Why Investors Make Lowball Offers
Video Transcription, Click on title for video
By: Bruce Bartlett
Hi everybody, Bruce Bartlett with FlipGreat. Today’s question – today’s topic by request is Why Do Investors make lowball offers.
First, why the heck listen to me, I was one the founding managing partners of Sequoia Real Estate Partners where we aggregated to get a lot of private money, went out bought fixer houses and apartment buildings, fixed them all up, sold them all. All the investors got all their money back plus their profits, so a perfect batting average there. Everybody made money on everything and everything I’ve ever done my own account, we made money on too. So perfect track record. I have been featured in the Wall Street Journal, featured in Los Angeles Business Journal, had been on Fox Business, coordinated in a few different publications and every single year, may be 6 or 7 years running now I am invited to speak on a panel or two at the nation’s largest conference on Single-Family investment.
So first of all, let’s talk about those investors, those flippers who play an absolutely critical role in the market. The press loves to sort of badmouth them for a long time, you see all the articles about I can’t buy a house because an investor gets there first. They provide liquidity, they provide speed. They provide some levels of reliability. They make your neighborhood safer. The fact that they are there is why if you have an investment opportunity somewhere in the country and you want to get rid of a house fast whether it’s an investment property or property you live in, there is someone there to help you with that.
That’s the whole reason why there isn’t a horrible property sitting on your street causing blight and decay and pulling on your property values and increasing the crime level in your neighborhood, so investors are really-really critical to this marketplace.
Now, in regards to those houses whether they are in an investment property or whether they’re a home that is going to be sold for someone to own and live in, houses only fail to sell for two reasons.
Reason #1 is exposure. So, do people actually know that your house is for sale in the era of the Internet when you can have 57 photos of just your kitchen on Redfin, Zillow, Trulia or whatever website opened up last night, generally speaking that is never the issue. So, there’s only one other thing. What is it?
Well, it is a price. If your house isn’t selling, it is because the price is too darn high, that it. The market has looked at your house and gone, if it was great price, somebody is making an offer right now.
So, let’s get back to the question at hand now that we have established that and that is “Why Do Investors, Why Do Flippers Make Lowball Offers. Here’s your answer. They don’t. There’s no such thing as a lowball offer. They don’t exist. The reason why I say that is because there is no such thing as a highball offer. Nobody has ever heard of one, have you?
Imagine, there is a house, its priced at $500,000, you’re selling it and someone offers you $600,000. Nobody goes, I am offended, sir. I priced this house at $500,000 and I will not accept a penny more. Of course not, no they brag to their friends about how they got $600,000 for the house, but if someone would offer $400,000 then all of sudden, they’re all indignant because it was $100,000 less because instead of $100,000 more. That makes no sense because essentially each offer whether it was $600,000 or $400,000, it is somebody telling you, you’re an idiot!
You said this house is worth this and it’s not it’s worth this, but if they tell you’re an idiot at low, you are angry. But if they tell you’re an idiot high, you are super happy. Again, this makes no sense. This isn’t personal. Your personal stuff is inside the house and when you move, it’s going to go with you. We’re just buying the shell of the house.
People can have different opinions on the value of something every day, whether they’re stocks, whether they’re bonds, gold, silver, platinum, anything that is traded, people have differences of opinions in regards to the value and who’s to say that yours, it is necessarily correct.
You know, I may offer you a lower price or a higher price for your house, and I probably have 10 times more experience than you do. I may have more experience than your realtor does, and higher levels of real estate education. So, who’s to say that you guys are right.
So, really what we’re talking about here, it’s the investors make lowball offers, they simply make an offer that is less than the asking price. What’s so crazy about that?
So, they don’t completely agree with you 110%. Big deal. Hey, be happy they are making an offer. I don’t care if they’re offering you a dollar. In some theories, you could price any house at a dollar, the market is going to take it where it goes. The market has spoken, it’s essentially an auction, who cares, okay.
If this investor makes you an offer of a dollar, wonderful, thank him or her. It’s just the start of negotiation and this isn’t where you start, it is where you finish, so counter them back, see where it goes.
This part of the conversation and you could probably see where I’m going with this is maybe it’s not me, maybe it’s you, maybe your price is too high. It’s very very very very, how many verys can I put in there, common for sellers to price their houses too high.
