Today Matt interviews Nathan Price from Spokane, Washington, an Epic Pro Academy member who has recently completed his very first real estate transaction. Nathan is kind enough to share the steps that earned him his first real estate investing paycheck. If you’re having trouble with lead generation, if you haven’t been able to find enough time for your business, and if you still haven’t closed that first transaction, then you need to check out this episode because Nathan overcame all these obstacles. Listen up and learn from his success! And also be sure to download Matt’s free real estate investing course at http://www.FreeRealEstateInvestingCourse.com.
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(Voice Over): Without further delay, your guru, sorry, your guide to a better life through real estate investing, Matt Theriault.
Matt Theriault: Hey, this is episode 49 of the Epic Real Estate Investing Podcast and this is Matt Theriault, the rat race escape artist. Changed one thing one time and you too can escape the rat race for good and that one thing is stop focusing on making money and start focusing on creating cash flow. It’s the new definition of financial freedom.
It can be yours too in just a change in your focus, just a slight shift in your focus and then the action correlate to that focus. You got to take action on your new focus but it stars with the change in focus.
Go there and download the free course, How to do deals: No money required, and I’ll show you the two easiest and fastest strategies in real estate to start making some cash so you can turn it into cash flow. That course is yours for free at FreeRealEstateInvestingCourse.com.
And by the way, I have a new coaching client who has completed his first wholesale transaction inside of 30 days using the exact process I show you in this free course. It’s all there.
You just have to follow the steps. Move at the speed of instruction and there’s really no reason why you can’t get it done today. So here we are, a little over a year and a half. This podcast has been in production and it’s been an awesome journey this far.
Right from the beginning, you know, I started to receive emails, a lot of emails. Mostly of a sceptical nature and then slowly these sceptical emails, they morphed into actual questions about real estate.
Then they got, I started to get really good questions so I could tell that you’re listening. I would say in the last six months or so, I’ve been starting to receive emails of success stories. Success stories from real estate investors that are giving this show a great deal of credit for their success.
For example, you know last week I played you the audio of the video that Randall sent in about his first wholesale deal of which put $12,000 in his pocket.
I’ve got to say from where I’m sitting, it’s extremely rewarding to receive that type of correspondence and they’re coming in much, much more frequently. And then, very recently I receive an email of which the subject line read, “I DID IT!”.
All in capital letters, big exclamation point, I did it. So of course I had to say, “What did you do?” So I opened up the email and it came from Epic Pro Academy member Nathan Price out of Washington.
Nathan is not a coaching client of mine however he did sign up for email coaching and that’s an upgrade that you can select inside of the Epic Pro Academy. You can upgrade your membership and get email coaching.
And so Nathan and I, we exchanged maybe a dozen or so emails in his first few months as an Academy member and then I hadn’t heard from him in a while. I didn’t know what happened. I stopped getting emails until just a couple of weeks ago and I’ll read this email to you.
“Hi Matt, I just wanted to let you know that I just completed my first of soon to be many wholesale transactions. Thanks to the principles I learned from you for negotiating and sending out yellow letters.
I was able to make a $5,000 profit. This immediately made it real to me. My wife and my family and my friends, I instantly gave credibility with them.
I had sent this particular seller two yellow letters over the span of a couple of months, late in the summer and it wasn’t until mid-December that I received a call from her and went over to her house and negotiated and came out with a signed contract.
After learning that the rehab cost was going to be more than I originally thought, I went back and renegotiate with the seller and got a $4,000.00 reduction in price. Man, I tell you that call was sure nerve-wrecking.
But nonetheless, I overcame my fear, dialled her number and got a reduction of price. The house was worth approximately $120,000. I got it under contract for $68,000. And it needed approximately $15,000 to $20,000 in repairs.
I then sent it over to one of my fix and flipper friends and he gobbled it right up. So Matt, thank you, thank you, thank you. You have made my dreams start to become a reality based off the valuable information that I learned from both your podcast and your academy. Thanks again and I look forward to keeping you up to date of the future success of Right Price Properties LLC. God Bless, Nathan Price.”
So thank you Nathan, thank you very much and God bless you too and congrats on closing your first deal. Congratulations, thank you for sharing that with me.
Now I’ve got something very special for you today. I’ve actually got Nathan on the line. Nathan and I have never talked before. We never spoken before, I mean just a dozen emails or so over three or four months ago.
