How to Snag Sweet Deals in Real Estate Like a Boss
Yo, what’s good? Today, we’re diving into how to spot a solid deal in the crazy world of wholesaling. I’m Nathan Payne, and I’ll be breaking down the painless wholesaling method that’ll save you from the guesswork. We’ll chat about picking the right market, using batch leads to find buyers, and all those juicy details that’ll help you lock up deals like a pro. Plus, I’ll share some killer tips on running comps and calculating repair costs without pulling your hair out. So, grab your snacks and let’s get this party started!
How to Spot Great Deals Using Batch Leads 🏠
Visit https://www.paynelessflipping.com to learn how to do real estate deals the payneless way!
We're diving deep into the world of wholesaling, folks! Nathan Payne is live on the weekly batch call, and he's spitting some serious knowledge about how to score those killer deals in this ever-changing market. First off, it’s all about understanding what a deal really is. Nathan emphasizes that recognizing a good deal is key to success, and he’s about to break down his painless wholesaling method that’s all about simplicity and efficiency. The episode is packed with insights on leveraging data from Batch Leads to find the right properties and buyers, which is like having a treasure map in the real estate game. Seriously, you won’t want to miss this info on how to save time and make smart moves in your wholesaling journey.
Nathan gets chatty with Sarah, a newbie in wholesaling, and they tackle the essentials. He lays it down: mindset is everything, especially when you’re riding the roller coaster of ups and downs in this biz. Picking the right market is next on the list, and Nathan shares tips on using Batch Leads to figure out where the action is at. He’s got the scoop on how to spot areas with high cash buyer activity, and trust me, that’s gold when you’re trying to flip properties. After all, if you’re in a ghost town, you can’t expect to make a killing.
As the convo rolls on, Nathan gets into the nitty-gritty of determining property values and the all-important ARV (After Repair Value). He’s got a formula for that, and it’s super straightforward. He breaks down how to assess repair costs without losing your mind—because who has time for complicated spreadsheets? Just know your square footage and how heavy the repairs are, and you’re golden. By the end of this episode, you’ll not only grasp the basics of wholesaling but also feel ready to jump into the market with confidence. Nathan’s practical tips and real talk about the wholesaling grind make this episode a must-listen for any aspiring real estate hustler!
Get ready to level up your wholesaling game! Nathan Payne is back at it on the weekly batch call, and he’s about to drop some serious wisdom bombs for all you aspiring real estate moguls. The main focus here? Understanding what makes a deal a good one in this unpredictable market. Nathan’s painless wholesaling method is the star of the show, and he’s all about using Batch Leads to find those sweet, sweet deals. He’s not just throwing out random numbers either; he’s got a solid process to help you identify the right properties and buyers without driving yourself crazy.
He kicks things off with Sarah, who’s just starting out and a bit unsure about how to navigate this wild world of wholesaling. Nathan’s got her back, guiding her through the essential elements like market selection and buyer networking. It’s clear that knowing your market is crucial—don’t waste your time in a place where no one’s buying! He also emphasizes the importance of building relationships with cash buyers before you start making offers. This strategy sets you up for success and gives you the confidence to dive in.
As they dive deeper, Nathan shares his go-to methods for running comps and estimating repair costs, all while keeping it super chill and easy to understand. Forget the complicated math; he’s got handy rules of thumb that make determining your offers a breeze. He wraps up with a killer takeaway: always know your numbers and never waste time on properties without a motivated seller. This episode is packed with actionable advice that’ll have you feeling pumped and ready to tackle your first deal. So, if you’re serious about stepping up your wholesaling game, this is the episode you need to tune into!
Takeaways:
- Understanding the market is crucial for successful wholesaling, so pick wisely where you operate.
- Using the painless wholesaling method helps simplify how to spot a good deal efficiently.
- Networking with buyers before making offers can save you time and increase your chances of success.
- Always calculate your offers based on the ARV and necessary repairs to ensure profitability.
- Don’t overthink it: a quick way to gauge interest is offering 50% of Zillow’s estimate.