Let’s go over some of the reasons why. First of all, there is something called the endowment effect. Google it. Look it up on Investopedia anywhere you want. The endowment effect is something all of us humans suffer from, you, me, all of us and it’s a weird thing where when we own something, we tend to overvalue it. So you could take two coffee mugs, baseball bats, lounge chairs, whatever. Okay, one of them you own, one of you don’t. The one you own you think it’s worth more than the other one. It makes no sense whatsoever, but we silly humans do that.
So, this causes a lot of people to overvalue their homes. Maybe your home has been a fantastic place for you and your family. It fits you perfectly, you think it’s the greatest house ever. That doesn’t mean it’s a greatest house for everyone else because everyone else is not like you.
So just be aware that we have these inherent biases that cause us to overvalue that which we own and maybe when you do your evaluation be very very honest. You’re going to look, I know you’re going, yeah, you can go to Zillow and Redfin, you’re going to look up comparable homes. Are they really comparable? Are you really being honest about the condition of your home? the lot. Have you looked at how much dirt is under it? Does it have a view. Your house has a pool that might be great for you, a lot of people don’t want pools so be very very honest with yourself and conservative when you do those evaluations.
Next up is what I call the, Maybe I’ll Get Lucky Syndrome.
This is a horrible thing that a lot of sellers do. So, let’s assume for the moment that in regards to evaluating your house, you were very honest with yourself. You took a look at the comps in the neighborhood and maybe you discount a little bit for the endowment effect and you decided your house is worth this. So, you think to yourself, but maybe I’ll get lucky, so you price it here. Because in theory, well maybe I’ll get lucky and if I don’t then I’ll just lower price and I’ll lower price again and by the time I lower here, I should get an offer and sell anyway. So, hey no harm no foul, right?
Wrong, this is a horrible strategy. Please never do it. I could do a whole presentation on this. Because this is what really happens. This is what it’s worth, this is where you priced it. Now, how long do you keep it here before you change the price?
Well, if you’re like most people probably three weeks to a month before you even go here. In three weeks to a month, your house has lost all of its mojo. All the momentum to sell that house is gone. You are no longer the belle of the ball. You had your moment. It’s over. No one’s looking at your house anymore. They just see you keep doing this and wondering wow, you know the Jones just keep having to lower the price, I wonder what’s wrong with that house, and then you keep doing this, until you get down to about here and somebody smart snaps it up and you lose all of this.
The other thing that happens is here just real quickly, it’s time most people give themselves a certain amount of time to sell something and you keep eating into that until finally here instead of having all the time in the world, you’re up against the wall because you gotta get to your new job or whatever it is, and so now you’re forced to take the offer that comes in. So just never do that.
Okay, a telltale sign that you’ve overpriced your home is retail buyers are not making an offer for it. So retail buyers, they act differently than wholesale buyers act, investors or flippers act. If the price is too high, retail buyers just don’t make offers at all. They’ll say I didn’t like a driveway or that one bathroom has weird tile, some BS thing. It’s just an excuse, okay. They’re breaking up with you. That is what they’re doing and they need a reason, but the real reason is you’re expensive and they don’t want to tell you that because they’re being polite.
So, if you’re not getting any offers, let just be clear. Retail buyer is someone who is going to buy it, move-in, live there and it will also be referred to as an end-user. If they’re unwilling to make you offers in your house who are you left with. Well, you’re left with investors flippers. Okay, so they’re either going to rent it out or they are going to flip it, and they’ll go ahead and they will make you an offer that’s lower than asking, okay. Thank goodness! Again, be happy for this. It is the beginning of negotiation not the end, okay. Wonderful, but at least they’ll make an offer. But these people are in it to make money whereas as the retail buyer was not and that’s critically important because I don’t know what line of work you are in, but whatever line of work you’re in. Whether you sell stuff to sell services, you create that thing or that service for this price you sell it for that price, and this puts food on the table and you don’t fault anybody for it. I sure don’t fault you for it. Please don’t fault investors for it. That’s how they put food on the table too.
Like Home Depot sells a hammer, it’s 21 bucks, well they probably paid $8 for that hammer. It’s no different here. These investors are coming and they’re not going to pay you a retail price for that house, they can’t. They’re not going to pay you $500,000 for your house and sell to someone else for $500,000. That does make sense.
So, what is the discount from retail to wholesale and pricing?
Typically, it’s about 20 to 35%, okay.
