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Flipping the Script! This week instead of us interviewing a guest or talking shop, we are sharing a podcast where we are interviewed. The Simple Wholesaling Podcast Episode 57! If you are in the IN area you should hook up with these guys. Check out simplewholesaling.com for more from Brent and Jaren. We enjoyed chatting with them and look forward to connecting again in the future.
This week we are doing something a little bit different. We are interviewed by the Simple Wholesaling Team. [00:01:01.00 – inaudible]. This episode is actually us being interviewed by them. So this aired on the Simple Wholesaling podcast, their episode number 57. If you liked what you heard, check out Simple wholesaling and we thank you guys for tuning in.
Brett: Okay guys so we are so excited for today’s show. We are going to do things a little bit differently, it is time to get your doubles on, right Jaren?
Brett: We are going to play some doubles tennis…
Jaren: I don’t even know what that is.
Brett: Well ladies and gentleman, we are interviewing a couple of really cool guys. We are interviewing David Dodge and Mike Slane. This due is out of St Louis Missouri and they run a wholesaling company called House Sold Easy. They also have their own podcast and a coaching program; it is called Discount Property Investor. We just got to be introduced to them, they are cool guys and they are running a very successful business out in Missouri. So thank you so much guys or joining us. What’s up?
David: What’s going on guys, thanks for having us.
Mike: Thank you.
Jaren: Yeah guys it’s a pleasure. To kick this thing off lets conduce readers digest version. But I would love to hear your guy’s background on this. We will start with you Dave; you know what’s your background? Where do you come from? How did you get involved in real estate? And then once you are done, Mike you could also answer that question for us.
Brett: Then go into how you guys partnered up on this in your business that you guys have now.
David: Sure, so my name is David Dodge, a partner here at Discount Property Investor/House sold easy properties. I have been investing in real estate for 9 maybe 10 years passively. I have always had jobs up until about… maybe 3 or 4 years ago, and then I started doing some entrepreneurial type businesses. About maybe 2 years ago, maybe less than that I jumped into real estate full time and started wholesaling properties. So when I say I have been investing in real estate for ten years, I was passively investing, I was buying properties [00:03:13.18 – inaudible] MLS, I was doing your traditional 20% down, 80% financing. Just kind of parking cash in investment properties. I wasn’t buying at discount because I didn’t know you could do that necessarily. Yeah, for the most part 2 years as a full time real estate investor. So this point in time I would consider myself to be an expert wholesaler. I am a landlord, I have about 15 rental properties and I do probably about 2 or 3 rehabs a year. I manage my own properties; so I am a landlord, I am an investor, I am a rehabber, a property manager, a wholesaler and I also dab a little bit in reconstruction.
Jaren: Awesome. Sounds good.
Mike: [00:03:58.13 – inaudible] kind of a jack of all trades. My story is a little bit simpler. I am the laziest busy person I have ever met. So the reason I was drawn to real estate was the passive income. The whole concept of being able to accumulate [00:04:13.24 – inaudible] and have someone else pay down the mortgage, pay me a little bit of cash on the side so I can live the lifestyle that I want to; was always hugely attractive to me. So throughout college I always thought… I can’t really buy a house now; there is no way for me to buy a house now. So I did. I put it off until I graduated. I had a decent job was working [00:04:36.28 – inaudible] first rental property. So from there I think it was about 2009 I bought the first rental and eventually just worked on paying off my debt. Reached my… one of our other friend calls it a strike number, which is basically my passive income was enough to pay my bills month to month. I said forget it, I’m out. I quit the day job and decided I am going to be in real estate full time. Well I wasn’t living a luxurious lifestyle by any stretch of the imagination, but I had enough to pay the bills. So I didn’t have to go to work, so I wanted to do something kind of fun. So I have always considered real estate my jobby. A job and a hobby.
David: Jobby, I like that.
Mike: My wife does not like that when I say that because [00:05:23.02 – inaudible] this is my jobby, I love it. So I am doing my jobby now, I jumped into wholesaling without ever doing it. Took me about 6 months to figure it out. So I am not the smartest guy obviously. I figured it out…
[00:05:39.09] audio distortion
I guess I kind of transitioned then into how Household easy got started. So I was wholesaling like I said for several years. I met up with [00:05:53.28 – inaudible] and Bill Maret. His… what is a nice way to say old?
