Getting Started FAST! | EREI 341

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How to be sure you are achieving your potential as a real estate investor The importance of establishing minimum deal standards The one thing you must ask your seller leads Questions to ask to better understand seller motivations How to help more sellers get what they want Why you should submit and offer to every seller lead Ways to leverage distressed sellers How to create win-win situations as a real estate investor Learn from REI Ace investors Mike, Parker and Michelle of Pierson Bros Properties. How to get started fast in real estate investing Communication strategies for new investors Ways to jumpstart your real estate investing business How to go from talking to sellers to getting contracts signed Tools to better automate and scale your real estate investing business Epic Real Estate Investing podcast with Matt TheriaultReady to turbo boost your business?

Epic Real Estate Investing offers you the solution for getting started fast in real estate investing. Accelerate from talking to sellers to getting contracts signed and closing more deals with the Epic REI Ace strategies and systems. Learn how to better set expectations, negotiate with more leverage, and commit to the actions that will lead you to financial freedom in real estate investing. Foster win-win situations all the way around.

It’s time to build your confidence and get more deals done with Epic Real Estate Investing!

What You Will Learn About Getting Started Fast in Real Estate:

  • Ways to achieve your potential as a real estate investor

  • The importance of establishing minimum deal standards

  • The one thing you must ask your seller leads

  • Questions to ask to better understand seller motivations

  • How to help more sellers get what they want

  • Why you should submit and offer to every seller lead

  • Ways to leverage distressed sellers

  • Why getting started fast in real estate is not rocket science
  • How to create win-win situations as a real estate investor

  • Learn from REI Ace investors Mike, Parker and Michelle of Pierson Bros Properties.

  • Access systems to get started fast in real estate investing

  • Communication strategies for new investors

  • Ways to jumpstart your real estate investing business

  • How to go from talking to sellers to getting contracts signed

  • Tools to better automate and scale your real estate investing business

Recommended Resources:

 
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Transcript:

Speaker 1: This is Theriault Media.

Matt Theriault: Hello. Welcome to the Epic Real Estate Investing Show. Glad you found us. I did something this morning that’s been on my to-do list for probably seven years. It’s quite the accomplishment, and that was getting my Gmail inbox back to inbox zero. We accomplished that today. I was very excited about it. I actually learned a shortcut, so I kind of cheated. Maybe you know this. Maybe you don’t. If you struggle with this issue, then let me enlighten you on how I did this. First, my Gmail inbox was up to 29,000-something unread messages, so if you have ever sent me an email, and you did not get a response, that’s where it was. My apologies. It’s just it gets lost so fast, and it’s hard to detect or to go through there and sort the ones I want to read and the ones I don’t want to read. Most of them, I don’t want to read.

Anyway, if you go to all mail … I did not know this. Don’t go to your inbox. Go to all mail, and then when you click that little checkbox that selects everything on the page, you have an option right there in the middle that says, “Do you want to select your entire inbox? Do you want to select everything?” I didn’t ever saw that before because I’m rarely in the all-mail inbox. I checked that, and then I marked everything read and boom, it wiped it all out, so now would be a good time to send me an email. It’s just good. Now I’m going to see it, and now I’m focused on … I can keep this at zero. That’s the goal. That’s the new practice.

If you do send me an email and you don’t get a response, it’s typically going to be for one of two reasons. One, you’re just asking way too much. Not that it’s too much of me, but it’ll take too much time to respond or it’d take too much time to read. Something simple, you want to connect, you got a quick question, I’ll be happy to answer those, but don’t send me an email asking me how to do a Subject Two transaction. Don’t send me an email asking me, “So how does this whole wholesaling thing work,” or don’t send me an email asking, “How should I … How do I calculate my rehab budget?” All that kind of stuff, that’s what The Academy’s for, and I’ve gone to great lengths of answering all those questions inside of The Academy, and I can’t just do it in a one or two-sentence quick reply email, so don’t ask me those questions.

Then the second thing, as much as I appreciate hearing your life stories when you send those to me, actually, when I get the chance to read them, when I have the time to read them, they are very touching, so I love hearing about your journey, and I love hearing about how this show over the last almost, I don’t know, what, going on, started our ninth year, has impacted you and it’s touched you and it’s helped you, and so that’s awesome. I love it, but if it’s too long, then it gets put on the back burner with the intent of getting to it, but then I never typically ever actually get to it.

Anyway, that’s done, and it’s like a huge weight off my shoulder, so if that’s something that plagues you, go do it. It feels so good.

