Flipping America 574, Buying with Privy

By on February 1st, 2023 in Podcast

podcast 574 Buying with Privy

Opening:

What if I told you that you can use one software tool and buy 12 profitable deals next year that are listed on the MLS? It’s true because one guy did it this PAST year and next year is only going to get better.  Learn more in just a moment on today’s episode.

Benson Juarez is the Marketing Director and one of the owners of Privy Software. I like him and check in with him from time to time just to see what he’s doing. I was in for a surprise. When I called him the other day he told me that he had temporarily relocated from his home in Denver to St. Louis to, using his own words, “practice what he was preaching.” He decided to demonstrate live and in person how to build a real estate business using Privy software as the only deal sourcing tool. 

He used Privy to select St. Louis, went over and set up shop, and did 12 deals in one year. I told him we needed to record that conversation so we did – and it’s coming up.  

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Quote of the Day

Today’s Michael Scott Quote:

“And I’m optimistic because every day I get a little more desperate.”

Expected Air Date: Mon 12/19/22

Guest: Benson Juarez

Transcript

[0:00] What if I told you you could use one software tool and buy 12 profitable deals next year that are listed on the MLS? I know it’s true because one guy did it this past year and next year is only going to get better Learn more in just a moment on today’s episode.

[0:15] Music.

[0:30] Episode.

[0:35] Music.

[1:06] We’re just glad that you’re here. Thank you so much. We want to hear from you, and I’ll tell you how in just a moment.

Benson Juarez is the marketing director and one of the owners of Privy Software.

I’ve known this guy for years. I like him and I check in with him from time to time just to see what he’s doing. I called him a week or so ago and boy was I in for a surprise.

He told me that he had temporarily relocated from his home in Denver to St. Louis, Missouri, using his own words to practice what he preached.

He decided to, and he’s going to explain this in a few minutes because as I was talking to him, I said, man, I got to turn on the recorder here and talk to you about this.

He decided to demonstrate live and in person how to build a real estate business using privy software as the only deal sourcing tool.

You know, I’ve got a book on Amazon right now called Fantastic Deals and How to Find Them. Shameless plug. It’s only $4.99 on Kindle. Maybe $3.99. I don’t even remember.

[2:11] You can get it on Kindle. You can get the small paperback. It gives you 10 or 15 ways that you can go out and develop deal flow.

He used only Privy. He used the Privy tool, first of all, when he was sitting in Denver, he looked around thinking about where he was gonna go, and he used privy to select St. Louis.

Then he went over to St. Louis, set up shop, and did 12 deals in 2022.

So I told him we need to record that conversation, and we did, and it’s coming up in just a minute. Hey, wherever you’re listening to us right now, if you’re listening on one of the podcast platforms, again, we thank you, but please, please subscribe to us.

[2:53] Wherever the subscribe button is, and if there’s a like button there, please hit that. if you appreciate what we’re doing and what we’re bringing to you, every one of those subscriptions and likes helps us get a little noticed by a few other people.

And would you do one other thing for me, please?

[3:11] Tell a friend about the show. And I’m realistic enough to know that no one listens to every single show that we make. That’s why every show we make, we do our best to make it a show that, if you only ever heard it one time, you’d get some really helpful information.

You can always find us on social media on Facebook, facebook.com slash Flipping America media, and then Twitter and Instagram at Flipping America, youtube.com slash Flipping America. Please please like and subscribe over there.

We’re relatively new on YouTube, and we’re just really starting to get some traction there.

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Now, if you call during business hours, someone is gonna answer the phone. And if you just wanna leave a message or a question for the show, they can transfer you or they can talk to you right then and take your question down, we will get you an answer.

Now that’s nine to, nine a.m. to six p.m. Eastern time in the United States. If you call it some other time, just hit extension one and you can leave your message or question.

Okay, that’s 877-557-6437, 877-55-ROGER.

[4:31] Okay, now you can also, if you want to get our weekly newsletter, it’s free and we don’t try to sell you anything in the newsletter. It’s just information. It’s a five to seven minute read. And it’s called the WIT.

And WIT stands for whatever it takes. It has the week’s real estate and flipping American news, an investing tip, a joke, and a blessing.

It’s usually about a seven minute read.

And it has some optional links. We’ll link the shows that we’ve done recently and YouTube videos and other media appearances we may have done. And all of that is in the weekly WIT.

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Or you can text the word WIT, W-I-T, to 205-858-FLIP,

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[5:32] All right, I took a call yesterday afternoon from my business mentor, and he wanted to catch up and see what was going on.