- Mindset is key; prepare for ups and downs in the wholesaling roller coaster ride.
Links referenced in this episode:
Companies mentioned in this episode:
- batch leads
- Zillow
Transcript
What is going on?
Speaker A:Everyone, this is Nathan Payne.
Speaker A:We are live with the weekly batch call where I show you how to use batch leads to crush it in your market, how to do business, how to get deals.
Speaker A:Right now, with the way that the market's changing, it's so important that you know what a deal is.
Speaker A:You know how to use the data from batch to lock up deals, to find the right stuff, to use your time wisely.
Speaker A:So right now we're going to talk about today on this weekly batch call, how to determine if you have a good deal.
Speaker A:I'm going to show you exactly how to do it and through the painless wholesaling method.
Speaker A:That's why the painless wholesale method is so legit.
Speaker A:Because if you have buyers that you already work with, you don't only have to just guess and run the comps and think you know, someone will offer.
Speaker A:You can ask someone.
Speaker A:You can ask when your buyers.
Speaker A:So let's get started right now.
Speaker A:I have Sarah on here.
Speaker A:Sarah, what's going on?
Speaker B:Hey, how's it going?
Speaker A:Good, good.
Speaker A:All right, so let's dive right into it.
Speaker A:So you said you're brand new to wholesaling, really green, and you want to start implementing and having this strategy so you can make some more money as a unicorn agent, right?
Speaker A:So let me ask you this.
Speaker A:What do you believe is required for it to be a deal at this moment for you to wholesale?
Speaker A:Dude, I'm just curious.
Speaker A:I want to ask you.
Speaker B:I mean, the price has to be right, right?
Speaker B:There has to be enough money in it in order for everybody to be happy and make a deal.
Speaker A:Do you have an idea of what that is?
Speaker A:Like, because a lot of people, as they research or wholesaling, they have like, sometimes they hear of like a formula that's like 70% minus repairs, minus AR15, you know, minus your fee is your wholesale price.
Speaker A:What have you heard?
Speaker B:I heard now market shift investors are going down to like, I want to say 60, 60 to 70.
Speaker B:But I've also heard at the end of the day, as long as they can make a 10% return.
Speaker A:All right, so you've heard a lot, right?
Speaker A:You might be a little confused.
Speaker B:Yes.
Speaker A:All right, all right, so let me show you what I do so you can kind of have a good idea of how to determine like what your offers.
Speaker A:What is a deal?
Speaker A:So I call it the painless wholesaling method.
Speaker A:This is the blueprint.
Speaker A:It shows you steps 1 through 10 on how to get a deal every step away.
Speaker A:But the I believe you get started in wholesaling is you have to.
Speaker A:At first, mindset is really important because wholesaling, it's a roller coaster ride, especially when you get started ups and downs, it's getting deals falling through.
Speaker A:So you have to be prepared mentally to overcome that.
Speaker A:So what's the first thing I tell people?
Speaker A:The second step is picking a market.
Speaker A:It's really important as you wholesale to pick the right market.
Speaker A:Because if you're in a market that there's not a lot of activity, a lot of flippers, you're not going to have anyone to sell it to.
Speaker A:So you got to pick the right market and, and you can use batch leads.
Speaker A:So I show people how to use batch leads to pick their market.
Speaker A:You can do cool things, you can check areas, you can pull lists, you can find buyers.
Speaker A:Let's just say you are in Flagstaff, right?
Speaker A:You'd be like, oh, can I start wholesaling, like a ton of deals in Flagstaff, Arizona?
Speaker A:Like, is there enough volume, is there enough cash buyers in this area for me to do deals?
Speaker A:So right here you can check if you just go to quick filters shows you that there's quite a bit of cash buyers and that means sales in the last year or so.
Speaker A:So Flagstaff would be good by the amount you can see.
Speaker A:It says recent cash and hard money loan purchases of real estate.
Speaker A:They have automatic filters.
Speaker A:It's really easy to determine like if there's activity if you're in a major metro.
