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Tier B — Cheap SFH SF

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🏘️ Tier B — Cheap SFH SF

Call Playbook — Tier B: Cheap SFH, Stale Listing

⚠ Live-call refinements (2026-05-16)

Validated against ~10hrs of Richard's actual live streams. See validation report.

✎ Live opener — assume openness, don't ask

Playbook: "Quick question: your seller — are they firm on cash, or would they be open to a creative structure?" Live actual: "I was told that you were open to some seller financing. Is that the case?" [c2hNH6u7D0k @ 1:08:27]

Assumption lowers the agent's defenses — they don't feel screened. Lead with the assumption, not the question.

✓ VERIFIED — "10% down + 7-year balloon" works (with caveat)

Confirmed live on Detroit SFH SF: "I'll give you 80,000 on seller finance terms. So 80,000, 10% down, 40% of whatever it rents out for in monthly payments, 7-year term." [c2hNH6u7D0k @ 1:11:34]

BUT: the playbook says +20% over asking on cheap SFH. The Nard / Gallagher Street call shows only ~$5K over (~7%), not 20%. The +20% number is aspirational — real live offers are "above-market-estimate + buffer," not strict +20%. Note this when pricing.

✨ NEW — the 40%-of-rent rule (same as Tier A)

Richard's verbatim mental shortcut: monthly payment = 40% of expected gross rent. Anchors to landlord economics, skips amortization math in conversation. Apply on every SF call.

✨ NEW — partner / co-decisionmaker handler

Common Tier B pattern is co-ownership. Richard's handler:

"If you want to merge her into this phone call, we can knock it out right now." [c2hNH6u7D0k @ 1:09:05]

Add to qualifying questions: "Is anyone else involved in the decision — partner, sibling, attorney? Can we get them on the line right now, or want me to send the structure for you to review together tonight?"

✎ Section 8 angle — move from opener to trust-builder

Playbook: Lists Section 8 as alternative cold-call opener. Live reality: Section 8 mentioned 8x across 4 streams, never as a cold-call opener — only after rapport, as a use-case justification ("I have so many of those cheap Section 8 deals in closing. They're amazing." [c2hNH6u7D0k @ 0:48:06]).

Refinement: Move Section 8 from "alternative opener" to "after-yes confirmation language." Door-opener it is not.

✓ VERIFIED — Detroit / Cleveland markets are real Tier B

Multiple live calls reference Detroit (Gallagher St, Fullerton, Tracy, Turner). Playbook's market list is grounded.

⚑ NO live evidence:

Typical timeline: First call → verbal yes 3-10 days · End-to-end 30-45 days · See pipeline-timeline.html for day-by-day.

Trigger / When to use this script

Source: deal-criteria.md | SF Course L750-850

Pre-call checklist (60 seconds)

Sources: deal-criteria.md Tier B | SF Course L800-900 | outreach-scripts.md "Tier B" section

The opener — VOICEMAIL (if agent doesn't pick up)

Length target: 45-60 seconds. Copy-paste ready.

"Hi there, I'm calling for an agent on the [agent team name] regarding 
[address]. I'm real interested in this one — I just had a couple questions 
about it. However, I'll let you know a little bit of what we're looking 
to do over the phone here.

Instead of the [asking], I actually wanted to offer [asking + 20%]. 
I know that's kind of crazy — I negotiate backwards here, but there's 
a good reason for it.

Interest rates are higher than they've been in 25 years. We can't cash 
flow, so I'm calling sellers and I'm offering way over list price to 
incentivize them taking a set of payments here.

I'd give them payments that are as if they decided to rent this out 
themselves — so maybe they've considered renting it. Maybe not. After 
[DOM] days on market, that may have been a thought they had. I want to 
see if we could go ahead and offer [over-asking], give them payments 
in the range of what they'd make as a rental, and triple my down payment 
compared to what I'd have to put down on other loans elsewhere.

