In this episode, Certified Probate Experts share tips on how to make more money in real estate without working so much (Quit your job!). Chad Corbett and the group mastermind solutions for dealing with call reluctance, pre-foreclosure timelines, and choosing a good real estate brand name. The group discusses how to build a scalable real estate business that can be sold at a higher valuation when you’re ready to retire, and why probate leads are a great source if you’re looking to do wholesale deals, small business acquisitions, or fix and flips.
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Training Topics In Next-level opportunities through Probate Real Estate: Certified Probate Expert mastermind
0:00 Announcing new course: Mapping Your First Million with Aaron Velky (Wealth Building Course)
2:01 Asking neighbors about vacant property owners (Driving for Dollars)
4:51 Drop bys for tax sale property leads (Tax Sale Leads)
9:52 Sub2 financing a pre-foreclosure property that hasn’t been probated (Probate Deals)
13:25 Probate real estate for investors (Listing Appointments)
17:54 How to work by referral only as a real estate investor (Referral Networking)
22:15 Launching your probate prospecting system and probate website (Probate Prospecting)
26:00 Are probate leads good for wholesaling and investing? (Probate Investing)
28:34 How to refer out buyer leads you don’t have time to work (Qualified Buyer Leads)
29:26 Should you scrub probate leads? Skip calling surviving spouses/widows? (Probate Cold Calling)
32:49 Choosing a domain name for your probate credibility website (Probate Website)
35:34 How to scale for 100 real estate transactions a year (Business Development)
46:27 Disclosure for real estate agents that invest (Probate Branding)
51:51 Propstream Notice of Default Data (Motivated Seller Leads)
53:36 Small businesses and commercial property in probate (Commercial Real Estate)
Resources for this Real Estate Coaching Session:
- Intro to Probate Mastery Webinar: Probate Fast Track Webinar – Probate Mastery
- Take Chad’s Probate Course and get Certified in Probate Real Estate
- Facebook Group: Estate Professionals Mastermind Group
- Alumni Group (For students of the Probate Mastery Course ONLY): Probate Mastery Alumni Group
- YouTube Channel
- Probate and Pre-Probate list providers
- Try Propstream Free
- Recent content:
- Episode 60 Live Real Estate Coaching: Probate Real Estate Opportunities: More deals, better career (probatemastery.com)
- Pre Probate Leads vs Probate Leads: How do you market to them and why cold calling isn’t the best: Watch on YouTube
- Relevant content to topics in this episode:
- Reverse Mortgages?! Ask The Expert with Jason Eichmiller: Reverse mortgage and probate real estate: Help heirs with Mom’s house
- 6 Things to Consider When Choosing a Domain Name for Your Probate Website | LinkedIn
- Hire a Real Estate Coach: Bill Gross – https://www.youtube.com/watch?v=Vq-MeClzFdU&t=32s
- What does it take to map your first million? https://youtu.be/z_UJpqbrMMo
- How to leverage equity and debt to buy more properties: https://youtu.be/hRCwfD10T58
- Cash buyers for real estate deals: How to find them and build a GOOD Cash Buyers List. – Probate Mastery
- How to Buy Small Businesses and Commercial Property in Probate
EPISODE TRANSCRIPT Make more money in real estate: Tax lien investing, probate sub2, and building a scalable brand
Probate Mastery Group Coaching: Episode 61 of Estate Professionals Mastermind podcast
Mapping Your First Million with Aaron Velky [00:00:00]
All right. Welcome everybody to the weekly probate mastery group coaching call the estate professionals mastermind podcast. I want to get started off this week with an announcement. We just yesterday released our first ever third-party course. I have a big ambition to help everybody here work less, earn more and do good.
And I don’t always have the time to create all the courses I wish I could get out of my. One of those is actually that step by step, how to actually get to accredited investor status, where you hear us talk about syndication and some of the more unavailable, alternative investments.
So my friend, Aaron Velky who’s a fellow mastermind member and he’s a real estate investor. He’s achieved financial independence in his thirties. He’s got an eight year head start. So rather than reinventing the wheel, we collaboratively released his course ‘map mapping your first million.’ It’s not part of the probate mastery assets, it’s under Magnum Opus project, the bigger company that also holds probate mastery.
We’ve got people at all levels of their journey here in the real estate and wealth creation, We have fun talking about the accredited investments and the more sophisticated things, but I felt like I needed to have some offering for people who are just getting started in that journey.
Unfortunately, Aaron, couldn’t be here today. You’ve got some live engagements that he’s he’s hosting. But that course is available now. And it’s something that I’m happy to actually get out to you guys. Because if you find yourself in a position where you feel like that’s an unreachable step, like just getting a real estate business off the ground, this could be a good course.
The other thing that we, so I want to address coaching. What I will say is whatever coaching you guys think you need. If you need it, if you want additional help, if you want more attention, if you want more accountability, we’re looking to design the product for you or the service for you.
So if you could share your input to email@example.com, in the chat, the social posts, wherever, just however you can get that to us. If you need a higher level of attention, and you want to work with a proven coach just let us know what that is.
uh, Ryan, you’re patiently waiting here at first today. How can I help
Asking neighbors about vacant property owners (Driving For Dollars) [00:02:01]
Chad? How are you doing? I’m doing all right. So I have a question about properties where I can’t get in touch with anybody basically. Like friends of mine who know that I’m learning about probate now are coming to me and being like, Hey, like I have this vacant property, I’ve looked into it. There’s nobody I can call. I’ve called everybody who is available. And either nobody’s answering or nobody’s, or there’s nobody to call. What is the next step that I could take towards these are probate houses or you just talking vacabout ant property leads? They’re probate.
There are a few different situations, but a few of them, like both owners, are deceased. no, close relatives. You’re the source of the deal or the prospective deal would be driving for dollars or just being aware of a vacant house, knowing that the death occurred not necessarily on a probate list.
One of them I know for a fact is in probate. I did just check. Okay. Then, in that case, you know who to call, right? Yeah. That’s a different situation. Yeah. Okay. So on, on the vacant houses, and this is really across all vacant houses, I’ve found the easiest way is to just close your laptop and get in the truck and just drive to the are, is it in your market?
Yeah, I went in the house and I think there was a squatter in there. It’s a hoarder’s house. It was disgusting. It was But there was like running water upstairs. Some of them.
What I’ve found to be most efficient in doing this detective work is just talking to neighbors.
I’ll typically start by knocking on the doors and being like, Hey, listen, a friend of mine has told me to check this out and see if I can help this family. Who owns that? When’s the last time you saw them? How often are they here? Who’s getting the mail just starts asking questions.
Neighbors usually know. Sometimes they won’t, sometimes the communities are, they don’t like people don’t know each other exists, but a lot of times you’ll get the whole story. Even when properties are vacant, there is usually somebody from the family that’s, estranged…
They may not even care that that person has gone, but they’ll be in the line of succession. So they have an incentive to file probate so you can make them an offer.