Anyway, I did that this morning, and then the very first email that came through, by Mike … Mike sent me an email, and he just happened to catch me I think at 5:00 in the morning. Nobody was up at my house, and it was all quiet. It was dark. I had my cup of coffee, and I was just kind of planning the day, and as soon as I got to zero, the very next email that came through was Mike. He sent me this email, and I just thought I’d read it here. I think it would make a good show conversation or show topic.

It says, “Matt, first, thanks for what you do. You are inspiring me to get out of the rat race. I have been listening to your podcast and attended the Cash Flow [inaudible 00:04:52] Highlight Webinar on Wednesday. I have owned a few rental properties for about three years now and really want to expand my business. I’m having lunch with a local real estate investor who’s about 70 years old, have 70 properties for sale, and he is looking to sell, little by little over the next few years. He is experienced … He is an experienced real estate investor, loves selling, not a distressed homeowner. Is there a certain strategy you would recommend that I approach with? How would you approach the lunch meeting being a new investor who does not have a lot of cash? I have a few ideas but would appreciate your thoughts/ideas. Thanks so much, Mike.”

Alrighty. Good question, Mike. It’s actually pretty simple. Nothing really changes here, except one little thing. The first thing you want to know, you got to know your deal standards going in. All right? Just because you have somebody ready, willing, and able to sell you a property doesn’t mean you are going to buy it. You have to know what your deal standards are. If you’re going to hold onto it, you have to know what your minimum return on investments you’re willing to accept, that minimum cash flow number. You have to know what that minimum number is, and if you don’t meet the number, then that’s not a deal for you.

Second thing is, if you’re going to flip the property, you have to know what your minimum profit is that you want to be. Mine is 10,000 bucks. I’m not going to do a deal unless I make at least $10,000, and even then, I kind of think about it, but at least I know that’s my minimum deal standard, so if I can’t get a good enough equity position in this, in a property, to flip it for 10,000 bucks, then I’m not going to flip it, and if I can’t get 33% ROI, for example, I’m not going to hold onto it.

That’s how I look at stuff. You got to know your minimum deal standards going in, and don’t waiver. Stick to your standards. You’d be a disciplined real estate investor. Don’t do a deal just to do a deal. Don’t buy a property just because someone’s willing to sell it to you. That doesn’t mean it’s going to turn out well for you. You’re an investor. Your job is to make money, so make sure, whether you’re going to hold it or you’re going to flip it, that you actually make money and you’re going to make the kind of money that you want right now. That’s the first thing. Know your minimum deal standards.

Second thing, ask the seller what they want. Don’t assume that they want full price. Don’t assume that they want all cash. Don’t assume that they are going to finance. Don’t assume anything. In fact, a second question is, as you have these incoming leads coming in, the first question is, “Tell me about your situation. Why me? Why now? You get all of this mail. Why are you calling me right now? Why is now important and why’d you focus on me? You have all these other options. Why me?” That’s the first question. The second question is, “What would you like to have happened?” The way that question is phrased, and it’s not normal English for a lot of people or normal phrasing of the way normally the way to speak, but you don’t want to assume anything. Ask them what they want. That’d be the second thing, Mike.

First, know your deal standards going in. Know the minimum that you’re willing to accept for yourself. Second is find out what they want. “What do you want? In an ideal world, Mr. Investor, you’ve been in this business for a long time. You’re getting rid of these 70 properties, and I’d love to help you out with this situation, but what do you want? What would you like to have happened?”

Once you got those two answers, you know your minimum deal standards, you know what they want to have happened, now just put together offers of price and terms that meet both, that satisfies both, so both parties can get what they want. All right? Pretty straightforward. If you’re dealing with a seller that is not distressed, you don’t have a lot of leverage, so you just got to do the best you can with what you got to work with. If you can control the price and the terms, you can create a deal for both of you. Just kind of choice, do you want the price or do you want the terms, because as long as you give me one, we can make a win/win situation here? All right? Not a lot of leverage though if you there’s no distress in place.

Then, if he’s an experienced seller, there’s probably not a whole lot of, I don’t know, crafty words or negotiations that you can come up with that’s going to help, no smoking mirrors, nothing like that. Just kind of give what you got. All right? Know what you want. Know what they want. See if you can create some price and terms combinations that allow you both to get what you want. All right? Thanks for the question, Mike, and thanks for being my first email after reaching inbox zero, which took me, I don’t know, maybe eight, nine years to finally get off my, to scratch off my to-do list. Alrighty.

