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We know relationships are important, but would somebody just think, Oh, the way I’m gonna win deals in a historically tight market is by building relationships. Here’s the problem with relationships, Steve. They take forever to build relationships don’t happen overnight. Relationships happen with a lot of time and a lot of trust built.

And so if you can piggyback relationships that makes your ability to invest in real estate much better, what would your life look like if you could replace all of your working income? With simple and conservative investments that could do it for you. Over the last 13 years, we’ve helped thousands of clients transact over half a billion dollars in simple and conservative real estate transactions, allowing them to begin replacing their work income with real estate investment income.

Each week, we’ll be pulling back the curtain on the ins and outs of real time retirement based real estate transac. That will transform your financial future even if you have no real estate experience. This is replace your income with me, Kevin Clayson and Steve Earl. All right, well, hello everybody and welcome to Replace Your Income with Kevin and.

Steve, What’s up man? How are you? I’m doing well. I’m think I’m doing a little bit better than you. Yeah, I don’t feel great. Yeah. I don’t feel, But you know, I’m gonna try to power through and we’re gonna, we’re gonna make, hopefully, my goal is that everybody listening right now has no idea that I feel like trash and basically have a migraine.

That’s the hope. Yeah. Well, I mean, nobody would ever really know, cuz you always come across, you’re always energetic, you’re always friendly, you know, you got that ability. You’re purely fueled by monster and rockstar. That’s it. That’s all. Uh, hey, they need to sponsor us. I think at this point, um, that would be a good idea.

Could we like. Sponsor ourselves through Rock. Like just say that we’re sponsored by Rock, by uh, we could brought to you by Done for you Real estate and Monster Energy. Yeah, we can do that. I think that works well, man. I’m excited to be with you, dude. This is gonna be a good episode. Yeah, I’m, I’m excited about it.

Great topic. Uh, you know, we’ve been getting these questions a lot, uh, recently about the market and. It, it’s just, it’s a tighter market than we’ve seen in a long, long time. Maybe it’s the tightest market ever. I don’t, maybe, I don’t know if that’s a correct statement, but it, it’s really tight out there.

Well, can you think of another time in history where the negotiations happening? Are like they are now. Can you think of another time? Not in the time that I’ve been in real estate, which is 20, what, going on 30,000 years now? Yeah. Somewhere in that ballpark. Yeah. It was, I was gonna say 20,000 years, but might be 30

I was joke, you know, you’re, you’re young, but my dad is old and uh, if you’re listening, Hi dad, you’re old. Um, but I love you. He’s 83. And I, I always joke around, we always joke with him that he’s older than dirt and so it’s think he might be, but dude, Yeah. I mean, I’m thinking about even when the market was on fire.

In the early days when we started the company, right? It was never like this, that I can remember, right? Where, where, uh, like in Utah, you know, a home goes on, you know, gets listed and within hours there’s, I don’t know how many offers all above asking price. And that’s kind of happening across the country.

We’re seeing that to a certain extent. So I don’t know if we’ve ever seen a market like this before. Yeah. No, it’s, I mean, there have been similar markets in that timeframe that you’re, you’re talking about was one of those times when, when things were pretty hot. But what’s interesting about this go round is most of the experts out there, ourselves included, feel like this is not gonna be a short lives scenario.

Like this could go on for several years. Yeah. And so, you know, if you’re an investor and you’re buying, you gotta kinda gear up and prepare yourself and train. To, you know, to under understand how to get deals in this current environment, because it’s probably gonna last for a while. Hold the phone. Let me just restate what you just said, because this is a question that we get a lot, right?

It’s like, how long is this gonna last? We don’t know how long it’s gonna last, but if you look at all the kind of leading indicators, I don’t know if it’s gonna come to a conclusion anytime soon. Yeah. I mean, Fannie Mae, Freddie Mac, they came out. You know, an article or a statement, you know, basically saying that there’s like a 3.8 million single family home shortage currently, and, and that’s continuing to grow.

And there’s other articles by other groups who are really analyzing the market. Stating things like, Hey, if, if the building community can ramp up and build x million number of homes per year, and with the continued, you know, growth of people getting into and wanting to live in single family homes, it could take five to six years according to one, to one group.

