to and everything

(53:31):
but his.
The one-page CRM, the one thatkind of like uses, is just
remind me of stuff every singleday, so I don't forget anything.
So never forget customers and,by the way, the iPhone if you
guys have a Samsung, I'm sorryit probably doesn't have this,
but the iPhone has.
You could just speak into itand say hey, siri, remind me
tomorrow at 9 am to call suchand such person, and it'll say

(53:52):
yes, jesus, no problem, andit'll do it.
So there's no reason why youshould forget things nowadays.
Even listen.
I have the iPhones.
I have assistants evenreminding me.
I have a going to a wrapreference there.
Biggie used to say I gotlawyers watching lawyers, so I
don't go broke.

Speaker 2 (54:13):
So I got assistants watching assistants so I don't
forget shit.
So I know where to show up,right?
Actually, if I could, I want todo one more, if you don't mind.
Yeah, just shout out to Flipwith Rick.
Thanks, bud, appreciate it.
Hopefully this helps.
Yeah for sure, good stuff, yeah, closing date.
Closing date Actually for timefor acceptance.

(54:34):
I tend to try to think about ifit's not a high pressure sale,
like if it's a condo and I knowthere's not a lot of activity on
it.
If it's a Friday, I'm going togive them to Monday Me, like
I'll think about it.

Speaker 1 (54:45):
If we're not playing games right now.

Speaker 2 (54:46):
If we're not playing games like I try to think about
where I am in the week.
You know, if it's the end ofthe day on Thursday, I'm sending
it in.
All right, I'll give them.
Monday I'll give them a Mondaymaybe Saturday, you know like
I'll think about it.
So just you know, understandthese are real dates and times.
If you're not trying to takeand do multiple deals, you know
it's something to be aware of.

Speaker 1 (55:02):
Yeah, same thing as inspection period too.
Like you don't always have todo 10 days.
If I got the contract acceptedon a Monday, I'll give them to
Sunday.
Yeah, you know what I mean.
I want things moving forward.
Why give them till Wednesday?
Yeah, you know what I'm saying.
If I'm on the seller side, whygive them till Wednesday?
If you're on a Monday, even ifyou're on a Wednesday, and so
you're not going to be able todo it on Wednesday, thursday,
friday, saturday or Sunday, youknow what.

(55:23):
I'm saying so you want to know,you always want to know, where
you are for those dates, evenfor second deposits and stuff
like that.
Just try to figure that out.
So just don't write dates justto write dates.

Speaker 2 (55:32):
So I think the best date for second deposits is
never personal.
That's been my policy.
Why you?

Speaker 1 (55:36):
want to just just just just do a one deposit, one
deposit.
Really.

Speaker 2 (55:40):
Look, you know the reality of it is.
The contract lets you outduring your inspection period.
When we look at it, it's forany reason you want.

Speaker 1 (55:47):
See, I do a different kind of like.

Speaker 2 (55:49):
Talk to me.

Speaker 1 (55:50):
No, no, it's just good.
I like to put on the buyer side, I like to put a deposit
Because you know and now, as I'mthinking a lot, we work a lot
of buyers too, so you're mostlysellers, you're looking at it on
the seller side, so I get itwhat you're saying, but on my
buyer side, I want my realtorseasing the people into the
contract, right?
So if it's a $10,000 deposit,which is your saying look.

(56:15):
Yeah, you're saying, look, giveme five right now.
We got 10 days to inspect theproperty.
Once you've gone through everysingle thing and you like every
single thing on this right, andyou've already the inspector
looked at it, you're good.
Now I'm going to tell you onday 10, I'm going to be like hey
, hey, are you okay with theproperty the way it is right now
?
You're okay with the conditionbecause, moving forward, a,

(56:36):
you're done with the inspectionperiod and B, you're going to
have to give the second depositNow.
So I usually put the firstdeposit upon acceptance, okay,
and the second deposit one dayafter the inspection period.
Gotcha.

Speaker 2 (56:50):
So it eases the person in.
No it makes them feel a lotsafer.
It makes sense.
I mean, if you're, if you'reespecially between, like first
time buyers- that's all justgoing to say.

Speaker 1 (56:57):
Our specialty is first time home buyers and, man,
you know what they're scared.
You know as much as I train myrealtors to walk them through
the process and understandeverything.
You know people are stillscared to put $10,000.
And I don't listen.
And I'm going to tell youanother thing I don't fucking
blame them.
What I'm seeing a lot of rightnow is sellers just being dicks
and just saying I don't care ifI'm right or wrong, I'm going to

(57:20):
go after your deposit Becausethey understand the process that
they're going to spend a yearin escrow dispute, even though
they give them the cancellationletter, even like that.
So yeah, man, you know, even toprotect them, you don't you
want to have a little as littleout there as possible protecting
your buyer to have because ofthese unscrupulous that I said

(57:40):
unscrupulous.

Speaker 2 (57:40):
Unscrupulous.

Speaker 1 (57:41):
There we go, you're not unscrupulous, lacking and
scruples.

Speaker 2 (57:45):
Exactly, absolutely no, that's a good.
I mean, it's a goodpsychological assessment of your
buyers.
And I mean again mad respect,because you do get a lot of new
agents closing, a lot of firsttime buyers, yeah.

Speaker 1 (57:56):
I'll have a brand new agent closing a first deal with
a brand new buyer that's buyingtheir first house.
So you know we have systems inplace to make sure that
everybody's safe, that everybodyfeels good or that everybody's
you know, you know, we got.
We got a again.
We got assistance watchingassistants to make sure that
we're not clients, don't losedeposits, man.
It's just, that's a testamentto training there.
It is a testament to training.

(58:17):
It's a testament to systems.
If you, if we train an agentand then we just say, okay,
agent, you're trained, all rightman, how about it hey?
let me know, hey, let me knowwhen you're close.
Let me the checker right Now.
Man, we got to.
We got to walk them through thewhole process their first, five
, six, 10,.
Again, I'm not making acommercial from them and just
saying if, look and, by the way,the hopes of this podcast is
that people from other statesare listening to me, so you

(58:37):
can't even come here anyway.
But you know, the idea is,wherever you are, you got to
make sure that first, second,third, fourth, fifth contract,
until you feel 100% safe,somebody has to look at it.
Should I got agents that havebeen with me for five years and
it'll still send it and be likehey, what do you think about
that?
Hey, I'm going to put thisoffer and still run things by us
because if and let me tell youwhy because if you've been in

(58:57):
this business for five years,you didn't go through 2008.
You didn't go through 2001.
You have only seen, maybe, thisversion of the contract.
You haven't seen the otherstuff.
You've only.
Your Rolodex of mistakes is one1,000th of what mine could be.

Speaker 2 (59:15):
It's like if you've been a stockbroker for the last
10 years, you've never seen adownfall.
Yeah, yeah, yeah.

Speaker 1 (59:22):
So it's.
You know.
Not only that, but if you're arealtor, you're only seeing your
stuff.
So here at the office we'reseeing everybody's stuff for
years and years and years is thevolume.
And so, yeah, we want ourrealtors to go through our
filter at the beginning as manytimes as possible until they
feel safe.
And wherever company you're athopefully it's not one of those
shit 100% companies that don'treally care and good luck.

(59:45):
And I see a lot of brand newagents go to these 100%
companies.
That's killer, it's insane,it's madness.
I don't even know how theassociation allows that, because
you can't offer people trainingfor 100% and you're throwing
them onto the street.

Speaker 2 (01:00:00):
It's genuinely a bad.
It's just a bad business.
I meant it actually from thestandpoint when I said it was.
It was testament to training,because the kind of customer
that needs the most reassuranceis the first time buyer, and the
fact that you're able to trainyour agents well enough first
time transactions for thoseagents to go make those first
time buyers feel good enough totrust this agent to do this work

(01:00:20):
is a testament to the type oftraining that you do, and it's
things like what you're talkingabout right now with a second
deposit.
That would never have occurredto me in a million years,
probably because the reason whyI don't have second deposits is
completely selfish.
It's one more date that I couldpotentially miss and screw up
my own transaction.

Speaker 1 (01:00:35):
And you work mostly on the seller side.
So you're seeing it as thatlike, hey, dude, I don't wanna
play games, man, just give methe whole deposit right now.
You know what I'm saying.

Speaker 2 (01:00:42):
And realistically.
I said the same thing to mybuyer I want my offer to be as
strong as possible.
Let's come in hard witheverything right now.
No games?
No, you know.
And so again, it's one of thosethings you know trying to look
as good to the gal in the bar.

Speaker 1 (01:00:54):
All right.
So closing date All I reallycare about closing day, guys, is
just put it in days, not dates.
Don't put an actual date.
You don't wanna do that.
You don't wanna be stuck to anactual date.
This contract needs to beflexible.
It needs to be what's theexpand and contract, with
whatever changes you're going tomake.

Speaker 2 (01:01:13):
So 30 days from effective date.

Speaker 1 (01:01:15):
That's the line Honor before 30 days.
Yeah, okay, honor before is agood thing to write All right
extensions and closing dates,okay, something with extensions.
And a little fact that I wantyou guys to know is that
anything that is written by handsupersedes anything written on
the contract.
So if you're gonna write, ifyou're gonna scratch out and
write something over it thatautomatically supersedes

(01:01:37):
anything on the contract, let mesee if Richard that text
Richard during the podcast.
See if he's available.
Let me see if he's.
I wanna get an attorney's pointof view here.

Speaker 2 (01:01:48):
And the cool thing about the closing date is, if
there is a, if there's anythingthat causes an extension because
of lending, there's a or forthe CFPB that there's an
automatic extension built inthere but you have to go to war
to take and deal with it.

Speaker 1 (01:02:04):
Look, now that I'm that I'm, you know, trying to
get Richard on the phone I wantyou guys to understand something
, especially you guys that havebeen in the business for a very
long time.
Right, the reason why I wantRichard's is because I just
wanna get an attorney's point ofview, but not necessarily and I
say this to the face all thetime not necessarily because the
attorneys are right.
Okay, my job for the last 20years has basically been again,

(01:02:29):
cleaning up over my realtorsmess, right, and a lot of times
arguing with these attorneys andgoing back and forth with these
attorneys.
And one thing that I know, onething that I've learned that
just because you're an attorneydoesn't mean you know shit.
It just doesn't.
There's, you know, and again,I'll go to war with any one of
these attorneys.
And, as far as knowledge isconcerned, because I'm in the
nitty gritty, I actually got ina fight with Richard one time

(01:02:52):
over a contract disputesituation.
And I'm arguing with my ownattorney, all right, and I'm
like hey, dude, listen.
And it really sums it up.
I'm like listen, because Ibasically went straight from
high school to work in realestate.
So I'm like listen,motherfucker, remember this.
I was deep into this contractstuff and closing deals while
you were still doing keg standsin college.
Okay, so let's not get thingstwisted.

