8 Ways to Help Sellers with Pre - Foreclosures | Wholesale Real Estate

0:01 [Music] this is the eight ways that that we broke down to help in that because there's a lot of different options there's a lot of different ways that you can go in to best serve these people that are in pre-foreclosure all right and so it just depends what you want to do is you want to remove all the other options or or put them into one of those other options besides taking a cash offer and if it comes down to a cash offer they're going to stick with that deal and they're going to get that to close um and and they're not see the thing with pre-foreclosures is they're getting mails they're getting call they're getting mail they're getting calls they're getting texts they're getting bombarded with a lot of different communications to help solve their problems so even when you do lock

0:48 up one of these pre-foreclosures and it's a solid deal you know you don't want it to get wiggly and fall apart that's why you have to put this effort up front when it comes to pre-foreclosures because there's so many different options getting thrown at them that you got to secure it you got to put it in their mind that this is the best option if it is the best option for them to get a cash as-is offer and then obviously wholesale that buy that property put it into your rental portfolio or uh fix and flip that all right so here we go so a couple of things um i want to be very clear this is something i wish i truly understood and i don't even think i've been doing this a long time brent's been doing it longer than me but i still don't think i understood what i was even teaching until maybe two years ago and the thing

1:34 i'm talking about specifically is our true job is solving a problem for somebody if we don't have a solution for them there's no nothing i can do or say that will ethically make me money therefore do not even try right okay and i see a lot of people pushing and pushing pushing on sellers and then they come to me with the lead and i talk to the here's a great example i talked on this challenge yesterday somebody goes hey i've got this lead will you talk to the seller for me go yeah i'd be happy to talk to the seller i get on the phone with the seller and he goes he's in he's in foreclosure get on the phone with the seller he's like no man i'm just going to list the house with an agent like why are why are investors bothering me i'm just i'm i'm going to list it with an agent yeah okay is there anything i can really do in that situation he's made up his mind i mean you could say who are you going to list it with do

2:21 you need a referral can i help you out that's exactly what we did so i go i go man amazing that's great you definitely should go that route but who's listing your house yeah it goes oh i've got a friend i go bro cardinal rule of selling your house is don't ever have your friends do it because you're going to have animosity you're going to blah blah blah this was the question i go are you prepared to lose that friend and he goes what why do you say that and they go bro you're going to lose that friend they're not going to sell it for what you want they're going to want to do open house whatever you need to have a third party that actually gives you a reduced rate my realtors give me a reduced listing rate let me introduce you so i introduced my student ingrid and um on the call ingrid was on the live she's like oh my gosh i'm getting it i'm gonna get a listing so we referred ingrid to the seller yesterday

3:08 okay because i couldn't help the seller right but guess what i still kept that person in my world and for some weird maybe strange thing ingrid something weird happens where it falls apart because there's no equity or whatever then the lead can come back to me right but i'm not going to try and push somebody that should just list their property so let's go through a couple of these first three things the first three things are things that you can do to help people that may not make you money in the short term today but you are staying in the conversation and you are beating out the competition because these are the things that the other competitors will never do okay so number one you guys look on the screen behind us um personal loans or offering them offering help so pay attention write this down this is

3:54 a great text message for a lot of people to understand we will send a text message to people on the second or third follow-up if we haven't gotten them to reply in a pre-foreclosure or foreclosure situation and the text message says hey we also have ways of helping you stay in your property whether it's a personal loan or other types of help would you be interested in a conversation now this is going to fry a lot of people's brains because they're like wait i'm starting out you guys keep telling me i don't have to have any money to start wholesaling and now you're telling me i got to give people personal loans no what you're going to do is you're going to coach them what you're going to do is you're going to set an appointment because they weren't replying to your first couple text messages you're going

4:40 to set an appointment for either a phone call or an in-person appointment and you're then going to coach them on how they should go to their friends their family or loved ones to get a personal loan to save their situation and what happens in that conversation oh no no i can't ask nobody in my family has money right nobody in my family has money okay well then we do give loans to people but here's the challenge it's incredibly expensive and i have to get approval from my partner is that something you'd be interested in guys i've literally given one loan to one person and it's very very very very rare so don't think that that's the case the case is you're going to coach them along have you called your brother have you called your sister have you got called your parents have you asked for a personal

5:27 loan to save you from the situation and here's what that question is going to um do for you it's going to open the entire world of what's really going on under underneath okay now if the seller has no um major major motivation they have plenty of time it's in the very beginning of the process they got a ton of equity and the house is in good condition the likelihood is ethically they you should push them to a realtor yeah that's really it ethically ethically you should push them to a real choice if you look at number two what you want to do is you want to have a realtor look at jamil made 1.5 million dollars last year on one realtor relationship that's why he has more cars than me i drive a prius the guy has like five cars well and it's not

