Matt Theriault’s coaching client Brad Donley is on today’s show to explain how he earned an incredible $50,000 in just the first two months of starting his real estate investing business. Brad’s results may not be typical, but they are absolutely possible when you make certain consistent, determined choices. In this interview, Matt breaks down each step of Brad’s process to show exactly what he’s doing, including what Brad calls his “ninja secrets”. Even Matt has to admit that he learned some new stuff from this episode!
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Matt Theriault: I mean he’s already got a little bit of a portfolio building and this is inside of his first 60 days in the business, pretty awesome. Inspiring actually. So who’s next?
(Voice Over:) Without further delay, your guru, sorry, your guide to a better life through real estate investing, Matt Theriault.
Matt: Hey there again. This is Episode 53 of the Epic Real Estate Investing Podcast. My name is Matt Theriault, the Rat Race Escape Artist. If you haven’t done so, go to FreeRealEstateInvestingCourse.com where I show you step-by-step how I got started on my journey to escaping the rat race once and for all and how I did it with absolutely no money or credit.
I leave nothing out. Everything is there for you in 10 easy-to-follow step-by-step video tutorials. That’s yours for free at FreeRealEstateInvestingCourse.com. Now the last few episodes, Episodes 50 through 52, if you’re brand new to this show, that would be a great place to start. Of course I want you to go back to number 1.
You can listen to to the ground rules of the show and how we’ve come, what the show is really all about. But really, Episode 50, if you’re just getting started with this and you just found us, welcome first of all. But Episode 50 would be a great place to start. Episode 50 through 52, these last three episodes, I’ve gone pretty deep detail on how to find the money for your deals.
Then I discussed how to find the deals themselves. You know that sequence, I happen to be the only one that I know of that really just teaches it this way in this sequence.
Meaning, first find the deal and then find the money. Or then the money will find you. This is what has worked for me from the very beginning of my investing and you know, nobody taught this to me either.
It was just after a few deals it just kind of hit me. It clicked. It’s just so much easier to find the money for your deal after you have secured the deal.
So I made a standard practice of mine to go out and generate leads. That would be the first thing that I would do. Then once those leads and I get to talk to those leads, I build rapport with the motivated salers.
I would then present offers and once under contract, then I would concern myself with finding the money. That works really well for me. I built my entire business off of it.
My entire portfolio’s been built that way. But I can understand how it may take a little bit of faith, blind faith even. If you’ve never done it this way before or never heard about it, I totally get it.
It can sound a little counterintuitive and today, what I want to do is I want to increase your faith and increase it to an extent to where you trust the process and you get to work and then you get the results. Now personally I’m not sure if there’s any more that I can say to convince you that this is a much easier way to conduct your real estate investing business.
It’s not easy. I’m not saying it’s just going to happen and it’s done. It’s not easy but it is easier and more profitable, mind you, than finding the money first and then looking for your deal. It’s easier and more profitable doing it that way. It’s easier and more profitable as opposed to doing it that way. So instead of how most people do it.
They go out and try to find the money first and then they look for their deal. You know what I’m saying? It’s going to be easier and more profitable if you go out and find your deal and then concern yourself with the money.
So today I have a special interview with one of my coaching clients. I mentioned him quite a few times recently and I want to interview him so you can could hear how the process works from someone else, not me.
I want you to hear it from someone else who’s actually experienced the results. You know when we started his coaching program and you know, we’re not even done with this program yet.
I mean we’re like 60 days into it or so. You know when we started, he knew very little. I ventured to say he knew really absolutely nothing.
He had little bit of history in his family with his parents investing but that’s when he was younger and he wasn’t really concerned with it. So I think it’s fair to say he knew really nothing about investing.
He had never done it before. After, you know, our first couple of phone calls, he had said, “You know Matt, just tell me what to do. I’m good at following directions. Don’t be afraid to speak bluntly.”
I think he even says something to the effect like, “Be harsh” or “Speak to me military style. Give me orders to follow. I respond well to that.” he said. I was like, “Okay.”
So for the next call or two, I told him exactly what to do. There’s no fluff, I said, “Go do this then go do this and then go do this.” You know what, he did it. He followed the process, he followed it step-by-stepy exactly how I said it.
He did not ask any questions. He didn’t whine. He didn’t complain. He just jumped in with this blind faith and he trusted the process. Here we are just 60 days into his program and he’s closed, I believe 11, 11 wholesale transactions.
I’m pretty sure he has another half dozen or so under contract. That’s probably more than I would say, at least $50,000.00 in his pocket in his first 60 days of real estate.
In his first 60 days of whole selling, he’s going to tell you more. I want you to understand though that these, his results, they’re not the norm, okay? Not everybody are going to get these results, his results are extraordinary.
But they are extraordinary because he had extraordinary focus and extraordinary determination. Then he took action that was correlate to that focus.
Now to be completely transparent, just to give such an expectations appropriately and so this reality for you, I’ve purchased six or seven of his deals from him.
You know if you stick around to the end, I’ll share with you a new system that I just put in place so you too can present your deals to me. You can look at this as an additional option among your existing exit strategies.
But having said that, I did purchase those six or seven deals from him so far but he sold just as many to other investors. He did create a buyers list and he did sell them to other investors.
You know in fact one whole sale deal that he made, he made $23,000.00 on one deal. I didn’t buy that deal. He sold that to someone else. So I thought that was pretty sweet.
I’m not, you know I’m not exaggerating in the slightest. I mean anything I think I’m probably being conservative. I think he’s sold more than I even know about. I mean I actually think he’s literally lost track.
I don’t want to imply that you’re going to get these same results if you implement what I’ve been teaching you here from day one but I do want you to know what’s possible in a very short period of time from a total newbie starting from scratch, starting from a dead stop with no money or credit.
I mean he may had some money and credit but he hasn’t used any of it yet. So I won’t delay this interview any longer. On the phone, I’m joined by Brad Donley from Saint Louis. Brad, welcome to the show.
Brad Donley: Hello, how are you?
Matt: Doing good, you?
Brad: Okay, it wouldn’t stop raining here since last week so…
Matt: Right, you just had big floods there just recently, right?
Brad: Yeah, we started probably about 1 o’clock on April 15th and it hadn’t stopped raining since and we’re supposed to get snow tomorrow. We’re thinking we might get snow.