(01:03:13):
Let's make sure we understandwhat's going on here.
I know my shit way more.
Now listen, 15 years havepassed since he's, since.
We've had that conversation.

Speaker 2 (01:03:20):
We can't get away with that one anymore, Right
can't get away with that one.

Speaker 1 (01:03:23):
Now, he really knows this.
You know stuff, but you don'tknow what other attorney, what
attorney you're talking to onthe other side.
You don't know what they know.
By the way, you don't know ifthey're a divorce attorney that
just so happens to be doing realestate.
Yeah, attorney is not.
You could tell who the realestate guys are by the fact that
they don't like to kill deals.
But you look, attorneys areones.
Attorneys are deal killers.
Attorneys are deal killers 100%and they're a big problem in

(01:03:45):
this business, not the ones thatare real estate guys.
You could tell the ones thatare real estate guys cause
they're here to make a dealhappen.
How do we make this deal happen?
The ones that are the dealkillers are the ones that just
have to scratch out the contractjust because, right, you could
send them a perfect far baragreement.
That, by the way, far bar ifeverybody this is a little
factoid, but do a little soundeffect there for far bar Love

(01:04:08):
that the far bar means the, the,the, the, the Florida
association of realtors and thebar, florida bar, florida bar
got together and made thiscontract.
So that means that attorneyswith realtors got together and
made a contract that is fair toboth sides.
So there's no such thing as abetter contract than this.

(01:04:28):
Any other contract.
You go to office depot, you goto office max or you go on on
what's that attorney's websitethat you go?

Speaker 2 (01:04:38):
Oh, legal zoom.

Speaker 1 (01:04:39):
Legal zoom and all that kind of stuff.
They're usually the one side,yeah.

Speaker 2 (01:04:42):
They're skewed.

Speaker 1 (01:04:43):
They're usually skewed to one side or the other,
you know.
So what this was is the mostfair contract possible.
So when you see that, you sendthis to an attorney and they
scratch shit out line 95,.

Speaker 2 (01:04:53):
I don't like to use the word diligent, right, yeah,
that's it, it's because theyhave to justify.

Speaker 1 (01:04:58):
The client shows up and says hey, can you review
this contract?
And they're charging them 300bucks an hour.
Right, they have to justify.
They can't say, okay, it'sperfect, all right, great, nice
job.
This is a perfect contract.
You know, If they were, ifthey're real estate attorneys,
they'll tell you hey look, man,this, just so you know what this
contract is.
This is the contract with theFlorida association of realtors.
The Florida bar got together,made this contract.

(01:05:19):
That's fair for everybody.
That's very neutral.
So, you know, we could add somestuff and everything like that,
but no, we shouldn't scratch itout, because everything is
there for a reason.
That's what a real attorneyshould do.
But then you get these, thesesmartasses that they've been
doing.
You know they've been ambulancechasing I'm going to make a
piss a lot of attorneys on thisone.
They've been ambulance chasingfor, you know, 10 years and all

(01:05:40):
of a sudden they want to do acouple of real estate
transactions.
They want to tell us what to do.
Guys, give yourself a littlebit more respect.
Yes, I know they're attorneys,Okay, but they might not be a
real estate attorney.
It doesn't mean they knoweverything.
Defend yourself Well, 100%.

Speaker 2 (01:05:52):
Don't get bullied by attorneys.
Let me piss off the rest.
Let me piss off the rest of theattorneys that you missed,
because you may have missed somein that.
Thanks, I kind of think-.
If they have a Samsung, evenworse.
There you go.
Oh, that's double women.
I kind of have the sameconversation that I do about
home inspectors.
What is the home inspector'smotivation?
Right, the home inspector wantsto make sure that he doesn't
miss anything in this house thatcould potentially break,

(01:06:15):
because if he does, it comesback on him, the attorneys.
Attorneys tend to be very riskaverse individuals because if
they miss some liability andagreement and it comes back,
that, that's the thing thattheir customer gets hurt on.
It's on them.
So their position is always canI find anything that has any

(01:06:36):
liability?

Speaker 1 (01:06:37):
whatsoever.
You know what I always told myclients here.
Have you ever seen aninspection on a brand new home?
Same shit as a 50 year old home.
They have everything's wrongwith it, absolutely.
I've never seen guys.
In thousands I would say tensof thousands of transactions
that I've been involved in oneway or another, I have never
once seen a perfect inspection.

Speaker 2 (01:06:59):
The home inspector comes back.
Wow, it says nothing hey,everything's right.

Speaker 1 (01:07:04):
This is crazy.
Every plug is working, everylight is working.
It'll never happen, and yougotta explain that to your
client.
Guys, listen, something's goingto come back.
Something is going to come back.

Speaker 2 (01:07:17):
I literally just wrote a chapter in the new
course that's coming out nowyesterday on dealing with the
deal killers.
It was on home inspections andit was on very much that exact
same thing.
You have to have this greatconversation If your customer I
think right now with thecontract, it's the right time to
talk about it.
If your customer wants theattorney to review this, say,
hey, look, that's fine theyshould, but understand, the

(01:07:38):
attorney's position is this youknow you need to set them up so
that they at least have thatrolling around in their brain as
a counterpoint to everythingthe attorney says is gospel and
it has to be this way.

Speaker 1 (01:07:48):
Yeah, absolutely.
Listen.
Honestly, when clients have anattorney, it takes a lot of
pressure off me because now, allof a sudden, I'm not
responsible for anything.
They're responsible for it,right, the attorney's always
looking at everything, okay, butlet's just be honest here.
They're going to find somethingon this.
Sure, it's their job to findsomething.

Speaker 2 (01:08:08):
It's impossible Justify their fate.

Speaker 1 (01:08:11):
Just so you understand what this contract is
.
All right, it was made to beneutral.
Everything is here for a reason.
By you changing this, you'rerewriting the way real estate as
a whole functions in the stateof Florida.
This is the contract thateverybody has agreed to use.

Speaker 2 (01:08:28):
Now your smart as attorney is going to change that
and really, I mean, theattorney really needs to look at
only the blanks, only thethings that we filled in, to see
if those terms matter.
They're looking at the otherstuff Again.
They're just trying to justifytheir fate.
Where we kind of left off wasthis idea of extension, and
there's two things in there.

(01:08:48):
One is there's an automaticextension If you have financing
and because of disclosures andall the things that are required
for the lender, if those thingsare delaying the funds being
available, you have a built-inextension up to 10 days, right.
The other one is force majeure,which force majeure is not, as
I mentioned.

Speaker 1 (01:09:06):
We're in the middle of a force majeure right now.

Speaker 2 (01:09:08):
Yeah, it's not a famous French fast food
restaurant.
It is a situation that is anact of God.
It is something beyond anyone'scontrol that causes a problem
that makes closing potentially,or makes completion of the
agreement, not possible, despitethe best effort of all parties.
So I have a situation with this.
Right now I have a customerthat's in Europe.
There are no flights fromEurope coming back.

(01:09:30):
He needs to close.
The thing is that the lead timefor him to get a appointment to
get a notarization at theembassy is weeks.
It's a super backlog.
So the odds of him being ableto close the transaction that
way are an issue.
So we're looking ate-notarization, which is a newer

(01:09:50):
thing that was just approved bythe state Not to all go A
couple days ago, type of stuff.
No, it was approved, I thinkOctober, november of last year,
maybe a little bit shorter,that's right.

Speaker 1 (01:09:57):
that's right, that's right.
We talked about it back thentoo, and so I was wondering if
it was like an emergency COVIDthing.
But I remember, yeah, it wassomething that they made.
It they changed because, again,we're living in a digital world
.
Why wouldn't it be?
And my title company is sortingit up.

Speaker 2 (01:10:10):
But I mean the way they're gonna do it is like that
they have to show the.
He has to go on Zoom and showhis driver's license, then send
a copy, then they have to turnthe camera so they can see him.
So I mean they're working thebugs out and my title company,
the one that's actually doingthe closing, they're working
through.
They've taken a bunch ofseminars to try to understand
how to do this.
They're talking to the lender,they're talking all these
parties.
But again, if this closingcouldn't happen because he

(01:10:33):
couldn't get access to a notary,he couldn't come in the
contract would automaticallyextend because once again, the
act of God outside of thebuyer's control.
He's not in breach through anyfault of his own.

Speaker 1 (01:10:45):
Yeah, yeah.
So okay, occupancy andpossession.
You wanna talk about that.

Speaker 2 (01:10:50):
There's not a ton there.

Speaker 1 (01:10:52):
I mean basically it's saying that so is it an
occupancy if there's apost-occupancy or a
pre-occupancy agreement.

Speaker 2 (01:10:57):
So Well, post-occupancy is tough.
I mean post-occupancy reallyhave to be careful, and
pre-occupancy even more so.

Speaker 1 (01:11:04):
Pre-occupancy is easy If you could avoid, and let's
talk about that for the brandnew realtors.
So you're selling a house, it'sempty, it's vacant, the buyer
wants to move in before hecloses.
Okay, that's a pre-occupancy,meaning that?
So they're gonna move in alltheir stuff and everything?
Now the shit, how can that gowrong?

(01:11:26):
There's a bunch of them, butwhat if he can't close?
And now you got somebody insidethat house that has nowhere to
go, and even with a lease, evenwith a lease Even with a lease,
you gotta go through evictionprocess.
You can't go through eviction.

Speaker 2 (01:11:39):
You have to go through an ejectment.

Speaker 1 (01:11:41):
I did not know that.

Speaker 2 (01:11:42):
This is a yeah.
No, I went in propertymanagement company.
That's right.
That's right.
I run into this Actually I wasjust listening to an attorney
talk about it Because I mean youcould go through the eviction
process, but if they can contestthat they have a right to be
there because of the contractthat they have in the home, you
have to go through the ejectmentprocess.
So like maybe there's maybethere's a dispute over the
escrow money and you know thebuyer wants to close.

Speaker 1 (01:12:03):
So you gotta clear up the terms of the contract
before you give.
That's why it's called anejectment.

Speaker 2 (01:12:08):
So instead of being a one to two month process, which
I mean an eviction is six,eight weeks, right You're
looking at a year to two years.
Shut the front door.

Speaker 1 (01:12:17):
Yes, sir, Shut the front door yes sir Fudge.

