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Tired of all your offers being rejected by sellers?

Many real estate investors wrongly think that the best way to close deals is to lowball cash offers. Not only is this method ineffective at best, but dealing with nonstop rejections will sabotage your drive and make you want to quit.

In this episode, I want to share with you 17 different ways to make your offers so irresistible that sellers would have to be braindead to reject them.

Here Are The Show Highlights:

  • Neglect this and every deal you try to close will be harder than pulling teeth… (1:12)
  • The “L-word” that helps you get properties for $9,000 cheaper than your competitors (2:38)
  • The “RCD method” for getting a property for less than market value without forking over hundreds of thousands of your own dollars (4:44)
  • The most popular (and effective) way to buy a property (8:12)
  • Donald Trump’s surprising secret for becoming a wheeling and dealing real estate mogul (12:00)
  • You need to do this at least 7 times when you’re discussing business with a seller or you’ll be ghosted by them (14:11)

If you're a real estate investor who wants a better understanding of these 17 ways to make an offer, the most important thing you could do right now is watch the training we have available at http://socialmediablueprint.com/podcast.

Read Full Transcript

The big challenge is this: How are investors like us who are not backed by a billion hedge fund who are investing money from our own pockets? How do we buy, sell, and invest in the properties we believe in, yet still make a profit without risking all of our own money? That is the challenge. In this podcast, we'll give you the answers. My name is Nate Armstrong and welcome to the social media blueprint.

(00:25): Welcome back ladies and gentlemen to the SMB podcast. I've got my co host, mr Bianco Armstrong, and myself, Nate Armstrong. We are ready to start rocking this thing. We're gonna be talking today about the 17 different ways to buy houses so that you don't get rejected by sellers. Okay? We're going to be covering what you shouldn't be doing and what you shouldn't be doing. All right now inside this episode, okay, so let's get to it. So first and foremost, I'm going to be teaching the different techniques that we're using right now to buy properties. And yes, there are 17 there's actually more than 17

(00:58): One of my mentors described this as actually 61 different methods to buy and sell properties. We focus our members on 17 different ways so that it's within grasp. Okay, so we're going to be going through my favorite ones today. So first and foremost, whenever you structure something with a seller, you have to have the seller's best interest in mind. You have to have to have two because you've got to treat people how you would want to be treated. Now, one of my mentors said it to me like this. He said, if my mom was alone and I died and my mom was alone and she had to sell her property, how would I want someone to treat her at the negotiating table and he goes and meets every single seller with that same outcome. For me, I put it in context like if I died, how would I want someone to treat my wife?

(01:46): I'd want them to treat them good, fair, not take advantage of them. So that's the same thing we have to do with sellers. We have to treat them very fairly and come up with a win-win situation. Okay, next you have to listen more than you talk. You absolutely have to listen more than you talk. I got a property one time on Idaho Avenue in Saint Paul, Minnesota from a friend of mine. A real estate investor friend came to me week or so later and he said, Hey, congratulations on the property. And I'm like, what are you talking about? He's like the one in Idaho. I'm like, Oh, thanks. How'd you know about that one? He said, Oh, because the seller had your offer when I was there. And I noticed it was sitting there. And then when I called to follow up this other, I told me that she ended up choosing another company and I kind of figured it was you.

(02:33): And I'm like, Oh, interesting. And then we started going back and forth and we were kind of sparring on numbers and he's like, well, what'd you end up getting it for? And I told him, and he's like, what? My offer was nine grand higher than yours. I'm like, Oh, really? He's like, yeah, and I'm like, so what happened? He said, I don't know. When we started going back and forth on the details and what it turned out to be is that I listened more to the seller and I met the seller's perfect closing timeline. That was the one thing, so I just paid attention and I listened and that was the difference, so I got the property nine grand cheaper than he did with a different closing time frame. Unbelievable. You've got to listen more than you talk. Okay. Next we're going to go into the different purchasing structures.

