Weekly Group Coaching for the Estate Professionals Mastermind Podcast
Chad Corbett hosts episode 43 as Certified Probate Experts share their probate real estate tips and questions.
Make sure you’re in our Facebook Group to get our “Building a REAL Cash Buyers List” Guide tomorrow!
In this episode, Certified Probate Experts share tips for real estate agents looking to make money fast, building a cash buyers list, prospecting assisted living homes for real estate referrals, and presenting wholesale deals to buyers using non-disclosure agreements. Chad also explains why lenders are highly incentivized to point you to their best buyers.
Thanks for tuning in and if you’d like to become a Certified Probate Expert yourself, you can get started today.
Episode #43 of Estate Professionals Mastermind – Probate Podcast
Join the Estate Professionals Mastermind Facebook group for real estate networking, scripts role-play, high-energy community support, and bite-sized real estate tips.
THIS WEEK’S CHALLENGE: Let us know who you’d like us to bring on the show for an Ask The Expert!
Training Topics In This Probate Podcast Episode (YouTube Links):
0:00 Upcoming real estate podcasts
(Real Estate Training Content)
1:07 Helping buyers keep up with risings costs: Creative financing and how to underwrite ability to pay using house hacking, short term rentals
(Real Estate Investing)
6:41 Using no-trespassing signs as a value-add to get face-to-face
10:31 Relocating to a new market as a real estate agent
(Real Estate marketing)
11:37 How real estate agents can make money right now by working with investors
14:30 5 ways to find buyers right now
18:31 How to prospect assisted living and senior living sales managers
(Real Estate Scripts)
19:45 Land parcel wholesaling: non-circumvention agreements and mutual non-disclosure with developers
(Real Estate Wholesaling)
26:39 How to follow-up and build momentum: Direct response vs. Branding
30:05 Transaction engineering: Medicaid, nursing home care, and property sales
34:12 How to leverage Calendly as a credibility tool for B2B Prospecting (for assisted living professionals and more)
(Real Estate Referrals)
37:19 Real Estate cold calling: When to leave voicemails and what to say
(Universal Realtor voicemail script and wholesale voicemail script)
39:22 Cold calling probate leads like you’re circle prospecting
40:07 Tricky probate situations: Trespassing, stolen vehicle, and pay-at-close probate attorneys
- Free Probate Webinar: Probate Fast Track Webinar – Probate Mastery
- Take Chad’s Probate Course and get Certified in Probate Real Estate
- Become a Probate Mastery course affiliate https://probatemastery.samcart.com/affiliates/signup
- Join Estate Professionals Mastermind Group (Facebook)
- Learn Probate, Real Estate Investing, Creative Finance, and more on our YouTube Channel
- Most recent content:
- Episode 42: Cold calling techniques, Best banks for HELOC on rentals, and Hiring real estate virtual assistants (probatemastery.com)
- Tips for Long Distance Real Estate Investing: Long-distance real estate investing: How to get started investing in real estate virtually – Probate Mastery
- Propstream trial: PropStream Investment Software (propstreampro.com)
- Relevant Training Content:
- Assisted Living – How to prospect assisted living professionals for real estate referrals
- David Pannell – Circle Prospecting Probates and turning unmotivated sellers into property scouts/ real estate bird dogs.
- Chad Corbett on the Al Nicoletti (Florida Probate Attorney) show: https://youtu.be/bJoorFQblAA
PROBATE TRAINING SESSION TRANSCRIPT
Download full transcript as a PDF: Prospecting assisted living referrals, Medicaid probate property, and finding cash buyers for development deals. Probate coaching episode 43.docx.pdf – Google Drive
Prospecting assisted living referrals, Medicaid probate property, and finding cash buyers for development deals. Probate coaching episode 43
[00:00:05] Upcoming real estate podcasts
All right. Welcome everybody to the weekly probate mastery group coaching call. Thank you guys for all being here. Over the last week, we did several different pieces of content with probate attorneys and just different professionals. So look for those coming up, we’ve got a lot of interviews in the can that Katt will be disseminating, Who would you guys like to have access to, like in a professional that might compliment you in the space or someone you would like to learn from? Who are the people that would help you fill your blind spots, or that will give you the motivation you need?
Next week we’re interviewing a person who provides ISA services so we can learn from them. We’ve been talking about hiring domestic employees versus hiring offshore versus outsourcing it. So that’s one of the areas where I know that you guys could benefit from the conversation, but any other experts that you would like to see interviewed in this space that could help you you know, grow this in your business. You can put those in the chat so Katt can compile the list. If you have any ideas or specific people that you would like to see, come into this community, please let us know.
So the floor is open. How can we help you guys today?
[00:01:07] Creative financing and how to underwrite ability to pay using using short term rentals for traveling nurses (Real Estate Investing)
Hey Chad. Hey Bruce. Yeah. Hey, just a quick question. So if I know someone, we haven’t talked in a while, but they have. They could probably put down a hundred thousand dollars on purchasing a piece of property or ICA a home. However, our median price here is $720,000. They don’t make that much.
And so I was thinking maybe like some kind of owner financing with maybe a balloon payment later, but then again, I don’t think that her income is going to go up substantially. And so any suggestions or ideas that we might want to utilize in a situation like that? This is a conventional purchaser, right?
For every buyer that I worked with, I would sit down with them for an hour on neutral ground. Like I would meet at a coffee shop or somewhere, so they didn’t feel threatened. And I would ask them progressively more personal questions about their finances. Like, when I got done with a buyer, I knew what their income was, what their other outstanding debt was, what that, what their ability to repay and that, kind of underwrote them before they ever got to the mortgage.