Speaker 2 (01:12:20):
Yeah fudge muffins.
Yeah no, it's no joke.
And so the exposure to yourcustomer is huge, whereas a post
occupancy it's not nearly asbad, as long as you get a lease
signed at closing, which Ialways do Because the seller has
already given away their rightsto the property.
The closing has occurred, theseller no longer has right to be
there other than this lease.

Speaker 1 (01:12:40):
So you're saying so go back to this ejectment that I
just learned about now.
So it makes sense, because nowyou're not throwing, now you're,
you're getting that person outof there has nothing to do with
the actual lease, has to do withthe terms of the sale and
purchase contract, and you gottamake 100% sure that that does
not that the breach wasn'treally the seller that has
forced them into that situationand that's why he's in there.

(01:13:01):
So whoa.

Speaker 2 (01:13:02):
Yes, as my dog says Roof.

Speaker 1 (01:13:05):
Roof.

Speaker 2 (01:13:06):
Roof Wow, big time.
So it's one to be aware ofInteresting.

Speaker 1 (01:13:11):
Also.

Speaker 2 (01:13:11):
So you guys, always learn something, man, absolutely
and never stop and I learnedsome stuff that, like I had
never heard that on seconddeposits.
I had never heard that as areason to do it, and it's a good
reason.
I like it.

Speaker 1 (01:13:22):
All right.
Assignability All right.
So let's talk about theassignability.
Let's talk about there is abreed of human that is called an
investor.
Those folks, yeah, you willknow who the real investor is,
just cause of the amount, thelack of bullshit.

(01:13:43):
Okay, but then you'll have theperson that read or went through
a seminar in.

Speaker 2 (01:13:52):
Zero Down.
Buy With no Money Down.

Speaker 1 (01:13:54):
Wisconsin right, and you know it's.
It's Buy With Zero Down, buythe property with no money and
then flip it and all that shit.

Speaker 2 (01:14:05):
Offer 60% of market value.

Speaker 1 (01:14:07):
Yeah, and play all of those games, none of which work
All right.
So when I see that, okay, and Isee one of my realtors calls me
cause hey, what's up with this?
I'm like, put me on the phonewith the guy.
I go, dude, what's going on,what's up with this?
So tell me the truth.
Did you read a book and theytold you to do this shit?
What's going on?
And I just cut right through itbecause it's, it's.
I see it a lot when I seeAndorra signs.

(01:14:30):
I don't know where the hellthey're teaching this, but
that's what happens.
They're trying to put theproperty on the contract.
They're trying to get a buyer,they're trying to get it on the
contract for 200.
Trying to flip the contractcomplex.
I'm not going to call itimpossible.

Speaker 2 (01:14:45):
No, it's not.
There are wholesalers.
That that's what they do, yeah,and sometimes they'll flip the
contract.
Sometimes they'll buy the houseand reflip the house to you,
right, I mean they, they are theones that are good at Red flag,
though Careful Because very fewpeople could actually pull it
off.
Yeah, well, they're eating atthe trough twice.
Basically, yeah, they're makinga profit and then they're
selling it to you and you'reexpecting to make a profit.
Yeah, and so it's.

(01:15:05):
I mean, I bought.
I bought a couple of propertiesfrom wholesalers.

Speaker 1 (01:15:09):
So how does it exactly work then?
So tell me exactly how it works.
Okay, so you're, you're, you're, you're, you're, you're have
the contract.
Do you know how?
I mean, have you gone throughit enough, where you know, yeah,
yeah, okay, so they, they, they, they get it on their contract
for 200,000 and they telling you, hey, cadillac, I'm going to
sell it to you for 240, but theynever close on it, correct?

Speaker 2 (01:15:26):
Okay, so that title, what happens at title, at title,
they get, they get their pieceand how it's basically a
simultaneous closing, it closessimultaneously.
Or they'll just assign thecontract and they get the
difference.
So they'll be on the HUD andthey'll get paid is the way that
I've seen it done.

Speaker 1 (01:15:45):
They'll be on the hood, but like what mechanics
are used for that again, Becausetheir contract is for 200.

Speaker 2 (01:15:51):
They're assigning it to me at 240.

Speaker 1 (01:15:53):
Right, so you would have just literally.
So then the 200 would disappearand you would have to basically
just wire in 40.

Speaker 2 (01:15:59):
Yeah, here's the deal I pay them the 240, they pay
them the 200 and deal done.
I mean, usually the numbers area little closer to like.
They buy it for 200.

Speaker 1 (01:16:06):
No, right, right, right, right and 212.
Yeah, 212, very very very.

Speaker 2 (01:16:09):
yeah, they're making a little bit, but in order to do
that, they're putting 100offers in to get one property.

Speaker 1 (01:16:14):
And, by the way, all you gotta do is get your fucking
real estate license and theywould make exactly the same
thing with a lot less of ahassle.
Sure, that's the thing.
So when I see that, listen,nope, listen, hey, listen,
wholesalers, I really don't havea problem with you.
Guys, god bless, you continueto do what you're doing Hustle,
hustle, the good hustle Big time.
But get your real estatelicense and you could just put a

(01:16:37):
commission on there and do thesame exact thing with no problem
whatsoever, without having todo this whole simultaneous thing
and having this wholeconvoluted title company.
You gotta have a title companythat's willing to play ball with
that too, because that opens upa lot of stuff, guys.
That opens up title and who'swho and who has ownership and
who sold it and where did youbuy it kind of messes up the
chain of title, kind of maybe no.

Speaker 2 (01:16:59):
I mean, if the title company knows what they're doing
, it won't and realisticallyit's very doable because you
know again, it's the chain oftitle.
You know, it went from this guyto this guy to this guy.
And I mean, realistically, whatthe guy is doing is he's
actually selling his position inthe contract.

Speaker 1 (01:17:15):
But the bank that's lending you the money, unless
you're buying cash, kind of likeright.
So if the bank is lending youthe money, it's gonna have to
see money going 40, whatever$12,000 going to a third party.
I mean, everything has to bedisclosed on the HUD to be legal
.

Speaker 2 (01:17:30):
You know, I have no idea how it would work with
financing, because I've alwaysbought with cash or maybe hard
money and hard money.
Doesn't care what I do, Doesn'tcare what you do.
Yeah, they have 50% LTV youknow go ahead default, I'll pick
the property, yeah yeah, weshould.

Speaker 1 (01:17:42):
we should actually when we have, aren't we gonna
have something on flipping?

Speaker 2 (01:17:45):
Yeah, we have.

Speaker 1 (01:17:46):
We should have a wholesaler and we should have a
flipper in here, absolutely.

Speaker 2 (01:17:49):
Be good, have Terrence on.
You'll be great at that.
But I think that the thing thatis important to go over here is
there's three options and twoof the options if you're on the
seller side, right.
There's one option to me thatis unacceptable, which is that
the buyer can assign thecontract and therefore be
removed of all liability toperform.
I don't care what they're doing.
That's never a viable option inmy universe.

(01:18:10):
I have a contract with them.
If they assign it to somebody,I don't.

Speaker 1 (01:18:14):
I don't care who you assign it to.
I'm your responsible for it.
Now you're both on the hook,yeah.

Speaker 2 (01:18:18):
And so that I'm actually happy you want to sign
it to this guy.

Speaker 1 (01:18:20):
Yeah, yeah, he doesn't work, I got somebody
else, I got you too, yeah yeah.

Speaker 2 (01:18:22):
So somebody's gonna take and close in this stupid
deal 100%.
The third option and this isthe one that I normally mark in
my offers is may not assignAgain.
It's just one more thing to be,to not be the person that
forgot to wear deodorant at thebar.
Yeah, it's one more thing.

Speaker 1 (01:18:37):
I always forget deodorant on one arm, which is
weird.
I've never forget it on both.
Well, you have a good side anda bad side there.
No, it's weird man Like I'venever been like, oh, I forgot
deodorant on both arms.
It's always that one arm.
It's the weirdest thing.
Yeah, that is.

Speaker 2 (01:18:47):
I can't say that.

Speaker 1 (01:18:47):
I can like I don't know how it happens.
Yeah, all right, there you go.

Speaker 2 (01:18:50):
That's a lot too Good stuff, hopefully at that side
Today.
Yeah, all right, so Financing,financing, the big one for me is
really in section B I talkedabout it or paragraph eight,
sorry, pirate, paragraph eightfinancing.
So the big one for me is thatagents don't write in here a
rate.
And the reason why it mattersto me that they write on a rate

(01:19:11):
is because what the languagesays after that, or whatever,
the prevailing rate, is based onthe credit worthiness of the
buyer.
Which means, let's say, therates that my customers expect
me to talk to mortgage brokerabout is three and a half right,
and all of a sudden the lenderlooks at my buyer and they
determine you know what?
You can't get a loan at threeand a half, but we do have a
product at nine that you can get.

(01:19:33):
My buyer has to close at nineif I don't have a rate in there,
a rate cap Now.
So like it's not a big deal,it's not gonna happen all that
often.
But you literally what you'resaying is let's say the Federal
Reserve raised rates five points, my buyer still got to close
based upon that interest rate.

Speaker 1 (01:19:52):
Yeah well, technically their payment would
go up almost double and theirdebt to income ratios would go
out of whack.
And then they don't qualify.
It's possible, but that'sanother level of protection.

Speaker 2 (01:19:59):
It's a level of protection for them and it
really doesn't cost you anythingbecause you know what as a
listing agent I don't care like,unless the rate you put in
there is like 3.12%, and it'sjust 3.12% today and we're
expecting it to go back up again.
That might say, hey, look, putthree and a half in there or
something you know.
Leave a little bit of cushionso we can.
Actually I don't want you tohave that out, but I mean for me

(01:20:20):
, if I'm putting an offer inright now, I'm putting in there
four and a half, something likethat.
I mean it's still.
If my buyer winds up stuck atfour and a half, it's not the
end of the world, but at the endof the day I put a cap on their
liability.

Speaker 1 (01:20:32):
there it's a little bit.
Another thing you gotta put yougotta put if it's conventional,
if it's FHA, if it's you don'twant them changing from one
thing to another.
You know it's, you know, and alot of things, that a lot of
times that what I see is, youknow, cash only on these
listings, they want cash only,and a lot of times that's really

(01:20:52):
because of ignorance.
They don't realize that youreally can close FHA on it.
If you do things right, it's apair of things and maybe you
could even make some repairs tothe property before you close,
which is not illegal.
It's not smart in some casesbut it's doable as long as you
know you.
Maybe sometimes they're missinga kitchen or you could put you
know so or do a 203K, and thenyou don't have to have any of
those.
But that's a little bitcomplicated 203K, by the way.

(01:21:13):
It's like a rehab FHA kind of.