But that’s how I’ve had the most success. There are skip tracing services. You can look at the names on the title and then use something like Spokeo or Intelius or one of the other million tools to try to find known family members and then try to call them. A lot of work.
If it’s a really big deal and one that you want to get, some private investigators actually will do a full investigation to find all of the people in the line of succession and, track them down for you, but you’re going to pay for a service like that.
Look at the probate records in your town. And then next would be, try to talto k to neighbors and get direct phone numbers from neighbors.
I have also done things like I’ve taped pieces of paper inside the storm door.
So it can be seen from the road. People who are familiar with the property will oftentimes just drive by. They know, they know it’s a mess inside. They don’t need to go inside, but they still drive by or Nate or someone drives by and checks on it for them.
Drop by for tax sale property leads (Tax Sale Leads) [00:04:51]
I’ve done this effectively before tax sales.
What I’ll do is just write a letter. I’ll take the letter that I would normally mail and I’ll put four pieces of tape on it and tape it inside of a window. If there’s a storm door, it’s ideal because then it’s, it’s behind glass and it’ll last quite a while. Eventually, the sun wrinkles it, and it starts to break down and looks like crap.
But, you can do that with other ideas or door hangers. Like you can put something in a plastic bag and hang em on the doorknob where it’s visible from the street, so it looks like somebody needs to pick up the mail with squatters living there.
Neither of those might be great ideas.
But it could work. The other thing is potentially talking to local law enforcement. So I’ve done well in talking to police officers. They know that neighbor, they spend 40 hours a week and that in that range or whatever their beat is. You can learn a lot from the Sheriff’s department.
They usually know the stories of all those houses off, that’s where the so-and-so lived, his son went to jail and they can give you a lot of background information on the asset itself that might not necessarily get you in touch with the owners but will give you leads on how you can find the right people who you’re looking for.
So that’s just a few ideas. Those are the things I’ve used successfully in the past.
Tax lien redemption: Can’t find deed (Transaction Engineering) [00:06:00]
One of them in particular I dug for a deed and just any information.
And there wasn’t anything except for a notice of default from like 1989. And the house has been vacant for 10 years now. It’s like a ghost property. I called the city and they’re like, we have no idea.
Do you have a title record?
There’s no record of the deed.
I had the city dig for it and they were baffled that they couldn’t find it.
Did you ask them what the process is? Has that ever happened and how was it dealt with what their process for looking for the deed is? Or getting a title on a piece of real property, they’re not being paid taxes on why have they not recovered the asset?
Right. Yeah. I don’t know. That’s, that’s a perfect situation for adverse possession. So it’s, how long has it been vacant and can you step in and, and qualify for adverse possession and get a free house?
Yeah, I think adverse possession in Massachusetts is 20 years, so I don’t think it, it was lived in, in like 2013. because on Google the picture was like a well-kept house.
Yeah. But they’re not receiving tax revenue because they’re not sending a tax bill. After all, there’s no title.
The lady said there were like a hundred thousand in taxes on this place. I don’t think it’s been paid in 30 or 40 years.
How can there be a tax card without title though?
I dunno. They told us that there was a hundred thousand due on this property.
Okay. I don’t know. They have a hundred thousand dollars worth of incentives to help you through this process.
I would go back and ask to meet with the clerk, not one of the clerks, but the elected county clerk. And I would just say: listen, I’ve, looked at- and you should beforehand see what you can find out. If you have a real estate attorney that’s doing work for you, ask him what happens when you have a house with no title and by state law, but potentially, they should be incentivized to help help you through that process if you’re willing to bring the taxes current.
Is it worth a hundred grand? Oh yeah. Probably bare minimum just as a tear down probably the lot is like 200. The worst-case scenario here is they won’t give you as an individual. They won’t give you the sole opportunity to buy the tax deed- are you tax deed or tax lien state?
Okay. So what’s your redemption period one year or two? I think it’s less, I think it’s like 6 months.
Your worst-case scenario here could be, that you have to bid against others at the tax lien auction. If they take it to auction versus letting you just buy the tax lien outright, I would make them an offer.
I’m like, listen, you don’t even have a title for this. I don’t know how the tax cards are connected. This is an outlier.
So how about I give you a thousand bucks for the tax lien and we’ll wait through the six-month redemption period. And if it’s not redeemed, then I’ll pay you a hundred thousand dollars in taxes.
You produce a deed, and a tax ID in my company name and we’ll move forward. It’s worth a shot. Like if, if this is who knows, it’s probably happened before, but who knows how long it’s been? I’ve never found one that like didn’t have a deed.
That’s, that’s interesting. I’ve, I’ve found stuff without deeds recorded, they still had a tax ID and had, an old, old, deed that went years and years and years ago that wasn’t even the current owner. But Dave Gwinn said, can you reach out to the lienholder from last year? I don’t, I don’t think they’ve taken it out to a tax auction. It sounds like they’ve let it lay flat back taxes accumulate in 40 years without putting it on the auction.
So anyway, that’s what I would try. I would educate myself as much as I can, and talk to a Massachusetts real estate attorney.
And then I would approach the clerk and say, listen, I want to buy this. So let’s, let’s start by how do I buy the tax lien from you today? And then during that redemption period, if nobody steps forward and redeems, then, be there to buy it in six months.
Okay. Thanks. Awesome, man. So you’re just getting into this. You’re uncovering deals already. That’s great. Try trying. Yeah.
You have your hand up. You’re next?
Sub2 financing a pre-foreclosure property that hasn’t been probated [00:09:52]
My name is David Yon. Chad yeah, I just jumped on the group probably about, I think about three weeks ago.
I’m here in Atlanta, Georgia. And I have a quick question for you. Yeah.
I reached out to a person in probate … I started reaching out to them around March and she finally sent me a message back last week and said she wanted to go ahead and sell the property.
So I looked up the property address and it said pre-foreclosure. So what I’m asking is is it too late for them to save the property? Is it too late? Since the property is already in pre-foreclosure?
It’s not too late. It, do you know if it’s a reverse mortgage or conventional? What kind of loan type it is?
They owe a hundred thousand dollars on the house
they have $170,000 equity. Okay. So it’s a first position mortgage, not a HELOC or a reverse.
Okay. Can anyone in the family afford to bring the note current?
Nope. They can’t afford it. You think it might be like a subject-to-type situation. You know where I can probably just pay up the mortgage and take over the property and probably put it back on the market after I appeal the pre-foreclosure. You’re saying probate is open. And they have the letters. Not that they, she had to file probate. Okay. That’s step one. And like today, as you’ve got. Yeah, 30, 30, 3 more minutes to go get that done.
I would recommend filing probate today. Like petition today, you might have a week or so delay in getting them appointed and then getting the letters. At that point, they can sign on the authorization to release, or they can contact the lender themselves and you need the payoff statement, and see what that loan payoff is.
The other thing you need to know is, is there a sale scheduled? Where are they in the process? So typically it’s, 30 days, 60 days, 90 day late, then you initiate the process and, it’s typically 120 days or more as, as that foreclosure process.
Get them authority first, then figure out where they are in the timeline.