And I don’t know, we, you never know if, if that’s accurate or not, but what I do believe is accurate is there is a significant, call it massive shortage in the millions of proper. Based on the fact that there’s a shortage of labor, there’s a shortage of materials, costs are going up. It’s tough to build homes fast enough, right at the speed that they need to, to build even, even to make that number, you know, just a few years, 3, 4, 5, 6 years.

In fact, right now in Florida, our builder who builds best exclusively, there’s a 21 week waiting period for sliding glass doors. 21 week for sliding glass doors. Unbelievable. Well, that’s gonna push the completion date a bit there. It does, and it’s kind of that way with, you know, it’s not just in the building world, it’s like, you know, my brother-in-law is buying a new vehicle and he’s not gonna have a vehicle that he can actually drive off the lot until sometime in September.

So, I mean parts for everything, you know, from TVs to cars, to homes, to whatever. Yeah. You know, the supply chain was severely disrupted by Covid, and that’s a part of what’s going on. Right. It’s a big part of what’s going on because factories like all around the world shut down. Completely shut down. Yeah.

For. And so, you know, factors are ramping back up and, and supply will will come back. And hopefully that will help out on the pricing thing. But because of all of the different factors that we’ve talked about in other episodes as to why there’s such a shortage of single family homes that will continue for some period of time, even when the supply chain catches up.

And so that means that we might see a market like this for a while, right? It’s not gonna be, we don’t think this is gonna be a short-lived deal. We don’t know. By the way, I had a little experience with this, uh, as far as disruption of supply chain. So I dunno if I told you. So, we ordered, we, we bought a new home last year, right?

That we moved into. We ordered a table and we got a nice dining room table. But because of the way the dining room set up, we wanted a bench, right? So, so, you know, it’s not just the chairs, it’s also the. Nine months later, we got our bench. Wow. Just a bench, man. That’s how long it took for them just to complete it.

And we’re like, seriously? We would call all the time and they’re like, Sorry, they’re not expected to have it to you anytime soon. We’re like, What is happening? We’re like, It’s wood, and it’s like legs and a thing, put your butt on and anyway, But let me tell you, the bench looks good and the kids are loving it.

That’s cool. Yeah. That’s great. Well, I mean, and that brings us to kind of this episode today, right? You know, what, what skills or what negotiating tools can we apply in this market to increase the likelihood of getting a property, a good property that, uh, you, you could, you. Add to your portfolio and that, and that is really the topic that we want to talk about today.

How do you win deals in this historically tight market? I’m literally getting questions on that every single day, right? When I’m talking to, to potential clients. They’re going, I mean, are you guys still able to get inventory, like what’s happening? And Steve, you, you know, we are putting properties under contract with our clients.

Every single day pretty much, right? Multi, you know, throughout the week we are putting properties under contract every week. And the question is how, Because there are people out there searching right now that are like, Whoa. There’s this teacher, I can’t remember if I mentioned this on the podcast before.

There’s this teacher that my wife worked with at the school. That school just got out. But um, she has been looking for a primary reside. For four months and they can’t find anything. They can’t put an offer on anything. And so people hear that, they know that, and they go, Well then how is that possible to go and get inventory and win deals in this market?

Is it doable? And there, Steve, we were talking about this before we recorded, There’s one primary thing that we have kind of identified as the differentiating factor that allows us to continue to win deals and allows our clients to still be able to put deals under contract. Right. And that that single greatest thing is relationships.

Relationships. Who would’ve thought, right? Most people would be like, Oh, you’re a really tough negotiator. Look, we’re gonna talk about negotiation and some of what’s happening. People might be like, Oh, you’re just you. You know, you got a shrewd eye. Listen, the reality is relationships right now. Our, we are finding are the single greatest key to being able to win deals and being able to put deals under contract.

And so for somebody that doesn’t have relationships in the market, that doesn’t work with agents and property managers and rehab crews, yeah, it might be kind of tough, but we’ve been really fortunate that we have these long term relationships that we’ve built with these teams in the market and those relat.

Our paying dividends right now in our ability to help our clients put properties under contract. So we thought we’d come on today and talk a little bit about this idea of how important relationships are and why those relationships are important and how they’re making a difference and, and allowing our clients to win deals in this market.

