Are you ready to move your business in 4 weeks? This is part two of that series and we are discussing how to run your business virtually!
Today we have Dan Collins, a real live testimonial that was able to make way more than they planned by partnering with us for the sale of their home.
Dan had a property that it was inherited within your family for quite some time after a brief conversation, 10 minutes, a very Frank conversation of his experiences with my company, easy sell property solutions on
[00:01:12] How initially our cash offer was substantially lower than what you wanted and how we came up with this creative offer, which we do maybe about six to eight times a year, the equity lift program. And I think, I don't think I know you're going to be a perfect case study because your, an astute seller.
[00:01:28] So you are somebody that. You'd know this business inside now, because I want you to explain what you do for a living, but like you're an educated, super educated individual when it comes down to this. So dealing with us on that level, I know you're going to hold us to a highest regard than somebody who is a layman who really doesn't understand the process.
[00:01:47] You drill this. You were very specific, you were very detailed oriented. You put us through the ringer. So let's just start from the beginning in regards to the property, your sister, what the situation was, why you wanted to sell. And we'll just. We'll have a Frank conversation. We'll take it from there.
[00:13:22] So let's talk now numbers. So we initially set out to, to have you and your family walk away with $250,000. Let's just walk through the numbers piece and show, what the end result actually was in your experience. In my experience, when we were negotiating the overall contract, we got to a point where we were setting the price.
[00:13:43] We were working on the numbers and in the beginning, this is where we zero or flat line that we set a number of 385,000 as a sale price, which meant that to get me the two 50. You had an element of risk in there to make all of everything else work. And just to touch point on that, if it's sold for less than the 3d five, you were still guaranteed your two 50, that's the element of risk you have to perform to those numbers, which means that we had to really do our due diligence to ensure that everything we were getting ourselves into.
[00:14:19] That we looked at the risk factors and said, you know what? This is something we dialed in a numbers. We're going to make a return on this. And if the market should shift slightly was still covered and as 100% still guarantee will in his family to $250,000. So it was a vetting process and a risk factor process on both ends and we both needed to be comfortable.
[00:14:37] And so to that point to that point, we, you and I worked out the numbers, we worked out what the cap would be on. The profit for your side, with respect to, the construction costs and all the other costs. So that in the end it was, we knew where we were starting from.
As you can see we beat all expectations that Dan had for us and truly held us accountable every step of the way!
Tune in and find out!
Check out billyalvaro.com and billyssecrets.com
Talk to you all soon!
welcome to unstoppable real estate investing wealth. My name is Billy Alvero, AKA the unstoppable BA former billion dollar mortgage banker gone bankrupt turn professional real estate festival where each week you'll learn the tools, strategies, systems, and secrets myself. And other a highly successful real estate investing entrepreneurs used to start, grow and scale their businesses, creating massive profits and how you can too.
[00:00:31] And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started. The reason I wanted to get you on is I love having case studies and case studies like this, where. The sellers have really no situation.
[00:00:53] You mean you had a property that it was inherited within your family for quite some time. And I think just by you and I having just a brief conversation, 10 minutes, a very Frank conversation of your experiences with my company, easy sell property solutions on when I think it was Dan Collins. When he initially spoke with your sister, how that conversation went.
[00:01:12] How initially our cash offer was substantially lower than what you wanted and how we came up with this creative offer, which we do maybe about six to eight times a year, the equity lift program. And I think, I don't think I know you're going to be a perfect case study because your, an astute seller.
[00:01:28] So you are somebody that. You'd know this business inside now, because I want you to explain what you do for a living, but like you're an educated, super educated individual when it comes down to this. So dealing with us on that level, I know you're going to hold us to a highest regard than somebody who is a layman who really doesn't understand the process.
[00:01:47] You drill this. You were very specific, you were very detailed oriented. You put us through the ringer. So let's just start from the beginning in regards to the property, your sister, what the situation was, why you wanted to sell. And we'll just. We'll have a Frank conversation. We'll take it from there.
