Jerry Norton Talks About Building the Ultimate Lifestyle While Traveling Across the Country in an RV with his Family
Watch the full episode at www.realestatedisruptors.com/interview/interview-with-jerry-norton/
Jerry Norton Talks About Building the Ultimate Lifestyle While Traveling Across the Country in an RV with his Family
Watch the full episode at www.realestatedisruptors.com/interview/interview-with-jerry-norton/
Jerry Norton Talks About Building the Ultimate Lifestyle While Traveling Across the Country in an RV with his Family
Video Replay of Interview with Jerry Norton
Podcast Replay of Interview with Jerry Norton
00:00:00 Hey everyone, thank you for joining us for today’s episode of real estate disruptors. Today we have Jerry Norton with flipping mastery and is here to share how he went from low margin, high volume wholesaling, flipping to high margin flows through new construction, a multimillion dollar flips. If this is your first time tuning in, I’m Steve Trang, broker, owner of Stunning Homes Realty, founder of the offer fast homes APP, the one app you need for wholesaling, and I’m on a mission to create 100 millionaires, so please message me if you ever need any help with your business. I know people are doing that now and I appreciate that. I want to give back as much as we can be excited for the show. Please give me a wave, please give me a thumbs up. And as a friendly reminder, I do not charge a dime for this show. I don’t make any money doing this. So here’s all I ask. This is what it costs for you to listen to this show. If you get value today, please tell a friend by sharing this episode right now, tagging a friend below or telling your best takeaway from the show later on. That way we can all grow together and don’t forget this is a live show, so please post your questions for Jerry answer. He’s an open book and he’s gonna. Tell us everything we need to know. You. Ready? I’m ready. Okay, so first thing is what got you in the real estate?
00:01:09 Well, great question. So I’ve been full time now for about 15 years and when I first got into real estate, I was working construction, digging holes, minimum wage, a mid twenties, you know, going nowhere in my life knew two things. I wanted to change that I didn’t know how a real estate was one of those things that was always felt kind of elusive, but I was a hustler. And so when I learned about wholesaling, I was like, I can do this. This is hustle work because wholesaling is also work, right? I can do this. Your mid twenties. Yeah. I’m in line with today’s demographic of wholesalers. Yeah, I mean that’s. You’re right, that’s Kinda, yeah. So if you’ve got some hustle and your mid twenties, most people can do really well with. And this was Detroit. So I was doing low end, low, low end. I’m talking like five and $10,000 houses. Detroit.
00:01:56 Yeah, when I started then. Yeah. Okay. Um, and then somewhere along the way you got into wholesaling and flipping. So what was that journey like?
00:02:05 Well, so first I thought I was a buy and hold guy. That’s what most people who get into real estate, they think of cashflow rentals. So at the time what was happening was I was working with a couple of wholesalers who were bringing me deals and I don’t know if you remember this, anybody listening in in 2004, 2005, but they had this, they had this, uh, no doc, no verification, no income loan. All right. Ninja. Like if you could fog a mirror, you could get alone. And that was me. I mean there was, they had no business giving me loans. What was happening though is I, a wholesaler would bring me these deals for like 20, 30. I put 20 into him, I’m all in for 50. They’d appraised for 80. They would refund me with no, no credit, no, no, nothing. They refined me at 50 and I’d turn around and do another one.
00:02:47 So this wholesaler in the course of a year, year and a half, I picked up 20 rental properties literally virtually without not having no business doing that. And I quickly learned what happened was I woke up one day and I’m like, this sucks. I don’t. I’m not made for this. Where’s the money? I was the question I had. Where’s the money? And I’m like, these wholesalers that brought me these 20 deals, they were making seven, $10,000 a deal. I was happy because they were fitting the numbers right? But I was like, Dang, these guys made a lot of money. I haven’t seen a dime with these rentals. What am I doing? And that’s when I kind of had a mind shift change and got out of all of those rental properties. Took me a little while, got out of all of those and went straight wholesaling and did wholesaling full time for about two years before I ever touched a rehab.
00:03:33 And as he went from that and he started flipping. Yeah. So then what happened was, is this is Detroit and what happened was as I started, I started wholesaling to out of state investors because the bottom fell out. Right. And so all this outside money was coming to Detroit. I called it the cheap factor, so California and then overseas I’d wholesale in my house, but then they couldn’t, they wouldn’t buy another one until they got that one fixed up and rented. So I was like, well let me help you do that. So by default I got into the renovating and so then I was doing a turnkey model where I’d, I’d renovate it, put a tenant in it, sell it, ready to go. I still a popular model today. Yeah, still works today, but I did. I mean I was doing 70, 80 of those a year for a few years until.
00:04:13 Oh, eight. Oh nine. That fell out. And at that time I said I got to reinvent myself. So I took basically what I was doing and went retail, so first time buyer market, the 1:50 to 200 price point and I started just continue what I was doing, but now flipping retail rather than the turnkey rental to investors because my investors were doing the same thing, they would buy one refi by another one [inaudible]. So I’d sell one guy 10 houses and it was, it was nice. Well, when they can no longer do that, I could only turn key to cash buyers. And so my model basically kind of fell apart. And then at which point from there did you turn into a higher end, your, your big transition? Because at one point he says, screw this. Yeah, what? Screw this volume model. Well, so a couple things happened.
00:04:59 Um, my wife and I had this, we’ve had this dream for years of traveling with our family in an rv and we homeschooled our kids. And so we had this vision. But at the time I was so tied to my business, like it was a, you know, I was doing 50 to 70 retail flips, fix and flips and some of your listeners, that’s not very impressive. Some of them it is, but I was a one man show doing that are really not real good. System’s just running around ragged. So it was, it was not. At first it was great because it was a lot. I was making good money, but anybody knows when you’re flipping after a while that wears off, you’re like, yeah, this, I’m making good money, but I’m not happy working like a dog. Yeah. And I hit that point where I’m like, something’s got to change.
00:05:40 The money’s awesome. But I’m no longer enjoying this. Like the thrill of the monies over the honeymoon’s over. I mean better than digging holes for minimum wage. So we, uh, so we started to have this vision of, well, what would that look like? And at the time I was like, there’s no way this whole thing would fall apart if I leave for a day. Right. So, and then at the same time something happened where a, I did this deal and it was, it was way out of my, my bread and butter or my comfort zone. It was a, it was almost a 400,000 arv and I’d been flipping hundred and 50 in Detroit. Yeah. Suburbs. Yeah. So on 150 arv is I’d make 20 5:30 profit. Right. And I was happy. That was good. That’s what I thought was the model. Well, I did this house that sold for like three 75 or 380 and I made 75,000.
00:06:28 That’s a little better. Yeah. Well what I did is I said, well wait a minute. I took a step back and I said, wait a minute. It was the same amount of time, energy and effort to do this one for three 75 as it was for these little ones for 150, but I mean three times as much money. So you went from 25 or $150 to 75 k on about 400. On about a 400 and. But, but here’s the big takeaway, same time, energy and effort, because I got to still manager, we have, I got to get a painter, I mean things a little different because it’s a bigger home and little nicer, but basically and more capital. I mean that was the big thing, more capital, but apples to apples, it was three times as much money for the same amount of time, energy and effort.
00:07:09 And that was the biggest Aha moment for me was why am I doing 50 deals a year? Why don’t I do 10 and make us just as much money or maybe even more. And that was kind of a transition I was going to at the same time, our family did a 30 day RV trip just to kind of test the waters. And we did that trip and it was horrendous. It was horrible. We had the worst experience ever. We had six kids, six kids. Well we were, the RV was too small and we were trying to cover too much ground and we got home and we’re like, okay, that dream’s over. Cross that out. We’re not doing that. But it, it, it, uh, and my business fell apart while I was gone for 30 days. Right. So we get back home and we’re like, you know, if we would’ve had a different setup, it would have been better and if we would’ve done this different than that, different and we couldn’t get away from just that idea of no nowhere to go open road.
00:08:01 Our kids real education, learning, spending time together. And so we came back to it and we got the right RV. We did. We got this 50 foot. I mean it was awesome. Custom built for us and we sold everything. I mean, okay. My 8,000 square foot house cars, boats got rid of everything. All we had left. Steve Fit in a one unit storage unit, like a one bay storage unit. That’s all he had left. He pulled the suburban behind the RV, left January 15th and went straight to Florida because this is Michigan Winter, right? Straight to three days to Florida, straight to Florida. And did a whole year. And when I did that, it was the biggest leap of faith in my business because I didn’t quite have, I didn’t know how it was gonna work out, but what happened was, is not being there in the day to day.
00:08:46 And also I kind of opened up and I said, you know, why can’t I do the same thing and other markets, why’s it have to be Detroit? Uh, there’s a learning curve there, but I started deals, you know, outside of my home market, following the same principles, right formula and you do these things and comps and all of that. And what I found was when I was forced to not be there in the day to day, I figured out how to manage things remotely. And I hardly work that entire year. Here’s the thing, here’s the big lesson I hope people take away. I hardly worked. I mean I worked a little bit but hardly like maybe maybe 10 hours a week was about it in the RV that year. But my real estate business made more money that year than any year previously. What do you agree with that too?
00:09:33 Well, I attribute that to building systems, first of all, doing higher margin deals. Yeah, right. That was a big one. But then also finding a way to get stuff done that I didn’t have to do and I, I, I couldn’t, I, I was so stunned that I was doing all of these things that I thought I had to do because I was there. That’s the biggest temptation when you’re there, you’re like, oh, I’ll just run out to the property and check on the painter, you know, are all, just go do that. And I wasn’t doing any of that anymore. I was, I was learning how to outsource all of that and I found that other people could do it probably better than I could anyway. And it just became a thing where I would manage a few processes, doing the right types of deals now and freed up so much time, you know, not being there at the job sites at the deals.
00:10:18 Well, so that’s crazy. Right? You had your business that you were, you know, it was going, but you were frustrated with and he said I’ll just let someone else manage it. I’m going to go hit the road and do what I do 10 hours a week. And it just kind of took care of itself. Yeah. So you were still getting deals sent to use your phone. I mean, I’ll know. What year was this? 2,000. 13. Two thousand 13. So you know, getting sent to maybe your iphone right. And you analyze it and then you’ll say yes or no. And then everyone else is doing the work.
00:10:45 Yep. I even had a first layer analyzing, so I paid a guy 50 bucks to analyze a deal that would come to me. Yeah, a 50 bucks. Right. And I don’t have to do it now. Right. So then it would come to me. So. So nine out of 10 he’d kill. I’d get the one that passed the sniff test.
00:11:01 So you paid him 50 bucks regardless of whether or not you took it down? Yeah. Wow. Okay. That’s serious. Yeah,
00:11:07 it. But it didn’t really cost that much for me not having to do it anymore. Oh my gosh. It was huge. Just that alone, she transformed my entire business is big nugget. Yeah. Yeah. And there’s guys that know this business like I. So, so this guy is a five deals a year guy. 100 full time, but he’s a, he’s a, I’m going to run to home depot, I’m going to do this. So as a side thing for me, he analyzes my deals, paying 50 bucks. He makes a couple grand a month. I don’t have to do it. Saves me hours and he knows what I’m looking for. So I’ve trained them well On. There’s two things, right? Arv and repairs. Yeah. You get those two right, then you can, you can get your by number. Wow. That’s incredible. Yeah. So it’s, it’s been working really well.
00:11:46 Okay. Any other big takeaways that you could, you could expound upon, right?
00:11:51 Yeah. So like if someone were to say to me, you know what, and I, this was one of your questions you were at, you were asking me earlier, was, you know, what advice would you give somebody new in the business? Really anybody is the thing. The mistake I made in the beginning was the same mistake everybody makes, which is this mindset of if I Hustle, then that’s how I’m going to win and that’s how I’m going to get ahead. But here’s the thing, if you work 100 hours a week, then you are only two and a half times an average employee working 40 weeks. That is huge for me because two and a half times working 100 hours a week, that’s seven days a week. That’s every waking hour you’re working in. All you’re getting is a two and a half times gain. That’s not scalable. It’s not scalable. Why would you do that? So I have a different mindset of figuring out your lifestyle first. And in today’s Day and age, there’s two things you need to scale a business without overworking its technology and its people,
00:12:51 Right. If you’ve got technology and you’re using technology, right, you can save so much time, right? And if you’ve got the right team, people doing things than they can save you so much time. So I’ve been focused now on the past several years on how do I, how do I build out my technology and maximize and optimize and how do I get the right people doing the right things. And those two things allow me to not overwork but still grow and scale my businesses.
00:13:16 Now it sounds really simple, right? It’s just those two things. It’s. But each of those two things is amazingly detailed. Right? So I, I’ve, I’ve told many people that I’m incredibly blessed that I have amazing people behind me. If I didn’t have the people behind me, I wouldn’t be doing the show right now. I’d be returning phone calls, text messages, whatever. So, but it took me a long, long time of personal development to good this point as far as the people side. Right? Totally. And then the technology side, so I have an APP that we’ve created and it’s working, you know, we’re getting good feedback, but that wasn’t easy. So you built your technology, are you dealing with developers? You negotiate with the programmers? What does that like?
00:13:52 So I have all my own software that we’ve created and it’s uh, so my, my deal management platform is called flipster and it’s an entire. Oh that’s your company. I’ve heard of it. Yeah. Okay. So we developed that. It’s uh, it’s for flippers, wholesaling and fix and flip, but it’s an entire platform for managing every part of the business. So everything from everything from acquisition, analyzing, offering, whole wholesaling, your cash buyers, your crms, your website, like all of it. Eight is he funding everything, proof of funds. So we built a platform and I basically just took everything I had been doing for years that’s been on spreadsheets and kind of all over and put it in an all in one, all inclusive platform where you can just manage everything and it communicates with itself. And so it’s really cool. That alone has really helped me grow my business and manage it because here’s the thing, you can do one or two deals and be unorganized, right?
00:14:42 But if you want to start scaling, you start forgetting it. I mean, I don’t know who I talked to yesterday and Yoga. Where’d that go? You’re driving across town looking for your paperwork or that? Yeah. Oh yeah. I was a mess. That’s how I operated for a long time. And so that tool, uh, we have some really cool deal analyzer tools. Some, uh, we, I have one tool that is an on market deal finder tool and we get 1500, 2000 downloads of that software because I give it away for free a week. We get 2000 people download that a week. Amazing. And it’s just a time saving tool for on market. What it does is it, it basically gives you a list of everything that’s underpriced, which is probably a motivated seller, but weeds through everything on market and says, here’s, here’s, here’s what’s under the average price per square foot, here’s the percentage below.
00:15:30 And then there’s a way to organize and manage that data to keep it, you know, so it’s just a time saver, but it’s huge. Absolutely. Have something like that if you’re doing deals, it’s, it’s a, it’s a no brainer. So the way I do my, if you’re interested, see, I have a, I have a, a development team that’s in Pakistan and there are three person team. My lead developer is like 12 bucks an hour. He would be $180,000 a year. US Some guy. Yeah. Oh, we press them out there. He’s amazing. And he’s living probably top of the food chain in Pakistan and he manages a couple of guys. So when, when we do a big project heal, we just deal with him. He brings on help and that’s how we kinda build out all our software and tools as fascinate. Yeah. Uh, so you’re a licensed broker.
00:16:19 Tell me about that. So right when I got into real estate, I got my license not for, not for being a real estate agent, but just to have access to the mls because I wanted to set up my own showings, I wanted to access properties and I wanted to run comps and an o four o five. These other tools like zillow, redfin, they weren’t developed really then. I mean if you didn’t have mls it was hard to do the business line dark. Yeah. I mean you could get an agent but then you’re always waiting on the agent. So I just got it for my own investing. What I found was every year the broker would pull me in and he would say, you know, you’re not, you’re not making any sales, because I was, I was doing deals but not running them through the brokerage. So I’d have to find a new broker.
00:16:59 So finally I just said, you know what, screw this, I’m going to get my broker’s license. I don’t got to answer to anybody. So that’s my. They got my broker’s license. That license. That brokerage is still active in Michigan. I have usually five or 10 agents that, uh, work under that brokerage. I spend maybe a couple of hours a year in, in that business because I’ve got a, I’ve got someone that manages those guys and super hands off and yeah, but I keep it active and it’s great and they pay me basically a per transaction fee and then, and then I tell them, don’t ever ask me for anything. I don’t want to hear about it, follow the rules and the law and order your insurance. No insurance of all the rules. So they’re all investors so you know, um, and then you have a. I was kind of a surprise. So I was telling my buddy, Max, you know, Jerry’s coming on the show, Jerry and Erin was like, oh, that’s
00:17:50 the guy with the, with the big following. He’s got the program, whatever or not the program, you’ve got the youtube channel. So I looked it up. I was like, you’ve Kinda like 14,000 subscribers. What’s that about?