So, if your house is not in good enough shape, to be able to be sold to a retail buyer, someone who’s going to move-in and live there, the hit that you are going to take is around 20 to 35%. Just be aware of that. That’s normal. Don’t be offended, okay. If you don’t like that, fixup your house.
So, getting back to this question of why are they making an offer lower than asking?
Well, it is pretty simple, they’re making you an offer that is low enough that they can cover all their expenses and make a little bit of profit, but high enough that they hope you won’t say no.
It’s this idea that is just selling out. Hey, those things worth $10 offer $2, that’s not the way it works. They’re doing a lot of math. They are taking a look at what they think your house is going to sell for after it’s all fixed up. They are going to take out the sales escrow and title cost, and all the other very, very high sales costs involved in selling property, so they’re going to subtract that and they are going to subtract the cost to fix it up, which is way more than you think it is. You probably watched a couple of TV shows, they are all BS. We will talk about that in a second, okay.
Then, after subtracting the cost of fixing it up, they have to subtract the cost of financing it because it takes a lot of money to do all this. They got all the money to buy your house and all the money to fix it up. Typically, it’s not just, Oh, I am paying all. it’s not the way the industry works. They are probably financing with some sort of lender and they’re not paying 3% for that loan, they’re paying 12% for that.
So, this is very very expensive work.
Now. They also have to subtract out the cost of buying the property. Yes, most of the costs are on the seller but the buyer has costs too, those run around 1½% and then they actually have to make some money and compensate themselves. It’s not just to make some money, they need to make enough money to compensate for all the risk that they took. Typically, that is around 15%.
Now, let’s go back to those TV shows for a second.
I sit here in a rather unique position in that in my previous career in the entertainment industry, I sold reality TV shows. I was a literary, okay and now in this career in this industry I’ve been contacted I don’t know 4 or 5 times to possibly be in one of these flip shows.
So, I can tell you firsthand, they’re all complete bull. There’s no reality in reality television. Stand here, pick up that sledgehammer, hit there. I haven’t picked up a sledgehammer in 20 years and they show that. It is not fun to knock down a wall, it is not that ridiculous. We use pros for that, they wear a hard hat, they’re not there in Jimmy Choo shoes and skinny pants, come on.
So, those are complete bull and all the materials that they buy almost all show, you know the rates that they get are all discounted because, Hey, look I bought this at so and so. Okay, look, overnight the most expensive granite plates in all of Los Angeles are doing all of my stuff overnight and it’s all custom. come guys, sounds too good to be true, it’s too good to be true.
So, please it’s not like that at all. It is high risk work, it’s very expensive. If it was easy to do, everybody would do it and everybody doesn’t. I have seen very very smart people get into this business to lose money.
Now, so far, we sort of have been talking about the price of these homes what people are willing to pay or not pay and the media loves to talk about prices because it’s something that’s easy to talk about but I want you to start thinking about the reality of the situation, it’s not all about price. Price is one thing and an offer, I mean I can think of countless times when I’ve had multiple– homes typically sell very very fast with multiple offers, and those multiple offers come in and it’s not unusual at all that I don’t take the highest offer, why?
Because it was not the best offer, okay.
So, whether you’re to sell to an investor or whether you’re selling to an end-user okay, you need to take the offer that is best for you and best for your goals, okay.
Talking about the investor offering, so that is not a lowball offer. That’s a fast offer that’s fast money that generally speaking, another subject we did not talk about.
Generally speaking, you can feel very confident it is going to show up because somebody makes you an offer, escrow doesn’t close another whatever 30 days or 45 days depending on how the contract is written up, the house is not sold. It is not until all the money shows up in escrow and it actually changes hands, and just because they made an offer and you accepted it, there is no guarantee that they are actually going to show up with that money, okay.
Once you accept somebody’s offer, they’re holding all the cards, okay. You can’t oh, I don’t like you know you’re making you worried I’m not sure you are going to show for the money. I canceled this contract and gave it to someone, you can’t do that, okay. You want to make sure that your you’re taking and offers from someone that you trust will actually do what they say they’re going to do in the contract, one of the reasons why I may not accept an offer that’s highest because I look at their finances, I look at where their money is coming from, who they are, I look at their backgrounds and you know maybe they’re investor and they’ve had some shady deals. I call some people. You know whatever, I am going to do some background checking on these people or, it’s I don’t know anything about them, it’s coming to a realtor, really have we worked with this realtor before, are they straight shooters, do we trust them or not so much, okay.