Are you aware of, do they have auto loans, they have student loans, or is there other debt like what’s their debt to income ratio? Yeah, that, I don’t know. I don’t think they have a lot of expenses each month they used to be a homeowner, but when they purchased their home, it was only 125,000 back in that day.
what I would do is, if you want to get them into that type of deal using creative financing, you still need to underwrite their ability to repay. My rule of thumb is I don’t ever want to see anyone spend more than 25% of their gross income on housing. Because if you spend more than that with inflation, you’re eventually going to be living hand to mouth because most people’s wages don’t go up, just like you pointed out.
A better scenario for that, let’s just, we’ll go with the assumption that they can’t grow into the ability to repay that. An option for them will be house hacking. So if we can get them into a duplex or some other form of small multi-family or a single-family that has a short term rental component, like an in-laws suite that can be used as a separate rental unit or a house with really nice common areas and big bedrooms that they’re not going to use, or we can do it, as furnished housing for travel nurses.
In that case, once, you get the ability to repay by introducing another revenue stream into their housing strategy. So if they can make a thousand bucks a month off of two extra bedrooms, renting to nurse travel nurses which your market is full of those. There’ll be, they’re happy to pay 500 bucks a month for a furnished room there, as long as they don’t have privacy issues with that.
But if you could find an owner finance scenario, even in that price range that adds an income component that I can see making that work and putting it together in good conscience, that they’re going to pay the seller. And, you can even get them refinanced. Like if the seller has, if they want a balloon and then one or two years, as long as this family can maintain their income and can keep their credit where it is usually with two to three months of rent rolls and PNLs on the business side of the property, if you can show a community bank or commercial lender that it’s at least a 1.25 debt coverage ratio or better, they’ll probably refinance that note. And it might be on the commercial side and it might be up for review or renewal every five years. In this rate environment, if you have to do it on the commercial side, but that’s a creative way that I could see you getting that done, like get them into a property near a hospital near a convention center, near a nursing home.
Where you would have a steady flow of people that you know, would get would like those short-term rentals.
I’m not sure if this company is in your market yet. They’re based out of Atlanta, I believe, but there’s a company called pad split and they specialize in this. You master lease the asset to them and then they lease it out room by room.
You might consider talking to pad split to see if they’re in the Seattle market. The big benefit there is your homeowner doesn’t have to manage, like they, they just master lease the space. They get paid, regardless of whether it’s vacant or re are leased and pads split does all the marketing, the check-ins checkouts leasing, they handle all that stuff.
And then there’s like travel nurse.com and a few other sites where they if they want to, self-manage where they can find traveling nurses. But that’s probably where you’re going to end up either that, or you’re moving them out to the suburbs. Like you’re taking them out to Monroe or. Right.
Right. It’s even expensive out there too. Yeah. I know. I had the opportunity to buy houses out there in the twos all day long, you know, just 10, 12, 14 years ago, and didn’t dare to do it. And now I drive by those same houses trading in the mid-seventies and I’m like, damn I know. And I’d seen small homes, $897 a square foot people are asking for in the city.
And my, are you kidding me? What shocks me? Yeah, way out on the other side of the park, those little two-bedroom cabins in Mazama are going for upwards of four and 500,000. Now in the middle of nowhere, there’s nothing out there, but there’s a country store and a fire, a firefighter camp. That’s it. But it’s nuts.
What’s happened to prices in Washington. a lot of money is in your economy there. So we have less than two weeks of inventory in our county.
And let’s see, Bruce Katt had also suggested Sheri suggested furnished finder.
And Kat, can you drop a link to that?
It’s furnished finder.com and I’m speaking with the company to set up an ask the expert. So look forward to that. Okay, perfect. See, we’re getting content on the schedule. We can bring them on and we’ll learn all about their service.
So good job. All right. Kris? You got a hand up.
Sorry, so many buttons.
[00:06:41] Using no-trespassing signs as a value-add to get face-to-face (Setting Appointments)
I just sent out my first group of letters last week and I made my calls yesterday. But I have a market question similar to Bruce where Bruce is. So I’m in Northern California and there are probably four to 500 realtors in my, general market. And like Bruce, we have about three weeks worth of inventory.
So I’ve been at this about seven months now and I’ve had one transaction. And I’m starting to lose faith because my, ultimately my goal in the next three to five years is to move to Northern Idaho. We purchased property there and we plan to build on it and move. But if I can’t generate any revenue, then I’m going to have a difficult time building a home there.
So I have a friend, a realtor friend in north Idaho who has a very different market. Inventory’s low for sure. But there is just not a flood of agents like there is here. I’m wondering at what point do I think about taking a risk and moving markets? Okay. Well, let’s first talk about your campaign results.
So when you made the calls, you found out. I had, I spoke to my very first call, spoke to her. She was very nice and they are, her attorney has told her to wait to do anything until they get the letters. So I asked her, I told her about some of the services we offer and she perked up and went, oh, okay.
And so I said, can I check back, in with you in a couple of weeks? And so she said, yes. So I wrote her handwritten note that I sent off this morning. The rest of them were voicemail. I had one who hung up on me. And then I had one call me back and say that she already had somebody helping her with that.
And I wasn’t expecting the call. So wasn’t prepared. And I think I probably, it was a missed opportunity, but to follow up with some questions, but so in both of them spoke to’s, one thing comes to mind as the attorney gave them sound advice. They don’t have the authority to do anything until they get the letter.
So that’s okay. That’s legitimate however, you don’t have to accept that as an objection, you can say, yep. He’s giving you good advice. It sounds like you got a great attorney. Listen, there’s one thing we do for almost every family that attorneys almost always fail to bring up and that’s making sure we get the property posted if it’s vacant so you don’t end up in a terrible squatter situation. So ask asked her if she had vacant insurance and they did, they had that set up already. Well, okay. That’s good. That’s shocking. Yeah. So the other thing is, do they have a no trespassing sign on the asset in California, this is especially important because people kick indoors, they take possession, and then you have to evict them, even though you didn’t want them as a tenant.
