JV Deals: How to Cash In Without Breaking a Sweat!
Yo, if you're lookin' to level up your real estate game and save some major time, you gotta check this out! We dive into how to find motivated sellers by teaming up with other wholesalers – yeah, that’s right, it's all about that joint venture life. I mean, who wants to grind it out alone when you can share the hustle, right? We break down the nitty-gritty of analyzing deals and running those numbers, so you can snag that sweet profit without the headache. Plus, if you're part of our crew, you get a better cut when we close those deals together. So, buckle up and let’s get you investing smarter, not harder!
How to JV for Easy Real Estate Deals 💼
Visit https://www.paynelessflipping.com to learn how to do real estate deals the payneless way!
Real estate investing can feel like a maze, right? But what if I told you there's a shortcut? Our convo dives deep into the nitty-gritty of finding motivated sellers through joint ventures (JVs) with fellow wholesalers. Seriously, if you're juggling multiple businesses like I am, and time feels like a luxury, leveraging other wholesalers can save your sanity! We break down how to split deals and maximize profits without burning out. And hey, we even touch on how mentorship can give you that sweet edge with better splits on deals. If you’re wondering how to make the most out of your time and hustle smarter, this episode’s got the goods. Tune in for some real talk about turning leads into gold, even if you’re not the one doing all the legwork!
Takeaways:
- If you wanna invest in real estate super fast, check out investorthrive.com for training.
- Even if you're part-time in real estate, don’t hesitate to reach out for help anytime.
- Team up with other wholesalers to find motivated sellers without doing all the legwork yourself.
- You can totally leverage VA services to analyze deals and save loads of time.
- When flipping houses, make sure to run the numbers right to avoid getting burned.
- Joining our mentorship can ramp up your success and split profits better.
Companies mentioned in this episode:
- investorthrive.com
- Jerry Norton
Transcript
If you want to save time and learn how to invest in real estate faster, go to investorthrive.com to master the sales process from our training so you can close more deals with less leads.
Speaker A: -: Speaker A:All right, A.J.
Speaker A:so what we're gonna do today, Are you ready, brother?
Speaker A:We're going to show people how to find motivated sellers through jv with people.
Speaker B:Right, right.
Speaker B:J Being with people through other wholesalers.
Speaker A:Look, I don't have the time right now.
Speaker A:I got multiple businesses.
Speaker A:I don't have the time to call sellers nonstop.
Speaker A:Okay?
Speaker A:I do have some time, but not all the time.
Speaker A:So I like to leverage other wholesalers who are willing to do the grind, the work, and then I bring in the buyers.
Speaker A:Okay?
Speaker A:And then we jv 50%.
Speaker A:Okay, 50.
Speaker A:50.
Speaker A:But again, if you're in the club or you're in the mentorship, you get 60%.
Speaker A:What's going on, Tony?
Speaker A:What's going on, guys?
Speaker A:Good.
Speaker A:Good to see you, man.
Speaker A:Yeah.
Speaker A:So today I'm going to show you guys how to leverage other wholesalers that have deals to jb.
Speaker A:Do you do that a lot, Tony?
Speaker A:Do you.
Speaker A:Are you jbing with a lot of people now?
Speaker A:I've never done a JV deal.
Speaker A:I've got tons of people calling me.
Speaker A:I'm just so busy, I don't have a lot of time to look into their deals.
Speaker A:I got it.
Speaker A:Well, you know what I mean, if someone brings you a deal, that's fire, you know, and you have a buyer right in place for it.
Speaker A:It's like free money, right?
Speaker A:It's easy money.
Speaker C:Easy money.
Speaker A:So what we're going to do, Tony, is I'm going to show you how to do it.
Speaker A:AJ My VA has been looking at the deals that get submitted to me from other wholesalers nationw and analyzing them.
Speaker A:And if they're a good deal, we'll call them about it.
Speaker A:I use a VA to analyze deals.
Speaker A:Kind of like what I was telling you the other day on the call.
Speaker A:Yeah.
Speaker A:So, A.J.
Speaker A:let's talk about this.
Speaker A:You had Jacqueline submitted a deal, and you said it looked decent.
Speaker A:Is that right?
Speaker B:Right.
Speaker B:The property was put in under contract for a very low cost.
Speaker B:Although it does need a lot of work, it's actually noted as a total gut.
Speaker B:But looking at the ARV, I think it's pretty decent deal.