Then get a payoff amount, what it’s going to take to bring the loan current and to pay it off. And then you, you have choices. So then you can choose whether you make them a cash offer and just pay the note off. Or if that doesn’t make any sense, how much do they need to walk away with, if anything, and then how much does it cost you to bring it current?
And what I would recommend in that case, if you buy that one sub that’s already in this stage, I recommend rolling it into a land trust. So it looks like a death occurred and it was rolled into a family estate plan. So get the authorization to release once they have the authority, if you buy it sub2 make sure you’ve got that document from the note holder authorizing you to talk directly to the lender on their behalf.
And then that way you can set up auto service and you can set up a third-party servicer where the payments auto-drafted from your bank account hits their bank account. You both get email and mail receipts, and that way it looks like estate planning. But that’s the order of what you need to do next. First and foremost, get them into probate so they have the authority to have the conversation with the lender.
Okay. Okay. I got you. What I do know is the only thing they do want is $5,000 just to walk away from the house. Five grand.
And do you know how far, and what it takes to bring it current? Do you already know that? I don’t know the price to bring it current.
They trying to find that out now because their mortgage company won’t talk to her because they have to file probate first. So the mortgage company is not talking to her to let her know how much is needed to bring the property up to current payments.
Do you know when they stopped making payments?
I have no idea.
Okay. You can usually back into it and figure out what ballpark, but that’s, that’s good to know. So you just need to make them an offer that’s five grand over pay off.
So if the bank is aggressive and they’re only 90 days behind, then you might be buying this house for 10 grand.
Alex, Terry. Whoever, whoever wants to go,
Probate real estate for investors (Listing Appointments) [00:13:25]
Hi Chad, Terry shell. You’re in Houston. First a time member of the mastermind group, I saw your post this morning. It sounded like you’re aggressively jumping into this. I have that three-foot flame under my rear end, and it’s just driving me nuts night and day. I got the course on that on-demand course on Saturday afternoon.
And I worked all day, Sunday and Monday. I added my Marshall at a private golf club here in Houston, which is unraveling all kinds of leads for probate attorneys. And I’ve got people with money to put behind. It’s incredible, but I don’t know if I’m being premature, but I have just one part left of the third session to take the last certification quiz to get certified today. I’m going to be finishing that and you talk about the presentation package and one of your modules and I’ve gone through it and I’ve gotten, I have all the notes on what should be included. My question is, is there an example presentation package that I can look at from you?
So in that session three in the course downloads, you may have missed it. There’s a link, it’s an actual appointment package. And as I say in those sessions, it’s really simple for a reason. I found that the more polished my packages were, the less attention they paid to me.
So I dumb them down, and made them almost laughable. So that’s by design. I’d rather have them focused on me than on my marketing collateral. I like that. I like that.
I am not a realtor. I’ve been investing in real estate on and off for over 45 years over Manhattan. I have a good handle on creative financing and a few stupid shapes and sizes. But would you suggest that I not being a realtor would vary my marketing to people differently than what your home, your slant is mostly toward realtors I think?
My personal, like the way I handle it. And the reason I cross-train here in this community is it’s 60% brokerage, 40% investment or acquisition. So you’re possibly leaving a high six figures of money on the table each year. You’re already talking to these folks why not challenge yourself to be able to monetize every real estate conversation. Usually, as a licensee, you’re held to ethical standards on a higher level of professionalism, you have something more to lose, so you can compete against other investors by being licensed.
It gives you a bit of an edge. And it doesn’t mean you have to jump into the mainstream of conventional real estate and have your face on billboards and shopping carts. Like I would recommend for somebody like you that has got a lot of experience, especially in the creative financing space either find a broker who’s just a broker for himself and does similar types of deals or maybe approach a commercial brokerage. If you’re not looking for a conventional career in real estate, try to hang with a non-MLS broker so you don’t have to pay all those fees and everything.
So just hanging out as a referral only with a non-MLS or, or with a non-MLS broker or with a commercial firm. And I think you’ll do well in a commercial firm. That’s probably, my top recommendation for you is to meet with some commercial brokers and say, Hey, listen, I’m in the residential space, but on the investment side of that, And then you’re gonna use it as a referral license.
Like we’re not going to try to make you go become a listing agent and get signs and figure out marketing packages and all that if you’re not interested in that… Do it on a referral basis. You can still make 50% of the commission but you’re handing them the listing on a silver platter.
I had at one time since he’s changed directions, I’ve been the assistant to a commercial broker here in Houston. And I did that for the reason that I wanted to have access to the MLS for market comparative analysis, et cetera, et cetera. And he’s now moved on to drop his membership, but that wouldn’t fit in the same wheel.
As you’re talking about. Then, the thing there, you’re going to have to pay national and local dues. So it’s going to drive your cost way up. And if you’re not actually not trying to be a residential realtor, if you just look for somewhere to put your license, most commercial brokers are not members of the MLS because they’re dealing in assets that don’t, don’t make a whole lot of sense on MLS.
So they’re not paying the fees. All the state needs to know is that a broker is responsible for you and that your referral commissions are coming through them and you’re not actively acting as a fiduciary. So it’s, it’s for just the continuing education requirements and the fee that you pay the state for a few hundred dollars a year, you can have a few hundred thousand dollars a year in income potential off referrals.
How to work by referral only as a real estate investor (Referral Networking) [00:17:54]
Great. My approach is that with the connections I have, I’m going to be approaching and meeting with probate attorneys and financial planners and the like, and I have a ton of connections with them using your lead about how I can help them with do their job.
The services I provide a linear suite of services, verticals, and a suite of services. It is that’s still to me, a very good direction to head in this view. Would you agree? Yeah.
You need to be a hundred percent clear on your offer and proud of it before you approach the attorneys, but I want you to think about more than, Hey, let me tell you how great my business is.
I want you to be thinking about, okay, what can I say to this attorney that will help them quickly see I’m here to scale their firm. And mine in exchange for reciprocity, but you want to be focused on what’s in it for them. So how can I help your law firm be more efficient and, scale-up?
Have you heard the idea discussed of, walking in the door with a referral? Yeah, especially with your side gig working on a golf course, statistics will tell you that 95% of those guys teeing off every morning, don’t have an estate plan.
And, I, hell I have friends in their forties dying of heart attacks, and so you never know. So most Americans aren’t prepared and will go through probate. So what a great way to generate referrals on the golf course to help them get prepared for what’s inevitable and then walk them straight to the attorney that you’re looking to get to know and say, listen, I’ve got a high net worth individual who just said he wanted an hour with my attorney that I offered him.
And I’m looking for the right attorney that I know can act as a fiduciary for my clients because that’s of utmost importance to me and you’re talking their language.
I like that. Thank you. No, thank you for your time. Yeah, for sure. Thanks for being here. It’s nice to have you as part of the community Terry!
I always liked to have that much experience come in. You can teach us all something. Thank you, sir.
Alex solidifies his probate website [00:19:50]
All right, Alex, you figured out the hand raise. Sorry, we skipped your man. No, that’s okay. I just had a just a small little victory. I finally got my LLC and domain name as you were talking about domain names last week.