(03:18): Now I'm going to give you my favorite ones. The ones that I'm using time and time again. Right now there's more versions like literally we could be talking about trusts and options and contract for deed and rent to own and subject to wrap mortgages. We could be talking about ways to prevent the do on sale clause from being triggered. We can go super deep, but I don't want to take you all the way down that rabbit hole right now. If you want help like deep down that rabbit hole, then what I want you to do is go and get with my team. My team will actually give you a 30 minute free consultation to walk you through the 17 different ways to buy houses. Like we can get pretty deep. We can help you understand this stuff. We're really, really good at it. Okay? I don't have infinite people on my team that can do that.

(03:59): I've only got two people that are qualified to have those conversations, but I'm happy to do it. And you might say, well, Nate, why would you give us a free call? Well, here's the thing. We really believe in adding value to people's lives. First. If you add value, then there's always a percentage of the people that wanna end up working with you. It's the same philosophy. We follow sellers, we add value to their life first, and then a certain percentage of them will want to do business with us. Okay? So if you want to take me up on that, then what you do is you go to social media blueprint.com/podcast social media blueprint.com/podcast what will pop up first is a one hour training that I put together that outlines everything that we're doing and then after that training you'll be able to actually book a call with my team.

(04:41): Okay, so let me give you my favorite three. The first one is the RCD. The elusive RCD stands for this repair, credit down payment deed transfer. Our CD, I like that name. Better works like this. Let me put it to you in true life story form, we got the seller that came to us from our marketing well. Seller wanted a retail price for his house, $610,000 we went through the seller net sheet, showed him that even if he sold it at six 10 with a realtor, he's not going to net out six 10 he ended up acknowledging it, so we went back and forth a little bit more and we figured out that five 50 was the real number. The problem is, is that five 50 cash on a deal, it's worth 610,000 there's not much room there. And for most, most wholesalers especially, they would have struck out on this deal.

(05:28): But I looked at the deal and I said, okay, I'll take it, I'll take it for five 50 but the thing is that I can't get you five 50 cash. If I'm going to do a cash price, it would have to be less cause I'm going to have to go borrow the money and I'm going to have to pay hard money costs, et cetera, et cetera. But I will agree to five 50 if you'll accept installment payments over the next 10 years. We went back and forth a little bit on that and he asks a lot of questions around it. I explained it to him and I said, so if we can do that and then it's a deal. And he came back and he's like, there's this one thing, and I'm like, what's the one thing? He said, well, I'm comfortable with everything except what if I get into this deal, and then you damage the house and then you walk away, and I said, okay, hasn't happened in the history of me doing these deals, but if it did, what would you feel comfortable with?

(06:13): He said, well, I want a down payment, and I said, okay, we don't typically do down payments, but what did you have in mind? He said, well, I want $50,000 down. And I said, okay, let's think about this. I said, you know, at the end of the day you want to see that I'm vested in this and I am because I'm going to be putting up some of my dollars to make this thing go through and close and make sure that everything is good, so I'm very vested. I said, but how about this? The real reason that the property hasn't sold yet is because it really needs a pool. How about you? Give me a little bit of time after closing and I'll make sure that there's a pool installed here. Would that suffice for you? We went back and forth a little bit. He said, yeah, yeah, that'll work.

(06:50): Okay. Pools, what? 30 grand, something like that, so he ended up saying yes to that and then I negotiated it so that we've got a two year window to install the pool. Okay, fantastic. That's the repair credit down payment. The other way to structure a repair credit is if, let's just say that the roof's bad, then I might volunteer to put on a new roof. Okay. It's some kind of improvement, credit down payments, but I'm not doing it up front right away. I don't want to have that burden on my shoulders at the rate of Gates and said I want to do it after I make some money off the house. Okay. The next one, the double D, this one's called the delayed down payment, the double D K the double D works like this. I was working with the South Minneapolis seller and the seller wanted some cash down.