So it gives us a good reason to get over to the house face to face. You can buy at a dollar 99, no trespassing sign and ask them if they could meet you there to let you in. So you can tape it on the inside of the window. It’s just a small value proposition that allows you to get face to face and show them that you’re willing to go the extra mile and start that conversation.
And just looking you in the eye and meeting you and seeing that what you have to offer as real and as valuable to them, whether it takes two weeks or two months for them to get the letter, they’re most likely to call you and only you, if you can do that. So that’s just one thing I wanted to make sure of, cause you’re new to the community.
We haven’t talked about that in a while. And any excuse to get over there and get face-to-face with them. If they’re not if they don’t have the authority to try to do that. I’m curious when you meet with them again, I’d love to know how they learned about vacant house insurance because she said her mother, who was the decedent set that up before she passed.
I won’t be damn. Yeah. Wow. I’ve never seen a family be that proactive. So that’s a first for me in eight years, but good for you for bringing it up anyway, but yeah, so the no trespassing sign, if they’re not familiar with the laws like it can show that, Hey, this lady said things that the attorney didn’t even say, so it builds credibility.
It gets you to face to face and it makes you memorable.
[00:10:23] How to get started in a new market when relocating as a realtor (Real Estate marketing)
Now I’m assuming, you purchased the lot in Northern Idaho for a lifestyle move, right? Like you, that’s where you want to be. Yes. What are you, do you own where you are right now? Yes. Okay. And could you lease that home for more than the mortgage?
Well, I have my husband to think about. And so he’s, he, has a full-time job here that he, is committed to for at least another couple of years. So that’s why we go back and forth. The reason I was leaning in that direction is you’re going to have to work hard to make your place in any market.
Right. Whether it’s more than not over in Northern California, I would almost rather see you go ahead and get started on the market where you’re going to be long term so your momentum is there not here, right? Option one was, well, if you’re ready go now, like let’s get your home cash flowing and subsidizing your rental up there, and let’s get you into that market.
Doesn’t work for you. Another option would be maybe working that market virtually with a friend who’s in real estate that can go on the appointments. We have several people in this community that run the strategy virtually both what’s investment and brokerage. And the other option is just to commit to what you started here, stick with it, and let’s figure out how to break into that and, get you some closings.
[00:11:37] How real estate agents can make money right now by working with investors (Agent Tips)
Now, in addition to probate, what else are you doing to establish your real estate business? Are you working buyers? I have, I currently have a couple of buyers, but I have just been working in my sphere of influence. I have, an item of value and an email backup, once a month. And I’ve been doing that for seven months consistently.
Calling, what town are you in? I’m in Roseville, which is a suburb outside of Sacramento. Okay. So mainly. Primary residence, you don’t know. Well, no, there are quite a few rentals, especially in my immediate neighborhood, where I did start to farm a little bit. Yeah. But no, I was making sure you weren’t in like Truckee or Tahoe.
Okay. So predominantly residential housing, not short-term rental people were there because they lived there. Right. So one way to, and this is just so everyone listening understands, like what, like my thinking process, how much revenue do you have in the pipeline in the next 90 days?
Do you have any pending transactions at all? No. Okay. So the name of the game is getting you into and getting some revenue for your business. One of the, like one of the biggest opportunities it’s overlooked by almost every agent and broker in the country, is working with investors, and investors are better capitalized now than they’ve probably ever been in history because inventory is tight and capital is easy.
And it’s just a perfect storm, which is that’s, what’s driving prices to a crazy level. So if you can find investors, especially if they’re using OPM, other people’s money, they’re still paying interest on that and you can’t raise capital and give it back without an egg on your face. So they have an extreme motivation to be doing deals.
When you build a big house flipping machine or a big, long-term buy-and-hold portfolio, you have to maintain the velocity of capital. If you’re not growing, you’re dying instantly. So they have to do transactions. Otherwise, their whole model begins to break down. They have to let their team go. They have to give back capital.
So Sacramento is one of those markets. I’m very familiar with it. Tommy Christie’s a friend of mine he’s flipped over 2000 houses in that market. Aaron Amuchastegui did like, over 2000 there and the period he was there. So I’ve spent time. And up and down through there so that you have like Yolo Sacramento, you have some weird county names there too.
Yeah. There’s another one. I can’t think of it, but anyway, there’s a lot of, you have institutional investors. That was one of the first markets BlackRock came into, which is what brought you guys out of the 2011 crash. Before most people, most markets. So if you can get in front of those institutional transactions, if you can get in front of those investors that are using other people’s money, they have to find deals.
And what I want you to do is invite them to launch, take them to coffee, sit down, interview them, really understand. Okay. So tell me about, tell me what your strategy is. Are you guys doing long-term buy and hold. Are you doing fix and flip or are you doing short-term rental, turnkey rentals, like build to rent.
What’s your strategy
[00:14:30] 5 ways to find buyers right now (Buyers Lists)
And finding these people like on BiggerPockets or Facebook, you can go to the BiggerPockets directory and see all the people that are there. Hell David Green lives in your backyard, the guy that hosts BiggerPockets the co-host with Brandon. David’s one of the guys that I know in Sacramento, that, that is playing at that level, but that you have, I think two or three real estate investors association meetings.
To find the way something of value that you can bring to them. The homework is to get in front of them, learn what their capital is looking for, and then forget what’s on market. To find the inventory for them. And this is something that you can do. You can create a payday inside of 30 days. So if you say, if they say, all right, we’re looking for three bedrooms and these five zip codes under 500,000, we’ve got crews, If that institutional money is paying higher prices than mom and pop that is, doing their first flip or are working at lower volumes.
So if you can, if you find out exactly what the capital is looking for, then go to grab a tool like a prop stream, pull a list that meets that criteria, go door knocks, and the letters skip, trace them, make phone calls, but you can find the inventory off-market before they can potentially, and then just take it back to them.