So I was like, made sure I got mine locked in place. I’m also here in Houston, Terri. It’s called the good, the bad, and the ugly home buyers.
And I also, I don’t have that much stuff to, I not don’t have that much stuff to talk to about I’m on probate here. I’m still…. got the anxiety about picking up the phones, especially when I’m coming to having a hard time helping my own family go through their situation here.
But I think it was David Pannell or somebody who said just don’t spend too much time on just one family, if they’re being difficult, move on to the next one and that’s what I’m doing. Just wanted to share that up which put y’all real quick. Yeah. Good job with the domain.
You and Terry should try to link up, like he’s aggressively stepping into this space. Based on some of the things you said, you got some limiting beliefs you needed to work through, it might be good to buy him a beer or play around the golf with him. What your family is going through. Like you can pull from that story. That’s part of your empathy statement, right? Trust me, I know what you’re going through. I won’t lie. Like I’m well-versed in this. Even my family is struggling with it.
So it’s a powerful empathy statement that will help them to go: oh, okay. So he’s not just saying he’s an expert, he’s been through this or going through this.
So you should be able to pull confidence from that because you can say, listen that I’m calling. Cause I’ve got a team of people here locally that help family going through probate.
The reason for that is I saw how hard it was for my family and I stepped up to do something. So I just wanted to call him today to let you know that there is a service in the community. And just to learn a little bit about your situation and see if there’s any way I can help you not feel like my family did for the last six months.
What’s one thing you’d like to delegate. If you could like, just say not mine.
Awesome. That’s recording and come back to, but I would encourage you to spend some time with Terry and absorb some energy he’s putting off over there.
You’re right there. I left my name and phone number and email address in the chatbox for Alex. I don’t I don’t know if you’ve got it, Alex. I’d like to get together with you. Okay. Will do. Thank you, Chad.
Yes. And Terry, Kevin had said StepStone Realty is a broker in Texas. They’re in Austin, not Houston, but they are focused on investor agents.
So if you didn’t say that comment.
Sherri’s in Houston too. We’ve got a lot of Houstonians here today.
Getting your initial prospecting system in place [00:22:15]
All right, Tony, you’re up next? How can we help you?
Hi, can you hear me? Perfect. Hey, I have a question for you. We just onboarded, I just onboarded my team to start doing probate, to go after a personal represent representative. We just got our data from probateleads.com. My question to you is, do you already, do you have any pre-made scripts that we could piggyback or use as a base?
Yeah. So it’s a common question. One that I’ll stay off my soapbox. Everybody’s smiling at me. Like he just walked into a trap. What we teach in session three is, I mean, we spend almost three hours breaking down the initial conversation and what I give you is a conversation framework, like a worksheet that you fill out as you’re having a conversation.
So I don’t ever provide a script book where it says: use these words. There are members David Pannell here, he and Randy Milmeister they have scripted, made script books out of the transcriptions from all the calls that I’ve done in the past, but between session three of the course.
And you can connect with Randy mill Meister, David Panell a couple of others in this group that have scripted the hundreds and hundreds of hours of the calls that I’ve offered.
But, the reason we don’t offer scripts is it’s just so there are so many variables in this, especially when you’re providing investment services, brokerage services, non-real estate services. And we’re providing, literally a dozen different marketing hooks. The conversation can go anywhere and the first few seconds.
So for me, when I sat down to try to learn to convey this to others, I had scripts in the very beginning and people just fell on their faces and they quit in a hurry.
So for me, pulling the script book away was the way that I could keep people engaged longer too, to fail forward and stick with it and develop their language.
That’s the reason. It’s not the easiest thing, just, I could say, go download this, but that’s the reasoning behind it.
But are you, is your team taking the course or is it one person or is everybody like, what’s the approach? Yeah, I’ve been sharing with them some of the material that I got from the course, and I’m just training one other agent right now. So he’s going to be doing the campaign with me.
So for right now, it’s just me and another agent and we have another agent here that’s going to be onboarding with us and also doing the same campaign going after the personal representative to develop the relationship. We set up the vendor team. We’ve reached out to several people in our local market that offered the different services that we could refer to the personal representatives.
Another question, I think you said that you offer custom-made websites we can get through you like a website representing us and what we’re doing. Yeah. So that was when I was on the, all the leads channel. They provide WordPress websites about, I think it, I think their pricing still the same, it’s 199 and set up and then $39 a month.
Now, just to be clear, that’s a credibility website. It’s not going to rank because there are, lots and lots of versions of it. So it’s not a conversion website. It’s not a lead website, it’s a credibility website. So it’s somewhere for people to go, oh, okay. He’s professional enough.
He has a website and it looks like he knows what he’s talking about.
And then if you want to, longer-term, if this is a campaign that’s working for you, what I would suggest is like David Pannell is heavily investing in his long-term website, which is an inbound marketing strategy.
He’s done a lot of aggressive blogging, like getting the content laid down in his market. So longer term, I would recommend you build your own and start writing hyper-local content because then you own it. But that website, it’s a good place to start.
It’s a digital business card when they want to see just verify if you’re full of it or not. You get a present that most people don’t have, and it can be done in a week. And try not to use probate in your website URL. Okay.
That’s for attorneys, not for us.
We haven’t let you stand up on the pedestal and brag for a while, man. Cut loose!
Probate leads for wholesaling and investing [00:26:00]
I have that flip that I bought in January is closing and the comps went up 50 grand in the time that it took me to remodel it. So I’ve got a large tax bill this month. Yeah. You need to call me on that, man. I’ll show you how to eliminate that through putting it like an investment.
So show of hands who on this call wishes, they had a $94,000 closing check this month. Yeah. And how many of you guys are making offers to sellers as well as talking to them about listing? Is everybody comfortable making an offer? Yeah. All right, cool. Cause this is what can happen.
Like I’ve never had one hit that big, I think 56,000 was my biggest I saw them at 1 13, and it went from 56 more the day of like just literally just cleaned it out, turned around, and flipped the paper. And he walked away from the closing table with a check because he was using the debt coverage loan, from the community bank.
That’s great. Thanks for sharing Dave. I haven’t asked you in a while. What percentage of your activity or your closings or revenue now is from brokerage versus investment?
I would say almost 90% from investment now. It’s crazy. I don’t know.
I’m glad that I hit this when I did and it’s converting to complete investment. I’ve even tried to get listings anymore. So ultimately, do you see yourself just referring the listings off though?
No. Cause they’re so easy. I have a TC that does the listings and a sign guy. So at this point, it’s just representing the client if they want to do the listing, I’ll do it. But yeah, we’re targeting the pre-probate, if you want to call it the distressed properties and foreclosures. This month alone in Texas, in Fort worth, there are 400 foreclosures.
Wow. In the last seven days. It’s back. Our business is going to be back. We’re going to be hiring callers again. We’ve been buying them since January and the probate too, probates back. Do you buy your foreclosure through Roddy’s? We from a source, I know it’s, everything’s goes through the Roddy report. It’s two weeks ahead of, anyone else we’re getting foreclosures for the end of June right now.