And so I launched into an update on all of the projects that we were working on, and the next thing you know, an hour had passed.

I’m telling you that to tell you there are a lot of things coming, and it’s pretty exciting stuff.

You know, if you were to be able to meet my wife one day, and what a privilege that would be for you, right, to meet Diana, she is amazing, but she’s also pretty shy, so it’s not likely you’re gonna meet her.

But if you met her, she would tell you that I am a pretty even-keeled guy, and when I’m rootin’ hard for my football team to win the game, if they do something great, I’ll go, wow, that’s cool.

Really, that’s about as loud as I ever get.

I don’t yell at the TV, I’m not a shouter and screamer, and I’m not a jumping up and down kind of guy.

So hear me when I say, I am stoked about what’s coming in 2023 from Flipping America.

The team and the people that are continually brought.

[6:48] Into our life and our sphere and the ideas that the people on the team have,

and what’s going on with the production of the show and what’s likely to happen with YouTube,

and the whole video thing.

Oh my goodness. And I can’t tell you the details yet because no firm commitments have been made, but we are having conversations about a new TV show for 2023.

So stay tuned and as soon as I can tell you I will, I’ll probably already told you more than I should, but it is exciting. 2023 is gonna be great. Now is 2023 going to be a year where the real estate market crashes and burns?

[7:31] We’re gonna, we are gonna get to that and do a show on that, but the answer is no. All right? I would say just trust me, but instead of trusting me, don’t trust.

When you see a video on YouTube, don’t just automatically trust that the person knows what they’re talking about. I watched one the other day and I was thinking to myself, okay, who is this person? Wait a minute. The guy never even said his name. You don’t know who’s talking.

He doesn’t appear on the video. He’s talking over charts and graphs, and it’s all about how the market is going to crash in 2023. And a lot of it is based on the fact that Open Door is selling off all of their inventory and bragging about how they’re unloading their inventory quick,

and other hedge funds have slowed down and stopped buying.

Well, if that is your indication that there’s going to be a crash, then there’s something disconnecting in your logic.

[8:32] What’s happening is Open Door, all of the iBuyers and the hedge funds have all come to the stunning realization that their business model is not right, they’re not making money, and they’re not looking like they’re going to make money.

It’s okay. They don’t account for a majority of the homes that are bought. Now the hedge funds are accounting for an increasing percentage of homes that are bought,

but it’s still, it’s not what you think.

There’s still high demand, there’s still relatively low interest rates, which came down in the past month. They didn’t continue climbing up.

Even when they climb to where I think they’re going to land around seven and a half to eight percent sometime next year.

[9:18] That’s going to be the historic average. And one of the things that we know is a lot of people that are in this business now have only been in it since the last five to seven years.

And if you’ve only been paying attention to what’s going on the last five to seven years, you have been looking at a skewed market.

You have been looking at something that is unprecedented because it followed an unprecedented drop in real estate values, this is not a regular occurrence.

And it’s not likely to happen. What happened in 2007 and 2008 is not likely to happen again in our lifetimes. It’s really that rare.

And so when you see someone saying that it’s going to happen again or it’s going to be worse in 2008, you should automatically distrust.

And then if you know anything about logic, if you know anything about the use of statistics, then you will know that these guys are talking out of their hat.

They’re just getting clicks. And they’re getting a lot of clicks because the sky is falling kind of videos, as I’ve said before, always get a lot of clicks.

[10:32] But we’ve got the data to suggest that although we’re due for a correction, it’s not going to crash.

[10:40] Okay, now more about that later on. Right now, I want to bring to you just a couple of news things. Interesting article on Mashvisor about the coming market correction in 2023.

The link to it is in the notes, which will be posted on the website, FlippingAmerica.net. According to this Mashvisor article, or if you go to Mashvisor, you can find it yourself.

According to the Mashvisor article, which is in the context of this article about market correction. They have a list of the best long-term rental markets for 2023. I thought I would share them with you here. According to Mash Visor, they are.

I don’t know if I’m saying this right. Waxahachie, Texas, Melbourne, Florida, Morrisville, North Carolina, Buckeye, Arizona, and Palm Harbor, Florida. Now, those are according to,

and I appreciate some things about Mashvisor. They do some research, and they explain their basis for their choices, and I happen to like these choices.

Unlike that report I referred to last time where somebody said that Green Bay was one of the best places in America to live, I don’t know what their standards were.

[12:02] You know, nothing against Green Bay, and I root for the Packers usually, but I don’t want to live there because I don’t want six, seven months of wintertime.