00:17:59 Well, just to put that in perspective, my goal is a million a million subscribers. Yeah. And it’s not about the subscribers. That’s just the benchmark, so everything I’ve done in my training business for the past eight, nine years, I was telling you this before the show, it’s all been paid advertising so you know, I’ll pay to run ads, I’ll get people in my funnels that do my books and my programs in my home study courses in my coaching and all of that, but it’s been a. So I look at that following though and we built like a million subscriber email list and so I know, I know online marketing, I know email marketing, I know those things, but what I haven’t done is I haven’t built any kind of, in my opinion, any kind of organic a following by giving, by really being impactful. Right? Or so now I’ve completely changed that.
00:18:49 I mean we’re still going to do advertising because it works, but now what I want is I want to really have influence and impact, but I want to do it organically. I don’t want to pay my way to it. I want to. I want to build that by giving good content. So that’s the goal with the youtube channel. We’re doing a video a day on the channel, um, but like I was telling you, my, my vision isn’t, you know, 15, 20,000 subscribers, it’s a million subscribers because that for me, that’ll be a benchmark that I’m really having a massive impact. Yeah. So, but I’ve got to, I’ve got to be able to really put out good content, consistent content and have it mean something to somebody for it to really happen.
00:19:24 Oh yeah. I mean to have a. When I was looking at it like a video a day, now it’s, I can’t even imagine doing that. So yeah, that’s real estate freedom TV guys. If you guys want to check it out, it’s pretty cool. Um, and it looks like we were talking about impact and given back, financial freedom seems to be the message, the core message. Yeah. So talk about that.
00:19:44 Yeah. So, you know, Kinda like I was saying a minute ago, uh, I want to, I want to be, you know, we’re, we’re dead a whole lot longer than we’re alive, right? So I want that to mean something. And so too often people get into real estate and it’s about the stuff, it’s about the money, it’s about the house and the luxury cars. And there’s nothing wrong with that. I want nice stuff too. Yeah, yeah. But I don’t want that to be my sole focus. And it was for awhile. It was all about the money, right? But, uh, I’ve got eight kids and I want to be balanced. I don’t want to overwork. I love real estate. But if, if I’m honest, it’s not about houses, right? It’s about what that provides. And so for me, I look at it, there’s four things. There’s be, do, give and be, do, have, and give to be the person, develop yourself, your talents, your hobbies, uh, be able to have nice things, right?
00:20:36 And, and do nice things, but also give back in a meaningful way and be able to do those things that really matter. And I think the only way to do that is to have time. And the only way to have time, I think you have to have financial, financial first, but if you’re, and if you’re careful than that can free up time. So one of my mentors, and this is kind of where I learned this, one of my mentors taught me that too many entrepreneurs get into business and they have this mindset of, you know, in the beginning I’m going to work 80 hours a week and 100 hours a week and then someday in the near future, hopefully I’m going to arrive and as soon as I arrive then I’m going to live my dream lifestyle. Right? But what happens is during those two or three years, you develop habits and then they get there and they could, they could change, but they don’t change because they’ve just developed these habits. So I’ve kind of looked at things and said, any project I take on, I look at it and I say, can I do it without overworking and becoming imbalanced? If I can’t and I don’t see a clear way to do it, then don’t do it. Right? So that’s Kinda my filter is, is it going to jeopardize my ideal lifestyle? Is there a way for me to do that thing? But, but not, not become imbalanced by doing it and overworking and I’m not perfect at it. Oh No, no. But I try.
00:21:55 So that’s. But that’s one of the things that, you know, we try to impart on, uh, at our brokerage and other people that we work with is that everyone has this idea that you’ve got this business and you figure out life around it. Yeah. Right. And it’s backwards. It’s backwards. You guide your life and your business surgery life. Yeah. And so yeah, a lot of people get that wrong.
00:22:14 Yeah. That’s why when I look at deals, so let’s say a deal comes in and I put it through a filter and the filter is first, my first filter is what do I have going on in my life right now? If it’s, if I’ve got a lot going on personally in my life than my, my step is wholesale it because then you’re done. Right? All right. If I’ve got bandwidth. So my second filter is an okay business wise, does this deal make sense to take on? So I either wholesaler fix and flip it. So fix and flip is a whole nother layer of management, right? Because you got to get funding, you’ve got to do a renovation. So then I say, is it worth the return on investment? Is this worth the time, energy and effort it’s going to take me to take on this deal and if I’ve got the bandwidth personally and in my business, I’ll take it on. If I don’t, I wholesale it and I love that model. Right? That’s a great model. It’s a great model because it keeps you in check so that you’re not overdoing it. Too many people are like, I’ll take it on, I’ll take it out, I’ll take it on. And next thing you know you’re working, you’re overworking and your relationships are falling apart, your spirituality, your personal, like your health, all those things go secondary and it’s all about the deal. The fastest way to broke. Yeah, and miserable and unhappy.
00:23:19 So guys that were married, this is a live show. So please do ask your questions. Okay. So we talked about you were doing 50, 75 deals in Detroit, right? And you’re wholesaling, it was a low, it was a high volume, low margin business. So a low margin on those wholesales and flips years flibbles 25 k, what was the
00:23:37 all sales seven, 10, seven years. Every now and then I’d get like a 12 or 13 and then that was a big deal. Now that’s. No, that’s not a big deal at all. Right? We’re a different market but.
00:23:46 So back then that was the. And I think those numbers are pretty consistent with today. Yeah. If someone’s wholesaling and flipping, yeah, you’re pretty average seven. The 13 is it? Music is a good target for wholesale and the flip is 20 to 30, right? So now three level entry level. Right? And so you’re, you’re talking about new construction in luxury. So let’s start with luxury. Okay. We’ll talk about new construction luxury. What is your um, how do you define luxury and after that, what’s your target acquisition? Great. So
00:24:18 to me, I think the safe place for people to transition to is the three to 600 because that’s still, that’s, I wouldn’t call that luxury. I typically call luxury over 600 in most markets. Now in California you can buy a shed, you know Sandra’s crap or cd or whatever. Right? But in most markets you start to change into a luxury buyer, usually over six, 700 because now you’ve got to start thinking about, you know, do I put in a sub zero, $20,000 fridge, you know, am I doing like crazy crown or am I going really? So. So your strategy details matter. More details start to matter a whole lot more, not three to six, they’ll three to six is basically the same thing you’re doing at 150 200 in a nicer neighborhood and a bigger home. So now it’s 4,000 square foot instead of 1800.
00:25:02 And it’s just, I mean other than that, you’re almost doing the same granite, the same everything else. You’re just a different neighborhood. So it’s, it’s an easy transition, but your margins go way up. Yeah. So I liked the three to six is kind of. That’s now my low end is three to six luxury though is pushing that six to a million, a million, 2,000,003. So for example, I’ve got a deal right now up in Scottsdale, bought it for 6:30 our. We’re almost done. Our Rehab was two little over two and we’ve got a couple of interested buyers at one point too. So I mean we’re looking at about a 400 gross now I’ve got obviously closing fees and carry and stopped. But a gross $400,000 spread on one deal. Yeah. And it’s still a six month turn, you know, like we’re turning it in six months, hopefully.
00:25:48 Maybe maybe a little longer time on market a right? Because you’re at that price point where you might have to wait for that buyer a little bit longer, but nothing really changes a whole lot more on my lower end model other than you better really understand that buyer what they want get, get. So get a designer and like don’t guess. Yeah, on your, on your electrical fixture, on your light fixtures and you’re, you know, don’t guess in a professional getting get experts. So I, I get experts, I get expert agents and designers and I really try to make sure I know that buyer way more than you don’t need to know your buyer at 200 grand. You need to know that buyer. A lot of them, they’re just out of those guys out there. Yeah. And it’s easy to figure out what’s in style today and all of that, but, but at the higher ends, you really got to know your buyer.
00:26:35 It’s very market specific, but you know, think about it. I’d have to do 15 houses at 25 a right or whatever, 12 or 12 or so to make the same on just this one deal. And here’s the thing, there’s way less competition buying a house for 600. It was almost no competition, almost no competition. Yeah. So not all markets can support it. Arizona can. Right? And so you got a hit, but every market has their high end. Every market does. I don’t care what market you’re in, there’s their suburbs that are your million dollar neighborhoods, right? So that’s where you go and there’s, you’ll find that it’s, you know, I’ve, I think 80 percent of fix and flippers are under $200,000 Arv. So maybe another 10 percent go from 200 to maybe 3:50, virtually none, maybe five percent or the higher end flippers. Alright. So it’s a different world there.
00:27:28 So we’re looking at a 600 plus. Right? So you buy in this one for 600 and you were talking about gross margin and 400. What is. Oh Hey, how did you, how did you source that deal? Yep.
00:27:39 Well, so, uh, I started, I picked Desert Mountain Scottsdale and then we just started really looking. So I like to look at new construction first and if I can understand the new construction market then I can kind of see, I can kind of see what retail is doing on flips around that. So same homes that are going on there that are, uh, your remodel homes. And then I try to figure out, okay, well, if this is what the new construction buyer looks like, what does the, what does the retail in that same neighborhood or that same area look like? And so I, but I always kinda go in first with new construction in mind and like I’ll give you, like for example, in Fountain Hills here, we’re doing one where um, bought the lot for 100. We’re doing about 800 construction, maybe 8:50 build 4,500 square foot.
00:28:28 And so I’m all in around nine and maybe nine slash 50, but I’m backends one for and so, and it’s a 4,500 square foot. I know my buyer, it’s a second home buyer from Canada that buys new construction and found hills. And I know because I’ve done my homework to learn what does that buyer want, what, no steps at all. Oh yeah. You know. Right. And, and what kind of. So pool and kitchen and all of that. We spent a lot of time trying to learn. Um, but from that and understanding that buyer, I can now start to look at the rest of Fountain Hills for example, and understand, well there’s a certain buyer that is not the new construction. Notch it down now. What are they looking for and how do I provide a product that’s like new construction? Yeah. Is typically the way I’ll go.
00:29:17 Okay. Uh, but going back to the other property in Scottsdale, how did you source that specific deal?
00:29:21 I just decided that I want us, I want us, I want to search that area. It was on market or that market. Yeah, it was all good. Good. Yeah. So it was on market and there’s three or four more that I’m really Ian, you know, I got to this one because it’s a little.
00:29:35 I’m pushing the market at one, two. All right. Pushing your market. So you’ve sourced it, you’ve taken it down then then I’m assuming you have
00:29:42 lenders that you work with on a, on a first name basis that gives you a pretty good rates. Yeah. So, uh, I mean, what, what 100 percent funding, so hundred percent funding about the rehab. So what I do is I do, I usually do an 80 slash 20 or 90 10, so I’ll get, I’ll get a hard money asset lenders at the 80 to 90 percent and then private money on the. So that’s total. So purchase and Rehab, right? That’s what’s so cool about the market today. Hard money lenders are cheaper than they’ve ever been. Oh yeah. I mean like single digits. I mean, are you kidding? I paid, I paid 15 to 18 percent when I first started and eight points.
00:30:22 But it was all that was available, right, right. You know, so. So now if you can show a track record, you can get down to nine percent. One point if you can. Now if you’re new, you might be paying 12 percent. Two points, uh, 80 percent. So come in with 20 percent. So I’ll use private money to cover the other 20 percent. I’m 100 percent. Okay. So you said six months. Hold time. Uh, you, you manage a cruise, you have a crew. What was that look like? Yeah. So there’s two models there. I liked the GC model and manage the GC. Now I haven’t always been under that belief, uh, but you have to, if you want to scale and you have to, if you want to do remote. So like I just did a deal in Houston, Texas. It was a hurricane Harvey House. I never saw the property once, not once.
00:31:06 I didn’t go out there in the beginning, middle or end. And so I had to rely heavily on my. I’ve got a system I follow for my remote deals and it’s basically you gotta have a GC, you’ve got a budget higher than you normally would, right? Because if you want a good gc you’re going to pay for it. Yeah. So I go into every deal 20 percent higher than my competition so I got to work harder because I got to buy it less because I’m paying more, but I want to build in my management into the deal. And then my system is, I have a narc who follows up on the, I call them monarch, but it’s basically someone that goes out to the property here was the title until back to tattle tattletale. Yeah. And those guys are cheap. I mean, all I want them to do is go out there and take pictures and video and tell me what’s going on.
00:31:47 Kind of like a secret shopper and the GC never knows when the NARC showing up. Yeah. So he can’t screw with me. Okay. Yeah, that’s a huge as, I mean, that’s a huge nugget. Yeah. I pay him. So I find someone really local. Usually it’s a freelance photographer on craigslist because all I need them to do is go out there and take video and pictures and tell me what’s going on. That’s it. His need to know any construction, nothing. The need to talk to anybody. So he’ll go out there at 10:00 AM and say, oh, there’s nobody here now call my GC. No. So yeah, we’re working away.
00:32:18 No you’re not. And so now I take massive action to correct if we’re off off our timeline, but I don’t need to be there. That’s incredible. I mean you also, it’s really just about everything. So you got the, you got the narc and you’ve got the GC. Uh, that’s pretty much it. That’s all I need. Am I missing anything? No, I mean all what I’ll do is I’ll get all the very first thing I do, so when I get an overseas or with cs remote deal out of state deal, I’m the very first thing I do before I even picked my gc or anything is I decide who my listing agent’s going to be and I go for a top selling agent and I make them double as my designer. So they come in right from the very beginning and they tell me this is what you should do and not do because they know, right? They’ve got the buyers, they know their market right now. Don’t do this with any agent, but a really top selling agent and they love it because I tell them, look, I plan on doing 12 to 15 deals in this market. I get them to do it for a flat fee. My whole thing was the 1500 bucks. Oh Geez. Okay. Now you’re not going to like that.
00:33:19 No, no, no. As a broker. And he won’t stop talking to that model now. I’m offended right now. Okay. Uh, so then now that what will, what will be the net profit percentage of the deal, like a luxury, like what’s the target?
00:33:33 So I still try to follow the 70 percent formula. So Arv Times point seven, less repairs and that gives me about a 15 percent profit margin.
00:33:42 Okay. So 15 percent profit margin is the target after gcs pay agents page,
00:33:48 not in the bank. Yup. 15. And a lot of people look at that and they go, well, why aren’t you happy to make 200 instead of $400? The reason why is you’re taking a bigger risk, right? You’re borrowing more capital sometimes. Sometimes you’re, you’re not right on, you might have to sit a little. I mean there’s things that can go wrong. So six months starts, I better hit a home run. Yeah, I better hit a home run. So I want that. I still want that 15 percent margin. Yeah, on the. Even on the big ones. Okay. And you should like, you deserve it. You should.
00:34:20 Uh, so now let’s take a turn. Whereas that was, that was luxury multimin multimin as the same margin for multimillion 3 million target. Okay? Yup. Now new construction, not a lot of people are involved with new construction and talk about what new construction.
00:34:37 So your formula is not, it’s slightly different, but what’s, what’s, as the fix and flip formula, it’s a little different because basically in with fix and flip, you got two things. You got your house in the Rehab with new construction, you have your lot and the build, but you’re still dealing with kind of two things. So with new construction, everything is about price per square foot. Like that’s the measurement. You look at everything, so your build price per square foot and um, your, your and your sale price per square foot. So once you convert your thinking with new construction to price per square foot, it allows you to really understand how to look at, at that model. So, and are really general rule is whatever you’re selling for price per square foot. So let’s take $400 a foot price per square foot. You want to be building.
00:35:27 Now, this isn’t always the case, but it’s just a general rule. You want to be building for $200 a square foot, so you have your cost to build is 200 square foot. You’re selling 400 bucks a square foot. Obviously you have your lot now in there and your lot if you’re about 10 to 15 percent of your sale price. So I’m trying to ballpark a little earlier, but it’s good. It kind of gives you a way now to look at things. So, so, but. But what’s nice about new construction is all of the guesswork is gone. Like what I do is I run my numbers. I think I’ve got my numbers, but then I spend the money upfront for my design micro textural plans and I’ll spend 10, $15,000 typically on a set of plans, custom plants. When I say custom, I want to, I want an architect to build a plan on that lot capturing views or whatever the right layout where your project and you know it’s not Internet plans for a dollar a foot.