David: He is a character.
Mike: He quit his job and he was buying rentals, so he was buying some rentals from me. Bill was kind of the mastermind behind his office, his idea was let’s get a bunch of real estate investors together in one office building, and we will just be able to do more deals if me, Dave, Bill and Ray; our other partner just sharing a space together, we will be able to do more deals. So that’s kind of the infancy of the House Sold easy brand or partnership of the Discount Property Investor partnership.
David: So there are 4 partners in the company and we are all investing in real estate, and kind of just kind of having different niches. Me and Mike were wholesaling, our other partner Ray had been wholesaling for 20 plus years. Bill was kind of more the landlord/rehabber. He was doing rehabs as well as acquiring properties for his own portfolio. For the most part we got together and decided, instead of us all spending you know, 2/3 thousand a piece a month marketing to the same people; let’s put this budget together, form a company and we can do more deals; because we will have more people to lean on and we also won’t be wasting money marketing to the same people. We have kind of niched ourselves into different corners o the business. We all obviously focus on wholesaling; that is our core business. However, we have different corners for rehabbing and land lording and coaching. So everyone kind of has a hat to wear and we all work together, it’s been really a big success. I wouldn’t want to go back to doing it on my own that’s for sure.
Brett: That’s awesome, that’s good. I always look… we interview a lot of people on our podcast, and you guys really represent a lot of what we are here at Simple Wholesaling. Number one is our company is called Simple Wholesaling, yours is called House Sold Easy, basically simple. You guys have 7 members on your time, we have 7 members, St Louis is very similar to Minneapolis so you probably do the same kinds of deals. That’s really awesome. One thing is… talk to our audience about… you guys took… and we run a meet up here in Indianapolis and I always talk about partnering with people; because a lot of people are new, they have been doing it for a little while, but they just can’t get the hang of it, they can’t quite get up to where they need to be. I always talk to them about finding somebody you can partner with, and obviously you guys have taken that and done it very well, but also the bad part of a partner I always say; it’s like a marriage. Especially now you have 4 people in the bed I guess you could call it. Sometimes that can be difficult, how do you guys… handle all that? Does everybody kind of have a separate role and you guys don’t get into each other’s way? How does that all work in your partnership? Or how can you tell our audience about why this has benefited you so much on this partnership plan.
Mike: Yeah definitely so… obviously there are pros and cons to working with other people. So… I always look at it as which one outweighs the other. So, the challenges that we face by working with other people I think are minimal compared to the benefits of working with someone else. If you look at the number of deals any one of us could do on our own, and… the amount of effort it would take, you wouldn’t be able to match that by having multiple people in defined roles. So again it is creating a bigger pie for us all, as opposed to having the whole pie to yourself. So I think the pros outweigh the cons.
David: If you divide the pie into 4 slices is what I think you are getting at; it’s still going to be a bigger slice than if you had the whole pie. We are consistently doing 15 deals a month, maybe a little more occasionally on certain months. Call it 15 to 20, on average for each of us to do 5 on our own a month would be very difficult if you include the amount of time we are working. You got to think to is work less by having multiple people on your team, and have a role for somebody marketing to sellers, and a role for somebody marketing properties that we [00:10:26.11 – inaudible] and somebody whose role is to update the website and answer the calls. Another role for individuals out in the field [00:10:36.01 – inaudible] properties and so on and so forth. Doing all that on your own every day is just challenging, we all did it.
Mike: Yeah and it’s not necessarily that we couldn’t do it on our own, I could do 5 on my own, Dave could do 5 on his own. But we have got a whole lot of other things we are building on.
David: 5pm in the afternoon or whatever when the clock strikes 5 I want to be able to turn my phone off an not sweat missing 3 or 4 buyer calls.
Mike: One of the great tools that we have used and are implementing and still in the process of implementing more efficiently is the EUS model from a book called Traction. So that is the entrepreneurial operating system and that… I think the main concept or the biggest take away is to take the right person and put them in the right seat. So in our company you have one person who is the lead of acquisitions, then you have one person who is the lead of sales. So one person again comes up with the process and what is supposed to happen for that, then leads that charge. Same with marketing so you got one person in charge or marketing or any number of things.
