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The Cowboy Sales Process
The Cowboy Sales Process

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Section A Rental

appointment-reminders
This course will guide you to a hyper-specific, high-value real estate investing strategy. We are not chasing appreciation. We are not building luxury homes. We are building a fortress of guaranteed, long-term cash flow. This is a brutal, numbers-driven game, and this guide is your rulebook. If you're looking for a get-rich-quick scheme, close this document now. If you want to build a bulletproof portfolio that generates predictable, passive income, pay attention. Every word here is designed to make you money.
​1. The Core Principle: Why Appreciation Is a Trap
Most investors are seduced by the promise of appreciation. They buy in "hot" markets, hoping a rising tide will lift all boats. This is a gamble. The market is cyclical, and when it crashes, your equity evaporates. The core of this strategy is to ignore appreciation entirely. It is a bonus, not a business plan. Our focus is on the one metric that matters for true financial freedom: Guaranteed Cash Flow.
The only way to guarantee cash flow is to control your variables. When you rely on a tenant's ability to pay, you introduce risk. When you rely on the market to appreciate, you introduce a massive, uncontrollable variable. Our strategy eliminates both.
The "Section 8" Advantage:
Name
Notes
Guaranteed Rent:
Open
Long-Term Tenants:
Open
Predictable Rent Increases:
Open
Cash Flow-First Mentality:
Open
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​2. The Acquisition Strategy: Maximum Profit, Minimum Risk
The secret to this model is buying right. This isn't a strategy for MLS deals or houses in perfect condition. We seek out distressed, off-market properties that traditional investors ignore. Our goal is to purchase assets with as little of our own capital as possible.
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The Math: Why We Don't Use ARV (After Repair Value)
Traditional fix-and-flip investors use the 70% rule: Purchase Price + Repairs <= 70% of ARV.
For our strategy, this is a flawed calculation. We are not creating an ARV-level property. We are creating a rent-ready property. Therefore, our formula is different and brutally efficient:
Maximum Profit- Minimum Risk
Step 1: Determine the Rent-Ready Value.
Column 2
Step 2: The Negative Repair Principle.
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Step 3: The Offer Formula.
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3. The Funding and Exit Strategy: Leverage Others' Capital

The goal is to get a property producing cash flow with as little of your own money invested as possible. This is where private money lenders and a strategic refinance play come in.
Private Money Loans (The Acquisition Phase):
Private money lenders often have specific products for different strategies. A "wholesale" or "bridge" loan is what we seek.
They will lend based on the As-Is Value, not the ARV.
Your goal is to find a private money lender who will fund 65-75% of the As-Is Value. This is why our MAO calculation is crucial. If we get the property for $60,000, and the As-Is value is $100,000, a 65% loan gives us a loan of $65,000. You get the property, you

Cash-Out Refinance (The Liquidation Phase):
Once the property is rent-ready and a Section 8 tenant is placed, you immediately initiate a cash-out refinance.
The Problem: Most banks require a 6-month seasoning period and will only lend on a loan of over $100,000. This is the single biggest barrier for most Section 8 investors.
The Solution: Use a broker like Nexa Mortgage, who specializes in non-QM (Non-Qualified Mortgage) loans. They offer products with zero-month seasoning and will go below the $100,000 loan amount threshold.
The Math: Let's say your property is appraised at $100,000 As-Is Value. Next offers a 70% LTV cash-out refinance. This gives you a loan of $70,000.
This $70,000 loan pays off your private money lender, who gave you $65,000. You now have a check for $5,000 and a cash-flowing asset with a long-term, fixed-rate debt. You've officially created a cash-flowing machine with zero dollars of your own money.