So it’s been even a while since we’ve exchanged emails and I asked him to come on the show and share his experience on how he did it because first, so you can hear how a 29-year old, he’s 29 years old, full time nurse and he works graveyard. How someone like that is able to conduct a wholesaling business in their spare time?
And second, I think he’s a perfect example of someone that began not really knowing a whole lot about real estate investing and yet all the same concerns that you have, all the same doubts and the same fears and, I mean, all of the same stuff that comes along with being a new investor. For those two reasons, I think there’ll be a lot here inside this conversation for you to take into your own investing.
Or, you know, maybe not, who knows. I don’t really know where this is going to go actually. So let’s just stop the rambling and let’s get into it. Without further ado, Nathan. Thanks for holding and thank you for joining here on the Epic Real Estate Investing Podcast.
Nathan Price: Thank you Matt, it’s a pleasure to be here.
Matt: Yeah, I’m really glad that you took time out of your schedule to make it here and you know I just read your email that you sent me, I read it on the air, and we’re going to get to that in a minute. But can you just kind of tell me and everyone listening about yourself and your background and what you do for a living?
Nathan: Yeah, yeah, you bet. I live in Spokane, Washington. I just recently graduated from Nursing School from Washington State University over here in Spokane. I got started with job in August and then I’m working on a cardiac unit since. Now before nursing, my wife saw some nurses why I decided to go into nursing, enter the nursing field.
Before nursing, I was an insurance agent and they actually own their own little franchising. It was a little smoothie stand. And I just, I guess I always had a desire to work for myself and to become an entrepreneur and this really stems from Robert Kiyosaki’s Rich Dad, Poor Dad.
Just ever since then, I’ve always wanted to get involved in real estate. So finally we were able to make the plunge by renting out our primary residence that we had and we kind of, I guess it wasn’t so much of a plunge that we had.
It was just we moved in with our in-laws, my in-laws and we’re so good right now. I ended up, we decided to rent that house out and that was going really good. We had tenants in there and we decided to get another rental house.
So we contacted a broker here in Spokane who feels a lot less realtor and ended up picking up a house just like conventional means. So 40% down, got a mortgage on a short term, picked up that house for $134,000.00 and it’s worth about $190,000.00 right now.
So we have lease option tenants in there and we’re renting out a room. We’re making both at $400 a month in cash flow and that really got that our juices going and we just really, really love the potential, the built in equity that we have there and the cash flow that was coming month after month. We wanted to deal more than that. That kind of brings me up to where I’m at right now.
We still have the rentals going good. Now back to our business, nothing happened with that. We worked that for about a year and a half. It was so much hard work and it just didn’t work out, ended up selling it and at a loss.
We’re still working on paying that off right now. But you know I was able to stumble across your podcast. As mid-last year, I think June, July or so. I just really became enthralled with what you were saying. Later on, I joined the academy and fix myself, closed my first deal or my first investment deal.
Matt: Awesome, awesome. Yeah, was really excited to read that email because I know you’re not exactly a coaching client but you’re part of the email coaching.
Nathan: Yeah, that’s right.
Matt: Yes, so we’ve been exchanging emails back and forth for a little while and it was nice to see an email that actually came through.
You got a deal, you want to ask a question, you’re telling me all about what you are able to accomplish. That was very cool. So as far as being, are you still working full time as a nurse?
Nathan: Yeah, yeah I am. I have a rough schedule that I am on right now but I’m working graveyard. I actually worked last night. I’ve had absolutely no sleep today.
I was just anticipating this call and returning calls. I’ve been getting off of my yellow letters that I’ve been sending out and returning bandit sign calls.
Nathan: Yeah, I’m working pretty much full time, doing my nursing gig.
Matt: Okay, good. So you’re working graveyard. I actually just had somebody email me a question about them working graveyard as well if they would be able to actually do this. So I didn’t know you worked graveyard shift. So I guess you’re shining example that it is possible.
Nathan: It worked.
Matt: Yeah, absolutely. So after six months and holding down a full time job and working graveyard, what is your typical schedule look like? How do you fit your real estate investing into your schedule?
Nathan: What I’ve been doing recently, I have a really funky schedule. I mean I work graveyard so I have six days on. During those six days, I don’t get a lot done. Now first and foremost, I’m able to look in our shift.
I still have, basically I wake up at 4:30 and I go to work at 10:30 at night. So I have a chunk of time right there that I can dedicate but I have a wife, almost 3-year old daughter and a son that’s due in April, April 17th.