Jaren: Awesome that’s good. Guys we will definitely put that in the show notes at SimpleWholesaling.com/episode57. Traction, we have talked about Traction a lot. I have read the book Traction a lot, if you have not read the book Traction and looked at the EOS model… you guys would probably agree Mike and David; is it a game changer?
David: Oh I would say so absolutely.
Mike: Just business planning together… we took a weekend retreat. It took us a long time… yeah it’s awesome.
Jaren: Well let me jump in there guys because I want to ask a few questions. I used to say in times past that I am the Lorax, I speak for the noobies. So… I want to ask you guys, some noobie questions. So take us back to… go back in your mind to when you were first getting started in this business. Obviously right now you have a team, you got somebody who is doing this and doing that. But take us back to when you were a one man show. We run… Brett mentioned out meet up. But we run into a lot of people who are studying and studying this business; but they wont… there is some sort of blockage for them to just simply take action. I want you guys to walk us through… from first learning about wholesaling; how you get into your first deal.
David: That’s a great question, guys. We have built a course to help people with this exact same problem. Mike, how long did it take you to do your first deal?
Mike: I think it was close to six months.
David: So like from the day you said I am going to be a full time wholesaler to the time you did that first deal and get paid.
Mike: Maybe it was three or four months after that. Six months of me saying I am going to do this…
David: Okay. So it took Mike six, it took me probably three and a half give or take. So from the day I was like, hey I am going to do this wholesaling thing full time… it took me… three and a half months, took Mike almost six to get that first pay check. I think the reason is… is because you start looking on forums online, you start buying books. I know I bought 30 different books about wholesaling, and they all kind of say the same thing… just a little bit different perspective. It wasn’t until I hired a coach… a wholesaling coach that really took my business to the next level, and actually started making money is a better way to word it. I started on my own, I bought a bunch of books, I was buying courses online… I was just digesting all this information. I was in analysis paralysis mode. I knew what I needed to do but I didn’t act on anything. Everyday thinking I probably need to learn a little bit more, but really as you guys… as the name of your company states; Simple Wholesaling. Wholesaling is a very simple business. There is a difference between easy and simple. Whenever you say simple, like the processes you put in place in order to do a wholesale deal are very, very simple, but not necessarily easy. But often time’s people confuse those two things. They think this business is going to be hard, there is going to be a lot of things that need to go into it. Essentially what me and Mike have done is we have created a free course online called freewholesalecourse.com. It is a pretty easy domain name to remember; free wholesale course. So freewholesalecourse.com. What we have done is we have taken all the information that is out there; all the books, all the courses, all the people who are coaching and teaching these things on programs on how to get involved in wholesaling… put together a free course to show people that this is… not only simple, but it can be easy. Just don’t over complicate it… and if you just focus on one at a time and… go through the course and figure it out, it doesn’t have to be that difficult.
Mike: Right, I think the hold up for new investors… I mean whatever it is; we try to address a lot of that in the free course as well. So again, it is never going to be that tipping point for everyone but, I don’t have a contract, I don’t know what contract to use. Well we put one in the course.
Mike: I don’t know who I should call. We put that in the course, we tell you how to get your phone ringing.
Mike: I mean all those initial stopping points we try to break though… at least a little bit on the course.