00:36:25 No, not when you’re doing high end. After you’re building a 300,000, yeah, buy it off the Internet and Plop it on a 50 foot ladder, so we custom build it. That’ll you’ll have to invest 10 to $15,000, but now you can bid that out and when you bid it out, you bid it to the dime. It’s all new, right? So contractors now there’s no guesswork and let’s just change something. There’s no surprises when we also guys. Yeah. Oh my gosh. Rehabbing. It’s like I’ve done hundreds of rehabs and every single one it’s like, well he didn’t know that was there and oops, now we’re over budget or we didn’t know the sewer line was.
00:37:00 So that’s what’s. It’s more predictable and think about it. You know, there’s nationally treated builders, there’s not very many nationally traded rehabbers. Yeah, because every deal is unique to the deal. Whereas construction, no, you can have a model and it’s. You can understand your costs upfront. So then when I bid it out to builders right now, I know my numbers and I can say, does this make sense? Do I move forward? So I’ve done lots of deals where I’ve invested 10, 15,000, found out that my cost to build is way higher than I thought right now. It doesn’t make sense. I don’t do the deal.
00:37:34 Yeah. And that goes back to one more time when earlier by 15 percent margin because you have these other deals where you’re spending 50 bucks every time for the guy to underwrite it and you got these hard costs that they’ll deal happens. You still got that hard cost. Yeah.
00:37:49 Yeah. But well here’s what’s so cool about new construction. The other thing I love about it is you can be way more creative on your acquisition with lots. So. So lot owners will sell their lots and they’re way more open to creative financing then they have to be. They have to because it’s dirt and there’s no value in it. Right? Right. Now. So I’ll buy a lot of my dirt, I’m on terms and a lot of times what I’ll do is I’ll get that lot owner to subordinate and carry. So they’ll carry it for me and they’ll subordinate, meaning they’ll take a backseat to my construction loan, the second lien, and now my construction lender will look at the lot as my acquisition as my equity and they’ll give me 100 percent construction. So now I’m doing a deal. One hundred percent financed.
00:38:33 Yeah. And
00:38:36 I didn’t put a dime down on the lot because I’ll tell the lot owner, I’ll see. I’ll give you 200 for your lot, but here’s what I need you to do. I need you to wait to get paid til I sell it, but it’s not selling. It’s sitting there and you haven’t been able to sell it. So all I need you to do is subordinate to my construction lender. Will it still leaned up? Second place, once we sell the house, you get paid your 200,000 and you get your lot moved. Okay. As now that $200,000 lot, the bank or my construction lender will now look at that as basically $200,000 down and then they’ll give me the six or 700 or whatever for construction. So a hundred percent financed. That’s incredible. So that are you still looking at the same profit margin of 50 percent for new construction?
00:39:18 Okay. So then how do you acquire those new construction? Well now you’re, now you’re sourcing lots and so you gotta, you gotta start to really understand what your new construction market. So you always start with what is new construction selling for? And that’s the same as flipping, right? What’s my arv? And we’ll call it after repair, we would call it new construction sale price. Right? And so you start there, now you’ve got the second thing you’ve got to figure out is well what’s it going to cost me to build that house that sold for two point 5 million or whatever. Start to figure out that number and then run your formula and get to your lot by and now you know what you’ve got to acquire your lot for. Yeah. So it’s pretty similar, right? With houses you, you right? So you, yeah. You back into your bi.
00:40:03 Yeah. So here you’re backing into your lot by following pretty similar process. So then at the same construct are the same gc that’s doing your rehab is at the same gcs building these properties? They’re all completely different DC. Yeah. So they’re builders. Okay. So I’ll hire a builder to do the new construction usually. So like is there like a builder that you, you like in town or. Well, so every market is different. So in my, so I do new construction in Utah and in Utah the builder like the be a builder is so competitive that there’s a lot of them. And I can hire a builder for a flat rate of like 25 grand. Like here in Arizona they want 15 percent, you know, it’ll cost me a hundred and 80 grand to hire that builder where I can do the same thing in another market for like a really low flat fee.
00:40:55 So I’m always trying to figure out like how do I do this? What’s the right way to do it. Fascinating. Yeah. Every market’s a little different. So the other thing we talked about, we talked about luxury with heights about new construction when the advertising about virtual flipping. So we, there’s virtual wholesaling and there’s some people that play in that space. I haven’t heard a lot of people virtual flipping. So talk about that. Well, fix and flip. Yeah, yeah. Well it goes back to that GC NARC system. You’ve got to really have good eyes on the ground and it’s still not full proof like I’ve gotten. I’ve gotten into some bad whenever I get over my head on a virtual, it’s because I’m not getting the right information. And My gccs taken me for a ride so I ended up, I ended up not having the quality that it needs to be because he’s cutting corners because he knows I’m not there everyday looking at it.
00:41:46 So the way that you prevent some of that from happening is you got to have a really good eyes on the ground. So my agents got to be eyes on the ground. My narcs gotta be eyes on the ground. MIGC better be an honest good GC. If you can get those three things then you can do deals remotely. Um, but I look at every time I go into remote market, I try not to look at one and done because there is a learning curve. Every new markets there’s a learning curve. So I look at it and say, I like this market. I like what’s going on here. Um, I’m in it for the long haul. I’m not so worried about my first deal as I am my fourth or fifth deal. Yeah. Right. So let’s, let’s find the right team. Maybe that takes a dealer to get that right.
00:42:29 I don’t do so well. I mean, I don’t want to lose money, but I’m. But I’m looking at it a little more long term than just like one deal. Okay. You know, it makes sense. But I have a, you know, I have a pretty healthy relationship with risk and fear and most people don’t. A lot of people that want to get into flipping, they really struggle with that fear and fear of, well, fear of messing up, fear of losing money and anybody I coach, I tell them, you’re going to like just, let’s just get that out of the way. You’re going to lose money on a deal and they look at me like, what? You’re going to lose money on a deal just as a matter of time. If you’re not, then you’re not in the game long enough or you know, you’re not, you’re not doing the game. Right. Because you know, nobody bats a thousand percent, right? I mean, what’s a hall of fame? Baseball player? 300. Three 50, 300. Yeah, I mean, that’s good. That means you’re not getting on base seven times. So I kind of look at it and I say at the end of the year did I win more than I lost? And make sure that, that margin, that, that really shows really good, but you have to, right? Because you’re not going to hit it. You’re not going to do it perfect every time on every deal.
00:43:38 Yep. Uh, so max has a question, we kind of talked a little bit, but you know, someone that’s wholesaling right now in this market, right? So that’s who’s listening right now, a lot of them, 25, 30, and they’re wholesaling today. So what advice would you give them? If they want to make this a pivot to not just flipping, but luxury flipping
00:44:01 well, so if you’re, if you’re wholesaling, what I would say to a wholesaler is really sit down and think about your end game. Very few wholesalers stay wholesalers. Yeah. It’s a hard life because it’s such a hustle life, so it doesn’t, it’s not conducive to, uh, really the, the ideal lifestyle for most wholesalers. Now I’m generalizing because there are some that just ramp their model up and they just crush it and they just stay wholesalers. But generally speaking, what I’ve seen is people transitioned from wholesaling into the next step would be starting to do some fix and flips because you start to look at it and you go, you know, I pass that deal off for 10 grand. That fix and flipper just made 40 wait a minute. What’s he doing that I can do? And you start to think about, well maybe I should transition into that.
00:44:51 And so those are some things to kind of think about, well, where do you want to be? We’re are, do you want to stay a wholesaler? Do you like that model? So much so that you could see yourself doing it in 10 years if the answer is no, then start to think about what that looks like and what do you need to learn, what he needed to do to kind of start to transition into that. And that can be a two year plan. I mean, for me, I did it two years, five, six deals a month and I was happy as could be. It was great. Um, but I looked at the business and I said I want to always progress. How do I learn? What’s the next thing for me to do to progress in my journey? And it’s either do more wholesales or transition into higher profit deals.
00:45:31 And so that’s kind of one thing to really think about with, with a wholesaling. Okay. Well I like that. Um, so is there anything that you attribute your success to because you know, there’s a lot of people that flip [inaudible] what, what, what’s, what’s been the key to your success? I would say a b. developing my mindset more than anything else. So when I, when I first started wholesaling, I knew my mindset was wrong. I had a really bad mindset, scarcity mindset. I grew up poor. I had a belief that success was directly correlated with how hard you worked. As my dad taught me, good principal and I’m. My Dad taught me the same. Yeah. But it doesn’t equate to money like there’s no relationship. You tie the relationship. Yeah. So I thought I’m gonna if I work really, really hard for a long time, then I’ll see the fruits and it’s taken me a lot of work to change the mindset to more of a work smarter, not harder to get ahead and more of a, a business mindset.
00:46:32 And so this, this is like the biggest thing I could say to somebody is, especially wholesalers, don’t focus on doing a deal because maybe you do a deal, maybe you make some money, but in flipping every deal you do, you’re out of business, right? You got to do another deal to make money again. And so, so many flippers chase a deal instead of building a business that does deals. Yeah. And if you can adapt the mindset of how do I build a business that does deals, because now you have processes, you have systems, you have, you start to build a team, you start to think outside of chasing and hustling and doing a deal, and that’s the only way that you can really scale in this business and maintain a good work life balance and have a good lifestyle is you’ve got to develop out the business side of this. And I see so many wholesalers that just, they just focus on the deal, the next deal, the next deal, and they’re inefficient and they’re working really hard, but they’re not getting ahead. They’re, they’re, no, they’re no better off than they were last month or last year because they, they’re not developing out the business. So the business.
00:47:41 So let’s talk about that little bit because we talked about, you know, you got your guy to underwrite or 50 bucks and you got, you got an arc and the and the GC. That’s property specific for the most part. Yeah. So your operations today, right? So I mean, how many flips you have going on right now?
00:47:55 So I’m just a handful. It was a half. Yeah, I just do. I just have a handful of deals going on right now at any given time. So who, who is on staff in your organization? So everything I’m doing on my own ideal business, everything is a location specific, so whatever, wherever I’m doing a deal, I’m going to build my local team there. Okay. And that’s my GC, monarch, my agent. Those are my three key people, you know, titles important. But that’s not as critical, you know, but those are my three. Maybe a designer if I’m doing higher end than I needed, I need a good designer but I’m going to build my local team there. And then the other thing that I do that’s been really instrumental to my business as his bird dogs. Yeah. So I mean I used to do a million mailings, literally a million mailings a year, 2012.
00:48:45 I did a million mailings. Like that was my total mailings. I did and I did crazy marketing and now I’ve transitioned. It’s taken awhile. But now I’ve got bird dogs are nationwide and I teach them, here’s my criteria, here’s tools to go, like find deals on training and teacher, but find deals that meet my criteria and bring them to me. So now I no longer chased deals. Deals chased me. Yeah. And I mean, you’re bringing me some deals. And so, uh, so yeah. So that’s kind of my model now is if you buy into the bird dog model, it’s the most brilliant model ever, right? Right. Wholesalers, Bird dogs, finders. I kind of put them all in the same category. It’s other people that are willing to do the marketing than negotiating the contracts and bring them to me as long as they’re in my formula. I don’t care how much they make on a deal as long as it fits my criteria, my formula and that now has, has allowed me to really stop all acquisitions department completely.
00:49:46 Yeah. So you don’t have to have an acquisition department, a marketing department. It’s just the old come. If you build a good referral network, a good bird dog network. So then the other part we’re talking about was you’re either gonna flip, we’re going to wholesale. Yeah. So on the wholesaling side, are you the disposition arm? So the one that’s passing that on.
00:50:04 So my, my, uh, my same guy, so we have a process where we basically, if I don’t want it, but it’s a deal we call wholesale, so I don’t even want to develop a cash buyer list. What I want to develop is a wholesaler list because what I found is other wholesalers that are doing that business really full time, the players, they’re going to have a better cash buyer than I would or that I’m willing to develop. Yeah. So I’ll go to, I’ll go to you steve and say, Hey, I got this deal, a shopper to your shop it to your buyers and we’ll call wholesale. Yeah. And even that has worked brilliantly and I don’t even need. I can find the players on craigslist in about an hour, right? I can, I can find them, I can talk to them and I can call wholesale a deal in an hour if it’s a deal.
00:50:50 Yeah. Because if it’s a deal, those guys are going to have buyers ready to go. Right, and they’re glad they’ll gladly call wholesale with you. Yeah. Simple JV agreement done. Okay. That makes a lot of sense. In a lot of those are 20 grand, 30 grand gross that you’re, that you’re splitting with that wholesaler and so it’s a little different mindset because everything you learn about the businesses, build a cash buyer list, build a cash buyer list and then do this, do this massive acquisitions and you are, if you want to dominate as a wholesaler and own, own the whole thing, right? Acquisitions to disposition a. But since I’m kind of more focusing on higher margin flips, I don’t need. I don’t really need that model so much as not as not as critical to your operation. Yeah. So yeah.
00:51:36 Let’s talk about markets because you talked about Hurricane Harvey and whereas obviously here, heard about what you thought. So what markets are you? Are you, are you virtually flipping in?
00:51:45 Well, so it really doesn’t matter if somebody finds a deal that meets that criteria. I like, I don’t care where it’s at in the US. Okay. Now I have a few rules like I don’t like low end, so my, I mean ideally like I was saying earlier, I love the three to 600. I get really excited there because I can learn that model anywhere. Yeah. It’s, that’s an easy one to learn over 600 in a market, I don’t know is a little more work because there’s some nuances there because now you’re hitting luxury and that’s going to change market to market even what you do, you know, and what that buyer wants. Uh, the under 300 I don’t get so excited about and I won’t touch anything that ARV less than 100. Yeah. One hundred and 50 because it’s just for what you will make on that.
00:52:28 It’s not worth the time, energy and effort if you know how to make more for the same time, energy and effort at a little higher end. Yeah, right. Oh yeah. Oh, it makes a lot of sense. Yeah. Like I honestly, Steve, I see the flippers here in Arizona and it blows my fix and flippers. It blows my mind how competitive it is at the $200,000 price point, how little margins they make and how they’re. There’s one after another that’ll do it. I just, I don’t understand it. I don’t understand a five or $10,000 profit margin doing a fix and flip. Right. Well, for the risk. Yeah, there’s, there’s easier ways to make five or 10 grand. I mean the wholesaler made more than you did, right? Usually.
00:53:10 Oh, I think that’s kind of the attitude you see in there on our facebook farms. They’re like, man, the wholesale is, is he is eating better right now in the flippers are.
00:53:17 I did one. I did one this past summer. Steve, it was A. I picked up a package back in, back in Detroit, old park, Michigan. It was five houses from a burnout. I picked them all up and these were, these were my old model of 100 2,550 arv, little thousand square foot brick ranches. Twenty five grand easy rehabs. Like I just, I can do that in a, like in my sleep and one of them I was like, you know what I had done the other four. I’m done with this, I’m bored with this. I’m just going to wholesale this last one. I make two phone calls and I wholesale this thing for like 32 grand to a fix and flipper and I know what it takes to fix them up. I know what it’ll sell for and I’m like, he’s going to make 15 grand if he does everything right, he’s going to 15 grand.
00:53:59 I just made 32 wholesaling it so I get it. I mean I see why now there has been, there is no better time to wholesale, but here’s the thing, here’s the tradeoff. Harder to get deals, make more money than you’ve ever made wholesaling because the buyers are overpaying their way out of formula. They are like in Arizona, I think I talked to one wholesaler that does about 80, 80 wholesale. Don’t know if you know Dave Maclennan. I know of him. Okay. Super. Great Guy. Good friends. I grew up with him, so I know him for a long time. He told me, he said, Jerry, my cash buyer formula is 82 percent. Eighty two percent. Yeah,
00:54:38 that’s what it is right now. That’s what it is today. It’s 82 percent minus repairs. I don’t, I don’t know anyone’s paying 80 percent outright, but 82 percent less repairs. Yeah. Two percent less repairs. That’s been the form of about a year now.