Speaker A:Okay, A.J.
Speaker A:what's the address on this bad boy?
Speaker B:The address for this property is.
Speaker B:I sent it through chat, boss.
Speaker A:All right, let's take a look at it again.
Speaker A:AJ While I'm looking at this, you want to explain to the people that are watching and to Tony what we're doing?
Speaker B:Right.
Speaker B:Well, so what we wanted to make sure is that we run the right numbers for the property and we make sure that we maximize as well the calculator that we're using to identify if it would be a good deal for a flipper or not.
Speaker A:That's exactly right.
Speaker A:We got to run the comps to make sure that they have a good deal.
Speaker A:So what does she have it under contract for?
Speaker B:She had it under contract for 125.125k.
Speaker A:Okay, so what did you have the ARV at when you ran it, AJ.
Speaker B:I actually had it at 320 since that was the maximum.
Speaker B:But I think just to be safe, I went to down to 305.
Speaker A:Okay, so let's take a look.
Speaker A:This is a very nice flip.
Speaker A:Like, I meant the exterior looks great.
Speaker A:Kitchen's a little older.
Speaker A:It looks great on the outside, but the inside doesn't look that great.
Speaker A:I mean, it looks like some of the rooms, they just didn't bother to flip.
Speaker A:But the bathroom looks great.
Speaker A:This is old.
Speaker A:Looks like they basically just did a little bit.
Speaker A:I'm saying 305 is the.
Speaker A:The ARV on it, and that's just a range.
Speaker A:Right.
Speaker A:So we'll throw this in here.
Speaker A:305.
Speaker A:And she has it at 150.
Speaker B:Is that right, AJ125 is contract.
Speaker B:But she also sent me a message saying additional fees would be up to 1:50.
Speaker A:Okay, got it.
Speaker A:So let's just put 1:50.
Speaker A:We put the square footage in here, about 2,000 square feet, and it needs everything, so it's going to be about 80k plus.
Speaker A:So if I wanted to make 20k on this deal, the flipper would make 21,000.
Speaker A:How do I get this down?
Speaker A:I either get the seller to accept less, I get the ARV up, or I lower my budget, or I take less of a wholesale fee.
Speaker A:I mean, those are your options to see if you can make more money.
Speaker A:This is potentially, someone would do it for around 10%, but probably not.
Speaker A:Like, usually it's between 10 to 20% is what the flipper wants to make.
Speaker A:But with the way the market is right now, they want home runs because they're not trying to get stuck.
Speaker A:Now, I could be way off in my ARV.
Speaker A:This thing could really be worth, like, 3, 345 flipped.
Speaker A:And now it's a good deal.
Speaker A:Right.
Speaker A:So at least I have a decent idea that this is potentially a good deal.
Speaker A:Potentially.
Speaker A:So, AJ let's give her a call right now, and let's talk to her.
Speaker A:Because the reason why I have this.
Speaker A:I was on a call with Jerry Norton, Tony, the other day, and this was one of his students.
Speaker A:And she was saying that she might have to cancel this.
Speaker A:And I was like, you know what?
Speaker A:Maybe.
Speaker A:Maybe I might be able to help her.
Speaker A:Because she said that she had a buyer, but they backed out because there were taxes and liens on it that made it more expensive to buy it.
Speaker A:I was like, maybe I can help you find a buyer that would still pay you what you need.
Speaker A:You know, we can JV on it.
Speaker A:Cool.
Speaker A:Cool.
Speaker A:All right, let's call.
Speaker C:Hello?
Speaker A:Hey, is this Jacqueline?
Speaker C:Yes, it is.
Speaker A:Jacqueline, it's Nathan.
Speaker A:Do you have some time to talk or are you busy?
Speaker C:I do.
Speaker C:Hold on one second.
Speaker C:For me?
Speaker A:Yeah, of course.
Speaker A:Sound like she at work.
Speaker A:She working hard.
Speaker C:Okay, I'm back.
Speaker A:Good.
Speaker A:Okay.
Speaker A:So let's talk about this deal.
Speaker A:I looked at it, and I was curious, what did you have the ARV at?
Speaker A:What did you believe that this could be flipped for or your buyers believe it could be flipped for?
Speaker C:So we spoke with a couple of realtors in the area.
Speaker A:Okay.
Speaker C:And they are staying anywhere between 300 and 320.
Speaker A:Okay.
Speaker A:That's exactly where I was.