David: Yeah and just make it easy. As you guys know in wholesaling… you got to market to get your phone ringing. You got to answer the phone or have someone to answer that phone. Then you either have to go out and get that property under contract after a walkthrough, or get a contract and then go do your walkthrough. It doesn’t really matter which route you take, but either way… you got to do one of those two things. Once you have that property under contract you either need to close it, or start marketing it immediately. Then once you find a buyer then you need to figure out how to get the buyer in, and or answer those calls, respond to those calls. Once you get that buyer to agree to buy that property, then there is another simple piece of paperwork that goes into place. Then you have a closing coordinator that… you put in place to then co-ordinate the closing so you get paid. That is the entire business that I just laid out. It really is that simple. Our goal is to make it also easy for people. That’s why we put together that free course. So to add to answer your question; what was it like when we first started? We were doing all the things we just stated except we didn’t have someone in charge or buying, we didn’t have somebody that was in charge of selling, we didn’t have a closing coordinator like we do now. So we were doing all this stuff ourselves which is fine to do it when you are starting out. But build a team, find your power partners… to where you can expand your business and do more deals. So in the beginning yeah, we started out post cards, bandit signs, letters. Phone starts ringing, you’re setting up appointments… and you are going out getting properties under contract. You go home and you are putting them on your website, you are e-mailing, you are texting, you are posting on Craigslist, Facebook so on and so forth, getting that phone to ring. Boom the phone is ringing. You can tell I am doing something right over here. Got to put that on mute. So once that phone starts ringing… then you figure out a way to sell that property to the investor that is calling, figure out… how to get them in there if there is a lockbox on it and so on and so forth. Then you are coordinating your own closings… and then you get paid. It is very simple when you say it like that, and it is very easy to do that first deal in my opinion. But the problem is; without having a team… once you get to 60-80 maybe 100 people in your follow up system, then half of your day is consumed with following up with individuals, versus being able to answer those phones, run those appointments, do the marketing on both sides to buyers and sellers. So what we have done is we have dedicated two people full time… just to do nothing but follow up with individuals. Our follow-up system has almost 2000 people in it that get a call, a text or an e-mail… weekly, bi-weekly or monthly at this point. You have probably heard this before… but the money is in the follow-up. A lot of our leads take four to six months to actually… convert because the motivation either isn’t there today, or… for whatever reason they are just not ready to pull the trigger. What we really encourage and teach our students as well as in our courses and our free course… is that the money is in the follow up. Business is simple… but it is not necessarily easy once you have a massive list of people to follow up with on a monthly basis. So by creating that team… you don’t have to worry about marketing to sellers, running appointments, go out and getting properties under contract. Marketing those properties to the buyers, and doing all those things on your own on top of… calling 2000 people on a weekly basis to say, hey this is Dave House Sold Easy properties. I haven’t forgotten about you, do you still have that house on ABC Street? Great, I still want to buy it. Are you wanting to sell it this week? Yes? Great. No? No problem, I will call you next week. The follow up is so key in this business. The money is in the follow up. Like I said a minute ago; the average deal that we do is four to six months… from the day they initially called us. It is not because we are not good at closing, it is because we need to be able to get that property at a good enough price to be able to wholesale it, or be able to close on it with little to no risk… of knowing we are going be able to profit when we sell it. Often times whenever we get them on the phone initially, and or go out and run that appointment… initially that motivation isn’t there yet. They are willing to take an offer that is maybe a little but under market, but they are not willing to sell it at a 30 or 40% discount. Does that make sense guys?
Brett: Hey, I think we got cut off there, Dave.
David: I can hear you guys, I’m back, how much time did we lose there?
Brett: Just like 30 seconds. It is kind of cutting in and out. Maybe… can you guys cut your video? That might help the internet better or something. We are going to edit this anyway so… you can start back about 30 seconds ago.
David: Alright can you see it? Is it any better now guys?
Jaren: Yeah that’s a lot better.
David: Awesome. Okay cool, where do you want me to start back with anything or…?
Brett: Like… it just cut off 20/30 seconds ago so. I think… obviously we were talking about the follow up and the key to that, and just being able… to doing that. I am not sure exactly…
David: Here, I will just wrap it up. The main point of building that power team is because it gets very difficult on your own. Once you start scaling the business. Really it is inevitable to scale the business because your follow up system is only going to get bigger and bigger. So as you start… keep it simple obviously. It is easy when you start because you don’t have that huge system. So you are doing all these things on your own… but once you get to the point where you have a couple of hundred people on that follow up system; the business is still simple but not necessarily easy. 80% of your time is focused on following up with individuals. There is very little time left to go and do all the other things that are needed to run a successful and profitable wholesaling business. Like all the appointments, answering the calls and marketing, closing coordination and so on and so forth. So… what we recommend is… as your company gets a little bit older, as it starts to grow a little bit; grow your team with it. That way you can keep it easy. It is always going to be simple, but there are only so many hours in the day. As we stated, we have 2000 people on our follow up system. There is no way that one person alone could call that many people in a week’s time. Let alone two people, let along two people do that and run the entire business. So you have to put the right person on the right seat. Literally dedicate somebody full time to doing nothing but follow up and nothing but acquisition, nothing but sales.
