0:00 This is the offer we make. So Overview When people sell, it goes in a couple places. So you can solve. You can solve those other things if you understand where the money is gonna go. So we always talked about when you're negotiating with your seller always figuring out other underlying motivations because you can help solve other problems if you ask a few more questions. So when people sell a suddenly going to cash 1031, another asset or investment, they're going to treat it put in another debt or put it into a cash flowing asset. So if you can possibly move their equity into another asset class, you can solve two birds with one stolen while you're creating value for yourself. So what we do on every deal, and Tony Flores here, we do this for every deal, this is our baseline offer is we asked for a downpayment. 306 equal months equal payments, the biggest thing here is equal payments equal payments. When I say equal payments, I'm asking for 0% financing, because if you do 1000 divided by 360, and to find out that number, whereas if you had an interest rate into a mortgage and an amortization schedule, it's going to add interest. So always ask for equal payments, usually we're looking for we always asked, we always say 10%, down for their sake to the payments, and you can easily do the math. And to them to make sense they believe, Oh, I'm asking for a million dollars $100,000 down and 900 divided by 360. And that's the payment. So this is our always our baseline offer. And the reason why we asked for this is because facilitar bounce back and like I can only do five years, perfect. I'll take five years. So it goes back after 12 months, perfect. Maybe let's do 18. You know, you never know what you're going to ask. So I ask for the moon every time the first offer, and then I wait for them to respond. So a lot of times these land sellers are 1000 cetera, we talked about this yesterday about how they have a lot of equity, that land doesn't cash flow. So if you can tell them the importance of getting equal payments, they actually pay less taxes. So that's a huge incentive for people to have a lot of money. So we're always asking for one seller financing. A lot of people always think that buying and selling is the only option they have when they're negotiating with with sellers. But this is different options you can do when you're offering sellers. So you could still make a win win scenario just by asking the right questions, options. So we'll start them out, which may be overpriced lock in your purchase price today for the future. So anybody here familiar with stocks, options, contracts, same thing with real estate, and facilitar wants $10 million. And these overpriced, if you can lock them in with the option contract, guess what you're locking in that option for the future. And as prices increases over time, you can still get a great deal might not be today. But you can lock it into the future as other things you can do with sellers where instead of just asking for the price, and this is like every Seller is motivated under in their own way. So you could do certain things based off of whatever their motivation is locked blown. seller would do a 30 plus year amortization, amortize schedule, but will take longer to balloon. So we talked about this a lot ramside schedule, the cheaper the level two, we still do interest on loans, we're always under depends on what the seller wants. So like we're always doing equal payments, but they come back with interest we like to do. So let's say a seller is like I want 5% interest. So one of the strategies do I do is like, hey, we'll give you 5% added to the purchase price. And instead of doing 5% interest across the whole loan, so we can still negotiate a great deal at 0% financing. But we're overpaying across the whole loan and spreads out your payments. I'm a numbers guy, I mess up my inventory, I start to litter a lot. I love messing with numbers like this. And you can create a deal just by stealing the payments, the interest rate the amount you're paying. So if we can get 0% financing, we can overpay on a deal. So we're always looking for different ways to skew the terms in our favor where the seller still gets what they want. And if it price is the only thing negotiating on, we can still create a win win scenario just by stealing the other terms in the offer. So that's long balloon interests only principled about like times interest interest rate divided by interest. So we have an example here. Let's say we have $100,000 loan with a handle and trade 6% interest only would be $6,000. If utilized 6000 divided by 12 as 500 ollars a month, what's the what's the benefit of doing an schottische like this is you can push the balance of the total amount that you're buying the property for down the road. And as inflation takes down that property if you get 10 years interest only that value of the asset might be a lot more out or the inflation will actually actually knocked on your bite on price. And it gives you opportunity to create low low cash flow to the seller but you can create value add opportunities so if you have an apartment complex and you left them with interest only you get a lower payment so you cashflow higher and you can afford to do more capex but it also gives you the ability to maybe refi 24 months done in the future so it gives you the ability to essentially make your payments lower and value add and create more value in the deal itself without having to pay a full p itI master lease. A lot of people do not like management so we can do a master lease agreement where that one party master lease lease sees a property to the owner and has authority to sublease it to others. People been using this with Airbnb arbitrage. They'll lock in their interest rate with their other rent to your landlord, and then they'll sublease it on Airbnb and make credit cash flows for. So you can do this with any type of asset class and it's just using a master lease to buy them doesn't want to manage, you can essentially they can still receive payments on their property, but you're not having to deal with ownership. If you look more at the master leases, if you do a long term master lease that renews over a year over a year, you actually get all the benefits of ownership without having without owning the D. So there's a lot of cool stuff you can do a master leases got me with this master lease, you can actually write in a purchase price with that master lease that renews over and over so you get the benefit of ownership and purchase price and you're managing the property for them. So you can negotiate, you get the signup set negotiable. And you can do different forms of master leases. So it gives you opportunity to a lock in a purchase price. It's a it's a little bit advanced, but you can it's a way to ask for owner financing without asking for owner financing. All right partner innovation, we have a deal