Matt: Wow, spring snow.
Brad: Yeah, it’s going to kill tulips in my yard.
Matt: Very different than what we’re used to out here in California. So Brad, again welcome to this show and, you know I would always just like to start by just hearing a little more about you and so the listeners can hear about you and your background and what you do for a living up to the time that we met.
Brad: Well, I’m married, 28 and have a son, Harrison. I was doing, I had a cleaning company, commercial cleaning company that I started with my family around 22, 21 years old. I was doing that full time, still have it. Then grew then to quite a big business. Then I met you via the podcast in November of 2012.
Then we connected in coaching and basically just transitioning to real estate full, actually I am full time.Everybody knows me locally, they think I still do the cleaning company but I’m really devoting about 40, 50 hours of solid easier work to my real estate and cleaning.
Matt: Right, yeah, you’ve definitely made some moves really, really fast. I think we’re only seven or 8 weeks into our coaching program. You’ve done very, very well for yourself so far.
We’ll get to that in just a minute but what was it about real estate that actually attracted you or what was about the podcast or what was it just the coaching? What was it that was, you know, what’s so appealing about real estate for you?
Brad: Hey, my dogs are barking. It was basically how big the umbrella is in that of which you can do in real estate. If you get a good in real estate in one thing, you can basically make a killing financially, on a killing side.
You can make a very good income with being good at one thing but doing, in many different ways whether be teaching people, setting up deals like putting deals together. Whole selling would be deals would be buying them for yourself or structuring deals.
I’m really good at finding income property for people. So I will find a property, I will put the finance in place for them to purchase the property and we’ll set up the rehab and they’ll have a management team.
So that, I mean when you have someone that doesn’t have the creativity, you need help involving all those different professions like the rehabbers, the management and the actual person that you’re buying from creates a lot of contacts.
It all started with that daily success sheet. I just started doing that and doing that and it’s kind of like, “Why won’t we just start putting all those together?” I did. It just took off. Yeah, I mean.
Matt: Well, let me kind of re-ask that question. What was it that you knew about real estate that had you even in interest in it at all?
Brad: I like to negotiate and so I’m thinking, “Why won’t I go to real estate?” And Ars said, “Yeah, you should get your real estate agent.”
My father was passed away in 2012 by kind of in cleaning industry with “my heart wasn’t in it anymore” because there’s a family so I was looking for a, personally a lifestyle change. I was really, really depressed.
I was driving back from Atlanta during Thanksgiving and the talk about the real estate agents. My wife talked to a real estate agent was like before November, you like to negotiate.
Why don’t you think about getting your license?” I said, “Okay.” So on my way back from Atlanta, I think were in Paducah, Kentucky, we did not have, our iPads weren’t working, we don’t have cell phone. Pandora wasn’t working.
But we weren’t able to listen to any music but I checked the iPad. I found your podcast that I had downloaded, I guess maybe a couple of months previously.
I started listening to it and I think I listen to ten straight. We hit a lot of traffic coming from Atlanta. Ten straight hours, basically your first ten courses, it was just. It took off, excuse me. This just took off.
I’m not going to become a real estate agent, I’m going to start doing this and I’ll just devour, I mean literally from December 1st to February, I’ve devoured anything you put out, a little bit of other stuff. Maybe like Robert, I can never say his last name. What’s his last name?
Brad: Yeah, that’s right. I actually have him in my CD player in my car. Everything I just made a commitment. Got into your coaching and I just talked about what happened since then. So what? Did I answer question along my…
Matt: Yeah, definitely, you answer that question and my next five questions I was going to ask. So perfect.
Brad: I’m sorry.
Matt: That’s okay. So you made a decision to go ahead and pursue this and you made that decision to work with me and you know, it’s, that can be a commitment because, you know, I’m not cheap.
I’m curious because one of the questions I get frequently from our listeners is getting on the same page with their family, getting on the same page with their spouse.
So what was that like? How did that conversation go down when you decided to, you know you’re going to be switching in career and you’re going to make a pretty decent investment in coaching and something brand new and how did that go down?
Brad: Well, I think we were, I think December 25th on Christmas Day, my wife and I, we weren’t really fighting but we were going back and forth about, you know, I was depressed.
You need to see how, so I got some help. The lady that helped me couldn’t be happy. I was like, “Okay.” She was like, “That’ll take care of everything.”
I came back to say, “Just be happy. I just wanted to be happy.” “Well, are you happy doing, you know, in the cleaning company?”
I was like, “No, my heart’s not in it. My heart’s in real estate.” (She sais,) “Go do real estate.” I go, “You don’t mind if we basically “move” everything, you know, because of a career change.” She goes, “No, I just want my husband to be happy.”
So I was getting pretty emotional so I was like, “F%$# it, this is what I’m going to do.” We dove in, signed up for the course and the full support of making the change is the hardest part.
As long as you have a peaceful, at the time my son was going 8 months. As long as you have that support, it makes everything so much easier to fight that whole worry about it. I mean, I’m not going to disappoint my, because I was worried about disappointing my wife.
That’s because I’m the breadwinner. So disappointing my wife and “As long as I should have hung out, I basically won’t be disappointed of you.” That was it. I was like, “Let’s do this?”
So it’s the talk you want to have with your spouse or with your family beforehand because they can push you really far into it and make you do well or they can really, really e counterproductive. So…
Matt: Thanks for sharing that and it was a big personal decision for you and I know it’s emotional for you but it’s not unique. You are not alone.
There are a lot of people out there that don’t like what they’re doing, they want to go find something else. They are attracted to real estate and you know, the laments out there that just, you know, kind of hear about real estate from the media or read it in the paper.
You know they have preconceived notions of what it is and the only stuff that the media ever covers is the bad stuff, the stuff that went wrong or the people that made the windfall and they make it almost equivalent to winning the lottery and think it’s just a big giant gamble.
What I teach and what I coach on is that it’s not a gamble at all. It’s actually very manageable, it’s very predictable and if you just put in the work and you do the activities consistently and persistently, you will get the results.
That is very much what you have done and you’ve been a perfect example of this, a really, you know, not the norm but I mean, you’ve experienced extraordinary results. But you also put in an extraordinary effort.