[00:01:59] Sure. Okay. So our, my sister and I purchased a house back in the eighties. So we've owned it for 35 years now. But it was time to do something with it. And this is, I don't live there anymore, but my sister does and my niece lives across the street in the house that my sister and I grew up in.
[00:02:17] So there were a lot of things that were important to us. One was the quality of the house. And two was the quality of the people who were going to move in because they were going to be, neighbors and hopefully long-term neighbors for the area. So we weren't interested in just selling the home as is we were interested and engaged in doing something to not only increase its value for us, but increase the value of the neighborhood.
[00:02:45] And the neighbors around that we've known for years. So that was our overall objective. We kinda knew where we wanted to be. It was really a flute that, we started talking early on when I think his name was Dan that my sister spoke with. And then it grew some legs to it got some traction and you and I ended up talking and as we were.
[00:03:05] Talking and developing our, very unique relationship here. I think you and I understood where this was going and maybe how we could make this come together. AndI credit you for the vision and the way that you handled it from the very beginning where you saw, something that you could make work.
[00:03:25] Yeah we're always looking to problem solve and we're always looking to put the seller in the absolute best position. And I think when Dan came in initially spoke to your sister, what's your sister's name by the way? Roseanne. Roseanne. Yeah. So when he initially spoke to Roseanne and then Roseanne, was deferring everything to you because you're the business person in the family.
[00:03:43]You had a certain number dollar number that you wanted to achieve. And so generally when we come in the first sweep, when we'll go in, generally cells just want to put their hands up and say, look, I just want to make this fast and easy. And hassle-free, and I want top dollar fair offer, but I want cash and I want to be out.
[00:03:59] And that cash offer is generally lower than if you would to take the property, put it in the open market. If the house is in good condition, in your case, the house did need some love. It was an older home. Great neighborhood, but it did need to be updated with renovating. And so the first pass cash offer, when Dan went over it with the sales manager, Justin, it was substantially lower.
[00:04:20] I think that a tune and I could be mistaken, but I think it was 30, $35,000 lower than what you initially wanted. And I think that number initially was around two 50 is number you wanted to get. Is that somewhat of an accurate statement? Cause I'm not a hundred percent with my memory. It's been some time.
[00:04:37] I think the number came in at two 17 and we wanted two 50. And in the end we figured out how we could do things. That's that took a while to, establish getting contracts and I think you're spot on when you say that a regular client you might have is. Not going to have the resources or the knowledge that I have in terms of getting a construction contract, done, getting all these parts and pieces in place so that we can actually conduct business at arms length and make this work for everybody so that everybody felt comfortable moving forward.
[00:05:13] I think, that's where I think the big differences with me. And with you, we understood as business people, what we could do and how we would get there. And I think you give testimony to, this is going to help a lot of I'm going to call them layman people who don't really understand this business, because you did put us through the ringer.
[00:05:31] You vetted us, you did backgrounds, you tore apart the contracts, you asked detailed questions. And once it came to fruition where we agreed you and I were both 100% in the same page, everything was. Documented on responsibilities and roles. I want to get into to what the problem was, how we solve this situation.
[00:05:49]So we have a program and it's not a good fit for everybody. If somebody is living in the house, it's not going to work because we're going to come in and renovate. So instead of us coming in and buying the property for all cash and having you move on this works when a home is either inherited or it's not in rock, or it was, an investment property that.
[00:06:06] The people moved on to the tenants, moved out and you want to get most value. And so what we did is we analyzed the whole property with my team and we said, you know what? We could probably come up and meet the objective of giving the $250,000. They're looking for. If in fact we come in and we can do what's called an equity joint venture partnership.
[00:06:25] What does that mean? It means that instead of us buying the property outright from you, where we'll have our own buying costs and holding costs and selling costs, You and I almost go into a partnership where the house remains in your name. And in some cases, it goes into a trust depending on if this judgements and a bunch of other underlying issues.