00:54:51 Five percent, maybe 70 percent, right? Like, so all my God, I can’t. So if you’re in, if you’re in the low end business, if you’re going to flip in the 200 price point, do not be a fix and flipper be a wholesaler because the wholesalers are making all the money, right? Because they’re there, they’re getting off market deals, they’re making 25, the fix and flipper who was doing all the work, taking all the risk and taking all the risk is making 15, 10. Yeah. Crazy. Crazy how that is. But it’s because it’s because it’s harder to find deals. So when you get that deal, there’s a lot of meat on the bone. Yeah.
00:55:26 Uh, so we already talked about flipster it has the name of your, that’s my software, your software. So is that the tool that you can’t live without? Yeah, that’s the tool you can live without. Okay. Uh, and then what would you do if the market dips?
00:55:43 Well, so I’m the fortunate thing about flipping is you really should, you really shouldn’t get caught in the market because you’re not in it longterm. Right? So what I luxury though, you’re in a, in luxury, you are in it a little bit. So there is, there’s more risk. There’s especially like the Paradise Valley, three to $5,000,000 homes, those are 18 to year turns, so you could definitely get caught in some of those. Um, I actually hope that we flattened out and we level out some more in the market. And the reason why is because I think the majority of flippers will go away because they’re surviving on accident right now. Yeah, because they’re writing and appreciating market. So they’re screwing up and still making money when it’s a, when it’s a flatter market, they go away a lot quicker and then you’re left with just people that know what they’re doing.
00:56:34 Yeah. And I won. I think it would help the real flippers and I don’t mean that in a disrespectful way. No, not at all is we have the same exact manner in real estate, right? Like you can have an appreciating market even with price it wrong. So. So yeah. So if the market will just flatten some then all of these flippers at 82 percent making 10 or 15, they will go out of business because they’ll start losing money. Right. And they only need to lose money a couple of times before they go back to the job or whatever. Yeah. And so then we’ll get back to more healthy formulas and it won’t be so competitive on the, on the, you know, the buy side. And I mean when I went through 2010, I didn’t slow down one bit. Um, I had to work a whole lot harder selling, but I could buy any day of the week, 2010 world foreclosures were like, like reo is, I would just buy oreos like any day I wanted, but then, but then it was like getting your buyer to qualify for financing was a whole nother story.
00:57:34 But I did find them. So what is your biggest struggle right now? Well, it’s the same as everybody finding deals, getting deals, you know, so because the challenge I have right now Steve, is because so many flippers will pay 82 percent and I want to be at 70 percent. The player, the wholesalers that have a list, they can make more with their lists than bringing me deals. Right. That’s my biggest challenges. I’m having a hard time from the serious, like a player wholesalers who are good at getting deals because they can make more with somebody else. So where I’ve had to really rely on is the entry level new bird dogs, bird dogs that don’t have a cash buyer list. Don’t know that they could get more if they did and they bring them to me, but they don’t know how to get more also.
00:58:23 Right, right. They wouldn’t know. They don’t have a buyer’s list yet. Right? Yeah. So it works, but it means I’ve got to cultivate 10 times more bird dogs because nine out of 10 don’t stick with it. Yeah. Okay. And then what would you consider to be your super power systems? Yeah. Systems having a business focus on this. You know, if you think about it, Steve, if you’re a onesy, twosy, flipper, let’s take fix and flip and you put all your focus in finding the deal, all your focus in managing the deal, all your focus in marketing and selling the deal, and you can turn a deal in four or five months and then you start all over again. You’re only going to do three deals a year Max. Right? Right. And that’s how most flippers operate there. There are three to five a year company, but they could easily do 10 or 15 and half the work that they’re spending right now, if they just learned how to develop out some systems with technology and, and some team people.
00:59:22 Yeah. And there. And they would make way they’d make way more money and they’d have way more time and freedom. Right? Which is the end goal, which is why everybody does this in the first place. Like, why are you doing this? I found that I went from one job to another job. I made more money, but it was just another job and that’s not why I did this fulfilled. Yeah. I wasn’t fulfilled. So focusing on that lifestyle first is key. Absolutely. Uh, was the greatest lesson you’ve learned that success in this business is 90 percent mindset, 10 percent skill. You can learn how to wholesale. You can learn how to fix and flip. That’s the 10 percent. But if you don’t, if, if you don’t have an abundance mindset, you don’t have a healthy relationship with money and how that works with time, with success, then you’ll, you’ll just self sabotage.
01:00:07 You’ll never, your thermostat will reset back to broke and back to struggle and back to hardship and back to scarcity. And that’s so incredibly true about the thermostat. Um, so for you guys, I don’t know, you got your temperature Thermostat, right? If it says 75 and the room gets hotter, AC turns on and gets lower heat heater turns on. So we all have a financial thermostat and if you’re accustomed to a certain amount of money when you start, when money starts coming in, you find a way to blow it to get back to the same consciously. You don’t even know you’re doing it. Find a way to do it. And we see that with people that win the lottery. And I did that for a long time. I was roller coaster and I’m like, why am I broke again? I just made money, you know?
01:00:47 And so I had to really work on that. And secrets of the millionaire mind was transformational for me. T harv Eker, his book, I still listened to that book a couple times a year on. Oh really? Yeah, I’ve listened to it 25 times. Yeah, because I got to go back and make sure my, my, uh, know my well files are, are aligned, my affirmations and because you know, these things are ingrained in us from our childhood, they’re not easy to eradicate programs crammed in there deep and they’ll resurface, they’ll, they’ll rear their ugly head. You know, the other thing I think Steve is, um, you know, what I tell people is make more offers. And so I have a belief that if you make 100 offers a month, that’s five a day, five days a week, 25 a week, 100 a month. If you just do that, you will get a deal.
01:01:35 It’s the law of averages. It’s just, it’s just how it works. Exactly. But most people aren’t willing to do it. No, they’re afraid of rejection. They’re afraid of rejection. That’s the exact reason why they’re afraid of rejection. And I, I tell people this and they get to offer number 40 and then they say to me, you know what? This doesn’t work. And it’s like you’re giving up too early. Make 100 offers. You will get that deal of a lifetime. If you’re willing to make 100 offers a month, all right, just do it. Yeah, let it roll off your back. When you get the rejection, don’t sweat it and just make more offers. If that property still available. If they’re asking one 80 and you offer 1:10 and it’s still available next week. Offer again. Offer again, offer. Again, I can’t tell you how many stories where you know it’s, it’s listed for one slash 20. You offer 60. They say no, you offer Ganja, Ganja for again, six months later they take your 60. Like that happens more than you will think if you’ll just do it.
01:02:28 Yeah, right. Oh yeah. It makes a lot of sense. So Shawna Danda, uh, Amanda had a question. Is flipster a mobile app or a desktop APP?
01:02:36 It’s mobile friendly. So you log in just like you would on the desktop and it works just fine on your iphone or ipad. Yeah. Yeah.
01:02:43 So they want to learn more about flipster. How, how did, how did they do that?
01:02:46 So flipster, if you go to flipster software slash 97, that will take you to a, a video, you can watch where it goes through all what it is, it’s about a 10 minute video and then they can, you can decide a, there’s three different levels of it and then you can decide at the end of that video if you want to do the basic pro or prime. Yeah. And you get more things obviously, depending on which level you go. All right. Yeah. So it’s a monthly subscription. Yeah. Yep. Cancel anytime. Yeah, but you’ll find that it’ll, it’ll change your life. What I tell people is if you’re brand new follow, follow the flipster system of doing the data entry and the, you know, tracking everything. The temptation is, you know what, I really don’t need to do all of this because it’s just I got one deal going on and I can already know everything about it. But if you, it’s like anything. If you build the right mindset around it and the process, then when you start getting the three and four and five, you’re, you’re jamming. Man. You can do it, you can manage it.
01:03:52 Yeah. Yeah. Um, and then guys, this jerry is always looking for deals. Has got you built a nationwide referral network of bird dogs and if you want to send them the oldest pretty simply I do is. And you get paid $10,000. Yeah. Yeah. So he’s got the capital, he’s got the system and fixing them up and he’s selling them. So if you’re new to real estate one, ready to go by her or a seasoned wholesale, you want to get more serious cash. A biotech deals to just go to find houses, get paid.com, Fin d, h o u s e s g t id.com. And from there you can see a web training on how to get started on how to bring you deals. And then he’s also got that project we talked about earlier. It was real estate freedom TV. Definitely check it out. Uh, I, I watched a few episodes is pretty exciting. Oh cool. So, uh, and again guys, if you liked this show, please share this episode right now. And next week we do have Brian Cankdeska. He’s coming on, he’s another volume flipper and in our market, so he’s going to talk about his way of flipping and then I would be very interesting. Thank you guys for tuning in and thank you. Yeah, my pleasure. It’s been great. A lot of gems out of this. I’ll see you guys next week.
Ron Rana talks about how he went from selling cars to becoming the top wholesaler in Houston in just two years!
To watch the video replay, please visit www.realestatedisruptors.com/interview/interview-with-ron-rana/
Ron Rana talks about how he went from selling cars to becoming the top wholesaler in Houston in just two years!
Video Replay of Interview with Ron Rana
Podcast Replay of Interview with Ron Rana
00:00:00 Hey everyone, thank you for joining us for today’s episode of real estate disruptors. We got a real special once a day. We got Ron Rona with investopiaonline coming in here from Houston and he’s here to share how he went from a car sales to top wholesaler in Houston. If this is your first time tuning in, I’m Steve Trang, broker and owner, a stunning homes realty, founder of the offer fast homes APP, the one app you need for wholesaling. And I’m on a mission to create 100 millionaires. So please private message me if you ever need any help with your business. You know, I got some of you guys reaching out to me now. I appreciate it. It gives me the opportunity to give back. And if you are excited for today’s show, please give me a wave, give me a thumbs up.
00:00:39 And as a friendly reminder, I do not charge a dime for this show. I don’t make any money doing this. So here’s all I ask. This is all it costs for you to listen to this show. If you get value today, please tell a friend by sharing this episode right now, tagging a friend below or telling your best takeaway from the show later on. That way we can all grow together and we do have a special announcement. Ron’s given away 100 bandit signs. Uh, so all you gotta do is stick around to the very end. Um, and we’ll let you know what you’ve got to post. And we’ll pick a winner today at the end of today’s show. I’m excited for that. I didn’t know about that. I just need your checkbook. We’re good. Absolutely.
00:01:17 So where’s your camera? Which ones? Which ones are live right now? All of them. All of them. What’s up guys? What’s going on? Ron? Ron, I hear all the way from Houston, Texas. Big shout out to this guy here for inviting me out to. I had a two and a half hour flight, but I’ll only do that for this guy here. So you guys stick around in the video. I want to be given away some, you know, excellent content free content, right? Where can you go? It’s not Youtube University. This is live, so you guys have any questions, ask me. Make sure you guys are clicking the like button. Send me a few hearts. I won’t mind. My wife won’t mind. Don’t worry. Make sure you know, uh, if you like in the video, make sure you’re clicking it, all that good stuff. And uh, appreciate you having me. Thank you.
00:01:57 Oh, I’m glad that you can make it. Yeah. Alright. So first question, what got you into wholesaling?
00:02:03 So, you know, wholesaling is, is the gateway drug to real estate? Yeah. Right. A lot of people say, how do I get into real estate investing? I don’t have any money. I’m broke. I owe my mailman 500 bucks. I mean, you know, you owe somebody, somebody’s ego, somebody money. Right? All right. So I’m wholesaling is, is a fantastic a gateway, you know, to get into real estate investing. I always wanted to get into real estate investing ever since I was a younger, as a child. Um, so, so much that when I was about 16 years old, I bought a course from Carlton sheets. Okay. Do you know who that is? I was an infomercial guy. Yes. So I actually still have video cassettes of him. Uh, yeah. I had to wipe the dust off the other day on the day. I still have the video cassettes and uh, I’ve always wanted, I’ve always had a passion to grow in my life, right?
00:02:53 To achieve a financial freedom and having time for my. Even though when I was younger, I always aspired to be able to be on the beach, you know, go out with the vacations. You said those, those postcards, right? You want to do all of that. So, um, but yeah, that’s, that’s kind of why, you know, I got into the real estate business and wholesaling was, was fantastic because you don’t need any money. You, you do need some kind of education, that’s for sure. You need to educate yourself. Right? Um, so, uh, but the good thing is, you know, it’s a minimum risk, but great reward. The risk that you’re taking on this is, well, I wouldn’t say really these minimum risk because you are taking some level of risk because you’re dealing with real estate, right? So minimal financial risk, it’s minimum financial risk, but a lot of time it’s a lot of time work.
00:03:45 Absolutely. So time off. I have no idea what that is. Days off, I don’t know what that is because we work, my wife and I work this business, round the clock 24 hours a day at 3:00 AM. I get an executed contract. Boom, let’s go. We’ve got to blast it out. So we’re working, but it’s a blessing to write. I worked from home. I get to spend time with my children, you know, when I want. I don’t have to ask anybody to take a day off, you know, um, I don’t have to use obamacare when I get sick. Right? So, um, I, we get to go on vacations all the time. We go to the Caribbean every year. We were, we were. Yes we do. We cruise every year. So we’re cruise addicts. Um, if we’re not on land, we’re on. See, that’s. So I’ve got to field this lifestyle, right?
00:04:30 And how am I going to feel this lifestyle? The car business can get me so far. Right. And then that’s when you have aspirations to become bigger, uh, and uh, as far as, uh, adding, you know, to my pocket book and being able to afford that lifestyle. I wrote, I read something the other day, it said, um, I worked my ass off because I like expensive shit. That’s why. That’s, that’s, that’s right there. So anyhow, that’s how I got in. So let’s talk about that, because you mentioned the car. So you were selling cars. How you said how long ago? Eleven years ago. How long ago? It was a while. I quit the car business. Uh, about two years back. How long were you there? Uh, in the car business? Eleven years. So you’re in the car business for 11 years? Yeah. And then something clicked. What happened, man, it was so, can I be blunt with you and with your viewers?
00:05:19 Of course. All right. So I had a, um, you know, corporate America is funny, right? It tells you, Hey, get a degree, get a job. Uh, you know, get, get promoted and life will be easier. That is the biggest lie that’s fed to us, uh, in, in our country. Right? Um, and uh, I did all that. I was a salesman. I became a sales manager. I started spending 14 hours a day away from my family. It’s not what I wanted. I’m a lifestyle for my, for myself and for my children. Yeah, that’s the reason why I started is because I wanted to be able to spend time with them. You’re either time poor or your money poor. I was time poor. I will come home 14 hours, work in a day, don’t get to see my wife, my kids, you know, they’re asleep by the time they, I basically leave in the dark and I come in the dark and a lot of you guys can relate to that because a lot of you guys are probably in that same situation right now.
00:06:13 Um, so give us a thumbs up, make sure. I don’t know who’s. I’m not viewing this live right now. Twenty seven people on right there. We go. Well, we’ll need 27,000 people on right now guys. So make sure you guys are sharing all that good stuff and putting your comments. But uh, I mean that’s kind of pretty much it. You’re either time poor or your money pork. Right. And I was a time poor. I made good money in the car business. I wasn’t, you know, uh, sorry, salesmen, I was good. I made a name for myself. It wasn’t much money. You can spend it with your family. Exactly. And that’s what I, that’s what I didn’t want, you know, I’m in, it’s about spending time with my kids and my family in general. But not only that, but leaving a legacy, you know, you either you either hire somebody to build your dream or somebody would hire you to build.
00:06:55 There’s exactly right. So I was building somebody else’s dream. Right. And you only can go so far doing that. So I decided one day I’m done with this shit. It is what it is. I actually had a, I had a general manager of a car dealership telling me to get the f out of his office. That’s the last that I quit that same afternoon. Oh yeah, that’s the last time somebody would ever speak to me like that. Ever. Well, that’s why I got into here. So let’s talk about your journey then. Like you. So you quit. What were some of the early mistakes, early struggles when you, when you, when you got in, you know, they say fail forward, fail fast, right? Yeah. Um, I failed a lot. I struggled a lot in, in the beginning because I wasn’t going out and networking with people. And your network is your net worth, right?
00:07:44 You have to be able to talk to people. You’ve got to be able to tell them what you do. You’ve got to be out there. I was never out there like this. Like you’ll see me on social media, you know, I’m posting and I’m doing this and that and videos. I was never like this. Right, right. Um, I wasn’t always bringing the energy. Right. So, um, and it’s Kinda, it’s Kinda pretty much it. But uh, so that’s, I mean, that’s, that’s, that’s why I think that’s the biggest thing is, is the struggles is you got to go out and network with people. You got to tell them what you do. I mean, you’ve got to eat, sleep, breathe real estate if you are going to be successful in this. And I’m the type of person is I don’t get up and do yoga for five, 10, 15, 20 minutes when I wake up.