And you’ll get both ends of that transaction. You can typically make 5% in California on a deal like that. Rather than competing with all the other listing agents on conventional buyer inventory, conventional listings. If the name of the game is quick capital go build a book of investors.
I actually, so grant Cox who works with us I’ve got an outline that I’ll share with you guys. I worked, I coached him on this for like 45. I don’t know. It was like 25 minutes one night. And I was he’s like, you’re gonna have to write all this down. I wrote it down. And then when I got done, I’m like, damn, there’s a whole course here.
I haven’t turned it into a course, but I will share the outline with you to show you. I think there are five different places. So the other idea that I shared with him as you hear me talk about community banks and the commercial lending side of small banks. Well, do you think that bankers know the guys in town that have multiple doors that are out holding 50, 75, a hundred rental properties? Those are the guys that are giving these guys money, right? So we can go provide value to commercial bankers, even if that’s in the form of a cup of coffee or lunch. At first, they’re used to networking with their salespeople they’re unemployed every day.
So let’s get to know these community bankers on the commercial side that are working on real estate loans and let’s let them know-how. How hungry we are to go hunt inventory. They have a twofold incentive. One. They get the social credit for connecting the investor to someone who can find inventory they’re not finding. Two, they get the right alone. So they get paid. So they’re incentivized to introduce you to their top investors because if they’re not finding inventory, they’re not writing new loans and that person’s not getting paid. So there’s a strong incentive for lenders to point you to their best buyers.
So you can bring them deals back to the table to write loans on. And there was, there were a few other of those, but I’ll pull that out. And at least give you that for now. Or you have like five ways to find buyers today to go generate capital. Okay. Keep your foot on the pedal with probate though.
Don’t get discouraged. Like I’m never going to get that can done you quitting. We might try different things, but don’t let off the gas. If you’ve gotta be there for two years there’s a lot of opportunities, in that timeframe, like you might, it might take you four to six months to get up to, a level of where you’re getting two and 3% conversion rates every month, but stick with it. And the other thing is, remember the core stage is two things. One is marketing to the family. The other is building your referral network. So if you feel frustrated and you’re. Like worn out on the phones, the hell with it, get off the phones and go meet some attorneys, go generate some referrals, walking to the attorney’s office and, ask them if they would sit down with your referrals to discuss a living trust and start to, use that work on that for a while.
[00:18:31] Script for prospecting Assisted Living and Senior Living Sales Managers (Real Estate Lead Gen)
If you get exhausted, both prospecting and marketing, go work on building your referral network, stop in nursing homes, those people, again, the incentive is their base with commission. So all of those nursing homes that are in that market, those people have to figure out how to get heads in beds.
And it’s fiercely competitive. Go get to know those people, figure out what facilities, take a tour of them and say, Hey, listen we help a lot of families in probate. A lot of times it’s the surviving spouse situation. What’s a fixed income. We liquidate the assets and get them ready for Medicaid payments faster than anyone else in town.
So next time you talk with a family who has assets but can’t qualify for Medicaid. Why don’t you let us, let my team go to work? We’ll get it closed faster than anyone else I’ve ever seen. And they have an incentive to give you that referral because if you can get the house sold faster, then they can get that capital and then they can get the Medicaid payments.
So if you get discouraged, just change gears and work on the referrals, the referral networks out of the business for a couple of days, or have a week until you feel like you feel re-energized to get back on the phone. Okay, thank you. Yep. All right. And let me see. So Nina said, I just got a call from one of my institutional buyers.
[00:19:45] Land parcel wholesaling: N agreements and mutual non-disclosure (Wholesaling Probate)
All right. Fed you or you were up next brother. How are you, Mr. Corbett, how are you? Doing well, how can we help you today? I have a question regarding, I guess it’s a wholesaler slash development deal to make a long story, short someone that I work with that I’m helping actually, I’m coaching them a little bit.
He said, Hey, I have this deal. I don’t know how to structure it. So I ended up speaking to the guy who has the deal in his hands. Turns out it’s a wholesale deal. He has a parcel of land. I tried to ask him as many questions as possible but found that he has very limited information.
It almost sounds like he spoke to the owners, drafted an offer, and just put Chad Corbett or assignee, and he’s trying to assign it to someone else. Right. He told me he wants to net a particular amount of money. For the property. It’s a parcel of land with two APNs and each APN is three lots, which means it’s six, six, lots total.
And they’re all zoned R one. So I have an idea of which developers I would like to pitch this to, but I wanted to see if maybe you could guide me, guide me into how I should structure when presenting to the developer in-house. So for example, I was thinking of driving to the lot, just to see what we’re talking about.
Cause one of my main questions was how much of the parcel is on a slope. Whereas how much is it on flat, right, to see the scope of work. Some investors like to build on a slope, some don’t right. And from there, should I be going to the city and finding out information? If so, which information should I be asking for before pitching it to the developer?
I hope that made sense. Do you know these developers? Well, their strategy, is it my middle-of-the-road, housing, luxury houses? One of them is cool with either tearing down or remodeling and doesn’t mind slope. The other one depends on how steep of a slope it is. So that’s why I just wanted to get a little more information.
And also because there’s no mandate or AK listing agreement, I want to make sure that pitching it to these guys. I’m covering my behind and my time and my work that I’m putting the, I don’t know if I should be providing them with a non-circumvention agreement or some type of…
So here’s what I would do. I would get a, like, just a mutual nondisclosure agreement. And I would say, guys, listen, I’ve got an opportunity. I’ve been to the site. I’ve talked to the city, I’m going to send you a video before I can send you anything. Can you please just say, I just sent you a DocuSign with a mutual nondisclosure because I don’t have this deal listed?
I want to make sure that we’re clear, I’m not brokering the deal I’m simply introducing you to. And that should be reason enough. Excuse enough. To tell me, like yeah, sure. Send it over. If they don’t, they’re probably not the right buyer to work with anyway, because they’re going to go around you eventually, if not on this deal and.