Nathan: I definitely want to, I’m a family man and I definitely want to spend time with the family. So I try to sort of limit my time that I’m on the phone on my work day. So, you know, I work from like 4:30 to 6. 6:30 is when I like to be making calls.
When I’m, when I have my days off like today and the next three days, I like to go gangbusters. I just, last couple of weeks I’ve been sending out a 100, 200 yellow letters a week.
My phone’s been ringing off the hook and, you know I just have been working through those calls. I got a five o’clock today. I have a meeting with a seller and they’ll see something’s going to come about.
And then at six o’clock, I actually have a guy that responded to one of my Craigslist ads, just saying that he used to do those things. He loves it. He has money, so if I needed money then I can talk to him about that. I’ll go meet with him and I have potential money partner.
Matt: That’s awesome. That’s awesome.
Matt: So in this phone call, you’ve mentioned, I heard you mentioned bandit signs and you’ve mentioned yellow letters and now you just mentioned Craigslist.
Matt: So what else are you doing to generate leads?
Nathan: You know Matt that basically is it right now. I kind of have a three different ads going on Craigslist. I have ads advertising for motivated sellers and that all that he done to like a squeeze page. Well they can always give my cell phone a call.
Then I have ads for buyers and then ads for pretty much birddogs. I’m saying something to effect of “I’m a real estate investor and I’m always looking for houses to buy so if you know of anything.” I ended up posting a house for $500.
I had a lot of success with that whether it’s potential birddogs looking for deals. I actually just really recently. Last couple of weeks, I met a seller by the name of Chris and now Chris is going to be listening to this site. I just want to give him a shout out.
Basically, he’s been working with me, he’s been writing my yellow letters for me. We’ve gone and hung bandit signs and I told him that any deal that I have come through directly related to bandit signs or yellow letters, I’ll give him $500.
In the meantime, I’m going to definitely pass on my knowledge to him and answer any questions that he have and kind of help him up on the path to becoming a wholesaler and just generating leads of his own in the marketplace. That’s been huge right there.
Matt: That’s awesome. So you kind of set up a, I don’t know, sort of an internship for him.
Nathan: Yeah, yeah.
Matt: That’s cool, that’s very cool.
Nathan: Yeah, it just kind of happen that way.
Matt: So he’s putting up your signs and he’s writing your yellow letters for you?
Nathan: Yeah, yeah. He’s been helping with signs and he’s written about 500, 600 yellow letters right now.
Matt: That’s awesome and you might have said this already, how did you meet Chris?
Nathan: He responded some of my ads. He said, “I like what you’re doing. I like your motto. I want to do it. So can you help me out here and I’ll help you out.”
Matt: That’s awesome. That’s awesome, what section of Craigslist do you advertise for a birddog?
Nathan: Usually in, I rotate between just the for sale buying owner for houses or just under the jobs section, under the etc. or the miscellaneous section.
Matt: Okay, got it. Cool.
Matt: I like it. So yeah, let’s get to this deal that you put together. Let’s get your email. I got it right here. I’ll pull it out real quick.
Matt: There it is, got it. So let’s see, you just completed your first whole sale transaction and you did it through negotiating and sending out the yellow letters and you put five grand in your pocket. That’s awesome.
There’s one part you put here right in the beginning says, “It immediately made it real to me, my wife and my family and friends instantly gained credibility with them.” Tell me about that.
Nathan: Well, you know being so entrepreneurial driven, I’ve tried all sorts of things. I tried several multi-level marketing and networking marketing companies. I know you’ve done those before Matt.
You know, just to me it hasn’t done any good. I mean, I’m always talking to people and talking up this business and nothing has happened.
I gave him coming back to my little smoothie franchise that I did, people saw that I took action but really nothing came of that. I essentially quit doing that.
You know, speaking of loss credibility and when I told people that I was been into real estate and becoming a real estate investor and wholesale houses and be making a fortune doing that.
I’m sure I have some people roll their eyes and just kind of chuckle at me but as soon as I got my first deal under my belt and $5,000, that would take me several months of work as a nurse to generate that kind of money.
I did it in a matter of, I mean it took me all of, I don’t know, three to five hours to deal and then I have been telling everyone that I can possibly can about it. In just doing that, that one deal and telling them how it happen and what I did to make it happen, I was able to essentially redeem myself and a lot of us.
Matt: So how did you think that will affect your business in the future, regaining credibility with your network and your circle of family and friends?