00:08:22 I don’t. If I’m going to do this, I’m going to do this. Like, let’s get up, let’s get to business. I need deals. Right? So that’s just, that’s just what it is. Okay. So, uh, so you mentioned hystopia online. So what is that? What is the most opiate online? So Invest Topia online is not only a wholesale outlet, a is basically a brand that we have built. So, um, and we are accredited by the better business bureau, which is a fantastic, you know, that’s, that comes with the wood. It gives us a lot of trust when talking and selling to sellers. And it’s funny because I’m sure everyone in Houston is probably watching this and not, you know, now they know I’m getting so many deals. Yeah. So, um, but I told your viewers I would be transparent with them. Yeah. So I’m being accredited by the better business bureau has catapulted me in, in building trust with sellers in solving their problem.
00:09:18 In other words, um, you know, people wake up and want to be wholesalers, but you got the overnight wholesalers, right? I’m not here to be overnight wholesaler. Um, it was a lot of fly by night guys. There is a lot. Yeah, absolutely. And those forms, right? Like, I’m done. Oh yeah, I’ve done this. It’s been two months. I haven’t got a deal as I get the hell Outta here. Yeah, yeah. No. And then they, and then they bash our industry in, in what we do here and say, oh, this, this doesn’t work, you know, oh, this is a scam. You know, it’s a bit coin scam. Like, come on, man. No, you, you didn’t work. It didn’t work because you didn’t get up, you didn’t sacrifice and you didn’t get paid. You didn’t pay your dues. Simple. Yeah. That’s it. So as a quick aside, you know, I saw that you pulled up in your model three, so it was very nice.
00:09:59 Uh, that’s uh, it was funny because I create a vision board last Friday. That’s top right corner vision board. Is it model 30 performance? It’s a nice car. Uh, I, I’m floored it and it, it’s sucker is a beast now. So it’s not disclaimer, right? I don’t live in Arizona. I had to rent a car and uh, you know, I like it better than a Toyota Camry. I’m a car guy. The last time I was here I rented a slingshot, but that’s, you know, I’ve been around cars such a long time or is this, you know, it’s a part of the lifestyle. Like I know it is what it is. So it seems like, you know, on the outside looking in, you’re rockstar overnight. So what do you have to say about that? You don’t hate me or love me now you know me. Grant Cardone, right? A lot of people come in hate. It’s like damn, where this, where’d this guy come from? Men, you know, boom. Like I literally like a blind sided. A lot of people. Yeah. That was because I was there, but I wasn’t there. But when I was ready, I’m ready. I’m going to come out when I’m ready. Right. So, um, wait, that didn’t sound right.
00:11:08 Okay. So basically what I’m trying to say is that, uh, when is my time to shine, that’s what I’m, that’s what I’m going to be out there, right? Yeah. So it definitely wasn’t an overnight success. We had our struggles. Um, man, we had times in our, in our life where we couldn’t afford a gallon of milk, you know, we had people coming in and asking for rent money, you know, knock, knock, where’s the rent money, you know what I mean? We’re overdue were past due. So, um, we, we understand that struggle. I was raised by a single mother and that’s one of my wise also was be being able to retire my mother. Uh, and, you know, I was, we’re able to do that and she, you know, she’s uh, uh, she’s looking to her late retirement now. Uh, but social security will not be there when I’m her age, there’s going to be depleted, you know, I’ve got to look for something else in order to build and sustain a true, true wealth.
00:11:58 And that’s why I looked into real estate. But my mom is a big why she lives with me. And it’s such a blessing, man. I can’t tell you how much of a blessing it is to have somebody, you know, in our culture, our culture is, it’s no different than your traditional, you know, you get an 18 year old or your parents get older, you throw them in that we don’t, we don’t have old people homes in our culture and we don’t. We take care of our, our, our parents, right? Yeah. Um, so my, my, my parents divorced when I was real young and um, that was one of my wise is to be able to retire my mother and um, you know, because I started hustling, I started struggling, you know, early on in my life way before I met my wife. I mean, I was out there.
00:12:40 I’m doing what I needed to do in the car business came, came later. Well, I love that because, I mean, even Rafale Vargas, when he came on, he’s like, his why was he retired? His mom and his mom was not working. So that’s pretty cool. Absolutely. It’s a big drive, you know? Um, it’s satisfying to me to be able to see her not struggling now to work for 80, you know, 60 hours a week to pay rent or I’m sorry, pay bills or, or anything like that, you know. So it’s, it’s a blessing. It truly is. So if you were starting today, what are the first two, three, five things you would do to get your wholesale business running from zero? There’s probably not enough time that we have. There’s a lot of stuff. But, um, I mean, you know, the thing is about this, about this business is that, you know, I’m going to go back to the fail forward, fail fast, tend to deal.
00:13:34 I mean, you’re going to make mistakes, man. You know, I got in, I didn’t know anything about this industry, right? I didn’t, I really didn’t. I was selling cars, you know, and I wasn’t, I was looking at these courses while customers were coming in and out, you know, I was on the lot, I was taking, you know, I’m sitting there on my phone like, you know, and uh, and stuff like that. So waiting for the next up, we call them ups in the car business. So. And you wore a suit in Houston and you could not come in until you took it up. That’s the carpet business really. So absolutely the grind, the grind was always there in other words. So I’m getting into this industry, you know, and I credit a lot to the car industry, you know, a lot of people don’t know this, but Greg Cardone came from the auto industry.
00:14:18 He was a salesman too. So if you’re reading, I heard about really? See, I heard about GC when I was in the car business, you know, all that from starting in car sales. Well, he started as a car salesman. His wealth came from multifamily, it’s indication. But uh, he was a car salesman. Yeah. There’s youtube videos of him going to his old dealership. And saying, hey look, here’s what I was salesman, here’s what I was taken up, you know, stuff like that. So, but uh, but yeah, you know, there’s, I see, I see a lot of people who try to hire car salespeople. We are a different beast. Yeah. My sales like my salesforce, you can’t, it’s, it’s a whole different beast.
00:14:56 So, so I was at the edge where the Dean Grasiozi and he was like, you want to build your wholesale business? Go car shopping. I was like, man, I don’t know if I can go on a car lot, get these guys’ hopes up and try to recruit. That just seems all sorts of screwed up. It’s a different beast. But you’re saying those guys are ready for it.
00:15:16 Oh, absolutely. Absolutely. I have some little jaded. Maybe I’ve got. Yeah. I’ve got a lot of. I’ve got to a lot of guys out there who want to come and work for me that come from car sales and then I see people posting on social media. I’m looking for car sales guys. You don’t want to hire those guys, man, they’re scumbags. But you’ve got to learn how to, you know, you gotta know that lifestyle too. Yeah. Alright. So what do you attribute your success to them? Um, I would attribute my success to first and foremost, glory to God if it wasn’t for God himself, you know, blessing, uh, myself and my family to be able to do this. We wouldn’t have a business at all. Okay. Um, second definitely would have credited my wife. She has been a driving force for me. Um, you know, in this business is so hard to get spousal support.
00:16:07 What I’ve learned, um, because because, you know, we’re known as a power couple in Houston, so people come up and you guys are a power couple. How do you guys do it? She brings the same level of energy as I do, you know, and people say I have a lot of energy. I mean, you know, it is what it is. So, um, but yeah, that’s the, I would attribute my success to her selflessness and being able to support me, you know, because when I decided to do this, we were just talking, you know, say hey, I’m thinking about quitting the car business and next day I show up and say I quit and she looks at me and she goes and I can see it on her face. Right? We’ve got two kids, when the hell are we going to do. Right, right, right. But she’s like, okay, well what’s the next step? What are you going to do? Yeah, she’s supportive, right? So she’s been extremely, extremely supportive, uh, of myself and my business. And that’s a huge factor. Huge factor because I meet a lot of people who were spouses are not
00:17:03 supportive at all. Oh, anytime you’re doing commission only is it tough on the marriage? No, absolutely. So the way I met you was at a cody sperber event, right? So, you know, I’m sitting there where the, where the common people sit, right? And you’re up front of the VIP section or whatever, and he brings you up on stage and you’re talking about like, your, your, your great takeaway was that, um, you know, you were there, you’re talking to I think the wife or the husband and they’re like, well, I need to talk to my, my husband or my wife was like, oh, no problem. You have an iphone. He has an iphone. Yes. Alright, let’s time right now. Yes. And that’s it. You just squash that objection, right then and there. I did. So. But my point of all of this is that you’re investing in your education. Yes. Right? So can you expand on that?
00:17:46 Absolutely. Um, so I’m not in telling people that you need to invest in your education in this industry. If you’re going to invest in something, two things you needed to invest in is your marketing and your education. Okay? Marketing should never be viewed as an expense. Remember that? Because it will pay you 10 folds. Um, so expense wise, the reason why I’m here in Arizona today is not only to be on your show, but I’m here to meet cody sperber and Dean Graziosi. So I’m a part of their mastermind and a, yeah, you’ve got to invest in your education and make sure that, you know, you have a kind of the right mentors, you know, because without the right mentorship in this business, you’re going to fall, you’re going to fail quick, real quick. And believe me, people who say youtube is, you can learn everything on youtube.
00:18:37 That is bullshit. When you get in a title issue, Youtube University is not going to come out and save your ass. You know what I mean? So I’m in. That’s why I’m so passionate about this is, you know, listen, when, when people come to me and say, Hey Ron, what do you charge for mentorship? I’m, I’m against the 40, $50,000 mentorship programs. I truly am. And how I was able to, you know, blow up so quickly and so fast and become successful is that, you know, you just level with people, say, Hey, you want to learn from me, let’s do a deal because you’re never going to know how to encumber a title or, or get into a deed issue if you’re never in it, you know, I can take your money if you want me to, but you can’t afford me. It’s just what it is right now.
00:19:20 And um, when I got in that kind of made me sick to my stomach learning that people, you know, Rich Dad, poor dad type of deal, taking people $60,000 is just not right. You know, and not at their credit cards haven’t pulled out. He locks. Yeah, yeah, yeah, absolutely. You know. And uh, I, I have some testimonials on my own people, right? You know, uh, for me, uh, like testimonies and stuff. We do deals together. I do deals with new wholesalers all the time. Uh, just the other day, I don’t know if you’ve read it, the guy who had to do. Yeah, yeah, yeah. If you want to go, you can talk about it. Yeah, that’s fine. Oh, well, I just saw that it was, you made a really easy experience for them. Yeah. So the guy was contemplating suicide attempts, right? He was married, he had been previously incarcerated.
00:20:01 He learned about wholesaling. I talked to him, he called me and my phone is always ringing off the hook. I mean we just is. This business is what it is. I don’t have five minutes to spare for somebody. It’s just, I’m sorry, but it’s just we’ve got to keep moving and doing what we needed to do. Right. Um, so he calls me, I hear the shakiness in his voice. I spent about two hours with the guy talking to him, learning about his journey, his goals, you know, stuff like that. So we just closed our deal and we made a 12,500 on the deal. He never made two grand in his life. He only made $2,000 and that was, that was kind of pretty much it. So he has a whole different outlook on life. And um, you know, there’s, there’s a few other success stories out there that we’ve done double digit to, you know, assignment fees, 37,500 assignment fees and these people that they’re not used to that type of money know.
00:20:53 And the first thing I tell them is, listen, you need to take that money and you need to put some in savings and reinvested into marketing. That’s, that’s the biggest thing. That’s huge. It is a. So seeing some of your marketing, you know, I’m going to guess one of your ways of sourcing deals as bandit signs. So is that your number one lead source? Uh, so yes. So a lot of people see me in, in Houston and they see that I do bandit signs, right? Yeah. Um, but not just do bandit signs, you go crazy with abandoned science. Okay. You mean like renting a u haul to go pick up bandit designs? Yes we do. Um, so we, we do about to about six to 8,000 bandit signs a month. Wow. Yes. So that’s an whole labor, whole laborious effort to make that happen. Yes, I do have a team, uh, is like, what does that team look like?
00:21:49 You just want to know everything. Alright, cool. Alright. So, um, I have about nine individuals who go out. Uh, we put out about a 250 to $300 a night. Bendit signs. I used to do them, but you do it every night. Oh, absolutely. Honestly, so don’t do it just Friday nights. Oh No, no, no. The city calls all the time. Trust me, I got them. I’m sending them a Christmas card. So, um, but, but yeah, we’re definitely, we’re definitely heavy in the band design market. Um, and uh, I’m just so blessed to be able to, you know, take that and run with it. Uh, we do a lot of bandit sign that we, w we rent out your holes and we go pick them up and we take photos and people like, man, how do you do that? Many abandoned sizes. I’ve had an army, I got to eat, man, you know, if you want to you, if you want to scale, that’s how you scale, you know, I see a lot of posts, people put, you know, I’ve done $50 science and I didn’t get shit with $50 sign.
00:22:44 You didn’t get called from the city and all 49 or down, come get them, you know, you go there and they pull your worn. So that’s Kinda, that’s kind of pretty much it. So we got to overwhelm the market. Oh yeah, there’s about maybe 4 million, 5 million people in Houston. I’ve got to be able to flood. I’ve, I’ve got to be able to blanket the city in order to. That’s how, that’s really how I’m constantly, you know, doing deals after deals after deals. I mean we’re pretty much getting a deal every other day. Okay, well that’s awesome. You’re on my facebook so you’ll see new deal, a deal and you know, you’re, you’re there. So. So you got those nine guys and these high school kids, college kids. These are our acquisition guys. Who, who. Oh No, no, no, I keep, I keep uh, you know, the left hand doesn’t know what the right hand is doing. Some acquisition guys are separate. Um, yeah, these guys are college kids. Then, you know, we put our fraternity boys. Um, I think two of the two of them are actually, it’s funny you asked, two of them are but uh, mainly just college kids and I have a older couple that does it too and I mean, you know, it’s, they make good money
00:23:45 and cash them out every night. So how do you pay those guys? A paypal? Paypal. Yeah. But like is there like a wage is they’re like, oh, you know, I guess you can’t really track who sign. Oh yeah, I can try or you can track. Absolutely. Oh, you know who’s bandit sign? It was.
00:24:00 Absolutely. That’s what, that’s what you call tracking your Kpis, right? Yeah. Yeah. All right. So who’s, who’s on the. Who wants to know right now what a APP. I used to track everybody. I can’t read yours.
00:24:12 Yeah, I mean Kevin’s been pretty involved with Johnson. Jonathan. Jonathan Silva has been involved. Well yeah. Who wants to know how he’s tracking those bandit sign calls? Because I’ve never heard anyone tracking multiple bandit signs, so. All right, so we’ll. We’ll need a Fara wants to know how are you tracking all those different. Okay,
00:24:31 so we’ll do you get a pen ready? You’re gonna. Write this down. It’s an APP costs. You can use simple crew. Okay. Simple crew would track every single bandit sign that you put out and it’ll geo located. So I know exactly what spot my bandit sign is in. Who put it up? What time did you
00:24:49 put it up? That’s how they get paid. Wow. That’s how you do it. So you’re tracking the science are going to ground. Do you have one phone number for all of them? You’ve got multiple phone numbers. Multiple point. We’ve got 15 phone numbers. So if I give it to, let’s say joe was like, here are your 100 bandit signs you’re putting out tonight. All those hundred numbers are tied to Joe. Yes. Yeah. Through callrail. Callrail, yes. Okay. So there you go. So simple crew and callrail. Yes. That’s priceless. Okay. So then we get any other way of sourcing deals.
00:25:18 A direct, you know, you got direct marketing. I do really know to be honest. I do a little bit of everything. Yeah. It’s not just I’m doing bandit signs. I’m doing cold calling. I do have a team of cold callers. Okay. We have about eight cold callers that, that are on the phone constantly calling people and they’re not freaking anybody in the Philippines. Okay. I don’t do va’s. Yeah, I just don’t do va’s. I have, I have, uh, assistance, uh, who, who call for us, uh, in their local, in our market, they speak English and know the problem with. Listen, some of you guys might be vas who are, who are viewing this right now, right? I have nothing against Va’s, but if you’re not in the same climate as my seller, there’s no way in hell you’re going to build rapport. Yeah. I’m, I’m big on building rapport. Okay. Two things that I was great at in the car business and I transitioned over into real estate is I was able to negotiate and build rapport. Okay. But negotiating was my biggest thing because I love to negotiate. Oh yeah. I mean I’ve, I’ve done it for countless times, thousands of times already, you know, um, and uh, being in the car industry has taught me a lot as far as building rapport in negotiating. Well.