Then, also, last week, I was going back and forth during the Epic Intensive. I was still helping my clients, and with a brand new client, specifically, a brand new REI Ace client, less than two months, for sure, probably about six weeks or so, and he and his team, they actually just left my office, for sure, less than two months before when they had their implementation day. They were here, had their implementation day, and we put everything together, and we set them off on their way, and from a dead stop … They know nothing about real estate. This was a brand new thing for them, and from a dead stop, they’ve already closed one deal and they also have three more, I believe, under contract. They got a few more under contract, of which two of those that they have under contract are with seller financing.

This is from a dead stop. They know nothing. They were just here, and all of a sudden, they’re going, we’re going back and forth on Voxer. “I got this. I got that. What do I do here? What do I do there?” Just walking them right through the whole thing, and they got one deal closed, and they got three more about too.

What I wanted to do is just give him a quick call. I wanted to check in with him real quick, and I’m going to record the call. I wanted to check in with what they’re first few weeks have been like to see if there are any insights that you can pull from the conversation for yourself. On the phone, please help me a welcome brand new real estate investor, Mike [Pierson 00:10:39]. Mike, welcome to the Epic Real Estate Investing Show.

Mike Pierson: Thanks, Matt. Good to be here.

Matt: Did you hear me?

Mike: Yeah. Thank you. Thanks for having me.

Matt: You bet. You bet. Hey, real quickly, I wanted to reach out to you, and I thought I might as well record it while I do this because I wanted to know what’s going on over there because your results are not uncommon, but when they happen, I really want to plug in and share the experience with everybody else to let people know just how fast results can happen. Just before you met me, can you tell me what you were doing?

Mike: I just moved down to North Carolina with my brother, but right before that, I was working with a contractor. Then right before that, I was working landscaping up in New Jersey.

Matt: Perfect. You moved down to go ahead and take real estate investing on full-time with your brother who is-

Mike: That’s right.

Matt: He’s full-time Marine Corps. How is that relationship working together? How are you delegating the duties and responsibilities?

Mike: Well, Parker’s more so the big picture aspect, and then, me and Michelle, we run the day-to-day operations. We have the most contact with our clients and with pretty much everything.

Matt: You guys are running the operations and he’s maybe more of a … I don’t know. A not supervisory role, but just input creatively and operationally, the vision of the company, right?

Mike: Yeah, definitely. He got us all together and definitely had to … Since he’s able to step away from what we’re looking at so closely, he can give us a clearer sight of it I guess you could call.

Matt: That’s awesome. You guys applied for the … I guess Parker’s who I met first. He applied for the REI Ace program, and after we got on the phone and we decided that it would be a good fit to move forward, you guys were out here very quickly after that decision was made. I would say less than … probably less than two months ago or right at two months, and you came … Once we had that initial conversation on the phone, we went ahead and started putting your entire business and your systems to work. We came to the office, and we showed you how to use it and how it works, and, boom, all of a sudden, you guys started hitting me up on Voxer, via the way that we communicate, and you guys were getting results right away. Walk me through, once you left the office here and you went back home, what has happened since then?

Mike: Quite a lot, I guess. The week after we got home from meeting with you guys out in LA, we were getting phone calls. Michelle and I were getting so excited, like, “We’re getting phone calls. We’re getting phone calls,” and then you kept walking through it. Then we got our first house under contract. We kind of overpaid for it, so we had to flip it instead of hold it, but I think two, this past week or the week before, it was a boom. We got three houses under contract in one week, and they were all [inaudible 00:14:01] mail campaign that you guys helped us set up. It was just a whirlwind of emotions and just it was a great week, but also a very hectic week, as well, but we’re definitely making a lot of strides and also learning a lot as we go.

Matt: Sweet. Up to this point, you guys left the office, you’ve never had really any investing or real estate experience up to this point, right?

Mike: No, not at all.

Matt: The phone started ringing, and what was that like answering the phone and making those initial calls? How did those go?

Mike: It was, at first, a little nerve-racking, but then once we realized you’re just having a conversation with someone, it’s just talking to someone about their property. It all went pretty well. We’ve heard horror stories about people yelling at people on the phone and stuff like that. We haven’t actually had any of those, only … We’ve had voicemails left with people angry at us, but other than that, it’s gone pretty well.

Matt: Sweet. The process is you’re just following the script that I gave you? Is that how it’s working?