(07:32): He was putting his mom in a nursing home and needed some of the cash and I didn't want to give cash up front because I wasn't going to make money off the house up front. I would only make money off the house when I sold it, so I said, listen, I get you some cash but you got to give me six months. He said, okay, let's do it. So we structured the deal, we closed on it, I start cleaning up the property, get it rehabbed, get it back out there for sale. I sell it before the six months even comes due and I ended up paying him the full dollar amount back. Boom, paid off the mortgage, paid him off. He was happy as a clam, but if I wouldn't have, then I would have had six months to pay the down payment that he was asking for.

(08:08): That's the double D. That's a beautiful thing right there too. Okay. The next one is called the SD. This is probably in Bianco. This is probably the one that's most common. Mom and dad, myself and your mom. We have done this one. The SD more than any other one. Okay. The SD is the one that sellers seem the most like acceptable too, so it's probably one of the ones that you're going to be able to get accepted the most based on my history at least, and what it stands for is the small down payment. Now keep in mind with all of these, I could go five different ways. I could go trust, I could go option, I can go contract for deed, I could go RTO, I could go subject to, I could do rap mortgage, like I can get super creative, but I'm not gonna bury you guys with all the technical details right now.

(08:51): Instead, what I want you to grasp from this is that you can be pretty creative with these things and then you take the scenario to your real estate attorney to drop in contract form. But I want you to be able to instill these beliefs inside your head that you don't just have to put out a low ball cash offer. That's not how you get a lot of deals done in real estate. That's how you get rejected a lot. Instead you get creative like I'm showing you right here in this. Okay, so the SD, small down payment. We got this house on Fern street in Medina, Minnesota, suburb of Minneapolis. We actually got a lot of properties out in the Medina area. We're in the Minneapolis area and this particular property, the sellers wanted retail price. They're really stuck on that. I got them down a little bit off retail, maybe five or 10% but they were really stuck on that.

(09:35): But what attracted me is that we could come in with a small down payment. It was right around 10 grand, maybe a little bit less than 10 grand. And yeah, that's a big chunk of money for some, but for this deal it just made sense. The rent on it, market rate rent was 1800 per month. Monthly expense that we would have to pay them was just under $1,200 per month. So there's like $600 cash flow per month. Look at this on your one. I'd be able to bring in at least $6,000 okay? So if I put down 10 grand and I bring back 6,000 in the same year, and actually it'd be a little bit more than that, it'd be like seven grand or whatever, but let's just say it's six grand. If I bring back six grand and I put down 10 that's a 60% cash on cash return.

(10:20): Insane. Okay? Additionally, what happened, we had this property for maybe a two, maybe a little bit more than a two year window. What happened is that we got this massive cashflow. We made back all of our money on just the rental cash for on it, but then the property value went up, went up pretty substantially, and then on the back end of it, we ended up selling it after our tenant moved out after a couple of years and we made more money. So it's insane when you start to get into these structures on some deals that other people may have walked away with. You can get into these things and make them work, make them work really, really well. Okay? Now, one mistake I made on that one is I should have done a rent to own, so I would have got a down payment from the end buyer, but that's okay.

(11:01): I still made money off of it. Okay. One other mistake that I made on one house have only happened to me once is that I took over the property subject to the seller's existing mortgage, meaning I literally just started making payments to the seller as the bank transferred the deed to my entity name and started making payments to the bank. Almost every other time in my life that I've done that, the bank has been totally fine with it. They just accept that they keep passing those checks, cash those checks, this darn bank cash three of my checks and then sends a notice saying we're calling the mortgage do meaning you got to pay the whole thing off. Otherwise we're going to foreclose. So it's the only one time after hundreds and hundreds of houses that have, I've done deals in that. I've had a lender call a no deal, but it is what it is.

(11:45): So what I had to do with that one is I had to fire sale it. Meaning I just quickly sold it. I didn't make as much off of it as I thought that I would, but I had to quickly sell it so that's life. Okay? Sometimes that happens. I made the mistake there, so I'm teaching it to you so that you don't have to make the mistake. Okay? Next you guys know the famous quote from our current Mr. Donald Trump. He said sometimes the best deals are the ones that you don't make. By the way, he made that quote when he was known as mr dealmaker, not as president, but as mr dealmaker and he said sometimes the best deals are the ones you don't make, which is true. It's totally true. Okay. Let's get to the third topic we're going to talk to. The third topic is that you have to detail out the process for the seller, meaning you have to lay it all out.