And we’ll touch on a little bit too, what are some of the things from a negotiation standpoint that are beneficial? Yeah. And we’ll, we’ll talk about some of those negotiating call ’em strateg. That we’ll share with everybody. But, you know, getting to this whole relationship concept, you know, it’s not that, that, that, that’s unique to us or unique to our industry, but across the board right now, the companies who have some inventory of what, whatever it is that they sell, is based on relationships, you know, with suppliers, with manufacturers, people who provide the parts and the pieces to whatever it it is that they sell or manufacture.

Right? And so in our case, you know, fortunately we, we’ve been in business, now we’re going, we’re in our 14th. So we have some really strong relationships with individuals who we’ve been working with, you know, for longer than a decade. Ind like individual real estate agents, uh, property managers who for many, many years have been delivering properties for us and they have relationships with builders, with other agents, with individuals in their communities who have, call it pocket listings or, you know, they know somebody who knows somebody who knows that we would love to come in and, and purchase their home before even putting it on the market.

And potentially save some commission. And so there’s, there’s a number of different things, right? Based on, on the relationships and it’s absolutely key. And here’s the thing. We talked, uh, recently in one of our episodes about this concept of principle based investing. And I would say just principle based business dealings.

We talked about virtue based capitalism and so on. That’s how you build relationships is when you pay your bills on. Somebody wants to do business with you. Somebody who you treat with respect and with honesty, with integrity, who you know, you show up when you say you’re gonna show up. You make a phone call when you say you make a phone call.

And all of those small things that were based on principles are now paying dividends because the people who they know you, they like you, they trust you. They want to do business with you, and they understand, and they’re gonna do business with people who treat it in that way, right? Because they know that this inventory issue isn’t gonna last forever.

And so they’re going to stick with those individuals who treated them well and who were good business partners for the last couple of years, for the last many years, right? And that’s what this whole concept is based on. Without that, right now, we would be. We would not be finding very many opportunities for our clients.

Yeah. Just based on the relationships alone. Well, yeah. So you, you know, there’s an element of, okay, if you wanted to go and invest outta state, like you’d have to pick the market, then you’d have to find the contacts and if you were to just go and contact some random agent and some random market that you’ve decided as a good place to go and invest in.

I mean, maybe that goes, well, maybe it’s not right. But you don’t have a relationship with that individual, so how do they know if they could trust that you’re gonna perform on the purchase? And if you don’t have a relationship with the property manager, the property manager, you’re just another door, right?

They don’t have, they don’t necessarily feel a huge sense of loyalty, potentially. And so there’s this idea of building these relationships. And here’s the deal. Most of us. Don’t know multiple people in multiple markets that can help us invest in real estate, which is why what we’ve tried to. Over the years it done for you real estate is we’ve got these teams and we’ve got these relationships that we’ve built and it’s not just relationships with agents and property managers and all of that, cuz that’s key.

But one of the big ways that we’re able to still find inventory right now, Steve and is we’ve been able to build relationships with builders so we’re we’re able to deliver new construction product in some of our markets. Let’s talk a little bit about those relationships and why those are so, Yeah. You know, and here’s the deal.

Our agents, builders, individuals that we work with who, who provide properties to us. Here’s the reality is, although, you know, they’re getting good and they’re getting good value, good prices for the properties that our clients are buying, they could probably on the open market, sell these properties for even more.

So why would they continue to sell us if they could go out and get, you know, a few thousand dollars more elsewhere? And it’s because of the relationship concept in. They understand and we understand that this situation isn’t gonna last forever. Right? And so they want to continue with that relationship.

Maybe they make slightly less, right? But they’ve got the consistency of clients coming back again and again and again, and they got the consistency of the volume. And so they wanna continue to do business with us because they know that post inventory shortage, we’re still gonna be here, our clients are still gonna be here, and, and they, they wanna maintain and, and even strengthen that relat.

So when the market isn’t quite so tight as it is right now, that they’ve got a lineup of buyers ready to go. Ready, ready and willing. And so we’re very, we’re the beneficiaries of their goodwill and their good business practices. And so it meant shout out to, you know, to our teams and the markets, those who who have stayed, you know, really committed and loyal to us and to our clients.