So I’m really proud of you Brad. I’m happy to be working with you and I love that you’re on this show because I want people to know what is possible, not just what’s possible from me. Like look at the teacher, of course he can do it what about little me? You know and Brad, you came in not knowing a darn thing about real estate.
Brad: I know s&^*.
Matt: Yeah, I know. I know, I remember.
Brad: You remember when I was in the beginning? I was like, “Men, how the f&*% am I going to get a hundred points?” and you’re like, “Brad, every time the person calls you back and you get a hold of the person, that’s a contact.” I was like, “Damn, then I got 300 hundred points.”
Brad: I didn’t even know how to keep track of points. I was like, “That was like..” But, I mean, sorry.
Matt: No, that’s okay. If you don’t know what he’s talking about, he’s talking about the daily success sheet that I use to track business activities.
You can get that for free inside the free real estate investing course I think I discussed how to use it on video three, lesson three. But Brad started using that and I said, Just get your points and you’ll get the results.
He consistently got his points and he’s got amazing results. So why don’t you tell me or tell everybody here a little bit about the results that you have experienced so far.
Brad: I have two properties that I own. I have not, I own two properties, rental properties, like three but. Three rental properties, I wholesaled, I don’t even know how many I wholesaled now.
I think I wholesaled about $76,000 worth of property. I don’t know if that’s the exact but I knew you were going to say here but I know that for sure. I added it up.
I actually have 200 contracts currently. I have a duplex in the contract. I just have three. I got four-family under contract and it needs to be rehabbed and I have another property under contract. Yeah, so…
Matt: And that’s what you have under contract? So what have you closed?
Brad: I haven’t heard, sorry.
Matt: That’s okay. How many have you closed?
Brad: I have closed, one, two, three, four, like one right away. Four, five, six, seven, eight, nine.
Matt: Probably at least 10 right?
Brad: Yeah, I think 11. I think I have a closing coming up this week and the next week. I think one’s on Friday. I definitely need a board. Mercedes always said she need get a damn board. So…
Matt: Got to track your deals.
Brad: What’s that?
Matt: I said you got to track your deals but what I really like about and we’re going to go deeper into this but what I really like about the way you have done this is so many other people when they get started, they have to go out and set up the LLC. They have to go out and get their business cards printed and they got to set up their fax machine.
They got to get their office just right and they spend all these time getting ready to get ready. The reason you had your success that you’ve had and in such a short period of time.
We’re only in week eight of coaching. He has still another month to go in his coaching program and we’ve got 10 plus deals closed in another at least half a dozen in escrows is because all he focused on was the activities on that daily success sheet.
Those activities there are, they’re very specifically because those are the only activities that make you money. So anything else that you’re doing throughout the day and if you can’t give yourself a point for it on those, on the daily activity sheet, it’s not making you money.
You took instruction very well and you just focus on that and now you’ve got all of these deals that you can’t keep track of and dare I say $40,000 to $50,000 of wholesale fees in your pocket.
Correct me if I’m wrong but I think that’s about where you are. Inside of eight weeks with yet, you’re just starting to set up your LLC. I was just at your house, I’ve visited Saint Louis this past weekend.
I got see your home office and what a disaster that was. But it’s just awesome that you’ve been able to, “Let’s go and do the important stuff. Let’s get paid and we can hire a cleaning lady later or an organizer to come in and fix the office. Then we can get the LLC set up.”
There’s a, one of the greatest pieces of advice I ever received from and this was when I was becoming a real estate agent. This is why I’m so adamant about this on inside of real estate investing because this is why it excites me because you’re the very first person I’ve had that really took this philosophy in and ran with it.
The broker of our office when we were brand new, they said, “Just go out there and get contracts signed. Just bring it back here and we’ll fix the mess. Just get the contract signed and come back here. We’ll fix everything else.”
They just relayed that to us. That was our quickest way to a pay check. Don’t worry about anything else. Just go get the contract signed.
That’s what you’ve gone out and done. So it’s a perfect example and I was just waiting for someone to come along and really embrace that and do it. I acknowledge you because you have, you still have issues and challenges.
We got to work through that and we got to get your business up and running correctly. But you got the whole world of different challenges than most people getting started do.
They’re still designing their logo or they’re still trying to figure out, you know, which contract they should use. You know, you just went out there and “Give me a contract.
Where there are buyers, salers, let’s do this. Make sure I got my contingency clause in there and we’ll fix it all later.”
Then we fixed it all at escrow. There are all kinds of mistakes but we fixed everything in escrow. Escrow closed and you get paid. So, awesome.
I mean I don’t even know where I was going with that. I didn’t know I was going to talk that much but I’m very passionate about it because I love seeing somebody that takes the instruction that moves at the speed of instruction and goes out there and gets it done.
I think you’re a great inspiration to the people on this that listen to this show because, gosh, I’ll tell you. The biggest most popular question I get is “How do I get started? I’m suffering by paralysis analysis. I don’t know where to begin. I don’t want to start and end up getting it wrong or doing it wrong. I don’t want to start and get into trouble. I don’t want to start.”
That’s always the thing, how to get started. The answer is , Brad, just get started and you did that. During our coaching programs in the couple of times that I’ve been up to Saint Louis to work with you and help you set this up.
The, you know, we talked about things and I’m just like blown away and your question to me was like, “What’s wrong with people? Why don’t they do it too? I didn’t know what I was doing and I just did it and here I am and I got the results.”
So I don’t know. I don’t know why people don’t get started. Obviously there’s a level of fear involved and the fear of the unknown and uncertainty and it’s something new and we are all a little bit afraid of things that are brand new to us.
But I just want to, real estate, it’s not easy. I’m not saying it’s easy but what I’m saying is there’s nothing there to be afraid of if you just follow a good program, good instruction.
Nobody’s going to jail unless you’re, you know, intentionally dishonest. You’re not going to get in trouble. So just go out and do the activities and you’re going to make your mistakes and that’s okay. You just fix the mistakes and keep moving forward.
Brad: And believe in yourself because, I mean, just do it. I mean I hadn’t contact half of the contact that kept going delayed, delayed and the agent didn’t tell me that it kept getting delayed.
