#52 | Wholesaling Real Estate For BEGINNERS| Comping Properties and Underwriting Deals

[Music] [Music] [Music] there we go. Took us a couple intros, but we made it. We made it, J. Look at this. Bas is, uh, T minus three minutes behind us, so he will hop on here as soon as possible. But listen to this, Jamal. Listen to this. Yes. If you watched every episode of Wholesale Hotline, one to the end of this one, it'll take you three days, days and 8 hours to watch every single one that we have done. Isn't that crazy? Wow. Over 4,680 minutes of Wholesale Hotline for everybody. And honestly, Jamal, I mean, it's all about it's all about this group. This, uh, over 100 plus people that are already jumping on here, that have been on week after week and telling everybody about it and growing. And it, it's just gotten really exciting over the last 52 weeks. What do you think, man? Like, honestly, dude, I didn't expect. Well, I'm not going to say that because I always expect things to be amazing, but, um, truly, truly just amazed at the outpouring of support, how many viewers we have, how many people are gaining a substantial amount of value, of of value from this program. You know, Pace and I have traveled across the country and, and I hear it week after week, time after time, Wholesale Hotline is a favorite. You know, this is the, uh, the gateway drug for a lot of new wholesalers in the business. They learn about it through Wholesale Hotline or they, they see something. And, and all of the information that we've been giving away here, Brent has helped so many hundreds of thousands of people. Uh, it is a blessing, man. And I just thank you for, for doing this, doing this with us, doing this with me and Pace. And so awesome. It's incredible. And, uh, even though I don't travel around with you guys as much, these Mondays, I mean, it's, it's, it's a staple in my, in my schedule. And it's not just from a standpoint of, oh, let's get a bazillion people on here and watch it, but really the feedback that we get through DMs, through emails, through people going to our sites. Let me put those on there, just so that everybody has that, um, and really taking advantage of the toolboxes that we give them, the free downloads or free guides or whatever it is. Um, it's been, it's been incredible. The impact has been absolutely bananas. I'm excited to do another 500 episodes with you two, uh, knuckleheads. And, uh, it's exciting because this week we really get into it. I mean, after a year of doing all these, we've got a nice rhythm where, you know, the first kind of 10, 15, 20 minutes, we get in, we settle in, we start going, we do the instruction, we start peeling back some layers. And then the remainder, the other 70, you know, 60 to 70 minutes is really answering questions and deep diving. And my favorite part, you know, it's ringing the bell and, and, and giving everybody support for, for the success that they're having. So, uh, it's absolutely incredible. So, Pace, there he is. He is here. Boom. I'm sorry, guys. I got carried away in a fun conversation today. Okay. Well, listen, listen, Pace. Back to back to back to back to back. Three days and eight hours. It would take somebody to watch all the hotlines that we've put out so far. Wow. Wow. Yeah. Yeah. I had a really good. Somebody left a really good comment. So I had a, was comment called me today and they said, um, dude, I just started watching Wholesale Hotline. This is a guy that's been doing, uh, probably makes 50 to $70,000 a month for the last like five years. Like, very high level, does very, very well. And he was like, I, you know, we just felt like we needed to get back in touch. Me and my partner, we need to get back in touch into, you know, what everybody's doing in wholesale. We go, we find your guys' podcast and we're like, there is this is the craziest value. And I was like, man, that says a lot to me for guys that have been in this business for seven years are like, this is what he says to me. His name is Jake. He says, if I just knew this information from day one, I would have been five years ahead of where I currently am. Yep. And all it would take is three days straight to catch up. That should be my next stunt is just go, all right, guys, I'm going to relisten to all Wholesale Hotline standing up with no sleep for three and a half days. No water. No water. That's [Laughter] right. J. I'm so pumped about the topic of the day. Me too. We were just getting into it. Yeah, me too. So, Pace, um, do you know that, that, uh, that picture I shared today on my Instagram? If I sent that to you, could you put it up on the screen? Yes, I have it. No, yeah. Text it to me. I'll text it to you right now. Yeah, I'll pop it up right now. I'd like for everybody to take a good look at it. And I'm just going to go over the concepts and then we can, can start looking at houses and start, uh, evaluating some, uh, um, some property. So I just sent that to you, Pace. Guys, these are the appraisal rules that Pace is going to be sharing on his screen in a moment here. What do I mean by appraisal rules? So these are the rules that an appraiser would follow when they are evaluating or determining value on a house. Why is it important to follow what appraisers think? Think? Well, because they're the ones who set the value, right? If you, if you say to someone or you tell a rehabber, hey, the ARV on this property is going to be, um, you know, $250,000, you need to be able to justify that. You need to be able to, uh, show how that's possible. And so what we at Astro Flipping and, and, and also, you know, hundreds and thousands of others who have trained on how to comp, we take these appraisal rules as, um, the Bible, the underwriting Bible, right? This, this is exactly, uh, how you should be looking at every property. And I'll just go over some of these, uh, some of these statements here. So, uh, I only compare houses that are within the same subdivision. I'll only compare two houses that are within 200 square feet of each other. Meaning, I don't mean 200 square feet apart. I mean 200 square feet in size, okay? So I'll only plus or minus, plus or minus. So if I, if I have a 1,000 square foot house, I'm only going to be comparing it with an 800 square foot or a 1,200 square foot house. I won't go beyond that, okay? I'm only going to, um, compare the same property types. So if I have a rancher, I'm only going to compare it to another rancher. If I have a two-story, I'm only going to compare it to another two-story. If it's in a historic district, I'm only going to be using properties that are within a historic district. You, I've seen this happen plenty of times when someone will have a house that's not in a historic district, but they'll bring a comp from a historic district and try to justify the value of their property based on the value that was got in that historic district. Not possible, right? So you have to make sure that you're, um, you're comparing within the same type of, of, of property type. I do not cross any major roads. Okay? I, I, I, I would rather go back in time before I, I look or, or leave a subdivision or cross a major road. And, uh, I'll only compare properties that are within five years of construction. So if I have a 1980 build, I can compare it with a 1975 and a 1985, um, but I, and really, some of these rules can be somewhat adjusted, plus or minus a little bit, but not much, right? I, and what I, what the reason why I say five years of construction is because five years is truly a generational build type. What do I mean by that? So the houses that were built in the 1980s, uh, in the, you know, late '70s, early '80s, they're all going to be of the same type. The building materials will be the same, the architectures will be very similar, same type of plumbing, same type of electrical. What you find happens within five-year blocks, construction quality changes, right? If you look at the construction quality of the early 2000s to the mid-2000s, like 2000 to 2007, it's lower quality construction than in 1985 to 1995. Why? Because we were in the middle of a housing boom. And so you'll find that there'll be nuances or differences in construction based off the generation of the build. And you have to pay attention to that because the appraisers are paying attention to that. Um, and what do I mean by better to time travel than to leave a subdivision? Well, a lot of times you want to be pulling your comps within six months, okay? Within six months of the last sale or a year. But if I can't find a comp that's, you know, within a year or six months, I'll even go back 18 months before I'll leave my subdivision or before I'll go and, you know, cross a major road to go pull a comp. Because I know an appraiser would rather go back in time than leave a subdivision. What do I mean by adjustments here, guys? I'm just talking about increasing or decreasing value based off of these situations. So if I have a bedroom or I'm missing a bedroom to add a bedroom, I can increase in value anywhere between 10 to $25,000. And it's going to really depend on price point and it's going to really depend on area. Believe it or not, an extra bedroom is worth way more money in the hood than it's worth not in the hood. Why? Because they cram more people into smaller houses there. And so a bedroom is worth more money in, uh, a working-class neighborhood than it is in a really high-end neighborhood. That's just the way it is. Yeah, that's a really good point. So for us, like in Phoenix, um, I would say Marvile, right? They would much rather have an extra extra bedroom in their carport rather than an actual carport. Correct. Or a garage. But same thing in like Gilbert. In Gilbert, they much rather have a garage than an extra bedroom in the garage. Correct. Correct. Right. So that's, dude, this, I cannot. I know I wasn't here at the beginning, and I deeply apologize, but I was so excited about this because Jam and I were on the phone. We were on the horn this morning. And I want everybody to understand how important this conversation is. Jam and I were texting back and forth today about a deal. And I'm driving. So here's what I do, guys. With Jam, I'm driving. I don't even want to comp it. That's why I let Jamal comp most of my stuff. So I go, hey man, I've got a deal just sent to me. And the, the wholesaler sent the deal to me at $300,000. And Jam replies back and goes, ARV is 310, right? And it becomes so common, okay? So common. Common that we get these types of numbers from wholesalers. So I look at it and I, I just reply back to the, the wholesaler, go, man, you got this. You, you want trying to sell this to me at 300? Actually, he locked it up at 300. He locked it up at 300 with an ARV of 310. And so what he thought is like, oh, well, you know, after a renovation, it could be worth more. I go, no, that's the definition of ARV. The ARV is 310. There's nowhere else to go. You can't just turn a $310,000 neighborhood into a $400,000 neighborhood because you do a really good renovation. And so so many wholesalers are locking up deals because they're incorrectly and finding themselves in trouble, not being able to sell these deals because they don't understand what, what