Speaker 2 (01:21:15):
There's two of them.
There's a streamlined 203K andthe 203K.
The 203K that requires, youknow, a general contractor to
have multiple estimates, and I'mactually doing actually.
There's another one, not aneasy loan to get a compressor.
No, the one that I'm doingactually is a conventional like
a 203K.
It's a I can't think of thename I have to.
Maybe next time we do a podcastthey'll have to come back and

(01:21:37):
give them what it is.
It's like a home source orsomething like that.
But it is a rehabber loan,conventional for a single family
home.
Ladies doing it, she's gettinglike an extra 120,000 to
renovate the house on the loan.
It's pretty cool productbecause even when I told the
other agent they're like there'sno such thing as anything but
the 203K for renovations and Iwas like, no, this product

(01:21:59):
exists and it's a good one.
So another option for folksthat want to buy a house that
maybe needs a little bit of love.
I'm actually a fan of thatbecause you know what you can
fix the house up the way thatyou want it.
I showed you the picture of myshower the other day.
That's the.
I would never do a shower likethat for anybody else, but
that's what I like.
And so like if I was doing amodel home or something, it
wouldn't look like that.
But because it's me, I spent athousand bucks on tile for my

(01:22:21):
little shower because you know Iwant it to look just like I
want it to look.
And so when you're renovating ahouse for yourself.

Speaker 1 (01:22:26):
The shower is important, buddy.

Speaker 2 (01:22:28):
Very important room in my house.
So, that being said, I thinkthat's really the big stuff for
me.
From the financing section thatI see a lot of stuff on, those
would be the big ones yeah.

Speaker 1 (01:22:38):
All right, so title Closing the last things.

Speaker 2 (01:22:45):
actually, there's the last two things, that line 123
and 124, which is page three.
Still section eight, yeah,assumption of existing mortgage,
which really, really, reallyplaced.
Your ever going to see that asa VA.
Va still allows for a subjectit does.
That's always been a part ofthe ever seen one of those.
Well, that's usually becauseit's going to be VA to VA, so it
would be an armed forces personand we're not really a big
armed forces town, we're not.

(01:23:06):
That's why we don't see it asmuch, yeah, but I go with some
like Pensacola or some placelike that One of our lenders,
Jay.

Speaker 1 (01:23:11):
We call him VAJ because he's actually an expert
in it, but I wonder if he knowsthat.
Yeah, I'm sure never seen, I'venever even seen an assumption
on residential.

Speaker 2 (01:23:19):
I've never seen an assumption that's because when
you got in the business, ifyou'd seen it, if you were been
in, like in the early 80s,assumption was the game was
everything because rates werelike a 20.
Rates were so high.

Speaker 1 (01:23:27):
So I mean, if you had 20, literally right yeah 21 at
one point.

Speaker 2 (01:23:30):
So if you were at 12, well, wait a second.
The houses I'm going to buy itfor 200.
I can pick this mortgage theyhave at 80,000 at 12 and then
just get a second mortgage forthe difference.

Speaker 1 (01:23:39):
Yeah, so for you complainers out there, the ones
that the serial complaints, theyjust love to complain about
everything, right?
Oh my God, this business is sodifficult.

Speaker 2 (01:23:47):
And what am I going?

Speaker 1 (01:23:47):
to do.
It's so hard and what am Igoing to do?
And everything's a fuckingobstacle.
Just imagine functioning inreal estate with the rates we're
at like a three right now.
Imagine a rates at 21.
Imagine you're in this businessat 21 with a 21% rate.
Okay, stop fucking complainingPlease.

Speaker 2 (01:24:04):
Absolutely, you know.
And so the other one ispurchase money, and that's
something is a little bitslightly more common.
It's more common, andespecially if rates start to go
back up again, that's somethingelse that you will see.
Yeah, I fully expect, a fewyears from now, for rates to be
back up, and when I say back up,higher than they've been in a
long time.

Speaker 1 (01:24:21):
Purchase money mortgage seller financing.

Speaker 2 (01:24:24):
Basically, the seller is operating as the bank and a
lot of times that winds up beinga second, where the seller is
going to take a second to helpthem because maybe they can't
get the deposit put togetherthat they need or the down
payment that they need.

Speaker 1 (01:24:35):
I did 111 purchase money mortgage deals in four
months In 2009.
Good stuff, yeah.

Speaker 2 (01:24:46):
So I was with the developer.
Yeah, oh yeah, that'll do, andthere was nothing else, nobody
else was lending.

Speaker 1 (01:24:50):
So I'm like Lou, you want to sell this place.
You got to sell your financeand I knew that there were
liquid.
Still have clients on mind tothis day, still doing deals.
Just close the deal for them.

Speaker 2 (01:24:58):
Seeing as you haven't said the name, can you say what
kind of rate?
Uh seven and a half.

Speaker 1 (01:25:04):
Seven and a half.

Speaker 2 (01:25:06):
So again he's got a 7.5% rate of return on his money
.

Speaker 1 (01:25:08):
Yeah, it was a 7.5.
I remember, if I remembercorrectly, he needed to get rid
of the property.
Anyway, he was built for it.
They were lending money anyway.
They were very, very liquid,they were very.
They just wanted to get out ofthe property.
So I'm like, well, you want it,you want to get rid of it,
let's be the only ones.
And yeah, it was 111 that weclosed on.
We sold it in 60 days, but ittook us about 120 days total to

(01:25:31):
to, to, to, from marketing toclosing.
So beautiful.

Speaker 2 (01:25:33):
Yeah, no, again, be the person that's doing
something different thaneverybody else To me.
Again.
You know, in the market rightnow there's people that are
scared and stuff man I amrunning toward buying.
This is, this is where it's at,and here's another lesson there
Understand financing.

Speaker 1 (01:25:45):
I would have never had those closings Because, as a
matter of fact and that broughtme another 100 that I closed
for somebody else a couple milesaway, that they were like, oh,
I like what you're doing hereand let's do it over there.
So if I, if I didn't understandfinancing the way I did and,
guys, listen, you got.
One of my biggestaccomplishments in this world

(01:26:06):
would definitely have to be well, my CCIM right Mathematically.
Because because the in ninthgrade my teachers called my
parents and said, dude, listen,let's just stop the math with
this guy.
And I didn't do listen, I don'tknow why I think things change
now, because I don't thinkthat's allowed now but I didn't
do math 10th, 11th or 12th grade.

(01:26:27):
I stopped in pre-algebra Like,listen, this fucking kid is just
not getting it.
And I just, I am that bad atmath, that bad at math.
But, man, I knew how importantit was to learn financing and I
can't tell you how much money,how much money that.
I'm just giving you a window.
That was a window of fourmonths plus another six months.

(01:26:50):
So within 10 months I had 200closings.
And, guys, that's just oneexample of understanding seller
financing and setting it up,setting up the whole thing.
I had all the documents drawnup with the attorneys and
everything like that, and we gotit done and I was having
closings when nobody was havingclosing 2009,.
I was the only mother of 100closing deals.

Speaker 2 (01:27:06):
I think that the thing is and I find this to be
more and more the case is beingthe first that can bring options
to the table to the customer,and if you can come in with a
creative idea and say, hey, look, why don't we do this?
I know I do that with mycustomers a lot of them and,
realistically, guys inresidential real estate.
That is so easy to do Becausein general, the other agents
aren't bringing any ideas to thetable other than the rates are

(01:27:28):
low.
Let's get in the car and golook at properties and if you
understand your product, if youunderstand what comes before and
what comes after, there's somany smart things you can say.
That's just so distant toyourself from every other agent
that's out there that it's easyto not only.

Speaker 1 (01:27:46):
Kind of educate yourself, man.

Speaker 2 (01:27:47):
It's not only about having the customer, but it's
about keeping customers and ifthey know they can't get it
better than anywhere else I sayit all the time.
I knew a bunch of agents thatwould get upset when customers
would go work with other agentsand stuff like that.
I was like I never kept thegirlfriend by being like where
are you going?
You better not be going out.

Speaker 1 (01:28:04):
You going to see another guy, no.

Speaker 2 (01:28:07):
I try to be good.
I'm good at what I do.
I'm a good boyfriend.
If you think you can do bettersomeplace else, ok, but I'm good
to you and I never reallyworried about it, right, that's
the same kind of thing, and soonce you start worrying, you're
dead, absolutely 100%Disclosures, paragraph 10.

Speaker 1 (01:28:25):
Oh wait, did we skip some?

Speaker 2 (01:28:27):
We skipped.
One, which is actually one ofthe big ones for me, is nine At
the bottom of nine, which istitle evidence in general, and
it's talking about who's goingto pay what closing costs.
All right, there's threeoptions there Most of the state,
the seller picks and pays.

Speaker 1 (01:28:43):
Yeah, and it's funny you say that most of the state,
because there is.
I think it's up north thatthings change, the other way
around.

Speaker 2 (01:28:50):
Well, down here, the buyer picks and pays.
So Miami-Dade, broward, palmBeach is seller picks and pays.
Yeah, it's weird how thathappens.
Well, it's, and the culture islike a custom.
Yeah, it's custom, it's done bycustom.
So like if you left it blank,it's going to default to
whatever the custom is for thearea that you're in right Down
here, because Miami-Dade andBroward are such a special part

(01:29:11):
of the world, we literally thereason why there's three options
is because there's the way mostof the rest of the state does
it, the way the other part ofthe state does it, and there's a
third option, the crazy way wedo it, and it's literally called
the Miami-Dade Broward regionalprovision.
So let me kind of make this assimple as I can.
Seller picks and pays is prettystraightforward.
The seller picks the titlecompany and they pay for the
title insurance.
Buyer picks and pays.

(01:29:31):
The exact opposite, prettystraightforward the buyer picks
the title company, the buyerpays.
Miami-dade regional provisionthe buyer picks the title
company, but the seller isresponsible to bring the
abstract of title up to date orprovide the title policy, the
previous title policy.
This saves money and time tothe title company, or they pay
for the extra money and time forthe title to be brought up to

(01:29:52):
date.
Realistically, what this meansto you is just because it says
Miami-Dade and Broward regionalprovision doesn't mean you have
to use that.
If I am the seller, I mightcounter with the buyer picks and
pays and they have to pay foreverything.
It saves my customer 350 bucksor whatever it's gonna be.
If I'm the buyer side, maybe Ipick the seller, she'll pick and

(01:30:13):
pay.
Maybe I wanna do that.
You can do this stuff.
The thing that's important isto understand the difference
between them and what they meanfor your customer and to be
willing they can be negotiatingpoints.
That's basically what thatboils down to that's pretty much
it.

Speaker 1 (01:30:27):
Who picks pays.

Speaker 2 (01:30:28):
Who picks pays, except in Miami-Dade, and it's
kinda split a little bit.