They prob they could not probably, they could go elsewhere and get, you know, more for their product currently. And so, you know, we, we just love our teams and appreciate them so much and what they do. And so we’re super fortunate to have builders who, who are willing to do just what they’re doing right now and, and to continue to work with us and our clients and to, uh, Really step up during this time of, you know, inventory shortage.

They’re playing the long game, right? There’s a, there’s a book, I think I’ve talked about it before, but there’s a book written by Nick, Guy named Kip Tend, do you know who that is? I don’t. He’s the founder of The Container Store. Right. So the Container Store just sold empty boxes, you know, and now they’re pretty big brand, but he has these foundational principles.

They, they, they went public here, he sold the company and I think. Maybe changed a little bit since then, but he had these principles that he really based their company off of. They opened a little store in Texas. They were a big box selling littler boxes. Right? . They were selling empty boxes. That’s what the container store was.

It was organization, and it’s still to a large degree is, but this principle, I’ve never forgot that he taught in the book and that he used as a foundational principle of building the company, which was in talking about his vendors, right. The people that they ordered product. He always said, Fill the other guy’s basket first.

Then making money becomes an easy pro. And what I love about that is you look at what we’re trying to do and really what our vendors are trying to do for us, which is they’re trying to provide opportunities for us and for our clients, knowing that we’ve been around for nearly 15 years now, and that we’re gonna keep this going.

We’re trying to, part of how we fill their bucket, both our agents as well as these, you know, the, the builder. Is the whole thing we do. We’ll do an episode on this soon where we talk about why we have people go through a full doc preapproval before they go and buy real estate. The fact that we’re doing a massive amount of work before somebody even shops for a property work, that by the way, we as a company do not get compensated for, right?

We’re doing that so that we have really awesome, well qualified buyers. Go into these markets who are performing. Right. The, the worst thing for a builder is they put a property under contract, they get the home completed, and then the, the buyer can’t perform. Right. That’s a huge headache. And builders then they’ll end up losing money if that’s the deal.

So we’re filling their baskets. By trying to have really well qualified people that are understand the kind of investment they’re doing. They’re trying to fill our basket by providing opportunities for us and for our clients that they maybe aren’t providing to others. And there is this principle based, virtue based capitalist, a relationship where there’s mutual benefit, and as a result, we’re able to win deals.

And I know it seems crazy, right? Because a lot of the stuff we do on this podcast, Steve, it’s like it’s not traditional. Real estate mentality, right? And this is another one. It’s like, we know relationships are important, but would somebody just think, Oh, the way I’m gonna win deals in a historically tight market is by building relationships.

Here’s the problem with relationships, Steve. They take forever to build relationships don’t happen overnight. Relationships happen with a lot of time and a lot of trust built. And so if you can piggyback relationships, that makes your ability to invest in real estate much better. And that’s, that’s one of the things I think we try to provide as a company done for your real estate, for our clients that are aspiring clients, is we have these relationships that are foundational to everything we do, whether that’s with builders or whether that’s with agents and what you said too, think of.

If we are pre-approving folks and we know that they’re well qualified when they go to the market and our agents know it’s a done for you client because they’re, you know, the vast majority of every deal that our teams are doing in the market are with done for you real estate clients, right? So they know done for you real estate clients perform will.

Now that agent, that that’s representing a, a buying. There’s sellers agents that, guess what they want their home to get sold so that their sellers are happy. And if they know that there’s a buying agent in town who always brings really well qualified buyers that that perform, you know, a hundred percent of the time are dang near.

A hundred percent of the time, all of a sudden that selling agent’s like, Oh, you know what? I’m gonna contact so and so buying agent because I know they’re gonna have somebody. If they don’t have ’em today, they’re gonna have ’em real soon. And all of that comes from a network and environment. It comes from relationship building, it comes from a, a track record of this stuff happening day in and day out over many, many years.

And that allows our clients to continue to win deals even in what? Typically a very, really historically tight market, and that’s why we’re talking relationships and most people wouldn’t think the relationship is the key. We’re saying it is a huge key to winning deals right now. Yeah, it is. It is the number one key now on top of the relationships.