Five days before closing on Friday, I was like, “S^&%, I don’t have the money to close.” What I did was doing the daily success sheet and I knew a private lender that would lend it and I was able to close on the day that was because I tracked all that, I basically did it all on a phone call.
I made the phone call and what it is the guy, he called the person with the property and you have five minutes on the phone, ask more questions. Because if you’re calling another investor, more likely, they’re going to need financing just like you do?
So be resourceful. We have, that’s like I told my wife the other day, there are million resources out there for people to succeed in life but most people don’t have the ability to be resourceful.
So it’s like, I mean, I kind of have an epiphany. It’s like, you’re teaching me to be resourceful. It’s like you told me, “Follow the success sheet. Follow the sheet and you’ll be successful.“ I was like, “Okay.”
Then something clicked. I can’t remember what we talked about. I have to start being resourceful. That’s one of the biggest things. It’s how you use your resources in the most efficient way. It leverages people that know more than you.
I leverage every day now. I tried to do it every day. I use your leverage, in real estate; one of the biggest thing is leverage. If you meet someone and people go to investment clubs and networking you always talk about. Networking, leverage those. Annoy those people, you’re not annoying them because people like to help people that will succeed.
That’s why I text you everyday. Call you every day and bother the s*&^ out of you because you don’t want me. You don’t want everybody.
I don’t know everybody but you know. More than 99% of the people, who the hell do I want a word from? Yeah, that’s my biggest…
Matt: No, it’s very true. I’ve said that quote before that, you know, when you go out and meet people that people want to help people that want to succeed and I never really thought about it in our relationship but yeah.
I take every single one of your phone calls and answer every single of your emails and your text messages because I’m inspired by the action you’re taking and the questions that you’re asking because I know you’re doing the work or else you won’t be asking those questions.
So perfect, let’s go back to the beginning. Alright so we kind of got your story and we know what you’ve accomplished and we had, you know, we know what it takes.
So let’s go back to when you first got started and generating leads. So what did you actually put in place to start generating leads? What was working for you?
Brad: What worked the best was, well I started right away doing yellow letters because that’s easiest. I mean that’s easiest. You can write 10 to 15 at night by yourself, put in the mailbox and send it.
Let the United Postal Service or UPS do their job. I mean, depending on how you target your letters, you’ll always going to get, high 12% return. You’re always going to get, people won’t have access to my Google voice account and see all the calls I’m getting, it’s unreal.
You’ll always going to have that and once you get targeted on your list like I think you’ll talk about like that pre-foreclosures and all that, it goes, it shoots through the roof.
I heard going to investment clubs, get out. We talk about Meet Up and I was introduced. Meet Up on one of your coaching calls, go to the Meet Up.
Get in touch and perform, meet the people, be nice. You say this is what you’re doing. Be honest about yourself. “I don’t know s&*^ about real estate, I need help.”
I said that probably over 20 times to people. Then I called a lot, calling for me was hard in the beginning. Like it took me about a good week but once you start doing it and you realize that the seller is going to hang up on you or just like say, “What the hell are you calling me for?”
I mean it’s easy, calm them out. You’ll get calls back, that’s like give your calls back all times of the night that’s why that is just like this. Network me…
Matt: Okay, let’s slow down because I just want to make sure we get real details in here so people can really, you know, emulate what you’re doing. So you send out yellow letters, who did you send those yellow letters out to?
Brad: I send them, I’m sending under pre-for closures absentee owners. I’m getting a really ninja on it. I’m actually sending them now to, I think I drive through a neighbourhood then you see like Bank of America owns this.
They usually have a company that’s managing it. So the Bank of America locally, they have, I can’t remember their name, a managing company coming out of Texas.
So I wrote down this in the beginning when I was just getting started. Side note, log everything. The best up a way to log the information is if you have posted it on up on a window, take a picture of it and email it to yourself. So we logged on that address. We started sending letters to those. So we started doing all these.
It just works. I mean, I have a Freddy Mac representative just leaves me a message yesterday, yesterday or two days ago. I mean, they want to know if I want to unload all of the property, a rep calls me…
Matt: How did the Freddy Mac, the Fanny May person, how did they find you?
Brad: The yellow letter, man. Yellow f*%$ing letters. I didn’t meant to say that.
Matt: It’s okay. It’s a podcast. This is a free broadcast. Go ahead.
Brad: Yeah, you get ninja on it and like I don’t do signs. I mean, I started off so fast and it rains a lot and here it rains a lot. So my signs just get destroyed with the rain.
It was snowing on April 10th, we got 11 inches of snow here. So that’s like six weeks into my training course and it snowed a lot in February.
So I really could not. It’s not that I did not want to put signs out, I just really did not have the opportunity because of so much snow and rain. So yellow letters…
Matt: So let’s go back so you have your yellow letters. We’re sending out pre-forclosures and absentees owners. Where did you get your list? How did you find your list?
Brad: The pre-foreclosure list, if you google “Saint Louis.” I found my source at a networking event. I just go, “Hey!” I ask the guy next to me, “Could short sale people that are short sale negotiators…” you ask them because they’ll tell you. I just ask, “Hey, what kind of forclosure list?” They go, “You just go to the court house.”
So I went to Saint Louis county court house, and I go, “Hey, where can I find the pre-forclosure people?” because of the public knowledge they go, “You can come down here every day. You can go to this website and get the list.”
So I went to the website is called, Missouri Lawyer Media something website. I just registered and I get daily notice. So people in Missouri, it’s non-judicial state so there’s 21 days I think. When people go into for closure my keys…
Matt: Okay, so hold on there. There’s something really important that just happened there. A couple of my other coaching clients we’ve had on, Allan was good at this and Rick was really good at this.
You didn’t know where to find the list so you asked somebody. That somebody told you to go to the courthouse. You ask the person at the courthouse. They told you to sign up on a website.
You signed up on the website and the list gets delivered to you. I mean there’s not too many, I don’t know if one universal site that’s going to work for every single state.
We talked about something earlier where, you know, there’s all the resources out there available at anyone’s needs. You just need to be resourceful and that’s a perfect example of why Brad, I think and that shows up in every aspect of your business.
Like there’s no dead end. There’s no, “Oh, this doesn’t work.” or “Let me go and ask for a refund because Matt told me to do the wrong thing.” Whatever it may be, it’s being resourceful.
