Episode #25 – Christmas Present for Wholesalers
Today in this episode, I am going to give everyone that listens, a Christmas present and 13 states, what we’re going to do is I’m going to help everyone get a solid buyer.
To give you a little background on this buyer. They originally started. Some of them. Some of the owners, the founders were in the technology sector. And they decided they would sail, you know, their companies to Google, some started with Twitter, some started with Uber. So they, they decided they would create a fund, you know, out of this profit from selling their companies basically. And I’ve worked with a lot of funds over the years. This is by far the most organized fund in the world that I have encountered. And I don’t leave my market. So I can’t, I can’t speak for, you know, other markets, things like that. of an organized or a well run fund. And I can’t speak to that. I can only speak of my market. I can send a text to their acquisition manager in my market on the weekend, he replies. That night, he replies he’ll pick up the phone, he’ll call me ask me questions about my market. Will, you know what we’ve become friends, along with, you know, being able to do business, which is what I’ve told everyone to to do over these episodes, is to take care of your buyers, because they’re the ones that have the money that you’re trying that you’re trying to get the sellers, you need those. But this is a you have to relate to your buyers, it’s that that Win Friends and Influence People scenario. I know in my market two weeks ago, they called me and said, Hey, where are your houses. And I was just telling him, I said, I don’t have anything for you right now I’m buying I mean, I’m not selling right now. But they were basically trying to rub it in my rub it in my face, that they put 35 houses under contract in my little market that’s got less than a million people in the MSA. They don’t have any issues whatsoever working with the wholesalers. They’ll work with real estate agents. So if you’re an agent, that work that listens to this podcast, you know, feel free to take advantage of this. What I’m going to wind up doing, because I’ve spoken to him about it is I’m gonna kind of walk everyone in the door. You and I are going to do a deal together. First, this will be a joint JV upfront. I will try to manage these leads best that I possibly can from everyone. But I’m going to give you some criteria that they will buy and they will buy very fast. They send a renovation manager, project manager out to do the inspection. That’s the only time they look at it, they will make an offer on you know over the phone over email. What I’m going to have to rely on everyone to do is get your rehab estimate. Solid, if you send something that says this is a $20,000 renovation and it winds up $40,000. Your offer is going to change. If you sit there and send a house that you say is $100,000. But it’s really only $80,000 your offer is going to change. So this is where you need to really know what you’re doing. And that’s why I’m going to JV with every single person that sends it in.
Because in some ways you’re going to get some training. I’m going to help everybody. Mentor coach, whatever you want to call it on one day. When you get one deal correct and they close on it. Then I’m going to release the buyers contact information to you. You were from that point on going to contact them directly and leave me completely out of it. But this is a way of me kind of shielding them from a lot of jump leads that they have to go through. Because like I said, if they can buy 35 houses in one week in my little bitty market, they can buy a whole lot more in bigger markets. So right now they’re buying in 13 states, and I’ll give you those states that they’re buying in. There, they’re buying in the it’s basically statewide, and every state with a larger city, they’re not going rural. So if you send something to me, and I take, because I can stock, I can look it up and find out how much it’s worth, tell whether or not your own your own target, whether or not they’d be interested in it. And so if I send it back to you and say, I’m gonna, I’m gonna submit it, see what we get, then hopefully, that’ll be your first and only JV that you have to do with me. If I tell you that they’re not going to be interested in it, because it doesn’t meet the criteria. Don’t get upset. Whatever you do, don’t get upset. take it with a grain of salt. I know how they bought, I’ve sold them many houses, every single time I sell them house, because of the relationship that I’ve built. I can call him back and I can say, hey, Show me the money. If it’s, you know, if I think I’m only gonna make $5,000 on a house, I’ll sit there and say, Hey, can you do any better their houses where I’ve made over $30,000 selling houses, just on assignment fees. So they don’t care what you make, that’s irrelevant to them, they have a percentage, or returning the date that they’re going for. And that’s all they care about, the only thing they will is deals and they can close on them quickly. They are very organized. So don’t worry about it. I know a lot of people don’t want to partner with people, that’s fine. If you don’t want a buyer, that will be a consistent buyer for years to come and keep your bills paid. Don’t send it to me.
