Welcome back to the Discount Property Investor podcast. Our mission is to share what we have learned from our experience and the experience of others to help you make more money investing like a pro. We want to teach you how to create wealth by investing in real estate, the discount property investor way. To jumpstart your real estate investing career, visit freewholesalecourse.com, the most complete free course on wholesaling real estate ever. Thanks for tuning in.

David: Alright guys, welcome back to the discount property investor podcast. Your host, David Dodge, the discount property investor. Today I got a special guest, so over on my Instagram, I had a guy hit me up just saying that he wanted to connect and he got his first deal and I just love talking to people about their first deal so I said hey let's do a podcast. Let's use this opportunity to get to know each other and do some networking which you guys know that I highly, highly, highly encourage and promote that you do, right? Networking is so important. So I'm going to kill a couple birds here today with one stone. I'm going to get to meet this guy, do some networking, but I'm also going to get to learn about his first deal and what the lead source was and how he got it and what he did and all of the above. So Leo, Leo Chun, did I say it right?

Leo: Yes, you did.

David: Awesome, is here. Leo, welcome.

Leo: Thank you. Thank you David

David: How are you? Now, you're 18?

Leo: I am 18, I'm turning 18 in [inaudible].

David: Man, I feel so old. I'm 36 man, what is that? 20 years almost? Holy cow, I feel old but I'm young at heart. I love it. And you are starting early my man, that's- that is awesome. So again, congrats for doing your first deal. Let's hear about it, let's hear about you, I want to get to know you. So 18's where you're at. Here's what I do know: You live in San Francisco and you just got your first deal beginning of the- of last month, and you did it out in Texas, so I want to learn all about that and I want to learn how you got started, I wanna learn about the lead source and I want to learn about, you know, how long you've been doing all this. So I know it's a lot to throw at you and I'm going to give you the court. Tell us who you are and you know, tell us about this first deal.

Leo: Cool man. Thank you first Dave for having me on here.

David: Absolutely.

Leo: It's awesome being able to one, network with you, talk with you and two, share my story. It's awesome.

David: Cool. Well I'm happy to have you.

Leo: Thank you. So first, I'll start with how I started to get into real estate. When I started to workout, I got this new mindset of being able to push myself so I started to learn- learn a little bit about how to make money so I'd look online just how to make money as an eighteen-year-old, like how everyone does. Well I was 16 at the time, how to make money as a sixteen-year-old and I would just look, try these different side hustles, I found Mr. Money Mustache, have you heard of that? That forum?

David: I have not.

Leo: It's a really good blog of how to save your money, financial independence, all that stuff so it's really good. And then I stumbled onto BiggerPockets. So when I got into BiggerPockets, I instantly just started posting on the forum. I didn't know how to do it, I was just like hey, I'm new, what- what- how do I do this thing? Like what is real estate? How do I get into it? And then going through the forum, I found a bunch of books that people recommended to read. At this time, I hated reading books cuz I came straight out of- I was a junior at the time and the books we we're reading at school were terrible, just not teaching me anything so I-

David: Yeah, they weren't teaching you anything about finance, wealth building, taxation which is the biggest expense in our entire life.

Leo: Right.

David: No, you were learning about like history in Spain and shit, like worthless stuff.

Leo: Right. [inaudible] taught us0 I saw this meme, it was like: I'm so glad I learned parallelograms instead of taxes so I'm so- I'm so prepared during parallelogram season.

David: Yeah, during parallelogram season, by all means. I mean obviously, you know, you learn a lot in school about logic, can't deny that, but the applicable things that you know, matter in life like making money, saving money, creating wealth, investing and then of course taxes, aren't typically taught unless you go into a financial planning or business type degree, and even business is very very broad or you go into like accounting, tax thing right? Those are two specific niches but the mass- the masses, the majority of us, we don't ever have a class on taxes. We don't ever have a class on creating wealth or investing, it's crazy.

Leo: Right, and it's like most people that come out of high school or I would say like at least 95% don't know how to do their taxes, if not more.

David: Oh 95% of people that are my age don't know how to do taxes. That's why they go to block or they hire an accountant. I paid my accountant 20 thousand last year and I'm not saying that to brag, but I did so to save 60, so it was so worth it, you know what I'm saying? But yeah. I mean, I don't know how to do it. I hire people to do it, you know? And that's okay. Get the right person in the right seat but yeah I mean, here's the thing and I'm not trying to get crazy on the tax talk but there is like 70, 80, 90 thousand pages of tax code and only like five pages tells you when you got to pay and where, right? And how, basically. The rest of it's just ways to avoid or not pay altogether. It's just, it's just so crazy but yes. Leo, go on my man.

Leo: Okay, so I read [inaudible] like everyone else.

David: Got it.

Leo: Gave me a whole new mindset of making money work for you and with that new mindset, I went back to the forum and started reaching out to everybody and I started to just- I learned- I watched a video on networking, on how when you go to someone you don't say well how can you help me and you don't- you don't really say how can I help you either just generally. You kinda just go in and have good positive energy and bring people that if you have no experience and bring- at least bring something that you can help them with. So I went and went on BiggerPockets with that new mindset and there was this- there was this guy, his name was Joe, Joe Holmes, and I'll send this to him later to watch, but I went to him.

David: Hey Joe.

Leo: He's gonna love it, he's gonna love it.

David: All right, cool.

