How To Use Money To Defeat Real Estate Laws

Corey Boatwright: What if tomorrow just a memo came out that said, in order to wholesale, you have to be licensed? Mhmm. How would that change your business? Right? Oregon, right now, you can actually go to prison over wholesaling.

Some people that are listening to this, they may say, I don't need it. I'm not in South Carolina.

Steve Trang: Mhmm.

Corey: I'm not in Pennsylvania. I understand that, but don't be late to the game. It's not where the puck is. It's where the puck's going. I think that more wholesalers are gonna be required to take the deal down and, quote, be licensed.

We have a solution for both those.

Steve: Hey, everybody. Thank you for joining us for today's episode of disruptors. Here we have Corey Boatwright

Steve: and Chris Imann with takedown funding. Corey did fly in from Oklahoma City, and Chris is obviously another local legend in the Phoenix market. And we're we're gonna be talking about how to use money to defeat the real estate laws. Now, guys, I'm on a mission to create a 100 millionaires. The information on the show alone is enough to help you become a millionaire.

If you take consistent action, you will become one. And, guys, if you get value out

Steve: of the show, please hit that subscribe button. That way, we can all grow together.

Steve: You ready?

Chris Imann: Yeah. Let's do it.

Steve: Alright. So right now is an interesting interesting environment in the real estate market.

Chris: Right.

Steve: I think just this past week, I heard something got passed in Pennsylvania. There are things happening in North Carolina. And, obviously, there was that big hoopla with South Carolina. And I think probably Oklahoma's where it all started. It was Oklahoma or Chicago.

Corey: Right. Right on Oklahoma. Yeah.

Steve: Oklahoma is where it all starts. It might be your fault that we have this problem. Right?

Corey: Tornadoes and regulation. My fault.

Steve: Right? So let's talk about this regulatory environment. Like, what has gone on the the the last few months?

Chris: Well, I think, obviously, South Carolina's made the biggest move. Right? Right. So, just, not being able to market a property while you have it under contract. And, I mean, we all know that there's educators across the country.

Mhmm. And every educator that I know says, this is where you start. Right? This is the easiest entry. So, obviously, that changes everything.

Right?

Steve: Right. Yeah. Buy houses with no money. Yeah. Right?

That's that's, I mean, I don't know when that started, but as far as I can remember, like, I think the earliest I've heard is the Carlton Sheets.

Chris: Right.

Steve: Yeah. Right? No money down, and buy houses, no money down. So yeah. So that started started there.

So, like, you know, what do you think how did we get here, I guess, with the regulatory situation?

Corey: Well, there's good wholesalers and bad wholesalers. Right? And, unfortunately, the ones that are bad make the, you know, the the good ones look bad too, unfortunately. And, you know, there's just an opportunity right now for someone to come in and be able to, you know, work in this real estate environment where they can like Chris said, they don't really need a whole lot of money to come in and just basically, put a house under contract.

Steve: Mhmm.

Corey: Right? And they have no money to do it. Right? So there's no risk, and they can turn around and sell that contract or they assign that contract.

Chris: Mhmm.

Corey: And that's been going on for many years. Right?

Steve: Right.

Corey: Well, what's happened is some of those wholesalers aren't closing on those deals.

Chris: Mhmm. And we

Corey: you and I both know some of those probably guys have done that. Right?

Chris: And they

Corey: kinda we blackball them. Right?

Chris: Mhmm.

Corey: But, really, that was just, like, small amount, like, of the marketplace that was kind of being affected by that. But as wholesaling is growing bigger and bigger and more education around it and more people are, you know, focused on this wholesaling operation, it's it's just easier for these wholesalers to, you know, start, you know, doing bad practices. And when these bad practices are starting to stack up, then now National Association of Real Estate Real Estate is coming in and saying, like, hey. We already got slapped with a big lawsuit. Mhmm.

Right? We don't wanna lose any more commissions to you guys.

Steve: Right.

Corey: We want you now to be licensed, which wasn't a required necessary before.

Steve: Yeah.

Corey: We also want you to own the deal, own the house before you can turn around and market it to somebody else. You can't just put that, you know, put a house under contract and then send out that and say, oh, it's not I'm not buying the house. I'm I'm, you know, I'm I'm assigning my paper. Right. If it looks like a duck, it walks like a duck, it quacks like a duck.

They're saying it's a duck. Yeah. And, you know, so there's where we are today, where we got today is where everyone's kinda doing this, like, easy way to assign properties, which I'm a fan of wholesaling in that in that regard. But when you ever you don't close on transactions, whenever you are taking advantage of people in situations that you shouldn't and you don't have that you have bad practice. You have no core values.

You're you're just gonna have those people that come in that don't have values and they just wanna make money. It's all about money. We all seen these guys that throw, you know, hundreds in the air and, like, you know, like, they're at a strip club or something. They just closed on a Right. A real estate deal.

Right? Yeah. In gold chains and, like, they're just making everyone kinda look bad in that industry. It's not a bad industry, but you take a couple of bad apples, and that's all it takes to make it Yeah. Look bad.

And

Steve: it's it's funny because, like, remember, like, there are a lot of people that are in our industry in the wholesaling world

Steve: who they thought to get started as

Steve: a real estate investor had to get licensed. Right? I always laugh. Like, no. We don't have to get licensed.

It's ridiculous.

Corey: Right.

Steve: Well, I guess now he kinda has to get licensed. And it's also gonna be interesting to see what happens. Right? Because, like, we had Jerry Norton on the show. We've had Devin Robinson with installment method on the show.

And, like, it's interesting to see what's going on with Pennsylvania because what they're talking about is you have to get licensed. Yeah. Right? And disclose. Yeah.

And disclose. Yeah.

Corey: Disclosed it to wholesale. Yeah.

Steve: Yeah. Right? Which is fine. Whatever. Right?

We've always disclosed on the wholesaling side. What's interesting is, is when you have to get licensed, then what happens after you get licensed. Because, like, what we're seeing in South Carolina is, like, you have to get licensed. Right? But now the Department of Real Estate is regulating what you can do as a wholesaler.

Corey: Right.

Steve: And if they're regulating in it, I don't think they're gonna operate in the wholesaler's best interest.

Corey: Right.

Steve: That's not my theory

Chris: at least.

Steve: Right. So we'll we'll see what happens there. So

Corey: Yeah. The days that maybe you thinking you're gonna get a 100 or $200,000 rip on a wholesale deal

Steve: Yeah.

Corey: If your license may may be coming to the end Yeah. Really quickly.

Steve: Yeah. Exactly. And then, so are you paying attention exactly what happened in Pennsylvania?

Corey: You know, as much as I can. I mean, you know, unless you're actually there and what seeing what's going on with lobbyists. I mean, at the end of the day, you have to basically look at what I call copy legislation and, you know, we we talked about that before in South Carolina. If it's working in South Carolina and then I think they're gonna see it's going to, they're just basically gonna push that through. And that only that only took, like, four or five months

Chris: Mhmm.

Corey: From start to finish for that to happen. Right. Where now you have to be licensed, and you have to own that property before you can market it to make money on it.

Steve: Right.

Corey: Yeah.

Steve: And we're seeing this evolution here. And I guess what I'm even getting a little early here. But, like, you know, just to take a quick step back on the journey of wholesaling. Right? Because I don't even know when wholesaling became a word.

Yeah. I don't know if it was common. So you've been doing this since, what, '99? Yeah. Right?

Like, was wholesaling the word that they were using in '99?

Chris: No. I I don't even think I was, like I think I was a wholesaler before the word wholesaling existed. Right. Yeah. I was I was literally I'd buy a auction house step, and I would dial for dollars and be like, I bought it for a 100 and you can have it for a 103.

Bring the 3 in cash.

Steve: You know? Right. Exactly. Yeah. So do you remember, like, exactly when wholesaling became a word?

Chris: I don't actually, I mean, what was it? Nouveau Riche, I think, was in this? Yeah.

Corey: Nouveau Riche,

Steve: I think, was in this? Yeah.

Chris: Yeah. I think Was

Steve: Steve around. Oh, man. Steve Tappan, I think, was the guy. I think

Chris: o five? Yeah. That's kinda I think that's my piece of where it started, but I I mean, I could be wrong.

Steve: Yeah. I remember Richey. I mean, he he was driving around with his Hummer. Right, recruiting all of us. They're like, hey.