Jam is laying out for you guys. This is so critically important because not only does this help you understand where you're going to exit the deal, this helps you understand where you're going to enter and acquire the deal, okay? When I first started working with Jam, I started, I just, this is what I do. This is what we do, especially back in the day when it was just me and my wife. And we, I was sending deals to you. I'd get an address. And before I started negotiating with the seller, I would reach out to Jam and go, where do I need to buy this? And Jam would go, you need to buy. Jam would say, I can sell that for 200. So I go, great. I know somebody's gonna buy this at 200. So I go, Jam, where should I buy? And he goes, if you want to make some money and I want to make some money, buy it at 190 or lower. And I would then go, okay, great. I know that if I want to make $20,000, I got to buy this at 170, 10 max. And then I'm going to sign it to Jam. And Jam is going to help me sell this thing. And that's what I start. That's how I knew where to negotiate with the seller. And I took all the guesswork out. So many people, so many wholesalers getting into the game, they get into these amazing conversations through consistently talking to people, okay? They break through that consistency factor and they start crushing it on the phones and the texts. And they start getting on the phones with sellers just to screw it up by negotiating based on wrong information. Guys, make sure you are paying attention to this. This is critical to not only your ability to disposition, but your ability to do acquisitions. It is absolutely paramount. So many people ask me, how do I comp a property? And I go, talk to a cash buyer. And that is why my team talks to Keigley. Right. Well, and the flip side, I mean, you're, you're talking about locking up things too high. I see a lot of people using that ARV times 70% times repairs, minus repairs, minus what they want, need to, you know, what they want to make in the deal. And they go after properties that like way lower, way lower than the competition is. And then they get frustrated. And they're like, wait, I don't understand. It's only a deal if it's worth 210. I could only pay 95 for this. Why are people getting deals at 125 on this thing? Right? It happens every single day. So it's both sides of the equation. You can go way too low. Now, listen, if you go way too low, the benefit is maybe every once in a while they'll accept it. But for a majority of it, it gets very frustrating if you're putting in all these offers and it's way, way, way, way low. And you don't really understand where your cash buyers are buying to. Pace, this point, you need to know what the cash buyers are buying. And listen, if you're just sitting there and you're like, I don't know any cash buyers, I don't know what's going on. Literally, go on Google. Go to wholesale real estate Memphis, wholesale real estate Louisville, wholesale real estate Dallas. Sign up for all of their free blast outs and see what prices people are putting these out at. And then challenge yourself. Go find three to five properties in that same neighborhood that you're comping to get a feel of what these guys are sending their deals out. And then if you really want to go bananas with it, you can look and see what they actually sold for once they are closed, about 30, 45 days later. You can go back to them, look at what they closed, look at what the spread was. And now you're getting all this information. It's all public data. It's all out there. You're getting all this. It's just extra steps. So you can, you can always, I mean, you can go too high with your with your, um, offers. You can also go too low. If you're competing with other people, now, if you're not competing with other people, it's okay to anchor low and just see where they're at. But if it's close, you need to have a trusted experienced mentor in your market or that can comp from anywhere to take a look at that and make sure that you're making the decision. Because not only could you be missing out on deals, but you could be getting a fraction of what you could make on those deals. I remember the first time I made $15,000 on a wholesale, I thought I was the man. And then two guys here in town, uh, Joe Best and the, and, uh, his partner at the time, took that property and made $45,000. Yeah. No idea. It's such a great point. And I, I, the reason why I'm jumping in and interjecting is because I get to travel with Jamal and spend a lot of time with this man. And I always, I'm always the, they go, who do you want? Who do you want to speak first? And I'm like, I need to speak first because I need to let everybody know how incredibly important what he's about to say is. People need to know to open up their freaking ears. Okay. Cameron Menti is hitting this point home very hard with this question. He says, what's the best formula to use to figure out purchase price? Cameron, if I used a formula every single time on every single house, I would do exactly what happened with, what, what Brent's talking about, which is I would have lost out on deals. Let me tell you a story that happened with me and Jamal years ago, probably about four years ago. I get this lead that comes in off of a direct mail campaign. The house easily worth 1.5 to 1.7 million. How many people have buyers for that? First and foremost, not a lot of people. Secondly, I look at it and I go, I gotta buy this thing at like a million bucks. Okay? So what I did is I called the guy and I go, I'm definitely not your buyer. I would have to be so incredibly low on this thing that it just wouldn't make sense for us to do business. That's what I told the guy. And now, the funny thing is, when you go back to our acquisition Wholesale Hotlines, you'll hear that that's actually one of the best lines to ever tell a seller because then they start chasing you. So I'm thinking the guy's just gonna hang up on me like, oh, these stupid lowballers. He goes, okay, what's that number? So I'm thinking like, it's gonna be crazy low, right? So I call Jam and Jam tells me a number that I would have never believed he could sell that house for, easily $150 to $200,000 over what I thought I needed to to to make the offer for. And that number barely, barely made the number work. That I went back to the guy and he was like, honestly, if you would have said a penny less, I would have hung up on you. But I'm open to having a conversation. And I'm sitting here thinking, Jam, the reason I got this deal done was not my sales skills. It wasn't because of the lead. It was because literally I had access to a buyer through Jamiel's network that would pay a number that any formula would have said he's paying 200 grand too much. So Jamal gives me the number. I go to the guy. The guy goes, all right, even with your number, I'm gonna have to cut a check to get rid of this thing because he bought it in 2008 and refinanced it right at the height of the market. He had zero equity, nothing. Jam made me like $25,000 on a deal that I would have had to lowball this guy 200 grand if I followed the old 70% of ARV formula. So the real formula, here's the formula: Find a buyer or a mentor that actually knows the neighborhoods and what people are paying in those neighborhoods because it's different. Jam can sell deals sometimes at 90 cents on the freaking dollar in specific neighborhoods to some of his re or his big real estate investors, big companies. Then there's other neighborhoods that people don't even want to shake a stick at. So listen to what Jam is saying. This diagram that we're going to put back on the screen is incredibly important. But going back to what Brent and I are yelling is Jam is the key to making this all work. This is why his company's name is Keigley. He is the key. It's, it's funny. I appreciate that, Pace. You know, over the weekend, I got into a little bit of a, of a, of a keyboard battle with a guy in the Superhumans Facebook group. You guys familiar with our, our good buddy Aaron Bevans? Awesome guy. We had him on the show. He had some bonehead in his group by the name of Casey Huff. Yeah, I'm talking to you, Casey Huff. He had some bonehead in his group that decided to come into the group and tell people that it's not important to squat up with people, that getting information and working with people is, is, is against or bad for your business because it's so much better for you to be stuck on an island like a doorknob with your finger in your butthole, not understanding how to do, not understanding how to do this. So for all of you guys that are watching this right now, I'm going to put you on blast in front of 20,000 people. Casey Huff, you suck, bro. The reason why you suck is because you're not down to squat up with people. You don't care about what it means to actually do good business. And you don't care that you tell sellers exactly what you can actually do. And when you understand value, that's why you won't be leaving sellers high and dry when you squat up with people that are in the Sub2 mentorship, or you're in the Astro membership, or TTP, or squatting up with Astro students so that they can understand value a little bit better. That's how this business is done. Through collaboration and cooperation with others, not by being a bonehead on an island. Anyways, I'm done. My rant. If you keep scrolling down, Pace, don't mess with me, guys. I'll put you on blast in front of thousands of people. I don't care. Um, if you take a look here, traffic and commercial. Okay. So what do I mean by this? So if you, if you look at stuff, guys, in these price points under $350k or less, you're going to get some deductions for traffic. Okay? But it's going to be more forgiving if you're under that $350,000 price point. So under $350k, if you're siding, backing, or fronting, uh, uh, uh, traffic, you're going to be getting these deductions, right? $10K, $10K, or sometimes even $20K for losing, for being near traffic. However, when you're in that luxury space, when you're over $500 grand, you start, those numbers, they go, they go up in, increase, they increase exponentially, right? It's not going to be $10K anymore. Now it's 10% when you're siding traffic. Now it's 15% if you're backing traffic or backing commercial, or if you're fronting commercial, you could be losing 20% of value, okay? Because why is that, guys? When you're in this price point, it's incredibly important, incredibly important for you to have a premium lot. Guys, in the $500,000 price point, they don't want to be fronting traffic. They don't want to be siding traffic. They don't want to be backing traffic. So they're going to be taking massive deductions for traffic in those higher price point neighborhoods. And then in addition, guys, for, I've seen this happen a lot when people send me deals that have basements or they have guest houses. You can't take the exact square footage of the basement or the exact square footage of the guest house and add it to your house and say that it's just worth this much more money. Because I have a 500 square foot basement, it's not going to be given full value. In fact, most appraisers aren't even allowed to use basement