Nathan: Well, you know, it’s just the fact that there’s saying that I’m putting time and effort into doing that and I’ve already had received fruits of my labour and just putting more time and effort in it will yield yet more fruit.
Just when I get to that point where I’m in doubt and they’re going to be a coaching fan, family members other acquaintances about potential partnering on deals or being a private money investor.
I mean, I would be able to have essentially a main portfolio that I’ve showed them. I negotiated this for this amount. You know if I didn’t wholesale, this is the what that profit could have been if I was going to fix and flip it or you know, keep it and wait it out for the long term.
So I think just you know, just doing this what I’m doing right now and having the success that I already had and having success that I’m going to have is infinite, even real for them too.
Matt: Right, right, that’s awesome. It will help significantly whether you’ll be cognisant of it or not but just having the support of the people around you is going to definitely help you get that second deal done.
I promise you that. You’ll notice it. Okay, so you got this deal off of a yellow letter and you sent this particular seller, you sent him the yellow letter twice. What list did you pull this person off of?
Nathan: Basically, I think I had, I went from my honest specific one. I went to my title company and I just gave them my criteria which was I wanted houses because the median house price, here in Spokane, was about $135,000 to $145,000, I think.
Maybe a little less but I said I wanted anything from $0 to $200,000.00 and non-owner occupied. I think about two bed, two beds and one baths and the, I think the mortgage origination day had to be before 2002, it was something similar to that, just to ensure that there’s equity in the house.
Matt: Got it.
Nathan: So I’ve been getting a lot of calls. They didn’t have any equity or they were over luggage in their house. So that’s kind of how I got that specific list.
Matt: Perfect. So I’ve had a lot of people ask me how do they find a title rep, how do they find a title company. How did you find yours?
Nathan: Well, I just, to get that specific list, I actually went to Stewart Title, you know, I believe they’re all over the nation, aren’t they?
Matt: I think they are actually.
Nathan: Yeah. Stewart Title from my understanding is pretty investor friendly. So you talking to an escrow, a certain title officer that has plenty of experience just in the filed itself and working with investors.
Now I actually, there’s a really big real estate attorney that big into the investment group in Spokane here. So I spoke with him, he was actually my attorney escrow officer in the situation here.
Matt: Got it, got it. Cool and then you just gave him your criteria, they spit out a list and you started sending yellow letters to it.
Nathan: Yeah, that’s right.
Matt: Perfect. So you received a call, they called you off of the yellow letter and you went over to the house and then you did some negotiating and came out with the signed contract.
Nathan: Yeah, yeah. Even before that, I looked up the Campton area and I told her I lost ballpark of where I would be at. It was roughly half than a little or a little more than half of the ARV for that house in the area. To my surprise, she said, “I think that could work.” I set up the time to go over there as soon as I could.
Matt: Great, what was…
Nathan: She was motivated.
Matt: That’s awesome. What was happening in her situation that have her agreed to almost half the price after repair value?
Nathan: Yeah, good question. She owns the house. Her mom lived in the house and she actually grew up in the house. It was kind of weird.
I don’t know exactly what happened but I think maybe her mom owned it originally and she ended up buying it from her mom but her mom was still living there.
Her mom had recently passed away and just given the circumstance, she just wanted to get rid of that remembrance of her life and just kind of wanted to move on and just wanted to sell.
Matt: Got it. You know I asked that question I frequently from brand new investors, I frequently get an email question where or even in my workshops, it’s the questions of why would anyone sell you their house for half price when they could just go out and hire a realtor and get full price for it?
Matt: The answer is just because life happens. You know life happens to people. They all sell for different reasons. That’s why I asked you that question specifically. It’s just because. She had other reasons that were more important than getting full price for her house.
Nathan: That’s right.
Matt: It’s awesome.
Nathan: Yup. She, you know, funny you’d mentioned because she actually did talked to a real estate agent and get this, the real estate agent said that I think I could throw your house in the current condition for a $110,000.
I could, you know, sell it within X number of months. She still wanted to sell to me just because I was able to close fast. I was able to offer her potentially no hassles, no real estate commission.
I stay in consonant which is she didn’t have to worry about all these people treading into her house. She didn’t have to worry about making arrangements with her house or anything like that.
So yeah, you’re absolutely right. People have their different reasons for wanting to sell and you should never as an individual, you should never put in your mind that why would they want to sell it for me that they can sell it to a realtor for full price.