Mike: Yeah, I would interject that… it kind of depends on where you are trying to grow you business, right? We are trying to grow a pretty sizeable business, we are trying to expand. Whereas if you are just looking to do a couple of wholesales month… there is nothing wrong with that.
David: No not at all, what’s what I’m saying, not at all. But after your follow up system becomes a large enough… the business is still going to be simple like I stated, but it is going to go from easy to no longer being easy because… you have so many hats that you are wearing. In the beginning there is nothing wrong with that, that’s how we all started obviously. Again, I push people towards the free wholesale course to see how simple and easy this business can be.
Brett: Awesome, yeah guys…
Jaren: I just wanted to do a plug guys. We are going to link you the course in the show notes so you guys can check that out at www.simplewholesaling.com/episode57. Yeah… thank you guys so much. You guys really hit it… hit the nail on the head as they say. One of the other questions that I had… kind of just going into your specific strategy; are you guys assigning contract primarily, or do you actually close and sell?
David: That’s a great question. We do assign contracts but I wouldn’t say primarily. The reason is because we have kind of gotten away from any deal where… we are only making $2,3,4000 on it. Obviously we still do those deals, but that is not the mission, that is not the goal when we go into buying the property, buying that deal. We typically do… I would say maybe 80-85% double close at this point. 15-20% assignment. The reason is because our average wholesale is anywhere from between 8-10 grand at this point. It just makes sense to do the double close, we don’t want to upset the investors that are buying it from us, not is it really their business what money we are making. But additionally it helps the top line revenue… whenever we are doing double closes, because we can claim that revenue that runs through the business, which helps with our lending partnerships.
Brett: Awesome, this sounds good. What are some unique things that you guys are doing in your business? Are you guys just doing the same types of marketing strategies that are very, very typical in wholesaling? You know, direct mail, other strategies. But are you guys doing anything that can maybe help our audience… in their wholesaling business that is a little bit different, that is a little bit unique that sets you guys apart from the rest… of the crowd? I know here in Indianapolis there are a lot of wholesalers, it is has become very competitive. We have to try and set ourselves apart from that. I am sure it is the same way in St Louis as well. So what sets you guys apart in your market?
Mike: Yeah I think the main thing… as far as like any tricks or… marketing gimmicks, we don’t do anything like that. I think the thing we use to set ourselves apart is… kind of what David said and touched on earlier which is our follow up system. That is something that most people just don’t do. We continue to follow up with people. Again, that’s how we get… I say 70% of our deals is on follow up. At least 70%.
David: Absolutely Mike. I want to add one thing to that. We also… we are prepared and that’s very important. So when we go on an appointment… I will give you perfect example. So we went on an appointment… I guess it was Friday of last week. We met a gentleman; he was an out of State landlord. He came in for Friday/Saturday to show the property. There were wholesalers leaving when we arrived. There were wholesalers arriving as we were leaving. So we were not the only people looking at the property. There was probably 15-20 individuals that walked through it in the two hour window from 10-12 that he… had allotted for. We showed up right around 11, so we were right in the middle of that window. Anyway, to make a long story short; we were prepared. We came with comps in hand, we had our credibility packet and we brought a contract. So we walked the property. We knew there was going to be competition on it, based on the fact there were people leaving and arriving… and we said hey, let’s come in a little aggressive on this offer. But we still need to make this make sense. So we handed him a written offer… zero contingencies, as is, with our proof of funds in hand, right then and there on the property. So he knew where we were at. Most other wholesalers are going to go out there, they are going to take pictures, they are going to go back to the office, they are going to assess the deal. They are going to think about it, talk it over with their partners if they have partners, and so on and so forth. They may e-mail or call over an offer that day or even the following day. He was going to decide on this particular property… that Sunday, so two days later. So we called him after the open house was done… literally 12.30, 1pm. We said, hey did you get any offers? How does ours stand up? He said, yeah everybody we talked to… said they were going to send over an offer and… yours was the only offer that was in hand… written and he had received. We said, okay great well… here is the deal; we are not trying to compete with ourselves… how does our offer look? What is it going to take to get this signed on your end right now? After a little bit of negotiation we got him to sign that day. All the other competitors in that space had not even sent their offer to him yet. So our offer may not have even been the best offer as far as price. But the terms we provided him were all he was looking for.