or guest house square footage. And if you do get them to agree to using it, that at the max, they'll only give you 50% of value for the basement square footage or the guest house square footage. So you got a 500 square foot guest house, the maximum you can give it value for is 250 square feet. You got a 500 square foot basement, the maximum you can give it value for is 250 square feet. See what I mean? 50% of value. All right, Luis asked here, what do I mean by fronting, backing, and siding? Great question. So if my house is fronting the main street, that means that its front door is facing the main street. Okay? If I'm siding it, that means that my front door is side. So the main road would be here and my front door would be facing here. Can you see this? So I'd be, I'd be siding the main road. And backing means that my front door is here and the main road is in my backyard. That's what we mean by fronting, backing, and siding. Love it. And it's really important because it, it is real. There, there is a significant difference in the value. And, and it even goes back to when they were developed, you know, they would develop those ones either first to get them off their books or they would say, you know, do it way, way, way, way later because, I mean, listen, most of the time people are buying properties, buying single-family properties. And, uh, they're starting out. It just depending on where you're at. And there's kids running around. You don't want your kids running into traffic. I mean, it's one of the scariest things as a, as a parent ever is is traffic, right? So you want to, there's, they definitely take a big hit, um, if you're backing them, if you're backing it, fronting it, fronting it, big time. I mean, you know, Jamal, I mean, it's, it's crazy. Commercial is a little bit hit or miss. Just depends on what's behind you and how much action they get and if it's, if it's multiple storied or not. But, you know, in your, your house, right? I had the pleasure of driving by your, your beautiful new property. And, uh, amazing, first of all, guys, you know, some of you don't, don't get the opportunity to see Brent Daniel's mansion, but I got to drive by it the other day. And so Brent Daniels lives in an inner city, real like, um, like cool ass neighborhood that's like right in the mix of all of it. And so there's some, he's not backing, fronting, or siding commercial yet. There's commercial that can see his property just because of the proximity of where he is now. Does that mean that that gives him like a negative? Does that negatively impact his value? No, because of where he is, because he's in the mix, because he basically lives in downtown. There's, it's impossible for him not to see a skyscraper out of his backyard. He's in downtown, right? But if he sided or he backed a skyscraper, that would be a different story, right? So there's a lot of buffer in by from his house. I mean, there's a church, a park, there's so many, so much space between his house and where the commercial is. There's that, there's a, there's a buffer there. But for instance, my house, so I also live in the, in a, uh, inner city neighborhood, but I actually back commercial, right? I don't know if you guys have ever realized this when you come home, but I back commercial, right? Which is why I've got those trees, so that they, they block out some of that commercial. That commercial that I back probably negatively impacts my house $200,000. I don't know. You got a pretty nice house. I know, but I'm just saying, if I was across the road, oh yeah, be worth $200,000 more in that price point, right? So, so you've got to, you've got to make that, that accommodation. That's just the, the way it works. So, uh, I saw another question in here about time travel. So somebody said, you're telling me that you would rather go back 18 months before anything else? No, that's not what I mean. What I mean is before I'm going to leave a subdivision, before I'm, you know, how a lot of realtors, they like to go out a whole mile. So you'll see they'll pull comps from like a whole other city because it's under a mile away. Um, that's not okay, right? You can't. A mile is, is, is literally the, is so far in the grand scheme of distance in terms of comps. So the reason I say I'd rather go back in time if I have a comp in my same subdivision, but it's older than a, a comp I'm using that's farther out, I'd rather use the older comp that's closer to my property, that's more like my property. So what I'm trying to say there is appraisers are more likely to time travel to pull comps than they are to do gymnastics to pull comps. Follow my line of thinking there. Yep. Cool. So I'd love to do some, uh, do some comps with people or answer some more questions. If we want to pull a house up, we can. We, we have, we have a couple people pop some addresses in here. Let me pull that up. There is a question that keeps getting asked over and over and here it is on the screen right now. If you don't mind reading it and saying, saying your answer. Yeah, so, uh, Aberrant Art asked, Aberrant Art asked, Jal, how far is safe from the main road? So it's not a matter of how far is safe, okay? It's, it's more of, is there anything between you and the main road? If there is nothing else between you and the main road, then you're still fronting or siding or backing the main road. There has to, what's safe? Something else in between it. That's safe, okay? That's the only thing that's, that's what's safe. If there's not else, if there's not something else between, then you have to consider it being the, the main road. For instance, guys, you notice how on Camelback, there's like, there's Camelback. This is in Phoenix, guys. We're, I'm just using an example in Phoenix. So this will be lost on some of you, but you notice how Camelback has Camelback and then there's like a second Camelback? Yeah, that's still East Camelback. Yep. Right. Even though, even though there's, there's that, there's that sidewalk there, it's still Camelback and it's still considered the main road. Even though there's a plenty of space between Camelback Road and the frontage of a house that's on Camelback Road, it's, I mean, it's like an entire, you know, two football fields, but it's still considered the main road. It's still, there's nothing between it. So, uh, the answer to that question, Aberrant Art, is, is the only safe distance is something else in between. And Jal, what is the purpose of an appraiser? The purpose, I think this is important. The purpose of an appraiser is, this is the individual that the lender hires. The lender pays them. The banks, the bank, the bank who is going to be giving the money, lending the money on your deal, lending the money on, uh, for the retail buyer who's ultimately going to buy this house. They are hiring appraisers to help them understand value. All right. So a lender will hire a third-party appraiser to check the value, to make sure that their borrower isn't overpaying for the house, that they're not lending too much money on the house, that their loan is going to be secured on this property. So it's important what appraisers are saying because they are the ones who the lenders are relying on for their information. If an appraiser says a house is worth $200,000 and the Pope says the house is worth $210, the appraiser wins. So yeah, I think it's important just so that people understand when people are putting a down payment and getting a loan from a mortgage company, it is a risk to the bank. And the bank wants to mitigate that risk by understanding what is the value of this. So over the years, over years and years and years and years and years, they have determined guidelines based on, is it, is it in front of a major road? Is there issues there? Are, are, over time, over this, the decades that they've had them, is it showing that these properties are not as desirable as the ones that sit off of main roads or not by the freeway or in this neighborhood versus that neighborhood? They get these market statistics, uh, based on years and years and years of experience and appraisers and appraisals. So that's what the, the main point is. Even if you think, oh, but this is a great area and it's a great house and somebody special will buy it and they can just put up a fence and they won't get it, it doesn't matter. They don't care what you think. Okay. Let me show, let me show you this really good comparison. So Jamal, you just brought up Camelback. So right here is the main Camelback. Three lanes on both sides. And then there's this little divider with this little mini street in front of the houses. Right? So this house right here with the black roof was a renovation I did for a fix and flipper like five, six years ago when I was just a contractor. Okay. They also, they thought we're gonna make all of our money on this one because it's off of Camelback. And I'm like, it's, what are you, are you serious? There's nothing between you. There's a fence. There's nothing. Like, literally, it might as well be on Camelback. But they didn't want to take my advice because they thought I was just a contractor. Now, they were also renovating this exact house. In fact, you can see the pool, it was being chipped out and all the renovation being done. That was while I was doing the renovation for them. Okay. They thought, well, we won't do so well because this one's right on the busy road. And I'm thinking, you're gonna lose your butt on both of these. Yes. It doesn't matter. Let me guess, Pace. They were pulling a comp from like Pasadena, right behind there? They pulled comps back here. Yeah, dude, yeah. And comes back here. Night and day. And you're, you're within a quarter mile. Look, I've done, I've sold. See right there on Pasadena, that whole block of black roofs over there. See that little, that cul-de-sac right off Pasadena? Third, I sold every one of those houses. Every single one of them. And every one of them, okay, were, were off of Pasadena. And, and, and they were desirable because they were, there were, there was a, there was a street between them and Camelback. That's it. Yes. That's it. What do you, what do you think happened to this? The person that was doing this house, unless they bought that thing for a significant discount, they lost their ass, bro. They, this is what they did. They had, um, pulled out all their money out of their 401k to do these fix and flips, all their retirement. They ended up losing about half a million dollars between those two properties alone. And they, they basically had to file bankruptcy. What happened is on the second property, the one that is on Camelback, at the end of the project, they knew they were going to lose their butt on the first one because it was finished. You could see one was still being done when Google Maps took the photos, and the other one was, you know, in the middle of process. Right. The second house, they were like, we can't afford our own appliance package. And I paid for their Thermador appliance package of like $18,000. I never got paid ever because they lost so much money on the other property. And they had to go and get a second, like brought in friends and family to pay their hard