6:13 just it's not just the he's not getting that from referral fees from listing agents like blowing up and getting a ton of listings but those listing agents that come across steel send those to jamil because he's now sending listing leads which if you're in the business if you're in the real estate agent business listings that is the gold that is that is what you want that's how you leverage a lot of your time and efforts is by having listings not driving people around as buyers all the time so the top top top best real estate agents around the country are listing agents they prefer listings so you're giving them all of these listing opportunities now they've got connected to that whole person's network and family and get referrals and build their business and it's huge and

7:00 when they come across those properties that naturally happen that need some love need some renovation they have some clients that want to just get rid of a property that goes to jamil he makes a million five and that's the relationship that you have so just because you refer a pre-foreclosure over to a real estate agent doesn't mean and even if you get nothing from it if you're not licensed and you can't like legally get paid from it um another reason maybe to get a license but or somebody on your team have a license and you're not making anything in the upfront the relationship the squatting up the the you are you were putting food in their bellies you know what i mean you're you're you are putting income into their account of these listing agents and they're going to bring it back to you in the form of

7:46 discounted products you guys want to know how to get free bitcoins i'll tell you how to get free bitcoins okay here's how you get free bitcoins you give a realtor a referral like this and what they do is they like jamil made 1.5 million dollars from one relationship this year because he has shown value to a real estate agent first he went to the agent first and said i want to develop a relationship with you i want to give you listing opportunities from people that just are not a good fit for us and he started that relationship and year over year over year jamil makes the equivalent of 20 bitcoins worth of cash from that one relationship that's how you go and invest in bitcoin guys i get a lot of people like are you investing in bitcoin and i'm saying i'm investing in relationships it's the greatest thing ever jamil makes 20 bitcoins a year from

8:33 one relationship now he has other relationships but that is why you give somebody a listing you give people a listing one because you're a value provider to other people other than yourself you need to be a go giver brent talks about this all the time and two the great thing is if they list the property with your real estate agent guess what you now have constant updates of what's going on with that property and 20 30 percent of time it comes back to you anyway so you just infiltrated with a trojan horse into the relationship an agent that can give you real-time feedback of what's going on on that property it is a great hack to understand and now in in real estate in follow-up what are we doing we're planting seeds and we're filling our pipeline all the time i want

9:19 to have 15 20 deals in the pipeline that i'm constantly working and one of those ways to do that is realtor referrals that's it okay all right number three loan modifications bro oh my gosh loan modifications when i was just starting doing foreclosures four or five years ago they weren't as easy as they are now loan modifications are so damn easy now why do i want to do a loan modification doesn't that keep somebody in their house it can but the reality is a loan modification a lot of times you don't you guys don't need to be on my face you could focus oh dude look at you guys with this camera work it's almost like you guys are like professionals and stuff this is amazing guys give these guys some love in the comments holy moly okay so if i do a

10:06 loan modification here's what's great what in creative finance i love creative finance because i can take a foreclosure and i can lo i can modify their loan put all their debts and their arrears on the back of their loan and i can take over a house subject to without any debt i'm sorry without any arrears okay so a lot of people go oh man they're in foreclosure 80 000 okay we'll do a loan modification put the eighty thousand dollars on the back end of the loan and now you've got a clean sub two without any arrears there you go brent you want to break that down yeah so just imagine that they're they haven't made payments for a long time you've got the extra fees you got the penalties you got the attorney fees they owe 20 000 they would have to pay 20 000 to be caught up

10:52 with that loan right so what the bank does is they say listen you owe a hundred thousand this property what we can do is we can put this 120 and we can add it to your hundred we can space it out for your payments you're going to now go you know you've been paying on this loan for about five six years we're just going to reset that we're going to do another 30-year loan at 120 000 your payment's gonna be pretty much the same but does that help you out of your current situation are you okay now yes i can make that payment okay can you prove that you can make that payment yeah here's my w-2 stubs here's my income here's what's in my bank account can you guys do this does this work yes it does okay now these people they're just kicking the can down the road they're just kicking it down the road and listen maybe covet you know brought up a lot of

11:38 these situations that required this because people were out of work and they couldn't that their their uh unemployment checks weren't as as big as their their checks that they usually were getting or their income that they were usually getting so people were really tight or they just took advantage they just took advantage of you know what i don't have to make payments for a while nobody's gonna foreclose with me this is awesome right i'll just you know redo this and figure it out later and so now you've got a new loan on this property for 120 now they're back to making those payments and that's great they get to stay in the house they got a new payment uh but it does show you know what was happening there why were they in that situation so that's right to explain a loan mod now a loan here's what's great about a loan modification okay what happens a lot of times is you'll talk to people in um phase two