Send them to my send them to my event. You know? It was it was, like, 20 five, 30 k, and then I'll I'll I'll give you something. Right? Yeah.

And, and that was affiliate. Yeah. And I was that kid that's like, that's a rip off. Right? Looking back, that really was the only option to get started because there weren't these podcasts.

There wasn't YouTube. Sean Terry was not around yet.

Corey: Right. He just So, like Yeah.

Steve: He was gatekeepers information at that time. So it really was not that bad an investment. But in my mind, as a young kid at that point, I was like, ah, that sounds like a scam. Right. But yeah.

So, like, wholesaling, right, really didn't become a a word, right, until around sometime around there. Yep.

Chris: Yeah. Right. That's my guess. That's when I first closed. Yeah.

Corey: Yeah. Two. Yeah. I think that's right.

Steve: Yeah. So then you go back. So you break it down. So how did it you know, you look at this industry, and this might be, you know, boring for some people. I don't know.

But my understanding is, like,

Steve: we were always just flippers.

Steve: Right? Like, going back, what you do, you would just buy the property from the homeowner, flip it, and throw it in MLS. Would you guys agree with that?

Steve: Most business owners waste their time and money on solutions that never fix the root problems. They'll address all the symptoms due to slow revenue. And because they're only fixing the consequences, the real problem stays hidden and the cycle of wasting time and money continues. It's like having a lingering headache that won't go away despite trying every over the counter medicine. When reality, should have just gone to the doctor and had them figure out exactly what was causing the headache.

And that's what's so difficult about business. You can see and feel the symptoms and yet struggle to find it. Now imagine you can find a prescription that doesn't just mask the symptoms but actually addresses the root cause. Where would your business be if you address that right now? That's what our sales event is about.

Your marketing doesn't suck. Your leads aren't bad, and your operations aren't terrible. It's that you haven't addressed what actually makes you money in wholesale, which is the conversations you have with homeowners. It's critical that you build trust with sellers, demonstrate that you fully understand their situation, know exactly what's keeping them up at night, and paint the ideal outcome that leads them to a better future by working with you. That's what it takes to get signed contracts and keep your business going.

Simply put, at our event, you'll walk away with the framework, phrases, questions, documents, and process to close more sales and buy more houses. Join the hundreds of others who've come to our live event and dramatically grown their business. Our event is happening soon and is available for you to join only if you're willing to take the pill.

Chris: In about 2003, we I mean, I I was actually buying the foreclosure steps, and then I partnered with, you know, the guys at Buy AZ Foreclosures. So in, like, 02/2023, we were emailing to our distribution list. We had the back cover of the real estate magazine. Oh, I remember. Yeah.

And then and then we were strictly just a wholesaler, but we'd buy at the auction.

Steve: Like, AFG Funding or whatever.

Chris: AFG. Yeah.

Steve: Yeah. Yeah. I remember seeing those magazines. Right. So but that was later on.

But, like, initially, it was just, like, the Homevestor guys. Right? The We Buy a New York House.

Corey: Right. Right.

Steve: They were just straight buying the house property, take it down flip it Yep. And then sell it on the MLS. Right? And then somewhere, someone got wise, maybe Carl and the Chiefs. Somewhere got someone got wise, like, oh, I could just sell it to a flipper and and and and get some money.

And I think this is me going back to real estate school because I wasn't around at this point. Right? So there's things I learned in real estate school. My understanding is if Corey got this contract and he sold the contract to me like, we have these wholesale fees now. Right?

$101,500,000 dollars. Right? Then that's on the settlement statement. But back then, again, this is what I learned in real estate school. I don't

Corey: know how accurate this is. Paid after closing.

Steve: I just gave you $500 cash. Oh, yeah.

Corey: Or before

Steve: And you signed the contract over me. Right? And And that's what bird dogging was.

Corey: Right. Yeah. Right.

Steve: Right? Well, I guess you started as a bird dogger? Which one you guys started

Chris: as a bird dog.

Steve: So you wanna explain the history of bird dogging?

Corey: Sure. So I would just go out and find literally drive for dollars. I'd find properties that look dilapidated, run down, high weeds, your your, you know, broken windows, whatever. And, write down that address, and I found an investor that was buying I thought, at the time, was buying the house. It was actually he was wholesaling those houses, and I found out what to do.

I turned into a wholesaler as well. But I would give them to him, and I I made, like, $300, $500, a thousand dollars, like, if he ended up closing it. Right. And then he would give me $10 for just every single one. So I was just, like, trying to get, like, a $100 a day.

Right. I only do a $100 a day. Yeah. And that was that was wholesaling. I mean, that was, bird dogging.

Right.

Steve: Yeah. And so, yeah, at some point, bird dogging was I mean, again, my understanding was you would just bring me the deal.

Corey: Just bring me the address.

Steve: I'd bring me the address. Right. I'll talk to the homeowner. And if

Steve: I buy it, I'll just kick you off our

Chris: own money.

Corey: Money. Yep. Right? That's it.

Steve: And then at some point, someone got wise. Like, why am I only getting $100 Yeah. That would be Right. 5 or $10,000, and I'll just source the deal and sell it to flippers.

Corey: Right. Right?

Steve: And then what's even more interesting because you've done a lot in the co selling world.

Chris: Forever.

Steve: Yeah. Right. How long did you were you co wholesaling?

Chris: I've been co wholesaling, I'd say since about 2003. Like, we we built the the buyers list Mhmm. And we're wholesaling the foreclosures, but then, you know, there was a as these guys, Alan Robinson I don't know if you remember. I remember Alan. Yeah.

Alan was out there, just, you know, he and they were just blanketing direct to seller stuff with the letters and all that, and and then I just became their dispo company. Right? So, you know, that was a kind of a transition and, you know, they were making some great rips. I mean, $30, $35, and I was like, I was just getting the $5,000 a transaction, but still it was, hey. It's 5,000.

Put an email together, send it out. Right. $5. $5. Yeah.

Steve: So you said o three you started doing that? Yeah. So Cole also has been around for a long time.

Corey: Yeah. Twenty nine years now.

Steve: Yeah. Yeah. Because there's you. Right? And then you got, the Keeley franchises.

Right? You got Jamil and them. You got Stu, Daniel with New Western.

Corey: New Western.

Steve: You got net worth, and there was a Mark. Property force.

Corey: Yeah.

Steve: Yeah. Right? You got property force, formerly property force.

Chris: Yeah.

Steve: Right? And then before that, like, those three guys was funny. It's, like, they all met together. Yeah. It was like Real Deal or Real Net or something like that.

Like

Corey: Yeah. They're in Florida. I guess All of that stuff. Yeah.

Steve: Right? So, like, that co wholesaling space has been around for a while. So I'm I'm bringing this up. I'm just going down memory lane here. Right?

So you were the flipper, and they eventually brought in a bird dogger, and eventually added wholesalers. Right? And we're just chopping this up some more. And then, eventually, we add co wholesalers, which, I guess, you are the pioneer. It's like your fault that we have all these these JV guys.

Jeez.

Chris: But it was just like and you got the you built the dispo database. Like, you might as well get paid for it. Right? Oh, absolutely. Right?

Steve: So now we got, you know, all these different pieces here.

Corey: Right.

Steve: And now with the way things are going in '24, and I really think started when Oklahoma's, like, '22, right, or '21?

Corey: '28. No. No. No. It was in '22.

Yeah.

Steve: '22. Right? So, like, now regulation is pushing back against wholesaling, and now we're getting to a point now we're we're we're pushing back against potentially the coal wholesaling. And then maybe in a couple years, wholesaling. Right.

Right? And so then you really only have two options. Right? And those two options brings us all the way back to where we were twenty plus, I guess, now, like, twenty five plus years ago where you just have to be the buyer.

Corey: What if and you bring up a good point. What if tomorrow, just a memo came out that said, in order to wholesale, you have to be licensed? Mhmm. How would that

Steve: people were gonna be impacted.

Corey: How would that change your business? Right? How would that change your business? And so that thought is there. The other thought is they're already moving that direction where not only they want you licensed, but now you they want you to own the deal Right.

To to market it. Right? And so there's a lot of investors that are really great investors, and there's a lot of wholesalers or really great wholesalers, and they're great marketers. And we know in this business, especially in wholesaling operation, like, 30% or more often is the marketing. Right?