Speaker 1 (01:30:32):
All right, so disclosures.

Speaker 2 (01:30:34):
There's one that actually we could hit on too,
that really quickly, if youdon't mind.
There's two.
There's one that's huge and onethat's a little one that we
just talked about.
I was talking to you earliertoday about home warranty, and
this is not something I do.
Yeah, you were telling me that,but it's something I've been
thinking a lot about, becausehome inspections are such a deal
killer Again right in the bookon the deal killers now for the
state.
If one of the options again onemore option, your tool belt to

(01:30:58):
kind of save your deal is, sayto the buyer side, hey look, I
understand that there's $5,000worth of repairs that you're
expecting on this because youthink this is gonna break and
this is gonna break and that'sgonna break.
How about this?
How about I buy you a homewarranty?
It's gonna cost $5, $600,whatever it costs to cover the
property for a year.
So you know that if any ofthese things break, you're not

(01:31:19):
gonna have an expense.
Maybe I'll repair this and thator whatever.
Use it as a tool to take andminimize the buyer's risk,
because really what the issue isis most of the time when buyers
buy a home, they are up to hereas far as how much debt they've
taken.
They've got no more money.
All their savings have beenused for a down payment, and now
they're tight and so they'reworried.
If that dishwasher breaks, Ican't go buy a new dishwasher, I

(01:31:42):
can't even afford really tohave the repairman come, and so
this is a way to take andminimize their risk and maybe
get your deal done, just simplybecause you have another option
available.
That was the little one.
The big one is this, andactually the place I talk about
start this conversation is withthis the contract, the standard

(01:32:02):
contract, the one that we'retalking about now, the 12 pages.
I ask agents all the time whatkind of real estate is this for?
They say it's for all realestate.
I said is it for all realestate?
Really, just these 12 pages?
What are they for?
It's not for all real estate.
It's for all real estate builtafter 1978, not part of a condo

(01:32:25):
or homeowners association, notusing VA or FHA financing.
Because if I'm going to do anyof those things, I need an
addendum.
That addendum has language thateither we would have put it-
Mirrors or supersedes what's inthis.
It changes this contract toeffectively do that type of
transaction.
So if you see any language inthis agreement that you think

(01:32:46):
has to do with your condo oryour HOA, you must be mistaken,
because this agreement hasnothing to do with condos and
HOAs.
It has to do with the sale ofreal property and in order to
take and have it work with acondo or HOA, you have to use an
addendum that speaks to thosethings.
So this is the area where Ihave, honestly, I've taken
advantage of a lot of agents inthis section right here what's?

(01:33:07):
the right feel buddy.

Speaker 1 (01:33:08):
It's okay.

Speaker 2 (01:33:09):
Don't feel bad, unless they I'll put it out this
way If the agent tells methey're a new agent, I would
never do this dirty trick tothem.
But if they're puttingthemselves forward as a real
estate expert yeah, top producer, top producer, 100%.
I put in the special assessmentsection that the seller will,
the buyer will, pay allassessments after closing.
And then in the condo addendumI make the seller responsible

(01:33:30):
for all special assessments.
And here's the reason why thissection specifically excludes
condos and HOAs.
It literally says it's forpublic bodies, so like if the
city came in and was doing a newdrainage system and they're
gonna assess your property.
That's what this is for.
If you put this in here,thinking that this has to do and
I'm telling you I talked withthe title company they're like

(01:33:50):
this is the number one thing.
They agents think this is forthe special assessment in the
condo.
If you mark this, it hasnothing to do with the special
assessment in the condo At all.
Your buyer will be responsiblefor it after closing.
You will be sad and they willnever work with you again.
So, 100%, no matter what youmark here, no matter what, it

(01:34:12):
has nothing to do with a specialassessment for the condo.
So that's my big one, love it.

Speaker 1 (01:34:17):
Great one, phenomenal one.
All right property maintenance,that's easy, Just make they
gotta make sure they gotta keepthe property the same way from
the day of contract until theday of closing.
And I have had issues with thatwhere something crazy happens
to the house and then they havea walk-through inspection and
then this is not here, or notreally.

(01:34:39):
This is not here, more like thecondition of the property they
moved out and the grass is highand they bust up the walls, but
with stuff out they bust it upthe walls.
There's raccoons living in thehouse.
Now, that type of stuff.

Speaker 2 (01:34:51):
And so usually what you'll do there is have a cure
period.
What I like to do always whenit's something like this is
because I always wanna be movingtoward closing.
I'd rather make the sellerstill responsible to fix
whatever it is and escrow moneyat closing.
I wanna take and get theclosing done, because that's
such a hurdle, especially whenfinancing is involved.
So I'll say, hey look, it's a$1,000 thing to fix, let's put

(01:35:12):
2,500 in escrow.
The seller gets it back as soonas it's fixed.
I had one the other day wherewe had a roof permit with a city
I'm not gonna say what city.
I'm a general contractor.
I can't piss off cities.
It's bad business.

Speaker 1 (01:35:23):
I'm gonna get this higher, Leo.
No, no, you're close, but noClose close.
We don't have any, I guess.

Speaker 2 (01:35:31):
So we've been trying to get this roof permit.
They had a city with areoccurrence inspection.
One of the things that came upwas an open roof permit.
So we were working diligentlyto get this closed.
We couldn't get it closed bythe closing date.
So the other side we decidedwe're gonna escrow money and
take and get through it.
And the other side sent mepaperwork and in it it said if

(01:35:51):
we couldn't get the permitclosed within 14 days or
something like that, I saidthere's no way I'm signing that.
I'm dependent upon the city.
So I said we gotta use diligenteffort.
It's what I'm taking us 45 daysto get the stupid permit.
That was all done.
Everything was done perfectly.
We had pictures of everything.
The roof had to get put onbecause they missed four
inspections in a row and therewas a hurricane coming.

(01:36:13):
So we had to close the roof upand so it was really the city's
fault, right?
But being aware again, miamiSprings keep guessing.

Speaker 1 (01:36:22):
You're close.
The first word is right.
I'm thinking more lush, Morelush.
Yeah, that's right.

Speaker 2 (01:36:30):
And so, 100%, when you're doing this stuff, you
need to take and make sure whatkind of exposure you have.
But using escrow as a tool,it's one of the tools that new
agents don't know about Usingescrow at the end to make sure
you get through the closing A itgets you paid not a bad thing.
And B it gets everybody wherethey're supposed to be.

(01:36:51):
The buyer is now in the house.
The seller is now out of thehouse.
The seller is still financiallyresponsible to fix the thing,
otherwise they're gonna lose abunch of money that the buyer's
gonna want to make money on.
You know it's cost $1,000 tofix it.
You got 2,500 in escrow.
Believe me, the seller wants toget it done and if not, the
buyer's not so upset.
He just got 2,500.
He made 1,500 bucks for doingnothing.
So just using that as a tool,100% helpful.

(01:37:13):
Oh, we're coming up on a bigone man, number 12.

Speaker 1 (01:37:17):
Oh, property inspection and right to cancel.
I mean, it's a big one, but atthe end of the day, you got a
certain amount of time toinspect the property.
If you don't, and now if youleave it empty, they give you 15
days.
I like to put I mentioned thatearlier.
I like to put the amount ofdays.
So if it's a Monday, I like togive them to the end of Sunday.
You know, maybe Monday I don't.

(01:37:38):
I try.
If I'm on the seller side, Itry to.
I'm on the buyer side, I try toget as much time as possible.
If you leave it blank there,it's an easy way.
You know, once you startwriting stuff, you start
bringing attention to it.
If you leave it blank, it givesyou 15 days, you know.
And that, by the way, that'sanother trick that I'm doing.
Yeah, there's a lot of timesthat this contract just falls
back into a certain amount oftime.
I think financing has.

(01:37:58):
It gives you 30 days orsomething like that.
If you don't fill it out, itgives you 30 days to give a
financing contingency.
The deposit sorry, the, I saiddoes it deposit to it too?

Speaker 2 (01:38:08):
There's well, there's an option Three days, if, if,
if, if, if, if, if, left blank.

Speaker 1 (01:38:11):
Yeah, yeah, if left blank, three days are effect.
So if you leave a lot of stuffempty, it kind of falls back on
on the, on the templateInspection period.
That's one way to do it.
Just leave it alone.
If you start writing stuff, youstart bringing attention to it
and again, guys always, alwaysoperate in the, in the
understanding that the otherside's not always going to know
what the hell they're doing.
So try to try to use theselittle tricks.

(01:38:34):
If you know and I see this alot I'm like they're asking for
15 days and they put 15 daysinstead of just leaving a blank.
And then all of a sudden I ohlike, oh shit, I forgot about
that, not giving them 15, youknow, so you don't just again,
that's, that's the little tricksabout just learning the
contract, just play around withit 100%.

Speaker 2 (01:38:50):
I'm going to take it, I'm going to, I'm going to, I'm
going to out one of the biglines, which is online.
I think it's 251 is what itlooks like to me.
If buyer determines and buyersold discretion that the
property is not accepted with abuyer, the buyer may terminate
the contract by deliveringwritten notice.
This means the buyer can getout for any reason If the wind
blows too hard while they're outthere, if it's Tuesday,

(01:39:13):
whatever it is, and so, while itdoesn't seem like it's that big
a deal, I have again dirtytricks that Josh has played.
Because agents don't know thecontract, they call me up and
they say, hey, my buyer iscanceling because of the
inspection report.
Whoa, whoa, whoa.
You got to send me a copy ofthe.
You got to give me a chance tofix it.
You know what they do.
They send me the inspectionreport, they give me a chance to
fix it.
They want them closing on theproperty.
I wasn't doing any of thoseright, because they don't know

(01:39:35):
that their contract says, hey,they can get out for any reason
at any time.
So, guys, know what your rightsare with your, with your, your
agreement.
I mean, I know it's a bit of adirty trick For me.
I never write a number in hereunless my number is going to be
lower than the 15.
I want to call usually for me.
I usually do seven.
I want I want my number to belower than the other guys
because I want to give my offerthe best opportunity.

(01:39:56):
That's the seven days that thatI have.
That the seller really istwisting in the wind.
They really don't know if theyhave a deal because I can get
out, as I said, at my solediscretion.
So I want to minimize that timefor the seller if I can,
because I know that I'm asking alot.

Speaker 1 (01:40:10):
And if you're on the buyer side, you know it's all
how you explain it.
So, listen, you're going to putin this offer, we're going to
feel it out, we're going to seewhat number we're, we're, we're
coming in at.
You're not obligated tocontinue on with the contract
until somebody accepts it, untilall terms are accepted.
Once all terms are accepted,then you got 15 days, 10 days,
whatever, to inspect theproperty.
So you're going to go back andforth.

