Jason Bramblett Real Estate Show Podcast
Jason: Good morning and welcome to the Jason Bramblett Real Estate Show. Hope everybody is doing awesome. Awesome week. March Madness. It is here. It is ready. It is rolling. It is everywhere. And of course, in Carolina, it is always basketball. Everything is basketball, right? That is barbecue and basketball, man. Although I did get educated last night. It was my daughter's birthday and we went to a restaurant that she loves. And I learned that sweet potatoes were like, that is the North Carolina vegetable of the state or something.
Keith: I did not know that.
Jason: Yeah, clueless, had no idea either. I knew barbecue, obviously. But yeah, sweet potato. She learned that in school and it was something that she learned and I had no idea so we had in celebration, we had sweet potato. So you learned something every day, right?
Keith: I am in trouble then. I do not care for sweet potatoes.
Jason: Yeah. Oh man.
Keith: I like basketball.
Jason: There you go.
Keith: Not as much sweet potatoes.
Jason: It is March madness for basketball and real estate. It is. So when we hear March Madness, basketball, we always know hey, the real estate season is amongst this. It has started. It is rocking and rolling and things are, man, everything is in bloom. So there is lots of new stuff happening. New homes hitting the market every day, which for some of you is like manna from heaven, because there has not been that many to see. Right? And we are in this all-time low inventory crunch and crisis. So we are digging into that. But the other nice thing about March is a lot of times we find people that are looking to make a change. Whether you are in real estate, and maybe you are not enjoying the March Madness like you think you should, and there are not the sales that you believe should be there for you, we would love to talk with you. We are growing, adding new people. We have new offices that we are moving into sometime in the next couple of weeks, I am told, which will be awesome. Putting the final touches on that. We needed more room. We need room to grow and keep adding to our company and our team. Maybe you are not even in real estate, but you have got some sales talent. You enjoy communicating with people, helping people through all kinds of situations good, bad and indifferent. Sometimes in real estate, it would be great if they were all wonderful situations, but we do unfortunately get to deal with the other side of human behavior as well, which can make it for a very, very interesting excuse me career. So there are always really cool things happen in real estate. Hey, it is a fun and exciting business. It is never the same every single day. So I thought, Keith, we would do this. When we had left off last week, we were digging into some of our different marketing and sales plans. So I thought we would just pick up from last week's show. So all the you guys that are listening, but if you did not catch last week's show, you can go to the website, our podcast is up there, you can listen to that to get caught up. But we are just going to break down some of our marketing options.
Keith: Well, you had said this two or three times, I think this situation came up quite a bit last week. You made the comment that if your realtor guarantees that they can sell your home for a certain amount of money that unless they are buying the home, that is not a guarantee. That no one can guarantee you a price if they are not willing to put the check down. Well, if I am not mistaken, it appears that you might be willing to put the check down, you have got the 72-hour deal that I know we touched on a little bit last week. Thinking maybe you could go a little deeper into that.
Jason: Yeah, absolutely. We do have multiple, multiple programs. You guys know we have been doing it for 16 years. We have our guaranteed sales program in which if we do not sell the home, in an agreed upon amount of time, I actually will purchase the home, and I have purchased, I do not have the last count now, but probably very close to approaching 100 houses that we did not sell on time. We did buy them because it was our guarantee. Very, very similar to a corporate relocation program if any of you guys have ever been involved in that. Now our 72-hour offer program is different. Same process, but different step in that we have many, many institutional buyers that we are dealing with. So venture capital companies, private equity companies. How this works is once you sign an agreement with us to sell your home, we are going to look at basically two different options. What we would consider the retail. We will sell the home to the marketplace. They will determine the price. That is the way it works. The market always determines the price and not the real estate agent. Okay? Unless the real estate agent is buying the house; otherwise, it is simply a made-up number.
Keith: Thus the 72-hour program.
Jason: Yes. Exactly. It is for a real estate agent come up with the price is the same made-up number that the owner comes up when they give you a price.