Like, you can spend a lot of money on marketing. We're just talking about, like, one deal on paper, like, paper lead in in in Florida was getting up to, like, 500, $600 a lead.

Steve: Yep.

Corey: Mhmm. Before you even see the house address, you just here's $600. Right? It's not sustainable for some people. Some people like, oh, I've got a big budget of a $100.

That's okay. But a lot of wholesalers don't have that that budget. They might have a budget of 5 or $10,000, maybe a little bit more, but they don't have that budget. Right? And so we wanna be able to have a solution if they need to wholesale their deal and they can't assign anymore and they, quote, have to be licensed and they're neither.

Steve: Mhmm.

Corey: What do you do? But they got a great deal. They negotiated it, which they're great at. They got it under contract with a great deal. We all know what a great deal is.

90 not 90¢ on the dollar. Mhmm. You know? If you're a good wholesaler, you know what the great deal is. But you gotta be able to dispel that deal

Steve: Mhmm.

Corey: Legally.

Steve: Right.

Corey: Right? What do you do? And so that's where the idea of takedown funding came in.

Steve: And I think a great deal today might be different than it was a couple months ago, and it might be very different than where it'll be in three months.

Corey: Sure.

Steve: Right? Because if you can't market the property to wholesale, a great deal underwrites very, very differently.

Corey: It does. And, also, the Dispo side of it too, Steve. So, like, let's say, you know, you're used to selling to cash buyers only, right, which Chris has a amazing network. You have a there's a lot of people that great networks of cash buyers. But when you get on the MLS, now you're talking to a retail buyer.

Mhmm. You're talking to what I wanna call the HDTV buyers. Right? They aren't necessarily the most, quote, educated of I'm buying four rentals every three weeks, and I know what my l o I know what my return on investment is. And they know all these terms, like, you know, NOI and all these other things.

No. They they're just they're just, like, they're just, like yeah. In cash flow. They're just, like I like it because it's near mom. Mhmm.

I like the house because it has a nice swing set in the front and, you know, it's near my sister. I like the school district.

Steve: Right.

Corey: So those buyers will pay they tend to pay more money.

Steve: Right.

Corey: The other thing is now you bring a house that's off market on market. Right? And so now you have an ability to basically add inventory, and and and so those retail buyers will pay more. So why I'm saying that is because whenever you're working with takedown funding Mhmm. Now you're actually considering, wait a minute.

I get to put this on the MLS.

Steve: Right.

Corey: Right? Which then, technically, could basically yield you another 15% more profit.

Steve: Right. So talking about, like, so how we got here. Right? So now that you know, what what what are the marketing restrictions? And it's it varies state by state.

Corey: It does.

Steve: But, you know, versus where we were, you know, last year, like, the only like, you have to get licensed. Right? That already existed in Oklahoma, Chicago or no. State Illinois. Yeah.

Right? Yeah. And then the city

Corey: a certain amount, but will it have to go through a broker?

Steve: Right? City Of Philadelphia. Right? Not the entire PA, but now PA is getting interesting. Right?

So I get rid of areas where you have to get licensed.

Chris: Right.

Steve: What are the additional restrictions that we've seen in the last few months and in, upcoming?

Chris: Well, I mean, it's just gonna I think the restrictions are like you said, the copy legislation, it's just gonna keep coming. I mean, I think every state's gonna have some kinda I mean, that's

Steve: right too.

Steve: But what specific hurdles are

Steve: they putting in the way of the wholesaler?

Corey: Marketing. For one, you they want you to own the property Mhmm. In order to market it.

Steve: Right.

Corey: And so you can't just, like, well, I'm assigning my contract.

Steve: Mhmm.

Corey: Yes. You can assign a contract, but you can't make money from signing the contract. You can sign it to mom, dad, an LLC, or whatever, but making money from is where they they're drawing the line. And the other thing is is you're marketing a property that you don't own. You're you're still in violation.

Right? So you might be able to find right. But you don't own that property. So, technically, they're gonna call you a wholesaler because you're marketing a property that you don't own. And then on top of that, now you're not licensed.

Mhmm. Right? And so just on the marketing aspect of things, it's calling it to a public marketplace. So what's a public marketplace? A little gray.

If you have your own email list, is that a public marketplace? Some people would say no. It's my own private email list.

Steve: Mhmm.

Corey: New Western, obviously, they have a big network of a platform.

Steve: Massive private network.

Corey: Is that is that a private network? It's kinda great. But if I market out there to Facebook Marketplace

Steve: It it's done.

Corey: That's you're done. You're over with. And you see a lot of wholesalers utilize some of these, quote, free or public, forms to be able to market. Right? And that's done.

It's over with whenever these, regulations come to your state.

Chris: Yeah. And it's just it's just gonna change the deal, like, to your point about where the pricing is. I mean, how many of us are locked at looked at it and been like, yeah. I I can't get them any lower, but it's right there. Right?

Corey: Yeah.

Chris: And we lock it up and send it out. Just test the water. I mean

Corey: Yeah. We've all done it.

Chris: We've all done it.

Steve: We've all done it countless times. Maybe too many times.

Chris: Yeah. Right? And now you can't do that anymore. Right. So now you're gonna really have to like your deal.

Corey: Yes. Yeah.

Steve: You have to really underwrite

Corey: it well.

Steve: Now what would because I see this a lot on Facebook, particularly in Alex's group, wholesale Whole selling

Corey: houses full time. Yeah.

Steve: Right? Good

Corey: dude, Alex. Love that one.

Steve: Fantastic, dude. If you can just put it in his ear to freaking come out here. Anyway Come

Corey: on, Alex.

Chris: Come on

Corey: the show. You

Steve: know, I see a lot in that Facebook group. It's like, well, just double close it. Yeah. So what what do you say to someone that says just double close it?

Corey: Well, my attorney that I work with in Oklahoma actually wrote some, a really interesting piece about this. You can Google it. And it's about, you know, double closing. Mhmm. And double closing is fantastic, because effectively, you can say, well, I sold a property that I owned.

Right? Because to to actually double close, also called simultaneous close, is you have to be on the deed for maybe five minutes Mhmm. But you're on the deed. Right? A to b, b to c.

Right? Versus, like, just assigning where it's like a to b, you sign up and then you assign it over to somebody else, your contract.

Chris: Mhmm.

Corey: Well, on double closing, you're on you're you actually, broke chain of title. You're on, you're on the deed. Right? Well, that in itself, you can say, well, I I I sold a house that I own. Mhmm.

But how did you get your buyer? Right. You had to market to find your buyer. Right? Mhmm.

And that's the piece that they're still focusing on is that you still marketed to find a buyer in a house. And the other question is I was talking to to an attorney. He said, when did you, when did you, close on the transact? Did you have a buyer already in line? No.

Typically, you have to sign it up, then go market to find the buyer. So you're basically marketing a house that you don't own Mhmm. To find a buyer even though you double closed on it and, quote, you owned it for five minutes and turned around and sold it.

Steve: And that's the big key. Right? Did you market the property before you were the owner?

Corey: That's right.

Steve: Right? And you got people that say, well, you know, you have to prove it. It's like, the one thing, because, we've been in this business for for far too long, perhaps. Right? And some things I've said before on this podcast, like, you you haven't been in business long enough, if you haven't been sued.

Right? Yeah.

Corey: 100%.

Steve: So you've been sued?

Corey: 100%.

Steve: Right? You've been sued?

Corey: Multiple times.

Steve: Right. Yeah. It happens. Right? But do I want to sit there in front of a judge and say, well, yeah.

Like, I double closed on it. And when they ask, well, did you market it? Can you prove to us you didn't market it prior to owning it? You have, like, pretty clear You're on you're on oath.

Corey: Right? Are you either gonna lie or tell the truth? That's what it's gonna come down to.

Chris: Right.

Steve: Yeah.

Chris: Well, I've always been, like, if you get to the you get to the point where you're getting served served or you're having a government agency knock on you, I don't want anything to do with it. I wanna I wanna back away from that.

Corey: Yeah. Right.

Steve: Right. Yeah. Like, I'm all I love gray area. Right? I thrive in gray.

Right? Dark gray. Right? Where it's like it's like pencil pencil gray. Right?

But once you're stepping on the black Yeah. That is where you get in trouble.