So you just from one place to the next to the next and now you’ve got your list of pre-for closures coming and you send your letters to that list. That’s what I wanted to point out.
So kudos to you for being resourceful, Rick went to go on a motivated seller meeting from a yellow letter. He didn’t end up buying that house. He ended up buying that house next door to it since it had a for sale sign, he thought he was resourceful. He said, “Let’s call that one since I’m here.”
So those are the types of things that are really going to be required of you or of everybody that gets involved in the business is recognizing the opportunities. By doing the activities, you create opportunity for yourself.
You know Rick got that second opportunity from the normal activities that he was doing. But he just said, “Well I didn’t send the yellow letter at that house. I’m not going to call them.” Which people do all the time.
It drives me nuts. I’m getting very passionate about how you’re succeeding, Brad, because you’re perfect and I love it that people can hear from someone other than me.
You know they’re few far between of people just being resourcefulness. This goes for every aspect of your life, not just real estate investing. So awesome, so that’s how you’re resourceful.
You went from one place to the next place to the next place and you found out how to get pre-foreclosures in your state of Missouri, so awesome. Now, let’s go over how did you find your absentee owner list?
Brad: Oh, how did I find it? Alright, our property manager gave it to me; property manager gave it to me. Here’s a ninja trick to or if you don’t have access to your people yet, ask about your situation, go to National Property Management Association. So I just went on that. I went to Local Property Managers and what is local property managers’ job?
Their job is to get people in their houses. So you go and see the houses on their website. That’s a rental property so there must be an owner of that. So to find who owns the rental property, you go to your county or city assessor, real estate property assessor. It’s public knowledge, alright? You look up the tax records.
So and so owns property at 123 Main Street. You find her mailing address, mail her a letter because that’s your easiest and quickest way if you can’t get a very good list yet.
You don’t have your team made up, go on to the property management website, find the addresses, write down 10 addresses. That’s why I told Barb who’s getting in business with us and you know her. Of course you don’t.
So write down ten management addresses, look up those property addresses, I’m getting excited. I’m stumbling on my words, look up those 10 property addresses, who owns them, their mailing address and mail it.
Brad: Once they call you back, they’re going to call you back because it’s f&^%ing vacant. Excuse my language. It’s not performing. They’re going to, you’re going to say, “I own this property, this property, this property.” “Okay, would you like me to buy all those property for you?” “Of course I would.” Sorry, go ahead.
Matt: No, this is just something that I actually learn from you because I never thought to do that. I certainly would drive through neighbourhoods and look for for rent signs.
I would certainly go through the newspapers and look for for rent ads and look at your, you know, for rental, for rent magazines. But I never thought to go to a property manager’s website and some of them are more sophisticated and high tech in the future or in the present than others.
But they do have a list of all of their vacant properties. It’s very easy to go and take that list of vacant properties and go punch it into your county assessor’s website.
So again, another great example of being resourceful and something that you actually taught me. So definitely ninja, awesome work.
Brad: And here’s something cool too by the way. Find like, there should be a rating system. Maybe if you go Google Maps on the property management company, they might have a rating system or review system.
Go to one that suck because more likely those owners are tired of that management company. They’ll do one or two things. They’re going to get rid of the management company and change or they’re going to sell it to you.
You’d be a resource for that. That’s why you need to team up with your team to build your deals. You go, “Hi Mr. Seller, Mrs. Seller, so and so. I know, if you don’t want to sell it to me, Ma’am.” You always have to be helpful. “I know an awesome property management team that will manage this and get a tenant in place within, you know, four weeks, I don’t know.”
Whatever you tell her and you guarantee to get her in place. But behind the scene you work your ass off to find a damn tenant. That property management is going to love you and they’re going to send you every damn owner now that want them to load their portfolio. That’s what we need one of the things to do it.
Matt: That’s awesome, that’s awesome. You know even if it’s not going to be a deal for you, you sending a referral to your team, your team appreciates that and send referrals to you.
Brad: Yeah, one thing that you always preach was, “Don’t come from what scarcity are.” And that was one of my biggest things too. It’s like coming from it like, yeah. I give up, I’m not going in too much but yeah. How is he helpful? Because, dude, it pays you off, man. I just have 31 properties sent to me. Wholesale is for me.
What you do is once you get that to the point that you are. Your listeners are like, you cherry picked those. You find out which ones that you want to buy yourself.
Then you just whole sale them out to which your buyer wants. It’s not tradition to buy wholesale, wholesale, wholesale, much to our deal was. You taught me, wholesale, wholesale, wholesale.
Buy wholesale, that’s why your activities create, your activities that you can go back to daily success sheet, they create your wealth. You’re just doing what you’re supposed to do.
Matt: Yup, yup. The more activities that you do, the luckier you get. It’s definitely, wow, it can be summed up. The more you’re in the mix, the more you are doing the activities, the right activities, not pressing business cards and setting up your fax machine in your home office.
Not those activities. Activities of actually going out finding deals, talking to salers and talking to your network and those types of activities that are on the success sheet.
The more you do that, the luckier you create yourself. Then you get someone that calls up and says, “Here are 30 properties. Can you help me move these just like you did?”
Yup, I’m on a plane tonight heading to Cincinnati and to do my due diligence on 40 properties. That was a phone call that came to me from the exact same way. So I’m glad that you’re experiencing the same thing because that’s the business should run.
That’s when it gets easy, that’s when it gets fun. Awesome. Okay, so, they’ve gone over to some leads. So the yellow letters and then we’ve gone on how you kind of created your list.
I think that’s brilliant by going not just a property manager’s website but the property managers with the terrible ratings. I mean going to Yoke and you can see all kinds of stuff there for property manager’s as well.
Also, the National Association of Residential Property Managers. I think it’s NARPM.org. You can find all kinds of property manager in your immediate area and then start looking at those websites.
Look for the ones that got a bunch of vacancies and the ones that have terrible ratings. Those are a great way to generate your non-owner occupied list. I love it.
Then at the same time, keeping your eyes and ears open as becoming a referral source for your property manager because I think you’re starting to understand Brad that the most important person on your team really is a property manager.
Matt: They’re in direct communication with the deals before they could become deals. So that’s, who’s person you want to be there and once you have properties and you’re holding them, they’re also the ones that cause your properties to perform.