Anyways, not sure if I'd be a good option for your seller, but I just 
wanted to reach out and give you a call to see if that made any sense 
in presenting. Thanks so much for your time."

Key linguistic moves: - "I negotiate backwards here, but there's a good reason for it" — preempts agent skepticism - "Payments that are as if they decided to rent this out themselves" — frames as passive landlording, not seller financing - "I'll triple my down payment compared to what I'd have to put down on other loans" — anchors against "they want cash" objection

Source: outreach-scripts.md "B1. The One-Liner Voicemail" | SF Course L850-900

Alternative opener — SECTION 8 ANGLE (if property is in S8-friendly area)

When property is in a Section 8 landlord hotspot (Detroit, Cleveland, parts of Texas):

"Hi [agent], calling about your listing on [address]. Had a couple 
questions — mainly just about the roof, saw some stuff growing on it, 
wanted to know if there are any leaks in place.

Anyways, I'm actually going to offer [asking + 20%] on this. I know 
that's kind of crazy — $[X] above your client's asking. The reason 
is I want to make them payments, because I know [asking] in cash up 
front is definitely what they're looking for.

I'm looking for a Section 8 rental, and at today's interest rates 
there's just no cash flow on it for me. Rates have been the highest 
in 20 years. So I'm offering homeowners above asking to see if I can 
deal with them instead of the bank.

Here's what I'm thinking: instead of [asking], we do [asking + 20%]. 
I triple the down payment I'd put down elsewhere — quite literally 
triple. I pay your commission up front, cover closing costs, and then 
pay them the majority of what this property makes as a rental.

If it sounds too good to be true, I'm happy to send over the portfolio 
of other deals we've done this on."

Why the S8 angle works: Tangible use case (S8 landlords are hungry buyers). Proof of track record at the end locks credibility.

Source: outreach-scripts.md "B2. The Section-8 Angle"

The opener — LIVE call (when agent picks up)

Keep it short. Tier B agents are busier and less deal-focused than Tier A.

"Hey [agent], it's Tim — calling about [address] in [city]. Got a minute?

[Yes]

Quick question: your seller — are they firm on cash, or would they be 
open to a creative structure if the number was right?

[Response]

The reason I ask is I saw this has been on market [DOM] days. At that 
point, most people have considered renting it themselves. I'm looking 
for that exact scenario — I want to buy it from them, but structure 
it so they get payments like they'd make as a landlord. Over asking, 
zero interest, they keep the lien until it's paid off.

What's the likelihood they'd want to hear more?"

Why this is different from Tier A: No DSCR math. The pitch IS the question. You're feeling out openness, not proving inevitability.

Source: SF Course L750-850 | outreach-scripts.md "B1" live-call adaptation

Qualifying questions (in order)

Ask these after you've gauged openness:

  1. "Has your seller mentioned renting it out before?" - Why: If yes, they've already psychologically accepted tenant payments. You're closer.

  2. "What's been the biggest challenge getting this to sell — is it price, condition, or just timing?" - Why: Reveals real blocker. If condition, you might need to offer more down or accept a rehab clause.

  3. "If I came in at [asking + 20%] but it was structured as monthly payments instead of cash up front, do you think they'd hear it?" - Why: Qualification gate. This is the moment they say yes or no.

  4. "How long would the seller need to think about something like that?" - Why: Manages expectations. "24-48 hours" is normal on Tier B.

Source: SF Course L900-950 | outreach-scripts.md objection section

The pitch (the exact structure for Tier B)

When they say "let me run it by the seller," send this:

OFFER STRUCTURE:
- Purchase Price: [Asking + 20%] (higher premium because of lower principal)
- Down Payment: [10-14%] (higher acceptable range for cheap SFH)
- Interest: 0%
- Amortization: 30 years
- Balloon: 7 years (longer is OK on cheap properties — buyers need runway)
- Commission: Paid at closing from down payment
- Closing costs: We cover