money payments the whole stinking time. And I had no idea what was going on, right? This was kind of the same time that Voldemort was taking me for everything, where I was just basically taking all my wholesale money and helping all these fix and flippers with their stupid projects. They didn't know what they were doing. And I buy this Thermador package. And the realtor walks in and goes, wow, wow, this, they're gonna lose their butt on this. Why did they even buy the Thermador package? They might, this was a waste of money. I'm like, why? And they go, it's on Camelback. They're going to lose their, they're going to lose their butt. And that's what happened. They ended up filing bankruptcy. They went from being retired and thinking they're going to fix and flip in their spare time to done bankrupt. Back. Both of them had to go back and get jobs at the ripe old age of like 61. And these are things, Pace, that when we're doing that A&E show, we're going to talk about because, you know, a lot of guys, they're watching these HGTV shows, they're watching these rehab shows, and no one's talking about this stuff. The things that'll get you, that'll make you go bankrupt, the things that people aren't sharing with you that and that truly affect value. Right. Let's check this out. So let me, can I share my screen here? I don't know if I've got the same, uh, uh, let's see here. You should have that little share button. Yep. Can you guys, uh, can you guys see my screen? You'll have to add. There you go. All right, let's check out, let's check out this house. So this is for Lance. Yep. Guys, if you're going to comp properties or you want, want Jam to comp some properties, throw some addresses in here. I see a bunch of them popping in here. So it looks like we're gonna, you're gonna be comping the rest of the show, Jam. So, you know, I've been, I've been having a hard time trying to get Batch to pull up on my computer for whatever reason. I, I think it's mine, my cookies or something, because everyone else seems to be able to. And this has been happening to me since Friday. But let's see. Oh, there we go. Okay, there we go. Again, you got Michelle from Batch's login. Yeah, bro. How do I get that? That's, I start spending all of Batch's money. Yeah, but the question is, does he have the password? I do. I do. I do. Oh, I love. Wow. Jam, you have got, you know, it's funny, Brent. Jam and I travel around the country, as you know. And what happens is, Jam has a parlor trick. Okay. Yep, yep. And I have a parlor trick. So it's like, you know, when, like, um, let's say Floyd Mayweather runs into a stadium and everybody just like, can't wait to watch him fight. Yep. That's like his thing. People know him for, right? So they're patting him on the back and they're, you know, oh my gosh, and he's running into the ring. That's how it feels I feel when I walk into a seminar or a meetup or something like that. But it's not people patting me on the back. It's people handing me their cell phone and saying, please call my seller for me. Right. And Jam, Jam's is, here's an address, comp this for me. Right. It's like a parlor trick. It's like, no matter where you go, the party, everybody at the party wants you to do this one trick. And so that's Jam's trick. Is that no matter where I go, he, I could watch him comp for five, six hours and people would, they just line up for hours to watch him comp. Yeah. We should be, I can't believe we haven't done this in this whole year. I know we've been doing Wholesale Hotline, we haven't had Jam on here. So, you know, we are in, um, uh, uh, Texas. And so because it's Texas, there's not, there's, it's a non-disclosure. So there's gonna be less comps available. But let's just see what's here. Doesn't look like there's a lot for us to check. Um, but here, here's a great example of what I mean by build generation. So, um, you see right here, we've got year built of our subject is 1930. And, uh, the comp that, that, the only, only, there's a very few comps available, but the one comp that we do have, uh, it's within 200 square feet. I like that. It's within very close in lot size. So I like that. They both don't have pools. This is our subject is a 1930 and the comp is a 1920. I would consider that the same build type, the same build generation. Why? Because they weren't building as many houses in the 1920s and 1930s as they are say between 2005 and 2015. And so it's still very similar in build generation. So I'd say that this is, uh, an a similar comp. And they're both duplexes. And so here's, just because we don't have a lot, a lot of, uh, comps to go after, this was done in 19, in 2019, uh, this sale, and it was for 296. Now, we know that from 2019 to 2021, we've had about 10% appreciation. So I'm gonna give this an additional $29,000 in value just based off the appreciation because I know that we don't have extra comps to use. So I'm gonna say that the ARV on this one's probably about 325. That's how I, that's how I come to value on that. Love it. Okay, you want to do a non, there's a couple guys in here saying, let's go, let's try someone that's that's that's, uh, in a disclosure state. Cool. So Pennsylvania. Pen, Pennsylvania. Okay, let's see what's happening in Pennsylvania. Can you see my screen? Yep. Yes. All right, okay. Uh, can you just read me the address, Pacer? Uh, yeah, 2646 Lake Road in Sharpsville, Pennsylvania. Boom. For anybody that wants this comping tool, what's the code that they would use for Wholesale Hotline? Batch Leads. I squad up. Batch Leads. Squad Up. Guys, if you are not, sorry, go ahead, Pace. What's that? Brent? No, I'm just wondering, are you, yeah, sorry, go ahead and let them know what resource. My bad. So Jam is using Batch Leads to do the comps on this. Guys, if you are looking for something to do, uh, comps on, I just dropped it on the screen. Batch Leads. Squad Up. The reason the Squad Up is there is because, um, Jam, Brent, and I get paid probably like 14 cents to go to go buy sushi with. So I call it my sushi. Our sushi code. Well, no, it also gives them the, like, there's a free trial and it gives them a free. So we get sushi, we get sushi, and you guys get discounts. Yep. So we all win. So if you guys use the code Squad Up, you'll get discounts. Um, but this is the tool that we've switched to as well. Yep. It's a, it's a fantastic tool, honestly. I like it way better than Zillow. So, so let's take a look at what we've got here, guys. Um, we're, we don't have year built, which I don't like. So that means that there's, uh, not, there's not that much detail, um, on this specific house. Let's see what else we've got here. So this one on 2634 Lake Road, which is 0.06 miles away, which is also on a lot that's fairly large, that's an acre lot, almost. And ours is 30,000 square feet. So very close. I think that our most viable comp, okay, and it's done, and it's from 11/29/2020 for 170. Now, the only thing that we're missing here is square footage. We don't know the square footage of our subject, and we don't know the square footage of the comp. So that could, that could be negatively affecting, uh, value here, um, for whatever reason, it's not, it's not listed. I'm just gonna check Zillow to make sure that that, um, that it's, it's an actual tax record thing and not maybe not something something that's going on with Batch. Let me just quickly look on my phone. And Pace, when you're pulling comps, maybe we could just switch to us for a second. When, when, when you're pulling comps, Pace, are you using active pendings from the MLS? Only solds? Only solds. Only solds. Yeah, I mean, my partner Cody is so conservative on everything. It's one of the reasons why I have never lost money on a deal. Yeah. I mean, here's the challenge. He's very conservative on fix and flips. And so what the great thing is, one, we don't lose money. Two, is in an appreciating market, especially like the last year, we're getting our houses sold $105,000 over what we even list them for, which is amazing. But it'll even be better in a downward trending market because we're so conservative. Right. Only going off of sold comps. Um, we don't get a lot of people. I know this is from a fix and flip answer, but we don't get a lot of appraisals coming in low either because of that. And I hear a lot of our cohorts, our friends, our buddies out there fixing and flipping that are

Like, oh yeah, our appraisal came in 20 grand low, and it was because they were comping based off of a pending deal that might not have even ended up appraising right. So, yeah, that's on Fix and Flip for wholesale. Um, to be honest, when we send out our comps, we tell, we show people pendings like, "Hey, this is the potential. We don't know where this is going to be, but we will show them pending comps."

Love it. Pending, pending. Uh, and I love that answer, Pace. You're, you're 100% correct. Pending will tell you where things are trending, right? That's the rhyme. If it's pending, that's where it's trending. Yep. But it's not a comp because you don't know that it's actually going to record there. Yep. Um, the, the, it's not a, not a batch problem, it's a tax record situation. So, um, that 170 is the ARV. That's the ARV, and it's, it's a direct pump. It's right beside it. It's two doors down.

All right, oh, here's a Tucson one. Oh, I love Tucson. Let's check it out. Come on, you don't even need to pull it up. Just give him a, just give him an offer. I'm gonna throw one out. I'm gonna throw one out. How big is it? How big is this house? Uh, we don't know yet. What's the address? Oh, crap, I just took it off the screen because I thought you had it. My bad, my, my bad. I'll pull it up. Give me just one second. 7548 South, or 7548 South Vosa, Tucson. Vosa.

Um, question here. Serge says, "I'm on my way, putting my first deal under contract. Should I ask my cash buyer all for the highest and best at the same time, or is there a better way to request offers for my cash buyers?" That's a great question. Jam, can we, can I point out something real quick before you deep dive? This will you go up to the top there real quick? You see where that says the MLS info? Guys, this is the power of BatchLeads. They've got access to the MLS data throughout the country. Okay? Now, this is very, very, very important because look what happened. They tried to sell this property two years ago for $170,000. You can look up and see that they bought that, at least there's a mortgage on it for $115,000 in 2017. So now we're playing around with how do we, what do we offer them? What are their expectations going to be? When you see that they had it on the market for $169,900, all right, and it didn't sell, they canceled it, right? It didn't sell. But now it's been two years later. They've only owned it for three years. Have they really done much to this property? I would expect that this seller's expectations for this property are going to be closer to about 185, if not 200,000. And whoever posted this, let me know if the seller threw out a price for you on this thing because I'd be really curious to know. Because sellers start increasing the value even if it didn't sell. But let's comp this thing and see what you should offer.