We were looking at this stuff and you’ve got a look at you and your goals. Whether it is your goal, getting the highest possible price, well you better have all time in the world or is your goal. No, I’ve gotta take a new job in, you know, wherever Great Falls, Montana, and I have gotta be there in 3 weeks, in which case time is what is most important.
If you’re up against the time, then reliability can be really high on that list too, so again just it’s not all about price, there are all kinds of other things that people have going on in their lives and things other than price sometimes are what’s most important.
So, price, speed, reliability. Do they want repairs?
Well, that is going to slow you down. Generally speaking, I say don’t do any repairs, turn that into giving them credit.
Do they actually have the money? Where is the money?
I have had people make an offer, it’s great if you open up the look at their proof of funds and the proof of funds is a retirement account. So, you’re telling me that you’re going to cash out of this retirement account and you can take a hit from the IRS to buy my house. Yeah, I’m not really believing that.
Sometimes, you have had situations where you buy it and they want to rent it back from you for a certain period of time while they sort of get their affairs in order, or they want a super long escrow. Not everyone wants a super short escrow.
I always ask what’s important to your client, how can I help them, so we can have a transaction take place.
It’s kind of like ice cream, okay. Chocolate is most popular flavor and vanilla #2. I think they combine about 30% of the market. But if all you offered was chocolate, vanilla 70% of consumers that walk through your door, if you have an ice cream shop would be unhappy. Okay, so lots of other things going on, lots of other attributes that are important to consumers other than just price.
Now, unfortunately, we’re in an industry where it’s sort of limited to chocolate or vanilla, your you’re selling a house and you can either have really fast offer that is relatively low or you can get money, I mean because got fix up the house and doing everything takes a whole long time but you get more money. Those are sort of your two options. There really isn’t anything in between.
So, we talked about what fast money?
The fast money is lower because it is going to be discounted about 20 to 35% ballpark.
But let’s talk about selling for top dollar. Because realtors tell you that it’s great and it’s easy to do. Don’t believe them. Most of them don’t do this, they don’t risk any of their own money and they have truly no clue as to how this works. They are realtors, they are not investors.
You want to know how this works?
Talk to an investor.
So in regards to how much it’s going to cost to fix up?
Well, it depends on how much work needs to be done. we’re talking about what I call fixer houses. If all it needs paint and carpet that is not a fixer house, okay. Because anybody any end-user can handle that. A fixer house is something that whatever the combination of things problems, issues it has, they’re big enough to scare away a retail buyer and if they’re big enough to scare away retail buyer, it is not to paint and carpet, so were talking about foundations, asbestos, mold, the entire inside the house look like 1973, you know, these are broken foundations, the laundry room is in the middle of the kitchen. I mean this is really really big work and so that scares away. You know the DIYer gets scared off by this and I can go to a whole other presentation, why DIYer should never buy fixer houses.
So, if it needs this much work will just let you know, if we have to tear something down to the studs and completely redo the house, we are doing all the things I just mentioned and the rough and the electrical and plumbing and new electrical panel and you know new water heaters and etc. etc. etc., new bathrooms and kitchen. That’s basically here in Los Angeles that’s $100 square foot. Okay that’s what it cost me. it is going to cost you almost twice as much, okay. Because people give me great rates because they work with me all the time. I know what to do and I know what not to do. When someone gives me a price I know if it’s too high and you won’t. You won’t know the right materials to use.
I will do it 10 times faster than you, but let’s just talk about money for a second $100 square-foot. So you got a three bedroom two bath home at 1750 ft.² for me that is $175,000. For you, $250,000 and it could go much higher. Humans are our wonderful animals, they learn very rapidly. The first time we do anything, though we usually do. Whether it’s walking or talking or eating or throwing a ball or running whatever, it is we do it horribly. That includes fixing up the house. So a lot of the things that you do the first time you’re going to do wrong and so either you are going to have an inferior product when you go to sell it or you are going to have to redo it. You are going to have to pay for it again.
Again, one of the reasons why for DIYer sick it gets very costly. I say never-never do it. I mean it if you grew up with your dad who is a general contractor and you went on the job site all the time wonderful, great. But most of the time, the first time we do something as humans, it is horrible. It’s all messed up to do it again, again and again. You know, so I tell people you want to be practicing on someone else’s house, not your house, so you do your house. You get it right.