Leo: So I went to him and I just used that new mindset and just said hey, like just kinda how I reached out to you, like hey I would love to connect, I love the stuff you're posting, cuz I went through his stuff. I researched him a little bit just like how I researched you. I saw you were in a car crash in December which I want to ask you about later on, but I went like, I talked to him like that and he said hey yeah, let's reach out, let's go on a zoom and I said actually, I'm going to be over where you are in LA next week, would you like to meet up in person? So we did.

David: Nice.

Leo: So I went to his office and we had a really long conversation of me asking him questions, picking his brain and I was ready to leave at that point at the end cuz we scheduled for an hour and I got a lot of good information but at the very end of the meeting, he asked me a question. He was like: what is your dream? Why do you do what you do? So I got my chance to talk and he let me talk for a full hour.

David: Holy cow, that's great.

Leo: So I took another whole hour of his time so I was already very blessed and he gave me advice on everything I had problems with and talked about and at the end of the second hour he was like hey Leo, would you like to go out to lunch? So he takes me out to lunch and we have a longer conversation just about real estate and that's where I finally was able to bring out something I could help him with and I'm not the best at social media but as a young guy, I've been in that game for a little bit, understand how teens play with social media and where our attention goes so I was able to tell him all that because he just gave me two hours of straight good advice in this time. So I was like here's what I can do for you, like I can bring your social media and I can start running it. I can get a lot of a lot more people to your site and from there, he gave me that role of running his social media. So from there, he became like a mentor of mine because I was giving him something and he was able to give me something back and we talked a little more about that and he started teaching me a lot about real estate and wholesale real estate. He gave you a little hint of wholesale real estate as he brought me to his rental properties and his fixers and I didn't really get it. So it was when I went home started to fully read on real estate, learn about wholesaling and get into the mindset of it as why I started to think about it so I did- I'm doing couch flipping right now.

David: Okay.

Leo: And I started couch flipping about 3 months ago. Ryan Pineda had a- had the idea. He did it before in Vegas where he was from and in my mastermind, a group it's called SheeksFreaks, it has a- has around 60 young people from 15 years old to 23 years old.

David: Cool.

Leo: We're all in that group, we meet every Sunday and we met with Ryan Pineda the other day so we talked about that, but he was the one that got me into couch flipping so I called my buddy up and was like hey Nick, like would you want to start a new business with me? Just a couch flipping business. I talked to him about it and he was super down, he has a 4Runner and we just stuff the couches in there, but the first day we picked up a couch for 50 bucks, flipped it for 350. The next day we picked up two couches for a hundred bucks total, flipped it for 600. So now we flipped over 50 couches, made like $20,000 together.

David: Over 50 couches?

Leo: Over 50 couches in my count.

David: Holy cow, so what's the basic fundamentals? You just find somebody that's looking to get rid of it and is basically giving it away for nothing?

Leo: Right. It's kinda just arbitrage, couch arbitrage.

David: Yeah, and then- but to where are you selling them at?

Leo: Off Facebook Marketplace, OfferUp, Nextdoor, those type of sites.

David: Sure. Are you buying off the same sites or are you typically getting them off Craigslist too?

Leo: Craigslist as well. So we go out every like 2 hours we'll look online, see if there's a good deal and most of the time people will give us their couches for like 50 bucks, 100 bucks.

David: Yeah, or just take it, just get it out of my house.

Leo: Right, exactly. Cuz the big hassle, the big hassle.

David: Yeah, you can't just put that in your trash can, you have to like get a truck to move it out or-

Leo: Or break it down.

David: Yeah, break it down or maybe even call the trash company and request a special pick up. Yeah, so it's just an inconvenience for people so you're solving problems just like you are in real estate. I love it.

Leo: Right, and in California where I am from, in California San Francisco, a lot of people are moving out right now. So, especially it's hot right now so people are giving out-

David: And you're in SanFran, right? It's like the only city that I've seen, I'm sure there's a couple, that's actually depreciating in value right now. Everything else is going up.

Leo: Really? I honestly don't know.

David: [inaudible]. Let me double-check that real quick but last I looked, you guys were at like negative .03.

Leo: I didn't know that would happen in San Francisco.

David: Yeah, we'll see. Let me check here but yeah, go ahead. Keep telling me your situation. So you guys were couch flipping, that's awesome.

Leo: Yeah, so we couch flipped and then from that, I learned how to negotiate. I learned how to market a little bit. I learned how to talk to sellers and buyers which is kind of the wholesale game essentially, right? And about two months ago, I called my mentor again, Joe, and I asked him how do you get into wholesaling? And he set me up with his guy Carlos and they pulled me a list of a thousand pre-foreclosures in Los Angeles. I started call- hand dialing them all and I went into cold calling with the mindset of the first 100 calls is just my practice. Just go in, get cussed out a few times. Build your thick skin with a hundred calls, don't expect anything.

David: Right.

Leo: And that's what I did so I called a bunch. I got a bunch of invalid numbers, the fax numbers which is the worst on hand dials cuz on Mojo, it kind of gets rid of the fax but I would hand dial and I would just get fax after fax after FU's and no, stop calling. It was a very saturated list. So I'll text everyone that I'm talking to, helping me with wholesaling and I'm just like: these lists are saturated. They're getting calls 10 times a day and what they told me was: that's the point, everyone- like this is the game, everyone's getting called up this many times but you just have to be the one that stands out. Like the one that can be the one that can pull through and help them with their problem and not sound like the rest of them. I got that and then they told me like we live in an abundance world where there's enough deals for everyone cuz I went in thinking like there's not enough deals for me. Everyone's out there playing the game, like I'm just an 18 year old going into the game like what do I know? How can I be better? How can I show up on top of these other hundreds of wholesalers trying to get the same deals? But once they gave me that mindset, I started to realize you got to keep going, it's a numbers game, just keep calling, keep calling, keep calling and keep building your skills every single call. So I went into it with that mindset and I actually went on to Mojo and Propstream really early cuz I hated hand dialing after like 500 hand dials, I was just over it and I was going as fast as I can with the hand dials too so I just invested some of my couch flipping money into Mojo dialer. 150 bucks for a triple dialer, and I hopped on there and it was instantly like a game-changer, right? The energy it took to do the calls like went down a ton.