Nathan: You don’t know what their situation is.
Matt: Right. Exactly. You know so many people and they go, they’re almost subconsciously negotiating on the seller’s behalf against themselves.
Nathan: Yeah. Yeah. Yeah.
Matt: That’s awesome. There are things out there that are more important to people than money so.
Matt: If you provide a service and it will lead them out of a headache then they will gladly exchange equity for that all the time. There’s one of my instructors a while back, he said, people will exchange peace of mind for equity all day long.
Nathan: That’s true.
Matt: My point. Absolutely. That’s awesome. So you got the property under contract. Let me ask you, did you take the contract in with you at that time? did you had it pre-written? Or how did you do the paperwork?
Nathan: I did. I brought in with me some, you know the contract. My, I think, maximum offer was I think was $70,000 but you know she was giving me the facts like her mom died. I felt bad for it so I said okay.
Now I think we can do $72,000 then she even tried to top it even more to $75,000 and said, you know, $72,000 is you know I don’t even know I’m going to need for that one. Let’s just do $72,000 right now.
I had an idea that it was going to be, the actual incurred value was $128,000. I figured would recur around $10,000 and I did have my contract. I’m putting my name in there. I explained that the contract.
I’m putting my name in there but there’s also the clause and/or sign because I don’t know what’s going to happen. I don’t know if I may have to assign this to my business partner to sign in the deal.
I don’t know if I need to be putting up myself. I just have to have that option available to me. She was completely fine with it. We went through the other exclusions that I have: the subject to the appraisals, subject to favorable inspection.
And you know baiscally I have on my clauses where there is at the top. We just, we didn’t actually sign right there. I signed my name. I gave her the contract and I put expiration date like 2 days. She went home and talked about it with her husband. She sent it the next day.
Nathan: And yeah. It took me, I think, 2 to 3 days before I got the contract. It was really the worst 2 to 3 nights of sleep I ever had.
Matt: (laughs) But it was awesome. You did exactly what I tell people to do is what if they’re in for the deal, if they say no, it doesn’t matter. Always leave the paperwork behind. That’s awesome. Cool, you’re making me look like I know what I’m doing, Nathan. Thank you. (laughs)
Nathan: (laughs) You know what you’re doing Matt.
Matt: Thanks, bud. So okay, you got into contract and then you did your due-diligence, you had an inspection and I’m assuming that you had a contractor come in and gave you an estimate on what would it take to fix the property up. What happened there?
Nathan: Well Matt, first of all the ARV, I was spot on. $120,000 would be the max price. I was like okay, good. To get there, I have about I think, I had about $7,000 to $10,000 of profit.
I was thinking that everything’s going to work out good and I was going to get a fat pay check at the end. The contract came through and he said, yeah, I’m thinking that the repairs are going to be around $20,000.00.
I felt crap. It’s going to eat a lot of my profit. So I took that and took that information and I had to call the seller back and renegotiate. That was one of the scariest things in my life.
So I was hoping to renegotiate down to, I really wanted to keep that $10,000 or so of profit. I wanted to renegotiate down to $60,000, $63,000, $62,000, somewhere around there.
I ended up going at $68,000 and that worked out good. Eventually, that would have left me $5,000 profit which is what I ended up getting.
Matt: That’s very cool. You had to call her back and ask for a price reduction?
Nathan: That’s right.
Matt: How did that conversation go?
Nathan: Not really thought I thought it would go. Still nervous as heck and I think it showed through a little bit but I was able to justify my reasoning and that made sense to her and she just said, okay well, I can’t go anywhere than $68,000.00. I said, okay.
Then and there I ended up emailing out an amended contract to her and she found it and returned it and I put it to my attorney and holding up escrow. Actually, escrow’s already opened up but I just had to get the amended document over there and it went from $72,000.00 to $68,000.00
Matt: So that one phone call that you’re afraid to make wasn’t that big of a deal and it actually made you $4,000.00.
Nathan: Yeah, yeah it did. (laughs)
Matt: That’s awesome. (laughs)
Nathan: Yeah, the way you look at it.
Matt: All you did was ask for it.
Matt: That’s great.
Nathan: Yeah, that’s right.
Matt: That’s fantastic. So the house after repair value was worth $128,000 and you got it under contract for $68,00. You needed about $15,000 to $20,000 for repairs and then you sent it, you had to wholesale this property now. You didn’t close it yourself, who did you send it to?