Even if it is not that bad, the house, the first thing they’re going to tell you to do is declutter, which is a polite way of saying get all of your crap out of the house, so you are going to have to put that in storage and you are going to have to pay for that. They want your house looking like some sort of generic high-end hotel, not like your house.
If it’s empty, you’re going to stage. Here in LA, it is going to cost you a minimum of about $5000 bucks.
Okay, now let’s talk about time. The type of work, we’re talking about, which is fairly significant. It’s going to take you about 12 to 15 months from the time you start, today is my first day on the project to the time you actually sell the house, close escrow, get the money in the bank from 12 to 15 months so that’s you know 9 to 12 months to for the repair process, 45 days to sell it, assuming a warm market and you are priced properly and another 45 days for escrow.
So, the question is, do you have that much time? Also, do you have that much money?
Again, use that example of $250,000. Do you have $250,000 sitting in a bank account ready to go?
Because that’s what’s gonna cost.
So, one of the main reasons why an investor or a flipper is offering you less than asking this because they know how difficult and how expensive all of this is and you don’t because you have been watching reality TV shows. Not your fault, the industry is honestly praying upon you. There is an entire DIY industry that wants to make you think you can do all this. it is like oh yeah, you got it, you get it out of the house and you lift that foundation and it’s utterly ridiculous, but you know between the reality TV shows, they are selling you advertising and the home improvement stores that are selling stuff that is – you know the military-industrial complex of hammers and tools directed at you. So just beware, it’s really difficult work.
So, on this slide what you are going to see are basically two options, you know we discussed in a real-world situation. On the right you have selling it as is, so it’s going to be a wholesale transaction, you’re going to have to take 25 or 30% hit. In this case, these are real numbers. The house is worth $975,000. Now for the closing costs. That means I got $911,625. You did not do anything to fix it up, so you got $911,625 from the sale.
Just to keep all the math simple here, we are going to assume that there is a mortgage against the property, it is all paid off. Time to get you cash 1½ to 3 months. Okay so that’s option #1
So, option #2, you gotta fix it up. Okay, so the house fixed up, sold for 1 million 295 after closing cost basically puts you about 1.2, your repair costs in this situation, we are going to assume are $200,000, so you would’ve had $200,000 in your bank account ready to go. So, you net from the sale, basically about $1 million, okay because it’s 1.2 minus the 200,000 and time you get your cash, instead of the 1½ to 3 months, it is going to be 12 months. So the difference between the two, it is about $95,000 and about 9 months 10 months. So, somebody could be looking at this and going to it sounds pretty good to me, I mean I’m the work for 9 months, 10 months I am going to get in about 10 grand a month, woo-hoo it sounds great.
Okay, however, it’s great if you’re single and you don’t have a job because this is going to be a full-time job. You are going to be there 24/7, probably minimum 20 hours a week. You are going to have to be working on this. You are going to have to be on the jobsite almost every single day because almost every single day questions come up and you need to be able to answer those.
Also, this does not mean being on the job site is 9 o’clock at night after you finished your other job. Because the people who work there are going to be there from basically, you know typically these guys work from about 7 in the morning about 3 o’clock in the afternoon. That’s when you need to be there to take care of stuff. It is not like, oh write down your questions and then I’ll review them later tonight. No. They need to be there, so look this thing is another thing. It is really weird and what you want me to do about that. Okay, you need to be there, eyes on the site, boots on the ground.
So those are your two options, one you get out fast, and you $911,000. The other one month takes a long time and about $1 million, okay.
What if there was another way of doing? Please tell me you’re not living this house when you’re trying to do it. If you’re single fine, go for it. If you have a spouse. If you have someone you love. Get out, okay. This has a high probability of destroying your relationship to trying to live through something like this. Again, whole another presentation, just never do it. Never try it, okay. There are things more important than money.
Back to what I was talking about. A 3rd way of doing things. One where you don’t have to learn an entire new industry that you don’t know, it doesn’t require you to spend 20 hours a week at a second job and risk your marriage and cost you $200,000. What if there’s a third way, what if you could have your cake and eat it too.
Well, that’s what we will show you on this slide here because that’s us, that’s FlipGreat.
So, it’s the same situation, the only difference is instead of you doing all the work, we do it and you don’t us to do it. We pay to do it. We pay for everything, you don’t spend a dime. So we’re going to come because we’re the pros we know to do, we know who to hire, we know what to buy. I know what flooring is going on in your place. You know the moment I step in there, it is not the same when I use it over and over and over. No, it’s different depending on each specific house. We know how to do all the design and we know how to get the most money out of it, a lot of people try to do this themselves, they totally overspent, okay.