But just get a, you know what I have a mutual nondisclosure noncompete that spans, I think, 10 years. And when I have a new relationship, I’m like, I just, we’re going to be doing deals all the time. Let’s just sign this and it covers us both ways and I’ve never had anyone say, I’m not signing that because people that already felt like I could trust, and that just validated that. So you can do that to protect yourself. It’s only as strong as your will to litigate it. If they do go around you. But typically it’s, it’s, they’ll have the respect that you don’t want to be an issue. I don’t think I ever have. Would you rather get paid now on these, or would you rather have 12 new construction listings in the bank for two years?
A year before. I’d probably go with listings, to be honest, I figured it was a bit of a rhetorical question. I thought I knew the answer. So I wouldn’t even worry about papering yourself into the middle of this and, and worrying about the logistics, the legality of the paperwork, let the wholesale like get the mutual nondisclosure noncompete or non-circumvent, and connect them directly with the wholesaler on and get a commitment from them that you, and you’re like, listen I’m going to do you a solid here.
You don’t even have to pay me on this deal. If you sign a non-circumvent non-disclosure and promise me that I can be your disposition listing agent, I’ll turn this over to you. And I’m not going to, I’m not going to put any markup in the deal. I would just like to list the homes and sell them when you’re finished. And they should respect the.
Yeah. Yeah. Because every other agent is going to be trying to get a 3% buyer agency fee out of them. I liked that. You said that because my next question, since I hadn’t thought about the suggestion you just made, the next question would have been, since the wholesaler was saying, Hey, look, we could go about it two ways either we, wholesalers, I, the wholesaler and my business partner are either open to selling it and we want to net X amount. So you can mark it up as much as you want, as long as it makes sense. Or we are also open to doing a JV with your client and, split, splitting the cost.
But I do like what you brought up a lot more than just creating markup and just kind of getting rid of it. Yeah, so I would give them two options. I would say, you guys can buy this cash for this price, or you can bring these guys after they’ve signed the non-disclosure, non-circumvent. You can get it for this price cash, or you can get it for this cash price and bring these guys along for the ride.
And we can, just make sure they’re limited partners on the operating agreement and close it into a fresh LLC. And we’re going to have a single-purpose entity for the subdivision. And, if, as long as you make them LPs, they don’t have voting rights, they can’t interfere. And that should be a structure that would work for your developers.
If they do get desperate for cash or, delays happen, and they’re impatient, as long as I sign that operating agreement and accept the LP shares, and they’re at the will of the developer, whenever it’s done and they don’t have voting rights. So you could keep them as quiet partners.
That’s thank you. I appreciate that a lot more here now. Thank you. Yep. All right,
Nina, I saw your hand up. If you’ve got something you’ve been, I was just going to ask two, well, two things. If I can jump in real quick, one was, did you, were you offering.
Kris something like, you were going to send her something or point or somewhere to an outline of what you were recommending before. Yeah. I have a course outline for building a buyer book within 30 days. I’ve gotta, I’ve got to find that, but I’ll include, I’ll give you guys access to that.
Yeah. I’m trying to do a couple of strategies with that. I’ve been connecting with a lot of attorneys, which has been great, but I’d like to see that as well. I’d appreciate it. The other one is one I had,
[00:26:39] How to follow-up without losing momentum (Lead Gen)
I was at an event this weekend with a bunch of investors and some of them wholesale somebody who there’s a variety of things and they were all complaining about the fact that you know, my mailers, aren’t getting me a lot of activity and I’m of the mindset that the mailer is about mind share. It’s great. If you can get organic leads from them, it’s about the repeat repetition of touches. And I think even in the course, you’re you talk about doing at least 12 touches. But the whole idea of getting those touches out there is so that they keep seeing your name because eventually, they’re going to raise their hand.
And they’re just going to find one of those cards or letters in the pile and that’s who they’re going to call. But if you’re doing those touches and calling them, you’re getting, you’re going to get the deals done is my understanding. When we send the letters like we think it’s just a direct response marketing campaign.
That’s not always true. I think by this point, you guys have probably all heard my very first probate deal story with Pam. And the reason I got that deal is the letter was hanging on the refrigerator. So had I not been mailing and just calling, she called and said, don’t ever call me again, leave me alone.
But that letter stuck around, it was a branding piece and it stayed on her refrigerator because it was an ingredient card envelope and handout addressed. And that warning looked important
anyways. So you can, some trust me I’ve had, I had my longest stretch was two months with zero response from letters. And I thought, damn, this quit working because it was in like 2013. And I had like one solid year of consistent success with it. And then I just went dry. I was getting nothing.
And I was like, man, it finally quit working 60 days with nothing in the mailbox. And then all of a sudden a round of letters hit and I listed like seven properties in 2 days. And it caught me back up, got my average caught back up. But if, just like with, the advice I gave Kris if you’re discouraged, consider that every piece of mail you send is also a branding impression.
Even if it didn’t elicit a direct response, it’s different than the other mail they’re getting and they paid attention to it. If you do this long enough, you’ll notice at around the six-month mark, you’ll start to get, become list, may come by my calls and that’s those you don’t even know which list they came from, but they’ve had, as an investor, as a passive investor, I have underwritten sponsors.
And I know where I’m going to invest money a year from now, six months from now, two years from now, but I might not have the liquidity to meet the minimum. Like I know there are places where I’m going to place a $200,000 investment. And without a doubt in my mind, that’s where that capital’s going when something else has sold.
But I don’t have any reason to call them right now, but in my head, they’re the only sponsor in that asset class that I’m going to speak with. And I find that in probate, it’s the same way. It’s much simpler than that example. Like they know who they’re going to do business with. You’ll hear from them when they’re ready.