David: Oh yeah, absolutely. So I use the Batchdialer. I know- I'm very familiar with the Mojo and CallTools and basically auto dialers in general. I like the Batch one but they're all- they all do you know, very similar things so the auto dialers are huge if you are choosing cold calling as your marketing method. I love it.

Leo: Right. I just learned about Zendialer which is 12, 12 dials.

David: You don't need to go that high. We don't ever go above 4. We typically actually don't even go above 3. So if you want to use you know, something that goes 10 or 12, that's cool and all but you're defeating the whole purpose of cold calling in my opinion, like that's really just the way of dropping a bunch of voice mails very fast. You're going to get people that answer when you're on a call left and right when you have that many going and that's just- that's just- to me, that's spammy, you know, so I tell my students, you know, 3, 4 at the max but there's certain opportunities where you may even tone that down to one or two, you know, if you really want to connect with people and try to set appointments. That's really the goal in my opinion but not arguing. Leo, I love it yeah. More isn't always better, right? I think that's what I'm trying to get to.

Leo: Right. And that makes sense too cuz when I was hand dialing, I was waiting for- I was waiting super long for them to answer so I will connect with them and then as soon as I hopped on the Mojo dialers, it kind of just like whoever answers first, alright go right into your script. At the time like maybe three days after Mojo- doing Mojo for about 5, 6 hours a day, I stopped using the script and I was able to flow my conversation a lot easier.

David: Yup.

Leo: So as I was doing Mojo, I went through the whole pre-foreclosure Los Angeles list and it was just too- it felt super saturated and at that point I was just like, I just need reps, right? Cuz I can't even get past my first four seconds like hey is this- is this David? I was just calling blah blah blah. They say no, stop, stop, stop, stop, I get 10 of these calls a day, stop.

David: Stop, right, yup.

Leo: I was a little discouraged and that's going to happen to everyone and you can probably stand for that like 10 times that the discouragement is going to come and it's going to hunt you down.

David: It is going to come and it is going to hunt you down, I love it.

Leo: It hurt, like it sucks man cuz I'm a very confident person but even when someone just says FU, stop calling me and they hang up, you're kind of like okay it's fine, it's fine. You kinda think about like damn, I was trying to help, I 'm just trying to make my money too.

David: Yup.

Leo: So it gets to you, but the way I get out of that is just telling myself I'm the most confident wholesaler in the game before I call and that way those FU's don't get to me as much and I tell myself each call could be another change in my life, like I can start building my generational wealth after each call.

David: Guys, did you hear what he just said? So he's saying right now that he has a mindset that he's the best and he's not going to let this negativity bring him down. I love that Leo, well done, well done.

Leo: Credits to Sean, oh I don't know his name, Sean R. That dude, he is a great wholesaler, I called him and I asked him about the discouragement. He told me that just tell yourself, you even jump, jump around, do some push-ups.

David: Yeah, get excited.

Leo: Right. Cuz you need to or else you're sitting here the whole time getting no's after no's after no's after no's, right? So I did that, kinda lost where I was.

David: So you we're working with- you were calling the pre foreclosures in San Francisco and you weren't getting anywhere?

Leo: Right, right, right, right.

David: So then that's probably when you moved markets right?

Leo: Yes. Okay so what I did then was my friend gave me advice to go for a smaller city so I went on Google, I was just like smallest cities in Texas. I don't know why Texas, I just chose Texas, and up came San Angelo which has like a 30,000 popula- that's completely wrong but something around there. Like a smaller population and I pulled a high equity absentee owner list that was built before 2000. So I pulled that list, it was about 200 properties and I would just pull them, skip trace them, spend-

David: And you pulled high equity absentee?

Leo: Right.

David: So that- so your lead source was basically a list off of Propstream that was high equity absentee and then the marketing method was cold calling.

Leo: Yes.

David: Love it, okay cool. And this is virtual by the way guys, he lives in San Francisco, did and does but- and did some marketing there, it was saturated, said you know what? This isn't really for me in this market but not the whole thing. You didn't throw in the towel, I love it. He persevered and he got that list in Texas, randomly just picked a small city, your methods are madness but I love it, you know? You found it, you started- really the thing is people overanalyze this. They say oh, what market am I going to do? And then they'll spend days or week or some cases, months trying to figure out where they want to do the marketing and it sounds to me like it took you maybe like 10, 20 minutes to say hey boom, let's do it, got the list and then you started the marketing. That is the- that's the nuts and bolts guys. That's the meat and potatoes of this business is the marketing. So Leo, I didn't mean to interrupt you, I'm just commending you. You did great.

Leo: I love that and I credit all that to people I've asked like you. For example, I would ask like a question that I had a problem with like I can't choose a market and they would just slap me in the face, say just do it right away.

David: Yeah, and be like there's 2000 of them, pick 10 of them. Yeah go, right.

Leo: Exactly. So they would just snap, just like pick one, pick one, pick one. Don't even think.