00:26:33 So let me ask a very offensive question. Sure. Let’s do it. Which do you think training better for negotiations? The car environment or culture?
00:26:45 Perfect. All right. So check this out. You know, you’ve got the Mr. Mrs. Too high on the Asian side, right? Oh, that’s too high. Oh No, no, that’s too low ticket. Okay. Then we got the head bobbers right. Good. Anytime you want to negotiate with someone in my culture. I’m Pakistani. Right. So India and Pakistan, they were kind of, you know, together then the part of the ways. I don’t know what the fuck happened there, but yeah. So, um, they kind of parted ways, right? Um, but uh, you can tell I’m so americanized bro. This is what it is. So you know, you, once you get that head Bob and it, that’s a good day.
00:27:26 Okay. Okay. Okay. I figured the only thing is man, you know, um, I would credit the car industry for, for that because I don’t, I don’t really hang around with people from my culture. It’s not okay. It’s not to say that you know, I’m better than them. They just don’t have. I hang around with like my new people right now. You could be whatever color, skin color you are, if you’re not at that same, you know, thinking a parameters as I am, you don’t. If you don’t have that same paradigm shift as, as I do the paradigm of thinking about wealth, you know, and stuff like that. Entrepreneurship, entrepreneurship, you’re not going to be talking to me. You know what it is. And I choose. That’s a gift that I’ve gotten from God and you all. We all have gifts, right? And God has given each person that gift to choose who you want to talk to and who you don’t want to talk to.
00:28:13 Right? Right. Yeah. You can choose who you want to give your time too. So that’s, I take that as a, as a gift and a, you know, and I tell people, listen man, I’m not the busiest person in the world, but please don’t disrespect my time, my time is very valuable. And uh, that’s one of my pet peeves is people just, you know, call them like, hey, so you put a $10,000 deposit on your um, nonrefundable earnest deposit. Should I do that or should I put 500? Why are you calling me? Like, listen, I’m going to, I’m going to hook you up, I’m going to give you free advice, but only asked me to this stupid ass questions like that. You can go to youtube and yeah, a basic, very basic question, but I have people calling me every single day just with those type of type of questions.
00:28:57 So, so social media, I mean, you’re, you’re making a big push right now. I love what I’m seeing. Thank you. So talk about that as a strategy. So we live in a day and age where we’re called a microwave era. We want everything quick. Write News happens quick, right? By the way, I don’t watch the news, I don’t do not watch the news guys. Do not watch the news. It is poison to bring it is you’re poisoning your brain. You’re poisoning your mind. Think of it. Think of your brain like a, like a tree, right? The soil, right. If you keep poisoning soil, what’s going to do? What? What is it going to? It’s going to rot, right? If you keep watching the news and what’s going on, you’re going to start poisoning your brain. So I stay away from the news. I don’t. Um, before I wake up every morning, I at least take 20 minutes out of my time and I reflect, you know, attitude of gratitude, you know, um, what I, I have a habit of putting my slippers underneath my bed.
00:29:52 So in the morning when I get up, I can put both of my knees on the floor. Oh, that’s awesome. Right? Yeah. I can thank God for everything he’s given me and my family because one day I know in a blink of an eye, you just never know what happened. It will be taken away like that. Oh yeah, so you have to be appreciative of what you have in general. That was very true. So the, the, going back to the social media, the social I’ve got, it was a saga regressing tangent. Social media is fantastic, man. I love social media. So facebook, I was always on facebook. Um, I kept family members on facebook, but then when I, you know, kind of started doing everything so we got to do right, you’ve got to be out there. Um, so I did start, I guess I’m better late than never.
00:30:36 I got on instagram right? And people kept telling me, get on Instagram, man, damn, you need to be on it. Igg. I’m like, man, what the Hell is instagram? So just, you know, last month I just started my instagram account. It’s been ridiculous, man. I’ve been getting offers from people to do their watches and you know, I’m a big watch guy, right. I’ll post a photo of, you know, my watch or, or something like that. Just kind of know promotion and here and there. I’m a firm believer in a lifestyle. So, you know, I, I love, you know, a do it for the lifestyle, right. So, um, I always, and that’s one of my big motivators is the lifestyle. So I posted up my lifestyle on there, you know, anything that we, that I’m doing in the day or something like that. Vacationing or, or photos of, you know, some of my toys I have and stuff like that.
00:31:20 So yeah. Uh, so James McKnight and wants to know what are your top five books? I was, I real estate find might be tough. So what’s your top book outside of real estate? Outside of real estate in general. I would, I’m sorry, I got a text message here from a buyer. We’re, we’re, we’re, we’re doing deals and so, you know, outside of real estate does he want to know like mentally mental, like things that worked for the. He wasn’t specific. Let’s go with that. Okay, cool. Um, I love of course millionaire success habits. Dean Graziosi. Yeah, that’s a fantastic book. You know, another book that I really, really love is feel the fear and do it anyways by Susan s Jeffer, Phd. Feel the fear. I’m saying it twice, so your view is can write it out, feel the fear and do it anyways. So as Susan Jeffers, um, of course, uh, the magic of thinking big, you have to be able to think big in order to grow big crazy dreams.
00:32:22 Oh, absolutely. If your dreams, they’re not crazy enough, you’re not gonna, you know, that’s one thing my wife always in me dream big, dream big, dream big, you know, if you’re going to go all out, go all out. Right? Right. So that’s my David shorts. He’s also a phd. Um, and then so my, one of my ones that I like his soul to be sold grant Cardone, that’s it. Yeah, that’s a good book to uh, you know, I, I listened to audible’s a lot and then my most favorite book of all time has to be how to win friends and influence people by Dale Carnegie. How to win friends and influence people. Um, I’m a master influencer. I know how to talk to people. I know how to build rapport. Uh, why am I getting deals in such a saturated market in Houston more than anyone else in the market is because I fricking go in and I play psychology game.
00:33:16 I know how to build rapport with people. I know how to learn about their family. If they got pictures of if they’ve got guns, you know, Texas is a red state, they’ve got guns in there. So we talk about, oh, we love our gut, we love our guns in Texas, you know, if they got kid photos, hey, where did you go there you have sons or daughters, you know, building rapport because people would do business with people they like and trust. That’s just what it is, you know, and, and one thing, one thing I read the other day, it was um, you know, people will, will learn, listen by in hire you when they feel understood. Yeah. Right. I mean not when they understand you write a will, Nigga for wants to know how many deals you’ve done year to. Did you know that off the top of your head?
00:34:02 I do because I do track my kpis, but I’ll keep that on the deal deal. The other thing too is I see your networks and your networking junkie. So let’s talk about that and what that does for your business. So going back to what I said is your net, your network, your network is your net worth, right? So I network with everybody and anybody I can. Uh, I took a, a ride via lyft here. Okay. And uh, when I, when I, when I was going to the airport from my house, I took a lyft ride and I gave the guy my business card and say, hey listen, I know you’re driving around and you see any vacant properties, tall, tall grass in the yard. It looks like somebody hasn’t been there. The mailbox is stuffed. I want you to give me a call. I’ll pay you $2,500 referral fee most.
00:34:49 I paid somebody as a mailman. I paid him 500 $5,300 for a referral fee and I made 37 on that deal. Thirty $7,000 on that deal. Yeah. So he was already calling you again. The next time he has, we just closed another property, uh, together. So that’s a golden nugget. Number one for we’ve done a lot of golden was on number one. I don’t even know how many, like five or six. So number seven would be his approach. Your mailman. Okay. Your mailman know your routes more than anybody on the planet is because their, their daily. They know who’s home, who’s not home. They know the stuffed mailboxes. That’s actually a great resource is talking to your local mailman and networking with them and say, Hey, listen, when you bring me a deal, I’ll catch you out of clothes out. You know, when we closed the deal or whatever it is, you need to do a thousand thousand.
00:35:38 That’s a lot of money. The government is not paying these people that much money. You can believe that. So we just got to find like a postman meetup or something. That’s absolutely no. Yeah, it, I’m dead serious when I say like, I’ve made so much money off of mailman bringing me deals and they’ve made a lot of money doing that. It’s, it’s amazing, I mean, you got to network with people who are not even in your business. Right? That’s how crazy I am about my business. I’m a fanatic about my business. I network with everybody. That’s awesome. So what bird wants to know about your prospecting script? Do you have a preferred script that you’d like to use or how do you guys do that? Absolutely. So a script is like a GPS, right? When you’re on the phone with somebody, you need a script a, otherwise you’re just winging the shit out of it and people can hear when you’re bullshitting.
00:36:20 Okay. Remember that? Um, so you have to have a script, a, there’s a lot of good scripts out there for people. I have created one for myself and my team and it has been refined and retuned, uh, because I took a lot of that script from the car industry. So I took what I learned in the car business is called trigger points. You asked them triggered request trigger questions. So you ask people, hey, you know, um, certain, certain, different questions and stuff like that to see where they’re at. You know, I’m not going to ask you what’s your payoff? You know, I’m going to be worded a certain way, right? Hey, by the, by the top of your head, do you recall what you owe on the property? Oh yeah. My payoff is this much. You’ve got equity and I know now. I know, right?
00:37:05 I got the guy. All right. So then you want to do a quick role play like you calling me. Okay? Sure. Alright, so you’re calling me. Hello? Hey. Well, how are you? Steve? This is, uh, let’s, let’s do it again because I usually come to people as being their friend. Okay. So whenever we role play, let’s, let’s do it. Okay. Hello? Hey Steve. How’s it going? Good. Hey, I just wanted to touch base with you. This is wrong here with a invest topia online. You know, we buy houses here in the Houston market. Uh, I noticed your property was a vacant and I want to see if you’re interested in possibly selling it, you know, because my wife and I, we were driving around the neighborhood and we actually did locate your property and I’m currently rehabbing one right across the street. Do you know the, the Macintyre’s? Um, no. Oh, well it’s okay. No, no, that’s fine. They, they told me they, they had just recently moved in and I, and I know you’re not at that property anymore, so, um, I just wanted to see if you were interested in selling your property. Uh, every once a while I think about it. Okay, fantastic. Well, can I put a check in your pocket every once in a while?
00:38:11 I mean, what kind of checks are we talking about? I’ll tell you what, um, what I can do is I want to come out there personally and come take a look at your property. You know, what is a good time for you? Give me just a moment, Steve. I have a 1230 and a 1:15. Open. Which one works best for you? A 1230. I mean, I might be able to skirt out during lunch. I’m not sure. Okay. Can you do me a favor? I’m going to pencil you in for 1230. If anything changes, please give me a call. But I will be at your house at 1230. Take a look at the property. I mean, I, I’ve already looked at it. Really it’s just a matter of shaking your hand and signing a contract. But uh, you know, and we’ll go over the basics when we’re there.
00:38:53 Listen, I know you’re at work right now. I don’t want to ask you how much you want for it and all that. We can do all of that. That’s the easy part. The hard part is me, you know, US meeting and getting out there. The numbers are the easiest part. Don’t worry. Okay. All right. Thank you Steve. I’ll see you then. All right, so you’re just handling it up front so they don’t ask you that question over the phone. Exactly. How much are you giving me all? You’re going to give me a million dollars. I’m a fricking investor, man. I’m not gonna. Sit there and give you a million dollars, right? Because people always ask me, Oh, I will, you know, the, the number one question is how much are you looking for your property? Right? You know, and I’ve had to fire some people for asking that question.
00:39:27 Do not ask people that question because then they will start leading them. You always, as a sales technique, you always want to lead the conversation and let the other person lead the into the conversation. So as a car sales guys, I’ll always taught that. Do not leave, do not let them lead you into the conversation. So they say like, one of the styles is you’ve got to be an attorney. You don’t ask a question you don’t want to hear an answer to. Absolutely. Yeah. Yeah. So, uh, Brian mcdonagh ism. Hopefully I’m not butchering that. Are there any posts, meetups? Are there anyone, postman and meetups? Are there any postman meetups? We might just have to create that. We actually might have to create that man. What a fantastic idea. Know a postman meetup. Yeah, I think that’ll be fun. Uh, Eric Post wants to know, have you had any luck with instagram ads or facebook ads?
00:40:12 Facebook ads? I do. Also instagram ads. I haven’t gotten into that yet because I just newly created my instagram account. I thought you’re the exception. Good luck with facebook ads. Facebook ads. It has been. Um, I’ll put it like this. We do a lot of youtube, like the youtube commercial type of deal, right? I got one day, a lot of my facebook ad, but I had to spend a lot of money on that. And the other guy might not have been the best. No, no, it’s not the Roi on that. It’s not going to be the best, but I can say that. Yeah, we’ve, we’ve done it. Yeah. And in Willie wants to know again, do you make any offers over the phone? And so I was like, the answer is no. There are some players in town that all they do is the John Martinez thing that big offers over the phone.
00:40:52 Do you do that or everything’s. So that’s like asking me, do I want to shoot myself in the leg? Will, do you? No. Okay, no, I know, right? I’m so, I wouldn’t, I wouldn’t encourage doing that. Now if you’re doing 30 to 70 deals a month, that would something we need to consider, but uh, you know, [inaudible], you don’t have time to go out and meet people, right? Uh, but I, I had made a goal to myself that I would meet every seller no matter how busy I am, because my sellers pay my bills. Yeah, that’s true. I will meet every seller. I will meet every buyer and I will be at every closing I attended every closing of mine. Really? I move hell or high water. I’m at my freaking closing all this bullshit about getting direct deposit. Cut that crap. I’m at closing because guess what?
00:41:39 People have walked away from the closing table and they do walk away from the closing table. You just want to make sure you’re there for any quality control. And that’s what I do. I really just quality control things, you know? And there’s no such thing as a perfect closing. We always got something going on. Man. Who’s got the survey? Was there. Oh No, I got a call, Ron, next thing I know Ron’s in another phone call and now they got to come back inside. Yeah. So that’s, um, that’s something a lot of agents could take note of. We have a lot of agents that don’t go to their signings a. So Ryan Devlin wants to know, do you actually cold call or is there a team? Cool. Cool. Um, so I, I, I did cold call previously, but I have a team that does, I’ve trained those individuals to do the cold calling the way I want to, not the way that, you know.
00:42:23 So, and so youtube university wants you to do it. No, it’s a certain way and we got to make sure that, uh, you can see I’m, I’m against Youtube University, but yeah, just not as. We’re going to be part of Youtube University as soon because this goes on youtube. Okay. So Brian was the JV with virtual wholesalers? No, no. All right. Uh, is there a reason why? Absolutely, uh, is because my market is so large and so huge that I don’t need to go into any other market. Um, and that’s, that’s a, you can call that selfish, but I don’t need to go anywhere. It’s focus, laser focus my market in that state because I have people calling me from Minneapolis, I’ll refer you to a beast of a wholesaler there who’s got a big list, you know, but if you want to do a deal in Houston, I have a 38,000 buyers list in some change.
00:43:15 Oh yeah. That’s how I’m able to move properties so quickly. Yeah. So, yeah, I mean I get people asking me the same thing. So it’s like I could barely focus where I’m at. How am I gonna Focus somewhere else? No, absolutely. Uh, Antwan wants to know what’s your followup and rotation process when cold calling your list. So the money is in the followup, Antwan. So what you would want to do is a follow up is extremely important and that’s one thing that I had learned in the auto industry, uh, is because, you know, if Antwan didn’t know the wholesalers are a dime a dozen, right? But the good ones or not, that’s the difference. There’s a difference between a wholesaler in a, in a good wholesaler, right. So, um, you have to be able to follow up with people. Um, I would the system, what I would use is podio.
00:43:56 You can go in and I use podio so I can create followups in there. It hooks up straight into my, into my phone. And uh, we were definitely able to do that as far as a alarms go and systemizing followup. That’s easy. Follow up is, is easy and we get a lot of our deals from following up. That’s the key was a huge key. It’s really easy to let that slip to. Yeah. So what is your organization look like? We talked about nine people putting up bandit signs. Uh, how many cold callers, how many acquisition guys do you have right now? So we’ve got nine bandit sign guys ate cold callers acquisition guys. I have actually, um, they’re more of the silent type of guy because they don’t go to networking events with me. If they see me, they don’t know who. We don’t know each other because I don’t want folks to, you know, like we don’t, we don’t know each other, right?