We’ve got a 360 listing and then a burnt house. We got a burnt house for a fifth of the cost and we’re going to sell just the land for 150 So we’ve got over 75. Yeah. I’ve had good luck with burning houses too. So when I first got started in investing, I had a Google alert for, fire, Roanoke, Virginia.
And literally every, every time I kept a spreadsheet of every house that was in the newspaper or on the local news channel. I would document the homes that, caught on fire. Cause usually in 60 days or so they get an insurance check and they’re like, whatever, just gimme whatever little amount and you can get some really good deals on those.
How to refer out buyer leads you don’t have time to work [00:28:34]
Yup. Yeah, it’s completely converting my business. Three years ago, I was going, I had 40 signs that I ordered and I was thinking I was going to do 50 50, but I don’t even look for listings anymore. Buyers, I guess so many people registered on my website for buyers. I don’t even respond to them.
Yeah, it’s crazy. I need to refer them out, but how do you refer a deal where somebody can’t get a house and they’re competing against 20 other offers? Yeah. You might talk to call referral exchange and ask for Lisa. Tell her I recommended it, but they have 50 state-licensed trained callers that will just hammer, hammer that database until it qualifies.
Their deal is they’ll find an agent that wants to work it and they’ll take a 10% spread. You pay a 30% referral fee. Think the other agent gets 20 and then the referral exchange keeps 10, but that might be a way to monetize the ones you’re leaving sitting.
Probate Scripts: Who do you speak to when cold calling probate leads? [00:29:26]
I don’t know who asked about the scripting. It’s a different conversation with these probate people as Chad has taught, but you have three people that normally run the probate.
You have the spouse that lost a spouse, unfortunately. That’s not a good phone call. But you have family members, that extended family members in the local area that are dealing with the probate. They’re getting hammered by local investors. So they’re not ready to talk to you until the second month.
And then you have extended family out of state. And that are the ones that we look for in the data. So anybody buying data that want to hammer it, look for your out-of-state people. And then if you want to put a cherry on top, look it, look at the administrators, the bonded and unbonded administrators, not the executors, and then work your way through them.
That way you’re going to have more success. Break it down to out-of-state people and then administrators of the estate, not the executors.
Alex, I think that’s a really good suggestion for you in particular, based on what you said earlier like you’ve got call reluctance and you’re nervous. So what David’s suggesting is to start with the least emotionally sensitive and go toward the most emotional.
But if you have someone who’s labeled as an administrator, then you know that there is no will. And that they were appointed. But if they’re out of town and they’re an administrator, not an executor/executrix, then, it’s not going to be as an emotion of a conversation or decision. So you’ve got less of a risk of getting snapped at or hitting hard objections on the phone. So you might want to start prioritizing your list that way until you get rid of that, some of those limiting beliefs where you proudly approach them all.
And with the surviving spouse, we haven’t talked a whole lot about that lately, but it is, it is a different approach, but I would tell you guys that when a surviving spouse needs your help you can provide life-changing results in a matter of days or hours.
So don’t, don’t completely shy away from talking to surviving spouses because oftentimes their income has been cut in half. Their expenses have remained the same or gone up, and they’re just in this tailspin and they’ve lost their identity. They’re trying to figure out what that is. And sometimes that results in foreclosure situations and people falling and getting hurt.
They can’t keep up with the maintenance of the house. And it can spiral out of control quickly. And a lot of times ends in depression and even worse. Eventually, you’ll have this story as we have: Drusilla was the one I always point to because I look at her couch every day.
She sold me a leather couch. But this was a 53-year-old woman who had been stuck in probate quicksand for two years. She had all the curtains pulled, and didn’t leave. Her house was in a deep, dark depression.
And literally in seconds, you could see the change created. As she changed, she opened up her posture, and this little 53-year-old woman emptied over a 3000 square foot house in two days, it was on the market on day three. We had found that cash buyers close it probably inside of two weeks, I think.
And then she moved to North Carolina to be with her granddaughter, her new baby granddaughter, and her help her daughter. So like had I not called, it was obvious she was a surviving spouse.
The decedent’s name matched the person, the executrix’s name. But she just wasn’t doing anything. And it was amazing to see the impact that just one conversation can have. It broke her out of two years of absolute misery. So I don’t want you to take this as, call those out of states and then call the in towns, leave the spouses alone because when you do help them, it makes one hell of a difference in their outcome.
Choosing a name for your probate credibility website [00:32:49]
Next up, Mike, haven’t seen you in a while. Welcome back.
Nope. Oh, there we go. Do that. Sorry. So my question is about the URL. So I’ve had Sacramento, what is it? Sacramento probate agents for years. And you’re saying that that’s not a good one to have because it has the word probate in it. David, I’m gonna let you take it. It’s just, that I’m getting away from using the word probate in anything I do in probate because I’m not the attorney.
And if you say probate, they’re going to automatically put that keyword subconsciously to the process of probate, and they’re going to shut you down. So you, when you say they’re going to shut you down, who’s going to shut you down like that, like I’m going to, it’s going to affect me when I bought like up on the, on Google stone searches and things like that.
Or is it gonna, I’m sorry, I’m working here, but it’s, it’s not a proven point yet. What I’m trying to say is I still want to use the word probate as a keyword. Cause people that are looking for probate, they’re looking for an attorney, so they’re not ready if it talks to you and I’m sorry, I’m going to get head.
Oh, Mike, it’s sometimes like, so what he’s saying is that like you, through association with the word probate, they may be apprehensive to have the conversation with you. Like the other reason is it’s not like when you if you’re going to invest heavily in a brand like that, you got to think, how quickly can I grow out of it?
When I meet an elder care attorney at one of the sees, that’s the thing I have. I have another site it’s called Sierra home transitions. That’s the one I use when I’m dealing with care elders, people that are moving their parents into an L elderly care community that’s that is marketed for that.
This one is just strictly, just strictly probate. That’s all I use on that site. A matter of fact, it’s all the leads thing. It’s the, it’s just that information site. It sounded like you’re capable of managing multiple brands. I don’t recommend it for most people because it gets out of hand quickly. The, the one thing I would say about in your market, because you’re in, you’re in one of those w th the most unique area in the country where most people do have a living trust, like having probate in your brand and your domain could actually make, give you the opposite result.
When someone in trust administration sees that they’re like, oh this guy deals with probate. We avoided that. I like the transition brand a lot better because it fits elder care. It fits probate fits trust administration, hell it even fits divorce. And guardianship.
So you can fit so much more into that brand. And you won’t turn away as David caution, people who have a negative association already with the word probate, but you also won’t turn away people who identify as the beneficiary of a living trust.
How to scale for 100 real estate transactions a year [00:35:34]
So I have thought of this and I’m not a website guy. All my businesses are direct mail and some pay-per-click, and I don’t like to have lots of sites all over the place. So I thought of maybe taking the Sierra home transitions and just having like a tab on it that says probate and using that for everything.