Love that, Brent. Love that. So, yeah, go ahead. No, the reason I bring that up is because we spin our wheels. We've got the data right there. We know if we have the data, and, and, and we're trying to pull a price out of them, and they're like, "No, give me your best offer." Then you can just throw some, you can take a shot across the bow at 50 or 60%, and they tell you, "No way, never. I want 200." And then you move on. The issue is, we hold on to people that want to sell right now, and we're like, "Oh my gosh, if they just sell at my price, it's going to be a great deal." But then you get to the point where you're starting to negotiate the price, and doing the comps, and driving by the property, and taking pictures, and getting excited, and wasting all this time when they'll never do business with you at the price that you want. And you could have known that right there by clicking this while you're on the phone with them and saying, "Well, it looks like you had it on the market two years ago for $170,000. Is that kind of what you're looking for, Mr. or Mrs. Seller?" Yes? No? Maybe? So it's gonna allow you to pre-qualify a lot faster. Correct. Correct.

All right, so see what I'm doing here, guys? Just doing this. I'm not crossing any majors. Staying in this little. There's a, that's a main road here, Lost Ralis. And then this here on Cardinal is also a busy street. Uh, that's where I'm drawing my line here. Now, let's take a look. Did you see that somebody just posted? It's on the market right now for $199,000. There you go. What did I just say? That's exactly what you said. Come on. Yep. God, I love this business. It's amazing, isn't it? It is.

What was our answer for, uh, Serge? Joseph on his way to, um, locking up his first contract. Congratulations, by the way. Should I ask my cash buyers for the highest and best at the same time, or is there a better way to request offers for my cash buyers? I think ask for the, ask for it at the same time. That gives you, that gives you a range of where your buyers are all going to be at before you go to the house. What are your thoughts, Pace? Um, I always, this is what I typically say. I typically say, um, "Hey, before I send this out to my full list, I'd love to get your highest and best, right?" Um, and I, I just, and then I give them a couple of hours. I'll say, "Hey, give me, let me know within the next couple of hours where you'd be on this before I send it out to my list." Because two things happen there. One, you remind them that they're not the only person that you're sending deals to, so that you don't become this, you know, Brent's been a victim of this, Jam's been a victim of this, and I've been a victim of this, is that you get like one or two cash buyers that you basically become, you're the employee of the cash buyer, where you just keep sending all your deals to this one person, and you think you're getting a good deal, and they know they have you under their thumb as well, right? Yep. Yep. Um, so you want to make sure you remind people, "Hey, before I send this out to my whole list, I wanted to give you access for the next couple of hours. Give me your highest and best." And when then when they come back and give you a price, you go, "I was hoping for a little bit more. Let me know if you can come up an extra $5,000 before I send this out to the rest of the list, right?" You can then leverage the rest of your list, even if it doesn't exist. You can leverage the rest of that list as a way to get more and more money. So, "Before I send this out to the rest of my list, I wanted to give you first dibs," because then you're making them feel special. And don't be one of those guys that sends it out to the whole list and says, "You're that, you're not going to truly give five to 10 people first right of refusal." But don't send it to only one person and say you're sending, don't send it to 10 people and say you're only sending it to one, because you'll put, get yourself in a really big bind when three people all come and say, "I want it." And now what do you do? Backpedal, and it's gross. It's horrible. Yeah.

So, guys, uh, I want to point something out about this house. Are we back on my screen by chance? Yeah, you are. Okay. So you see the square footage here, 3630. This is the biggest house in the, in the area. All right? There's nothing that's the same size as this house. And so this, this, the sellers are probably taking a dollar per square foot and in their mind, they believe that they can just take a dollar per square foot and extrapolate it all to 3630 square feet of their house, and that will give them their ARV, or that will tell them what the value of their house is. It's not true. An appraiser is going to take the maximum that is that something is sold there and maybe give you an additional $10,000 in, in value for a larger house, but not that much more. They're not going to take a dollar per square foot, uh, uh, multiple and ride that all the way to 3630 with you. Not possible. So let's look at these comps off the hop. The ones that I'm going to disqualify. You see this big 326,000 square foot lot? Yeah, that's not, that's not staying. This 7,000 square foot lot here, that's not staying. So this has to go. This has to go. And I've got to stay somewhere around this 1985, 1980 year build. So these comps right here, these ones are the ones that are my favorite. So I'm seeing, you know, a 220, 215, 220. That is probably going to be my, the height of my value. I'm gonna say 225 is the ARV. This guy's got it listed at 199. Uh, so he's, you know, he's overpriced, which is exactly the reason why he hasn't sold this property yet. I think this is important too. If you guys don't mind me sharing this screen real quick. Um, this is, can I do that? Am I allowed? Um, while Brent is doing that, I had a really, really good question here. Um, Jenkins Jenkins says, "When you present a deal to your cash buyer, do you give him or her an asking price, or do you ask them to make an offer to get an idea of what a cash buyer will pay for that deal?" Now, if you're brand new, what my suggestion is, before you start negotiating with a seller, is I would say, "Hey, where would you be a buyer on this site unseen? I'm still negotiating this deal with the seller." Right? That's what we do with Keigley. That's what we do with Jam and his team. Now, if I've already locked up the deal, I'm the person selling the product. You don't go to Walmart and walk in there and their shelves don't have price tags on them, right? Now, you need, if you're the one selling the product, you need to be the one naming the price. So you look at Keigley's website or their blast, there's a price attached to it. So always give them the price that you're looking for. Now, if you have five or six people come in and all say they want it at the same time, now there's a couple of ways to handle that. One, you could be the person that honors your asking price and you go to the timestamp of who replied and committed first. B, you could say, "Whoever gets earnest money to the title company first gets the price." Or you can kind of maybe rub people the wrong way and say, "Highest and best. I got five people want this. I'm going with whoever brings in more money." But I think you rub people the wrong way when you do that, don't you agree, Jam? 100% agree. They, they just want to know what the, what's the price? Can you give me a price? And if you're going to ask them, "What's the highest they can pay?" Um, you know, that's going to come with its own anxiety for a buyer. I, I'll give you straight up, like, if somebody says to me, "What's the most you can pay for it?" I feel like, get that sock out of my mouth. Yeah. I want, I want a taste. Your question did. Can you guys see this? Yep. Is mine pulled up? Can you see the Zillow? Look at this. Yeah, it's on Zillow right now. I pull this up. I, I'll, all I will always Google every address. Look at this thing, Jam. What does this tell you? What does this picture tell you right here? Gross. Gross. This elevation is nasty. This house, add-on after add-on after add-on after add-on. You see that? That used to be a garage. Yep. You see that down there? Those two windows that don't look like they should be there? That, that's a converted garage. You see that addition on the left and on the right? This whole house has been added onto. That's why it's eight bedrooms. Yep. This, this house has, was, um, how he, he or she hid their families from each other? I don't know. Yeah, exactly. Y. Um, but the point I make is, you know, when you pulled up, Jamal, you had in there that they owed about $117,000. What I would do with this is I would take a look and say, "If I gave them, if I could just pay off what they owe on this, uh, or if they come out of pocket a little bit, will they move on it?" Right? That's, that's what I'm looking for. Because they made a bad purchase. They made a bad purchase. But based on, they thought that bigger was better, and it's not. Floor plan matters a lot, guys. The feel of a house matters a lot. It's like the soul of it. The way that it looks when you walk up, the way that it feels when you're inside it. You know, a lot of 1980s, during the '80s, people went wacky and they put multiple different layers and they put different smaller rooms and they made it very, it's like the opposite of what everybody wants now. So really watch it. The '70s and '80s, when you pick up properties throughout the country, it is really, you have to figure out, can I reformat this floor plan to make it more digestible to everybody now? That is a really important question to ask. If the answer is no, then you need to get it significantly lower. All right? Now, I get this on, on that listing, it literally said, "As is, investor only, cash only." Well, yeah, of course. I mean, pull that back up. That back up on, on Z again. Just, just show it to again, Brent, because I, I want to show the people that are watching here the things to look at. Let's go back to the descrip, go back to the description of what they're saying. So look, time on Zillow, how many days is that? Six months. Six months in the hottest real estate market in the history of the United States is could be six years. That's how bad this pricing is, okay? Yeah, they're, they're at 199k and they've been on the market for six months. At least the pool's clean. At least the pool's clean, okay? I can tell you this. Notice is Pace. Oh my gosh. Yep. You know, I mean, they're just getting code violations. They're eating it now. They, they might have had unpermitted additions here. This is, this is a big, this is a big, big, big, big. Um, now, don't, pictures. Let's scroll down to the description down there, Brent. If you go to the description, yeah, right there. I want to see the words that these guys are saying. Oh, that it's, it's, that's it. I showed you it. Facts and features. Anything in there that's it? Wow. Yep. Wow. And they're, they're listing it as 4,000 square feet, so higher than the tax record. So I mean, that's where these guys. And if you do, they have, are they sharing anything about what they think the value is of this thing? Nope. I mean, yeah, I mean, in, in Zillow, Zillow had it at 196. Y. Y. That's about ARV. I think ARV on this at tops is 220 at tops, but it's going to take a massive renovation to get it there. So they, they're, they're overpriced by about 80 grand on this house. I wouldn't, I wouldn't pay a stitch over 120 for it. And they owe 117. So that's, that's where you need to go at. And they need to get either realistic, or they need to, I don't even know if you can sell. They'd have to sink in a lot of funds, and they probably already tried. You could see they were moving walls, they were doing some stuff. They probably already tried and they were like, "Oh no, I hope I don't fall." You know, they, I mean, it, they just, it just, yeah, it's just not a good deal. And when you have something that's Frankenstein like that, and we call it Frankenstein because literally they're just putting different parts onto this house, you, you know, and, and, and making it non-traditional. So, um, you know, I think that seller said it was 300,000 was ARV. That's what Jordan. Yeah. So, so, you know, again, uh, I, that's, that's sad for the seller. Uh, they probably bought that house from a wholesaler who just did it wrong. 100%. Yep. Yep.