So awesome, awesome work on that. I learned a couple of things right there for myself that we never even talked about before. So, super, so you go the deals and you go out and this is one thing I noticed with you driving around.
I’ve been to Saint Louis twice now in the last eight weeks, driving around with you, and we’re talking and shooting the s&%$ and going from property to property and meeting people. But anytime that phone rang, you said, “Hold on.”
Then you answer the phone which I think is vital to your success especially in the beginning. Answering the phone when they call you, so tell me the difference, I guess, and I know you return all your phone calls too.
So that’s awesome but have you noticed a difference between those phone calls when or your results when you’re answering the phone and you’re talking to the person or when you let it go to voice mail and you call them back later? Have you noticed any difference there?
Brad: Yeah, the people that you get a hold off, they usually, I mean there are so many different types of people.
Brad: Like some people are like, when you answer the phone, they’re ready to deal. They’re ready to know why the hell you called them.
They want to know why you’re calling them, where did you get their number and I kind of take the I understand what you taught me. So I just, be the same way they are being to you. I mean, it works.
One time I answered 75 incoming calls one week, like three weeks ago. We’re starting to get extremely flamed. I bent out of shape because this lady was really, really mean to me.
And you’re just like, “Just be the same way she is towards you in the future.” So I start doing that and it’s kind of like slapping the horse in the face, a loud horse in the face. You kind of get its attention and this is for real. You can’t bully people so, I mean, s*%$.
Matt: I mean, yeah. When they’re mean to you, you’re not mean back. You’re just firm and matching their tone, right?
Brad: No, I don’t say anything, you know, mean or “Where did you get my letter?” I was like, “Well why did you call me?” I was like, “I don’t even know you. What’s your name?”
Because they don’t, some people, you know when people get going, they’ll find out like I stuck the letter in their door, in their mailbox.
I had to tell one person one time that, “No, that’s a federal offence. They’ll lock my ass up in jail. I mailed those letters. It’s random.” It’s not random. I know the list but I don’t know whose calling.
So it’s kind of like a, at first it’s kind of like, when I first started, it was scary. It was scary s*&%. I mean, one, I never told you. The guy was trying to shoot me. I think it was pretty hard to shoot me.
Matt: That was over the phone, correct?
Brad: Yeah. But once they, well after you call them back, they’re not as motivated and they don’t return phone calls because the pre-foreclosures, they’re getting lots of phone calls.
They’re getting phone calls from attorneys. They’re getting phone calls from creditors. You see when they call you; it’s time to f*&^ing roll. You got to get. You got get your Nikes on, man.
So always answer the phone as much as possible. That’s why as soon as you do one or two deals in a month with people, get someone to help you answer your phone calls for you.
I mean you’re going to walk into the fogs. Just take down the message, that voice could, it may read the letter if they’re in pre-foreclosure and absentee owners.
They’re fired up like, “Yeah, let’s tell this thing. Let’s get this damn thing sold.” So you want someone to kind of say, “Yeah, we’re real. This is not a joke. We actually want to buy your property. So can I get more information for you?” That is if you can’t answer the phone and so…
I don’t see the point now and it doesn’t take long that while I’m driving now, I let it go to Arbs. Arbs is now taking down my information.
Matt: Arbs your assistant, right?
Brad: Yeah, she’s in the cleaning company. So she’s going through your course and basically training, you’re training her and it’s kind of just, that’s how we kind of setting up.
I talked to you this morning about my anxiety setting up the business. It’s just that’s what it is, just that transition of success. It’s good anxiety, it’s just the transition. So…
Matt: So I know you’ve gotten a lot of amazing calls and you done a lot of deals. I was really blown away like in our second and third week of coaching.
You know, every other day, you’d say, “I got another one under contract. I got another one under contract.” and I was like, “You got to be kidding me? Is this guy, you know, is he just trying to make me feel good about my coaching program or is he really getting the results?”
So I’m curious to this large number of great calls that you’ve received and you’ve found a ton of motivated salers. How many, what would you say is a ratio or percentage of, how many crazy and wacko phone calls have you had to go through to get those good ones?
Brad: S&^%, a lot, man. I mean…
Matt: A lot, right?
Brad: Yeah, dude. There are so many. The worst one, a percentage or ratio, you probably got to go like, 85% are not those. But once you find that one out of ten, they know six or seven in their similar situation.
So you leverage them now being resourceful. But yeah, they’re very crazy, man. A guy trying to shoot me. I had a brother called me up wanting to meet me there because he wanted to turn over the keys right now and sell it to me on a quick claim deed.
It was like 10 o’clock at night. That was when I was being really, really ninja. First week adventure and everything, 1:30 in the morning, “Yeah, what’s up?” You get a lot of, lots, lots, lots of people.
Matt: I just want to, I guess, demonstrate and it’s not all good, right? You got a ton of great calls but you had to go through a ton of crap, two tongs, three tons of crappy calls just to get to the good ones, right?
Matt: Okay, cool. Alright, so we’re generating leads and you’re answering the phone. I think it’s vital. I mean even at this point Brad, I would recommend you still answer the phone as much as possible because that’s when you’re going to most powerful.
It’s when you’re going to be in the best position. You’re going to have the undivided attention and that’s when you’re going to have the best opportunity for your deals.
But you got so many deals right now. I’m not mad at you for going ahead and passing that off to an assistant but that doesn’t change.
Matt: No, no. That’s okay. It doesn’t change. When you answer the phone, it’s going to be a better phone call when they’re calling you always.
So let’s see, so we’ve been in the business for say, two weeks or eight weeks. Looking back, not a whole lot to look back on but knowing what you know now and I think you know a lot right now.
I think you know a lot more than you think you know right now because you’ve logged a ton of experience in a very short period of time.
Knowing what you know now, what do you wish you would have done more of in the first eight weeks or how would you’ve started differently knowing what you know now?
Brad: I think I would have l, like in the beginning; I was only devoted 15 to 16 hours a week towards this. I would have devoted more to just getting out and more networking and more letters. I think, s&^% that’s a great question, man.
Matt: But once you started to get the evidences when you really started to commit yourself.