David: Let's go.

Leo: If you wait too long, you'll lose. So I picked one, San Angelo. I got there, started calling them. As soon as I started calling them, they would give me the time of day, say yes like-

David: Cuz they're not getting- it wasn't a saturated market.

Leo: Yeah, exactly. So I talked to them for a while.

David: Now, did you- I'm gonna interrupt for one second. Did you connect with any other wholesalers in San Angelo?

Leo: No, I did not.

David: Cool, doesn't matter. I was just curious if you did. So you know the easiest way to find the wholesalers typically is go into Google and type in sell house fast [enter city]. Not that word but enter San Angelo, St. Louis or-

Leo: Right.

David: And anybody that's paying for AdWords, boom wholesaler.

Leo: And you just connect with them.

David: Connect with them especially if you have a deal with no buyers, they do.

Leo: Right.

David: And it's not always wholesalers, typically it is but it's gonna be investors, people that are buying for their own rentals, buying for their own flips and/or wholesaling, so somebody like me for example. You know I use AdWords and the best deals that come in, we keep them, we flip them and we add them as rentals, we BRRRR them or we seller finance or we do whatever we want with them. And the ones that we don't like, we wholesale and those guys that are paying thousands of dollars a month for leads, those are the guys that aren't going away. They've been in the game usually for a couple years, sometimes people start with AdWords but it's rare cuz it's expensive, right? So just a pro tip if you're ever looking to sell a deal that you can't sell in a foreign market or a virtual market, use that tip to do some networking, you know.

Leo: That would've have helped me a ton.

David: Think about it though. Those guys have buyers list so if you get a deal, go you know, go  click on two or three of those people, call them and say hey, sorry that you just spent $40 on my lead- on this lead but I got an opportunity for you to go make a couple grand. I got this deal, I'm sure you probably have a buyer, connect the dots. That's all we do, right?

Leo: Right.

David: Go on though. I don't mean to interrupt.

Leo: No worries, man, I love that, I love those things and those are going to help your listeners as well, right?

David: Absolutely. That has some value of course.

Leo: Yeah, so I started calling them up, they gave me the time of day. I would get past the- at least the first four seconds of the introduction and in the middle of my calls, I called my buddy over just to like- just to be over in my space so he can one, listen to what I was doing and two, I can feel more confident.

David: Yeah, absolutely. Confidence is really where I was going. Excuse me. You nailed it.

Leo: Cuz getting cussed out when you're with a buddy is so much easier. You could just laugh it off after. And one of the first cold calls of that list, there was this older gentleman, he's 79 years old. I talked to him and I was- once I got past the first introduction, actually a lot more, I asked about the condition- I asked the 4 pillars, right? The condition, motivation, timeline and price. I got past all of that and at that point I was like I've never gone this far, I'm kinda stumbling now.

David: Hahaha, good problem to have.

Leo: Right, exactly. I was like uhm uhm, I uhm. I was just stumbling the whole time and wondering what to do so I grabbed my script and looked and I was like okay, I kept him on the phone, I built- I used that time to build more rapport while I ran the numbers on my computer and Mojo, you can click this little Zillow button and it brings you right to Zillow.

David: Sure.

Leo: And I looked at Zillow, checked what it was worth on Zillow, then put the address into Propstream and quickly ran the comps on there and while he was building- good thing he was a little older, he had a lot to talk about so he was talking all the time. I was listening but also running the numbers and sending the property to one of my friends who also ran the numbers and five minutes later, he finished talking about his cows, his cattle in his ranch and my buddy sent me, he was like it's a deal, just get it locked in right now, and it was- he wanted 90 for it and 90 was a deal already.

David: Okay.

Leo: The ARV's around 160.

David: Aight.

Leo: The comps were around 160 so it was already-

David: So basically you had the you now, the lower 50 cents on the dollar.

Leo: Right, it was already a really good deal and what I did there, what I- I listened to a podcast before I called, right? And it was a negotiation podcast on BiggerPockets, it was one of those negotiation ones and I use those tactics of what they gave me in the podcast exactly in the cold call, and we were talking, I was trying to negotiate down from 90 just to practice it. It was kind of risky but I was just doing it and I told her- I said this, I was like hey- his name was David as well. I was like hey David, do you see yourself going a little lower than 90, can you help me out a little bit? And he would give me a number and I'd say like ouch like I don't know if I could be your buyer at that number. I was- I didn't even know what I was saying. I was just like oh yeah, that's what he said, like I'll just say it. I was like I don't think I could be your buyer at the number, I have to be closer to 83 which is se- like 7k less.

David: I was just having this conversation with my students yesterday about asking that one simple question. You know if I can pay cash and close quick and provide a bunch of convenience to you, you know is that the best you can do? That's it, that's the question. Always ask this every single time. Basically as soon as I get somebody to tell me their asking price, I follow up with that question every single time. I've done it 10 thousand times. So the fact that you did it, saved you 7 grand or made you an additional spread in the deal at the time, 7000. I love it, it's awesome.

Leo: Right. When you say it, just stay silent too.

David: Just be silent, yeah absolutely. Don't be in a hurry. Yeah, just ask him.

Leo: You know what I did, I just kept talking like oh is that okay, is this this this this and we just kept stumbling and eventually he said can we meet in the middle at 84?

David: Nice.

Leo: So I got 84.

David: Which isn't even the middle.

Leo: Right, it was kinda like a little bit here.

David: Yeah, that's the middle- that's how I define the middle. Yeah, absolutely.