00:44:44 So there’s people in Houston who have met other guys. They just don’t know. They’re my acquisition guys. Right. So, um, I have a few acquisition guy will put that out there. Is that safe to say? I do have few acquisition guys that, that, that, um, uh, that we do. So the next step for us is, since we’re working from home now we’re going to be expanding into an office outlet where all have at least six or seven, you know, more acquisition guys and we’ll have an entire call center just for cold calling and then the entire thing for our, um, you know, other outlets and stuff like that. So. Okay. And then are these guys on commission salary? How do you guys compensate them? So I don’t believe in a salary and I’m a strong believer in earning, earning or wages, so yeah, absolutely. So I put them on commission and that’s the best way to do it because you will find the hustlers when they’re on commission, you know.
00:45:38 Uh, another big lie that we’re all fed is, is the word salary. You know, I’m a salary is a bribe for you to forget your dreams when you have a salary. Yeah, yeah, yeah, yeah. So, um, you can tell I read a lot of motivational stuff. I have to, you know, I have to be constantly, you know, doing all this. So even my children, when they sleep at night, I tell my son every night before he goes to sleep, I said, you know, I’m very proud of you. Your mom and dad are very proud of you. You’re a champion. You know, I can. I’m conditioning him right now because there’s so many parents out there who are conditioning the children to say you’re not going to be worth anything, you know, you know this and that and you’re not gonna, you know, do you think you deserve that?
00:46:22 Yeah, exactly. Right. So you have to be able to condition your mind itself. But salary itself, I don’t believe in a salary. Now, if I have a, you know, a gem gem of my location and I have a front office now I don’t mind giving my front lady a salary. I mean, yeah, the staff, right? But no, if you’re a sales guy, you’re going to be on commission because that’s when you find out if you’re really cut out for this or not. So what do you, how do you accomplish that? You’re cold callers. Um, so we do it per hour. It is an hourly wage for them. Uh, and then we compensate them on deals. So any deals that we close, um, there’s a, there’s a, there’s a fee in there that I give. I give, I believe in bonuses and raises. I give bonuses and raises.
00:47:05 I give, you know, different promotions out. Hey, if we close, you know, if you cold call, you know, I’m 80 people today, you know, you’ll get a so-and-so if you cold call, you know, a 500 people by the end of the week, you know, we want to see who’s doing the most calls. Right? And that goes back to tracking your kpis. So what’s happening is that, you know, okay, so here’s how many you cold call. Say you cold call 10 people, right? Let’s an easy number. You cold call 10 people, you’re only converting to appointments. I’m sorry you’re converting six appointments and you’re getting one deal out of it. That’s not the ratio I’m looking for. I’m looking to close a high number eight out of 10 almost. Right? So I track KPI. I’m a big numbers guy. You know, I, I hate math, but I love counting money.
00:47:53 Is that. It makes sense. Check are your kpis through podio? Mojo? What are you using the of podio? Yeah, I can use podio and then um, I go old fashioned too. I scribble like stuff like that on my phone and I mean, you know, like I said, uh, you know, you want to um, I’ve got uh, organized chaos in my office at home. So my wife, she was, it’s funny because she walked in the other day and she’s like, you know what, what’s this? What’s going on? Just leave it. There’s a contract under the carpet. Leave it, I know where it’s at. We’re about to close on it. I know that world. Yeah, a nice chaos. Uh, at least one Bush wants to know. She’s a new wholesaler in Houston. I was learning the business. How can she do a deal with you? Absolutely. So, um, if you would like to do a wholesale, if you’re in the Houston market, uh, I am, it is an open invite so you can connect with me on facebook and, or email [email protected]
00:48:48 So it’s [email protected] Send me the information, I’ll call you directly. I’m a people person. I call people. I’m never too busy, you know, I’m a firm believer in you can’t be, you can’t ever be too busy that God can’t even reach you. You know what I mean? So, um, and that’s one thing that I wanted to set myself. You asked me earlier on what sets me apart from my competition or in general from other wholesalers is because I answered my phone every Goddamn time, right? Because it makes me money. Yeah, it is what it is. Call me. I’ll answer it. If I don’t answer it, I’ll give you a call back, but I don’t ignore that call. Goes back to my bandit signs. How do I get so many deals it because you know, uh, Uncle Sam buys houses, didn’t pick up the phone and I picked up.
00:49:37 Yeah. All you have is those little little steps you do is going to yield you the big rewards or so there’s a lot of, you know, a lot of people get laid back, right? Uh, I’m not in the business of just making 40 grand off of one guy in relaxing next six months or a year, not selling anything. Right. How we’re able to move multiple deals a month is because we leave enough bone on the table for the investors and they keep coming back. It’s a sharp man. It’s a shark tank out there. So anytime we get a deal, I. Yes. Okay. So I have an exclusivity thing with my buyers. If you’ve bought a property from me before, you get right to rescission on it two days before. I blast it out to 38 some thousand folks. Right. And, and keep in mind, it’s not a co, you know, I don’t.
00:50:22 It’s quality versus quantity. I have such a big list. Yes. But the matter of fact is that ideal with, you know, you’re going to deal with, I deal with at least maybe 15, 20 real buyers, you know what I mean? Like you gotta have that type of. It was only a handful, a handful of people because not everybody is going to be, you know, a certain buyer because some deals, you know, the 70 percent rule is a dinosaur. Now you cannot, you know, the, the thing is 70 percent minus ARV is, is, is a myth.
00:50:54 I don’t unless it’s an Arizona. Should I be getting into the Arizona market? So in broker, right? And so like everyone, so I’ll get this investor, it’s like, yeah, you know, I’m a, I’m a, I’m a cash buyer. If you’ve got to deal 70 percent, 65 percent minus repairs, you know, send it my way. I’m a cash buyer. I’m sure you are. Why the hell would I send that to you? You know, you know, my biggest thing is I love when somebody says if the deal makes sense. Yeah. No, I’m not going to do a deal. That doesn’t make sense. Right? Like, are you serious? Like, yeah, if the deal makes sense for me, that’s just the dumbest thing I’ve ever heard. I hear it all the time. If the deal, why wouldn’t it make sense? If I’m doing a deal, why wouldn’t it make sense to, you know what I mean?
00:51:33 Like I have to make sure it makes sense for me to even get the deal, you know, it might not make sense to you because you’re a buy and hold guy, right. Are Your criteria is that’s your credit? I’d rather people say it doesn’t fit mark. If it fits my criteria then I’ll do it. But making sense and all that. No. That’s why you’re flipping one house a year. Uh, so Brian wants to know if you’ve heard of waterless the lists of individuals who haven’t paid their rent within the last six months. Yes, I have water. It’s called water shut off list. Yes. And that is my niche. What’s your niche? Shit, Oh, this guy just gave you guys a real good golden nugget. Yes. So there is a water shut off list. I’m able to access it. Have you ever checked out Rei pro? Uh, there’s a lot of programs out there.
00:52:17 Um, I don’t use them, but I’ve heard some pretty good reviews. So you can, you have to do your own due diligence and what works for you and what doesn’t. I think the market matters too. It’s like a toolbox, right? I’m not going to, I’m going to use a double wall. Tamar and not a Walmart Hammer. It’s all my personal choice. I mean, you know, all these. I don’t want to namedrop skip companies, but you can use anything you want. Right? This is what it is. So, uh, so we didn’t talk about this positions. Are you the disposition going? Could you say your team, you’re working with 15, 20 guys and you got your 30,000 buyer list or either this Beau Guy, my wife and I. Yeah. Okay. My wife has mainly doing the district. They’re picking up the phone. You’re texting it, emailing it. What do you guys do?
00:52:57 Oh, we do our email blast. Yeah. So we do, we do email blasts. We do. Um, uh, what does that text to voice to text, something like that. I can’t even get the terms right. I mean we, you know, did the text blast, whatever you call that a. and then we were able to, you know, get on the phone, call people, stuff like that. So I’m, I’m very, you know, I’m like tech savvy, so I’m always like on my phone and stuff like that. So people are Kinda like, you know, hey, uh, is this, is this still available? I’m always constantly. That’s why I keep checking my phone it because my buyers are texting me right now and I apologize that we’re, I mean this is live. I’m doing deals and I’m not even at home. And that’s the beauty about this business, right? This is a, we’re able to get contracts and worry about a disposition deals, uh, in make 40 grand, 30, 30, 20 grand on a deal.
00:53:44 I’m not even sitting in front of them, so we’re going to work on the, on the, on higher dispositioning because I made. I’m making an APP, so we’ll be in Houston hopefully by years end. Are you? Yeah, I would love it. Yeah. Uh, so who’s in charge of the kpis? I am. Nobody watches your money like you do? Yeah. I don’t let anybody touch my. And then you’re looking at that like, you know, calls to appointments. Boy, this is down this month or. Yes. Yeah. I look at everything from a Roi a all the way to a calls to appointments. Uh, what’s your uh, convert ratio? Yeah. And I on a, on a, on a color. By color basis. You mean per, per associate? For Social? Yeah. Yeah, yeah, yes. Yeah, yeah. Per color basis. Okay. Yeah. Okay. Yeah. And then I, I listened to phone calls all the time. I think it was. Yeah, absolutely. Your quality control. I have to listen when the hell is going on. You have enough time. Okay. I told you I don’t sleep. Yeah, apparently coffee. Uh, so if you run it through my veins, so we’re gonna answer this question. Not In any of the markets. Okay. So how much are you spending on marketing a month?
00:54:50 It hurts me every time I say it, but no, it’s an investment. It’s an investment and an expense isn’t about 15 grand a month. 15 grand on my bandit signs a loan or about 8,000. Yeah. And how much is the u haul expense in that fuel? Another thing. Oh, that’s cheap. That’s like 60 bucks. Sixty 100 bucks. You haul a expense. So it’s not, it’s not too much. But at any given I would say about 10, 15,000 a month. Yeah, because we’re coming towards the year end now. I don’t think, you know, I think slow is a mindset because thus far we, this month we’ve closed six deals and I’ve got two that are closing while I’m here in Arizona. So that’ll be eight in the month of what? October. November. So slow is a, is a mental mindset until somebody tells you it’s slow. No, they’re slow. They’re not going out there and getting deals.
00:55:35 You know what? I mean, it’s a, it’s a paradigm shift. You have to be able to be, be able to shift your paradigm in this industry to think like, okay, no, today’s not going to be, you know, it’s like getting out of bed every morning, right? You’re either going to get off out the bed on the right side of the bed or the wrong side of the bed. You choose. You know, somebody asked me, how’s business, man? There’ll be 2:00 in the morning businesses. Great man. Rock and rolling. I just closed another deal, right? You know, it’s, it’s a paradigm thing because you start feeding yourself that information. Eventually your thoughts become reality. Yeah. And filling prophecy. I’m a firm believer in, in um, in manifest manifestation. I’ve manifested all of this. You walked into my life. I walked into your life by manifestation. I used to watch your show.
00:56:18 Like, Hey, that guy is. He’s, he’s, yeah, like that real estate disruptors, man, I appreciate that you manifest all these type of things in your life. And I’m a firm believer in the law of attraction, a Bob proctor. I’m a huge fan of Bob proctor. Yeah, huge. I mean, I’m a diehard fan. I mean, that guy has the original. I’m talking about biblical thinking, grow rich book. Oh really? He has the original book. Yeah. So it’s amazing. That goes back to, you know, a lot of people call me a motivational speaker to. Right. I don’t know if you’ve probably noticed a little bit. Yeah. But you know, a lot of people say may your, you, your motivational, this and that. So yeah, you know, I feed my mind all that type of stuff. You know, I believe in each one. Teach one, right. The term a lot of people don’t know where that term comes from.
00:57:06 It actually comes from slavery, you know, so yeah, it goes back to slavery. Um, and you have to know your American history, uh, in order to kind of, you know, you see all these hip hop stars and shit there, you know, Dj Khaled and they’re saying all this stuff and no, they probably don’t even know where that comes from. Each one teach one, you take one and you teach him. He takes one and teaches him, you know, it’s like that fish, you can take a horse to the water, but you can’t, you know what I mean? Like, alright, you know, is this what it is? So, uh, but yeah, you got, you got to be able to, in order to be successful in this business, you have to be able to teach the next person that’s when you truly achieve success. Well, that’s when you’ve actually mastered it. Yes. So, uh, we already talked about Podio, we’ve talked about simple talk about callrail. Are there any other tools or systems you cannot live without?
00:57:53 My wife on speed dial partners. Huge. Uh, absolutely. So that’s the biggest tool that I would say is his support from your spouse, a support from your family. Uh, you know, in family can sometimes be negative, you know, my family’s not always supportive, you know, sometimes they are in which is great. Um, and stuff like that and I love him to death. But uh, you know, everyone, everyone has those challenges in life, right? Um, and your friends, you know, why, you know, some people are, some people will not support you because they’re afraid of what you might become [inaudible] they’re afraid you’re gonna. Yeah, yeah, yeah. There was an opportunity that they gave up. Some people might not support you because they are afraid of. I was telling him about my buyers. I was buyers calling me up, telling them tune into the show. Hey, let me, you verified date listed. Let’s do it. Hold on. Hey Jeanette, what’s going on man? I’m doing the live. You’re literally live on a show right now. I’m doing a live podcast and Arizona. It’s all good. It’s all good. Are you calling me about the land deal?
00:59:07 Yes. Uh, so what I’ll do is I’ll touch base with you and we will go over that deal together. I just, I apologize I had a plane to catch and uh, I’m here. You’re live, you’re live on the show right now, so it makes sure you tune in. You’re going to catch the replay and you, you just on the show with me.
00:59:23 All. Are you going to take care brother. Bye. Bye. So that’s how I treat my buyers. They’re like my friends, man. That’s, that was a live phone call right there. So, uh, we got uh, um, so the cool thing is I’ve actually gotten into wholesaling land. I wholesaled land and I wholesale a multifamily too. Yeah. So those are the big spreads, the $100,000, $200,000 assignment fees. So I do all, he was calling about a land deal which land because that’s something that we, you know, we know a couple of guys, I hear that wholesale land and you know, they’re like 10 percent of market. Where do you buy them? At Allan in Houston. What are you talking about Willis? I buy them at the right price. Okay. Is that fair enough? Number? That makes sense. Uh, okay. So we talked, you talked a little about, you know, a family and that’s something that’s, I think we all have a huge, uh, in common is the family that drives us. So, um, talk about your why and, and, and, and all that.
01:00:25 So, you know, I’m a firm believer in, in finding your why. And I tell people, the first question I asked other wholesalers is, why do you want to do this business? Because I want to make enough. I want to make a lot of money. No, that doesn’t make sense. Why do you want to be? Why do you want to do this business? Uh, I want to be able to go to expensive dinners. No W, what is the reason? What do you, what is compelling you to come to this business? Right? Then they tell me, Oh, you know, I have to, you know, I have to pay this off or that off and I’ve got kids and I want to be able to do this. I have a special needs child. I got to do this and that. But then you start, you know, it’s called a seven, seven layers of Tony Robbins.
01:01:04 Yeah. Tony Routers, right? Seventy seven layers. So my why are my children and my wife, my family in general, because I wanted to leave a legacy. In order for me to do that was had to be through real estate. If you want to get rich, you got to start buying dirt. Right? Or flipping paper. Yeah. Like me. Sorry. I don’t have any intentions of becoming, you know, a flipper. And that’s probably gonna lead you to the next question I’m afraid it is. I’m just going to wholesale. So we’re, we’re, we’re predominant. We’re just going to stay wholesaling and stuff like that because we built a reputation in the community, a great reputation in my, in my city. And I found my niche. It is wholesaling, you know, I, I don’t like waiting two weeks to make 30 grand. I’m sorry. I don’t like to wait six months to make 30 grand.