Brad: Yeah, it’s like when I, “Is this for real?” Like, “Yeah, you do the work, it’s for real.” and it’s like. I mean, yeah. I think I would have just believed in myself a little bit more. But that’s the biggest thing. Everybody aims to be successful. You just got to do it and believe in it. I mean…
Matt: I love that. I wasn’t expecting that to be your answer but I think it’s a great answer and I think it’s a great that applies to everybody listening that hasn’t yet done a deal.
With that big concern of how to get started and that doubt and that fear and not wanting to mess up and not wanting to take the wrong path and not wanting to do it wrong and not want to get into trouble. If you were to do it over again, you would have just believed in yourself more in the beginning, right?
Matt: Exactly. Each and every one of you listening to me right now, all of you are capable of doing this. I have never met most of you, I don’t know you.
But I know by the nature of real estate, you are all capable. If you just believe in yourself and move at the speed of instruction, you will get results. You will get results. I love that answer.
As far as activities or practices or strategies, anything like working right now super well for you that you wish, if you would have known what you know now back then, you would have jumped on it even more?
Brad: Being more generous, I mean, work with other wholesalers because it’s leveraging people. They know more people working with other wholesalers. Get with your finance people.
I mean because if you’re going to structure a deal like for example, my goal was to displace my income. I mean that was my immediate goal, we talked about that all the time.
I mean, how can I make this happen, just displace my income? So to put this way into displace your income and cash flow is to learn to whole sale.
If you, wholesale, I mean everybody can whole sale. So you want to, I don’t know. Find a guy that will loan the money for the fix and flips, find the deal, find the property just the way we talked about it, go to them right away. “Hey, look at this deal here. Here are the numbers. Will you loan against it?”
I don’t know, money for the fix and flip. Or whoever you find, find the lender. Yeah, but you got it under contract. Yeah, that’s a great deal. “I’m a lender. I need to [email protected] lend money.”
So you just say, “Hey I got some deal. I got a lender lined up. Anybody want to do the deal?” You have property, you’ll have s&^% going so fast. That one property in Wichita, it was gone in 13 minutes. That deal I had, it’s gone in 13 minutes.
Matt: Cool. Let’s stop for a second. Let’s talk about this, two things. First is, you said you would have connected more with your finance people. Who do you mean?
I guess you kind of described it a little bit, hard lenders are private lenders. How did you find those finance people? Where did you connect with them? Because I know in the beginning, you didn’t know any of them.
Brad: We connect one at the real estate clubs. It’s huge. Do real estate clubs in your area and two, when you’re doing your dial for dollars, you find other investors. You just be curious, it’s like, “How did you find the resources?”
Just say, ”Hey, how did you find your money, immediate money for you deals?” “Well, just use this guy. He’ll loan you the money.” “Okay.”
So I called that guy and said, “Hey, what are your lending requirements?” They told me this, you log all that and you… yeah.
Brad: You’ll have private lenders, hard money guys, soft money guys calling you and set up an appointment because you’re finding them the deals.
Brad: Like you always said, find your deals.
Matt: Oh my God, you couldn’t have said that anymore perfectly. I’ve gone, I think the last three or four episodes on this very subject is that once they’re identified.
Once you found them, they really don’t want to talk to you until you have a deal though or you have a reputation for finding deals and that feeds right into what I always say. If you find the deal, the money’s going to find you. Absolutely and that’s what you experienced, isn’t it?
Brad: Yeah, pretty good. Pretty spot on, Matt. Exactly.
Matt: Now they’re calling you. “I have some more money to lend you. Do you have a deal in place?” Right?
Brad: Right, right.
Matt: Yup, awesome. So there is how to find your finance people. He’s gone out to network. He’s talked to people and he asks question.
You know, “Who do you know that’s a good property manager?” “ Who do you know that will lend money on deals?” He’s just being resourceful, going out there.
There’s just not a, there’s not a hard, fast way to do it. You do have to get out there and employ some of your people skills and you do have to talk to actual people.
That’s what Brad has done and it has worked very, very well for him. The other thing that you said there, Oh! You sold a property in 13 minutes. How in the hell did you sell a property in 13 minutes?
Brad: Yes, by 12 PM, there was somebody already committed to buying it like 12 grand.
Matt: So how did that person learn about your deal or where did you find the buyer?
Brad: I found the buyer, that was really, really in the beginning, so I got a real estate. It was awesome to another ninja guys. I got, on meetup.com, you can go on there and you can be a member of your area and there’s a mailing list that you just go. You just get the mailing list and just shoe-talk everybody in email.
So I got the deal under contract and anew lender that will lend us from going to the meetings. I sent out the specs and the pictures. You know, I did your property analysis, I’m sorry, your Epic, I don’t know the exact name. But I should know that, I done it so many f^$%ing times.
I did that, I sent that exact out. I was like, “This is the deal.” People right away, I set up the show in for like, I sent it out like on Saturday. I had the show in on Monday.
People right away started emailing me. I was like, “No, it’s not available until 12 o’clock.” So the first person to walk through, no, second person. Sorry, second person to walk through the door.
By the time he got done walking through the house, his boss had called me and said, “The deal is done.” So I called the lender that I had set up and I go, “Hey, here’s a deal done. I’ll lend it.” Right there, 13 minutes.
Matt: Super, super.
Brad: It was a yellow letter deal.
Matt: So I’ve actually used this several times recently as I’m opening up new markets for Cashflowsavvy is I gone to meetup.com, M-E-E-T-U-P.com.
I typed in, “I’m looking for Real Estate Investor Clubs in the Kansas City area or the Cincinnati area” Within five miles, ten miles, 25 miles of that area and all of the Real Estate Investor Clubs will come up in those areas.
What I did is I went in and just joined those clubs. I filled up all the bio, introduced myself; I was very respectful and very direct on what I was looking for to be a member of that club. Then Brad is right, there is a way that once you become a member, some clubs have to accept you some of your membership automatically.
There is a way, I think it’s under communicate tab in the navigation where you can actually get a link to send an email to that will email the entire club.
That’s been very helpful. I’ve got, I don’t know, I’m leaving for Cincinnati tonight. I got over the next four days, I think I have seven meetings set up just from that with property managers and rehabbers and realtors.