Leo: 84 and I didn't know how to send over the contract, I didn't know what the contract was. That's something I want to talk about really quick. If you want to get into wholesaling- if you don't know anything about the contract, just start cold calling first, right? Because I know a bunch of friends who contacted me to get into wholesaling like I don't know what the contract is though. So for a whole year, they've been learning wholesale without taking any action just because of the contract.

David: Can I give you a free tool that's going to blow your socks off?

Leo: What is it?

David: cashoffercontract.com.

Leo: cashoffercontract.com.

David: Yup and it's going to forward to my website over on discount property investor but the URL is cashoffercontract.com and what we do is we help people generate cash offers in under 3 minutes. So you can go in there, you can fill out 12, 13 fields in under three minutes and they will spit out a contract that will be emailed to you and then you can then email it to your seller. It's awesome, check it out.

Leo: That's going to help a lot of people. I'm going to check that out.

David: And spread the word my man. If your over in BiggerPockets in your forum and you're going to town, drop some links in there man, but that's a great tool, it's free. We don't, you know, we're not asking for anything in exchange for that but you know, I've heard this time and time again Leo that, you know, contracts are confusing and it gives people analysis paralysis so why not automate that process for people? And it's the same contract that I have used to flip 600 houses. So I'm not like using a different one, it's the same one we use in our business. You can use it in any state, doesn't matter if your state's a title state or a closing state or any of that. A contract's a contract. Check it out, cashoffercontract.com.

Leo: I love it, I love it. Okay, so from there we agreed at 84 and I ask him: do you have an email or do you have- is there a library around you I can send the contract to? And he was like no, just I can't take anything, you just have to mail it to me and at that point, I was like oh what am I supposed to do here? So I looked it up, I asked some mentors and they say you just have to express ship it to him.

David: Yeah.

Leo: I printed it out, signed it and express shipped it to him, waited. He got it and he checked it and I realized I put the close date on February 30th, and I don't know if you noticed it right there. I didn't notice at the time but there is no February 30th.

David: I didn't notice that cuz I'm an idiot but hahaha. But the title company would have caught it.

Leo: Right. There's only 28 days, so I was like oh.

David: Right. I always rely on the right people, right? One guy can't do it all himself so you gotta keep the right team around you. It's team, I love it but you- but so what? So did you just have him scratch it out and then initial next to it? That's all you got to do.

Leo: Yeah, so I thought that was okay so I called the attorney and this is my time for finding an attorney. I called a bunch of attorneys, and one of them said like hey it's fine, it will just go to February 28th or March 1st, so like perfect and I went with that attorney which was also his attorney that he went to when he purchased the house or something like that.

David: Okay.

Leo: So he got the contract and he signed it, he sent it over. Took so long to get to me and I was worrying about it. I was worrying that it went somewhere in the mail cuz I worked at the post office so I would just throw them into random sometimes when I was just- it was just super tiring, sorry about that, but I was just worrying about it and during that time, I started posting on Facebook groups to find my buyer.

David: Okay. Local Facebook groups within San Angelo, Texas?

Leo: Yeah, so there wasn't a San Angelo group but I would just look up TFW like anywhere around San Angelo like Houston, anywhere in Texas. I joined all of them, posted it on there, got a bunch of emails. Emailed it to everyone thinking like oh this is easy like I got so much emails, one of them is gonna be my buyer. Sent like 7- like 50 emails out and stopped marketing, I was like it's fine like 50 of them, one of them is gonna be my buyer. So for a week I just waited for responses and I got nothing except for people asking for more pictures so I started getting them the pictures and I realized like oh, this isn't as easy as I thought, I have to keep marketing. So I kept marketing, kept sending it out and I had a bunch of like KeyGlee people come to me and they came to me, asked for a JV or like one of those daisy- I don't know how you call it but-

David: Yeah, it's like a daisy chain, joint venture, same thing really. They buy it from you, they sell it or they just joint venture with you. It's all just semantics with contracts. Same thing though, you're joint venturing with them.

Leo: Yeah. So at that point, one of the key lead people came to me, I was like do you want to JV? And I was greedy at that time, right? I was like no, I can get- I can get my buyer on my own. I can get my 9,000, right? I don't need to work with anybody and I that was my mistake and I kept trying to find a buyer and I found- I went to cold calling. So I pulled a list of San Angelo cash buyers on Propstream, about 500 of them, I started cold calling them.

David: I love it man, I love it. So you don't throw in the towel whenever you get no's in San Francisco on the pre-foreclosures and you don't throw in the towel after you do a bunch of marketing and you don't get it. You're persistent and that's what got you this deal I'm gonna be completely honest with you. We just met, what was it? 40 minutes ago? Right?

Leo: Right.

David: That's what got the deal, it was persistence. Now obviously the knowledge that you learned, you know, gave you the confidence to go from step to step, of course, that's very important but the persistence is really what got this done. So you said okay, I'm going to send a bunch of emails out. Nobody wanted to buy it from you, you got some KeyGlee people which I'm very good friends with Jamil, the owner of that and he is just- that is a phenomenal company, they're blowing up. They reached out and you were like nah you know, not at this time. No big deal, you know, you wanted to do it on your own. I recommend people try to do it on their own because they're leaving money on the table that way. In certain cases though, they may have buyers that pay more and/or buy, and if you don't have that then not you know, but it doesn't matter, either way. So you said no, this is a great learning experience, and then you went on and you got a list of cash buyers and started cold calling those people. Persistence guys, do you hear this? I love it. So Leo, proceed.