Speaker A:Because if you're in a major Metro, I'd say 99% of the time, like there's activity just because there's a lot of people living there.
Speaker A:If a population is big, that means that there's a lot of people moving there.
Speaker A:But if you live in a place that's a little not populated, it's like fifty thousand, a hundred thousand.
Speaker A:That just means there's less movement, less people moving in and out of the state.
Speaker A:That's like a general rule of thumb.
Speaker A:So the next step after picking your area is you want.
Speaker A:My goal and what I tell people is do not just automatically or immediately just go start marketing and just calling sellers and trying to get a deal because you still are at this point, you've picked your market, but you don't know what people are buying.
Speaker A:Markets differ all over the country.
Speaker A:So you need to be able to understand your market and what people are buying.
Speaker A:So the next thing I teach, and this is why I call it the painless wholesaling method, is I teach you how to network first to find your cash Buyers.
Speaker A:Once you understand and have about five to 10 solid relationships, then you can, with confidence, go out and start making offers.
Speaker A:You can talk to sellers.
Speaker A:So if you go to my mind map, I show you exactly how to run comps for wholesalers.
Speaker A:So there's some really easy ways to do it.
Speaker A:But let's go to step one.
Speaker A:So how to find comps.
Speaker A:All right, so I use batch leads.
Speaker A:I like batch leads a lot because it gives you a good idea of comps.
Speaker A:You can just type in the address you want.
Speaker A:Let's just look at this one.
Speaker A:It gives you an estimated value.
Speaker A:It runs an algorithm, right?
Speaker A:Like most of these softwares, it tells you an estimated idea.
Speaker A:So you get a good idea just immediately like, okay, what it's worth.
Speaker A:Even qwicly does comparables and it checks a radius within a year square footage, it does all that and it shows you a bunch of different comps.
Speaker A:So that's a quick way to do comps.
Speaker A:Like immediately, it's just with batch leads.
Speaker A:So the next one is Zillow and then obviously MLS data that trumps all.
Speaker A:It's the best way to find comps.
Speaker A:So that's how you find the comps.
Speaker A:So you want to determine the ARV after you find comps in order to start the process of like, okay, what is a good deal?
Speaker A:You need to find out, what is this house I'm looking at?
Speaker A:What is it worth if it's at the top of the market, right?
Speaker A:Or it's fully flipped?
Speaker A:So the best thing to do is find flipped comparables.
Speaker A:If you're just finding a bunch of homes that haven't been flipped, it's going to be difficult to determine what it's going to be worth if a flipper goes in there, makes it really nice.
Speaker A:Do your best to find comparables.
Speaker A:The next thing that's important after finding the ARV.
Speaker A:So let's just say, for example, ARV, you find a house that's worth 200 and you know it's worth 300.
Speaker A:So that's the ARV is 300.
Speaker A:Now you got to determine, okay, they're giving it to me at 200.
Speaker A:But how much repairs does someone need to put into it to get it up to 300,000, right?
Speaker A:Here are some questions to ask.
Speaker A:So this says, are you working with a seller virtually?
Speaker A:Are you working with someone in your backyard?
Speaker A:This tells you how to navigate, if it's virtual, what questions to ask, and how to get pictures.
Speaker A:So this is the easiest way to determine a light, average or heavy repairs.
Speaker A:So it says, square footage of a house, for example, is a thousand square feet times the cost of the light.
Speaker A:If it's light, it's $18 per square foot.
Speaker A:If it's average, it's 24.
Speaker A:Or if it's heavy, which means down to the studs, you got to do the whole thing.
Speaker A:It's 40, equals your rehab cost.
Speaker A:So, for example, you have a thousand square foot house that just needs carpet and paint.
Speaker A:Probably going to cost $18,000 because you're doing 1,000 square feet times $18.
Speaker A:Very easy.
Speaker A:Didn't need to go dive in deep into, like a full rehab estimate spreadsheet.
Speaker A:I just need to know, square footage.
Speaker A:Is it light, average, or heavy?