(01:40:31):
If terms are good, you're goingto continue forward.
Then you got 10 or 15 days tosee if there's anything wrong
with the property and then, andonly then, are we going to make
really the decision to moveforward.
So it's kind of like a way toyou know that's.
Most people don't buy becausethey're scared of the process.
So if you explain the processto them and I like to tell my
buyers hey, listen, you're safe,safe.

(01:40:53):
I could get you out ofeverything until this date,
right?
Yep, you got about like, forgetabout the day we signed the
contract.
After that we got X amount ofdays where you are safe.
I'm going to get you out ofthis, no matter what your
deposit's back, you're safe, etcetera, et cetera.
After this, now, I guess, alittle bit more complicated.
Can I get your deposit back ifyou screw up?

Speaker 2 (01:41:13):
Maybe yeah maybe it goes through, probably half.

Speaker 1 (01:41:15):
Yeah, ok, but you know, and explaining the process
and inspection period is onethat I like to use as a listen
this is almost like a thinkingabout it a little bit longer
period, ok.
So you know, people don't wantto be forced into stuff, they
don't want to be obligated, theydon't want to feel trapped the
second they feel trapped.
They try to figure a way out,you know.
But now I tell them also hey,after that it's financing, and

(01:41:37):
after financing you're closing.
Yep, you're done, you'reclosing and you're not, and
you're not a reviver of dirt toyour deposit.
But again, it's not a surprise.
So I've had issues with aclient call me listen, man, I
can't close.
You know you're going to lose,I know I'm losing it, I know I
screwed up, I know this and thatyou know it is what it is.
But you know, sometimes thingspop up and you know, and they
don't want to close, but andeven then I still get them half

(01:41:58):
for the deposit back.
But you know, it's understandthat there's flexibility to this
if you play it right.

Speaker 2 (01:42:04):
You call back to mind a story that was just brutal.
When it happened I had a PTSD.
Oh my goodness.
Yeah, I definitely I had a.
And there's an agent that Iwork with that I usually refer
my buyers to because I don'thave time to show him.
So, even working with thesefolks good customer mind for
years and they find he, thehusband, is like super active in

(01:42:25):
the whole thing and they find ahouse, Everything's good.
They put the offer in.
I think it's that house is likea 280.
They do the appraisal.
It comes in at 2 95.
Things are great.
Right the day before closingthe guy's wife says I don't like
the house, I'm not going tosign.

Speaker 1 (01:42:42):
Hmm.

Speaker 2 (01:42:44):
So the agent calls me up and he's freaking it because
he really needed the commissionon this one, and so I call her
up.
I spent an hour and a half onthe phone with her.
Can't get it assigned Titlecompany.
They get on the phone with her.
Spend an hour on the phone withher.
She's not going to do it.
The guy had a $12,000 depositthat he lost.
It is the only deposit in mylife I've never, they're still

(01:43:07):
married.
I, you know, I'm guessingthere's probably another more to
the story.
Yeah, and dealing with the dealkills.
I'm writing it.
I don't even know how you dealwith it, other than to sit there
and be like so you both likethe house, right, like you both
like the house, you sure youboth like the house?
Yeah, you know, like there'ssome deals that you're going to
lose, that there's just reallynothing you could have done, but
it is what it is.

(01:43:27):
One of the big things with theas is contract, that is that big
difference between it and theregular, the far bar contract,
is the fact that the seller isnot responsible to close open
permits.
They have no responsibility todo that other than to provide
assistance to the buyer, andthat's actually in section C of
the inspection period.
In the far bar contract there'sa certain dollar amount the
seller is responsible for totake and close out permits.

(01:43:51):
So when you see the languagebecause I get offers all the
time we're in the additionalterms it says the seller, the
buyer, will, um, the seller willclose out all permits, I
understand they're making amaterial change.
This, and it's a big deal.
If there are open permits, thatcan be very costly, and so if
you just brush over that withyour customer, you have to sit
there and say to them hey guys,you don't have any open permits

(01:44:12):
to you, yeah, and so yeah,that's what else let's see.

Speaker 1 (01:44:17):
Um, let's use the stuff that we're going to mean
as far as escrow agent.
I'm not really worried aboutthat.
I mean it is.
It is what it is.
You're going to hold an escrow,you're going to hold the
property in a certain eithercompany has an escrow or the
attorney has an escrow default.
It's really going to spell out,um, you know how the default is
going to be handled.
At the end of the day, what youneed to know about default is
that if you're at fault, whatyou're going to lose is the

(01:44:40):
deposit.
Right, that's basically it.
That's, that's the remedy forfor that.

Speaker 2 (01:44:45):
Um 14 is actually just a good one to know.
Basically, it removes liabilityfrom an agent as long as the
agent is telling the truth andreasonably could believe what
they're reasonably believes whatthey're saying.
So you want to know what theheck you're talking about and if
you don't know, refer to aprofessional.

Speaker 1 (01:45:01):
Yeah, and, and I tell my agents all the time they
come in scared because they getthreatened by some agent or
anything, did you do?
Did you do anything wrong onpurpose?
Yeah, did you?
You know were you at, were you,were you malicious, malicious,
then, then, then it is what itis.
I mean, if I had a, I've had apenny for each threat that I got
from from a, from anotherrealtor man I I I oh my gosh yes
.
No, they're, they're, they'rethey're.

Speaker 2 (01:45:23):
They're a nasty lot.

Speaker 1 (01:45:24):
Retired on an island somewhere, um force major.
We already pretty much talkedabout that right, absolutely.

Speaker 2 (01:45:31):
Um, and I mean, a survey is just simply a drawing
of the property.
That that spells it.
So you could run into issues.

Speaker 1 (01:45:36):
The nitty gritty shit on this contract is really on.
First, the first few pages.
First few pages, the rest ofthe stuff.
I'm trying to think, trying tofind something that sticks out.

Speaker 2 (01:45:43):
Well, no, you don't really get into trouble again.

Speaker 1 (01:45:46):
The addendums um 19 were just picking the addendums
you got to.
You got to know what addendumsto use.
You got to make sure.

Speaker 2 (01:45:52):
Absolutely.
You know, and the the 100%thing that I always recommend is
if there's an addendum for it,don't try to write it yourself.
Use the freaking addendum, thesection down here I don't know
if you see section 20, if youturn the paper the other way, it
looks like bars, like a prisoncell, because if you're going to
take and get yourself introuble with the law, section 20

(01:46:14):
is where it's going to happen.
Yeah, let me see if I canexplain how this works.
Let's say you write an addendumin here, you write something to
the contract and you do a greatjob.
I mean it's amazing, it'sbeautiful.
And, of course, what's going tohappen is there's going to be a
dispute and you're going towind up either having to take
and do a mediation, but you'regoing to have to do a deposition

(01:46:37):
at some point over this, and sothe attorney is going to get
you over there and he's going tosay did you write these
additional terms?
And you're going to be like,yes, I did, and I did a great
job.
And the attorney is going tosay you know what this is
amazing.
When I read this, I wept.
It was so good.
I knew I was going to kick herout of the house.
It was, it was so good, I wasmoved.
Let me just ask you one quickquestion when did you go to law

(01:46:59):
school?
And in the background you heara toilet flush because you just
grabbed your pants.
When we write in a contract, weare technically practicing law
According to the way Floridadefines it.
We're practicing law.
Now.
As realtors, we're alwaysrubbing up against that right.
When we're filling out blanksand contracts like this, we're
doing what is within the scopeof our contract.

(01:47:21):
We are allowed to fill out aform, which is basically what
we're doing when we're creatinglanguage that supersedes that
doesn't supersede it.
It goes outside of the scope ofwhat our license allows us to
do and it breaks into what istechnically in Florida called
practicing law.

Speaker 1 (01:47:37):
And pretty much everything you could have
possibly thought of, that thatthat could be happening.
There's an addendum for and theFlorida bar, I mean sorry, the,
the, the Florida association ofrealtor, is pretty good, like,
I mean, we had this coronavirusand there was a coronavirus
addendum in a couple of days,you know what I mean.
So they're pretty much on top ofit.
Yeah, once you start writingstuff, you're just putting

(01:47:58):
yourself out there and I getthat a lot here.
You know, again, I'm here inMiami and I got attorneys from
every damn country in the in theworld thinking they're
attorneys here.
And I also get you know I havea lot of realtors that are very
meticulous.
So now they're a roofer, nowthey're an inspector, now
they're a.
You know, I had one realtor inparticular.
I'm like dude, why are you evenin a roof and why are you in a

(01:48:22):
roof inspection?
Why are you writing stuff on aroof about a roof inspection?
Why are you trying to tell thetitle company what to do?
Why pick the right titlecompany, pick the right roofer,
pick the right inspector, pickthe right mortgage broker and
you're fine.
You are a facilitator.
I tell my clients all the timelisten, this is you know what.
You know what I do here.
I'm here to make this as smoothas possible.

(01:48:44):
I'm here to make sure there'sno surprises.
I'm here to orchestrate all ofthese other professionals.

Speaker 2 (01:48:48):
The movie paces Absolutely.

Speaker 1 (01:48:50):
I'm going to ask the mortgage broker exactly how I
want things done.
I'm going to ask the roofer andnow I've gone through and I've
picked the right ones andthey're going to all do it and
I'm going to get thisinformation, I'm going to
translate it to you and we'regoing to have a smooth
transaction with no surprises.
But I'm not a roofer.
I'm not, I'm not and I don'twant to be a roofer.
I'm in real estate.
I'm not going to.

(01:49:11):
If a roof inspection comes in,I'm not going to start
explaining either.
I had one realtor starting itup because the trust is and
because they have this much, andI'm like what are you doing?
What are you doing?
Why are you getting yourselfeaten more?
Now, all of a sudden, yourfingerprints are all over
everything, your email, sendingthat note, because the roofer
should have done this and theroofer should have done that.
That's exactly what you don'twant to do, guys.
Stick to your realm, into whatyou do for a living.

(01:49:34):
Stay in your lane, stay in yourlane.
Yeah, kind of like 100% right,if there's.
If there's, if there's anaddendum for it, you do it.
If you have to start writingstuff, no, I'm not saying don't
write stuff, because sometimesyou just have to, but try not to
Try to avoid it, man 100%.

Speaker 2 (01:49:50):
I mean even like when you have to do an extension of
the contract or something likethat.
You want to take and keep yourlanguage as short and to the
point Fire seller agree toextend the contract.
Closing day two Closing day two, that's it.
Done.