Speaker A:I was at, like, 305.
Speaker C:Really?
Speaker A:Yeah.
Speaker C:Now, I personally, as a buyer, and I know that that doesn't mean anything, but with the four bedrooms, I think it is.
Speaker C:Let's be four bedrooms, two and a half baths, equivalent to what is selling in that area.
Speaker C:There's a couple of properties that have been renovated or semi renovated that sold for 345.
Speaker C:And I know that's the high.
Speaker C:But I personally, you know, think if I was a buyer, I would pay a little more because the other houses are kind of cookie cutters, whereas this house is not.
Speaker A:Yeah.
Speaker A:So that's the kind of.
Speaker A:The hard thing is people like cookie cutter, they like to be able to buy something that they know.
Speaker A:A flipper especially.
Speaker A:They want to know if they buy something, they can sell it.
Speaker A:So when you get something like yours, which is.
Speaker A:It's different.
Speaker A:It's like, doesn't have a paved driveway.
Speaker A:From what I can see.
Speaker A:It's kind of back there.
Speaker A:It's not cookie cutter.
Speaker A:Sometimes that's more of a risk.
Speaker A:Right.
Speaker C:Okay.
Speaker A:I know.
Speaker A:I looked at one that just sold in I think a month ago that sold for 3,45.
Speaker A:That one was like really nice cookie cutter.
Speaker A:But yeah, I think that would probably sell faster than this one just because this one's kind of off, off of the road.
Speaker A:It's probably less desirable.
Speaker A:So that's why I'm thinking there's probably telling you between 303 20.
Speaker A:Right.
Speaker C:Okay.
Speaker A:So I put in my numbers, I got 305.
Speaker A:There's no pictures.
Speaker A:I don't think you sent any.
Speaker A:What's the condition?
Speaker A:Is it a complete gut job?
Speaker A:Like completely needs to get re updated, everything?
Speaker C:Yeah, I do have pictures, but I didn't have time to send them at the time I filled out the form.
Speaker C:A complete debt job to my understanding.
Speaker A:So I put about an 80k rehab, I think you said you have at 125 but the liens and taxes are about 25k.
Speaker C:Well, so I have a contract and for 102.
Speaker C:And then I was given the contract.
Speaker C:I, you know, was doing a double close and I have a contract in house or somebody bought it from me for 125.
Speaker A:Someone bought it from you at 125.
Speaker C:Okay, let me give you all of the numbers.
Speaker C:So he owes 92, I believe.
Speaker C:Got it, but with the interest.
Speaker C:And then I put in a contract for 102 and it stopped the auction.
Speaker A:Okay.
Speaker C:But then after that when we asked for a payoff, we got a letter from the bank for 119.
Speaker A:Okay.
Speaker C:And then after that though, since the attorney's office had been handling it, they have found some judgments.
Speaker C:And so now it is actually yesterday I got a payoff from her and she said 127.
Speaker C:Which it keeps going up.
Speaker A:It's going to keep going up the longer you take because there's attorney fees accruing more money.
Speaker A:Right.
Speaker A:It's just like more charges on there.
Speaker A:So you're saying currently the break even for them just even sell is 127, right?
Speaker C:Yes.
Speaker A: e usually just split the deal: Speaker A:So you don't have to work with me.
Speaker A:I'm just saying like if you did want to, I would try and find a buyer for this and then we would split anything we make over 127.
Speaker A:But the thing is the seller would have to accept just selling the house for 127.
Speaker A:They would walk away with nothing.
Speaker A:Which I'm assuming they want something.
Speaker C:Yeah.
Speaker C:And we were trying to get them something initially, but now that the base has gone up so much, I don't think that is going to happen.
Speaker C:So I've been talking to him about that.
Speaker C:Have not given him a definitive answer.
Speaker C:But I did tell him that with the judgment and liens and things, that it basically eaten up everything that he was going to get.
Speaker A:Is he willing to just sell it to you for what he owes?
Speaker C:I am supposed to talk to him to see if he has any interest.
Speaker C:I told him at the minimum, maybe he would be able to pay off the judgments and things by selling the property.
Speaker C:So I'm going to talk to him and see if he is just interested in selling and walking away with nothing.
Speaker C:At first we were trying to get him at least $10,000, but we don't have it.
Speaker A:Yeah.
Speaker A:And you know what we could do on this one, if we work together, is we could potentially give him, you know, some money up front, maybe like a grand to move out.