Jason: Yeah, this is the price I want. Well, that is great. But it does not mean anything until we match that up with what, a buyer that is willing to pay that. So the 72-hour offer is essentially that is exactly what we are doing. So we have an agreement, you have given us permission to sell your home. We are going to do that on the open market. And in the meantime, what we will do is we will take it to our investment group. Now the difference is a lot of these venture capital companies that are out here now, you will see them that they will say, hey, we will make an offer on your house, we will buy your house, whatever, and they will and that is a true statement, but they are making an offer. The difference in what we have found that is working better for our clients is we are actually going to our contacts at these venture capital companies. We are actually laying out a process and a system and a plan for them with your house with the price that you want for the house. One thing it does is it turns the process much quicker. So essentially, we are going to them and saying, hey, this is the product, this is all the great things and here are the issues if there are any, whatever. We were very transparent, because we do not want that number to change. So they need to know exactly what they are buying good, bad, indifferent. And this way, we are taking your number to them. If that number is a no to them, then okay, that option is off the table, and then we proceed forward at what, we are not stopping anything anyway. We may have at the same exact time offers from the general public through our traditional sales process, and venture capital offers as well for you to take a look at. We want to do that as quickly as we possibly can. We are turning these things around in 72 hours from the time that we get them submitted to those to those companies. The biggest difference is though is in the process. We are taking it to them as a package as just like, these are Wall Street companies. This is what they are used to, right? When they look at buying a company, there is a portfolio that they look at. It has all the company's assets, liabilities, the P&L statements, who are the key players. Right? That is how Wall Street operates. So we have created a package in which is basically the exact same thing. Here is the portfolio of this house, here are the sellers here, this is what they want as far as terms and price. This is the condition of the offer. And these are the terms as far as the timeframe. Right? So we are speaking their language to them, which makes that process go tremendously quicker. Then normally the process outside of that is they make an offer on your home. It is just a made-up number because they have never seen your house. They send a representative to your house to do an inspection and check it out. And then based on what that report states, that number changes, right? Because the condition is not what they thought. It is like telling a story. But yet, it is hard to relate to Disney World, and explaining it and all of its all verbally unless you have been there.
Keith: You got to see.
Jason: Yeah, you have got to see it. It is the same thing with the house. We can talk about the price and the numbers and all these things all we want all day long. And that is what these venture capital companies will do. But yet when they see it, 90 times out of 100 we see that number change, and we get a lot of those phone calls. So folks have started down the road with well we wanted to try this but we got a number we really liked, and then they sent somebody out to the house, and then now they came back and they want it for $30,000 less. Well, how much time did we waste? Months? Right and it is back and forth and back and forth when if the right presentation and package had been delivered to them from the very beginning with every single thing is right wrong about the house, that number would have come much quicker, you would have known it was $30,000 or less from the beginning. And you would have known it was not even an option that you were willing to consider. And you could have just moved on in three days as opposed to three months or two months or however long it took. Right?
Keith: But you said, now correct me if I am wrong, you said that the processes they happen together so you can be going down this 72-hour deal and trying to work with the capitalists and everything, but also still showing the home and everything, so you have got kind of two different avenues to get your home sold faster.
Jason: Absolutely. It is not one or the other.
Keith: That is great.
Jason: It is a both at the same time process. Right? Sometimes those numbers just make sense for the owner like, yeah, if this is exactly what they are going to do, then let's move forward. This makes sense. We do not have to the show the house anymore. Now we can move. We know the date we are going to move. We have everything that we need to know. Now I will tell you that generally the free market is going to pay more. These companies are not bailout companies.
Jason: And they are not a nonprofit. Okay. I have so many people call that went the other way, and they got their offer and they were frustrated, like, well, they did not want to give me anything for my house. It is not a bailout. Just because that is what you owe does not mean that is what they are going to pay. Right? It would be great if it was that way. But that is not reality, right? You know this from owning cars. 90% of the public when they trade in a car, they are upside down. Now, the difference in cars versus real estate is a car will let you roll your negative equity to your next purchase. Real estate they will not allow you to do that. But most of you guys realize this from how you have done transitions with cars. You have always taken less than what is owed unless you paid cash for your car, typically. But most people do roll negative equity over because it depreciates so much faster than you are paying on it. Right? Especially when you stretch out the term for as long as some of these companies. Some of these cars are going to be end up financed as long as houses it looks.
Keith: It is getting there.
Jason: It is kind of crazy. So there is a huge difference in communication. It is just like if you are speaking a foreign language, you need to know the language, right, to be able to communicate. If you go to a Spanish-speaking country, and you do not speak Spanish, well, you can survive. But it is not a great experience when you cannot communicate, right?
