The CashFlowGuys Podcast teaches busy people how to use what they have, to get what they need in order to accomplish what they want. Using tips and techniques from industry leaders in Real Estate Investing and Financial Services, the CashFlowGuys are on a mission to educate the public on all things involving real estate and financial services. Your host, Tyler Sheff interviews experts from around the globe to help people improve their financial intelligence.
279 - What Questions Should I Ask Sellers?
This episode was born from a listener question in regard to what sort of questions should you ask when speaking with a seller. For me, this was a struggle in the beginning because I didn’t have any points of reference to keep me on track.
Many years in sales taught me to avoid scripts if at all possible so I could better craft the meeting into a more conversational style. I did not want to risk sounding like a robot, instead, I wanted to build rapport and ease into the conversation so that I could learn what I needed about the seller and their pain points without sounding like a lawyer in a cross-examination.
As a result of learning to get better at talking with sellers, I created my property information form. I looked at tons of examples I found on the internet and took bits and pieces from each one in order to craft one that best fit my needs. In fact, I still use the form to this day in each and every Seller encounter.
To obtain a free copy of the form visit my website at CashFlowGuys.com and click on the resources tab for the download link.
278 - 40 Year Loans - Crisis or Opportunity?
This topic for me began with a video I watched on YouTube Last night put out by a Youtuber who goes by “Meet Kevin”.
In case you’d like to watch the video on YouTube, here’s the Link: https://youtu.be/iepZC3HdS8E
The video was about the coming proposed changes to the CFPB’s policies as they relate to mortgage forbearance. The CFPB (Consumer Finance Protection Board) is concerned that in the coming months we could slip into a major foreclosure crisis spawned from the mass number of mortgages that will be exiting forbearance very soon.
Here is a link to the proposed ruling: CFPB RUling
Currently, there are approximately 3 million Loans in forbearance
1.7 million of those mortgages need to start getting repaid (forbearance expiring)
In short, their short-term proposal is to force loan servicers (lenders) to extend a borrower’s mortgage by as much as 40 YEARS. (480 months) That’s 40 years ON TOP of the remaining time you have on the mortgage.
It flat out says the borrow if affected by covid has a RIGHT to a 40-year extension.
The proposed policy change also suggests no foreclosure filings allowed until Dec 2021.
This is a very unique situation, after playing the audio from Meet Kevin’s video I break down what he said and hopefully provide some insight that will help you see the bright side of this situation as it pertains to us real estate investors.
277 - The $72000 Dumpster Situation
It’s really simple...People can’t buy what they cannot find.
Every minute of everyday people incorrectly spell things when listing items for sale.
Find those items and you will find motivated sellers.
This could be on eBay, Amazon, Facebook Marketplace, Craigslist, Offer Up or other online sales sites.
Here are some examples of things I have bought at a huge discount because the ads were misspelled or miscategorized or under-advertised and then sold the items at a huge upside after marketing them properly. By under-advertising, I mean limiting exposure to items for sale, being lazy, not telling the world. This is a common mistake that Realtors and House Flippers make.
I bought 6 sets of Halcyon Technical Scuba Gear being sold by a fire department on eBay. All new and unused, no idea why they were selling, frankly don’t care. The seller spelled Halcyon wrong so nobody bid on the auction. The starting bid was $500. I was the only bidder and won the auction for the opening bid amount. ONE set of the gear was worth $1,900 alone. I sold five sets for $1,500 each for a total of $7,500 and kept one set for myself that lasted me 15 years without fail.
I once bought an FSBO property back in the old days when buyers and sellers were allowed to communicate and be in the same room..imagine that…
In a casual conversation with the seller discussing what was next for her, she stated she now needed to get rid of her other four houses she had inherited. Had I asked this question sooner in the buying process we could have been closing on 5 houses instead of one. It turned out that the day before closing her niece announced that she was getting her real estate license and she promised her the chance to sell the homes on the open market so she could get the experience. Needless to say, I lost out on 4 more listings and my client lost out on a couple more great deals. And YES, I tried everything I could think of to sway her towards selling now instead of waiting to later to no avail.
Back in the late 90’s I was walking through a parking lot behind a thrift store and noticed a bunch of golf clubs and bags leaning up against a full dumpster. Inside the dumpster was loaded with baseball equipment, bats, batting helmets, catcher gear, and more golf clubs and bags. I walked back home, got my truck, and unloaded that dumpster by hand into my truck in two trips. My total take on that adventure was $21500 in sales with ZERO inventory costs. It turned out the thrift store manager did not think used sporting goods would sell very well and he did not want to take time to clean the germs from the helmets, pads, and golf club grips (he was a germaphobe). Over the next 6-8 months I went back to that dumpster twice a week at night before the pickup day to restock my inventory. I wound up making an additional $50,000 from that same dumpster for a grand total that exceeded $72,000.