Somebody said there, "How important is the last sale date when you're looking at comps?" So it depends. Like, I, I said earlier in today's show, an appraiser will travel back in time before they'll leave a subdivision to find their comp, but that is up to a point, okay? If the market has turned in direction within the last 12 months, then you have to be very, very, very timely in running your comps. So that we've noticed since 2010 all the way up to now, so the last 10 years, the market has been going up, has been increasing. And because it's been going in the same direction, we can still pull comps from some time ago and still be heading in the right direction. But when I was pulling comps in 2008, I couldn't be, I couldn't be using comps from 2007 because the market turned. Right? When the market turns, when the market turns direction, that's when you have to have a full stop and you have to start using comps within the last six months. But since the market hasn't changed direction since 2010, you can go farther back in time than than leaving a subdivision to find your comps. And guys, if you're having any trouble finding value, you can see that in the, in the comments here. We've got Keigley Dispo. They're here asking you guys if you have any deals across the country to send them to them, and they'll help you with your valuations. So reach out to Keigley Dispo. They're in the comments there. If you've got any deals across the country and you need help running value, running comps to know what price you need to lock this up at, reach out to Keigley Dispo, and they'll give you a hand. Yeah, and I really like this, uh, question by Liam. Liam, um, if it's a '70s or '80s or something a little bit strange, maybe even a historic property. Some historic properties have a bedroom and then a doorway, and it's the next bedroom. So it's really, it's really awkward. It's not real traditional. Sometimes it can be charming, but most of the times it's not. So when I'm looking at anything that's '70s or '80s, I try to find most of the time there's, there's a, there's a model match, uh, close to it in the neighborhood. And I'm looking to look in there and see if there's any, you know, a lot of these, they put the sunken in, you know, like fireplaces or living rooms, or they have step-ups and step-downs, and it's just all the angles. So you can usually find something that's pretty similar to it. If it's a '70s or '80s, if it's just kind of a standard ranch and it's more of a traditional build, then it's a lot easier. But I always look for that. I always look for if it's in, in Arizona, we have something, uh, called tri-level homes, and a lot of those were done in that '80s, and those are really, those are tough to move. I mean, it's just an awkward floor plan. So, um, I always take a discount on those as well. Floor plan, location on major roads, and, uh, backing to anything wacky, um, you, you have to take, you have to take that into account. You can't make it the same as something that's sitting beautifully in the middle of the neighborhood, or like Jamal pointed out right there, in the cul-de-sac, which is like prime time, you know what I mean? You're in a beautiful cul-de-sac, it's off the main street, that's going to play a lot better, that's going to get a lot more value than something that's sitting on a major street. Awesome. Yep.

Let's keep it going. Do we want to comp another? Yeah, I threw one on the screen. All right, Martinez, Georgia. It's a, where's Martinez, Georgia? We're about to find out. We're about to find out, baby. All right, Pace, will you read me the address, sir? Ford, 4109 Clinton Way East, Martinez, Georgia. And guys, when you were pulling these comps, you know, you're using, um, BatchLeads. If that property was listed on the market, it would have had the images for it. It was a for sale by owner, that's why I always suggest you Google that address as well, just to see if there's any shenanigans going on with Zillow. Shenanigans. It's a good word, Brent. Thank you. You're crushing today. Jamal, crushing. Trying, man. I'm trying. You know, and you know what I like, Pace, not having a hat on? I do. I'm gonna say it. I like the hair out. Everybody thinks he's balding. He's not balding. He's got a great set of hair. He's got a great set of hair. Yep. Yeah, Pace has a, Pace has a, has a good lid on him for sure. All that lettuce. Yeah, there's a, there's a quite a few comps here, guys. I, I, Oh, that's juicy, juicy, super juicy. All right, let's see what we got. All those orange, all those orange dots. Gonna make some orange juice. That's some juicy, juicy comp. Um, all right, let's check it out. So, um, boom, here's our subject. We got a three-bed, two-bath, 1594-footer, sitting on a 14,000 square foot lot, built in '85. All right. Uh, it was last sold for 134,900. Let's see what we got here. Hey guys, thank you for everybody that tags us on Instagram, by the way. I'm just going through and I always pull like, as some Jam or Brent are like crushing it and making amazing, uh, comments and answering questions, I'll pull up the Instagram DMs and just, you know, repost or just thank you guys. So thank you so much for posting us on Instagram and just getting the word out. It's crazy how much value that we've given in just one year. And so we want to know, we want as many people to know about this show as possible so you guys have more opportunities to squat up. We got 450 people that basically have watched this show the whole time live. You know, that's people coming in and coming out. So thousands of people come through the show while it's live. It's an amazing opportunity for you guys to squat up with each other and get to know people that you can do deals with. So keep inviting people to the show. Please do it right now. If you haven't invited people on Facebook or shared the YouTube link on your own Instagram, do us a favor. Throw us on your Instagram. Put us on your stories. Tag us so we can retag you guys. We really appreciate it. Thank you. Thank you, Pace. Um, if you guys can see here, uh, we've got a 1985 build. I like this one that's built in 1979. So you can see I'm, I'm, you know, that's six years apart. So I, I'm, I'm, I'm gonna be a little forgiving there. It's a little bit larger than our subject, uh, and it's sold for 185. So that tells me our subject is worth a little less than 185 because of the size. Uh, then we've got here, we've got a 1362 square footer that's 0.2 miles away. It's also a three-bed, two-bath. That's 200 square feet smaller, a year newer, smaller lot, that's sold for 182. So I think that that the 182 to 185 ARV is where we're at on that house. And see how I was able to find that? I knew that from a 1362 footer, our, our, our height was 182. And from a 1778 square footer, our, our height was 185. So I'm going to be between 182 and 185. I'm gonna call it there. Super simple, easy peasy, lemon squeezy. 185 ARV, baby, all day. Now, let's, let's break down real quick. And Pace, why don't you go through it, and then I'll go through mine. What would you, you offer on it if its ARV is 185? What do you offer, Pace? Well, I know Augusta, Georgia, so I have an answer. Um, ARV is 185. Yep. I would, I would probably offer, depending on condition of the property, anywhere between 100 to 130. Yep. Um, obviously, if it's in horrible condition, I'd be somewhere around 100. If it's in decent condition, I'd be at 130. Yep. Um, I do a lot of fix and flips, so I'm con, I'm really conservative. And we build a lot. We love our cash buyers. Like, I want my cash buyers coming back to me and saying, "Dude, I made $25,000 on that deal. Get me another one. I made $30,000 on that deal. Get me another one." Like, I want, if I get a deal that my cash buyers can't make money on, I don't feel right sending the deal out. Like, I laugh at all these wholesalers sending out deals. I'm like, "Y'all don't care about your customers." Your customer, and a happy customer, is how you should be building a business. If your customers can't make money on your product, you don't have a business. So for me, I care about my pro, I care about my product. Leaving meat on the bone. I'd probably be max 130 on that deal. So in Augusta, Georgia, you want to be at 55% of ARV just because of the age of the construction and how things kind of go in that part of the country. So if ARV is 185, I want to be at 55%. I'm, I want to be closer to around 100, 105k on my own offer. I probably be selling, I'll probably be selling for around 120. Yep. I was at 95 because I like big deals. So yeah, no, honestly, 95. It works with that. I put 30 grand in for fix-up, left plenty of room for anybody that wants to do something. But speak to this, Jamal, because this is an experience that you and I went through on a deal about three years ago, and it's interesting because it's, it's, it's kind of a different take on what Pace is saying now. You took a deal from me. I sold a deal to you. You put it out to your people, and because you have such a big list, you had a one-time buyer that wanted to live in this property, and you made an additional like $52,000 on a deal that I made like 30 on. You know what I mean? So how do we play that? How do we play both sides of that? How do we keep our buyers happy, but also understand that there's potential for somebody? Is it, did you have that guy in your pocket, and you just knew that they wanted to be in that area, and you were able to move and shake because you talked to them? Like, kind of talk us through that. 100%. 100%. If I was sending that deal out to my entire list, Brent, there's no chance I would have hit it out of the park like that. I knew I had a parlay right to my buyer, right? I knew that he was standing right there with his hands out, ready to take that, take that ball from me at at that price because he was an end-user. And as an end-user, it made sense. But a lot of times, that's why knowing your buyers, guys, knowing the, having relationships with your buyers is key. Because had I not known that this guy wasn't looking for an end-user property, that exact type of property that Brent had sent out that day, I wouldn't have realized I had an opportunity to make that $50,000, right? I would have sent it out to my just my list and maybe made $5,000 or $10,000 on it, and I would have left $40,000 on the table because I didn't take the time to have a relationship with my buyers. But I also remember this also goes back to guys, if Keigley is in your market and they have somebody, and you're negotiating a deal, and you're wondering if you can make money on it, and they're there to say, "Hey, listen, I've got this pocket buyer that's looking in this area. He'll basically pay retail, maybe a little bit off because it needs some work, but he wants to be in this area. She wants to live here. Uh, you can negotiate it all the way up to here, or you can make a big split, or whatever it is." That has a huge advantage. I wish I would have asked you that. You know what I mean? Hey, hey, take a look at this one. What do you think we can pay for it? And then all of a sudden, boom. I mean, it's just, it's a, it's a wonderful safety net. I'm so happy to see over the last year the, the, the tentacles of, uh, of Keigley's, uh, value and comping getting, getting, uh, nationwide. It's, it's incredible. Appreciate that, brother. Thank you. Yep. It's, it's needed. I, I don't know how nobody thought of it before. It's silly. I, I think everybody was just trying to like, you know, keep their, keep their