Leo: So cold calling the cash buyers and same process, you still get cussed out, you still get a bunch of no's.

David: And a thick skin.

Leo: Right, and when you call the cash buyers list, it's not actual like financing partners, it's not all financing partners. It's some- it's everyone who has purchased a home with cash and I didn't realize that.

David: Not everyone's an investor basically.

Leo: Right, exactly. [inaudible].

David: But that's okay.

Leo: 200 calls to get the one investor and we started talking about it and he went to go see the property and he found foundation issues and I didn't know what that meant. I was like oh, it's just a crack, can't you just seal it with some concrete, right? Or hide it or do something with it cuz I didn't understand. And at that point I was just- I was just getting kind of discouraged so I kept getting people to go take pictures and buyers that went there were just asking for more and more pictures and I was just stressing out, and the seller at this time was also getting stressed out, was just like what- are you going to get this thing sold? Like when are we going to close?

David: Was it vacant?

Leo: It was tenanted, so it was-

David: It was tenanted, that makes it even harder, yup.

Leo: Right, so it was two different properties on the same lot. One was a detached garage with a tenant living in in there and then one was a regular 2 bed, 1 bath.

David: And there was a tenant living there or was it the owner living there?

Leo: It was two different tenants.

David: Two different tenants, got it. Okay.

Leo: Two different tenants and that a problem and then we- the buyer was getting stressed out. The buyers needed more pictures, seller was getting stressed out, and the seller was like I'll give you another week to get this done, even though our contract said February 30th or May 1st. He was I'll give you another week so I was like okay I got this, trust me I got this. So I went to the KeyGlee person, he wanted more pictures so I sent him all the pictures. He was interested and he got his buyers to go check it out and then the guy, my buyer that I cold called, he was checking it out so I had a bunch of people checking it out and the storm hits.

David: The ice storm?

Leo: The ice storm hits.

David: The snowmageddon.

Leo: Yeah, that thing. In Texas, all right like-

David: Man, you guys- I mean it obviously screwed up infrastructure with the power grid and everything. Yeah, but everyone was freaking out cuz like this much little snow or ice but I'd see how it totally screwed things up. So that probably screwed things up for you too, right?

Leo: Definitely, so everyone was freaking out. The seller wouldn't be able to get on the phone, his power was out. The buyers couldn't- didn't want to go on the roads and I told the seller I would get it done in three days. It was the middle of the storm so I was stressing out trying to get it all out there, trying to just-

David: Yeah, it's like it's out of your control if you can't reach people or people aren't wanting to drive, like you just gotta buy another week or two's time. Right, right.

Leo: Right, exactly. So I called the seller one more time. He was like yeah, I'll just give you a few- another week, right? So I was like thank you, thank you very much. Like at this point, I just wanted to get it off so I can not screw the seller over, right? Cuz it sucks if I was- if I wouldn't be able to give it like give the seller the money he wanted after waiting for so long. Finally, I talked to my buyer, the buyer I cold called and he was taking way too long and the seller wanted it done in two days, so I go- I just go to the KeyGlee guy and say like hey, like if you can get it off tomorrow at 87.5, I would just give it to you cuz at that point I just wanted it off for the seller. He was like yeah, I'll have people check it out and he did. He sent a buyer over there, I had the seller give him the keys, and I missed a big part. He had to get the tenants out himself, but he- thankfully he was open to it so he kicked both tenants out and gave them a week's notice.

David: Prior to selling it?

Leo: Prior to selling it.

David: Wow, that's very fast to kick tenants out. Yeah, but either way, he got it done. Cool.

Leo: Right. So the seller got it done and then the buyer on his side was happy so we were good. We were like okay 87.5, we're closing. I called the seller, we're closing. We got the title company in, we're closing, right? So then I go to Texas to visit one of my good friends Aiden. This is my first time meeting him, we had a great time. I go over there and we're closing that while I'm there anyway so it's kinda like a celebration. So I go over there and as soon as I land, I get a call from the KeyGlee guy saying like hey, there's a few problems with the contract, the buyer doesn't want to pay closing costs so we're going to have to figure that out. So I was like huh, so I check my contract.

David: The buyer doesn't want to pay the closing costs? That's so random.

Leo: It is, right?

David: Usually the buyer pays all of the closing costs especially if you're getting a good deal.

Leo: Right.

David: It's the seller that typically doesn't want to pay. Yeah, well okay whatever, so go on.

Leo: So I didn't know, I didn't even know what was going on and then I waited a day for them to figure that out, to see if they would get something done cuz the buyer's supposed to pay closing cost. Then the next day they called me again, say hey Leo, yeah the buyers not budging, he's broke after this, after paying. He only has enough money to pay for the property, he's broke after that cuz he already sent in the $5,000 EMD and that just- I was just like what? How could you be broke after- like if you're going to take out this project, how can you only have enough for the property?

David: Yeah, I doubt that that was the real reason, that's just what we were told.

Leo: Right, exactly and at that point I was just like ah whatever. It was just so frustrating and I talked to the wholesaler like what can we do? He wanted me to get the seller to pay closing costs and I didn't want to do that but I called the-

David: You've already asked the seller for more time and you already got him down. Yeah, you're in a tough situation right there.

Leo: Seller leaves a voicemail to me saying call me right now and I was like oh shit. Oh, can I swear?

David: Yeah you're good, yeah. This is explicit, yeah.

