All Forum Posts by: William Johnson

Great article it just goes to show how important it is to hold your ground when those who are ignorant and thus more confident than you attempt to paint what you are doing as illegal. As long as there is full disclosure to all parties and you really did true due diligence (two herculean tasks) than there is nothing to fear.

Originally posted by @Ben Leybovich:

@William Johnson - how were you going to finance this purchase?

 I would have wholesaled it or partnered with an experienced buy and hold investor. 

Originally posted by @Ben Leybovich:

@William Johnson 

He told you what drives his perception of value - the income.  And, there is no debt against the building, to boot!  

You give him the purchase price and the income, and he gives you the terms that make the latter work everyone is happy.

Thank you for the advice but I don't understand what you are proposing. How can I give him the income if he already has it? 

@Jay Hinrichs  

@Dev Horn 

@Jeff S. 

@Ryan Dossey 

I am getting 10 to 15 leads coming in each week from my advertising and I am contacting 15 to 25 FSBO / MLS per week. I work an un-related job at 32 hours per week and I have 4 children (Just to put my real time constraints in context). I would estimate that about 5 to 10 of those leads have enough equity and motivation to make it interesting for me. The main challenge to overcome right now is that I only have enough time to visit and perform the related due diligence surrounding these visits on a maximum of 3 of those properties.

How would choose 3 out of the 10 properties that you would visit on in my position (equity and motivation being equal for all 10 sellers)?

Originally posted by @Jay Hinrichs:

@William Johnson 

  to answer your question you posed to Dev Horn... YES YES YES... you fubared yourself.

it takes a lot of porch time.. people blow you off on the phone in person they are different and so are you... unless you are so swamped you can't take the time because your closing way to many deals over the phones and making hundreds of thousands of loonies then you don't need to see them in person. but if that's not the case get in front of them.. who do you think is going to get the deal you in front of them or the next person who calls and trys to talk them into selling over the phone.

 Wow! This totally throws what I have traditionally been taught on its head.  To summarize you recommend to just confirm equity and motivation and not do any qualification about what they would take over the phone. Just make an appointment and get in front of them.  Also I've added two new movies added to my list.  Thank you 

I am getting a lot of ideas from this thread and from others.  One thing I am really working at doing is cutting down my time per call.  I don't want to be on the phone too long and not too short of a time either.  I do want to create rapport however, what is going to give me more value (and I would really love your opinions on this) talking to two sellers per hour and having great rapport with them or talking to six sellers per hour and having low to mediocre rapport.  Mainly I want to give myself the best chance possible of getting their real bottom line price while being able to blow through as many sellers as possible in search of the gold rush!

@Dev Horn I have been thinking about what you said about only using their motivation and whether they have equity in the house as your criteria to going to visit...if I would have been using this strategy from the beginning of my marketing campaign in October I would have visited at least 20 houses by now.  These were people who oftentimes had no or small mortgages and were very motivated...to get top value for their homes.  Are you saying that there is a very good chance that I have missed out on making a crapload of money?

@Caressa T. Thank you for the reference to the discussion!

@Ryan Dossey Man now I don't know which way to go because I am starting to see how split pro investors are even amongst themselves about making an offer versus making them make the offer. 

Originally posted by @Dev Horn:

OMG I would NEVER have that conversation with a seller over the phone.  I don't blame you because a smart person told you to do it that way, but what you fell into was the DEEP DARK HOLE of trying to negotiate price over the phone with someone with whom you have established ZERO rapport & you have not seen the property so you could be a mile off anyway.  What works for Michael Quarles may not work for mere mortals like you and me.

On the call, I just want to make sure they have (1) equity and (2) motivation and from there I set an appointment and go see the house before getting into the numbers.  But I'm also interested in helping them in ways other than a simple cash purchase if the cash does not meet their needs (e.g., lease option, list with my agent partner, joint venture, etc.) so I see every caller as potential $$ via several different exit strategies and would personally never handle them as was described in your post.

 Thank you for the advice!  Would you mind elaborating a little bit about what you would have done differently using my example?

Originally posted by @Ryan D.:

The above response is normally when I have seen a house/walked through it. However the process has worked in person, over the phone, and by email. Why are you offering him 100k less? Simply just what it makes sense for you to pay? What you can afford? 

It is based on the 70% formula. My price that I would have offered him concretely would be 335,000. (ARV 500 x .7 minus 10k reno (Back fire escape staircase) and 5k wholesaling fee.

@Wes Eaves Thank you for that particular way for me to explain to them why I need their lowest price

@Ryan Dossey What do you recommend to say when there is practically no repairs to be done that would justify the price difference?

Originally posted by @Ryan Dossey:

Here is my honest to goodness thoughts....

I have worked in a call center for years and this sounds super familiar to me. You started to hit heads with the guy. 

While a lot of people like the so what's your minimum approach it rarely works. If I ask and they tell me great. 9/10 they want you to make an offer. I normally show comps, repair estimates, and what a typical investor would pay.

"I know you want X and your house is worth it! In perfect shape... If you take a look at my estimate the home really needs ______ to get it up to par with the competition. Knowing a traditional investor would offer you mere pennies on the dollar at 65% - repairs - fees that puts us at (really low).... Knowing good and well the situation with your home what do you think is fair? Normally they will then give me a number that I can get them to come down from there on. 

Just last week we talked a 190k property down from 130k to 100k with that approach.

 Thank you for the response Ryan D. Do you do that approach for every call that comes in?