Keith: It would be tough.
Jason: It is the same thing that we are seeing with these venture capital companies. The owner and the company are not on the same page. They are not communicating. Why? It is a foreign language. What we have done is put it together and figure that out. Now we have got this portfolio. We know how to speak with the owners and the clients. We have been doing that for 22 years. And now we have learned how to communicate properly with the venture capitals and the private equity companies so that they know exactly what it is they are buying up front. There is not this feel of bait and switch. It is not a bait and switch. It is just they did not know anything about your house. And then they found out stuff about your house and all of a sudden it was not frickin’ Disneyland, right?
Keith: Yeah, it is just numbers to them.
Jason: It is just math.
Keith: To you, it is emotion. To them, it is just numbers.
Jason: 100%. It is 100% emotion driven, which part of the part of the issue. Right? Look, at the end of the day, think about this. It does not take any skill at all to sell your home for the lowest price. Right? Owners have really been doing a really good job of that.
Keith: I can do that.
Jason: Yeah, all the time I have been in real estate, I know you for sale by owner folks do not like to hear this. But it is true. It is been proven for decades and for many, many industries, way outside of real estate that run all these tables and these graphs. And for four decades, those numbers have not changed. Period. Owners sell their home cheaper than hiring real estate agents all the time. Every single day it happens. Actually, an average of 16% below market is actually what that ends up being. Why do you think Wall Street is in this space? Duh. They are not stupid.
Keith: Yeah, they are not in it to lose money.
Jason: They are looking these graphs going, huh? We could actually save 16% if we just bought these things from these owners that do not know what they are doing. Yeah, we could probably make those numbers work. Right.
Jason: This is not rocket science. It is math as Keith said. That is exactly what they have done now. Now they have hit the street, the internet obviously has allowed them to put the right information in front of people quicker. Before it made no sense because it would have been national TV ads and radio and billboards and all these things that, yeah, okay. You could do, but it sucks up a lot of that 16% market share, where the internet is significantly cheaper. You can reach a targeted specific audience faster. And also word of mouth travels much quicker. Billboard to billboard, not so much word of mouth; Facebook, tons of word of mouth.
Keith: Yeah, pretty quick.
Jason: Yeah, pretty quick. Like let me just go in any chat room and drop a bomb in there that you feel pretty confident it is going to be a disagreement with most of the people and see what kind of reaction you are going to get, right?
Keith: Wake up in the morning to a slew.
Jason: Word travels very, very, very quick on that. So they know that they can get the homes cheaper from the owner. And look, these people know. Some of these people are the smartest people in the country. These are not dummies running these companies. Some of these companies’ valuations are in the billions, okay? They are not in business to lose, right? That is the game that they are in. You have to know that up front. That model works. But what I found what works better for our clients is taking the right type of portfolio, the right type of information to them. And we have created a system that leverages that. Now we are speaking the language to the private equity and venture capital of which they are used to hearing. So we are speaking their love language to them which is money and numbers and transparency, right? So that they know what they are getting into, which makes a huge, huge, huge difference. So it really comes back to its mindset, right? And you have got to have the right mindset to deal with each group of people that you are dealing with and walk them through the good, the bad, and the pitfalls of all that stuff. So, lots of things and then of course, we are going to talk a little bit about the illusion of what you are actually saving as well. So we are going to do is we are going to go pay some bills because we do radio, TV and advertising on billboards, so we are going to go pay some bills. We will be back in just a minute. You are listening to the Jason Bramblett Real Estate Show.
We are back. You are listening to the Jason Bramblett Real Estate Show. So before the break, we were digging into some of the systems and processes that we have. We touched on our 72-hour program. I mentioned our guaranteed sales program. We have been running that for 16 years now. It is a process in which I actually do make an offer on your home, I do guarantee the sales price. And if we do not sell it in a timeframe in which we agree, then I do purchase the home and we have purchased, I do not know, getting very close to 100 houses under that system. It is not a system for everybody. But it is a system that when you are probably moving to California, and you are not coming back, and you definitely want the house sold, it is a phenomenal system for folks like that, or you just do not want to be stuck in two mortgages. I did corporate relocation for 10 years. It is modeled very much after that. It is a great process. So if you never want to get stuck in a two mortgage situation, or maybe you already are stuck in a two mortgage situation, our guaranteed sales process and system could be a perfect fit for you.