(12:28): So when I'm on the first call with a seller, I tell the seller, Hey, mr. Seller or mrs. Seller on this call, we're going to cover this, this and this. When I visit your house, we're going to do this, this and this, and when. If we come to an agreement and if we do, we do. If we don't, we don't. That's okay. Then we're going to do this, this and this. So I lay it out the whole thing. So literally like when I'm on that first calling, I say, Hey, we're going to go through some of the numbers together, but most importantly on this first call, it's for me to get to understand the situation so I can try to help you. And then additionally, I want to know the details about the property itself so that when I start doing my research night and I run my comps tonight, that I can get you a good, fair offer tomorrow when we meet up.

(13:10): Does that sound okay? Okay, great. Then when I get to their house, Hey, well I'm at the house now. First thing we're going to do is we're going to do a walkthrough together. I'm going to take lots of pictures so that I don't have to bother you later and I want to make sure I get good, good photos so that I can assess the renovation. I'm going to be assessed in the renovation as if we're improving the house to full market value because that's the number that we're going to talk about today is what full market value is minus the cost of repairs. So we're going to go through that together and then we'll do the numbers together. And then if you and I both decided that this makes sense, then we'll move forward and we'll do some kind of purchase agreement. If it doesn't, that's okay too.

(13:47): There's no pressure at all because if it doesn't work out that I might be able to refer you to somebody else. Okay. And then if we do decide to work together, then what happens next is that we send it over to the title company, they run a title search, they're going to ask for your lender payoff information, and then they're going to ask for your payment instructions and then we'd move to closing. That's kinda how the whole process works came in. I physically, when I talk to a seller, if I count the number of times that I lay out the whole process to them, it's probably seven or eight times over the course of a week or two that we're working together. I say it on the phone multiple times. I say it in person multiple times. I paint the road. The reason that I do that is because sellers, if they're going to object to something, it's better for them to object while you're on the line with them or while you're in front of them.

(14:34): Then instead of while they're at home by themselves, because if they're at home by themselves and their object to something like, Oh, I don't like your title company, I'm not using them and they kill the whole deal. Sometimes they won't even call you and I used to wonder like sometimes why a deal fell apart. I know now that it's so important. One of my mentors taught me that you need to lay out the entire process for your seller. You have to, it's got to be clear in their mind. They got to feel good about it. That way there they trust you, they, and then, then when they see that it's happening, just like you said that it would, they trust you even more. They're gonna stick with you until the end. So that's what you gotta do. Okay. Lay out the whole process for them.

(15:12): Okay. We've covered a lot. I know this is like, it's a little bit like drinking from a fire hydrant if you've never heard of the 17 different ways to buy houses, but if you want help, you know how to find me. Okay? Social media blueprint.com/podcast you can watch the training that we've got there for you. You can jump on the line with my team, my team or I will help you. We'll walk you through the 17 different ways to buy houses so that you can grasp this stuff. Okay? But I want to recap something for you and I want to tell you what's coming up next. The next show that we're having. It's the surprising two things that sellers need to hear from you that makes deals happen like popcorn at a movie theater. Two things and you'd be surprised when you hear them, so you've got to hear the next episode.

(15:57): Okay, so what we've covered today is we covered that. You've got to have the seller's best interest in mind on every single meeting that you have with the seller. Think about them first. Okay, we've covered my favorite purchasing strategies, my favorite ones. Okay. Enhance. None of them are just making a low ball cash offer, none of them at all. We've also covered that you have to detail out the process for the seller, every single conversation. Lay it all out there so that they know when they understand it and then make sure that you tune in for next week

(16:26): When we talk about the two surprising things that sellers need to hear from you that makes these deals happen. Just like popcorn at a movie theater. All right, mr Bianco, anything else for today? Can I, well, I don't know if you heard it from mr Bianco. It's time for me to go play outside time for me to go be a good dad. Alright, bye guys.

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