Nathan: I, okay, so backing up to when I am still currently advertising on Craigslist but one of my very first calls that I got was from a guy named Jake who is a big fix and flipper here in Spokane and I know he’s also going to be listening to his eventually.
So I just want to say Jake, thank you for everything you’ve done. We become friends over the last several months and I actually a part of a mastermind group together along with several other guys and we just, I know I’m getting off topic a little bit here.
Matt: It’s alright.
Nathan: But we’re, you know every week we talk about just what’s going on in our lives and these are different rocks, are different strengths that we had throughout the week, different win and it’s great session for both setting.
It just brings out so much power throughout my week. Jake has been very instrumental in where I gotten right now. He’s bent over backwards in helping me and anyways, he is a young guy like me.
He’s 28, I’m 29 and he had a lot of success in what he’s been doing. Yeah, just because he essentially helped me out so much, I gave him first dibs on this house and he came over and looked at it and liked it. He ended up under a contract for $73,000.00.
Matt: Awesome, awesome. So just from your normal marketing efforts, putting up signs and yellow letters and putting up your Craigslist ads. I mean, you found yourself an intern in Chris, a birddog that’s helping you out.
He’s doing your signs now and he’s doing your yellow letters. And then you found a great business partner, a member of your mastermind group in Jake. You just kind of building your team because you’re active and you’re out there in the market, right?
Nathan: Yeah, yeah. It’s, you know, it’s so easy. You just send out, you just do the little things day after day and it starts compounding. It’s really cool to see. I’ve gotten so many calls just the last week of the different investors.
Another guy that I got off of a yellow letter, he was not interested in selling his house. I should say I’m not interested in buying the house that he wants, the price that he wants to sell for.
But this guy has over a hundred rentals in Spokane here and you know, we have plans to do lunch sometimes. So it’s just been able to talk to all these people and either get them on my team or just kind of pick their brains through lunch or something. It’s just been awesome.
Matt: Right, right. That’s awesome. I love it. So you wholesale it to Jake? Did Jake completed his deal yet?
Nathan: Yeah, he closed on it. Last I heard it’s almost completed. I’m really interested to hear the total rehab cost and what he ended up selling it for.
Matt: That’s very cool. Cool, that’s a very happy ending to your very first deal. I bet you’re very happy that you got that out of the way.
Nathan: Yeah, yeah I am.
Matt: That’s cool. Now that you’re looking back on it Nathan, was it really that big of a deal? Like all these fears that you had and you look back on, like do you kind of wonder what were you afraid of in the first place?
Nathan: No, no but you know, it’s such an important process to go through, that very first deal because you have; during the whole process, you have so many doubts.
You just kind of work and you just work for this person but isn’t really going to work for me and one fifth actually does happen for you and it solidifies through your mind that yeah, this is real.
This action works and I just think that due to those tasks over the day, send out letters, return calls in a timely manner and it will work. There’s really nothing to be afraid about.
Matt: Right, yeah that’s exactly what I was trying to get at was just, you know, you look back at all your doubts and you look at your fears and once you get all the way through the process you just kind like, “Wow! That worked. I did it.”
Matt: (laughs) That’s very cool.
Nathan: It’s amazing.
Matt: I got to give you some really good news Nathan. The second one gets even easier and the third one gets easier and the fourth one gets easier.
To the point you just get better and better at this as you go along and you start doing more deals and you got to start looking back at and you’re going to learn something with every single transaction.
Everything single transaction there’s a lesson to be learned. To this day, I learn something in every single deal that serves me in the future.
You’ll start looking back on deals that got away and deals you didn’t close if you only had that information that you have now back then, that would have, that deal would have close.
What happens there is you got these yellow letters going out and getting your calls and maybe you’re just getting one deal out of 50 calls that you get but once you start getting better.
All of a sudden you’re getting one out of 40 and then you’re getting one out of 30 and then you’re pretty much, you know you’re closing on every single person.
You’ll be able to detect right away whether this person is motivated or not and you are going to close the people that you detect the motivation with and then those are the people, only people that you’re going to spend time and those are the deals that are going to close.
Pretty much it just becomes second nature but getting over that very first one is definitely the most challenging, it was certainly mine and everyone that I’ve ever worked with.
They always say the same thing. I’m so happy to hear that you made it over that hump and, you know, so what do you have in the pipeline right now? What do you got going on right now?
Nathan: Well, I have a, I laid off a probate listing that I’m going to talk to on what, like 2:30 right now. I have an appointment at 5 o’clock. I’m going to go see what’s going on there.
