April 22, 2018

JF1328: How To Sell Your Property Quickly For A High Price #SkillSetSunday with Jayden Pudney

Today we have one of the youngest wholesalers actively closing deals in the country on the show. Jayden may be young but he has a ton of knowledge and experience already. A lot of what is covered today is focused on finding deals, finding buyers, and closing deals for wholesaling. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

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Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluffy stuff.

Today is Sunday. First off, I hope you’re having a best ever Sunday… Because it’s Sunday, we’ve got a special segment for you called Skillset Sunday. The skillset that you will learn or hone today is how to sell your property quickly and for a very high price.

With us today we’ve got Jayden Pudney, who is gonna walk us through and talk to us about that. How are you doing, Jayden?

Jayden Pudney: I’m doing good, Joe. How are you?

Joe Fairless: I’m doing well, and nice to have you back on the show. Best Ever listeners, you can hear Jayden’s best ever advice – episode #641, titled “How one of the youngest guests on the show closed his first deal in high school.” Very intriguing.

Jayden is the author of the “The $8,000 Phone Call.” He is the youngest wholesaler in Arizona – perhaps you were… It’s been a while since we talked. You’re based in Phoenix, Arizona, you’re a wholesaler and an investor, so talk to us about selling. What should we know about how to get the highest and quickest sale of our property?

Jayden Pudney: Well, I think what it really comes down to is knowing your buyers and knowing the area. I think if you know what your buyers can pay for a certain property, whether it be a single-family residence, a multifamily or a land deal, I think that’s really gonna narrow down what you could sell for and hone down on what you could sell the next properties for.

Joe Fairless: That makes sense. So what research do you do to know the buyers? Then we’ll go into the area.

Jayden Pudney: For a lot of our buyers, typically in Arizona, we [unintelligible [00:02:19].29] continuous buyers – we work with the same buyers – but we do find a lot of different buyers when we do send out a property. So we’ll send one out, and if we know the area very well, we know who’s gonna buy it, but if it’s a new area or a not so nice area, we will skip trace by the area, by LLC, and we will find them that way, to know who’s buying in the area.

Joe Fairless: When you skip trace – first off, for anyone not familiar with skip tracing, what is it?

Jayden Pudney: Skiptracing is a service you use to find the address and phone number and typically a little bit more information on a person that you wanna look up… Or you can find an LLC’s information as well.

Joe Fairless: Okay. What service do you use to skip trace?

Jayden Pudney: We use one of the more typical ones, TLO.

Joe Fairless: What is it?

Jayden Pudney: TLO.

Joe Fairless: TLO, right? Is that what you said?

Jayden Pudney: Yeah, that’s a very common service.

Joe Fairless: Approximately how much does that cost?

Jayden Pudney: On the level we do it now, we pay 40-50 cents for every person that we skip trace. On a more uncommon level, like somebody who just wants to skip trace a few people, it’s gonna cost you about a dollar a person.

Joe Fairless: Okay. Once you get their address, their phone number — first off, who do you determine you’re going to skip trace to get information?

Jayden Pudney: If we do lock up a 3-bedroom 2-bath in an area, say it’s a brick-built home, what we’re gonna do is we’re gonna look at other similar properties that sold in the area; say an LLC just bought one similar, that’s a 3-bedroom 2-bath brick style home, and they bought it for 80k, and we just picked up one for 60k… And I drive by and I see the property and I see that they bought in a similar condition and they’re remodeling it, what we’ll do is we’ll skip trace that LLC, find the owner of the LLC/corporation, and we’ll just give them our pitch on another property nearby.

Joe Fairless: What’s your pitch? On the surface, I don’t think there needs to even be a pitch, right? Because you’re giving them a really good deal… But I’m just curious, what do you say to them?

Jayden Pudney: A lot of them are curious on like — because they’re doing a remodel in the area and they’re curious “Why is this person calling me?” and a lot of them are surprised by the fact that you take initiative and you actually reach out to buyers that bought in the area… Because sometimes it’s like a big corporation that buys homes and flips them, or it’s just a mom and pop kind of business that buy them.

Joe Fairless: Okay. You just tell them, “Hey, I’ve got a deal close by. It’s for this much. Do you wanna buy it?” Is that basically it?

Jayden Pudney: Basically yes, but if you wanna go more [unintelligible [00:04:40].24] perspective, you can say “Hey, I noticed you bought 123 Main Street, and I’ve actually got one down the street from Main Street just like it” and we just kind of pitch them on the idea that it’s perfect for their next flip.

Joe Fairless: Yeah, that’s a very effective way of doing it. What about from a negotiations standpoint? Because part of this is how do we sell quickly and at a high price that makes sense for you. So if they were to push back on the numbers, how do you approach that?

Jayden Pudney: Typically, when we do lock in a property we’re pretty dead set on our numbers, what we lock it up for and what we can sell it for. So if a buyer does come back and say “Hey, I can only do so much”, there’s gonna be some questions on why he only got that number, and if there is a considerable drop, we will explain to them why we think this specific property is worth that.

Joe Fairless: Any common reasons why it’s worth X and not what they think it’s worth that come up?

Jayden Pudney: Typically I would say some of the more common reasons – bricks versus wood-built, years built, and what the style of the home is.

Joe Fairless: Can you elaborate on the style of the home, and how that would vary on price?

Jayden Pudney: If there’s homes selling in the area that look more like a bungalow type property and you have one that looks like a straight shoebox, you’re typically gonna get less for the property because that’s not what the area is selling at and that’s not what people are gonna be buying in the area. They’re gonna want something that looks like the rest of the neighborhood; you really don’t want that oddball property.