Steve: So And

Corey: there's always someone looking for and we heard this, right, in a in a convention that we were, you know, on a mastermind. Like, there's there's always someone that is they're trying to make an example of.

Steve: Mhmm.

Corey: Right? You don't don't wanna be the guy that they wanna make an example of.

Steve: Yeah. There's there's always the first guy they wanna crucify. Yeah. Right? And the other thing you see a lot, it was like, but I have the court.

I have equitable interest in this property.

Corey: Sure. Sure.

Steve: So, yeah,

Corey: I mean What

Steve: do your attorney have to say about those?

Corey: Well, equitable interest is does it it basically qualifies. And we talked to several, two South Carolina attorneys that have done thousands of transactions between them. Okay? Because the South Carolina is an attorney state. And they qualify equitable interest as wholesaling.

Mhmm. Right? So it doesn't it doesn't matter. You're you're assigning your interest effectively. Right?

It it it just doesn't matter.

Steve: Okay. So you saw this regulation. Right? It's coming down a pike, and then you guys decided, hey. Let's do something about this.

Right? Now I'm an entrepreneur. You're an entrepreneur. You're an entrepreneur. We get paid direct the, the amount we get paid is directly tied to size of the problems that we're solving.

Absolutely. Right? So you guys saw an opportunity. What was the opportunity that you guys saw?

Steve: There are two types of salespeople out there. They're the convincers, and they're the sales professionals. For the first nine years of my career, I was the convincer. Convincers are always out there trying to convince people to meet with them and buy buy from them. Their strategy is to try to push hard and never take no for an answer.

And by focusing on this strategy, they spend a lot of time on cold calling, the next marketing gimmick, features and benefits, how they and their company are the best, following up until their prospect buys or dies. All of this requires time and energy. The problem isn't the model itself. It's that their approach pushes prospects away. And this is the same exact thing that happened to me before I figured out to close more sales formula.

The solution, Sell customers exactly what they want to buy. That's right. I said it. We sell customers exactly what they want to buy because I would rather get an easy sell with a happy customer instead of a difficult sell from a customer who felt sold. No.

Thanks. I did that before, and it sucks. So here's the deal. I explain everything in the closed mortgage sales course. It's an 11 module course that shows you everything you need to know to close mortgage sales.

The best part, you can use this in any industry, not just real estate. So no matter what you're selling and to who you're selling to, this formula will lead to easier sales. Go to closemoresales.com/salesmasterclass, one word, closemoresales.com/salesmasterclass.

Chris: Well, Corey reached out to me, and he's like, did you see the South Carolina deal? He's like, are you worried about your operation? And I'm laying out I think he's texting me at, like, 11:30 at night.

Steve: You're in

Corey: The Bahamas or something.

Chris: I'm like, not really. I go, I think it'll take I mean, Phoenix is, like, the hub of wholesaling. Right? I'm like, I think it'll take a few of the players out of the game. I think I'll, like, actually make a little bit more money, so I actually think I might like it.

So so I'm like, no. I'm not afraid. And he's like and he's sitting there going like, well, how do we make the other guys not afraid? I'm like, I go into the coal wholesaling point, you know, I've always co wholesaled, and how I get some of my bird dogs that I pay more than $500 is I offer them their earnest money. Right?

Corey: Mhmm.

Chris: So that's been like, I bring someone takes Jamille's course or somebody's course.

Steve: Mhmm.

Corey: And

Chris: then they're just like, hey. I wanna do this, and you can tell they got the good sales skills and all that. And I'm like, hey. You just go find the deals. I'll put up all your earnest money.

Mhmm. So he's just like, let's let's think about this some more. And he's like, keeps digging and digging and digging, and he's like, why don't we just partner with all these wholesalers in South Carolina? We provide the money, and we get a piece of action. Right.

And then he just ran. Yeah. Yeah.

Steve: So what did you see out of this?

Corey: Well, I remember, Steve, back in and you you may remember this too, but I really delve in in 2009 08/09/1011 on short sales. I really focused heavily on it. And I remember during that time what was We all have done those. Right?

Steve: We are we are the old dogs here.

Chris: We are

Corey: the old dogs. But, like, I like, I created a course, sold 2,500 courses. Short sale fundamentals was the name of

Chris: the course.

Corey: Yeah. Created a short sale software. Had almost 5,000 users paying $99 a month called short sale builder. Had a fit for foreclosure mitigation and consulting business, hired a senior loss manager. Like, I delve in.

Steve: Yeah.

Corey: Right? And, we I remember the reason I bring that up to be relevant to your question is because I remember at that time, there's thing called transactional funding. Mhmm. Or at the time, it's actually called one day funding.

Chris: Mhmm.

Corey: And, our good friend and my best friend, Jason Medley, had a company called iVisionary. Yeah. And he was doing transactional funding back then. Basically, it was just you wire the money in to pay for the a to b because we didn't have the money.

Steve: Mhmm.

Corey: Right? So you still want to make the deal happen because you made $2,030,000 dollars in the back end, but you might have to pay couple points

Chris: Mhmm.

Corey: To wire that money in. But guess what? You didn't have to come up with the money.

Steve: Right.

Corey: And yet transactional funding. That was great for the transactional funder because he wired in, and in an hour, make two or three points. Make 2 or $3.

Steve: Yeah.

Corey: So it worked for everybody. But that model, I remember seeing it whenever short sales started to kinda ramp up, and I was like, man, that is gonna get big. I saw the writing on the wall. Right? Fast forward till today.

I think that's the same thing that I'm seeing right now with regulations. I think that more wholesalers are gonna be required to take the deal down

Chris: Mhmm.

Corey: And, quote, be licensed. We have a solution for both those, which is pretty awesome to be able to do that. And I think that it's just gonna escalate. I think that, more states are going to require that, and so we wanna be able to have that solution now Mhmm. And get in now.

And that's what I did when short sales. Nobody was really doing short sales, Steven, whenever I got in. Yeah. And it started to ramp up, and then everybody and their dog started doing transactional funding.

Chris: Mhmm.

Corey: I mean, I saw more and more people. So you saw here in in Arizona all over the place. It was like transactional funding was dying crisp. Right? Right?

I mean, it was a big deal. So I think the opportunity Mhmm. Is seen it's not where the puck is. It's where the puck's going.

Steve: Right. And

Corey: that's where

Steve: And why'd you reach out to Chris?

Corey: Chris is someone I trust. Someone's been a part of the mastermind group that I'm part of with CG and you and all of us are with Medley founding that group back in February.

Steve: Yeah.

Corey: I've been a founder, mini member of that for thirteen years now. Chris has been in there for probably seven years plus.

Chris: Yeah. For or 2017.

Corey: 2000 yeah. We I trust Chris. I know that he is also, really familiar with managing a fund. Mhmm. You know?

70,000,000, a $100,000,000 fund. 60. Not smaller. Number 60,000,000. And I also really appreciate his ability to take action and and also his insights onto where it can go quickly.

So whenever I started to share where I thought this this could go

Steve: Mhmm.

Corey: He could escalate it and take it to that next level too. It's like, hey. If we can get to x amount of loans, we can just sell this to Goldman.

Steve: Right.

Corey: Right? Which was that's the that's the idea that I'm I'm excited about about is that taking this idea and then really getting it, growing it, and then been been able to have an extra strategy. Yeah. Yeah.

Steve: And I think a key point here. Right? Because, like, Chris, again, like, one of my first deals one of my very first wholesale deals. Right? I I I wholesaled it to my cousin.

Corey: Okay.

Steve: Right? Because he was like, I quit in o seven. He quit shortly thereafter. Like, we both had good engineering jobs. Right?

I went the realtor route. He went the the flipper route, and then eventually, he became a wholesaler and you know Wayne. Right? Right? And so I got this deal, and I was like, what do I do with it?

So I wholesale it to my cousin. Right? And I look at the settlement statement, and I was like, who's this other guy? That's Chris. It's Chris.

Right? So he wholesale it, to Chris. Right? So he paid me he paid me 11, and he made 17. I was like, wait a minute.

I left money on the table on the table here. Right? So, obviously, you know, Chris, has has a strong reputation, been around, again, like a big, big player in the Phoenix market. But on top of all that, you have access to a lot of money. Right?

I imagine that was pro probably part of the consideration Sure. In starting to take down funding.