Leo: Cool. I call the seller like 5 times, he leaves me- he hangs up each time and I'm just stressing out at my friend Aiden's house, he's like what is happening? Sellers like not calling me anymore and my buyers are screwing me over and I'm just in the middle of this stressing out but luckily I had my boy Aiden in there. He was like, dude we're living on a pile of dirt, stop stressing about this man.

David: I love it. Me and Aiden share a very similar mindset. Man, this is just a big ass rock flying through space, you know. All this emotional stuff that brings us down is just imaginary, you know, so very cool. Very cool that Aiden was there to you know, help get you through that. Very cool.

Leo: It was the best slap in the face ever cuz I was like oh, the problems I have right now are really good problems. I'm 18 about to close a wholesale deal. [inaudible].

David: Yeah, that's an excellent problem and the fact that you had a bunch of roadblocks is actually kind of good because if your first deal goes super smooth, then you're going to get discouraged later like you were saying, right? It's almost good to have a very difficult one because then everything beyond that is going to be easier, maybe not easy but easier, you know?

Leo: Right. You get tumbled down a little bit but you learn everything [inaudible].

David: Absolutely. So what happened once you got the guy on the phone?

Leo: So the wholesaler talks to me again, the KeyGlee guy and he's like dude, we're just going to have to come up with the closing costs and he wanted me to pay all of it, right? And I was- at that point, I was just like how could I pay all of it if I brought you the deal? So we talked a little more and long story short, in that sense I kind of just said you pay 1200, I'll pay 600, right? Cuz you have more- you have your buyer with 5k on the line and realizing that he could have paid all of it, you know. I bombed the deal, he could have paid all of it but I paid 600, he paid 1200 and we signed an addendum and I also didn't know what that was so I had to look it up and it's just like an agreement saying who gets what, who's paying what, so we signed that.

David: Yeah, an addendum just basically is like an amendment, like look at the Constitution of the United States. If they want to change something, they amended to it, they make an amendment. An addendum is basically an amendment, another word for it. Yeah, absolutely. So it's typically, it can be you know, as small- as simple as just two or three sentences typically.

Leo: Right, right, and it kind of was, you know like buyers paying this, sellers paying this. So we did that, signed everything and it was silent for a day. So I- we hung out in the day, we just hung out in the pool, chilled, relaxed and my day going home, I'm on the plane about to head back to California from Texas and I get a call from the KeyGlee guy, he's like dude we just closed, congratulations and I was like ah. I just dropped my phone, it was like that was fun, that was good, we're good.

David: It's a lot of weight off your shoulders knowing that it's possible. You knew it was possible but you didn't believe it truly until you did it, right? And then now it's like okay, I see all this people doing this online, making tons of cash, I did it, I got one under my belt. Now it's like okay cool, let's just do a hundred more.

Leo: Proof in the pudding man.

David: Proof in the pudding, I love it.

Leo: It's a whole different mindset is when you close your first deal. Now you can put your all into it and believe that something's going to come out, whereas before I only put like maybe 45% cuz I didn't fully know. I didn't have that- I didn't have the pudding. So it closed and I texted everyone saying I closed, I closed, I closed.

David: So you did work with KeyGlee then?

Leo: I did.

David: Nice.

Leo: I did as a final resort , and it was a smooth- well, it wasn't really a smooth process but like in the end it still went well. So when I landed, I called the seller, right? I was like hey David like congratulations, you just got your 84,000. How do you feel? And he's like, you know I- I- he's talking to me, right? in this tone, and I'm like dude, you just- like what happened? You just got 84,000. He's like yeah but you know the attorney we worked with? He just died.

David: What?

Leo: And I was like are you serious? What happened? And he's like he has- like a week- the week we closed, he got a heart attack.

David: That's terrible.

Leo: And it was just like, oh my God man, that's- it's just so insane like how many things happened during this deal and the attorney dies? And it's just like, what?

David: Wow.

Leo: So that was really sad and it was sad to see- it was sad to hear and it kind of bummed me out a little bit but I talked to the seller. On the phone with the seller, I was telling him about all the stuff he could do with his money, what he could start doing with his life cuz he was- during this time, I talked with him like 26 times on the phone.

David: Right, tons.

Leo: Getting to know him, getting to know his family, getting to know his cows that he has and his cattle, so I was kind of lighting him up trying to give him as much as possible of my positivity and he felt fine after and my mom picked me up from the airport, we went back home and it was good and that was my first deal.

David: Dude you did awesome. I love it and you made it 2900 bucks on that deal.

Leo: 2900.

David: Dude 2900 is a homerun, alright? Don't let that you know, discourage you thinking that you were trying to make five or eight or ten or twelve. Basically 3 thousand dollars is a homerun, not necessarily because of the fact that you got paid, but the fact that you were able to prove to yourself that you could do it and that it's possible and that it's not just smoke and mirrors on the internet of people flipping houses with little to none of their own money. So recap, Leo, you are 18, I got to drop that in there because that in itself is impressive to me. You got your first deal, you made basically 3 grand on it. Lead source: property lists off of Propstream, a list of course from Propstream, high equity absentee. You decided to go into a foreign market that wasn't saturated, right?

Leo: Right.

David: And this is a virtual wholesale. You didn't have boots on the ground that typically you kinda need in order to do virtual wholesales, not necessarily need but it makes it easier. Instead, you found buyers that became your boots on the ground and you had a seller that was willing to work with you and these buyers. Again, couple factors that helped, otherwise you would typically need to partner with somebody or hire somebody locally in that market to do these type of virtual deals. KeyGlee stepped in, found a buyer after you emailed your list and with the extra step of pulling a list of cash buyers and cold calling those people. Very well done. You learned from online books, forums, podcasts and mentors that you basically met online. You didn't have a coach, right? I mean you had mentors of course but like you weren't in like any sort of a coaching program or anything like that were you?