Speaker 1 (01:50:00):
Don't start getting fancy and I see all these
realtors trying to get the fancylanguage and this and that.

Speaker 2 (01:50:05):
I try to write it.

Speaker 1 (01:50:07):
I try to write it as elementary as possible.
I don't want any confusion.

Speaker 2 (01:50:13):
The more experience you have, the less like bullshit
you want, the less respect youhave for humankind's ability not
to misconstrue it.
Yeah.

Speaker 1 (01:50:22):
Just hey, buyer and seller want to do this, that's
it.
So what do I?
You just buyer and seller wantto do this, but you don't have
to know.
Just buyer and seller want todo this, that's it.

Speaker 2 (01:50:30):
They all agree to this.

Speaker 1 (01:50:31):
They agree to this One of the other language,
English.
No, no, fancy English, you know.

Speaker 2 (01:50:36):
Okay.
So there's one other one I'mgoing to take, and it's kind of
the dirty little secret of thecontract that nobody talks about
, which is at the bottom of page11, there's a counter offering
rejection section of thecontract right underneath the
additional terms.
Oh, is the counter offeringrejection?

Speaker 1 (01:50:49):
Yeah, you're right.

Speaker 2 (01:50:50):
If you are the buyer's agent and you fear that
your offer was not presented tothe other side, you can actually
and your your code of ethicsrequires the seller's agent to
do this ask them to get thismarked and send it back to you,
signed by the other side,letting them know they saw it
and they're rejecting it orthey're countering it.

Speaker 1 (01:51:12):
Yeah, You're basically saying listen, if
you're going to bullshit me, Iwant it at least to be in
writing.

Speaker 2 (01:51:15):
Yeah, I'm just saying it's a favor of putting it in
writing.

Speaker 1 (01:51:18):
Yeah, and, by the way , property disclosures.
One addendum, that, listen,every addendum has a reason, and
I'm not saying to eliminatethem, but if I had to pick one
addendum or one document that'sin addition to this contract, is
the property disclosurestatement that the seller has to
fill out.
Sure, you know, it goes back tothat paragraph that you
mentioned.
I forgot which one it was.
It says hey, listen, as long asyou're not doing anything on

(01:51:39):
purpose, as long as you're notbeing malicious, as long as
you're doing to the best.
And the actual document I justsaid right now Sales disclosure,
the sales disclosure statement.
It literally says to the bestof your abilities, to the best
of your knowledge, to the best.
So you are.
Yeah.
So you're telling the sellerhey, seller, fill this out to.

(01:51:59):
You're not a roofer, you're notan inspector, you're not
anything.
Fill this out as best as youknow how, okay.
And you, as a realtor, aresaying seller, you feel that I
was the best, okay, hey, hey,buyer, this is to the best of
their abilities.
And now you're, are you givingthat document?
There?
You're excluding yourself.
This is a communication.
Hey, this is all I know.
This is all you know, this isall I know you sure that's it.

(01:52:21):
How about this?
No, that's it, I don't knowanything of that.
Okay, you're good, everybody'sgood, right?

Speaker 2 (01:52:25):
Okay, that's basically what you're saying
100% with the seller'sdisclosure I there's two things
I say about the seller'sdisclosure.
One handle it like a murderweapon in a homicide with rubber
glove.
You don't want yourfingerprints on that anywhere,
right, and then you don't.
You need to be acting as acourier where that's concerned.
You take it from one party andyou hand it to the other party.

Speaker 1 (01:52:44):
Let me add more to let me.
Let me, because I know what youmeant.
Okay, with the gloves, youdon't fill that shit out for
them.

Speaker 2 (01:52:50):
No way.

Speaker 1 (01:52:51):
Your handwriting is not on there.

Speaker 2 (01:52:52):
No way.

Speaker 1 (01:52:54):
Okay, you're going to wear gloves.
In today's world, wear gloves,a mask, sunglasses and that new
protector thing that I seethat's like a welder's mask and
at least one wrap of saran wraparound your entire body.

Speaker 2 (01:53:04):
All right.

Speaker 1 (01:53:04):
You, you, well, you don't, and everything is fine as
long as everything is fine whenthe shit hits the fan and all
of a sudden, it's yourhandwriting on the property
disclosure statement saying thatthere was nothing wrong with
the wall that just fell andkilled the kid.

Speaker 2 (01:53:20):
Right, cause this, and the seller's going to say,
oh, but I told the agent that.
And now, what do you do?
Oh, what, it's theirhandwriting on the seller's
disclosure.
Here's the thing If ourresponse, their responsibility,
is to disclose ourresponsibilities, to disclose
what they disclose to us.
So almost the out of the way,though, and so the best thing
for us is, if they disclose tous in the standard, the form of

(01:53:41):
a form, and we take and handthat form to the other side, we
have literally given the otherside 100% of everything they've
disclosed to us, because here'severything they've disclosed to
us.

Speaker 1 (01:53:51):
Right.
So look like, for example um,you know, there's the, the, uh,
the, the, the, the, the, 1978,and there's this and there's
that, there's the.
All those addendums, right Okay, all those addendums are good,
and I'm not.
I'm not saying don't use them,but I'm just saying, if you
forget all of them but you havethe property disclosure
statement, you're good, Okay,because that's the one that

(01:54:12):
really like, that's like the.
How many pages is that?
Like five pages.

Speaker 2 (01:54:17):
I haven't seen a property that's like five, six,
five, six pages, right, it justsays every single thing, every
single thing.

Speaker 1 (01:54:23):
Is this wrong with the property?
Is that wrong?
Do you know of this?
Do you know of that?
So, yeah, I highly recommendthat every contract, if you're,
if you're on the seller side,you're you're disclosing On the
buyer side, you're requestingthe property disclosure
statement, you always want tosee that.
You always, always, always wantto see it.
You want to cover your ass,guys, listen, there's one thing
that I'm proud of and I and Itell everybody that I'm trying

(01:54:44):
to recruit into the company.
I'm like man.
If there's anything I'm proudof is that I have no fret
complaints.
I have not.
I mean, my company is clean andit's not a coincidence.
You don't just wake up and belike, all right, I got 20 years
of just cleanliness, of noissues, of no anything.
You know, do I have issues withother realtors?
Absolutely.
Do I have issues with realtorsthat try not to pay one of my
agents?
Absolutely, but I get them paid.

(01:55:06):
So I'm always in something, butit's not with a client and it's
not within it.
It's usually realtor to realtor.
You know.
So, if you want, and what onlything that really matters in
this business is just notaffecting clients.
You know we could fight witheach other realtors to realtors
and commissions and this andthat and lawsuits flying
everywhere and arbitrations andmediation but you don't want to
lose a client's deposit, youdon't want to have an issue with
it, with a, with a condition ofa property, and if you do

(01:55:27):
things right and if you coveryourself and if you fill this
contract out correctly and ifyou educate yourself correctly
and if you add the addendumscorrectly, and the shit hits the
fan.
Because if you're in thisbusiness long enough, it's going
to hit the fan.
Now you're either going to bethe one that's like let them try
to find something you know andthey're not going to cause.
I am covered, I covered mybuyer, I covered my seller,

(01:55:48):
whatever it's, it becomes apleasant situation.

Speaker 2 (01:55:51):
Absolutely.
There's one last thing and Iwant to hit on it because it's
it's not normally a deal thecommission section down here who
the cooperating agent is andall that kind of stuff.
If the property is listed inthe MLS, you theoretically don't
have to fill that section.
I like to still write it downanyway.
I hear you, and the other thingthat I like to do is to take
and get a copy of the MLSprintout that shows the

(01:56:12):
commission amount on there.
That's a great little advice,right there.
Because what's to stop them fromgoing there and changing?

Speaker 1 (01:56:16):
And I'm all about.
Oh, let me.
Well, let me tell you something.
I've had it happen and there'sa record of it and you ask the
association and they go back andthey get it and they have to
dig it out, for you.

Speaker 2 (01:56:23):
They have to dig it out for you and they get it.

Speaker 1 (01:56:24):
But yeah, you're a hundred percent right.

Speaker 2 (01:56:26):
And as if I put that if I put that in there, they
know that now I have thedocumentation.
Make sure we understand thatOkay.

Speaker 1 (01:56:31):
So what I've had happen a lot of times is that
you get to closing and then allof a sudden they're getting
they're getting paid three and ahalf percent and my agent
getting paid two and a halfpercent, and then you're like
wait a second, I don't rememberthat.
Then you go to the MLS andthere were at least smart enough
to change it on the MLS, butthey were stupid enough to do it
because then I go to the MLSand I and the MLS has a track
record of everything, of, of ofwhat any changes were made, and

(01:56:54):
then you compare it with the dayit went into contract and then
they got into pain.
Yeah, but instead of having togo through that, you avoid it.
If you're making it very clearfrom the beginning, you either
write it down or yeah, I meanprint out the MLS.
Well, you have them actuallyinitial it make it part of the
contract.

Speaker 2 (01:57:08):
I just look as long as it's, it's almost in the
email.
I can always go back.
Hey, here's the email I sentwhere I sent the offer.
That's right.
Here's the MLS printout, Greattip.
Now here's the other thing.
While it's not critical thatyou have that written in for the
buyer side, if you're dealingwith a fizzbo, if you're dealing
with any prep that's not on theMLS you must.

Speaker 1 (01:57:26):
Why did they erase that?
Though they're sure in shitthat they do to the contract,
that I don't, I don't get it.
Why would they erase thatsection where you actually write
the commission?
They used to have it before youknow, I don't again.

Speaker 2 (01:57:36):
You get the Florida bar and the possibly P, though
you get the Florida bar and theFlorida association of realtors
together.
God only knows what they weredrinking or smoking.
Who knows?
All I know is, this is whatthey've given us and this is how
we work with it.

Speaker 1 (01:57:47):
It's just just trying to think of a logical reason.

Speaker 2 (01:57:49):
Oh, one more thing, if you don't mind, and not about
the contract, but just a freeopportunity for anybody that is
listening.
On the 26th I think I told youearlier I'm doing a free class
on the results of COVID, on.

Speaker 1 (01:58:00):
That's right.
Yeah, super class yeah.

Speaker 2 (01:58:02):
For the board of realtors from Miami.
It's free.
You guys can just go on there.
It's on zoom.
It's going to be a zoom meeting.
The 29th 26, the 21 o'clock.

Speaker 1 (01:58:10):
How do they find it?

Speaker 2 (01:58:11):
Go to Miami RE their website and it's one of the
classes that's listed there.
It's the 26th of May, it'sabout an hour and a half and
it's a bit different than I tryto make my classes interactive
as possible.
I spend a lot of time usuallytelling people what I see in the
market and in this one I try toget.
I try to ask more questions andget them to tell me what they

(01:58:32):
see going on in the market andshow them how a great real
estate conversation is builtabout what now is a current
event COVID but tomorrow couldbe interest rates or whatever
else, so that you're not justhaving the cookie cutter
conversation.