And of course I’m going to bring all of my necessary paperwork, contracts and all that stuff. You know that is just the main one right now, just lots of, lots of calls, lots of getting back to people.
There are lots of, you know what that’s all letters. The yellow letters kind of attracts interesting people. People are calling me to ask you how you got that information and that’s all they want to know. So it’s kind of frustrating because you’re excited they called and then you call them back and it’s really nothing.
That’s just what I’m walking through right now, just working the numbers and I fully realized that it’s a numbers game and I just have to do my part in getting through the numbers and eventually the statistics. The whole truth and I’ll find my next deal and hopefully close my next deal and whole sale it to the next investor.
Matt: Awesome, no doubt in my mind that you will, no doubt. So I guess, did you have any, I really appreciate you because you know, sacrificing your sleep and coming on to the show to share this experience.
Whenever I can cross path with somebody and get to communicate and interact somebody that has just done their first deal, there are so many important tidbits out there that are in there for people that are listening that haven’t done their first deal yet.
So I really appreciate that and your grace and your generosity in sharing your experience. So thank you very much for that. Any last words or advice to somebody that are having trouble getting started or anything that you want to say that you didn’t?
Nathan: Yeah, yeah, I just started about 30 pages into the book called The Slight Edge by Jeff Olson. Have you heard of that?
Matt: Yeah. I promoted inside the Academy, yeah.
Nathan: Oh okay, good. On page 29, I mean I’m sure you’ve heard this quote and many other students have. It’s by Thomas Watson, the founder of IBM. The formula for success is quite simple. Double your rate of failure and that’s exactly what you have to do.
For every unmotivated seller you talk is just one person closer to finding that next person. Just stumbling and just picking up the phone and sometimes making a fool of yourself and you’re failing but John Maxwell had a good call failing forward and I really like that.
That title sounds exactly like what we’re doing here. You’re failing forward and you’re making a fool of yourself but you’re learning and you’re refining yourself. There’s nothing greater than you can do than that, I think.
Matt: Right, right.
Nathan: Yeah, it’s all in your head, really. That’s what it boils down to, your attitude you just need to get it into the right spot and that’s the hardest thing about this business, I think. So far for me it’s just the attitude.
I mean I found lately that I’ve had a poor attitude and it just harder for me to progress forward but when I feel myself uplift, you get things and uplifting things that brings back the spark at the end and it brings back the drive to do what I know what I need to do to get the success that I want.
Matt: That’s awesome, that’s awesome. Well cool, I’m going to let you go, let you get some sleep Nathan. But keep me up to date. Let me know when the next one closes and we’ll have you back on we can talk about that one too.
Nathan: Yeah, love to do that. It’d be great.
Matt: Okay, awesome. You have an awesome day.
Nathan: Okay, thanks Matt.
Matt: Take care.
Nathan: Okay, bye bye.
Matt: So what do you think? What did you hear for yourself? How can you relate to Nathan? What did you like best about Nathan’s interview?
You know those some really great tips in there. I mean and here’s what stood out to me. One, you know Nathan is conducting multiple lead generation techniques.
He’s doing bandit signs, he’s doing direct mail with yellow letters, he’s doing Craigslist, he’s got a little bird dog system he’s working in and my favourite, his networking with the people that he’s meeting through this marketing efforts.
He’s networking with the people that he’s meeting through his marketing efforts. It’s very important you’re going to find a lot of deals that way. I believe, you know while back Allen.
Allen Randall was on the show and he expressed the exact same thing that he was doing and have great success with that. You know in the beginning, you’re going to have to do it this way.
There’s just isn’t one method that’s going to blow up your business. There’s not just one lead generation method that will support your efforts. You need to be running multiple lead generation engines.
Number two, Nathan knows his investment criteria, so important. He’s very clear on the type of property that he’s looking for and he connected with his title company and he fed his criteria into the search query and got his lists of properties.
The lists of properties meet his criteria. He knows what that investment criteria is. I don’t know if you’ve heard, he had an additional criteria where he only wanted homes of which had loans generated in 2002 or earlier. He was looking for properties that had loans generated on them that that were; excuse me, yeah, no later than 2002, so 2002 or earlier.
So why would he want that? What’s the reason that he’d want that? Most of you probably can guess. You know 2002 was just basically a few years before the market had crashed. These properties are likely to have equity in them.