We know the sweet spot, okay you are little less. No, that’s too high. This is exactly what we want to spend. There are things to do, and there are things not to do because it is not going to increase the value of the home. We know what drives value because this is what we do. So in this situation, we’re to come in and you’re going to get the same you know $911,625 like you did over on the far left just as though you had done nothing because you didn’t do nothing. You didn’t spend any money with us and you didn’t do anything. So you have no repair costs. Unlike the one in the center where you had to pay $200,000. But you are also getting half of the profit we create.
Generally speaking, every dollar we spend on a home goes up $4 in value. We spent $50,000, and the home goes up $200,000 in value. So, you’re going to do nothing, you’re going to spend nothing and, in the situations, it is $114,675, you’re going to get from our work. You add that to the money that was already yours to begin with and the value of the house, you’re going to walkway with 1 million $26,000, which is $20 grand more than you doing all the work yourself paying for it. So, instead of it taking a year or 15 months, it’s going to take about 3 months, maybe 4 months, if it’s a big job. That’s because we’re so fast and we know what to do.
So, you’re gonna spend nothing, you’re gonna do nothing and you’re gonna get $115,000 more than if all you did was put a sign out front trying to sell it yourself. That’s what we do. We’re basically giving away free money, no I really mean here’s how.
There’s a huge amount of waste in this industry, so on the slide in front of you, what you see is it typically works, you got Homer Simpson. He’s got a busted-up house and the Flanders would love a new home. They don’t want to have to fix up Homer’s busted up house. Okay, so it’s gotta go through some flippers, some investors first.
On that transaction is about 8% in transaction fees. So here in LA we are going to call it a million-dollar house on that transaction $80,000 realtors’ escrow, title, Los Angeles County transfer taxes, all kinds of stuff okay, and it’s not just on the Homer’s side, it is also that the flippers, they have transaction cost too. If you add all those altogether, it is about $80,000 gone.
Flippers do everything they have to do but then when they sell it to the Flanders family there is another 8%, okay just disappears.
Now we can’t get rid of all of that, but we can reduce it down to one transaction. Because we’re gonna fix up the house before Homer sells, so that saves $80,000 in transaction costs right there, okay and also remember when I said hey every dollar we put into a house goes up about 4 dollars in value that creates a lot of additional profit also, that can be split between us and Homer.
So you see that we are going to get it done in about 30 days typically, it is really really bad, maybe 45, so it’s going to happen fast. Unlike if you do it yourself and it can take 9 to 12 months. So, we’re much faster. We’re better at this and we share the value we create with you to do anything, you don’t have to spend anything, okay.
So, this is the way it works out. The Flanders get their wonderful house Homer is a happy guy because he gets a whole bunch more money and there’s along with the money that didn’t have to go to LA County and escrow and title and realtors, it did not have to go to my banker because I don’t have to buy your house.
So, again here, Homer does nothing, he spends nothing, he gets extra $115,000. This is actually that same kitchen on the house. It was there, so this was before. it is not like it was a horrible kitchen, but his house had foundation problems, it had mold. If memory serves, I believe it had some asbestos. It had a lot of issues with all the windows. This house was worse than it looked, all of that flooring actually was destroyed and had to go anyway. We turned it into this.
We do all the work. Okay, we pay for everything, 30 days or less, use any realtor you want as long as there is no conflict of interest. It is not a family member or something like that, somebody. We have to approve the realtor. Make more money when you sell Susan Rancho Palos Verdes turned into this. We split the value that we increase with you, you sell faster that turns into this. No hassles.
Now if you don’t have a fixer house in your vast portfolio of homes, but there’s one across the street or your friend at work has one, or your sister. You can refer them to us and if they use us and we they go through the process and at the close of escrow $5000 from our end, not from your friend’s end. $5000 from our end is going straight from escrow into your bank account or wherever you want it to go, so we think this is a fantastic new way of doing business with you. It is going to help a lot of people out. Most people don’t know it exists.
You know, if you didn’t know chocolate ice cream existed, you wouldn’t know to Google for it. So people don’t know the service exists, so we are just trying to get the word out and we’re happy to pay for referrals.
So, that’s it. If you have questions, contact me online. I am happy to answer any questions you have and everybody just be prosperous and stay healthy.