If you want to look at it in a way of a benefit for you in the long run, then send it to me, because what I’m trying to do, and what they want me to do is basically screen the leads coming in that I’m offering. So instead of you sending them a house that doesn’t meet their criteria, and them saying to them to you don’t send me any more deals because we told you what our criteria is, you don’t know what you’re doing, because you’ve missed the rehab budget, you missed the the value of it. And now you’ve just lost it. So I’m walking you in that door to show you how to be successful with them. It’s completely up to you whether or not to take advantage of it. I’ll leave that I’ll leave that up to you. The 13 states that they’re currently buying in, and I’m gonna give you these in alphabetical order. The 13 states and like I said, these are statewide so your bigger cities in the States or where they’re going to be buying. They’re not going to go buy in small town USA. It’s just too hard for them to come up with value. appraisers sometimes don’t get it right what they need those kind of things. So, here are the 13 states, bigger cities in all of the states. Alabama, Georgia, Indiana, Kansas, Kentucky, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Arkansas, Wisconsin, and Michigan. And again, I’ll give you those again in alphabetical order. Alabama, Georgia, Indiana, Kansas, Kentucky, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Arkansas, Wisconsin, Michigan. So if you’re working in one of those 13 states, I’m going to give you I’m going to give you my email, so get a pen and a piece of paper. And this is how we’re gonna this is how we’re going to work it out initially.
My email address that I want you to send these to is EarlTomsemail at gmail. So it’s the name of the podcast + Email at gmail, earltomsemail at gmail.com Earl Toms with an S email at gmail.com. So if you get a deal in one of these 13 states and one of the bigger cities now you take say something like Missouri and Kansas, well we know is going to be Kansas City and that that’s, that’s just a given. You look at, say Kentucky, we know it’s gonna be Louisville, you look at South Carolina, we know that’s gonna be Columbia, those Arkansas you’re looking at like little rock, you’re not looking at, you know, a place that’s only got 1,000, 5,000, or 10,000 people in the city, that’s not going to be what they bought. So their criteria, keep that pen and piece of paper out, because I’m gonna give you their criteria. It’s a very simple criteria. Like I said, they’re not going to buy anything that is not in a city, that is a larger city, nothing that gives you a rural feel. They’ll buy in the outlying suburbs of the big city, because that’s considered part of the the city’s MSA, the Metropolitan Statistical Area. So whenever you see MSA on something, it’s a Metropolitan Statistical Area. So if you’re saying, Detroit, the outlying counties, they’re included in that Statistical Area of Detroit, that’s going to be included. They don’t buy a lot in inner cities, because it’s a little bit difficult to come up with the value. There’s a little more risk involved in those purchases. So they’re mainly focused on those outlying areas of those major cities. Now, they will buy in the in the actual cities have sold them houses in the cities, but it’s got to be a better area of the city. So you know what I’m talking about in those areas. So just keep that in mind nothing rural, outlying areas of the city, the suburbs, a lot of places where your turnkey providers are selling things in the cities. That’s where this this group is going to buy. They’re always going to rent these, every now and they’ll do an actual flip like you would see on HGTV.
But the rent requirement is a minimum of $800 a month, it doesn’t matter if it’s a two bedroom, three bedroom, four bedroom, but it has to rent for at least $800 a month. If it won’t rent for $800 a month, they’re not going to buy it. If it’s close to $800 a month, if you’re at $750, don’t send it, they’re not going to buy it, you’re going to waste time. They have a minimum value that they buy, and a maximum value that they buy, they will go over the maximum value, they won’t go under it. So the minimum value that they’re gonna buy as a $60,000. Your house has to appraise for at least $60,000 when repairs are done. If it will not appraise for $60,000. When repairs are finished, they will not buy it, do not send it there Maxim maximum value that they like, is $150,000. They’ll go over it. I’ve sold them houses that go over. But it’s because the deal was so good that I just said we’ll flip it. It didn’t make any sense to them to to rent it out because they weren’t going to get their return based on the what they were having to pay for it and renovate it. But they were going to make more money turning around and flipping it. So it goes back to the usage of the property the highest and best use that I’ve that I’ve spoken about before in some of these episodes. I’m gonna take a sip of my coffee because it’s early in the morning. The other thing that they have is a $60,000 maximum rehab budget. The more beat sideways these houses are, the more they seem to like them and I’ll give you the reason for that.