Corey: A 100%. And he had the great relationships

Steve: with

Corey: people, that have money too. Right? And so, you know, I I I wanna make sure that if he, one, he didn't have to buy into that vision. Right? He's seen a lot of people pitch him a lot of different things.

But I could see one, we kinda think alike, which I like that.

Steve: Mhmm.

Corey: Two, as I could see some wheels turning with him on the conversations

Steve: Mhmm.

Corey: That where this could go. Right? And we both, I think, agree that this is we're ahead of the game. Yeah. Like, I think there's gonna be more people come out with takedown funding than it's gonna be knocked off, but I think we're ahead of the game.

If we can get in front now

Steve: Yeah.

Corey: And we're in Florida, Georgia, Tennessee, North Carolina, South Carolina, Oklahoma Yeah. We have the ability from how we have this structured to have complete all the states in United States to be able to do deals Mhmm. As we start to get ramp up. Yeah. And with, with being licensed in those states to be able to do those and having a lot of those other, advantages, that's gonna take other people, I think, a little bit to to catch up to.

Steve: Right.

Corey: Plus with the structure, with the model, how we have it laid out right now, it's the first of its kind, Steve, for a 100%.

Steve: Well, so hang on. We'll get to that in a second. Right? Okay. So you see a problem.

You talk to Chris. Right? You guys are texting.

Corey: Yeah. They

Steve: say, hey. Like, there's a problem here. Wholesale is gonna need money. Right? That's basically what it is.

Right? So I'm a wholesaler. Let's say I'm in South Carolina. Yep. And I see this legislation that's been officially signed now, I think, about a month or two.

Right? I've got a deal.

Corey: Yeah. Since January, I think it came into yeah.

Steve: Well, it came in, but, like, it it was officially signed. I wanna say a month or two by the governor. Right? So now I've got this deal. Right?

And, you know, we talked about installment method on a on a previous episode with Devin. And with you guys, I've got this property, and I can't market it, so I need to own it. Right. Right? So how does this work?

Do I reach out to you? What what am I doing here?

Chris: Well, there's just a application online, but just you know, this has been my model the entire time. Bring me a deal. I can underwrite the deal, and I'll just co wholesale it with you. Right? That's it's just the same thing.

It's just just twisted just a little bit. So, I mean, this has been my model for twenty years, so that was like it was just like it's what I've been doing. So, like, let's do it.

Steve: Yeah. Well and, I mean, you had a lot of success. I mean, again, we talked about your your history, but even, during COVID, you had a lot of success with the with the funds. Oh, for sure. Right?

Like, people were sending you deals left and right for you to underwrite for the funds. Yeah. Right? So you have a lot of practice Yeah. Underwriting.

Right? Okay. So I

Corey: call it a human MLS. I was asking, like, how do you stay organized on things? He's like, it's mostly my head. I'm like, that's impressive.

Chris: Yeah. Yeah. It's cool. A little battered. I'm thinking I should probably get one.

Steve: So I got a deal. I submit it to you guys' software, website Website. Website. Right? Put in the details.

Right. And then you guys underwrite the deal. Correct. Right? And from there, you guys say, yay or nay.

Right. Right? Yep. Okay. So then alright.

So I got this deal. I sent it to you. You approve it. Right? How's what what is what are the next steps after that?

Chris: We just approve it, and it goes straight to RTC. Mhmm. We, we order an inspection. We order insurance. Mhmm.

We create docs. Pretty much ready to go.

Steve: So from there, it's it's clear to close. Yeah. Right? So, like, it's not, it's not, bank statements. It's not driver's license.

It's not, pay stubs. Right? Credit check. None of this stuff. It's it's just underwriting the property specifically.

And you guys you said you'll do a 100%,

Corey: right, which is First of its kind.

Steve: Right? Which is crazy. Right? Like, hundreds of financing is, not normal for the general public. Right?

Like, you do enough deals. You can get relationships. You can get private money. Right? You can get certain hard money lenders to be flexible with their terms with your track record.

Corey: Right.

Steve: But at this point, you're talking about anybody that's listening right now, you get a 100% financing.

Chris: On approved deals.

Steve: Yeah. On approved deals.

Corey: That's right.

Steve: Okay. So then, I guess, a follow-up question directly for those guys is, like, what what are the kind of terms, as part of the agreement? You wanna go

Chris: with that?

Corey: So we make it as, you know, boilerplate as possible, but, obviously, different states, different situations, there. But after it's approved, green light, we basically have the home inspection. That's usually, like, a $300 fee. Yep. There's a $12.50 flat fee Mhmm.

Steve: They

Corey: have. And then they have their what we call our option fee. There's first, basically, thirty days. So we're allowing them most wholesalers will get rid of a deal, wholesale a deal, assign a deal, whatever terminology you wanna use within about thirty to sixty days. Would you say that's true?

Steve: Yeah. Sometimes If

Chris: it's more

Steve: than sixty days, you're doing something wrong.

Corey: If it goes over sixty days, it might be concerning. Right?

Steve: Alright. It has to be a title issue. Otherwise, why is this happening? Yeah.

Corey: We allow you ninety. Yeah. Okay. We allow you ninety days. Right?

Now after ninety days, if you haven't got that deal done

Chris: Mhmm.

Corey: We're taking it over. Yeah. It's kinda like you've basically said you can't do it. We're gonna go ahead and take care from there.

Chris: Mhmm.

Corey: So we have a new model where we're partners with you in this deal, Steve. We're partners with you. So we take if you make more money on the back end, we make more money. So we get 20% of that deal. Mhmm.

You get 80% of that deal.

Chris: Yeah.

Corey: Right? And we are basically taking a point every 30 days.

Steve: Mhmm.

Corey: And that's just a great incentive for you to get rid of the what I call hot potato. I always call wholesaling hot potato because you get it and you you gotta get rid of it. You got a certain timeline you need to get rid of it. So it's the same thing here. We want you to get rid of that deal.

We wanna make sure that you're gonna make money.

Chris: Mhmm.

Corey: And the more money you make, we're incentivized and, you know, mutually to be able to profit with you. Right. So we're your partners. We want we don't wanna just have a, you know, a date with you and be like, that was good, you know, bad date. We wanna have a relationship.

We wanna really wanna be your partner. And we're also asking other people to recommend people over to our services, and And we have a program we're talking to you about, which is, you know, we wanna be able to help more people, offer solutions Mhmm. Solution based, you know, situations here with, with wholesalers, which right now, they just don't have any. Yeah. If they have to prove all these different bank statements that you set as you said or maybe put 20% down or all these other things they typically would have to do.

It's just not something out there that exists right now that is exciting for us to be able to offer.

Steve: So I just wanna make sure I understand. So, inspection, which is not unreasonable. Right. A dock fee, which is normal in Phoenix, but cheap, my understanding, everywhere else in the country.

Chris: Yeah. Cheap compared to, like,

Steve: Florida. Yeah. Right? I

Corey: mean Flat flat fee. 12 flat

Steve: fee. Yep. And then a point a month and then $80.20 split. And, like, you know, I've had so many people, that is like, hey. I wanna become a a lender in Phoenix.

And my answer every time was like, I wanna get in the Phoenix and start lending. I was like, good luck. Because I don't know how anyone makes money as a lender here in Phoenix. It's they're basically giving the money away.

Chris: Yeah. It's just a it's a volume game. I've had multiple there's a guy in CG that's like, hey. I'm gonna come start up. I'm gonna come start and be a lender in in Phoenix.

And I'm like, you're charging points. It won't work.

Steve: It won't work in Phoenix.

Corey: I don't

Steve: know why there's so much money here, but, yeah, anytime someone's like, I charge points, like, good luck. Yeah. Good luck in Phoenix. Wow. Right?

So but yeah. So but in other parts of the country, $12.50 is freaking cheap. Right? Yeah. You might even wanna look at that for other states.

But anyway, $80.20 is also incredibly fair because, like, my beginning of my journey. Right? Like, when I started buying houses, taking more properties down, I wanna say in 2012, I was taking more and more properties down. I had to get money from friends and family, and I, and maybe I was just being completely naive at that point, I was just doing fifty fifty. Right?

Yep. You fund a 100% of the deal. I don't make any payments. And at the end, we split everything fifty fifty. Right?

And they were happy with that deal, and I got to do all the work.

Corey: Right. Yeah.