Mike: Yes, definitely. The script is almost … It’s not magic, but it’s very easy to follow. It’s great. It’s funny. I was actually looking up [inaudible 00:15:27] in negotiation books and stuff like that, and everything that was brought up is basically you don’t even tell us to … Every negotiation book I’ve read is in the scripts that you’ve given us. It was pretty cool to see the direct correlation.

Matt: Great. All right. You have the conversations, and then how are you getting to the signed contracts, because up to this point, I think we have one deal closed, and we have three under contract? Is that right?

Mike: Yes, that’s correct.

Matt: [crosstalk 00:15:59] process of having that conversation to getting the contract signed. What does that most consistently look like for you?

Mike: We get on the phone. We ask them a couple questions, the script that you have. Then after we get all the information we need from the script, we say, “All right. We’re just gonna run some numbers here,” and then fully analyze the house with all the repairs they gave us that needed the repair estimate and all that, and then after we analyze the house, see if it could work out for us. We call them back and see if we can meet up in person and see the house and to actually see everything that needs to be done. Then after that, the one house we got under contract in Wilmington, Michelle went and looked at it, came back, and gave her thoughts on it. We tallied up the repairs that we thought, and then we went back and gave her an offer, and she accepted it right there. That was pretty cool.

Then the other two, it was the same process. We went back and saw the house, analyzed it, went back with a number, and then the one actually, we were a bit of back and forth of not just in person, but on the phone and through emails, going back and forth with numbers, but it worked out.

Matt: What actually inspired me to give you a call and check in and record this and share it with everybody was, one was, real quickly, you guys were getting results. Two was the, oh, the last Voxer you sent to me, which was just I think Thursday or Friday, so, what, four or five days ago, that you got two deals under contract with seller financing in place. How did those come about?

Mike: Well, this gentleman was a … He’s an investor himself from New Jersey actually, just like us, down here in North Carolina, and we had a pretty good rapport with him. He was an investor trying to unload his two properties, and he told us, yeah, he’d been interested in seller financing, and so we were like, “Great. That’s awesome.” The first offer we presented him, he was pretty much at a loss of words at it because he was like, “I can’t do this,” because we were so new. We were like, “All right. No doubt. We’re not gonna give a down payment,” and he was like, “No, I need a down payment.” That was the one that we went back and forth with a lot, and seller financing, the 20% down payment, then seller financed the rest of it.

Matt: Sweet. Great. Are you going to hold on to those?

Mike: Yes. The three we got all last week, we’re going to hold on to all of those. Definitely a good win for us right there. The best part was that we were able to come to an agreement and both sides were happy with what was said and done.

Matt: Perfect. Perfect. In this short run, what do you know now that you wish you would have known on day one?

Mike: Day one as in thinking about doing this? I think just go out and do it. There’s nothing holding you back. Everyone’s a lot nicer than you think they will be. Ask questions when you need to know something. Don’t be afraid to show your cards in terms of being brand new, I guess.

Matt: There’s nothing really to be afraid of. It’s not really a disadvantage of being brand new. Just go out and do it.

Mike: Exactly.

Matt: [inaudible 00:19:49]. All right. I summed that, paraphrased that for you, but I think that’s what you were trying to say. I don’t want to put words in your mouth.

Mike: Definitely.

Matt: Good, good. Cool. I’m sure that you guys have come together, you, Michelle, and Parker, and talked about what this could look like in the future. What are you guys envisioning from this point going forward?

Mike: Well, I’m a big Grant Cardone guy. I like to 10X everything. Then Parker and Michelle are much more … They bring me back down. Our goal, we’re going to have stepping stones, but our goal is 20K a month. My ultimate goal is 200 a month, but, overall, though, we just want to be financially free. That’s what we’re trying to do with the … We’re trying to hold as much as possible so that we can become financially free and do whatever we want whenever we want.

Matt: Does it feel like it’s, now, within the realm of a possibility much more than it was when you guys were here in the office?

Mike: Absolutely. It’s just been having this little experience, it has created so much more confidence in us.

Matt: Awesome.

Mike: Everything’s coming together. Knock on wood.

Matt: Great. Cool. I’ll let you go. Let’s check back in in the next 60-90 days and see where everything has panned out and how your progress has been up to that point.

Mike: All right. Thanks a lot.

Matt: Cool, Mike. Take care. Say, “Hello,” to everybody, and talk to you soon.

Mike: Sounds good. Bye.

Matt: All right. Bye.

All right. What did you notice? What did you learn? What is there for you to grab from that conversation and actually use to make a difference in your business? Now you know. Time to do. Alrighty.

That’s it for today. God bless to your success. I’m Theriault living the dream.