[00:06:43] But in essence, we do a partnership on the property. We don't have any equitable, right? Meaning we can't throw you out, take your property. It's a hundred percent above board. We come up with a certain number that you're going to get no matter what the house sells for. You're going to get that number guaranteed to you.
[00:07:00] So that's your hedge, you're walking away with least that, but we also want it to be where the sellers have upside. And so with this situation, We came in, we analyzed the property. We said, we can give you the two 50, because we're not going to have buying costs or holding costs. That's going to be on you.
[00:07:15] We'll take care of 100% the renovation and we'll fund all the money for the renovation. And then from there we get our renovation costs back. We get a small profit that we agree upon upfront. And then anything after that number, we split as the partnership, 50 50. So let's go through first off, before we talk numbers and what the outcome was.
[00:07:35] Let's just speak about your interaction with the whole team. My, my staff, Justin, Dan I don't know if you had interaction with Haiti, the bookkeeper, but I know you had interaction with Dan or attorney myself and the construction team. Did everything we said we were going to do, because this is important for people to hear.
[00:07:52] Did we follow through and actually execute X? Almost exactly. There's always little issues that happen, but what we agreed upon both verbally and in writing, what was your experience? Did we follow through and actually pull through for you? Okay. So you want me to be absolutely candid and the reason I'm at saying that is because I have a much deeper perspective on things when it comes to.
[00:08:17] Contract standard of care. You and I have had conversations about things that didn't necessarily look right because elevations of windows were not, so there were certain inconsistencies or small things that that they'd occur and it's just like any other project for the most part.
[00:08:37] And I will say that everything did come out in the end. And I think that overall. We, you were we were successful even in this pandemic. Matter of fact, I think the pandemic actually helped. Yeah, I agree. We were somewhat concerned back in March when it happened and Oh what do we do now?
[00:08:57] But overall, that, that did happen with respect to everything. Did everything go, right? I think 90 something percent of everything went right. I had my brother-in-law there every night, so he's, he was taking pictures. The things that didn't happen, he took care of in the end.
[00:09:15] And, I felt that was the ebb and flow of what was going on. So this is important for people to know. So just your background, quick, two minutes, what do you do? What is your profession? Because it's important for people to understand the level of scrutiny that you put us through is different from any other seller that we've dealt with.
[00:09:32] You're at a much higher level than a normal people we deal with. Okay. So my background is I'm a senior managing director at FTI consulting in the construction solutions practice. So you're in this business, you get this at a much higher level. You're on the commercial end of this. I am on the industrial side of it.
[00:09:53] The things that go on heavy highway, heavy civil work, power plants, big mega projects. I testify as an expert witness on, matters of delay matters of disruption productivity the loss of efficiency, things of that nature I look at. So I scrutinize workforces. I scrutinized.
[00:10:14]Leadership and, project management oversight and how, all of that, all of how all of that operates on some very large projects. When you bring it down to this scale, though it's kinda like you can point to a person or, a certain entity and it's not as complicated. It just stands out.
[00:10:33] But yes that's what I do. In my, yeah. In my field, I've been doing this for nearly 25, 27 years now. Been a testifying expert or 20 of those years and have a lot of success and a lot of success at it. I think that's extremely important for the listeners to hear because you.
[00:10:53] Are an absolute expert. You do ex expert testimony on the stand. And so for somebody in a man of your stature, that's in this business that holds the absolute, highest regard, highest standards in the industry. You hold your people accountable for you to say on our end, that. Small construction company out of New York and New Jersey that we got over a 90%.
[00:11:17] I would say that's a pretty good compliment coming from you because you do hold the highest standards of people when it comes down to construction and following through and project management and making things happen. No, you know that your crews took care of business. They did what they set out to do.
[00:11:34]I can. I can pick on a lots of things here and there, but overall, even if they made mistakes, they went in there and they ended up fixing them. I sure could. They do better? Sure. Everybody could do better, but at what cost, right? Our contract said we would have a superintendent there and, day to day that didn't necessarily happen.