Joe Fairless: As far as the area goes, anything else we need to talk about as it relates to the buyers that you can think of?

Jayden Pudney: Not really. If you can find a new buyer, my suggestion to you would be to build the best relationship you can with them. We actually typically send gift baskets and gift cards to all of our buyers that have bought properties from us, and we continue to do so, and they come back for business because they love dealing with us. That’s gonna get you a continuous good buyer relationship.

For most properties now they actually don’t even drive or look inside of our property. They just look at the numbers, they know what it is, and they’re just buying.

Joe Fairless: How much do you invest in a gift basket to an investor?

Jayden Pudney: Honestly, it’s no more than $50 to buy just some sort of gift basket that you can throw together, or a $25 Starbucks gift card.

Joe Fairless: Okay. And you send that to him/her after they closed on a deal with you?

Jayden Pudney: Yeah, and it’s just the same thing we do with our title companies, we take care of them as well. If it’s a smooth, easy transaction, we’ll send them something as well or we’ll send them something every quarter, just to say “Hey, thank you so much for helping us buy and sell the properties. Here’s a little gift basket/gift cards.” That really goes a long way in people appreciating you and continuing to care about you and your business.

Joe Fairless: Now let’s talk about the area. When we started out this conversation, the outcome is to learn how to sell quickly and at a high price… You said in order to do that, you need to know these two things: the buyers who are gonna buy, and the area that the property is in. What research do you do on the area, now that we’ve talked about the buyer?

Jayden Pudney: For Arizona – because that’s our hometown; we all live here, me and my team… We all live here, we know the areas pretty well, we know if we buy in a certain zip code or in a certain side of town, we know the area that it’s gonna be. If it’s more of a C or D, kind of average area, we know what they’re gonna pay for that property, and if it’s a higher class 400k-500k home, we know that we have a smaller list of select buyers that have that much capital, or we’ll just have access to hard money.

Joe Fairless: So based on the area’s price point, which is one of the main things you’re focused on – that determines what buyers you’re gonna reach out to.

Jayden Pudney: Yeah, exactly. If we have a 40k-50k home, it’s gonna raise a lot of interest with a lot of buyers, because one way or another you can raise 40k-50k, plus another 20k for repairs very easily, versus coming up with 400k-500k and 20% down on a hard money.

Joe Fairless: Do you have a different way to approach the buyers who are in the 500k price point versus the 50k?

Jayden Pudney: I would say they’re approximately the same. The way you pitch it is gonna be the same, there’s nothing different. I would say the only thing different is how you deal with sellers. Typically, on smaller, cheaper-priced properties – they’re vacant properties or they’re very distressed, and they wanna get out quickly; it’s either a foreclosure, or they inherited the property.
Typically, properties that are 400k-600k, they tend to know what they’re doing, they know what to expect… Sellers are typically very, very educated.

Joe Fairless: Anything else as it relates to selling quickly and for the highest price that we haven’t talked about that you wanted to bring up?

Jayden Pudney: I would say just knowing the property in and out. Something as small as a less bedroom can really hurt your price point and what you think you can sell it for, because if you come in with the property and it comes up to be smaller, or there are add-ons, or one less bedroom, that can really hurt your purchase price that you bought it for, and that can really hurt your sell side.

Joe Fairless: Tell us a story about a deal that was challenging, but you ended up selling it quickly for a high price.

Jayden Pudney: We did have a property in Nevada, because we do purchase homes in Nevada… This one was specifically in Las Vegas. This one ended up having — it was supposed to have over 1,000 feet extra in permits in add-ons, but once we started to get into it, we realized that the add-ons weren’t there; the lady was unsure of how big her house was, so we had somebody go and measure it. It ended up being just ridiculously much smaller.

That one actually took about two months to get through, because we did have buyers back out, and it was just a big, big mess, but at the end of the day I believe we ended up clearing a $25,000 wholesale.

Joe Fairless: What were some keys to that deal that allowed you to clear that profit?

Jayden Pudney: I think one of the main keys is customer service and providing a service to your seller. We paid [unintelligible [00:10:34].12] we helped her with a moving company, and we did help her move out of the property as well. That’s things that not many other investors are gonna help you do, and that’s kind of what sets us apart.

Joe Fairless: Anything else as it relates to this topic that we haven’t discussed that you wanna bring up?

Jayden Pudney: I think that’s really it.

Joe Fairless: Well, I really appreciate you sharing your thoughts and your experience and your advice for us to get the most out of the properties that we’re selling, and do it in a quick fashion. A couple things that I found really interesting – one is you and the buyer are negotiating back and forth on the price… Take a look at three things – one is brick vs wood build, two is year built, and three is the style of the home, and perhaps come prepared to have talking points on each of those three, so that you can quickly react to their objection with some statistics, number one.

And then the other thing is with the buyers, your approach for proactively finding buyers by looking up who’s bought in that neighborhood a similar property, getting their contact information through skiptracing; you use TLO as a service, about 50 cents a person, or maybe a dollar a person, depending on the volume that you use… And then reach out to them. That truly is the best target audience for that property, and I really appreciate you sharing that with us.

Thanks a lot for being on the show. How can the Best Ever listeners get in touch with you?

Jayden Pudney: They can either get in touch with me through my Facebook, or they can just give me a call. Either one is fine. My phone number is 602-501-2534.

Joe Fairless: Jayden, thank you so much for being on the show. I hope you have a best ever weekend, and we’ll talk to you soon.

Jayden Pudney: Alright, Joe. Thank you so much, I appreciate it.

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