Speaker 1 (01:58:43):
It's kind of funny, because COVID has to do with
interest rates too, becausethey've dropped 100% 100%.

Speaker 2 (01:58:48):
It's crazy.

Speaker 1 (01:58:49):
So, all right, man, so we're going to be.
Another thing is we're going tobe having in the next couple of
weeks, let's say that we'regoing to be having a zoom.
That's going to be a realdetailed where.
It's going to be Richard, youand myself.
It's actually going to be youand we're going to be chiming in
.
You're the actual teacher.
You know what I mean.
So, but I'm going to bebringing in my experience,
richard, which has been ourattorney for 15 plus years now

(01:59:14):
he's going to be giving hispoint of view.
You know, we want the enemy'spoint of view.
So those attorneys and yeah, soit'll be a really cool zoom
class.
We're going to be announcing itsoon and again, but I think
today was a real comprehensive.
Look.
I know for a fact that we threwsome real important stuff there
.
Sure that, if I would haveknown first year of my business.

(01:59:34):
And again, well, actually I did.
I did that contract class, likeI mentioned, with Neil Littman.
I'm actually going to send thispodcast to him.
But listen, guys, classes likethis are they just change your
career.
There's a couple of tips hereand a couple of tips there.
That'll really, you know, I'mnot saying that this is going to
change your life or anything,but I am saying that there's a
couple of the tips here that ifyou follow, it's going to make a
big difference in your career.

(01:59:54):
So we'll be having a lot moreof these and, all right, you
know a lot more about thecontract.
Thank you, guys.
Kind of like anything else.

Speaker 2 (02:00:01):
No, I think that the only difference between this and
what we're going to do for fourhours is going to be.
We're going to really kind ofgo line by line and explain what
the different things are.

Speaker 1 (02:00:10):
I don't think we can do it in four hours.
We've been two hours of thisand we're skimming.

Speaker 2 (02:00:13):
Or skimming.
I understand we're skimming,but I mean a lot of the sessions
.
You think you can do it in fourhours.
I know I can do it in three, soI can do it in three.
The four hour, the fourth hour,is really more of tips on how
to get it signed, tips on how tofill it.
We kind of did some of thattoday.
I mean, like for me there'sthere's one addendum that I use
for condos, that if the if it'sleft blank, the seller is
responsible for to pay all theclosing, all the special

(02:00:35):
assessments at closing.
So I'll take an, I'll mark thatthe buyer's response for all
the special assessments in thisand then I'll use that addendum
and leave it blank, and I useambiguity it's blank.
If it's left blank and theother side misses it, their
seller has to come to closingand pay the full special
assessment.
Sometimes it's 18, 20, $30,000.
Man, the seller, the other side, is so upset when that happens.

(02:00:57):
And hey, here's the paperwork.

Speaker 1 (02:01:01):
Your real estate professional should have found a
better real estate professionaland guys, that's what this
business is all about.
Not not doing it, cause youjust listen, man, you're going
for your side, that's it.
If you're protecting your,you're protecting your client.
You know.
You want to be fair, you wantto use the agreements.
That's fair to everybody else.
But guess what they have toread.
We're not babysitters, we'renot, we're not in.
I had a situation with arealtor that they all know.
It was something about a, itwas something about an

(02:01:23):
assessment, something about it,and they were pissed off at my
realtor because the clientsigned it.
He's like no, you made.
The guy literally said they'reall.
The realtor said you made myclient.
He was my seller.
My realtor was on the sellerside and the realtor said you
made my client sign this.
I'm like dude.
So he's coming to me.
My realtor's telling me dude.
He's telling me.
I'm like how the fuck are you?
How did?

Speaker 2 (02:01:42):
how did you take a gun?

Speaker 1 (02:01:44):
I mean no, but he, you, you, you haven't even
talked to his buyer.
Yeah, I had to go through him.
I mean, that's the stuff thatwe see in this business.
So you know, get know the stuff.
This is a great intro.
I think the class that we'regoing to do is going to go way
more in depth.
Then you're going to have toread it 20 times, Then you're
going to have to practice it,Then you're going to have to
study it.

(02:02:04):
But this could be a your gun orit could be somebody else's gun
.

Speaker 2 (02:02:08):
Yeah, I think, I think, really it's.
It's about removing the mysteryfor an agent because the
reality of it, most agents won'tread all 12 pages.
It's look, it's not easy to getthrough.
But here's the thing I wasalways terrified when I was new
that somebody's going to ask meabout something on page nine.
I, I, I know page nine is therebecause I make them initial it,
but other than that I reallyhaven't spent a lot of time.
Me and page nine are notexactly buddies.

(02:02:28):
And so after the class, afterthe, after the, the longer class
, you've literally gone througheach thing.
And so somebody asked you aboutit what's rate on gas?
Okay, well, rate on gas is, andyou can at least have the
conversation.
And again, it removes, it,allows you to be a much more
confident agent, and that'sreally what I always shoot for
is for agents to have confidencein what they're saying.

Speaker 1 (02:02:47):
And, by the way, you could be the agent with six
months experience that has gonethrough this over and over again
, that has sat down with youroffice manager and says, hey,
what are the most commonmistakes?
That you've listened to apodcast like this and you've
really gotten these tips.
Time in the business.
I get this all the time.
I get.
Agents come in here and they goI want X split because I've
been in the business three years.
Okay, well, what have you donein three years?

(02:03:07):
Well, I don't care how longyou've had your license.
You know what I'm saying.
It's, it's, it's, it's how many.
It's like a pilot's license,right?
So I'm a pilot.
It doesn't matter how long I'vebeen a pilot, how many hours I
have.
So, I have 500 hours, right,semi experience pilot.
There's guys that have 10,000hours.
They might they might be apilot half of the time that I am

(02:03:29):
and they have 10,000 hours ofexperience.
They've been through morestorms, they've been through
worse weather, they've, you know, they've traveled to crazy
places where the GPS doesn'twork and that that's what it is.
So you know it's.
It's it's really understanding.
It's how quickly can you rackup this information?
Does it matter if I'm flying,if I'm flying?
No, I could have been with aflight instructor and be like

(02:03:49):
hey, where are you going?
You're going to South America.
I want to go with you.
I'll be your assistant for free, yeah, and I'm flying there and
I'm following the charts andI'm doing everything.
So you could rack up a year.
In a year you could rack up 10years of experience if you
really wanted to.

Speaker 2 (02:04:01):
My father used to say all the time when, when
something would go really right,like you know all the pieces of
, he'd be like 30 years ofexperience.
And then somebody else wouldtry to say the same thing and
he's be like no, you have oneyear of experience, 30 times
over.
You keep doing the same dumbstuff he's been doing for the
last 30 years.

Speaker 1 (02:04:15):
And that's it, man.
If you get this, you couldbecome in one year like for real
learning.
Ask every agent hey, tell meabout the contractor, what
mistakes have you made?
What should I make?
And go through it and gothrough it and ask and ask
questions and go through it.
Be a come a student of the game.
If you become a student of thegame again in one year you could
become somebody that you'llnever have an issue with the

(02:04:35):
contract ever.
You'll never miss an addendum.
You'll never miss a date.
Somebody tries to get cute andchange something.
Cadillac tries to do that trickwith the, with the, with the
assessments and everything.
Like you're going to catch andbe like absolutely not.
I mean, you're going to have,you're going to have.
Listen, I had a.
I had a contract that came inwhere I was on the seller side
and the agent I could tell wasbrand new, filled out the

(02:04:56):
contract horribly and where sheput, instead of putting the, the
down payment, where she put thedown payment money, she put it
as deposit.
So she put like $60,000 depositon like $200,000 townhouse or
something like that.
I could have been a real bad guythere.
I could have been a real badguy there and I could have
really.
I called her and I go listen, Idon't no, no, no, yeah, I said

(02:05:19):
listen.
I don't want you to come to mycompany because I don't want you
to think this is a recruitingcall.
Okay, I really want you to.
You know, maybe one dayremember me as the guy who did
everything possible to help youout.
I could really screw you rightnow.
Yep, okay, I think you lookreally bad right now.
I need you to whatever companyyou're with, on anyone, on who
they are.
I need you to get the fuck outof there now.
Find the company that's goingto train you, take this career,

(02:05:41):
because if, right now, if I wereto do this and you were to
screw up, you lost $60,000 ofyour client's deposit on a $200
and something $1,000 townhouse.
Okay, so take this serious, youknow?
And but hey guys, I'm a niceguy when it comes to brand new
agent, cause I'm dealing withthem on a regular basis.
There's bad guys out there,that'll.

Speaker 2 (02:05:58):
Oh, we're like whoa wait a second.
No, they don't close.

Speaker 1 (02:06:02):
I'm still getting paid my commission cause I'm
going to take this deposit, I'mgoing to pay the, I'm going to
pay myself the commission, I'mgoing to give the seller the
rest and we're going to get.
We're going to sell the houseagain.
I'm going to get paid twice onthe same house?

Speaker 2 (02:06:10):
No, 100%.
You want to take end,especially for people out there.
If you've been, if you've beenin the business a while, you
know you cut the new agentsslack just by the nature of the
business.
The way things are here, whereyou spend time with your agents,
is not how it is out there.
Yeah, and most agents reallythey're just thrown into the,
thrown to the wolves.
Maybe they get an MLS class andsmack in the backside and said
go get them and um, so I wouldnever.

(02:06:32):
I mean I would never if I knewit was a new agent, I would
never do anything.
That was I literally stopped.

Speaker 1 (02:06:37):
Okay, guys but I do remember being a new agent and
getting screwed over by the oldschool realtors and really
getting like man.
These guys are really rammingit up.

Speaker 2 (02:06:44):
You know it's it's, it's, it's tricky, it is, it is,
and so you know, I encourageyou agents to pay it forward.
Do the right thing, do the nicething.
Don't be bullies.
Don't be bullies, but at thesame time, if you're dealing
with, you know a professional onthe other side, represent your
side, always represent your side, your customers, who you're,
who you're looking out for yeah.

Speaker 1 (02:07:02):
All right, guys.
Thank you very much.
Anything else, we're good.
All right, thanks, guys.
Thanks.

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Unveiling the Mysteries of Real Estate Contracts: Tips, Traps, and Insights | RETalkPodcast | Episode 10

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.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}Unveiling the Mysteries of Real Estate Contracts: Tips, Traps, and Insights | RETalkPodcast | Episode 10