Steve: Alright? So, yeah, $80.20 seems incredibly fair if you're funding a 100% of the deal.

Chris: Yeah. And they just gotta pay their option fee 1% a month, which is just baiting it's just paying our lender. Right? Right. Because they're putting out the cash for us through my relationships.

Right?

Steve: Right. Yeah.

Steve: Yeah. A point a month is, again, is is it's not crazy because you look at, I believe, in most states, it's two and twelve. Is that accurate? Yeah.

Steve: Two points.

Corey: Between two and twelve.

Steve: 12%.

Steve: Right? It's pretty common. So, like, really, you're just displacing here.

Corey: Three and twelve. Right.

Steve: Yeah. Wild. I'm just spoiled by Phoenix. Right. Right?

So two and twelve is is pretty common. So you're not even charging the two, and then the point a month is basically 12. And you guys don't have what's the word? So you guys have ninety days. Like, I I remember the very first time I used a hard money lender, and, like, hey.

Your six month lock has expired. I was like, what the hell do you mean? And they're like, yeah. Like, if you want another six months

Chris: Give us a point.

Steve: Give us or it wasn't just give us a point. You have to reunderwrite the deal. Yeah.

Chris: Cut your

Corey: cut cut some blood in there.

Steve: I was like, what the hell is this about? Right? And so, like, you guys don't have, like, a or it's not unusual. Like, three months really is a pretty fair amount of time. If you're buying the deal right, you should be able to move it fast enough in less than three months.

Corey: Sure. Yeah. Also, remember, we talked about this in the beginning. They're putting on MLS. Mhmm.

Right? They have an agent either on their side, but we're gonna get an agent that represents us. Mhmm. We're owning that deal. Right?

So the way that we're doing that is they get an option to be able to market that.

Chris: Mhmm.

Corey: Right? That's a benefit. Somebody somebody's telling me, well, I don't own it. Well, you don't want to own it in this situation. Let me why.

Yeah. Because if you did own it, we'd have to charge you $2,500. Mhmm. Because if we have to take that deal back and we have to go through foreclosure and all this other stuff, we have to charge some consideration for that upfront. Right?

We hope it doesn't matter happen, but we all know that things can happen. Right? Otherwise, this model, we own the deal. Alright? We can just simply take it on.

We already know how to dispo. We already know about wholesale. We already know, you know, this deal. You're already trying to make a profit.

Steve: Mhmm.

Corey: But if we can't get that deal done ninety days, guess what? We've got it at the a to b price. We can liquidate it. It's gonna be very minimal, risk if any Mhmm. Right, to be able to do it.

So we really wanna look at that wholesaler as a partner Mhmm. To do the deal, but we also wanna make sure that they're communicating with us too. Like, we underwritten underwrote the deal. So one of us, it's like, we thought it was a good deal. Right?

So what's happening? Why can't it sell? Right? Mhmm. We can we can get in there and kinda help them because we know that business so well.

Right. Now that you own the deal now that you own the deal, now you can go change the lock tomorrow.

Steve: Right.

Corey: You don't have to wait on somebody to come over, and they're there. It's ran you know, you don't have to wait on that stuff. You can go change the lock tomorrow. You can show it at 12:00 at night, 01:00 in the afternoon. You have complete control over that.

Steve: Right.

Chris: Yeah.

Steve: And so I'm trying to think what the objections are. Right? Because I think for someone that's listening, it's like, okay. Why do you why is it your name? Right?

Because your name is on the deed.

Corey: Right? We take it down our company.

Steve: Right. And so but I'm looking at that, and I can understand that concern, right, initially. By the end of the day, though, what is the risk to the wholesaler when you do that?

Chris: There is no risk. They got an option agreement to buy it back from us.

Steve: Right.

Corey: At the price that they negotiated to get it from a to b side. Yeah.

Steve: Right. So there's no There's

Corey: no risk.

Steve: Risk here because they're legally protected by the documentation here

Chris: Right.

Steve: Which says that they can sell it, and then the profit is split eighty twenty. Right. Right? But if they can't find a buyer, they just reverse back to you, and there's no legal expenses to have it revert back

Chris: to you.

Corey: Correct.

Steve: Yeah. It makes total sense to me. So then you guys have been doing this for, I mean, obviously, this is newer. Yeah. Right?

But you and I have been texting back and forth. Yeah. Right? And you shared this with me. I didn't know that Chris was involved until very recently, right, when I went to the website.

But you and I have been texting back and forth, and it makes it's it's totally sound. Right? Like, what what we're talking about here. So then what are some of the, I guess, challenges you you you ran into that you weren't expecting from, you know, like, having other people, like, looking at this, program?

Corey: So, like, you know, we really I mean, I think we we've been getting, like, an application every other day. Mhmm.

Chris: I mean,

Corey: is that pretty accurate? We've just finished another closing yesterday, the day before yesterday, so it's moving right now. Mhmm. Model's proven. It's moving, and we got more coming.

Probably after this podcast, we're gonna have more coming.

Steve: Yeah.

Corey: And one of the things that as you start to do this, you start to figure out a few things. Right? Well, one is, like, buying at the auction, like, you may not be able to get title insurance.

Steve: Oh, yeah.

Corey: We need we we need title insurance. So, there are some places that may, you know, offer it. And if that's the case, we need to understand who that is. But Oh,

Steve: so this is an option if you're buying at the auction as well.

Chris: If you can get title insurance.

Corey: Title insurance.

Chris: Yeah.

Corey: Yeah. So we we need title insurance. Mhmm. You know, there's some things that we need to make sure that the, you know, the wholesaler, what kind of, like what what what is their plan? What are they gonna do?

What are they gonna list this thing at? Mhmm. You know? Are they gonna list it for 5,000 over? Well, I'm probably not gonna make sense.

You know? Like, we're we're we know a good deal, and we know, you know, kind of a okay deal, and then we know, like, a home run deal. Right? So it's just it's just more of the communication process. But I think the those pitfalls are some of those things where it's like, we gotta get title insurance.

You're not really talking about that. That's like something that you kinda figure out as you're you know, you submit a deal and all of a sudden, hey. This is a foreclosure sale. And

Steve: Yeah. Well, you know, it's it's, I'm I'm a quick start. Right? Yeah. I imagine

Corey: I am too. You're a

Steve: very quick start. And so

Corey: Talking about the COBie.

Steve: COBie a test. Yeah. So I remember, like, we expanded to Oklahoma. Right? Like, we were on TV

Corey: I remember this.

Steve: Right? In your market. And, like Where are you now, Steve? We're not we're not in Oklahoma. I could tell you.

That's for sure. I mean, really, honestly, we we're not even focused on real estate right now. We're really focused on our sales training component. Right? Yeah.

But I remember we expanded the like, we went with Darren Damme with Bullseye branding. We're and I'm the face in Oklahoma City.

Corey: Yep.

Steve: And we started getting deals.

Corey: Buy your house. Right?

Steve: And we started getting deals. And I was like, hey. We should probably find a title company in Oklahoma. Right? We were advertising on TV before we even had a

Corey: This is the entrepreneur that, like, builds the parachute as he jumps off the cliff.

Steve: Right? Like, why have everything built out? Like, let's just go see if this thing works. If this thing works, then we'll we'll figure it out.

Corey: Right.

Steve: And, of course, we were able to find title companies. But, man, I remember, like, for, like, in like, I wanna say, like, three or four hours, like, oh, we should probably find a title company out. Like, we've got a property out.

Corey: Company out. That's important.

Steve: Yeah. Yeah. Okay. And we

Chris: did a little bit of that at first. We got our first applications. We approved some applications, closed a couple deals, but we we finally got the we're getting the systems in order.

Corey: Process in order. Yeah.

Steve: Yeah. Weather surprises have you have you found in doing this?

Corey: Surprises? You know? Here's the interesting thing. Some people that we know have a lot of money and that are well funded, you would think that maybe necessarily wouldn't need this.

Steve: Mhmm.

Corey: They submitted.

Chris: Mhmm.

Corey: And and they done deals. And so that's really cool because you may just, like, say, well, I got it. I can do it on my own, but do I want to?

Steve: Right.

Corey: Right? And that's great for us because we don't have to go out there and spend all the money on the marketing. Mhmm. Right? Yeah.

And we're getting deals not only that are great deals, but they're already locked up.

Steve: Right.