MONTHLY CASH FLOW TO SELLER:
- Example: $40K property @ +20% = $48K offer
- 12% down = $5,760
- Remaining = $42,240 financed
- At 30yr amort = ~$197/month
- This equals typical Section 8 rental income for the area

WHY THIS WORKS FOR THEM:
- They get $8,000 above asking (real money)
- They avoid capital gains on the difference (CPA handles this)
- They get monthly "rental" income without being a landlord
- No tenant calls, no maintenance — we manage it
- They have a lien on the property (same security as Tier A)

What's DIFFERENT from Tier A: - Premium is 20% (vs 10%). The lower principal justifies higher %. - Balloon is 7 years (vs 5 years). Cheap property buyers are smaller operators; they need more time to refi. - Monthly payment looks like rental income, not a loan payoff.

Sources: SF Course L1000-1050 | outreach-scripts.md "B1" | deal-criteria.md Tier B rules

Top 5 objections + verbatim rebuttals (Tier B specific)

Objection 1: "We already have a cash offer"

Agent quote: "Another investor just offered us $X cash. How do you compete with that?"

Rebuttal:

"That's awesome — I hope it works out. Real quick though: is that 
other offer contingent on anything? Like inspection? Appraisal? Because 
at [DOM] days, a contingent offer is riskier than you'd think.

Our offer is [asking + 20%] with zero contingencies — we're not 
financing this. The tradeoff is structure instead of cash. For a 
property that's sat this long, structure might actually be what they need."

Why it works: Reframes "cash offer" risk. Contingencies fail; your offer closes.

Source: SF Course L950-1000 | outreach-scripts.md objection handling

Objection 2: "The over-asking offer seems too good to be true"

Agent quote: "Why would you offer 20% over asking? That doesn't make sense."

Rebuttal:

"Right — it looks crazy at first. Here's the math: I'm offering [asking + 20%] 
because I'm asking them to do the bank's job. Instead of borrowing from 
a bank at 7%, they become the lender at 0%. They get their full price 
PLUS a premium for taking that role.

So the premium IS the interest, just paid upfront instead of over 30 years. 
It's a trade: they give up a bank loan but get a higher selling price. 
I get a buyer who's willing to pay more because they can actually cash flow."

Why it works: Shows the premium is rational, not arbitrary. It's interest reframed.

Source: SF Course L1100-1150 (premium mechanics)

Objection 3: "The interest rate is too low"

Agent quote: "Sellers want interest on the payments — 0% feels like they're giving it away."

Rebuttal:

"I hear that — and it's actually the most common pushback I get. But 
here's the thing: if they want interest on top of the premium, the math 
shifts. We'd have to come in at asking price OR asking + 10% at 3-4% 
interest. Either way, the all-in return is the same.

So the question is: do they want [asking + 20%] at 0%, or [asking price] 
at 4%? Both work. We just can't do both. The premium IS the interest."

Why it works: Same reframe as Tier A, but lighter. Cheap properties move faster, so don't overthink it.

Source: outreach-scripts.md objection handling | SF Course L1120-1150

Objection 4: "Property needs work — will you still do seller finance?"

Agent quote: "The house needs a roof and foundation work. Are you still interested?"

Rebuttal:

"Actually, the condition is part of why seller finance makes sense. 
If it needed major work, a traditional buyer would come in 20-30% below 
asking for a repair cost-out. We're coming in above asking because we're 
taking the property as-is and handling the fixes ourselves.

So yeah, condition doesn't kill the deal. It's actually part of why 
we're here."

Why it works: Frames your offer as BETTER for a distressed property. You're the solution, not the obstacle.

Source: SF Course L850-900 (condition tolerance section)

Objection 5: "They want to sell within 30 days"

Agent quote: "My seller needs to close fast. Seller finance takes too long."

Rebuttal:

"Actually, we can close in 30 days. Our process is: 7-day inspection, 
10-day underwriting, 10-day title work, sign at closing. We can do 
that in three weeks if needed.