There are some negotiating or some strategic negotiating, uh, strategies that, uh, make a lot of sense in this, in this current market as well, that we also, you know, apply to our efforts to win inventory for our clients. And so probably good to chat a little bit about, about this part, because this is also a big part.

How we are providing inventory for our clients. And these are some, some strategies that individual investors, whether you work with us or you work on your own or somebody else that you definitely can employ to increase the likelihood that you’re gonna win some deals out there. Well, and so one of the big ones, and this is something that, that we take a lot of pride in and that we spend a lot of years developing.

Is at done for your real estate. We have this really awesome proforma, right? And what the proforma is, is when our agents find a deal that they think might be a good fit, they know the parameters, right? We, they know our definition collectively of what makes a good deal. We don’t call it good deals, always.

We call it purchase worthy properties, right? What makes a purchase worthy property? It doesn’t mean that it necessarily has equity. We’ve talked about. On the podcast, it’s that this deal at this purchase price and knowing what it’s gonna rent for is gonna cash flow and it’s gonna perform and it’s gonna grow and it’s gonna be a part of a portfolio.

So we’re looking at that. We’re looking at all the things that we’ve talked about before, right? Where it’s located, what neighborhood it’s in. What it’s gonna rent for, what the purchase price is, all of this stuff. And so our agents know those parameters and because they know those parameters, when they find a deal that fits the parameters, they send it over.

We get to plug this information into a proprietary performa that we’ve developed over many years of saying, okay. If we plug in these numbers, the perform is gonna tell us, is this property gonna perform or not? And if it’s gonna perform, then our clients should be very confident. We’re very confident that, Dang, that’s a good deal.

Let’s go make an offer on it. Right? It doesn’t matter what color the paint is or, or necessarily how new the windows are, we know this thing is gonna perform well. And, and here’s one of the great things is that sometimes we’ve talked about this in previous podcasts, is that in some markets, Purchasing below list price is what you’re shooting for.

Other times it’s at list price and other times it’s above asking price. Right? And that’s where we’re at today. And so what’s cool about having a tool like the proforma that we use is that we can plug in a purchase price, we can plug in, you know, the different parameters and we’re gonna focus on purchase price for a minute is, gosh, like one of the properties that I bought earlier in the.

My offer price or my, you know, contract price was $10,000 above asking price. Yeah. And based on that $10,000 above asking price, plugging in the numbers into the performance, it still worked like, meaning, like it still made fantastic sense to, to, to buy this property significantly above asking. And that’s one of the strategies that you can employ, employ, as long as you have a way of analyzing a tool to analyze whether you know a good opportunity, a good, a good value.

Could be as high as as $10,000 above asking. Well, what I love about what you just said is that’s kind of unconventional, right? Like right now, people out there buying primary residences in Utah, they may be throwing 40 or 50 grand above asking press. Cuz they’re like, I wanna get a house. Right? It’s, it’s total like fomo.

They’re afraid they’re gonna miss out, they’re not gonna be able to get a house. They’ve got the capital. Like whatever it takes, let’s get into it. And what you’re saying is if we are gonna go above asking. We aren’t just doing that so that we can get the deal cuz we gotta get it. But we’re going, Well wait a second.

If we go above asking price, it’s still gonna cash flow. It’s still gonna appreciate, it’s still gonna meet our expectations and hit our numbers. So does it matter what the purchase price is? If it’s gonna hit the targets and it’s gonna hit the numbers. Cuz at the end of the day, what else matters? We did an episode.

I don’t know. It feels like ages ago, it was probably just a couple months, but on the most important number in real estate being, what is that annualized return? If you take a look at everything that property’s gonna generate for you, right? And, and if that’s gonna be substantial and significant, then.

Does it matter how much you buy the property for? Well, it matters as long as the numbers work and it’s gonna be profitable. It’s not just a function of I gotta get in, so I’m gonna a, I’m gonna offer way above asking so that I can get this thing and I’m only counting on appreciation cuz that’s what some people are doing.