They weren’t purchased at the peak of the bubble and they rode the values down. These were purchased properties before 2002 were probably purchased where values were still relatively low and so they probably still have equity in them.
That’s a great tip for you that are in markets that, you know got hit really hard and you’re finding an abundance of short sale type situations. I get a lot of those emails people saying what should I do with these short sales, they’re everywhere. It seems like that. So that would be a great tip for you as far as when you’re pulling your list of who to market to.
Also to add to Nathan’s search, add homes free and clear to your list. Try that one too. That’s what I started doing in Memphis. Free and clear meaning they don’t have mortgages on them at all. I just started doing that in Memphis and I’m going to be doing that in my other markets in Saint Louis in Columbus as well.
It’s not necessarily, that list is not necessarily going to pull you motivated sellers. Maybe but not necessarily but it will pull you sellers who are able sellers, sellers that don’t need the bank’s permission to sell.
Yeah, but who owns their properties free and clear, you may be thinking, right? Well, you’ll be surprised. It’s easy to think that you know, if you’re market is full of short sales.
Everyone’s under water, nobody owns their home free and clear. But what most people don’t know is, roughly one-third, one-third of all homes do not have any mortgage on them, one-third. They are owned free and clear and what else may be difficult to believe is that there are more homes owned free and clear than there are homes under water.
That’s what the numbers say, 2011 census. There are more homes that are owned free and clear than there are short sales than there are homes under water. So give that list a shot in your area. I have two coaching clients just this month that landed free and clear homes. They are able to arrange very favourable seller financing for their deals.
They are out there. There are a lot of them out there. You just have to market to them. Look for a, when you’re pulling your lists from your title rep; look for properties or pull records that have mortgages originated prior to 2002. That’s a good number. Look for homes owned free and clear. That’s another great list.
Number three, maybe you notice this or not, I don’t know. But Nathan is building his business with just an hour and a half a day or so. That fits right in with what I was saying in the last episode, schedule your activities.
Nathan schedules his activities and now, not only is he scheduling them, he’s delegating many of those activities. He’s consistent with his activities and it’s why he’s getting results.
And further, you know it took him six months to close a deal. It took him six months to get his first one. So it shows you that he has the other part of that equation also.
Not only is he consistent, he is also persistent. He has done the right activities and he’s done them long enough to get the result that he was looking for.
You know, everybody grows at different speeds. It took Nathan, you know six months to get his first one done. You know, some people do it and have that time. Some people need twice as long to do it. But the point is, as long as you do the right activities consistently and you keep doing them, you will get the result that you’re looking for.
This logic comes from a book that Nathan had mentioned at the end of the phone call. The Slight Edge by Jeff Olson, you’ve got to get that book. You have to get that book.
That book has built my business. I mean it is literally the secret to success. It has nothing to do with positive thinking or the law of attraction. Not that type of secret, the actual secret I’m speaking of.
It will work for real estate investing or anything else of which you aspire to greatness. Awesome, awesome book, it’s a real life changer actually. Not just a real estate investing changer, it’s a life changer.
That’s The Slight Edge by Jeff Olson. You can get that on Amazon, I seen it there. You can get anything on Amazon.
So it is available on Amazon, go over there. Anyway, those were some of my favourite take-aways from my conversation with Nathan. They are plenty more in there for sure, absolutely. But those are some of my favourites.
So a big thank you to Nathan Price of Spokane, Washington. Thanks for sacrificing what I’m sure are your very much cherished sleep to be here on the show with us today and share your story.
Awesome, very gracious of you. Thank you. Now if you happen to have a question, comment or concern that you like me to answer or to address here live on the show, please share them with me on the Epic Real Estate Investing Hotline at 1888-891-7203.
That’s 1888-891-7203. And if you enjoyed the show, it’d be great favour to me if you just stop by iTunes and left me a rating and review there also.
I love you for that because I love to know what you think of the show and I love to hear how this show has helped you. It keeps me going.
So until next time, as a very wise person once said, never give up for that is just the place in time that the tide will turn. To your success, I’m Matt Theriault, living the dream.
(Voice Over): Thank you for spending this time with Matt Theriault and the Epic Real Estate Investing Podcast. When you have a moment, stop by iTunes to leave your comments and let us know what you think of the show.
If you haven’t done so already, get started investing today by visiting FreeRealEstateInvestingCourse.com. To access Matt’s free course, How to Deals: No money required. Until next time, to your success.[End of Transcript]