Speaker A:And if you're like, well, what makes something light, Nathan?
Speaker A:Well, right here, if you don't have to touch the cabinets or the bathrooms, and all you got to do is carpet, tile, paint, and carpet or flooring, it's usually light.
Speaker A:It's a light rehab.
Speaker A:If you have to start venturing into bathrooms and cabinets and kitchens, then you're talking an average rehab.
Speaker A:If you got to do everything from a gut job, we're talking windows, everything, it's 40, and that's like a gut job.
Speaker A:And these are average numbers, right?
Speaker A:It could go up, it could be lower, but I would say 40, 24, and 18 are good.
Speaker A:So if you're talking to a seller and you're like, hey, you know, I'm interested in buying your house, and tell me a little bit about the property.
Speaker A:You're like, has the kitchen been updated in the last five years?
Speaker A:No, it hasn't.
Speaker A:Okay, how about the bathrooms?
Speaker A:Have the bathrooms been updated in the last five or ten years?
Speaker A:Yeah, we just updated them last year.
Speaker A:Okay, so I don't have to worry about the bathrooms, Right.
Speaker A:Then you're like, okay, kitchen, yes.
Speaker A:Bathrooms, no.
Speaker A:Those are okay.
Speaker A:And carpet and paint.
Speaker A:So you're right in between like an 18 to 24, because you're not having to do the bathroom.
Speaker A:So again, really easy to determine what you need to get a property for arv be, what is this property worth?
Speaker A:Flipped.
Speaker A:How much do my repairs need to be?
Speaker A:Now, we've gone over both.
Speaker A:You've looked at flip comparables.
Speaker A:You know that it's worth 300.
Speaker A:You know that this house, in this example, it's a thousand square feet.
Speaker A:It needs $24 per square foot.
Speaker A:In this example, $24,000.
Speaker A:Rehab.
Speaker A:So you have the rehab and you have the RV now.
Speaker A:Okay?
Speaker A:So that's two parts of the formula.
Speaker A:And then now you calculate your offer that you can buy it at.
Speaker A:And the way I do it is depending on if I'm talking to an analytical buyer or, sorry, seller.
Speaker A:I sometimes even show them my rehab calculations and be like, hey, this is why I have to be here, because I got to make some money.
Speaker A:But determining everything we talked about, I can resell for 300.
Speaker A:I got to put in 24,000.
Speaker A:I need to make 20, $50,000.
Speaker A:I hope you understand.
Speaker A:I'm a business.
Speaker A:I sometimes walk people through my numbers so they understand why my offer is $150,000 less than what they believe their house is worth.
Speaker A:This is the quickest way to determine if you're talking to a motivated seller is forget all this noise, all this stuff I just showed you.
Speaker A:Look up someone's house on Zillow and offer them 50% of their estimate.
Speaker A:That's the easiest way to determine if you have a deal.
Speaker A:Because if someone doesn't get off the phone with you, then obviously you have someone that you can work with, right?
Speaker A:Another quick way to do it is 70% of the ARV.
Speaker A:All you do is you find the ARV.
Speaker A:You do this formula.
Speaker A:So let's say the house is worth 300,000.
Speaker A:You say, okay, 70% of that, minus we talked about $24,000 in repairs, minus my wholesale fee, I want to make $15,000, $171,000.
Speaker A:If I offered 171 to the seller and they accept, I'm going to make at least $15,000.
Speaker A:The flipper will have his costs of 24,000 in there, and then the profit, the expenses of the hard money, all that stuff is calculated in the 70%.
Speaker A:That's what the 70% is.
Speaker A:The 70% includes the 6% in commissions and fees for relisting it.
Speaker A:It also includes the closing costs, the profit.
Speaker A:So one thing that everyone needs to know that's watching this is do not waste your time running comps on a property where you don't have the seller on the phone.
Speaker A:Complete waste of time.
Speaker A:Well, that was it, everybody.
Speaker A:I hope that was helpful.
Speaker A:All right, we're signing off.
Speaker A:Later, everybody.