There something they have, it’s something in their terms that if there are pictures of of a house online, and they can’t alter what those pictures look like, they can’t buy it. So if you go think about it in this way, so you pull up Zillow, look at the listing on it, it may not even be a market, it may just be the last time it sold. So if the house is still in similar condition to when that last like somebody bought a house two years ago, when they haven’t torn it up, and there’s not a lot of rehab done on it, for whatever reason, those those pictures online, ruin that deal for them. And it may have something to do with them going with their the way that they show their investors with the phone. I mean, I’m not, I don’t get into all that kind of stuff. I mean, I know what it is, but it’s not my place to tell. But if they can’t show renovation, then they won’t get it. So you can’t go into a house that someone bought two years ago, when it only needs maybe a new roof and the rest of the house, you don’t even have to paint it, they’re not going to buy that they need to be able to show that they have spent money renovating that house in order to buy it.
And then one of the one of the things that they have, that I’ve disagreed with them on before because to me, it’s it’s double dipping. But then again, they control the money because they’re buying. So you just have to roll with it. If you have a property that I say you get a landlord and investor that wants to sell a house, and it’s occupied, they’ll buy. But here’s here’s the double dipping part, let’s say that your tenant is paying rent, whether it’s section eight, or you know, just a straight pay tenant, everything’s great, they’re gonna be getting money, as soon as, as soon as they close on the house. The problem is, is you’re probably going to have some pictures online. So more than likely, when that lease is up, they’re going to they’re going to remove that tenant, renovate it, and put somebody that they will into that house. So what they do to make sure that they can cover that future renovation is for every month left on that lease, they charge $1,000. So if you were going to sell them something for $70,000, but that tenant had 10 months left on that lease, they’re gonna take $10,000 off of that $70,000 and only give you 64. That’s just how they do it, even though they’re collecting rent, they’re still taking $1,000 off of that purchase price for every month remaining own the lease for that tenant. So if you’ve got a tenant that’s only got two months left, you’re only going to get hit $2,000 on it. If you’re if you’ve got a house that the tenant is month to month, saving better, you’re not going to get a deduction, you might get $1,000 or $2,000, but you’re not going to see it, they’re not going to tell you they’ve done it. So it’s it’s just a it’s a way they do business. And I’ve like I said I’ve told him before that they’re double dipping, because you’re collecting rent basically at the same clip, as you’re deducting every month. So it doesn’t make a whole lot of sense to me. But again, they’re the ones buying, they have the money that you’re trying to get. So roll with it. You can’t go in corporate and say this is stupid, stop doing it. Or I’m not gonna sell you anything. They could care less if you sell them something. They have plenty of people that are willing to sell them from agents, contractors, owners directly, wholesalers, they’re getting it from everywhere you turn. I don’t even pretend to go on MLS anymore here. Because every time I do I’ll sit there and they’ll say no, we’ve got an offer on it. I picked the phone up and I call him that. Yeah, we got the agent to send it to us before they put it on the market. So we’ve already seen if we put an offer in on it. So that’s how strong this buyer is. So to me, it’s me giving you a Christmas present.