[12:11] That’s just me. All right, according to that same article, here are the best markets for short-term rentals in 2023. And a couple of these really surprised me. North College Hill, Ohio. Midway Park, North Carolina.

[12:26] Rockford, Illinois. And Rockford’s not that much of a stretch. North College Hill, Ohio, I don’t know where that came from. But Syracuse, New York and Rochester, New York. Not exactly vacation

destinations. But keep in mind if you have a consistent solid short-term rental strategy,

it’s not necessarily vacation destinations and it could be you know hot business locations but really it could be anywhere that is big enough to have hotel rooms. If there’s a demand for hotel

rooms then there’s probably an opening for short-term rental. Okay so much for the predicted,

disaster. Mortgage rates have come down a bit and the demand goes up a bit in over,

the past 30 days according to an article from CNBC that we also are posting in the notes and we’ll put it out there on social media. We’ll relink to it. I just

want to remind you though when you look at what happens with the 30-day trend you are not talking about a real trend. 30-day period does not make a trend,

especially in real estate. You have to look really at year-over-year data. And even then.

[13:42] With what’s gone on with the pandemic, so much of the statistics that we normally rely on are skewed because there was an eviction moratorium. There was a foreclosure moratorium.

So you would, you know, if you didn’t know all that, you would look at the eviction and foreclosure statistics during this period and you think, wow, it was really quiet. Well, it was really quiet because it was enforced by the guns behind the federal government. So yeah, it didn’t happen.

[14:18] Common sense and logic to understand that there’s a bit of catching up to do.

Because there were a lot of people that got away with not paying their rent and not paying their mortgage for, in some cases, as long as two years during the pandemic.

And so, you know, it’s time to pay the piper.

And the landlords and the lenders are kind of tired of not getting paid, and they’re ready to get paid.

So yeah, there’s gonna be some catching up, and there’s gonna be a catching up period that I’m projecting is gonna probably take six months into 2023.

And we’re working on getting some experts here to join me and talk about this in an upcoming show.

[15:07] If you have questions about real estate or real estate investing, send them to questions at flippingamerica.net. We will answer you from the email, but we also may use your question on the show.

Questions at FlippingAmerica.net.

Now, Benson Juarez from Privy Software is gonna join us in just a moment, right after we take a word, and let me talk to you about the Mastermind.

[15:32] Hey, are you ready to learn this business for real?

[15:33] Music.

[15:41] Hey, are you ready to learn this business for real? You want to check out the Flipping America Mastermind.

It includes 25 home study courses, inclusion at all weekend training events for life, group coaching calls for life, and monthly one-on-one calls for a full year.

Invest in yourself and be a part of my Flipping America family for life. www.livingamerica.net forward slash mastermind.

Benson Juarez, welcome back to the show, man. How you doing?

I’m doing great, Roger. It’s good to see you. It’s been a while since we’ve been face to face like this. Yeah, it has been a while and you’ve been busy and I am so admiring what you’ve been doing.

So take a couple of minutes right now and tell us what you’ve been up to with your product.

[16:32] Well, I’ve been an owner of Privy for a long time now. Back during the last downturn in the market, five, six, seven, eight, nine, I was doing a lot of real estate investing.

I was wholesaling, fixing, flipping, building a portfolio. Like a lot of people, I took a pretty big hit.

It put a different taste in my mouth from that experience. ever since then, you know, I’ve been really big on, you know, pushing the software out

and working with our team to put together a product that people can use to find deals and analyze their properties and you do better market research and learn local market knowledge they can be more effective. And what I realized is I wasn’t really practicing what I was preaching,

right? So I’m like, listen, you’ve got a couple of properties here and there. And that’s great.

[17:25] However you’re showing people a certain way of using the software and you need to do it too. So I basically said okay over the next 30 days and it was about a year ago now, 30 days, I’m going to basically lay out a roadmap on exactly,

the steps that someone needs to do to go and choose a brand new market and start operating there and start having success. And so I did over 30 days recorded it, turned it into a little mini course master class if you will.

And so now I teach those exact same things. I use the actual properties that I’ve closed as use cases of how to use the system. Quick question. You said you did this as a master class. That’s a little bit of news to me. How can our listeners access that master class?

[18:11] Well, the cool thing is we actually don’t sell it. We don’t sell the master class as a standalone. I give it as a bonus when people decide to invest in Prevy for a year on the annual plan. And I give give them that course as like, okay, here’s everything that you need to do step by step,

the same exact way that I did to be able to have the same level of success that I’m having and our users are having.