12:23 that are like i'm doing a loan mod great if you guys understand how to handle loan modifications and what they're all about um you will have so much power and so much ability and valve to bring value to these sellers because they have no idea how to actually finalize their loan modification and here's the thing more than half of the people that apply for a loan modification get denied right and so what you want to do is you want to be involved when they're doing a loan modification during their follow-up you go how's the loan mod going how's the loan mod going how's the loan mod going it get they get rejected for one of a variety of reasons the first reason why they get rejected has nothing to do with their ability to to qualify for a loan mod it's because they didn't finish the

13:10 paperwork properly yeah now we're looking for we're talking about a very specific demographic of people here the demographic of people are people that are maybe a little bit disorganized yeah have made some bad decisions in their life for one reason or another you could just be confused it could be confused it could just be you know it could be like the lady we just gave you a preview of that seller call she her husband might have been paying all the bills and handling the paperwork when i asked her who her mortgage company was she's like i don't know my husband handled that right so what happens is when they go through a loan modification there's a high likelihood they don't know how to actually complete it and so when you bring up can i help you out is there any questions you might have the loan mod you guys will have so much rapport building opportunities to build with

13:55 these people as they're going through the loan mod now when 25 or 35 other investors are reaching out to these people during the ostrich phase you're the only person they're listening to because you actually offered to help them with something that nobody else was offering to help them with the conversations and the people the relationship you guys saw in an eight minute phone call i can make somebody cry it's because i'm providing solutions that nobody else has offered them love it let's go four through six okay yeah let's keep this thing keep this are we good on time yeah i mean we're going are we behind yeah it's all right i mean all hundred will tell us all hundred

14:41 will tell us i don't know i don't know i'm having a weird hair day i don't know what's going on here you guys are answering a lot of questions and i think just keep going and okay we'll go from there um this one actually these are these are flip-flopped okay cash offer is actually the fifth thing that we go for that's cool in these situations i'm sorry it's flip flop it's not really not that important yep okay okay so rental okay um we offer to help people find rentals we do a lot of things we come in there and we have conversations like do you need another place to live or what have you or what we do is we help them find a renter to come into the property right have i ever actually helped somebody find a renter to come into this person's property no but it continues the conversation and i give them really

15:28 good advice and say have you ever thought about maybe renting out your property and that way that renter can make your mortgage payment for you open up the conversation i on that one i've never helped anybody on that do you find that most of the people that you're working with are owner occupied most of the people we we work with are owner-occupied 95-98 and the reason and by the way this is totally different if you guys are old school and you guys are used to the 10 11 that whole you know crash it was mostly rentals that were really going through pre-foreclosure because investors kind of got silly and overbought and paid way too much and thought the market would always go up uh now the market with its with the amount of the appreciation in most markets and debt pay down most people have equity so

16:15 investors typically when they own their own property and they're investing in other rentals they're a little bit more savvy they're a lot more savvy they're they're more interested in not getting you know the real big dings to their credit uh they've got their house in a good position but their rentals maybe are just you know they're just beat up or they're just not getting the rents that they want or people are stopped paying their rents and then all of a sudden that's when you're gonna see that those properties typically get listed they typically get listed on the market because they have equity they get rid of it that's why we're buying a lot of these as wholesalers as wholesalers were approaching these tired landlords finding out that they want to get rid of these properties i mean how many times have we had conversations with people that are like yeah i've got a tenant in there that's not paying me so if you

17:01 want to give me a cash offer on this thing i'm willing to listen all right all day long all day long but those have equity so what you're what you're really looking at with a lot of these pre-foreclosures that really get down the line is and they're in the first phase and the third phase is they're typically owner occupied it's a much different thing and to put somebody in to say hey listen maybe you can't make the payment but if you put a renter in here i can help you do that it doesn't often happen because they're they just they don't want to deal with that they they're overwhelmed already they're not really that mindset of an investor it is an option and it's something to cross off the list but it's not something that really it's a big talking point right it's a it's one of these things that if one of these other options for you guys has not

17:47 opened the seller up to you offering to help them find a renter or something along those lines to get into the property i i've never actually physically done that i've seen other investors take what i teach and they've actually helped somebody find a renter what happens with me is i know how to navigate the conversation and say do you want do you need help finding a renter and they go no i don't i don't need help with that okay well we do that for a lot of people or we have the ability of doing that tell me why you wouldn't want to have a renter right if you like that video hit that subscribe button we come out with new videos every single day and if you want your questions answered like you and i one on one make sure that you join us for the live show every single wednesday

18:33 i will see you there