Yes, I’m going to make money on your first close deal with them. But that is the only deal that I’m going to do this with. So you don’t have to worry about what how many times Am I going to have to do this, it is a one time deal. So when you go in and you send me something, make sure you give me accurate information, send me pictures. So I know what’s going on. If you want to send me a Dropbox link, that’s fine. I don’t care how I get pictures. But I’m going to get pictures before I send it. If you don’t have this under contract, I’m not going to send it. So you’re also going to send me your contract, when I send it, this buyer is not going to get your contract. Because one thing about me is I’m here to make money as well. So I’m not going to share that with them. I’m going to tell them to make me an offer. And then whatever is whatever their offer is, I’m going to negotiate and I’m going to negotiate hard for. Because I want to make if I’m only going to be in this one time with you, I want to make as much off of you as I possibly can for that one time. Because after that I’m turning you over. And I’m not gonna I’m not gonna see or hear from you ever again, my bank account is never going to reflect any business that we’ve done, ever again. So like I said, you can take this you can work, you can send it, that’s fine. How I want you to send them is I want a full description, address, bedroom, bathroom, contract pictures, I don’t need square footage. But if it’s got anything finished in a basement, send me that say it’s got one room or it’s got two bedrooms, or it’s got a half bath, tell me what’s in that what’s in that basement, when you send it over. Give me a full description, because one thing I’m training you on, when you send these is how to get a very fast offer, that will stick with this buyer so that you can move to closing very, very quickly and be finished. Within a week, seven days, two weeks, depending on what state you’re in. This buyer has cash ready to go. They don’t waste time. So all they have to have is their rehab estimate when they send their inspector out there. And after that they’re gonna send you send you the mind are sending attorney the money and then you’re gonna get it.
So like I said, Send me full address, send me Bedroom, Bathroom count, send me anything, if you’ve got a basement, send me anything in the basement, send me a basic description of what repairs need to be done to this house. Send me a legitimate repair estimate. Even if you have to over estimate, I would rather you do that, then send me an estimate for says $20,000 when it’s really $40,000. Because another thing that this buyer has done before. I’ve sent them out to a house and I’ve said I think your rehab is going to be $50,000 they have come back to me before and said it’s only going to be $50,000. So we can raise the contract price on you. pad your estimate if you don’t know what you’re doing. If you know what you’re doing fine, send it on. But if you don’t err on the side of caution, because I’ll get them to come back and add money to that purchase price. If they’re not gonna if the if the rehab estimate doesn’t get to what upset over there. I don’t need you to send me a how much you think it’s worth. Because I’ll be able to figure that out. Just online. You give me a basic description of what this house needs in repairs. The full address, Bedroom Bathroom count if it has a basement what is finished in this basement, bedroom, bathroom, any if there is nothing finished in the basement and it has one just say unfinished basement. That’s all I need from you. But like I said, make sure you send your contract with with your email and send your link to pictures. You can send a zip file I don’t care, whatever you want to do. Send it because unless I have those, I’m not sending it to him because one thing I’m not gonna do is I’m not gonna waste my time. I’m doing this to try to help them people out. But I can’t work for free. So if you have a deal, and you want to send it, my email address that I want you to send it to, again is Earl Toms with an S email at gmail.com. Earl Toms email at gmail.com. So when you go through, when I show you how they buy, the next deal that you have, you’re going to send it directly to them. And you’re going to send it to them the same way that I just told you, but you’re not going to send the contract to them, don’t send the contract to them. I wouldn’t do that with anybody, I don’t think anybody else would. The reason I want it is because I want to know the deal is actually under control before I send it in because my reputation with them is on the line. And I’m not going to waste it on someone that is just out there throwing things against the wall to see if they stick you’re going to do business professionally, or I’m not going to send it, it’s just that simple. So when you when you send it over again, Earl Toms email at gmail.com.