So the letter is a branding impression and I have tons of people that say, listen, we got your letter. It’s been almost two years ago. We just held on to it and now we’re ready, but we got to get this done like today. And when they finally make that emotional decision, you can’t get it sold fast enough.
So anyway that’s good encouragement. Good advice that the letter is a good branding impression that sticks around. So even if you quit calling six months in that letter might still be there a year later. The day they’re ready. Yeah. It’s getting a Mindshare. Thank you. All right, Dave Gwinn,
sorry I called you up and then booted. No worries. No worries. Thanks, Chad.
[00:30:05] Transaction engineering: Medicaid, tax-deed redeemed (Transaction Engineering)
I am working on one. Do you need to do a follow-up with a lead that it’s an interesting series of events that are going on with this particular deal? Talking with the son of the woman who owns the house now she’s still alive.
She’s in a nursing home. It’s being paid by Medicaid and somehow her house went to tax sale. They went through the whole process and redeemed the property. As far as the certificate holder got title treasurer’s deed to the property and they, oh man, it was 17 or something. And what’d your redemption period in Colorado?
Are you a tax lien or tax deed? We are a tax lien state with three-year redemption. So it was the treasurer’s deed issued to the lienholder. However, they filed an invalid Demian, an invalid. So it came back to the mother’s name. Who are they? The county? The son and with the mother filed, there was some statute additional statute that if someone’s disabled, they have nine years.
Yeah. So they were able to do all that. But the attorney that helped him, wasn’t very forward-thinking because now what are they going to do with the property? Because the nursing home finds out that she now has a property, they’re going to, well, Medicaid is going to stop. Yeah. So he’s in this gray area of what to do?
Yeah. And that’s what I’m trying to, what’s the moral, ethical thing to get him because yeah. He’s got to get off the pot and move forward one way or the other did it too because if it’s a demo deal, it’s a tiny little house it’s cracking up code violations. he’s either paying, I can’t remember what the new taxes are on it, but they’re coming due here and
yeah, I got a few of them that would probably take it pretty quick. Okay. And you can trust that they’ll write an offer? Well, I would probably wholesale it. Okay. I would say, listen, you’re talking about a $10,000 a month to risk in retroactive payments.
So what equity you have is short-lived, you can either sell it and, they’re like, they’re not going to go audit property records after the fact, they just don’t have that much of a, that much of a staff. It’s highly unlikely. What I would say is, listen, I think it’s in your best interest to sell this property immediately.
Let your attorney tell you what to do with the proceeds. If I were you, I would put them in escrow, or even just in simple savings account for 12 months, just in case. If you don’t liquidate it, you know where the money’s going. If you do liquidate it and you hold that money in escrow or hold that money in savings, then if no one comes and asks for it and maybe even waits until your mother passes, then actually, you can move that, but here’s an offer.
Let’s get you out of the way of this thing. All right. Because I think he has power of attorney for her. Yeah. Okay. The other thing, trying to think of what is probably not a JV opportunity here, because if Medicaid would somehow come back and attach to it, it could kill your deal.
Yeah. So yeah, it would have to be in her name, and then yeah, advise him to hold onto it, put it away until you’re further down the road or until she passes. And then I would almost, let your buyer, and you may want to be proactive. Do you have a good attorney, a good real estate attorney that will help you with this?
Yeah. I would ask them, what happens if we close the transaction and then Medicaid comes back, can Medicaid attach a lien to a property that’s already conveyed? That’s not in, in the patients, you know, the beneficiary’s name. I think the answer is no, that’s just their oversight.
But I would ask an attorney about it. If they say, yeah, they actually could do that. Then what I would recommend is wholesale it to a developer that can afford to land bank it for a year, oh, okay. Yeah, I guess, yeah. Go maybe a title and ask them. Yeah, I might. If you could find an elder care attorney, they should be able to answer that question.
Okay. Perfect. All right.
Sherry referral too. Yeah, exactly.
[00:34:12] How to prospect assisted living and senior living placement workers for referrals (Real Estate Referrals)
Sherry, how can we help you? Thanks. This is my first time asking a question. I’m a newbie, a new face. Welcome. I am. I just finished the course and thank you for all that work that you put into it. So when I go to call on assisted living or, senior care homes What do you call it?
Assisted living nursing care, those kinds of places. Do I just drop in unannounced or do I call ahead and try to make an appointment? What do you recommend for that?
Pre- COVID, it was always just drop-in. It depends on what COVID protocols. Our states are easing up now. mean, Everybody’s just kinda like, ah, we’re going to live with it. So it’s the environment is changing quickly, but in nursing homes, honestly, the highest level of security I’ve seen on any building was a nursing home. There’s a higher-end nursing home in Roanoke, they set up a, like a blockade.
They put us in a glass booth and, a gate at the opening of the parking lot. I’m like, what are you guys doing? And they’re like, it was like going past the government checkpoint. So they took it very seriously and that was, that’s the one like the nice nursing home that everybody hopes they can go to.
So depending on what that’s like, you may have to do this over zoom, just reach out in an email and say, Hey, I know a lot of facilities are COVID sensitive. I want to respect that. But there’s something that I’d like to talk to you about as a mutually beneficial business relationship.
Here’s the link. Do you use Calendly or any other type of scheduling tool? I don’t right now, but I can. So C a L E N D L Y. There’s a free version that you can set up one event type and just call it a meet Sherry and make it a 30-minute conversation put a headshot in there.
So when they open the link, it’ll show your headshot, and then just do a little bit of explainer copy. That way you can email them and just say, listen, please schedule a time. That’s convenient for you. So if in, instead of face-to-face prospecting, try to do it over a video call and make scheduling as easy, easy as possible for them using a tool like Calendly.