Mike: That and addition… what is our secret sauce then… Dave touched on the credibility packet. I guess I kind of forget about it because it is something we use on a lot of… deals we are competitive. So credibility packet, pretty simple… I am sure you guys have probably mentioned this to your listeners or maybe you haven’t. Basically you have a folder put together and… it has our company logo on, we have a brochure with some information about the company. As well as what David said, it comes with comps. So we run the comps before we go out there. We have a contract, an example of a special sales contract. That is a sales contract that they use her as a certified form here in St Louis. We have… proof of funds in there, we put… that is pretty much it. But again, just come with something like that and your business card obviously. Come with that and it makes you stand out from the guy that shows up in a t-shirt and pair of shorts that says, hey I will call you. You have to create some sort of badge and I guess that’s….
David: It’s not really any trick or anything like a hack or anything like that. A lot of people are always looking for that short cut. We don’t really have any short cuts. We still to mail, postcards, bandit signs. We do some online advertising. We have magnets on our cars. We don’t have any tricks, but what we do is we convey that sense of… professionalism. So when we show up and say we are going to buy we buy. We don’t have any negative reviews online because… we strive and make sure that… everyone is receiving that win, win. We want everyone to win even if they are… walking away from a property. We want to let them know we are at least helping save credit or whatever the case might be. So a credibility packet is really important. But also having the ability to move fast. Go out to a property and say, hey listen I have already done all my research. I don’t need to go back to the office and spend two or three hours figuring things out to make my offer. Here is what I can pay, here is my contract if you are ready to be done with this problem and walk away. All I need is a signature and I will handle all the rest.
Brett: That’s awesome. That’s actually really cool. It does sound very eas and very simple to have a credability packet. But… I gurantee you that 99% of other wholesalers out there dont have that. So is that something that is in your course that you guys provide an example of? How can somebody get a hold of that credability packet… just to have a referance/
David: It is actually not in the course at this point in time… probably something we should.. not a bad idea. But really the credability packet isn’t anything that is… over the top of crazy. There is a contract in there, proof of funds int here. Then there is a small little tri fold that tells that individual who we are. Here is the name of the company, here is what we do, we buy as is, we pay cash, we close quick. Then there is a little bit more information in there, but it’s nothing over the top.
Mike: What I would say for somebody starting, again you are trying to target the noobie guy. Don’t over think a credibility packet. If you are to try and do this to stand out; great idea. Here is what I would do, I would go to Vista Print, I would print out some folders with your logo on it. Then just go with comps and a contract. You don’t need to worry about your last 100 deals. If you search for it you will see all sorts of different things on what a credibility packet is… but just show up with a contract in a folder that has your name on it, and comps.
Mike: That is really all you need to get started. You hand that folder to someone; they are going to keep that as opposed to a business card which they might lose.
David: It’s big, it’s shiny. They are receiving to show the house… to other individuals like you just stated are not providing them with.
Mike: Even a good majority of agents probably don’t show up with a night packet for them.
David: Another thing too is… if they are not willing to accept that contract right there… it’s a conversation piece in your follow up system. If you call them three or four weeks later; hey do you still have that folder that I left with you? That contract that is in there is still valid. If we need to modify it, let’s just modify it. I need a signature and send it over. I mentioned line of credit… or proof of funds by having a line of credit. If you don’t have that, then don’t worry about it. Keep it simple; don’t worry about putting that in the folder like Mike said. All you need to start is your contract and comps. By having it put together in a folder… and if you can throw your logo on the front of it; even better. But don’t over think it. As your company builds and have more tools to put in that belt, aka folder. Like proof of funds or a tri fold about who your company is. Add those down the road, but don’t worry about it today, don’t stumble on this. Just put something together to show them.