Corey: Right? And so, you know, so that's cool. It's surprising to me to see yeah. Just to see people that potentially have a lot of money that you and I would think, like, wow. This person's pretty funded.

Steve: Mhmm.

Corey: But they still wanna do deals with it.

Steve: I mean, as we're talking right now, is that I got a property that we're supposed to be closing this month. I was like, maybe that's just how you do it. There

Corey: you go. See?

Chris: Right.

Corey: Time. And so and I I love that because it does give us another of, like, hey. This isn't just for the beginner. You know? It's for the experienced people too.

Steve: Right. And

Corey: it's really just for the person that, you know, says I've you know, what risk do you what risk do you are you are you comfortable with?

Chris: Mhmm.

Corey: Right? And we know, though, as doing the wholesaling, and and just investing what a good deal is and what isn't a good deal.

Steve: Right.

Corey: Right? 80¢ on a dollar, not so much a good deal. I don't care where you are right now and especially in this market.

Steve: Yeah.

Corey: 70¢ on a dollar? Okay. You know? 65¢, we're getting there. 60%, Now we're talking.

Right? Anything under that, you know, pretty much you're you you've got a pretty good deal probably on your hands, but you need to understand what that looks like. Right? And so we'll we can underwrite those deals fairly quickly and make sure that you're not going to get into a situation where you have to give it up. Because after ninety days, be very clear.

You haven't done that deal, we're done.

Steve: Mhmm. I

Corey: we still can do deals with another deal, but we're taking that deal because we gotta dispose. We gotta get the money back.

Steve: Right. Absolutely. So go ahead.

Chris: Oh, I just like this because, like, you I mean, we've all been around the real estate industry, and we've seen, you know, some great journeys. One of my favorite journeys is, Luke Rodbald used to work for Brent Daniels. Right? Yeah. He was just a cold caller.

Steve: Fantastic dude. That's all he was.

Chris: He was a cold caller. And now you see his journey, but we're making this program makes whoever takes whatever guy's class Mhmm. It gives them an opportunity to have the same journey that, you know, Luke did. But if Awesome. He's in South Carolina, he's stuck.

Right? Unless he can then, I mean, he could take the class, and he's gonna go have to find private lenders and

Corey: Right.

Chris: Mhmm. Or he can just come to us, and we're his co wholesale partner.

Steve: Yeah. It's pretty phenomenal. Yeah. So, you were one of the originals in Investor Lift. Yeah.

Right? Yeah. So you know how to underwrite nationwide because you've been doing PPC with Sean Terry, right, nationwide.

Corey: Yeah. Well, he's the OG for sure, but I've learned some things from him. Yeah.

Steve: Yeah.

Corey: We definitely learned our national model from Sean. Great dude. Love Sean.

Steve: How many markets have you been in?

Chris: I'm just in well, I've been in lots of markets pre financial crisis. So, like, we were in Las Vegas and Denver, Utah, Texas. But just now, Arizona and Florida.

Steve: Right. So I'm curious as far as underwriting goes because, like, I we we want the nationwide model for a second. Yeah. It's not easy. It was not a pleasant experience.

I know it can be done.

Corey: Money for six months out of it.

Steve: But it's it was not a pleasant experience. Right. So talk to me about underwriting. Right? I got a deal in North Dakota.

Corey: We don't service it

Chris: right now.

Steve: Okay.

Corey: But Tennessee, let's just say, or Georgia.

Steve: Let's say, I have a property in, I'm trying to think of, like, some of the rural areas. Like, I was like, Gunstock, Texas. It's just these ridiculous names.

Corey: Not in Texas yet. It's coming.

Steve: But, like, how are you guys underwriting these deals, effectively? Because, like, the the there are challenges with with doing nationwide, underwriting. Right? Nationwide wholesaling. You You guys may be doing nationwide underwriting to protect yourselves, right, and your partners.

How are you guys underwriting nationally?

Steve: You spent countless weeks going back and forth with homeowner only to lose a deal because the seller changed their mind. Another wholesaler made an unreasonable offer or what the seller needs from the sale, you just can't pay. Now imagine you've got the ultimate control on a property that you just locked up, meaning you're on title and every decision has to go through you, eliminating virtually every external threat. That's why the installment method was created. Through installment payments, you have full control of the property as your name is now on the title.

Any decision the seller wants to make now has to be approved by you. No longer can they pull out equity, go with another buyer, or change their mind. Imagine combining the best creative financing with the flexibility of marketing the property on the MLS to collect the most amount of revenue possible, all while having total control of the property. This is just a tip of the iceberg. The concept here is simple, but implementing is challenging.

So visit wholesale2024.com

Steve: to learn more so that you'll

Steve: never have another deal blow up.

Chris: Well, I think it's just, you know, I'm obviously looking at comps. And if I don't have comps, I'm probably just gonna say no. I mean, it's just probably I'm more of, like, I'd rather make no money than lose money. Mhmm. That's always just been kinda my theory.

Steve: And That's that Warren Buffett's rule. Right? Right? Rule number one is don't lose money.

Chris: Yeah. So I think

Corey: you've lost, like, less than 200,000 in ten years or something on your day.

Chris: As post I mean, obviously, I had the financial crisis. But since 2008, my hard money company has lost 27,000 on one and 112,000 on another.

Steve: That's really impressive.

Chris: And that's it. That's impressive.

Steve: That's really impressive given the volume. So I've heard way more

Corey: And how many loans do you think that went through there?

Chris: Oh, that's three or four hundred a year. So but, I mean, I I could probably give you the address of those two houses. I know exactly where. One one guy ended up on American Greed. I'll just leave it at that.

Yeah. Wow.

Steve: Yeah. So I'm guessing it was, like, Scott something. Right? Or

Chris: Something like that. Yeah.

Steve: Something like that. Yeah. Very, very, very sad story. So,

Corey: But but Chris to answer, Chris is obviously extremely, versed in underwriting Mhmm. Not just in Arizona, but Florida and a few other places. We've got some other we we got a strategic partner that we're working with too that's also done, you know, all kinds of deals in other states. Mhmm. So they're also putting some eyeballs on it too for us Yeah.

To be able to make sure that we're not, you know, doing something we shouldn't.

Steve: Yeah. No. That makes a lot of sense. So, any questions I haven't asked you about take down funding that should've asked? I

Chris: don't know. I'm just excited about the opportunity.

Corey: I'm excited. You know, I I I want to make sure I convey this. Some people that are listening to this, they may say, I don't need it. I'm not in South Carolina.

Chris: Mhmm.

Corey: I'm not in Pennsylvania. I'm not in Oregon right now. You can actually go to prison over wholesaling. You know that?

Steve: Yeah. Yeah. You can go to prison for wholesaling, but you can sell as many drugs as you want. As long?

Corey: Yeah. Totally you want.

Steve: Yeah. Unlimited.

Corey: Unlimited. Right? Crazy. Oregon crazy. Shout out to Joe Taylor, my good dude.

But

Steve: I sent him so many ridiculous articles. They

Corey: always send him the memes. I love Joe. But, you know, at the end of the day, in Washington, all these bill all these places, you're starting to see the writing on the wall. Yeah. Okay?

I saw the writing on the wall on short sales during transactional funding. Mhmm. That is where I see things going.

Chris: Mhmm.

Corey: And you may say, I don't need it. I can do my deals right now. I'm not having any problems. I'm I'm, you know, I live in, you know, New York. Mhmm.

And I'm I'm just still doing my deals. I understand that, but don't be late to the game. It's not where the puck is. It's where the puck's going. Right.

Anytime in my life that I've ever had success on things. Plasma TVs, one of them. When they first came out, got in front of them, made money on it, sold it. Because I knew when I saw Sam's start to come out with these plasma TVs, there's no way I'm gonna compete with Sam's.

Steve: Mhmm.

Corey: No way. And I need to get out of

Steve: it. So it's

Corey: a good time to get out of it. Right? There are these times where these things start and then they grow really quickly. Right? And I believe that we're in a place right now that takedown funding is gonna be an actual new category Mhmm.

Of lending. And if you aren't paying attention to that right now, you don't wanna be in all of a sudden get a letter, which is what happened in South you just get a letter and a email that says, oh, by the way, you can't no longer you can no longer do this. Mhmm. And now you're stuck. Versus let's build a relationship now.

Steve: Right.