Okay. Great idea. Yep. Another thing you guys can do. If you take that advice on Calendly, you can grab the embed code, go over to your website, put it on your homepage and say, have questions about our service, book a call now, and instead of the call to action being, call me back or, fill out this web form.
it’s becoming more and more common for people to remove their phone numbers and have inbound bookings only. So it’s another way to get conversions off of certain people. If you have Calendly set up, be sure to embed that on your homepage as a call to action.
And you could present it. However, you want. You can create a Calendly event for free probate consultation. You can call it whatever you want. You could have, a probate professional consultation or probate family consultation, and you can give them a link where they can see both types or you can just show them the type it’s relevant to them.
But, for example, if they clicked on a scheduling page and you had, probate professionals and probate families, it’s going to give you even more credibility because they’re like, oh, they have a place for attorneys to schedule them.
Yeah, it sounds really good. Yeah.
[00:37:19] When to leave voicemails when calling real estate leads (Real Estate Prospecting)
Kris says, what level of value does a voicemail have? So again, it gets frustrating leaving voicemail after voicemail. For me, like if it depends on call frequency, if you’re calling on a David Pannell aggressive one call every day for the first seven days, leave a voicemail the first day or the last day, don’t leave one every day.
Then you just become a thorn in the side. If you’re calling once a month, always leave a voicemail. It’s just another branding impression. They’re not going to call you back off of that, not likely off of the voicemail. However, it’s one of those brand impressions. So as we talked about in the course, 83% of sales happen between marketing touch, branding, touch impression, number seven and 12.
So just think of it as another impression and what I’ve found early on in my career. Even before probate, I thought I’m a salesperson. My voicemail should be trying to sell something. And that’s ignorant. The only point of a voicemail is to get the phone to ring back in this direction or to make a brand impression on them.
So voicemail after testing dozens and dozens, my voicemail has always been the same. Hey, this is Chad. I sent you a letter last week, but I had a couple of minutes off my desk. To see if I could catch you give me a call and you have a chance phone number, that’s it. And you’ll get more callbacks what’s that than any other message I’ve ever tried.
Now, sometimes there’ll be, remember when we talked about the probate USP, they want the objections we’re defeating proactively as who are you? What can you do for them? How did you get their information? So be prepared for that. If you’re leaving vague voicemails like that, be prepared to meet those objections of who are you, how did you get my phone number?
What do you want? Because you’re not telling them in the voicemail, why they should call you back. So just understand they might be up on the balls of their feet and have their claws out when the phone rings, but you’ve taken Probate Mastery, you’ve got a strong offer and you can stand up that conversation without a doubt, but leave a voicemail.
If you took the time to make the call, what’re another five seconds, 10 seconds.
[00:39:22] Cold calling probate leads like you’re circle prospecting (Probate Prospecting)
Katt shared something, David Pannell was generous enough to share a call recording with a prospecting call he recently did. I loved how you entered that call, Dave. It was so simple. Like, Hey, know anybody that’s got a property for sale?
Nope, no I don’t. And how he talked to you like that was a great entry point. Non-threatening you didn’t introduce yourself as a broker. And he just said, Hey, you got, anybody’s got a property for sale and he jumped right on that, circle prospect. Now sometimes I call the probates and I just circled prospect them.
And that’s just calling to see if they’re looking to sell a house, especially the older probate leads. But yeah, for anyone who hasn’t heard that Katt just dropped the link in the chat and you can find that in the show notes if you’re watching this recorded
And next up, we got Roger.
Yeah, we’re good. Thanks.
[00:40:07] Tricky probate situations: Trespassing, stolen vehicle, and pay-at-close probate attorneys (Probate Deals)
Hey, I had one drop in my lap and I want to make sure I don’t screw it up. And at this point, I’ve got permission to post no-trespassing signs, and I’ve already talked to her about getting unoccupied home insurance and trying and refer her to an attorney.
Some of the things that have come up, she’s a. She’s in Illinois, I’m in Jacksonville, Florida, and she’s in Illinois. Her son passed away a few days ago and she’s called me. She was referred to me by a friend and she’s called me to help her out and I want to try to help her out. But she’s on social security.
She’s 82 a tank. And so she doesn’t have a lot of money to spend on an attorney or probate. Is it common to get an attorney to take fees after the settlement of the probate as opposed to upfront or so? I want you to call Al Nicoletti and you’d tell him Chad needs. Okay. I know we recorded the show with Al I don’t even count.[Check out Chad Corbett on the Al Nicoletti Show]
I don’t even remember if that’s been circulated. He and I did a podcast one-night last week. But he’s, he seems like the kind of, and he’s running a good business. He could afford to do that. I would reach out to him and say, Hey, is this something you’d be willing to do to help this lady out, to not taking upfront payment and get paid off the back end of the estate because there’s equity.
Right? Yeah, there’s a house free and clear. Yeah. So he knows he’s gonna get paid. It’s just, he can afford not to get paid upfront. He’s hungry. Right. Right. Okay. And do you have a, do you have a list? I thought I had something that showed a list of all the sequence of events to go through, to help people out with this stuff right on through the close of the purchase of the property, or everyone’s a little bit different as the house vacant.
It is okay. Is it cleared out or cleared out? Somebody has already broken into the house. They stole a car. He had a brand new car. The guy was found dead in his living room chair. I guess he had a heart attack or something. Nobody knows he’s still under autopsy, but since then somebody has broken through the bathroom.
I think he said, and I said, well, that’s all the more reason for us to get to no trespassing signs put up and get, make sure the house is secured. So I’ll talk to him now. The neighbor has a key, the neighbor has replaced it, but it’s on front and back doors. So I’ll get with a neighbor and arrange to get to the science, put in tomorrow, call Jacksonville PD, and ask him to do the drive-by two on each shift.
Okay. Mike gets the neighborhood used to seeing a cruiser three, four times a day.
Your next step is the personal property of value or junk? I don’t know most, I probably junk at this point. I think they went through the house her, his mom and brother came down last week for a day or two and went through the house and she was getting a lot of sentimental stuff, like when he was on the all-star team in high school and that sort of stuff.