That’s what would be a better idea. I do. And it’s, it’s, a lot of people don’t think of it. Like if we start building a house, you dig a hole and put some concrete in it and then start putting framing on top of it. You’re building an asset. And I think a lot of people jump the websites and the digital assets forgetting that, Hey, the more deliberate I am about building this as a digital asset, the more marketable it will be when I’m done with it, it will be a sellable asset.
So a lot of my advice around websites comes from it’s a longer-term mindset on it. Like if that’s a really powerful domain if you put strong cash flow and a book of business behind it, the main thing that you can sell would be the vendor team that you’ve built, the model, and the referral network that comes with it.
Your book of business and probate isn’t that valuable for that long, it’s a couple of years. So it’s not, you’re not going to sell it as you would like a commercial real estate brokerage, but that can be a very sellable asset. So all that said that the focus on one brand is what I would recommend.
So even if you end up doing divorce, guardianship, elder care, you name it, senior relocation, senior vacation homes, whatever that specialty might be, funnel, all that effort, all that SEO, all of that domain authority, try to point it toward one digital asset. And then that way that, that can be part of your retirement plan.
Whenever the next person’s ready to take over your position as the authority, you’ve already built the community, you’ve built the authority and you own that spot and they’ll pay you for it.
Yeah. I don’t plan on retiring. I’m going to work till I’m a hundred, but uh, but that, that is good. That’s, I appreciate that information,
thank you very much.
Year four or five, you’re going to be in a position where I’m at a turning point where you are making money doing this. And we just went on a two and a half week vacation. And I didn’t miss a beat. That’s don’t want it. You don’t want everything in your name. You don’t want it to be, so you want it to be scalable.
And automatable so that if someone, the perspective of someone when they call you our goal is to get the listing or to buy the property. You don’t want to be we’d buy houses guy either. You want to be, I want to be Dave Pannell and I want to have YouTube testimonials about how I closed on their property on Facebook.
I want to show houses that I’m closing on that are trashy, but also keep my brand awareness where I still do luxury listings. If I get them, if I want them, but I don’t, I don’t want to be the guy with 25 websites. I want to have cities real estate.com and then I want to have 156 blog articles that direct that traffic to the registration page. Or if I call them on the phone and set an appointment, they’re going to look up my name and see houses were flipping, and they’re going to say, all right, this guy has the money to buy my house, or he has the knowledge I need to get from what do I do with this property that is in the condition.
What do I do with this house? All the houses I bought. People just wanted to know that I could buy the house or help them through the situation. The problem. They didn’t care if I knew that I don’t know anything about probate. I don’t know a dang thing about probate man, other than what Chad’s taught me. I bought 22 books and they all just talk about executors and administrators and all that crappy need for the probate.
But I don’t think I’ve ever helped a person through probate, but I have closed 110 properties with probate. Don’t take that for a grain of salt, man, you don’t need to have a website that says everything about probate. You need successful stories, and testimonials. And when they’re at the closing table, get a video of them talking about you. And get a writer to write that content from that video like Chad does with probate, but use the word estate, use the word help, get away from being like everybody else on the surface level basis.
Yep. We’re a bunch of nonconformists here.
Thanks. Thanks for your input,
Renee, what do you got for us this week?
Thank you. Hi guys. No, I was just going to share a couple of things around persistence and consistency, even though we can never drill that home enough I’ve been following up with this lady for over a year, probably a year, and I believe she was going to be the executor. And then the short story was there was too much infighting, so it went to a fiduciary.
But she remembered me and she gave the fiduciary my number, this lady was out of state. The house is in Los Angeles and the fiduciary is in Los Angeles and it’s a potential $4 million tear down in the Pacific Palisades. And I don’t work that price point here, but what I did is I know a lot of agents and if you guys even watch TV, it doesn’t matter.
But one of the fufu agencies around here is called ‘the agency’ and that’s all they do is work high-end. So I got a buddy that works over there and hitched my wagon to his wheel. So there are a whole lot of hoops to jump through. I dunno, as Chris’ Voss says, you’re either the fool or the favorite, in the deal.
So I dunno, we may be the fool, she might have her favorites, but I am going to take this on and we made it through the second rung. And so now the second rung is to go over, take a look, and then propose what you think the house is valued at.
So I am going to jump through those hoops just to learn, but it’s the point is that it’s to stay consistent, stay upbeat, be caring – like all of your messages.
And I’m sure everyone on this call is because you never know that came out of the left field. Like that was a dead lead, to be honest with you. And now at least it’s a potential. Always remain friendly with the other people that you’re doing business with, and you never know when you need to make that call.
And then if you aren’t just go to open houses and be friendly with people in the high end, in the lower end, because you never know what price point you’re going to need. And it was a real easy phone call from me, cause I always remained friendly with my agent community. And I just a quick share on that.
We’ll see, I’ll keep you posted. We’ll see if we get it or not. Awesome. I hope you do.
How many people show a hand? It’s always interesting how good realtors are using math. When it comes to threes, how many people did the math? And it’s like, whoa, she’s going to make more than David Pannell made, but that should be a nice, that’s probably not because I would have to split it, but it’s a two and a half percent commission.
It is on this one. Yeah. That’s the agencies, the agencies standard. Yes. I just need to move to your market, that’s it. Yeah, really? That’s what I left Maui with a median like, it’s double that now, but when I left, the median was 1.35 million and I come to Roanoke and it was 140,000 and I’m like, I should have just done this in Maui.
It’s always interesting to me. Yeah. Like really quick. I always talk to people who are like, I sold 200 homes this year. I’m like, I would be retired if I sold 200 homes in a year. Like, it’s not that it’s inconceivable. It’s just not that likely. So it’s the same, same difference.
Anyway. Thank you. You know what I found too? I did 127 houses in 2019. You just have to have more help and it’s really not worth it. I’ll do probably 35 houses this year and I’ll make just the same amount of money. And I’m not worried about it anymore. I went from 13 in the first four months of residential to 52 in the first 12 months in that calendar year, and then I went to 72 and then to 104, I made more money on 52 transactions and I did on a hundred. Yeah. Like everybody likes to talk about GCI. That’s a BS metric. Show me your net. Tell me what your EBITDA was. And they’re like, huh? I’m like your, their profitability just drops. That’s where you are when we met David. You had what, six callers in your office and commercial lease. And, and I was bragging about it too. And I was, I was excited about it cause that’s the coaching I was in.
And of course, if I could build it up again, I was really don’t have the energy for it. My CRM does the work for me now. And I’ll make calls maybe twice a week. But I got a pipeline of over 600 people in probate and then the stress, I have 3000 houses. It’s just the funnel that you have to build up that y’all have to get on the phones at first, but then you start, you started getting, I’ve got several testimonies.
I got three that we’re working on right now that’ll be posted. And you just get there, but back to your comment, Chad, I don’t want to, I don’t want to do a hundred homes in a year again, man. I was working eight days a week. Like it was, there were some days where you’d have seven, eight closings.