Address, Bedroom Bathroom count. If it has a basement, tell me if it’s finished or unfinished. And what’s in that basement, if it’s finished, send me a basic description of what you think needs to be repaired. Send me your pictures, and send me the contract with your pictures, I would like a front view rear view views of the sides of the house. And one of every room, maybe two of every room if if there is enough room to take a picture. If you’re in a kitchen, it’s a good idea to take at least two pictures so that you can get a full view of the kitchen, the cabinets, countertops, things like that. bathrooms, I know it’s kind of, you can take a picture of the of the tub and take a picture of the you know standing in the hall shooting the shooting the picture in there. So wherever you can make an additional picture in a room, I would prefer that but I understand some rooms. It’s just not not right, send me a picture also of every single thing that you see that is wrong with that house. If you’ve got holes in the flooring, if you’ve got stains on the ceiling, holes in the walls, doors or off the hinges, things like that gutters are hanging hanging low, send me those pictures, because that is going to help get you the best offer in the least amount of time. So again, nothing rural $60,000 minimum value, up to $150,000 value after repairs. A budget for rehab cannot go over $60,000. The minimum rent amount is $800. And if you follow those guidelines, you’ll get a deal closed, either by the end of December, or shortly thereafter. Because all they’re gonna do is pick up the phone, call me say hey, do I get out? How do I get in the house. If you’ve got a lockbox on it, that’s even better if it’s vacant, so they can just go when they want to. If we need to schedule a meeting for somebody to be out there, that’s what’s gonna happen. That’s fine.
But one thing I want every one of you to understand is if if you send me this and I submit it to this to this buyer, and then you try to follow up with them without me. I will find out and they will blackball you, you will never give them another deal. They do this wholesalers have tried this before on me. And wholesalers have failed before. This is a very transparent buyer with me. So if I send it to, and then I’m not involved, or it gets cancelled, and then all of a sudden you show up a week later with a new deal. They’re going to tell me and they are going to do one of two things. They’re going to force you to work with me and JV with me on it. Or they’re going to blackball you one of the two. So this is a very, this is a Christmas present. But you don’t think you’re going to pull something over on anybody in this because like I said, Every one of these guys came from the tech industry. They’ve got a record of everything. So when you try to when you try to do some funny business, it’s gonna be in there with a record. They’ve got it. They invented their own program, they wrote their own program to be able to figure out how much something’s worth that hands down beat Zillow when they wrote it in a week. So, don’t think you’re fixing it, oh, I’m just gonna send this over to him, find out who it is. And then I’ll have to do it. Because if you don’t, you’re gonna hurt yourself, and you’re never gonna sell anything to. And I’ll make sure you don’t. That’s just the way you do business, you can either come in this with one time and do it and have a prosperous 2021. And many years after that, or you can lose a buyer on the first shot. It’s completely up to you.
The states that they’re buying and again, are Alabama, Georgia, Indiana, Kansas, Kentucky, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Arkansas, Wisconsin, and Michigan. So if you have a deal in any of these areas, that meets their criteria, send it to Earl Toms email at gmail.com. And I’ll and I’ll work with you to get one deal closed, after that deal. Have fun, sell as many houses as you possibly can for as much money as you possibly can. And maybe 2021 will be the year that changes your life. So with that, I’m gonna I’m gonna bring it to a close, I hope everyone has a has a merry Christmas appreciates the the Christmas present that I have given you. I’m not here to waste your time, I hope you’re not gonna waste my time when you send up when you send a deal over. If you have questions about how to approach something in a deal, send it if you if you’re not sure a value, send it, I’ll look at it don’t matter. Just take it one day at a time and see what happens. Because my goal is is to get you in one deal. So that you can have your own buyer and be able to have have prosperity basically, you know, for as long as this buyer comes by. But again, I hope everyone enjoys the Christmas present. If you would like to work, work with Earl Toms feel free to send over the information. If I don’t get all of the information up front, I will reply to you and say I don’t have everything saying this. If you can’t move on to the next deal, and then send what you what you can on the next deal, virtual wholesalers probably not gonna not gonna work well in this model, because of what I require and what they require. So unless you’re just, you know, that good of a virtual wholesaler probably wouldn’t send it if you’re working the market you actually live in Do you should be able to benefit with this and depending on how you market within six months be able to put neighborhood of $100,000 worth of profit. That same fees in the bank. And hopefully this will be something that that changes your life. But again, that’s that’s all we’re gonna do to today just wanted to give everyone a Christmas present. If you have that deal, send it to Earl Toms email at gmail.com.
I hope to see my inbox full today and let’s get some deals closed in 2021 Thanks for listening everyone.