[00:11:55] The guys were there doing their work. And for the most part, it probably wasn't necessary. For that property, that size. Exactly. What's it gonna do to stand around and watch them work all day long? You set them up, you tell them what to do. They go do their job at the end of the day, they clean up and they go home.
[00:12:09]it's one thing to have it in the contract, but in the contract, to me, it means that ultimately you're going to be responsible for the things that go on, because one way or another, you have to. Instruct them and control the workforce and how the work is being done. Yeah. That happened that by all accounts even when we saw things, Wayne was responsive, the guys came in and they took care of things.
[00:12:36] There were, very little , instances of issues that, that we even had to talk about. Even if my sister and my brother-in-law brought it to my attention, For the most part, I would just say, just let it ride for a little while and let's see how they react to it. And in the end, if we have a list of things that we want to talk about and work through, then we will like I said, the only critical thing that ever came up was the one that you and I spoke about.
[00:13:01] And that was the elevation of the windows. And other than that, it was smooth sailing things happened. The kitchen came out very nice. There's. There's a couple of things in there that wouldn't be to my liking, but in the end I'm not living there. Yes. Yeah. One of the things I learned is I can't always put my personal tastes inside a home because some people aren't going my personal tastes.
[00:13:22] So let's talk now numbers. So we initially set out to, to have you and your family walk away with $250,000. Let's just walk through the numbers piece and show, what the end result actually was in your experience. In my experience, when we were negotiating the overall contract, we got to a point where we were setting the price.
[00:13:43] We were working on the numbers and in the beginning, this is where we zero or flat line that we set a number of 385,000 as a sale price, which meant that to get me the two 50. You had an element of risk in there to make all of everything else work. And just to touch point on that, if it's sold for less than the 3d five, you were still guaranteed your two 50, that's the element of risk you have to perform to those numbers, which means that we had to really do our due diligence to ensure that everything we were getting ourselves into.
[00:14:19] That we looked at the risk factors and said, you know what? This is something we dialed in a numbers. We're going to make a return on this. And if the market should shift slightly was still covered and as 100% still guarantee will in his family to $250,000. So it was a vetting process and a risk factor process on both ends and we both needed to be comfortable.
[00:14:37] And so to that point to that point, we, you and I worked out the numbers, we worked out what the cap would be on. The profit for your side, with respect to, the construction costs and all the other costs. So that in the end it was, we knew where we were starting from.
[00:14:55] We had a beat, the three 85 number. We both knew that otherwise we both knew what we were getting at three 85. So there was, a certainty, you took the risk, we shifted the risk to you, which was important to my sister and I, and. We just felt that this was the best way to move forward, where there was enough money in this whole thing at three 85 for everyone to walk away happy.
[00:15:22]Yeah, for sure. So in the end, the house sold for 455,000, which provided significant uplift to profit on your side and my side where we had plenty of equity to share and. That made the deal even sweeter. There was icing on the cake which both my sister and I are very appreciative of and are thankful for you and your team.
[00:15:46] They did a great job in that re in, in everything that the one thing I commented to my sister was, we really didn't have to lift a finger because they had everything covered. They staged the house that, I wasn't really expecting you to put. Appliances in the house, a refrigerator and all the other things.
[00:16:05] But when I originally, when I looked at the estimate, I didn't see any of those things in there. So it w it took me by surprise because that expectation was above and beyond what I thought you were going to do. So to hear this. So that's, those types of things were all added value, too.
[00:16:26] The sale of the home and intent to what, when we met Chandler and Jamie at the closing, or my sister did, they were very excited. They were extremely excited about the home. The fact that it was all new inside and, they got to meet my sister and the people who owned it.
[00:16:45] And there was a connection there between her and Jamie and they haven't. Cute little girl in the backyard has got already has played toys and the slide and other things there. So we still get to see a lot of that. Or my sister does anyway. A lot of that, cause my niece lives across the street, which is the, was the ultimate goal was, to bring that kind of element back to the neighborhood because now my niece has someone that maybe eventually she can have a friendship with both the same age.