They’re just banking on appreciation. Which is fine. We love appreciation, but we wanna take a look at it and say, Well, we also want some cash flow cushion and we just wanna make sure that the numbers work and the proforma helps us do that. Yeah. It’s gotta be our basic minimum criteria. Right. And at a higher purchase price.

If it still does, then that’s awesome. However, there are some unintended consequences of of going to a higher purchase price. One of those is that your total out of pocket is going to go up, so you know, a higher purchase. Higher down payment, right in the form of, you know, dollars that you have to come to the table.

You know, the percentage of the down payment remains constant, but a higher purchase price equals a higher out of pocket cost. Now, there’s another thing, another unintended consequence, and that is the appraisal world typically is not keeping up with the increase in prices, and that’s to be expected because they base their values, appraise value on historical data.

So it’s hard for them to justify and they’re very closely scrutinized. And so, you know, this industry has to fall within certain standards. And so if you’re offering above purchase price, there’s a good chance that the home’s not going to appraise. And so here’s part of the issue is that if it doesn’t appraise, the bank’s not gonna loan above appraise value, which means you’re gonna have to come to the table with a difference, right between.

Appraised value and actual purchase price. So that’s something that you have to take into consideration, and this is another negotiating strategy that you need to do up front. If you’re gonna offer above asking price, you need to pre-negotiate with the seller how much above appraisal you are willing to go.

So for example, if you have a home, it’s listed at 200,000, you’re willing to offer 210,000. The appraisal might come in only at 200,000, or it might come in even lower than that. So let’s say that it comes in you, you offer two 10, but it comes in at 200. Well, you’ve gotta pre-negotiate your ability and what you’re willing to go above appraisal.

Because if you can only come to the table with a certain amount of extra cash, then that’s gotta be your, to your, your max, right? That you’re able to come above asking. So let’s say that you’re willing to, to. $5,000 above appraised value. You offer two 10, appraisal comes in at 200, you’re willing to come in $5,000 above appraisal.

That means you’re willing to go up to 2 0 5. Right? Because and maybe that’s cuz you’re, you’re limited with the amount of extra cash that you have to come to the table with. So you have to pre-negotiate that with the seller and the seller’s agent. Um, but here’s the interesting and maybe kind of cool thing, and I’m, I’m speaking from experience cuz that’s exactly what happened to.

I came in above asking price, but was willing to come in X number of dollars above appraisal. And so at the end of the day, and this is just an example, these aren’t the exact numbers, that was my scenario. But if I offer two 10 asking was 200, appraisal comes in at 2 0 5, I’m willing to come in 5,000.

Above asking. That means that actually here’s, here’s what’s kind of cool is that although I offered two. I prenegotiated the above appraised value, which means I got the, the home for 2 0 5. So in my mind I’m thinking I got a $5,000 discount on this home, but the seller’s thinking I got 5,000 above. Yeah, I mean, talk about a win-win scenario.

Totally. Right. That’s right for for both parties. So it was pretty cool. And so at the end of the day, what an awesome investment, even though. I paid above asking. So those are some negoti that’s, that’s a very important negotiating that is good strategy that you need to be thinking about and talking to your agent or whoever’s helping you do the deal.

You need to, to, to have that all solidified, uh, ahead of time. And you know what, hey, listen. If you are buying real estate with done for your real estate, we love you. Thank you. If you’re buying real estate outside of done for your real estate, that’s totally cool, but you should be having these conversations.

With your buying agents, right? They should be well aware of what it’s gonna take to win deals, right? It shouldn’t just be a throw spaghetti against the wall and I’m gonna offer what I offer cuz I got the cash sitting around. They should have a really clear idea of what it’s gonna take to win deals right now and what is a historically tight market.

And so for us, We’ve got these relationships with builders and agents. We’ve got these negotiating tactics like the one you just very articulately explained. That’s awesome, right? To, to utilize asking price appraised value, so on and so forth, to kind of think about that and what you’re offering. And then having the proforma so that we’ve got a mathematical, analytical, data driven approach to, is this property gonna make sense and what I offer?

Is that gonna make sense? And that’s super critical. Just to throw in just real quick, Yeah. Having a tool to analyze the property from, from a numbers perspective, all the way from the property taxes to, uh, property management costs. To, um, insurance costs and so on. So you can take a look and see is this property gonna perform?