Mike: Exactly so on your next appointment; make sure you print a contract, bring it with you and print some comps and bring them with you.
Mike: You are going to be light years ahead of them.
Jaren: I think guys… the biggest take away from this thing is just take action, just do something. Even if it is simple, it doesn’t have to be complicated. Just get busy. So many people get so caught up with this paralysis of analysis thing where they are like… oh you know… because they don’t have proof of funds, they don’t have this, they don’t have that. The always make excuses. But here is the thing you need to do in order to get started; go get a deal at all costs. From there… figure out what you need to do next. Go find a buyer or figure out transactions, or figure out contracts. Just start taking action.
David: Yeah so true guys, it is so true, take action that’s the main thing.
Jaren: That’s awesome.
Brett: I am definitely taking this on the credibility packet. What we actually started doing some of that, but we took an iPad with us which is really, really cool. But actually we kind of scrapped it because… people would not pay attention to the iPad slides; you put a power point presentation on an iPad. So it was pretty good, techky. But a lot of these people… motivated sellers that are meeting; they are not techky, they are old school and I think we are going to go back to what you guys are doing and getting a packet together, printing it out, getting a folder and that is a lot simpler so thanks for sharing.
David: Yeah, and you could always e-mail those slides. But people don’t want to get more e-mails than they are already getting. Leaving an iPad behind is going to get really expensive.
Brett: Yeah definitely. Well hey guys’ thank you for sharing. We are going to go to the next section of the show that Jaren and I like to call ‘Going deep’. On this section we are just going to ask you guys… just a couple of deeper questions about your goals and what not. So you know you guys are building this thing and sounds awesome you guys have an awesome team, what’s your end? You know is this a means to an end? You guys just going to keep building? What does it mean to you guys, why is it important? What gets you out of bed in the morning? Talk to us about that.
Mike: I mean, So I kind of started off saying that wholesaling or real estate investing is kind of my job, so to me there’s no real end game in sight, just because I consider myself a young man still, and I don’t necessarily dream of retirement the same way that I used to when I had a corporate job. So there is no real end game other than just keep building this business, keep growing this business and keep having fun with it. I enjoy what I do, and again I hopefully will continue to enjoy what I’m doing for the next 15 or 20 years. But when I get to a certain level though, or when we get to a certain level obviously I’m probably goanna want to step away, and that’s again on replacing yourself within the company. So there is a vision for that but, again I just don’t have it anytime soon.
David: Right, No I agree completely, you know definitely being able to reach more people and help them get involved in wholesaling and show them how simple and easy it can be is definitely one of our goals, and yeah just working less and continuing to make more money is also a goal that we have. You know we’re not lazy individuals, like Mike said “It’s a job to us” We work sometimes late in the evening and on the weekends, because we really enjoy real estate. You know wholesaling is not always the most fun business to be in, but getting paid no matter what you’re doing is always fun.
Mike: So there’s one, there’s a great one so one of my goals is; I always look at like the biggest check you’ve made from wholesaling, so whatever that number is, I always thinking, oh man, my next one I’m going to hit 10K higher. Like I want to get the 100k check. And then after you get that 100k check I want to hit 125. Or I want to hit 250. I mean It’s kind of like it’s almost a game so you kind of play those number games, and those are kind of the goals that I have now. One of them any way’s is a really big check.
David: And you know one of the advantages I think that we have with our company there’s 4 partners, myself and Mike and then 2 other partners Bill and Ray, is that we all own real properties. So not only are we wholesaling as our primary income and primary business, we also are investors. So I think we have a little bit of a leg up and advantage in the game because we’re not going out trying to get a properly under contract because we think that investors would want it, you know we ARE investors so we know right then and there “Hey is this something that I’d want to keep in my own portfolio or not?” Well typically that all comes just down to price. So if the house sucks and it needs 30, 40, 50 grand worth of work, I may not be interested in that properly unless I can get it at a steal, so it helps our business as well knowing that… we all own rental properties and we all have done some rehabs in the past to where not only A; does it help us acquire the properties at a really, really good price, but B; if it doesn’t make sense and we wouldn’t keep or hold out property in our own portfolio, then typically we’re not offering to purchase it. When we say we buy, we buy. That’s one thing that makes us a little bit different than the competition is we don’t go in to any deal or any contract… with the intentions of just trying to sell it and then backing out. You know if we’re going to get that property under contract, 9 times out of 10 we’re going to close on it regardless if we sold it or not prior to that closing date, because we know we got it at such a good deal that we can sell it later for a profit and/or break even. So it doesn’t happen when we back out of course, because that’s the purpose of inspection periods. Do your due diligence. But like I said 9 times out of 10 if we say “Hey we’ll give you 80 grand for this property”, and we aren’t able to sell it for 85, 90, 95 in that 10, 15, 20 day period, we just close on it. Because we know that property is worth 110, 120, and it’s still worth owning.