Leo: No.

David: And that was great. How long did it take you to get the deal from the time that you started marketing? Now notice I didn't say the time you started learning, cuz that doesn't count in my opinion. When you start spending money or time, sending mail, bandit signs, cold calling, cold texting, whatever it is you want to do, right? How long did it take you start to finish? Marketing's are getting paid?

Leo: A month-and-a-half I believe.

David: That is fast. Great work Leo, great work. Man, that is phenomenal. I love it. Well, I think the biggest lesson for the listeners and the viewers today is mindset here guys. You had mentioned earlier a couple things that really stick to me right now. One was you know, you got to have good energy, you know if that requires you to stand while your calling and/or jump around, you know to get that energy up, I highly recommend you do that. You had also mentioned about how discouragement is just waiting to find you and it will, right? Sooner or later, so embrace that, right? Instead of like getting all butthurt and like throwing in the towel, like change something up, you know, or figure out a way to where you are okay, I mean basically the sooner that you are comfortable being uncomfortable, the more successful you will be and I don't care on what industry, what field, what you're doing. You know, your comfort level needs to be open, needs to be- you know, you got to get yourself uncomfortable just period. And if that means making cold calls or calling people on the phone or making cash offers which we talked about earlier, we have a simple tool to help you with that and send an offer in less than three minutes from your cell phone by the way. Simple, simple, simple. cashoffercontract.com. I love it. Man, thank you so much for coming on, sharing your knowledge, sharing your first deal. Congratulations by the way. First deal done, made three grand and you proved to yourself that you can do this over and over and over again and you can do it anywhere in the world basically too with your first deal being virtual. I take my hat off to you. That's awesome. Great work man.

Leo: I appreciate you.

David: Before we wrap up, guys go over and follow Leo on Instagram, his handle is coach.chun. C-O-A-C-H-.-C-H-U-N. Am I saying that right?

Leo: Yes, you are.

David: coach.chun, this guy is going to be making some moves in the next couple years, I can see it now. He is so young and so wise, by the time he is my age, he is going to be worth 50 million dollars, I'm confident of it. Confident of it. Leo, what would be some parting words that you can share with the audience? You know if somebody is in your shoes, right? Like let's not speak to everybody here for example, let's just speak to like the 16, the 17, the 18 year old's cuz we have a lot of people that reach out and they ask can we do this? Is it legal? Is it possible? So on so forth and I want them to hear it from you. So what would you say to anybody that's listening, you know, that's 16, 17, 18 years old, maybe even 20 for example but you know not middle 30's like me.

Leo: If you are let's say 15, 16, 17, 18, 19, 20 in that range.

David: Sure, sure.

Leo: And you're in this space where you're trying to learn. The most important thing you could do is just step out of yourself and just take action, as much action as you possibly can cuz what we've been taught from the very beginning of our lives until we're about maybe like until high- end of high school. We're taught that we can't go do whatever you want to do. We can't go make these type of moves. We have to go with the typical route in the system and do everything and follow- follow a sheep lead pretty much. So if you want to do this stuff, you have to jump out of yourself, get out of your comfort zone and be the best person you could be by taking these steps, taking these growth steps. Start reading books, start waking up a little earlier, listen to David's podcast while you're working out at the gym, do these things cuz that's going to help you grow out of your skin and you're going to be a whole new person in just three months if you take these actions ever single day cuz that's what's going to help you grow, that's what's going to help you get out of the mindset that you can't do it. Instead of saying I can't do it, now you every single day, say I'm the greatest in the world. I can do whatever I want to do. That's what's going to help you live your life. That's going to help us as 16, 17, 18 year old's be the change for the world if we can do that for ourselves. That's what I got.

David: Dude, that- you nailed it. Guys I'm gonna recap. Step out of your comfort zone and take action and you referred to it as get out of yourself. I like how you referred to it that way, it helps people frame the mindset and mindset is everything, right? So tell yourself that you are the greatest. Don't sit around thinking I suck, I suck, I suck. When you do that, you're going to suck at what you're doing. But instead, tell yourself you're the greatest and if you have a failure, it's not a failure, it's a lesson and that lesson will help you become even greater. Leo, thank you so much for coming on. Again, two birds, one stone. Tons of value for the audience. We had the opportunity to network with each other, get to know each other. We're going to see each other actually later this week at a conference that we're going to so it's gonna be fun to grab some coffee or some lunch or something, and yeah again, so happy you came on, grateful for your time, Leo. Thank you so much.

Leo: David, thank you for your energy, thank you so much. It was a blessing to talk to you, I'll see you in Florida.

David: See you next week. Guys, go follow Leo: coach.chun and don't forget, if you're looking for a solution to generate an offer to a seller, go to cashoffercontract.com. You can use your phone, generate an offer in less than three minutes and you will be off to the races doing your own deals. Guys, thanks for tuning in. Until next time, signing off.

Thanks for listening to the discount property investor podcast. If you enjoyed this episode, please like, share, and subscribe to help us reach a wider audience to jump-start your real estate investing career, visit freewholesalecourse.com- the most complete free course on wholesaling real estate ever. We would also appreciate it if you left us a review on iTunes or Stitcher. Thank you in advance for your support and remember you make your money when you buy, you get paid when you sell. Now let's go build some wealth.