I interrupted you. Please continue with the story because then you went and did this.

[18:39] I did yes so i basically was like okay if i was gonna start from scratch in a brand new market how would i do it so i basically just recorded. Me doing the research of finding my target market so i compared all the other markets to each other same as i teach people when i’m showing them how to use the software and i actually chose the st louis market.

[19:02] As my model. And so I chose it for a very specific reason, right? Because what I tell people is you go to where the activity is, you go to where the ingredients are to basically build a deal. And if you are choosing a market to go and do investment properties in or wholesaling, whatever your strategy is,

based off of one of the major reasons that people normally do, which is what’s,

familiar, what’s convenient, what’s comfortable, you’re not necessarily gonna get the level of success that you would if you would use data to choose that market.

And so that data that we have is proprietary inside of Privy, but we call it investor activity. We basically show you all the properties that have recently been renovated on the map so you can see specifically what’s going on in each market.

And then you can compare the two. You can say, okay, well, you know, Chicago is a hot market, Indianapolis is a hot market, St. Louis is a hot market, which one should I choose?

And you can compare them and say, okay, well, I like this market because of X, Y, Z, or I like this one, but these are all markets I should consider using or going to because the data says I should go there.

And that’s where the ingredients are to put together a deal and actually make money.

[20:15] Okay, so now, let me jump back in here.

Everybody is talking about how hard it is to find deals in the market right now.

[20:26] You settled on St. Louis. When did you go there and how long have you been there?

[20:31] I started doing business here beginning of this year. So it would have been January-ish. Wow. Okay. Because when I first started doing it.

So a full year in St. Louis. Tell us how it’s going. Almost. It’s going really well. This house I’m sitting in right now is an Airbnb that I bought using the software that I found by using the same strategy that I always tell people to do.

As you go to where the investor activity is, and if you can find unrenovated homes in the same way that you can find renovated homes, well, that’s what creates margins.

The margins are created not from the property itself, but by where the renovated homes are located.

And if you’re measuring how good a deal is by the percentage of ARV, you literally cannot prove after a pair value on a property if none of the comps that you’re using for value are unrenovated.

So you have to be where your renovated comps are at.

That’s one of the ingredients to put together a deal. But what’s also there is all those renovated homes, those are all buyers, right?

So in a wholesale scenario, you can find a property that you can write an offer on. But if you don’t have buyers who are willing to take that property from you for a fee,

an assignment fee, then that’s one of the fewer pieces of the ingredients that you need to be able to put together a deal.

All right. Let me ask you something. We’re thinking several steps ahead to be able to think, okay, is this house going to appraise? Am I going to be able to make the numbers work on this? Because it’s already worked for somebody else.

[21:59] OK, so you’ve been there basically 11 months. All right, in that time, how many deals have you done?

Close to a dozen. Close to a dozen deals. And you’re sourcing all of the deals from your software, Privy.

And I’ve got a link on the screen. You can see that link, can’t you? I can. bit.ly slash get privy program.

And just full disclosure, that is an affiliate link for me. So if you use that link to get the program, I’ll get, I think Benson will buy me a quarter pounder with cheese or something like that. Anyway.

Yeah, it’s good. It was hugs before it was a certain number of hugs per subscription, but we’re upgrading to the burgers.

Maybe a peppermint milkshake from Chick-fil-A since it’s the holiday time. Yes.

Anyway, I don’t even know if I like them. I’ve never tried them. But you know, the idea of peppermint in ice cream just…

[22:55] This seems weird to me, but off topic. All right, back on this topic. So you’ve wholesale a number of deals and you kept a couple for yourself,

and you’ve done it all using the preview platform in a time when the world says deals are impossible to come by. And this has been your only deal sourcing that you’ve used while your entire time

in St. Louis, right? Oh yeah, 100%. And by the way, all of them were on market.

There was no direct-to-seller, there was no marketing budget, there was no cold-calling of motivated sellers or knocking on people’s doors. It was all on,

market MLS deals that our system found using the comping algorithm because I,

was looking in the right areas. I think one of the biggest reasons why people people fail is they look in areas where the stuff isn’t there to be able to put together a deal. So they spend money on marketing, they spend money knocking on doors or using agents.

But if you find a property in an area where the ingredients are not present to put together a deal, you will not have success in this business.

It’s as simple as that.

This is good stuff, man. I really appreciate you taking time. Okay. Just parting shot.

What does someone need to do to get rolling in their business right now?