right now in Marfa, Texas partnering innovation a little bit different. But you can leverage these with all your sellers, and their great opportunity to create huge cash flow spreads and huge opportunities. So partnering. So that collaborates, and that was actually a benefit. A lot of these owners, they have the asset class when they don't necessarily want to deal with everything else. So like, hey, let's partner on the deals, you bring in the property and then some of their ability to create the value and I'll bring them back to CSUN, we partner on the deal or Novation syllabaries a property you bring the buyers. So you might bring that marketing, financing engineering remodel property things survey. So you can really do a lot of they're similar but different. But you can still produce a deal with the seller without having to carry all the costs up front. Why buy and still make profit. Discount buyback is another advanced strategy, a lot of sellers that they wanted, they don't want to deal with the taxes. So if they can sell at a lower bases will actually create opportunity for them. And maybe you can lock in interest rate in the future for them to buy it back for them to buy it back. And they can they can redeploy that money wherever they want and give the opportunity to buy themselves out at a lower basis. So you can essentially get some cash flow without having to buy a $5 million property, you can buy it for three and sell it back to them within the future three and a half or $4 million, whatever you're trying to do. But it gives them the ability to get get cash now release their property and opportunity to buy back at a discounted rate. And they actually pay less capital gains because they're selling at a lower basis. So they can still move the property and the opportunity to buy back. Short term financing. We talked a little bit about this yesterday, seller seller gets closer to their price and may receive cash flow and allows buyer time to value out and stabilize the property. So we've done this with land is we'll do 24 month balloon with sellers. And it gives us the ability to subdivide and find buyers for all the property and then pay off the seller later without having to put all the property with without having to put all the purchase price up front, it's all about ROI. If you have a deal, that you're gonna make $100,000 And you have to buy $100,000 asset, if you can leverage that same asset with $10,000, down with monthly payments, and you create $100,000, you're getting a 10x ROI versus buying with 100. And the only making 100. You're making 100% ROI. So you get a lot more leverage when you do short term financing. Short balloon, we always do this today. And so land and houses they operate differently. So with land you get should be under five years, if it's a house. And this is I know some obstacle here. But you could do a shorter balloon, we have a seller, I think Anthony mentioned yesterday, where we're trying to get a $3 million property with 10% down and we offered them three year of financing. And that's because I need to talk to my attorney. And it's like, you know what I need to do five years I'm like, okay, so you can create a lot of cool opportunities here, just by asking for short balloon, reasonable interest, we talked about this all the time. So it's okay to to do reasonable interest, if it makes sense for the ideal. So a lot of people are like, I want 0% interest deals, and that's all I'm doing. Well, if you can, if you if the numbers make sense, you can actually pay interest and it still makes sense. So let's say you have a half million dollar deal, and it's worth $2 million, you're still getting 25 cents on the dollar, when I give the guy 10% interest on his money, it's not gonna affect you, you still have a huge spread on the deal. So it doesn't affect it's not going to hurt you to pay interest and you're still getting what you want. So it gets what they want. They get their price and interest. But it's all about knowing where the value is on the property and underwriting that under on that property and make sure it makes sense. So another ranch owner doesn't want to charge high interest but doesn't want to give a 0% loan. They said every soul is gonna be completely different. And it's understanding what their needs and wants are. And you have to ask these qualifying questions to make sure you're getting the right responses if the seller wants interests and it makes us to give them interest to get an interest as long as you have the spread there to make sure it makes sense. You have an interest. 9:46 Within reason, high interest said they would reasonable interest sometimes you can pay high interest. So like we have a seller, let's say that 36 month balloon example, he wanted a 10% interest if I have the ability to create a huge spread. I might give them In 10% interest because I know I get that I can be out of that deal in 12 months. And if as long as I get the, as long as they have the time to create the value and sell the property out, am I paying high interest? Because high interest on a million dollars might only be 100 grand? If I'm making seven, who cares? So it's all it's all understanding what, how much interest are you actually going to pay? And does it make sense. But this is the last thing cash, you get a deep discount and everybody goes, everybody wants cash. But that's the that's the last option we always give. And we always talk about that and everybody's go to for wholesaling Ian's cash, cash, cash, cash, cash, it's our last, that's our last option when we're giving a seller this cash, because it just doesn't make sense. If you can leverage the property and other ways, well, I haven't put all the capital up front, and we can still make money on the back end by giving cash. So here's the here's what I'm gonna get back to you based off of if it's overvalued the fair market value or undervalued, you have different tools in your tool belt to offer the seller. And it's all about understanding the underlying outcome and how much money you create in the back end, based off of what options you have. So if he actually takes offer for two and 097 to 1842, you'll get a diagram of this and it might help you when you're negotiating with the seller what to offer then, based off of if it makes sense or not. You actually said to take a picture of this text the number of constraints of your phone, you're killing me here. I see you I see the camera gotcha Sue, no, no, this is this is it man. So not navigating the offer. So you have multiple exit strategies, and you still have an undervalued asset. Cash is the last one you have like seven other options to give the seller and you can still make a lot of money. And you're not just offering one solution to one problem. You have multiple solutions to multiple problems, and you can create more deal flow for you and your business. There you go. I'll be enjoyed that