Corey: Right? Let's let's see what deals you have. Right? And let's see if it makes sense and at least build that relationship now where if something does happen, which I do believe and we believe is gonna happen with the copy legislation, you're prepared.

Steve: Mhmm.

Corey: You're not late to the game. You already are are known where the puck's going.

Steve: Right. Yeah. Well, if if nothing else, just kinda compare. Right? Like, if you have a a private money lender or a hard money lender, just compare where you would sit with this option versus your existing option.

Because like I said, like, right now, we're doing the math. I'm doing the math in my head as we're talking. It's like, why just have Chris look at this one? Because this is I got a property historic, Garfield Historic District. District.

Right. I wanna have you take a look at that one. There you go. So how does someone get, to, to find out more? Where where do they go?

Chris: Just takedownfunding.com. Yeah. Yeah. Simple.

Corey: Takedownfunding.com. Fill out

Chris: the application. Obviously, once you get the deal, just fill out the application.

Corey: You find it, we fund it. Yeah.

Steve: Yeah. Simple. Perfect. Alright. Well, thank you guys very much for coming on.

Thank you. Any any last messages you wanna leave all the listeners with?

Chris: Well, just, for our Arizona folks, you know, I'm obviously, you know, when he reached out, you know, and there's been some people talking about what's gonna happen in Arizona. So I, I decided, like, let's not guess. Let's just ask.

Corey: Mhmm.

Chris: So on using my the Phoenix Rio platform kind of a neutral platform

Corey: Mhmm.

Chris: I got Susan coming to Scottsdale Community College with, 200 people from five to seven on September 10. And, Fidelity Title is gonna MC it, and we're gonna ask, like, what's coming there? What's your agenda?

Steve: Mhmm.

Chris: Are you gonna try to outlaw it? Mhmm. Are you gonna try to license us all? Because if I need to be the first one in the ninety hour class again, I guess I gotta go to ninety hour class again. Right?

Steve: Susan I

Chris: don't know her last name. What's that?

Steve: Was that with the commissioner?

Chris: Yeah. The commissioner.

Corey: Oh, so

Steve: you got her to come in? Yeah. That's awesome. So, I mean, just She's elusive. I've heard I've heard some people try to get a hold of her.

So

Chris: Yeah. No. I I use I I used Chris

Corey: knows everyone.

Chris: Fidelity. I just called up the president of Fidelity. I'm like, Yeah.

Corey: Just call up the president of

Chris: Fidelity. I'm just like, hey. Like, I mean, I just wanna play by the rules. Right? Right.

Right. But I just wanna know what the rules are. And I, like so just tell me what the rules are. I'm like, so why don't I mean, if I call, they're not gonna answer me. So Fidelity Title, why don't you call and Phoenix Rio will put on the venue and put on the will sponsor the thing and just, you know no.

The questions aren't it's not an open forum question. Yeah. All the questions were approved.

Steve: But Right. But but

Chris: it's still I mean, there's questions like, are you gonna make us get licensed? Are you gonna try to, you know, are you gonna make us take it down? Our novation is gonna still be legal. Like, do you have anything about subject two coming down the pipe? Like, what's happening in our industry?

So I think that should be That's

Steve: where you said September 10.

Steve: Or

Chris: tenth. At Scottsdale Community College.

Steve: Trying to think if I'm gonna be anywhere September 10, because I wanna be there.

Corey: Yeah. That's what I think what CG is.

Steve: CG is I think it's around the same time. I think it's I think it's the week Family Mastermind is the thirteenth to fifteenth or twenty twenty third to twenty fifth. So I didn't think CG is the week before that, so we should be fine.

Corey: K.

Steve: But, yeah, I might wanna drop by and check that out because, she's actually cost me a lot of money, our our commissioner. Right? So, had nothing to do with wholesaling.

Corey: Yeah. Had nothing to

Steve: do with my title company, and we had some challenges with the title company. So I

Chris: had to

Steve: had to unwind it because of her.

Corey: So Gotcha.

Chris: Yeah. So that's 6

Steve: figures a year. Like, whatever.

Chris: Well, that's kind of the the whole and I've heard stories like that, and I've heard wholesale stories. And it's so I was just kinda like, let's not guess. Let's just ask.

Steve: No. I think that's awesome. So everyone that's interested that's in the Phoenix market

Chris: Yeah.

Steve: Phoenix Ria.

Chris: Yeah. Phoenix Ria. We're just putting it on, but, Fidelity Title's gonna MC it. She's coming in.

Steve: Mhmm.

Chris: Obviously, it's it's 10 to 12 questions, but, like, the questions I talked about, And, you know, so it's not just, like, everybody in the room can answer. But it's it's it's real questions about, like, what's her agenda and, like, what's it gonna look like? So if I need to go get licensed, I I mean, I have to go back to school for ninety hours.

Steve: Well, your sister's so licensed. Yeah. Right? But yeah. I mean, say that to me.

I'll I'll I'll I'll I wanna promote that. Right?

Chris: So I

Steve: wanna promote that on my platform because that's directly impacts us. Right. And, man, if she gets me twice, I'm gonna be really pissed. But that's a whole another story.

Corey: 6 figures wasn't enough.

Steve: Yeah. 6 figures a year is not enough. Yeah. Yeah. I haven't really talked about that publicly, but I had to unwind my title company.

Like, that sucked. Right? Yeah. Because her specifically.

Corey: Oh my goodness. That's

Steve: what happens when you have a democratic governor elect. You know? Whatever. Anyway, I don't wanna rant.

Chris: Steve.

Steve: Any last thoughts you wanna leave everyone with?

Corey: Sure. You know, I'm I'm always excited about entrepreneurs just, you know, making stuff happen.

Chris: Mhmm.

Corey: You know? And one of the things that's been impressed about Chris is that, like, I shared some ideas with him, and he could have been like, ah, everybody shared ideas with me, which I'm sure he does. But he was like, that's a great idea. Let's make it happen.

Steve: Mhmm.

Corey: You know? And that's where oftentimes you have to jump before necessarily you see what's on the other side.

Steve: Right.

Corey: What I found is whenever you do that, most of the time, you find yourself that everything you've ever wanted is on the other side of fear. Mhmm. So I would just encourage people to overcome their fears by basically doing the thing that scares them the most.

Steve: Right.

Corey: I remember when I jumped out

Steve: of an

Corey: airplane, I was scared of heights, absolutely scared of heights. And I have this on video, and I'm literally shaking to the point when they open the window. Ever if you ever went skydiving and they open the wind the the door and you hear the wind, you you literally feel like you're gonna shake your hand. Like, you're you're you're gonna crap. Right?

But then when you jump out and it's, like, so calm and peaceful, like, floating down

Chris: Mhmm.

Corey: Like, all the fury just goes away. And I learned, like, the snaps in your brain change

Chris: Mhmm.

Corey: That whenever you overcome death, it changes now. So, like, now you you feel like you jumped that airplane, you can overcome anything.

Steve: Yeah.

Corey: And so my maybe it's not not having to do with necessarily with real estate, Steve, but it's just people need some encouragement right now. Man, it's tough out there right now. I was talking to investors that have been in the game for a long time, and they're getting hammered.

Steve: Mhmm.

Corey: Not just inflation because potato chips now are $2 $5 instead of $2 or Cokes or whatever. What you're whatever you're thinking about with the with groceries. But, like, just everything in general right now is your rates have quadrupled, you know, since they've been in COVID.

Chris: Mhmm.

Corey: You know, just it's it's just hard times right now. And, like, if you have an idea and you think it's going to with that idea. You know what I mean? Take action on it. Make something happen.

On the other side of fear is everything you ever wanted in your life. And, yeah, I just wanna encourage that person that maybe just be, like, on, like, man, it's tough right now. Like, take down funding is is, for me, like, a way to be able to offer somebody something that maybe doesn't have a lot of money. Right? Right.

These these these wholesalers don't necessarily have they spend a lot of money on marketing. Right? Don't lose the deal. If you got a good deal, don't lose the deal just because you think, well, I don't wanna give up a couple of points and 20% of my deal. Like, let's talk about it.

If it makes sense, you know, let's do it.

Steve: Perfect. Makes total sense. Thank you guys again for coming on. Thank you guys for watching. We'll see you guys next time.

Chris: Shout out to Steve train. Jump on the Steve train. Disrupt us.