own little small group and you guys around the country. Share people, not trying to hit it again hard, but like that individual, I'm not going to give him, give a sh name anymore. Shine, but it's that mentality. It's that, it's that idea that you can be a bonehead on your own in the world, not wanting to squat up with anybody, that you think that this business works while you're just this little Gollum-ish kind of person sitting in your house being mine, mine, mine, my house, my numbers, my leads. That's what happens to you. That's what you look like out there because nobody wants to work with you because you're not cooperating and you're not going out. And then you're that [ __ ] that's that's canceling deals on sellers because you didn't squat up with somebody who could understand numbers on the dispo side. It's your fault. You want to do this fourplex? I think it'd be really good. So fourplexes are are different to comp. You can't comp them based off of sales. You, you comp them based off of numbers. So Kim Brown, can you tell us what this fourplex, uh, what the units are? Are they one-bedroom, two-bedroom, three-bedroom? How many baths? Uh, what are the rents for each of these units? If you can tell me what each of these four units rents for, I can tell you where you need to lock it up at and what it'll wholesale for. Can we pull it up anyway and just see if there's any, any sales in the area? Maybe it's an area that has a lot of fourplexes or something that would kind of give us a little bit of info. Yep. What, what's the address here? 539 West 23rd Street. Yep. 539 West 23rd Street, Jacksonville. And Jacksonville has some really unique, um, uh, neighborhoods. Some of them are really tight with really historic, charming property. Some are, a lot of multifamily. I mean, it's, uh, it's an interesting market for sure. So I think this is a good exercise at least to kind of pull up and get, you know, some parameters if there are any other, um, uh, fourplexes so we can see that. Let's just, you want to share, make sure you share your screen, brother. Yeah. Can, is my, see, can you guys see my screen? Sorry. No. I actually, this is the first time I've ever done full screen. So I watch all of my streams on this big monitor, huge. It's behind my camera, right? Can you, allows me to work on my computer. Gotta. And I got you guys blown up full size and I'm looking at Jam and Brent and how handsome you guys are. I've never noticed. Want to pop the tops off again, don't you? You want us to pop these tops off, brother? Nice try. Ah, um, so if you guys see this house, it's sold in 2017. Okay. Here's what is interesting to me. She says hers is one bath, one one-bed, one bath equals four units. Each rent for approximately $650 per month. So they're, it's four bed. It's, they're all one-bedroom, one-bath units, correct? And they rent for how much? $650. $650. Okay. Her total rents are $2600 bucks. Okay. So if you look, this sold, uh, for, and I don't know if this is because it's a refi, but it says the total mortgage balance is $109,501, and it's, and the sale amount was $67,500 in 2017. What do you make of that, guys? I would have bought that for $67,500 all day long. Yep. Okay. So, so we know we've got a, is that per unit or is that all four? Not sure. That must be for all four. Because all four, you go for $67,000. That whoever that is is crushing it. Yep. And Jamal, the, um, if you look there, pre-foreclosure, bankruptcy, leans. It looks like there is some property leans there, which is interesting. You could go over there and kind of see what, what's, uh, cracking on that thing. Doesn't show. Okay. A little bit of, little bit of data, uh, deal there. Is there an MLS listing of it there? Uh, that little button right next to the listed at $55k in '17. Market $67,500 is what it's sold for. Wow. How do, how do I go buy a hundred of those? I would buy that all day long. Now, let me tell you what this is worth, okay? Because I, I do this in a number, in a couple of different ways. First, let's just see what we've got in terms of, I love this batch tool. You guys see how cool that is? How much information I was able to just gain? It's insane. It's way faster than MLS. The MLS is so challenging to use, actually. So as you guys can see, there's not a lot because we got a fourplex here, right? So there's not a lot for comps. But let's, let's just go back 24 months and see. Just, just wanna, just wanna, um, double check. Man, it would have been good to be in Jacksonville in 2017, huh, Pace? No doubt. Right? Oh my gosh. Now guys, I want to, I'm only gonna pull comps from like Gulf Air Boulevard, okay? Down here to Main Street, up to where this loop-de-loop on the interchange here for the freeway. So I don't have a lot. I've got, I mean, technically, going off the 1% rule that BiggerPockets teaches people, this is a $260,000 deal. Yes. Well, that's a $260,000 ARV, right? Because 1% is where, where they're going to want to be at. So what should you buy that at, Pace? In order for it to be a wholesale deal? Uh, I'd pay probably 200. Yep. So I, I would say that, um, so you said the total rent, $650 times four, right? Yeah, that's 2600. So yes, you're correct. 260. So 260 times 75, I'd want to be at a 200 purchase price on that deal. Does that make sense? If I was going to buy that myself, I would convince that seller to sell it to me on seller finance at 260 or below and freaking keep that cash flow. That's crazy good cash flow for that property. So Kim Brown, if you can lock that deal up at the 180 to 200 range, Pace will buy it from you. I would buy that. I really want seller finance. They want top retail for it. If they want retail, I'm your guy and I'll buy it on creative. So Kim, if they'll sell it on terms, Pace is your buyer. Do you mind if I share something? Share this. All right. All right. Let me pop in here real quick. All right. So I'm looking at this thing just through Google, right? Look at this thing. Gorgeous. Looks like pride of ownership, right? Yeah. Looks like they took care of it. Whatever they bought it for, it's, uh, it's a little bit, Oh, we're spinning around. It's a little bit, um, nicer now. I'm looking at this neighbor. I'm looking at this guy here. What's going on with this? Because listen, if you, you've got an investor that's making that much cash flow, and you want them to sell it at a discount, this is the one I'm going after. I'm going after this one. And by the way, they might have tricked us here. We might have been tricked. This might be the one they're going after instead of this one, but who knows. I've had that before. But, um, this one to me, I would be, I mean, I would throw out the number and I would move on because the likelihood that somebody bought this thing for the price that they did, it's worth what it is now. It's rented out right now and it's got pride of ownership. The chances that you're going to buy this thing for 60 cents on the dollar, don't waste your time. Throw it out. See what their bottom line is. See what their true motivation is, and then move on. Because this looks like a beautiful house. It doesn't make sense to me to just jump out and spend all my resources and go out there. The property's too nice, and it's rented out, and they bought it for nothing, and they've got great cash flow on it. So I would throw something out and I'd move on and I'd go after that neighbor next to it that needs some love. That's how you get these big deals, I'm telling you. And because you can show the neighbor that's in crap condition that there was a sale not too long ago at 67 next door, that gives you a conversation piece to start at. You can say, "Look, two years ago they sold your neighbor for 67. I'm why don't I do you a favor and give you a flat 100 today?" That's it. I love it. Yeah, I always, I, I like looking at the front of it. I like looking and seeing. There's a lot I can drive by a house and just get a lot of story from it right away, you know what I mean? If there is, if there's just, it's just run down and needs some love, or maybe there's just little things here and there, the blinds are older, or the curtains that they have are tattered, or there's like 15 cat bowls in the front by the front door, you know, and there's just like wear and tear on it. That's what I'm going after. That's what I'm hoping to get. Um, if it's something that's in really good shape and they don't really need to sell it, you know, we remember, we're trying to, we're deal finders, we're not deal creators, you know what I mean? They got to want to sell, and they got to have a motivation. They gotta have motivation, and they have to have equity for the most part. I mean, you can wholesale some sub-twos for sure with this guy down here. Um, I'm in the middle of buying a wholesale sub-two from you guys. Yeah. But for the most part, guys, I mean, if you're just starting out and getting going, find ugly houses. Get the phone number from batchskiptracing.com. Call them up. Have a conversation with them and see if their, see if their timeline is short. See if you caught them at the right time. If you catch them at the right time, then you're working with somebody that you have a shot at. If you're calling and people are just like, "Well, give me an offer. I'm kind of thinking about it. I'm not sure." You called me. All these things. Move on quickly from those because those are going to distract you and you're going to get a lot, you're going to get really frustrated that you're having really, I'm having really, I get this text every day. I'm having really good conversations, but I don't have any deals. Well, first of all, you've been calling for two weeks. So patience. And second of all, like, stop wasting time with people that are just nice to you and friendly with you. Find the people that truly have a problem that you can solve out there in your marketplace. That's why we get paid. We get paid to help those distressed property owners that can't help themselves and match them up with a cash buyer that has no interest in dealing with the emotions of that distressed buyer. That's the only reason we exist. That's the only reason. If every investor, flipper, whatever, was like, "Down, down, down, market and go on appointments and deal with the emotions of distressed property owners," wholesaling would not exist. But, but because they just want to sit back and do their rehab and their construction and and their creativity and turnaround neighborhoods, we have a spot. And that's why we get paid so much because we deal with, we work with the emotions of the distressed property owner. And that is the key. You need to pull that out as quickly as you can. You need to pre-qualify in the condition of the property, timeline to sell, their motivation, and their price. You do that on all four of them, you're going to be working with people that have a high likelihood of doing business with you. And that's where we want to be. We want to be with those people, and we want to stay in front of those people, and, and, and we want to help those people. And that's what we do. So that's all that I got from just that Google image of that of that property. Incredible, Brent. Um, you're, you, 100% hit it on the nail there, bro. 100%. And, uh, um, uh, that's all it is is guys, everything he just said, that in a nutshell, that's exactly what the value of our business model is, what we do, what we add to the marketplace, how you, uh, add value to the marketplace, is is is entirely that. So thank you for that share, bro.