The 'seller finance takes longer' thing comes from people re-financing 
the property. We're not doing that — we're just funding the down payment 
and carrying the note. That's actually the fastest path."

Why it works: Removes the "slow" objection. Seller finance on an owner's existing equity is fast.

Source: SF Course L950-1000 (process section)

Counter-offer patterns (Tier B specific)

When seller wants more down than 12%

"We can go to 14%, but here's what happens: the higher the down payment, 
the bigger my assignment fee for the end buyer. At 14%, assignment might 
be $8-10K instead of $5K. So they'd need a bigger down payment from their 
buyer. It's a ripple.

Twelve is the sweet spot — it gives you real money up front without 
making it harder to place with an end buyer."

When seller wants NO balloon

"No balloon is actually beautiful — that means you're carrying a 30-year 
note and getting paid for 30 years. The only tradeoff is it's harder for 
me to find an end buyer because most investors want the exit date. But 
if you're OK holding it 30 years, we can absolutely do no balloon.

Do you want monthly payments for 30 years, or do you prefer a balloon 
where we close it out at year 7?"

The close — defining "verbal yes"

A "yes" on Tier B is similar to Tier A, but move FASTER.

Success criteria: - ☐ "I'll talk to them tonight and call you back." - ☐ Agent takes your number and email - ☐ Agent agrees to call back within 24 hours (Tier B moves slower than Tier A, 24hr is normal)

What you say:

"Perfect. I'll email you the contract and the one-pager right now. 
Tonight, give them a read and let me know what questions come up. 
I'll call you tomorrow morning to see what they think. Sound good?"

Success metric for this call type

A good Tier B call ends with: "I'll run this by the seller."

Close to Tier A, but the energy is different. Tier B agents are less deal-savvy. They may also be slower to follow up. Expect 1-2 follow-up calls before you hear back.

If you don't hear back in 48 hours, it's not a "no" — it's just Tier B pace. Call again in 2-3 days.

Sources

Course transcripts: - SF Course L750-900 (Tier B intro + cheap market context) - SF Course L900-1000 (qualifying + structure for cheap SFH) - SF Course L1000-1150 (counter-offers + common mistakes)

Best call recordings: 1. Pitch 30 - "700k House" (4:57) — adapt down, same structure https://bkmfdmlzkumnsytpztio.supabase.co/storage/v1/object/public/call-recordings/3d3cf27d-39be-4078-813b-1edb74d381da/1777608331554-10.mp3

  1. Pitch 31 - "Pivoting to Seller Finance" (5:57) — real transition from cash → SF https://bkmfdmlzkumnsytpztio.supabase.co/storage/v1/object/public/call-recordings/3d3cf27d-39be-4078-813b-1edb74d381da/1777608333367-11.mp3

  2. Voicemail - "One Liner" (1:57) — short, Tier B voicemail reference https://bkmfdmlzkumnsytpztio.supabase.co/storage/v1/object/public/call-recordings/3d3cf27d-39be-4078-813b-1edb74d381da/1777608317075-3.mp3

Verified closed deals: - Multiple Cleveland/Flint cheap SFH deals (referenced in SF Course L850-950) - Section 8 rentals in Detroit area (SF Course L1050-1100)

Common Tim mistakes to avoid

  1. Treating Tier B like Tier A. You don't have DSCR leverage. Your pitch is simpler: "Rent it as payments." Don't over-explain.

  2. Going under 10% down to seem aggressive. Cheap properties don't reward lower down payments (unlike Tier A). 12% is the sweet spot.

  3. Forgetting the Section 8 angle. If property is in a known S8 area (Detroit, Cleveland, Memphis), lead with it. It's a concrete use case.

  4. Not following up fast enough. Tier B agents are slower. If you don't hear back in 48 hours, it's not a rejection. Call back in 2-3 days.

  5. Using "offer" instead of "structure." On cheap SFH, say "structure" or "arrangement." It sounds less formal, less scary.

Source: SF Course L1000-1100 (mistakes section) + outreach-scripts.md