It was just nuts. We already bought tickets to Hawaii in, in June 15th for two weeks. So that’s the new goal.
Just wherever I got to the main island where the plane lands, I guess I didn’t even see. Yeah. See, we’re just going to figure it out as we go. Yeah. Call me, call me when you, when you land, I’ll tell you what I mean, that’s the idea now, 60 days out for two weeks. So I’m not shameful of it actually. You guys, hopefully not, not too far from now, like we’re actually going to start traveling as a team.
Like all of us and this company, we’re going to be gone. We’re going to try Switzerland maybe first, but actually take the team abroad, work abroad for a month and then come back home for a couple of months and then go back out. And we’re going to see if we can actually build this from other countries around the world where we want to be.
So you guys might get some neat scenery here as we, as we move towards that. So I’m proud of you, Dave. I can tell you make those vacations a bigger priority than revenue. That’s awesome.
You’re you just chased the wrong target. And, and I guess having our son was the, the difference for me is like, man, I was working way too much. And I wasn’t getting ahead, man.
I was spending the money just to make the money.
When I first really realized the opportunity in probate, was like eight grand a month. And I’m like, how the hell did I get here? It was like $99 here. 197. The next thing I know I was at eight grand a month and I figured out probate and I just dropped it all.
Like I just, I burned it all to the ground. But yeah, it’s live and learn. Like we all have to figure it out. You don’t know what you don’t know. Like until you build the big, giant marketing monstrosity, you don’t realize how hard it is to maintain. And until you go work 12, 14 different lead types, you won’t realize that probates the easiest place to make six, seven figures of income if you just focus on one. Like I had to learn it, you had to learn it, everybody else. Hopefully everyone else can learn from our mistakes and not everybody has to repeat it.
I went eight months when I started and I was scared to call. Yeah. And I rewrote my script several times, man. And just have conversations with people.
They’re either ready to talk to you. They’re not. Yep.
All right, Jim Lloyd, you’re patiently waiting.
Disclosure for real estate agents that invest (Real Estate Branding) [00:46:27]
How can we help you? Thanks. Yeah. New to the community, but really appreciate it. And all the content, it just out of curiosity, I wanted to follow up with the conversation on branding you were having with Mike.
We just sent out our first set of letters for probate, but use the broker logo as more recognizable than, trying to come up with…. We started an LLC as well for the investing side, but like there’s no brand capital in that. So I was just curious, like what the overall impression is, as agents slash investors if most people tend to utilize.
Yeah, I saw, I guess bill gross with the exp there or a Keller Williams or Coldwell banker.
So I started with, I have two, two matching brands at an investment brand and a realtor brand. They were both consistent and it was either, hi, I’m Chad, the realtor.
I’m Chad, I’m a, I’m a local investor, blah, blah, blah. Had the experience of falling on my face several times on the phone and also in appointments, realizing that when I attach that identity myself, it was very hard to be nimble. It was hard to change my identity and not break rapport.
What I learned in face-to-face appointments, ultimately. Taught me to just remove branding on everything. So as, as a licensee, what I recommend is, that your brand is JIM.. That’s in the first sentence, hi, my name is Jim. That’s the brand impression. I want you to be Jim, not Jim, the realtor, not Jim, the investor, not Jim, the holding company operator, not young, the property manager, whatever it is, you do just be Jim in the beginning, because what we don’t want is that association.
So David mentioned earlier, like in the URL, how they can associate the negative emotions and probate with a simple URL, the people, he also mentioned all the people that are getting hammered by investors who don’t have really anything valuable offer. They’re just calling, going right for the jugular.
They’re not, they’re not trying to be empathetic. They’re not trying to think about the other person’s emotions and navigate that conversation with tact. They’re just trying to get paid.
If you call yourself an investor, then you adopt that person’s reputation. If the realtors are hammering the phone and trying to say, I got buyers looking, can we come? We need to get in that house. When can I get in the house? Can I come to look at it? And they had, they didn’t slow down enough to even say, what’s, what’s the family’s plans for this.
Then they’re going to shut off when you say I’m a realtor because they’re going to think, oh, he’s a selfish son of a bitch, just like the rest of them.
So what I’ve found to be most effective is just be Jim. And then your letters and then your phone calls. My name is Jim. I’ve got a team of people put together here locally, specifically families like yours. It usually starts with a simple conversation and then we see, what is the best service we can provide.
You’re not technically offering brokerage services in that message, like in that letter, but just to play it safe, I go down to the footer of the letter, like double-click and Microsoft word and open the footer editor, and then like a number eight-light gray font put in whatever the state requires, make sure it’s legible, but put in the minimum requirement for marketing compliance based on real estate law in your state.
And that’s all it has to be. It can say, ABC real estate, brokerage phone number, address, license number whatever’s required. It needs to be legible, but not prominent. You don’t want it to stand out. It’s not there for a branding impression. It’s there in case you accidentally send a letter to someone who already listed their home and that person reports you to the state or the board and then you have to defend yourself.
And that’s like, oh, by the way. Mine even had an asterisk in that footer. It had the brokerage name, and brokerage phone number URL, which I think was our minimum. And then asterisk ethics are of utmost importance to us. If your home has already been listed, or you have an agency relationship with a licensee, please disregard this letter.
And that I got a call from my broker one day. She’s like, Hey, good job on your, on your CYA. You pissed off one of our peers. You sent a letter to a property that was listed, but we’re good. I’m just calling to tell you, thanks for always covering my ass. And I’m like, perfect.
So that’s how I did it. Like I would just be Chad until. Until I saw where the conversation was headed. I wouldn’t even start to discuss the actual services and the role I was playing or, disclose agency or a licensed disclosure. And you’d talk to your broker about when you have to do that.
But for me, until I was discussing the house or price or terms of that house, I didn’t have to tell them I was a licensed agent. What was the point? Like, I don’t mind, I don’t want to go to the grocery store. I don’t have to identify myself to the cashier as a licensed agent for not talking about real estate.
So a lot of people are scared of their brokers or real estate school. They think they have to get that out there on the front. And it’s just simply not true until you get to a certain point in the conversation where implied agency, even that’s a gray area, but my rule of thumb is if the conversation could even be somehow interpreted as implied agency, then I’ll disclose there, but normally it doesn’t get into that territory until you’re almost at the end. You choose a strategy. You, you tell them, Hey, listen, I think my best service to you is going to be as a real estate broker. So what I would suggest is we put it on the market at this price and use this strategy.
Here’s the blueprint. And it’s literally at the last minute that I disclosed. So if my best advice is based on experience and coaching, thousands of people through this like create a specific brand for this purpose or pull back the brand altogether and just be Jim.
Yep. Mike, you may not have your hand back up.
Propstream Notice of Default Data (Motivated Seller Leads) [00:51:51]
Yeah. So, I’m seeing here in Sacramento, we are starting to get a lot more notice of defaults going through. I get it. I pull them up through prop stream, but you had mentioned a different service. I was thinking with proper training, they have the best data feed.
