now today's system Saturday session what were gonna talk about
is the four times where did that
whoops. I did everything myself
that is not how'd he do the business
and that right there is a house that I have already flipped as well.
And I already know that I can flip this house to a buyer on my buyers list cause I got strong
buyers list in this area
Hey what's up guys john cochran here and today is system Saturday the day that I bring you
a system that I use in my business
that you can rip-up duplicate using your own local market now today system saturday
session what were gonna talk about
is the five fax that I used to make motivated sellers agree
to my price so let's just go through and say that I've put out marketing
for motivated seller I've got to the face to face appointment with them
I've got to look around the house or whatever and I
know exactly what I'm going to be offering them
on their property while I'm sitting down at the kitchen table so it's just me
and that seller right at that time so have I get them to agree to the price
that I throw out
at them very very simple I bring them into reality so here's exactly what we
do
okay when they go through and let's just say for example they
think that their property and maybe even my exit strategy is to sell the property
for one hundred thousand dollars just to keep the math easy
and I'm going to make them an offer for fifty thousand dollars on their property
immediately they're gonna go through and say, oh no!
50,000 you're gonna make fifty thousand dollars of just what I just make that
50,000
you ever been there that's exactly the way that it goes because they feel
like your ball I am but all you gotta do what you gotta reel them back and get
them back into reality
and show them the true facts
okay so whenever you make that offer a fifty thousand dollar
just let them know heys hey misters jones so check this out
so the average days at this house will likely yeah
have to be on the market before it sold is gonna be about five months
okay now that right there is after the rehab process meaning that I saw all that
there's a couple things that I'd like to do this property
I think that you would agree with that in order to make it worth
that hundred thousand dollars is that correct seller absolutely that is correct
so
on after I get and I put all my money in it
and make this thing happen
get up to the standards a hundred thousand dollars it's probably gonna
take me
about five months in order to have a sold okay that's about what the average
is around the country is going to take me about five months in order to make
that happen that's after I get down to rehab of the rehab goes through
and it takes me three four months to do the rehab guess what
you can't tag on five more months in order to get that thing to the closing
table so it's a lot of time
that i'm gonna have invested that mister Jones now the second thing
is all probably gonna end up selling this house for about 94% of my
list price
meaning that I'm not even gonna get full price out this thing because
that's just the way the world works that way buyers are they want to get the best
deal which obviously everybody wants to get the best deal so mister Jones
so when I list this thing at one hundred thousand dollars after I rehab it
and its up on the market and everything I'm gonna list at 100,000 now when a buyer
comes and probably in at
five-month period I'm gonna get about an offer for about 94% on that so
they're going to offer me and I'm going to probably accept ninety four thousand
dollars on
this particular property okay that is completely done that I already rehab
and everything I'm gonna except ninety-four percent either because
that's the norm number three okay all
and that's if the market is strong number three that whenever I go to sell
the same the
average real estate commission that i'm gonna have to pay for a
realtor to just put a sign out into the yard
is six percent okay so of that one hundred thousand dollars that I'm gonna
be asking for this property mister Jones
I'm also gonna have to pay 6 percent Commission
to a realtor in order to put up on the MLS
and throw sign in the yard so that's automatically going to take six thousand
dollars of
if I was even to get full asking price of that 94%
which is what the up the offer amount gonna be that I'm going to accept
I'm gonna
have to pay 6% of that $94,000
doesn't sound too pretty now doesn't mister jones
and the 4 thing is the seller paid closing costs so
when I get into this deal okay and ninety-four percent
that I'm going to accept of I'm gonna accept ninety-four percent
of that one hundred thousand dollars I gonna to pay the six percent
but then I won't have to pay closing costs for the buyer
and that is typically a right around 5 percent
so now agree mister Jones that's it's just not as pretty as in sounds you don't think
I'm gonna be making fifty thousand now
because I bring you back into reality here number five is
that is after all I made the improvements and the property so what
this means is that
i buy property for fifty thousand dollars I don't have what twenty
thousand dollars
in this property so I've got seventy thousand dollars wrapped up in
now I gotta try to sell the that the seller thanks
that I'm going to be making thirty thousand dollars of
this property that's what they think that's what the public thinks that's
what they did
when you go to bring them back into realty mister seller I'm gonna be
getting ninety four thousand dollars of this then I'm gonna pay six percent
commission of that
then I'm gonna to pay a five percent commission or I'm gonna to pay five percent
to closing cost so
at the end of the day I'm gonna make about ten thousand dollars twelve
thousand dollars and it's gonna take me
5 months to market it after I go through and do the rehab so probably and take me down
eight months
in order to make about 12,000
or you can go ahead and do it yourself you can do all that yourself so
that's how you really bring the seller's right
back into reality and get them to accept a fifty thousand dollar offer when they
know that you're going to be selling it for a hundred thousand
because you just gotta bring them back into reality so guy subscriber on
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like us on Facebook and I'll see you on the next system Saturday
I'm out.
Hey
had