Is it gonna cash flow, even though I’m asking above. And what’s really neat is to see how high could I actually go before actually even making the offer. Yeah. So that, so, you know, it’s like, man, they’re asking 200,000, but I legit, I could go based on what rent’s gonna be. And this is one of the other relationship things, is having real time information from a property manager who is accountable.

Manage that property prior to making the offer so that, you know, before going into the offer what that home is actually going to rent for. Yeah. So, so that, that’s kind of a key thing. If you’ve got that relationship and you have confidence in their ability to, to really nail that, that rent price down prior to making the offer, because rents have been going up as well.

So if they can give you a. Accurate rent price, maybe you could actually offer even a little bit higher, which makes your offer stronger and more likely that you’re gonna get the property while not putting yourself at risk thinking, man, if I go too high and I can’t get the rent, then I’m not gonna cash flow, then I’m gonna be in real trouble.

Right. That’s huge. So, So look at this. So, You’ve got the relationship with a lender. If you’re using financing, who knows that you’re well qualified, fully documented, and preapproved. You’ve got a relationship with an agent who may also have the relationship like we do with these builders so that we can negotiate the deal properly and know what negotiation tactics to utilize, and then a relationship with the property manager so you have a really accurate depiction of what that property’s gonna rent for so that you know how that’s gonna play into your numbers.

And then if you’ve got a proforma and a set of. That gives you the key target. Of what you’re looking for, whether that’s, you know, and look, everybody looks at returns differently and different people think different numbers matter more, right? We know what our numbers are, right? We know based on historical performance and, and what, probably nearly 4,000 transactions or something like that.

At this point, we kind of know what those numbers need to be and so we can look at that. So it’s relationships with individuals. It’s relationships also with the kind of information that can empower you to make decisions that mean you are a well qualified, well prepared buyer. And that’s, that’s really critical, right?

I think that sometimes well and well educated, so you know what Well educated Yeah. What to offer. Both so that it’s a relevant offer and also so that it’s also an offer that strategically makes sense for a property that, that that’s gonna be part of your portfolio. That’s right. So what, what a cool approach to take.

Right? So guys, the reason we wanted to jump on and do this episode is because we are getting the questions all the time. What does it take to win deals in this historically tight market? And so the, the main, if we could sum it up in one word, is, is relationships. Oh, Do you, What else are you gonna say, Kev, before you summarize, I gotta add just one, one more.

That is key to winning deals in this current market. And that is determination, perseverance, and patience. Oh yeah. Because you’re not gonna, you simply, unless you just get really lucky, you’re not gonna get the first deal that you make an offer on. In terms of timeframe. What, what we’re telling our clients now is be prepared to be in search mode for 30 to 60 days.

I’m familiar with, with, with some really good friends of ours who, who do something similar. They’re telling their clients and they have been telling them for for many months. To, to, to be prepared to wait for six months. Yeah. Wow. For property, you know, we’re 30 to 60 days. And so in terms of just once you start that searching process, be patient and be determined and stay on it, because you’ve gotta be constantly making those offers and working with your, with our agents in the markets to find that property that’s gonna work.

And then to actually win the contract. Uh, you may make. Dozens of offers before you actually get one. So it takes that perseverance, determination, and patience. That’s the other thing that you, that’s need in order to win, to win deals in today’s market. That’s critically important. And if I could just pile on there, it means maintaining a positive attitude throughout the process.

If you’ve ever read the book mindset, you know, mindset talks about the, you know, the expansion mindset versus kind of the limiting mindset. Have a positive and expansive mindset. So you. That, Hey, if I don’t win the first one, another one’s coming. You know, I always look at it like this. When one door closes, I always think that’s cuz God just opened up a much bigger door right behind me and I just gotta turn around to find it.

Maybe I can’t see it yet, but it’s opening currently and so keep a positive mental attitude as you’re going through this. I had a, I had a mentor once. He was actually a church leader and he used a phrase one time and I had it written on my mirror for a long. And you know, it’s just, I’ll never forget it, he, I don’t even think it was necessarily a philosophy he lived by, but he just said this and I was like, Whoa, that’s really good.