I all, it was in Texas. So in Texas, there’s a company called Roddy’s. My friend owns it full disclosure, but, in the state of Texas, their big data is two weeks late on pre-foreclosure data. So Roddy’s has a proprietary process that they get the data two weeks sooner. But like in California, you got black Knight, first American, and Lexus nexus.
All those guys are getting those files out of the California cap courthouse. So yours will be, and prop stream has the most, I think they have the highest level of data integrity among their competitors. That’s why I recommend them. So what the the other data points that you’re augmenting and sorting your list by, I think you have more accurate data in the prop stream.
That’s why. And one more thing. I know we’re getting present here, but you, you had, the guys at prop stream or something like that, or do you have, so I was just told that they lost their access to MLS data. Do you know anything about that? Yeah. Are they getting that back? I don’t think so.
No. So I, I don’t, I haven’t talked to Rob about it specifically, that the company was bought by Stewart title. A lot of data is based on relationships. So when it’s in the handoff and a big data transfer data acquisition I’m guessing someone lost a relationship there and it came apart.
I don’t know for sure, but I wouldn’t expect it to come back. Otherwise, they would have found a way to not lose it. Okay. Thank you. Alright. Terry, you’re up again? Yes. Thank you. I’m sorry.
Buying small businesses and commercial property in probate [00:53:36]
I have one more question that has to do with the commercial side of probate. I have some software that will allow me to pull up any five plus in the case of multi-family properties are in probate all over the country by zip code, have you, or there’ll be others here had any experience with that, that you could shed some light or directions to me to pursue or not?
No, go get it. Most, most commercial real estate owners don’t have a proper succession plan. Most like 95% of small business owners don’t have a succession plan. So if like I would recommend, especially with your experience in the investment arena, like you can talk to that language. I would say that should be one of your priorities and actually going to those, I’ll built a data augmentation when I was at all the leads we call it probate plus, and I think they’ve since changed that and phase it out.
But I was shocked at how much commercial real estate I was able to find using probate plus, which was just a, imagine a pen, data augmentation. And we found like eight and 10, 8, 9, 10 figure properties, like massive commercial portfolios. And it’s not you haven’t had anyone.
They really specialize in that as consistent success stories. What we do have is people uncover that every once in a while, Roger Lacey hasn’t been here in a while, but Roger was, he was reluctant. He wouldn’t get on the phones when I first met him and I finally got him juiced up and got him to make prospecting calls.
The first deal out of the gate was like a $7 million commercial out the parcel and the path of progress. Like, in Bentonville, Arkansas, where Walmart was, and it was a family farm, they could have sold it for 150 grand, but they called the right guy and he knew what to do with it. And he sold it as a commercial.
Let me add another one. It was about, I think it was a $58 million cliffside hotel and, and somewhere in Northern California. So you’ll find hotel real estate portfolios. I found that I can’t remember all my exact percentages, but a surprising amount of probates contain more than one piece of real estate.
It was not hard to find portfolios of 10 to 50 homes that were owned by one decedent. Keep in mind for anyone who’s calling any probate list. They could own a hundred houses. There are lots and lots of people who own a hundred houses. One of our members. It was last year. I think she got 14 deals off of one single phone call because the family had 13 houses, like the one she went to meet had over 12 rental properties. And then she got the neighbor across the street. She listed and sold 14 houses in one appointment, one phone call, one appointment, and 14 deals.
So keep in mind when you’re talking to these people, that just because they’re going through probate doesn’t mean they don’t have significant assets. A lot of people will form a trust and then not properly funded. And John Fraker is like, no, that’s one of the things that make him mad.
People do what’s right for themselves, but then they’ll finish properly. But a lot of times, like when I was going through all the data samples with probate, plus I found people that had established trust, not properly funded them. And they had dozens and dozens of, realists. Properties that had to go through probate because they didn’t properly fund the trust. So I think you should pursue that.
Good job. So I can’t remember your first name young. Was it David Young?
Yeah. Awesome. So David, tell everybody what you did like that’s taking action brother. Good job. Yeah, I reached out to her. She went ahead and got an attorney sitting on five, the administrator to stay for the Opry four calls at home, and she’ll be getting the papers in the mail next week so that she’ll be able to stop their pre foreclose.
All right. Now, step two is what made us figure out when the last payment was made. Get her to call and get a payoff statement. And like, you need to know how much it is to buy the note like to buy her out in case that’s an option. More importantly, how far behind are they with penalties and fees and everything next week?
You’re buying a house, man. Yeah. Like, as she says, she hung them on five grants. As I said, I know they owe a hundred thousand on it in the house, the ARV on the property, like 300 to 5,000. What’s the rent? The rent is 15, I think, 1600 a month.
I think you’ll be alright. alright Yeah, the payments. I know the payments on the loan, like $660. So here’s what I want you to do. I want you to buy it. I want you to put a great tenant in place and get it in QuickBooks, get two months of PNLs, and then call me. And actually, I pick the bank out. If you didn’t see it already.
I did a video for one of our members this week and it was in Atlanta. I showed him how to pick out the right community bank to do debt service and coverage ratio loans in your market. So get two months of the rent roll, and on your P and L take that to a community bank, refinance yourself out and de-risk it.
And then put a commercial line of credit against it. In addition to that, so you just turn, you turn 10,000 bucks, let’s just call it 15,000 bucks. You’re going to turn that into a hundred thousand dollars in strike capital as a line of credit, and you can do all this and inside of the next 60 days, Yeah.
So you’re like, literally you can take 10 grand and 10 X that in 60 days just by thinking creatively. Yeah. Cause as I said, she wanted $5,000. Cause she doesn’t want to deal with the house. You just don’t want to let it go to the bank without anything. She said she only want five grand. Yeah. Awesome man.
Thanks for the update. You’ll get that. Okay. All right, Renee, you mean to have your hand back up? I did. And I don’t remember what, oh, I know what it was. Hold on to a prop stream. So you were saying perhaps stream. Just wanted to shout out to everybody here. There’s another company called privy, which is also something people might want to take a look at.
If you don’t need all the information from propstream. It’s looking at it now go, go privy now. Dot com. And I’ve been using that too. Just a subsidiary. It’s a little easier to use. It’s more like an MLS, a national MLS than propstream, is so data-heavy. I don’t know that one. What’s the what’s your monthly expense on that one?
Yeah, it’s the same. I think it’s a hundred bucks, 90 nineties, whatever they make at $97. And I split it with somebody, he just sells me the money. So if you guys want me to do that, you can always hit me up and share the cost. Yeah. Huh. All right. Thanks for that. I didn’t know. There are others like there’s Remine, Propelio realflow, propstream, and now privy.
So those are all kinds of big data, real estate plans. All right. Guys, I’m going to wrap up the day. Thanks so much for an engaging call. Dave, good to hear you’re making it in this career. I hope you can get your cash flow caught up and it’s not such a struggle next quarter, um, for, for a real man
thanks for sharing both your lifestyle accomplishments and your business accomplishments. Nice to have you here. And uh, everybody we’ll see you around next week or sometimes between here and there. Have a great day.
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