But other than that, everything is still in the house. Okay. Was the car that was stolen? Was it insured? Yes. How does the premium, has the insurance payout been received? No, it was just recently stolen. And she’s gone through a catch 22, I guess you’d call it now with the police department and the fact that she wants to report a stolen, cause she’s not the owner of the car they’re being wishy-washy about, well, you can’t report a stolen cause you don’t know if he might’ve loaded somebody out of it yet as she petitioned for probate.
Okay, make sure that happens. Make sure that happens as soon as possible. Get the letter, get the letters in her hand, and then the police she has the authority to talk to them right now. Petition for probate attorney will take care of doing for Al can take care of that because she’s out of the market, right?
She’s not in, right? Yeah. She may have to fly down there anyways, but Al shall be able to petition for probate and get the process started. You’re probably a week or two out on getting letters. But once you get those letters then hopefully by then the insurance premium or the insurance payout check will be back into the estate’s bank account.
And we can use that money to pay for clean-out and pres and staging maybe. Is it worth staging? Is it a decent neighborhood? I haven’t looked never know in Jacksonville. Cause you have like 1950s trailer parks with monster trucks in the front yard, beside a $4 million houses.
Like, so you never know what you’re going to get in that more. I don’t think that’s an area where I have not to say it’s not a good neighborhood, but it’s I’m not sure if you’re familiar with the area, but it’s just north of
university, north of the university.
Most likely buyers the landlord then, right? Yeah. Yeah. Okay. We can simplify the strategy. Do you have a buyers list? Do you have landlords? I do know. I do have a few. Okay. I would call them first. I would let’s do you want to, you want a broker it or do you want to buy it?
I was thinking of buying it to a flip or a. Okay, perfect. Then this becomes an even simpler strategy. I should ask better questions in the beginning. So let’s get the property secured, make sure that they filed an insurance claim and there’s a police report. As soon as they get the letters and that money comes back into the estate.
I would write her an offer as is where is. All personal property is conveyed and makes it as simple as possible for her. But remember to say, listen, we got that insurance premium. So I’m factoring that into the price. I’m also factoring into the price, the fact that I’m taking on all the expenses, I’m not making you take on.
And the best, like what I believe is in your best interest because of your age and because of the limited cash that you have as let me just get you out of this quickly and you can settle this probate. And so you’re introducing her to an attorney. You’re getting the police to back you up.
You’re getting, you’re helping with the insurance claim, making sure she’s, getting what she’s due and then like value. Here’s my cash offer. And after doing all those things and not ordering, I can’t imagine she wouldn’t sell it to you. Right. That sounds like a great opportunity.
So I would also, look and see if it’s, it might be a better rental than a flip if it’s in that neighborhood. I don’t know specifically the neighborhood, but I know, you can sell anything under 400,000 in Jacksonville right now. And I think the estimated that for purposes of assessment is about 145,000.
And it’ll go for a lot more than that, but right. You would have a garage. I don’t know. So a lot of those homes and those types of names, that area where sender block three bedrooms with a garage, and you can convert that garage to a bathroom and two bedrooms and drive the value through the roof of the rental.
Greg Cohen, I can’t remember his brother’s name. They do that down there. They do a turnkey portfolio, turnkey rentals for out of state and international investors. It’s a fantastic model for that part of town like I’ve walked, Greg Cohen. And his brother, I can’t remember his brother’s name.
They’re about my younger guys, but I’m there. If you can see how they do their houses, they’ll do you know, they pretty much do roof windows, mechanicals bathrooms, kitchens. They do almost a retail level rehab and then ran it out at a much higher rate. Cause they added two bedrooms. But in Perry, Winkles those little, three-bedroom bull block with a garage.
Right, right. Shows on the property record. It’s a three-bedroom, two-bath and it does have a garage. Yeah. So you got upside. Because that’s and they proved it to me. Like I’m like, why would you give up the garage? It’s Florida. People are going to want a garage. Nope. Not if it’s a rental property, people want more bedrooms, so you can make a five-bedroom, three baths, and it’s probably going to drive your rent.
I don’t know where he is at 1800, 2000 a month. And what do you think, what do you think you can buy it for? I don’t know based on the 142,000 just market value. That doesn’t mean anything. Right. I don’t know. I’d have to look at a property as he went to a condition over there and everything.
No sound like one you can get into probably well below 80 grand. I would bet a lot of details, a lot of blanks that need fill it in. But imagine if you get got the house for 80, you put 30, or put 30 into it, let’s say you put 40 into it. So you’re in it for a buck 20. What’s your debt service on that 6 5700.
And you’re getting 2000 a month in rent. That’s a pretty good retirement house. Positive cashflow, huh? Yeah. Yeah. Awesome. Appreciate your time. Yeah, absolutely. It sounds like a great opportunity. You found. Thank you. All right. Let’s see. So Katt dropped the link. Roger, if you want to listen to the conversation between Al and me, she dropped that link in chat while you and I were talking.
And I think we got a clear queue. I don’t see any hands up. Questions are answered. So guys. An hour goes fast with you guys. We always have interesting conversations. So I appreciate your contributions. Bringing you’re bringing your challenges and successes to the table. Hopefully, you all got some value from this.
We discussed a lot of different ideas and we’ll get you rather than send you a word doc. I’m going to have Katt and I are going to work to do we’ll turn that building the buyer’s list into a handout. So it’s a little better than just, one of my typical outlines. Like a course handout on how to build an investor buyers list for fast cash on the buy-side of the business.
All right, I’m going to get and go see how they’re doing sawing, and I have to cut like 12 windows and doors and my concrete house, the one that I just tore apart last week. So don’t you wish you were me? I’m going to go do that now. I’ll talk to you guys next week. Have a great day.