Speaker A:And then we could say, hey, we can give you five or four.
Speaker A:So we'll give you five total, but we'll give you one just to be able to move out.
Speaker A:And then we can give you four in two years or three years.
Speaker A:And we'll just take over, we'll pay off, we'll catch the loan up, we'll do everything and we'll over the payments.
Speaker A:Because I'm sure their interest rate's pretty low.
Speaker C:Yeah.
Speaker C:And I'm not sure because I actually am partnering with a realtor.
Speaker C:I forgot what the interest rate is.
Speaker C:I know we've discussed it, but I'm partnering with somebody who was kind of working on the banks and talking to the bank.
Speaker A:Okay.
Speaker C:I received a text message probably just about 30 minutes ago, an hour ago, and somebody wanted to go out and see the property.
Speaker C:So what I'll do is I will let you know.
Speaker C:I actually asked him last night as well if he was interested in coming up.
Speaker C:And so he is supposed to let me know today.
Speaker A:Okay.
Speaker C:But I will keep it in mind.
Speaker C:And also, I think I saw something on your website that said if I sign up for something that it would be a 60, 40.
Speaker A:Exactly.
Speaker A:Yeah.
Speaker A:So I have a club, which I think you should join anyway because it's like super helpful.
Speaker A:I do a weekly call where I answer your questions.
Speaker A:I basically, what we're doing right now, I do this with you in a group.
Speaker A:Everyone's kind of.
Speaker A:It's a community where we help each other.
Speaker A:And it's not so much like a coaching course where you come to me and I'm the only one that talks like it's more of a community where we meet and we talk and we help each other out.
Speaker A:On every Tuesday, I send you leads.
Speaker A:Every month.
Speaker A:You get a thousand skip trace leads that have said they want to sell.
Speaker A:You get 10,000 that have already been skip traced, and you get, you know, a bunch of other resources for 99 bucks a month right now.
Speaker A:Now, Friday, I am raising it to 297 because my coach told me he's like, hey, it's way too cheap.
Speaker A:So if you want to do that, you should join before Friday.
Speaker A:And then you get a 60, 40 if we do this, and if we don't do this, we potentially can do deals in the future together.
Speaker C:Yeah.
Speaker C:So what I'll do, I will keep your offer in mind.
Speaker A:Okay.
Speaker C:And you know, if something happens and you're the last man standing, I will give you a call.
Speaker A:I don't mind.
Speaker A:I don't mind being the last man standing.
Speaker A:It's all good.
Speaker A:But I do want to let you know, do not cancel this contract.
Speaker A:I know you're talking about it.
Speaker A:Don't do it.
Speaker A:Because you can make this work.
Speaker A:You just don't want to wait too long where these fees keep going up and it's harder to get the deal done.
Speaker C:So.
Speaker C:Yeah, so when I say last man standing, I don't mean, you know, you have the last option.
Speaker C:I just mean that, you know, if somebody.
Speaker A:That's what I thought you meant.
Speaker C:No, I don't mean you're the last option.
Speaker A:Right.
Speaker C:That came out wrong.
Speaker C:I'm waiting on just a couple more and see, you know what they say.
Speaker A:Okay.
Speaker C:Yeah, I will let you know as soon as I know some.
Speaker C:As soon as I hear from my partner.
Speaker A:Okay, Talk to you soon.
Speaker A:Have a great day.
Speaker C:All right, thank you.
Speaker C:You as well.
Speaker A:I think it's a good deal.
Speaker A:I mean, I looked at it and I'm sure Richmond is a hot place and this is a desired property in area.
Speaker A:So she doesn't need me.
Speaker A:And I'll be straight up with Tony.
Speaker A:I'll be straight up with you or anyone I work with.
Speaker A:If they don't need me, I tell them that's how I work with sellers, too, is to say, hey, seller, you don't need me right now.
Speaker A:Your house is in great condition.
Speaker A:Just list this.
Speaker A:And then they say, no, no, no, I want to.
Speaker A:I want to sell it right now, today.
Speaker A:And then I say, okay, great, let's proceed.
Speaker A:You always want to go to sales.
Speaker A:Technique called going negative.
Speaker A:You want to push people to the no, just so they can.
Speaker A:If they are interested in working with you, they tell you no.
Speaker A:Yes, yes, I do want you.
Speaker A:Don't push them away.
Speaker A:They like bring you in.
Speaker C:Sam.