01:01:54 I can do that in two weeks. Yeah. And my buyer is okay with it because he’s making 100 grand on the deal. Right. So. So what would you do then if the market dips grow? Okay. So when the market dips, here’s what’s going to happen. Wholesaling will survive. Yeah. Is that a shocker? Not at all. Not at all, right? Because we’re gonna, we’re gonna buy low and we’re going to sell low enough where somebody can make money. The market dip in the market crash is inevitable. It’s gonna happen, you know, but you have to brace yourself, right? It’s Kinda like a noah and his arc. Right? He knew the storm was coming. He built his arc. Right? Right now the best thing to do in real estate in the real estate market is wholesaling and it’s always going to be the golden, the golden goose a is.
01:02:46 And I believe that because I have investor buddies will call me every day. I want to unload my property, I want the, we’re, we are expecting it, but we just don’t know when it’s gonna happen. Right. All right. So, uh, in, don’t get me wrong. Flipping is great. I love the Hgtv Syndrome, all that good stuff. That’s all fantastic. Right? But my niche is, is wholesaling and wholesalers will survive the market. What you see on the forums, people ask all the time what’s going to happen to wholesaling? Nothing. Honestly, I asked this question because I’ll have people ask this question right? And I, I’m with you, right? Like people don’t know. This is one. It’s hard to also, when a market, this is one, it’s easy to wholesale. Yes. Yeah. So, um, what is your biggest struggle right now? So my biggest struggle would be, um, it’s like the book e myth revisited.
01:03:35 I have to fire myself from certain tests, minuscule tasks, right? So I’m in the phase of my life in my business right now is I’m, I need to be able to fire myself in order to scale my business. Right. Um, so I’m right at that tipping point where we’re scaling now, right? We’re going, we’re going, boom, boom, boom. So, um, but uh, our, that’s my biggest thing is I got to start firing myself, call it micromanaging, but it gets overwhelming, man. I mean this business is crazy. Well, I’ve got an excellent exercise for you. What does that. So something a different strategic coach so we can go after this [inaudible] little bit longer, but it’s, it’s finding your unique ability and that’s a lot of fun. It really. Yeah. It’s an entrepreneurial exercise so we can talk about that offline. Uh, what is your superpower? So I would say my God, I don’t, I wouldn’t categorize it as a and I wouldn’t categorize it as a superpower.
01:04:30 I would say a God given gift, right? So my God given gift is being a father. That is the superpower I have because I was not, you know, my father was not in my, in my life he was, he was in my life, but he really wasn’t because my parents had separated. But being a, being a good, good father and a good husband is my superpower is to be able to, you know, be there for them when they need me. I’m in. And that’s probably why now you can see why I do what I do is because, you know, I want to be able to provide a legacy for my family and I hate to go back to the same thing, but that’s just the truth man. I mean we’ve got to be able. Social Security will not be there for us. That’s the biggest life fed to the American is your social security or you know, your, your, your government is going to come and save you. Yeah. No, we know. We know. Where’s your camera? Are you serious? You go out there and do some damn deals. Save yourself. What’s the greatest lesson you’ve learned? Greatest lesson I have learned, uh, in this business or in general, in this business, in this business. I’m the greatest lesson I have learned is to
01:05:47 I w I would truly a credit, you know, to as far as, uh, you know, we, we go through a lot of lessons in life, right? I’ve been through a lot of lessons myself in life, but in this business and in particular, I would say that the greatest lesson that I have learned is that a,
01:06:04 you know, not to make the costly mistakes. I guess there’s a lot of mistakes that were made in this, in the branding. You know, I can’t pinpoint really. I want to make this as, as in depth as I can for your viewers and for, for everyone. But the matter of fact is that there’ve been so many mistakes already made, you know, um, that, uh, I just can’t pinpoint, you know, but you fail fast, fail forward. I mean, that’s how I was able to overcome a lot of my obstacles, you know. Um, and, and as far as the lesson goes, I would say is that, you know, networking with people, that’s the biggest lesson that people should, should take away is network network, network, attend Rias, you know, talk to people. A urias are going to be where your bread and butter is that. Talk about that.
01:06:44 So you go to areas. Oh, I love going. I live at [inaudible]. Steve. I manage my family life around my Reyes. I’m dead serious. This different. Our is Ryan Harper in your community know Ryan’s in Dallas? Houston. Dallas, yeah. Okay. Because he runs some crazy meetups. He does, yeah. He’s in Dallas. Yes. All right. So then your area is like this once, twice a month. Every other day. Is it? Yeah. Houston is large. We’ve got a. we’ve got about how many years? Five to six. Five to six a week. Wow. That’s crazy too. Yeah. So now you see how I have such a nominal buyer’s list is because I’ve been able to network with some people and then stuff like that. So we, we attend. What I do is, um, you know, because you realize all your bread and butter in this business, uh, um, you know, I have a saying if you ain’t pitching you better stop bitching as this. If you’re not pitching deals, I feel like that’s coming from car sales.
01:07:43 It’s funny, we were just talking about Ryan, he just jumped online. So what’s that Ryan? Ryan Harper’s on this. Just felt that. I feel like. Oh man, that’s awesome. Alright, so then the next question, because we’re talking about failure is what is your favorite best or most interesting failure? Oh Man. Favorite failure. It would, they really is meant truly. There’s so many that I have gone through. Um, you know, to be honest, I would say you need to minimize risk as much as you can. Um, so, you know, sometimes you’ll, you’ll say something to a buyer, you’ll say something, do you know something wrong in a deal? You know, and that’s part of failure, but you, you just, you just have to out bro, like you messed up, you know what I mean? You got to swallow the pill, you know what I mean? So, um, and one thing about wholesalers is they get a bad rap for um, overblown, ARV, right?
01:08:36 No, no sellers, what are you talking about? So, you know, I’ve heard, I’ve heard in the community on numbers are great, you know, they are, they really are. Yeah. Um, but, uh, I like to do my due diligence in general. Sometimes all I follow up and say, oh boom, you know, is what it is, but I’ll backtrack it and say, you know, it’s, it’s all right, my bed, uh, Brian wants to know how you’re finding the water shut off lists in your city. You can go to you. I actually have a connection at city hall. Um, and that’s, that’s where I get it from. That’s huge. Yeah. And you have to be able to network with those type of people. So I go to a, what is that called? Divorce court or something. I go there to Rehab. I W I where we buy houses shirt, right? Yeah.
01:09:22 Alright, we’ve got to get a selfie. Yeah. Next Day it’s, it’s awesome. People really will come and talk to you and say, Hey, listen, my wife and I go through a little thing, man, you know, can you help us out? I’m just sitting there. I’m acting like, you know. And that’s, that’s Kinda, that’s kind of pretty much it. That’s amazing. So we do, it’s probably my favorite nugget today that is in the. We do, we do a lot of advertising. A bill, I don’t know if you know this, but we have our billboards to in Houston. Do we buy houses? Billboards. We have park benches. So I had park benches outside of pawn shops. Do you say we buy houses? Tom, Tommy cuffer. Ella? No, I’m not familiar with Hungary. There’s a, I can’t remember where he’s at, but he’s like, he said I was on a call with him.
01:10:00 It’s like I have literally spent every last dollar. There’s nowhere to have to spend in my city. What city is he in? I can’t remember, but uh, I’m sure we can connect. But yeah, yeah, no that’s, that’s, that’s great. So all we do, we do that. I haven’t had a great roi on the billboard. It’s just a regular, it’s not one of those huge, you know, it’s just who you are. They know who we spent it elsewhere. He takes you seven touches for someone to call you. Yeah, that’s, that’s the key. That’s the number seven. So either it’s a direct mailer either it’s a billboard, a bandit sign. If they see the same color scheme, if they see, you know, in their mind like oh I saw that again. Oh he must be legit, let me call him. So I get people calling me and saying that hey, I still have your direct mail or from like, you know, say eight months ago, nine months ago.
01:10:42 And I saw your sign with your same name on it and stuff like that. So we do a lot of advertising outside of hospitals also. Yeah, I do, we do a, we have a, a bit like we do benches, right? You’ve got a brand that ambulance then. So. So we do, we do, we do advertising, I like to call it gorilla marketing. Oh yeah. So, um, I do a lot of advertising outside of hospitals. Casinos, gamblers will always need money to sell their house. We do that also. So anyone who’s watching this take note and you guys need to start hanging out and not a mental hospital, but I’m just saying like hospital in general, you know what I mean, to make sure that you’re talking to the right type of people. Uh, what’s your email address again? It’s Info I n f o at Invest. Topia online.com. So it’s I n v e s t o p I online.com. Alright. And then is there one book you’ve gifted more than any other?
01:11:41 Uh, it would be how to win friends and influence people. So whoever is on this. Actually, man, I’m gonna throw out another Freebie. I’m the bandit signs are going to go free to somebody, but everyone who’s on this a live thing right now, uh, send me a facebook message with your email address and I will send you a free pdf book of how to win friends and influence people. That’s huge. That I’ve paid for. Okay. All right. So guys, it’s um, well his email’s the best way to get hold of your. Yeah. Email. Absolutely. Also, they want to follow you. What’s your instagram handle? So it’s going to be Ron, Ronna one, so r o n r a n a h one and that’ll be my instagram handle. Okay, awesome. And then, uh, so how are we going to do this? How are we doing this giveaway? Are we, are, we’re done? Where does it, does this all the questions if you passed. Okay. Uh, well let’s, uh. Alright. So whoever who, how many people do we have on the 41? People online right now. Forty one people. I’m not that popular guys. Come on. Alright, so all 41 people you guys on here, let’s, uh,
01:12:50 less right? Steve is a beast. Everybody right? In the comments section, Steve is a beast and then we’re to go ahead and do the drawing. All right. No one, no one believes. No one believes that. All right. Is it coming? It’s a steep. You have to write. We’re. We’re doing the giveaway now. Alright. Steve is a beast, right? It in the comments section. All right, one. Okay, come on. Steve is a beast. Come on. Let’s go. Guys. We were going to let this. We’re going to let this run for a little bit. You got a paper on you? Yeah, I’m grabbing lunch. Start writing names. I’ve got people messaging me right now for the free book guy. Send me your email address so I can go ahead and send that out to you guys.
01:13:46 All right man. We’re going to have way too many. It’s all good. That’s. That’s the whole point. You know what Steven? Let’s double it up. You’re going to pick two people in here, right? I’ll pick two people. All bandit signs. Is that. Hold on. I got asked the wife. I got to ask my, my, my money manager here. Is that okay? Okay. I got the thumbs up. All right, so what we’re gonna do, we’re gonna. Write down all the names and then I’m going to have you close your eyes and just point at the paper. Now what? We can rip them up and Jiggle Oma and you pick out. We can pick out a name. I’ll pick out a name. That’s fine. Go, go, go from there.
01:14:29 Okay. Alright.
01:14:31 Why don’t you split Baltimore. Why write these all down. Alright. So what, let’s go ahead and do this. Um, so everyone is writing it down. I’m going to go ahead and get everyone a real solid golden nugget on how to build a rapport with people when you’re in front of a seller. So in, in the comments, who is type in v Dude, they’re typing so fast. They. Okay. Um, so who, who would like to know an acronym that I use and it helps me every single time to build rapport. I love that. Look at that man. Look at that. Yeah, you’re popular. Alright. Who wants. Who wants a 100 free bandit signs? I’m going to pick two people. Is going to be 200 free bandit sign, 100 per person. I’m going to pay for your shipping unless you live in Hawaii
01:15:36 or Canada.
01:15:42 Alright. I gotta please share. I got someone said please share. Uh, my, my, uh, my leg it. Okay, here we go. Alright Steve, you can. You want a damn? That’s a lot of names. I’m still writing. It was a lot. And do we have steve was a beast. Make sure you guys are reading it. Alright. So you want to go ahead and share that? I think we’re, we’re good? Yeah, I got it. I got run as a rockstar common in there.
01:16:16 Alright, cool.
01:16:19 Alright, let’s go. Alright, cool. So we’ll, we’re gonna flip that paper over it. This is live guys right now. So we’re gonna let’s will. Yeah, you’re tearing it up. Okay. Here. I’ll hear it up. You got it? Yeah. Right. So we want to show the acronym. Yes. Okay. So let’s go with the acronym. Okay. Make sure you guys have a pen and paper ready and write this. Okay. It’s called form F, O r, m. every time I use this on a seller, nine out of 10 times I always get the deal because it helps me build rapport with the seller almost immediately. Okay, so what you want to do is you want to start with F. Okay, so f stands for family. Okay. Oh, starts is going to be with occupation over occupation. Okay. R for recreation, recreation. I can’t even talk. Recreation and M is motivation.
01:17:17 Okay. So family occupation, recreation. Motivation. Okay. You start talking about people’s family. People will start talking about themselves like nobody’s business and when somebody is talking to themselves, when somebody is talking about themselves, you need to make sure that you shut up and listen. That’s gonna make you money. Okay? Occupation, you ask somebody, Hey, what do you do for a living? I am a bagger at Heb. Oh man, that’s awesome. You must love what you do. You know, nine out of 10 people who are calling you don’t like their jobs regardless. I mean, it’s just the norm of our society unfortunately. So they’re going to tell you, yeah, you know, I do like it somewhat. Or how long? How long have you been doing it? You want to ask people how long they’ve been doing it and keep in mind you’re keeping them engaged. The more you keep people engaged, the more they’re gonna be likely to do business with you.
01:18:14 Okay. Third one is going to be recreation. What do they, what do they like to do for fun? Right. Texas is big on guns. I liked, I liked to talk about guns with people, right? So they talk about, you know, whatever they liked to do and all that good stuff. So what, what you would want to do is you would find out if they like to play soccer, basketball, you know what basically anything they like to do, I don’t care if they like to do knitting class, you better be a fricking fandom knitting class and to make sure you’re talking to them. Uh, the third thing is the strongest one that you’re gonna have to ask them is what is their motivation? Why are there selling their property? You know, why did you call, what am I doing here right now? What is my purpose of, you know, how can I help you? You’re going to ask the person how you can help them. Okay. So you got that sleep. Got It. Okay. Ready to go. Family occupation, recreation motor.
01:19:09 What I like about motivation, it was, um, it was, you know, there are other for his frog, right? As other way for some people remember it. Family, recreation, occupation and goals. Yes. And motivation and goals is kind of intertwined. Is that if you, um, if you have goals, you’re more likely to be referral partner, more likely to be giving advice to someone without goals. Sure. I want to hang around with you.
01:19:31 So that is a huge. That’s actually one of the biggest golden nugget that I can give you. Your viewers is uh, the, uh, form acronym and I’ve used it in the car business and it’s one time after time after time. So it’s, it’s great guys. We want you guys to win. You know, this business is about, uh, uh, the law of abundance. A, why does Steve do this? You know, why did I agree to come on his show and, and give you some of my secrets and tips and, and this and that is because you have to have a law of abundance in order to grow in life moments mentality, the abundance.
01:20:08 So we got a whole bunch here. We’re going to pick two. So pressure is on. Hopefully we’ll get any hate mail. Have a stocker. Yeah, yeah, yeah. I grabbed two. How about you do this? You grab one and I’ll grab them. All right, cool. All right, we got it.
01:20:28 James McKnight’s Oh James McKnight. I’ll probably need to read it. What does that say, man? You got doctor’s handwriting. Kevin Stewart and Kevin Stewart. All right. All right. Congratulations guys. Congratulation guys. Uh, you each are getting a hundred bandit signs. Do me a message. What was the other name? Is James. James. James McKnight. Send me a private message please, with your um, well I would need some information from you. Send me your home address where you would like the, uh, science to be shipped, uh, your phone number and your email address.
01:21:09 All right. And this is not the end of it. So this is the end of the show, right? So thank you guys for tuning in, but this is not the end of Ron. So we have our meetup tomorrow night. Make fate brewing for 30. We’re going to have a Elijah Rubin talking about 5:00 and then we normally go to about 6:30. But you know, ron’s come in here for uh, for a, a workshop, mastermind type deal. So I’m not going to be here exactly sharp. It’s a 5:30, 6:00. Anything like that are going to be grateful for when he can show up. So come by tomorrow. If you’re in Phoenix, make fake brewing, check it out. And uh, we will see you guys there. All right man, this is awesome. Awesome.
01:21:52 Thank you for having me, brother. Thank you so much. Go out there and kill it. Share your success stories with me. Please let me know if my acronym works or not. I know it works. Let me know if it does or not for you and catch you on the flip side, man. Peace.
Danny Perkinson talks about his journey from a regular real estate agent to 50 deals in a month to brokering a $700M deal.
Watch the whole episode at www.realestatedisruptors.com/interview/interview-with-danny-perkinson/