Keith: With more large companies and as we talked, we are not talking about little tiny companies. We are talking about some of the biggest companies in the world, billions of dollars getting into buying these homes and making a profit here. If you are for sale by owner and you are trying to, what makes you think that you are going to get one over on literally the biggest, most profitable company in the world, that would seem unlikely.
Jason: Yeah, right. Yeah, for sure. Some of it is the old magic trick, right? Smoke and Mirrors, baby. Yeah. There is a reason why it is not just Las Vegas, lights and stuff like that. Right?
Keith: I was going to say I have a much better chance beating the house than I do probably beating a billion-dollar corporation.
Jason: I do not disagree. I do not disagree. Magic is said to work because you get the human mind to focus on something outside of what, the trick, the illusion that you are actually doing. Right? And that is really exactly what these folks have done. So the owner is so focused on not paying real estate commission that the trick is right in front of them and they do not even see it. Right? And because they get them focused on one thing and one thing only, and then they are missing all the other stuff. This is why statistically we see people that sell their homes by owner sell far, far cheaper than they ever would in the marketplace. And they also use this other great motivator called ego. Yeah, that one there.
Keith: It happened.
Jason: It does. Well, it goes back to the emotion, right, because you can thump your chest and say, man, I sold my house myself, and I did not pay that stinking real estate agent. I am a winner.
Keith: And I did it in six days. Yeah, I got 30 grand less four.
Jason: Yes, exactly. Yeah. Sometimes it definitely does work out that way. And I am sure many of you can give me all your great success stories. And how you became a billionaire by saving your real estate commission. I know that is how Warren Buffett got started with Berkshire Hathaway. He said gosh, if I could just sell my own house myself and save 14,000 bucks, surely I will become one of the world's richest men. Right? That was his seed money. I am sure.
Keith: I read that somewhere.
Jason: Yeah, I am sure it was it his first book, right? But that is what they do. They convince the owner. They use that ego. They use that play of saving commission and like they are winning this battle. But here is the thing. It is the mind game, right, and they are very good at playing that. A lot of their advertisements are geared that way, a lot of their paperwork is geared that way, but we have to peel that onion back and look at the core and look at that. But like Vegas, right? Think about it. I knowvsome of you guys will argue with me until Jesus comes back about you go to Vegas, and you always win. I know. It is just like everybody in prison did not do it. Right? Yeah, right. And but here is the deal. I am assuming you go there and win all the time, but that is the reason your house is the same size as their Hotel Casino. Right? Yeah. When you look at the price of real estate on the Vegas strip. I do not know the exact number. A long time ago, I heard a statistic that the dirt was selling for $50,000 a square foot.
Keith: It is not cheap.
Jason: And you think about, okay, those hotels are on acres.
Keith: Oh, yeah.
Jason: There are a lot of square feet and an acre like 43,000 plus. Right?
Keith: And the Bellagio is not just dirt.
Jason: That is exactly right. Yes.
Keith: There is something on that dirt.
Jason: Exactly. So, look, if everybody was going to Vegas and winning, you would drive up the Vegas and it would be a tent on the side of the road with a card table playing Three Card Monte right? That is not real attractive and that does not get people there. But think about it. What do they do? It is noises and lights.
Keith: The promise of something.
Jason: The promise, the hope, and the ego of beating and winning. Right? And that is the same psychological thing that these really, really smart companies are doing with venture capital and private equity. They are using that ego to their advantage, and they are winning more often than they are losing. They are winning at your expense. So let's stop that. And let's not do that. And we have a system in which we can get your portfolio put in front of the right people at these companies so that they can make a quick decision. Turn it around fast within 72 hours, assuming that you can give us all the information that we need, and we can get it quickly to them. And here is the thing. It is not the only option. It is one option that we have, and we run them simultaneously. Our goal is to get you the most money in the shortest amount of time. So to get more information about all of our systems, all of our process, go to Jason Bramblett dot com. Or you can call the office 553-0796. Until then, let March be madness. And we will see you next week. Right? You are on the Jason Bramblett Real Estate Show.