Every time you see something that someone else does not want ask yourself this question….How can I make a decent profit from this item in a short amount of time with minimal effort? Who do I know that would value this item or items more than me? What specific steps can I take to find and notify that person that my item is for sale?
Here’s the bottom line, there is an opportunity is everywhere around you.
276 - Price Cowards Are You One Of Them?
Post credit to Alissa Walker and Wade Sutherlin, the lucky husband of Amanda Young who was my guest on episodes 172 and 173
A CONVERSATION ABOUT PERCEIVED VALUE:
A customer asked a contractor friend of mine how much it would cost to do this project.
My friend gave him a proposal: $4500
The customer responded: That seems really high.
My friend asked: What do you think is a reasonable price for this job?
The customer answered: $2500 maximum
My friend responded: Ok, then I invite you to do it yourself.
The customer answered: I don't know how to.
My friend responded: Alright, then how about for $2500 I'll teach you how to. So besides saving you $2000, you'll learn valuable skills that will benefit you in the future.
The customer answered: Sounds good! Let’s do it!
My friend responded: Great! To get started, you are going to need some tools. You will need a chop saw, table saw, cordless drill, bit set, router, skill saw, jigsaw, tool belt, hammer, etc..
The customer answered: But I don't have any of those tools and I can't justify buying all of these for one job.
My friend responded: Ok. Well then for an additional $300 I can rent my tools to you to use for this project.
The customer answered: Okay. That’s fair.
My friend responded: Great! We will start the project on Monday.
The customer answered: I work Monday through Friday. I’m only available on the weekends.
My friend responded: If you want to learn from me then you will need to work when I work. This project will take 3 days so you will need to take 3 days off work.
The customer answered: That means I’m going to have to sacrifice my pay for 3 days or use my vacation time!
My friend responded: That’s true. Remember, when you do a job yourself you need to account for unproductive factors.
The customer answered: What do you mean by that?
My friend responded: Doing a job completely from start to finish includes time spent to plan the project, pick up materials, travel time, gas, set up time, clean up, and waste disposal amongst other things. That’s all in addition to the actual project itself. And speaking of materials, that’s where we will start on Monday so I need you to meet me at the lumberyard at 6:00 am.
The customer answered: At 6 am?!! My workday doesn’t usually start until 8 am!
My friend responded: Well then you’re in luck! My plan is to start on the deck build by 8 am. But to do so we have to start at 6 am to get materials picked up, loaded, and delivered to your job site.
The customer answered: You know, I’m realizing that a lot more goes into a job than what a customer sees in the finished project. Your proposal of $4500 is very reasonable. I would like you to handle the project.
When you pay for a job, especially a custom job, (whether it’s a physical project or digital project) you pay not only for the material and the work to be completed. You also pay for:
✔️ Custom Skills
✔️ Time to plan
✔️ Time to prepare
✔️ Work Ethic
If you request a proposal for custom work to be done, please don’t disrespect a service provider by trying to get them to lower their prices.
If their proposal exceeds your budget, there’s nothing wrong with getting other proposals.
Just remember.. you get what you pay for.
👉🏼 SERVICE PROVIDERS: Know your worth and be confident in it.
👉🏼 CONSUMERS: Recognize their worth and be respectful of it.
Sharing this to support all my friends, family, and clients who are Entrepreneurs, Business Owners, and tradesmen.
275 - Top Five Ways To Commit Real Estate Malpractice
The truly successful real estate investors and Realtors are the ones who are most skilled at solving problems.
Less successful people focus only on the deal or the potential profits.
In this episode, I discuss the five most common examples of Real Estate Malpractice and how to avoid them.
If you are able to avoid these pitfalls and learn why they are pitfalls, you will virtually eliminate any competition you might have in the marketplace.
Always remember that your beliefs and needs are not identical to the seller’s beliefs and needs which means to understand the seller’s problem, you have to get good at asking questions.
How do we get good at asking questions that are easy to answer? We practice and learn by doing. Listen in this week and add another set of tools to your investor toolbox.
274 - What Should I Do First?
In this episode, we discuss where to get started. In this case, I am replying to one of our listeners who is just getting started in real estate. He has done a great job so far getting himself lined up well to earn a profit now we will dive in and help guide him through the process. I’ll be brief in the notes this week since I think you’ll get lots of value by simply listening to the episode. Enjoy!
Truly a five-star product.
Enough said. Period.
Awesome value to new and experienced investors
Tyler has provided awesome value to me when I started 3 years ago in real estate investing. He continues to give great information and direction to me as I am gaining more experienced. Always on point !!! Thank you Tyler!!!!
Always on target
Great advice and perspective on real estate and even for lifestyle advice, I always look forward to Friday to get this straight forward podcast