[00:17:18] Yeah it turned out just, even on our end, we'll like we when I found out your position and the level you were at in life, because again I respect a lot of different individuals that have a certain caliber where they're bringing value. When I had that first conversation with you, I realized I was talking with somebody who was at a substantially different level and when we agreed and then we inked it and we signed everything.
[00:17:40] I was extremely happy and I told the team, look. Come hell or high water, we're going to beat the expectations that we set forth. And I was nervous when the pandemic and I have to tell you, I was trembling a little bit, cause I thought this thing was going to go sideways. And I S I was locked in and I said, however, this turns out.
[00:17:57] Whether we make money or not, we're following through. And we're going to ensure that we take care of this, but just as you were appreciative, I was appreciative that you trusted us, your family trusted us with helping you out and that you put that trust in us. I know you were, you had people there watching it, but for somebody like you to trust us with your asset, that house to make it happen.
[00:18:16] Again, I want to thank you. I want to thank your sister. I want to my whole team, they all wish they were on this phone call with us because it was a good deal for everybody. And we have right now, three of these joint equity partnerships that are going on between New York and New Jersey.
[00:18:29] And this video testimonial, when somebody is on the fence, we're going to give it to them. We're going to show them because look, things could go wrong. The bottom line is you were hedged. Do you knew what you were going to get out no matter what, but we came in and we absorbed a lot of that risk to ensure that you and your family could walk away with a certain number.
[00:18:47] And if we, win we all win together and the bottom line was, we all went, we all came out with a lot of icing on the cake, that's the beauty of the deal that, you know, in, in constructing that relationship my, my sister was like, are you sure? And I said our initial conversations are heading in that direction.
[00:19:04] She was a bit like, why would they do that? And I said he has a vision that many people don't, he has a vision of how he can accomplish something. And that's something that, I, when I approached Dan, I said maybe we can do this as a joint venture. And, and then you said, yeah, that sounds like a good idea.
[00:19:21]The wheels started turning. Yeah. Yeah. We've done. We've done successfully prior to you. We do about three to six of these a year, but with very select clients, it has to be the right client. And we did another gentleman who owned a, an electrical company guy was worth.
[00:19:38] Tens of millions, why he did this with us. It's just because, he, and he, again, business owner crossed his T's dotted his eyes that live in the property, put us through the ringer. But I just appreciate when I could do business with somebody that. Really vets us and then still decides to go through with it because it says a lot about us and equally it says a lot about the people get in business with, so I appreciate you.
[00:19:59] I appreciate your time today. Will I hope we stay in touch. You are a great individual and if there's anything I can do for you, if you even want to consider, I know you're in Texas, but if you ever want to invest your money into projects that we have, whether it be small single families or longterm apartment complex as you and I should definitely talk offline.
[00:20:17]We can certainly do that. And went up when I'm up in New York or something. We'll see if we can't get to sit down and have dinner, I would love that I'm going to chat about things and bring this relationship a bit maybe to the forefront and see where it goes. Awesome. Thanks again for your time.
[00:20:32] We'll appreciate it.
[00:20:36] You so much for listening to today's episode of unstoppable real estate investing wealth. My mission is to give you my listeners, the blueprint for success inside the secrets for starting growing and scaling your real estate investing business. So you can experience and live unstoppable lifestyle. I've made it simple for you to catapult yourself to success.
[00:20:59] Go to. Billy's secrets dot com@thebillyssecrets.com. There you will find every single tool tip trick strategy system and secret. You use to make millions of dollars as a real estate. Everything my team uses and my guests use all in one place for you to tap into, you could start. Grow and scale in real estate investing business.
[00:21:25] I really hope you implement what you're learning. I hope you utilize these tools, tips, tricks, strategies, and secrets, and I hope to see you on the next day. God bless bye-bye