4. Your Actionable Blueprint

Strategy
Description
Stop Chasing ARV
Shift your mindset. Your number one priority is positive cash flow, not imaginary appreciation.
Get Hyper-Local
Focus on specific markets. Replicate in areas with a strong Section 8 program and low property values, such as Memphis. Research metropolitan areas with properties under $100k.
Use the Tools
Utilize resources from a free school community, including calculators and checklists, to analyze deals with a focus on numbers.
Find Your Team
Build a team including a local inspector, trustworthy contractor, private money lender, and mortgage broker to support and execute investment strategies.
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​Call with Seller: The Art negotiation & Seller Psychology

Seller reveals crucial insights into seller motivation and negotiation tactics. In this call you see the transition from standard business inquiry to an emotional and personal negotiation, highlighting that real estate is less about bricks and mortar and more about people and their motivations.
Key Insights from the Call
Seller Motivation is Key:
Column 2
The "Low-Ball" Tactic is a Double-Edged Sword:
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The Counter-Negotiator:
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The Value of a Concession:
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Understanding the "Boss" as a Tactic:
Column 2
The Power of a "No" and the Rejection of the Low-Ball:
Column 2
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Sales Techniques
Modules
Steps
Specifics

Module 1: The Psychology of the Seller

Reading Between the Lines
Analyze the nuances of a seller's language. Learn to identify emotional cues, personal motivations, and hidden anxieties that might be driving the sale.
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The Disinterested Seller:
Allen's apathetic attitude is a classic example of a disinterested seller. Learn how to work with them, and how to identify when a more influential decision-maker (in this case, Kay) is waiting in the wings.
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The Power of Personal Information:
Allen's comment about his girlfriend is a goldmine. Learn how to use such insights discreetly and ethically to build rapport and frame your offer in a way that addresses their underlying needs, not just the house's value.

Module 2: The Two-Step Negotiation Dance

The Low-Ball Anchor
Learn to use a low-ball offer, but with a twist. Don't just throw a number out there; frame it as a market reality based on other sales in the area. This is a powerful anchoring technique, but be ready for a pushback from an experienced seller.
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The Pivot and the Concession:
Master the art of pivoting when your initial offer is rejected. The agent's move to "go back to his boss" is a perfect example of a strategic concession. Learn how to build ground on the negotiation style without giving up on your end goal.
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The Two-Headed Dragon:
You see how to negotiate when there are multiple decision-makers. The wife’s entry changes everything. Learn how to identify the real power broker, shift your tactics, and negotiate with a more experienced and determined counterparty.

Module 3: Advanced Communication and Rapport Building

The "Don't Shoot the Messenger" Tactic:
Explore how to use a third-party authority (the "boss") to your advantage. It creates an us-versus-them dynamic, with you and the seller on the same side. This disarms the seller and builds a crucial sense of alliance.
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Mirroring and Pacing:
Observe how the agent mirrors the seller’s casual, informal tone, but then quickly shifts to a more professional, yet still empathetic, tone with the wife. This shows you how to adapt your communication style to match the other person's, fostering a stronger connection.
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The "Kick Rocks" Maneuver:
Understand the psychology behind the final "no." The wife’s "kick rocks" statement is a hard line in the sand. Here you see how you can respond to such ultimatums, whether to walk away, call their bluff, or find a creative compromise.

Module 4: The Final Offer and Closing the Deal

The "Why" Behind the Number:
The wife’s counter-offer of $78,500 isn't just a number; it's based on her analysis of market value and renovation potential. Learn how to present your final offer by explaining the "why" behind it, using data and logical reasoning.
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Timing the Close:
The negotiation ends with the wife requesting time to do her own due diligence ("I'm going to run comps... and get back with you"). Learn how to respect the seller's need for time while keeping the process moving forward. A forced close can kill a deal; a patient approach can seal it.
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Leveraging a Relationship:
The final exchange between JT and the seller—using their names and a simple closing statement—shows a human connection has been made. This emphasizes that the relationship you build during the negotiation is often the most valuable asset you walk away with.
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Need more deals in your pipeline? Prexium gives you the quality leads to close faster. Start today 👉
The Cowboy Marketer
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