Well, you can, we answer this for Samuel? He's posted it about 1,500, 2,000 times. And let's help him out here. Absolutely. So Samuel Kemp's question is, "I just called a motivated seller today, and he wants to sell three properties. They all have Section 8 tenants within them. I'm having a hard time figuring out what to offer them and how Section 8 works." So, Samuel, here is my thought process on it. It, it's awesome that your seller wants to sell all three, and that they all have tenants in them. These are, this is going to be, uh, probably one of your harder deals to, to navigate because this seller has cash flow. There's not a lot of motivation there. And because there's Section 8 tenants, he's very well getting 20% above what market rates, what market rental rates are. Section 8 market rents are up to 20% higher than market rents. And so, and they pay every month. They pay every month. There's no, the, the, the government doesn't have coronavirus. The government has the, "I will pay you every month" virus because I'm the government. They have the printing press. They have a printing press. They, they will always send you your check. And so, Samuel, first things first, Section 8 means that they've got steady, always paying tenants. So you want to make sure that there's motivation there. Samuel, I would go back to that seller and find out, uh, if, how truly motivated they are. Are they looking for a cash transaction? Are they looking for a quick close? Are they looking for a 1031? Because potentially what this seller may want to do is a 1031, and they may be willing to sell at a discount in order to get the entire sale done in one step, so that they can roll those funds over into another purchase. And so you need to extract more detail from the seller to see if there's actually motivation for them to give you a good price. Love it. Section 8, you know, and it's, it's kind of rare that people give up Section 8s because it's just guaranteed, you know? But they're, where are you gonna put your money right now? If you sell a Section 8, where are you gonna put your money? A, B, rent art asked, "Why do people avoid Section 8 rentals?" Actually, it's a myth. It's a myth that people, Section 8. It's, we, on the outside looking in, looking at Section 8, there's this like stigma that Section 8 properties are trash, that they're full of cockroaches, or they're not. Section 8 houses are some of the best rentals you'll ever find. You'll ever, ever, ever find. Yeah, they're the best. Here's the thing. A lot of people don't understand is that Section 8 tenants get what is called a Section 8 voucher, which means they're approved for Section 8, right? So the government comes in, pays the heftiest portion of their rent. They have to come in and pay a little bit, you know, couple hundred bucks, whatever. But these Section 8 tenants can lose their voucher with SE, with Section 8. Yep. And how do they lose it? One, not paying their other portion, their portion of the rent, and two, not taking care of the property. They can lose it. So the reality is, 99% of Section 8 tenants take care of my properties more than my non-Section 8 tenants take care of my properties. I don't have any problems with Section 8 tenants. I have problems with non-Section 8 tenants. Yep. Yep. Love it.

Jamal, you want to put a bow on it? Wrap this sucker up. That went fast, didn't it? So fast. I can't believe how you guys. If you want to see more us do more stuff like this, drop us a comment. Please before we leave today. Uh, Pace, Brent, and I, we've, we've made it a point that for the next year, we really want to get back to the basics with you all. We want to make sure that we're delivering all of the value in whatever, um, topics you guys want. So if you notice last week and the week prior, we really just went back into the basics, right? What is wholesale? What, what instruments are we using? How do you talk to sellers? We had an amazing call last week with with Pace where he actually brought one of his sellers onto the hotline. So if you didn't watch last week's hotline, go back and listen to it. It was phenomenal. There's still people commenting about how amazing last week's episode was, just diving into those seller calls, really understanding seller motivation and how to talk to them. Today, we walked through value, how to comp, how to comp and and and valuate houses. Uh, what should we deal with next, guys? Well, real quick, Jamal, just, just for a little bit of housekeeping. You do comping, uh, live on, when is that? I do it every Thursday at 4 PM, sorry, 3 PM PST on Ty the Flipman. So ask flipman's YouTube channel. So if you guys are, uh, fans of of ask flipman, he's one of the kindest, gentlest, most amazing guys in the industry. I do a comping show with him every Thursday at 3 PM. Yeah, wait, 3 PM PST. Awesome. And then Pace, you are live Sundays at what time? 5 PM Arizona time. We are live every Sunday on Sunday Service. We've been talking about raising private capital the last couple of weeks, and we've kind of gone back to the basics as well. We did the old, "Let's just talk about anything" podcast style, and, um, we noticed that a lot more people get a lot more value when we just stick to one topic and deep dive on that one topic. So when they have a question, we can point them back to one episode and go, "Go watch this episode. We deep dived on raising capital," or "Go watch this on lease options," or whatever. And so that's what we're doing. Creative finance only. Creative finance. A lot of people want to learn wholesale. We will teach you wholesaling, creative deals on Sunday Service. Love it. And every Wednesday, guys, 10 AM from the Batch Studios, I do a live two-hour show. Jump on it. It's on this YouTube channel, Brent Daniels YouTube channel. So guys, Mondays, you get all three of us. Wednesdays, you give, you get me at 10 to noon, um, Arizona time. And then Thursdays, you get, uh, Jamill on Ty the Flipman's at three o'clock Pacific time. And then Sunday, you get Pace. That's five times a week. I think four times, four times a week that you get us. So, um, jump on live, guys. We love you. Huh? Are you still doing meetups on Fridays for your TTP students? For the TTP family? Yep. Yep. Do you mind if I stop by with some of my students from my Mastermind this Friday? Because we got our, they texted me. Yeah, I've got a couple students that are here. So, yeah, 100%. Yeah, let's do it. Hey, my wife wants to say hi real quick. How many? Bring her on. Come here. Come in here. She, that's not your. There they are. Hey, look who it is. Say hi, Jam. Hi. Hi. Say you're handsome. You're handsome. Say, say, let's do deals. Do deals. Let's do deals. At house. At your house. Okay. Go house. Look, Brent is doing the bell for you. Thank you, Brent. Say TTP. [Applause] TPPP. Best. That's the best. Oh my God. If, if you guys all thought that Corbin was the most adorable, uh, uh, mascot that Wholesale Hotline will ever have, do us a favor, please, and share this on your page. Uh, uh, clip a, a screenshot right now and share it on your Instagram. We want to see this show grow even more and more, guys. It's our year anniversary. We did it. Year anniversary. Happy anniversary, Wholesale Hotline. Happy anniversary, Pace. Happy anniversary, Brent. I love you guys so much. This has been a phenomenal, phenomenal year that I've been able to spend with you guys every Monday night. We only took one Monday off when the, when the country was burning down. We had a moment of silence, um, but after that, we've been here every single week. Virus, no virus, broken bones, no broken bones, healing, no he, whatever it was, there were no excuses. The three of us showed up week after week after week after week, uh, and, uh, it's been amazing. What a fantastic, fantastic 52 episodes, and I'm looking forward to the next 52. Awesome. Appreciate you guys.