[24:18] Well, a little bit of market research. So I would definitely stay away from using universal formulas or some sort of, um, a universal perspective on what a deal is in a market, because a deal.

Is what someone else will buy a property for, right?

[24:35] It isn’t what you think a deal is. So you really have to have your finger on the pulse of the market and what a buyer really wants.

And the only way you can figure that out is by looking at transactions they’ve recently closed and then talking to them and ask them, Hey, what’s the deal for you today? Right. In this shifting and pivoting market, what a deal for them is today is not probably the

same thing as it was even two or three months ago, right, because it changes that fast. But if you know you’re working with people that are active, because within privy, you can see that data, you see who the buyers are, you can see what kinds of properties they’re buying, how much they’re buying them for, what they’re selling them for.

That gives you a good foundational basis of the understanding of what their buying criteria is, or their buy box.

Then all you do is talk to them and confirm what it is, and then if there’s some slight changes in that buy box, then you apply that to your search criteria within Privy.

Because in Privy, basically you can build a systematic approach for finding properties that find homes that fit their buy box.

While you’re at work or while you’re with the kids or while you’re watching football on Sunday. Hey, Vincent, you ever play softball?

I have, yeah. Okay. I just lobbed you an easy pitch. What I expected your hit out of the park answer to be short and sweet. What does a person need to do to get started investing in real estate?

Get the privy program.

[25:56] So it was a swing and a miss.

[25:59] No, what you said was right. I was just giving you an opportunity to say, get the privy. Look, everybody listen. I’ve got a book out there on Amazon on fantastic, it’s called Fantastic,

Deals and Where to Find Them. And I give you a bunch of free ways that you can work your fanny off to find deals. Privy is not free. But guess what? It’s one of those things that

I consider worth it, which is why I take the time to bring Benson on the show from time to time and why I want to be a referral partner for Privy because it is worth it. The money that you spend,

you’re going to get that money back, well, when you do your first deal. And you’re going to be able to find deals. And something I want you to pick up on, if you didn’t hear this, he bought,

deals that were listed on the market. So you’re buying from the MLS right now in 2022 and making money, right? 100%. And it’s not just me, right? I’m actually, if I was going to compare myself to

other success stories of privy, you know, our privy users have, I’d be low on the list of successful people. We’ve got.

[27:02] Hundreds of people that are, that are refining deals on market and closing them from the exact same strategy that I used. And then I’ve taught them. I just had a guy on my, one of my trainees recently, his name is Mahmood Issa. And he’s

closed over $600,000 in like the last year in just assignment fees from on market deals,

using the same strategy that I just explained to you.

Yeah. All right. Everybody go ahead.

[27:30] Sorry. Well, it’s just an example, right? Maybe we consider that one side of the extreme, but then we have people every single day that are finding properties, writing offers like the majority of time when you do kind of the a normal strategy that people use with off market.

They’re lucky if they can write a couple offers a month and you can’t build a business around that. So we basically have built a system that can find that low hanging fruit.

They can give you assignment fees like five, 10, $15,000 with zero marketing budget. And the system does all the heavy lifting for you.

Gives you all the data you need to analyze the property and feel confident so you can submit an offer that actually has a chance of being accepted and then you close in a deal.

[28:11] That’s great. Now, all this training and everything, you can’t buy it, but you can buy the program and you get the training with it. So you get the program, you also get Benson and he will sit and he will take time with you one-on-one or one on a group and help you get started. It’s a level,

of customer support that’s kind of unparalleled in the industry. And I appreciate it, man. Thank you so much for living the dream and practicing what you preach. We appreciate that. We’ll talk,

to you soon. My pleasure. Thanks, Roger.

We’re running out of time folks, but isn’t it amazing? He is buying houses off of the MLS using the Privy Software tool. And it’s only gonna get better in 2023.

And we’ve been doing a lot of talking here about the state of the market, and the videos are starting to really pour out on YouTube about the coming crash in real estate. So we’re gonna do another show on that pretty soon. And I just wanna say to you, don’t worry, okay?

It’s not gonna crash.

It’s gonna correct. There’s going to be changes, but it’s not going to crash. All right, today’s Michael Scott quote, and I’m optimistic because every day I get a little bit more desperate.

[29:21] Thanks everybody for tuning in. We love you, we appreciate you. We’ll see you soon. Keep your eyes open.

[29:28] You’ve been listening to Flipping America, real estate investing for everyone. Listen three times a week on stations across the country or on the Flipping America app.

In the.

[29:38] Music.

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