He said, Be anxiously patient. And what I love about that is it means, the anxious part isn’t like anxiety and depression. It’s like, be anxious, like by, like, you’re, you’re excited and there’s so it’s a urgency. Energy. There’s urgency, but patience. So, so the patience comes in, in realizing patience is gonna be required, but don’t let off the gas.

Right? You should stay focused and, uh, and stay hungry. And keep a positive attitude and realize if the first deal didn’t happen, if the put out offers on three and you lost on all of ’em, the next one might be the one. And if you can think of it in those terms, being anxiously patient. Keeping a positive attitude and like you said, realizing that it may take some time.

Just know that going into it right now. And then you add that to the idea of you gotta have folks that have relationships so they know how to negotiate, so they have relationships with sellers or builders. And then knowing that you’ve gotta have numbers in a performant, it’s gotta be this principle, virtue based capitalist approach that you’re taking to the analytics and to the data.

You throw all that together and say, Okay, this. And by the way, none of that sounds easy. You know, like as I was just saying it, I’m like, Oh my gosh, I would feel so dang overwhelmed if I was just trying to figure this out on my own, right? If I listened to this podcast and I was like, Cool, I’m gonna go buy real estate and I’m gonna keep a positive attitude, be actually engaged, and then go build a relationship and then go find a builder and then go find a seller and then, you know, make sure I’ve got a performer, then make sure I’ve got a good property manager.

They can gimme a number. I’d be like, holy. And so the beauty of that is just piggyback us. I mean that’s, we’ve spent years building this and if it’s not us, find somebody that’s a good fit for you. But there’s no reason for you if you have that attitude, if you understand it’s gonna take some time. If you understand the current environment, there’s no reason that you have to go and reinvent the wheel and go figure it all out on your own.

Cuz there’s folks out there who already have, Right? Yeah. Love. It’s so true in today’s world based on technology, getting rid of the concept, geography is out the window. We don’t have to worry about where we buy a property anymore. We can buy from a distance and, and taking advantage of those who have gone and done it.

It really is pretty, pretty huge when you think about it. Yeah. It really is. And with, with the ability to communicate the way we have today, it’s not, it’s not the old world anymore. Yeah. And, and this, our business could not have exist. Even 20 years ago. Yeah. Right. It just couldn’t have because, uh, just the communication, the technology of communication just did not exist like it does today, which really facilitates everything.

So take advantage of, of what we have in today’s, you know, environment. It’s really incredibly awesome. So I, I agree. You don’t have to do everything yourself, you can take advantage of, of others. And of course we, we think that we’re, you know, one of the best in the business. Yeah. I think we’re the best in the business.

Okay. But yeah, I’ll go that. We’ll go with one. I’ll go with that. Well guys, thank you so much for tuning in. We love you. And so, my goodness, every week, Steve, I just hear from people that say, Oh, I’ve been listening to the podcast episodes. Oh, I’ve listened to all of ’em. If you’re one of those out there, thank you.

From the bottom of our hearts, you know, our podcast is growing. We’re seeing more and more downloads every week, and that’s cuz of you if you’re listening, It’s cuz of. Our gratitude is never ending for you. Thank you for listening. Thank you for sharing. Please continue to do so. Go to the Apple iTune store rate and review and subscribe.

If you haven’t or follow us, uh, you can also go check out our new podcast page. So if you go to d fy dash real estate.com/listen, we’ve got like our top six episodes on there. We’ve got our most recent episodes, We’ve got our foundational episodes. It’s a great way to consume the podcaster, to share it with others.

And we’ve got easy subscribe buttons to all the most popular. Podcasting platforms right there. So go check that out. And we love you and we’re so thankful for you, and we hope you have an awesome week. Bye bye everybody. Take care. Thanks for joining us on Replace Your Income with Kevin and Steve. Do you wanna learn more about our company done for you real estate and to see if you qualify right now today to begin replacing your.

Simple and conservative real estate investing done for you. Visit DFY intro.com. Click the orange button, watch our super quick webinar, and fill out the little form on the right side of the page. You’ll know within 60 seconds if you qualify to begin replacing your income. Right away. As always, please rate, review and share the podcast with friends and family.

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