Jaren: That’s awesome. So I’m just curious in this section, if you both were billionaires and you had all the money in the world?
David: How do you know we’re not?
Jaren: We very well maybe. Would you guys continue doing this business? Or what else would you do? If you had all the money in the world, you never had to worry about money again what would you do with your time?
David: I would still want to be a part of the business and I’d still probably have an interest in the day to day operations, I probably wouldn’t work as much as I do now, but I would essentially replace myself. And the reason I’d still want to be a part of it is because I like creating that win/win. I truly like being able to help motivated sellers get out of that ugly situation or that ugly house or whatever it is, and feel happy about the fact that they created a win on their end, and then on the flip side i also like being able to tee up investors with really good deals that they can get a really good price on, as well as build my own portfolio. So would I work as much as I do now? Probably not. But I’d still be a part of the business, and I would probably want to expand it exponentially if we had that kind of resource.
Mike: I will answer it because I am slightly different form Dave in my long term though process. So let’s assume I was a billionaire, let’s assume Household Easy is already in creation, and we’re running it and it’s going well, we’re making a lot of money, I would probably expand the empire so to speak into a slightly more philanthropic side, so I’m kind of passionate about-I guess you could say I’m a hippie, I like renewable energy and I like that whole concept, so I would want to create communities for lower income people that were energy efficient or energy net zero type of properties, that would kind of be my goal.
David: You’d probably do a lot more in construction.
Mike: It would. So again, real estate development. It’d probably be- again I don’t know. I haven’t looked into it much; it’s just been my long term maybe passion project once I get to phase 2 of the working life cycle.
Brett: Well thank you guys for sharing on this section of this show again, we just like to kind of pick the brains of entrepreneurs that are really, really successful and just see why is, and what gets them out of bed in the morning and we just really appreciate you guys sharing. On this last section of this show we just like to end on a lighter note, and it’s called ‘The touch of randomness’. So we’re just going to ask a couple of questions here so I’ll kind of take the first one, if Mike you want to answer this and David you answer the next one. Mike if you could be any element on the periodic table, what would that be?
Mike: Oh jeez, High school science class, I don’t know… an element. I don’t know anything about elements anymore. My memory is like- Platinum, is that an element??
Brett: We’re successful entrepreneurs but we’re not the sharpest knives when it comes to that.
Mike: I guess hydrogen? Or Oxygen? I don’t know they’re both pretty important, Right?
Jaren: Salt’s one of them, maybe salt. Here’s the next one. So if it were humanly possible, what exercise or workout would you choose to do for 24 hours a day 7 days a week for 1 month straight?
Jaren: Ooh. I like that one. That’s a good workout right there. Rocky. I’m going to play some eye of the tiger right now.
Brett: Well thank you guys so much for joining us on this show. This wraps things up on this Simple Wholesaling podcast, but again there’s going to be links to the course and all of the items that Mike and David talked about in the show notes at simplewholesaling.com/episode57, but one final thought David and Mike, if someone wants to find more info about you and generally reach out to you and your company, where would they go?
Mike: They can check us out at discountpropertyinvestor.com, there there’s the number for us, you can call and get a hold of us. You’ve got our email addresses on there as well.
David: Discountpropertyinvestor.com and then of course freewholesalecourse.com, those are the 2 places to reach us.
Brett: Cool. So thank you guys so much, we wish you so much success with your business and your endeavors and appreciate you being on the show today guys.
David: Hey thanks for having us. That was fun.
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