I did the same thing in Kansas City. I wasn’t there long enough to set up the meetings but I already got the contacts in my email. I did it from using that service and that’s how Brad found his first buyer and he did it in 13 minutes. So what I will recommend, strongly recommend, is do not use that link to spam. Do not use to sell your goods and wares and your services.
Go there and make sure that it’s relevant to the people that are there, your message. So if people are looking to buy real estate, then go ahead and promote your deal there.
But if they’re looking to buy real estate and you just got, and you just joined the latest, you know, financial advisor, multi-level marketing company, don’t go and ruin that.
You’re going to get kicked out and they’ll be absolutely useless to you. Use it sparingly; use it when you need it, when you actually have a deal and something to sell. So awesome, so Brad, you sold a bunch of other properties since then. How did you find those buyers?
Brad: Just network, people willing to buy. A gentleman that had, a gentleman that had a 1031, I don’t know, change? What the hell…
Matt: 1031 exchange..
Brad: 1031 exchange, I was, in the beginning I was driving the neighbourhood. I called the guy that had a for sale property sign. We just started a conversation. Can we just have a meeting? And then I go, “Okay, as long as you buy.”
He goes, I’ll buy. So he bought me a $2.25 Starbucks Coffee and found out he has 1031 exchange. He needed something and he bought a property there and that was kind of on that. Then, shoot! I don’t know, they find you. I can’t remember it.
Matt: Well, I mean. I don’t know if you’re keeping this a secret right now but I’ll let the cat out of the bag.
Brad: Yeah, you can say.
Matt: Yeah, I’ll say it. I’ve purchased several properties from you because you found the deals and I was like, Wow, those are great deals. Let me compare to those to my Memphis deals and they turned out to be a little bit better than my Memphis deals. So I bought a bunch from you. So this is just another example even with someone that teaches this.
If you’ve got the deal, the money will find you and you start talking about the deal and you mentioned networking a lot. Later on, I’ll let everybody know how you can sell deals to me as well.
I just want to be an optional exit strategy for you and that’s what I’ve been testing out with Brad. It’s been working very well and I’ll let everyone in on that, on how you can do that later.
But you talked about networking and just networking, and just networking, just networking, just networking. Let’s get really specific. Where are you networking and what is your, say your networking schedule look like?
Brad: I network, I network in the beginning two that went to meet up groups. Once you go to meet up groups, you go to meetings twice at night, sorry, at night twice a week.
You meet people, you meet other wholesalers. So at those meetings, they’re very structured and they usually have a topic of discussion. On meet up group, you can feed the topic.
So when you’re there, you’re just talking to people and you spark interest on what they’re doing. So you go, “Hey, now you should give me your card.” “I don’t have card. Let me email you from my phone.”
I don’t have a card yet. You know them and he followed up. He set an appointment to grab a cup of coffee or meet at the property. The art of the follow up is the one of the most important things in this business. Side note: follow up with people.
So we now had coffee. You kind of narrow down on the chasers, buyers looking for this. Are they, as you want to wholesale or are they looking for this until you take note of that.
Then during the day, I’m thinking about going to joining a BNI because it’s during the day. Right now in the state I’m in, I’m teaching people to help me so I’m trying to train them as fast as possible so to help me do the same thing and so I’m going to be in eyes a lot that I go there to meet like probate attorneys, state attorneys.
Matt: So BNI is, I’m familiar with it in networking group. Do you know what it actually stands for?
Brad: Business Networking International.
Matt: Okay, so yeah, it is international. It’s global and there are multiple chapters in every single city. I think it’s the biggest networking community out there.
So BNI is another. I just want to get people to know what BNI was. So you’re meeting state attorneys and stuff like that there, perfect.
Brad: Yeah and one thing good about the probate that it if someone wants to never sell it exclusive to so they don’t allow other professions in that you start with a great relationship with. You know your probate attorneys, divorce attorneys, those guys.
Attorneys, they don’t care about making property. They need to sell a property. If you go in there representing yourself, you’re the man or the female to sell that property to them.
So basically exclusive rights, so that’s a good way. You know those are basically the two main referral things. I know when we went to Kansas City and I have a bunch of people wanting to meet up there. You go to expos, REI expos, talk to people.
Matt: Perfect, awesome. So you introduced the word “ninja” to this conversation and you just mentioned it several times. Give us some other ninja tips that are working for you?
Brad: Okay, very simple thing. The guys on the side of the road that say going up and on there on the freeway or we call highway. They say, “We will work for money.” Alright, put them into work.
Give them an “I buy houses” sign with the phone number on them. Let them stand there all day. Pay them money. Hundred thousand cars might drive up. I don’t know if that many or say 10,000 cars.
When you say everyone has a place that they need to live or they want to live, they’re going to call that number. Ten thousand people, what do you paying the guy? Maybe 20 bucks a day? That’s a ninja trick.
Matt: Okay, so what do you actually, I like the idea. I love it, very resourceful. He’s not standing there with the sign saying “I buy ugly houses”, is he?
Matt: So the bum, they think the bum is going to buy the ugly house?
Brad: No, that’s the law of numbers man.
Matt: But it’s working?
Brad: Yeah, excited to go on a Monday. I’m always working but I’ll let you know. I’ll send you an email and you can update. We started on Monday.
Matt: Alright we’ll keep everybody updated on that. I’m sorry if the word bum was politically incorrect. I was at a loss of words because I was so surprised by the strategy but okay.
So we’ll stay update on that one. I love it. Trying everything, awesome. We’re going to test it. What else? What’s another something else that’s working for you that you come up on your own?
Brad: You go into, what did he say. What week was it? I don’t know. You told me to go into, on Sundays go to open houses and talk to real estate agents. You know, this is what you’re looking for.
So what I did is I contacted real estate agents from every part of the county in Missouri or cities because when, what part of Saint Louis, it’s all rehabs, fix and flips. North side, it’s all buy and hold and the south side is a mix of both.
So what I did is I go locked in with those real estate agents. We need to know who they are. “Hey man. This is what I need. I know you’re from the community. Anything that you get, I mean, don’t hit on the MLS. Let me look at it first.” These agents now what talked so much about you who listen to your podcast so I find it cool.
I just let me see it first. So I’m getting, Before you called I told you. A lady just call me. Literally 10 minutes before 12 o’clock Central.
This time she goes, “Hey Brad.” “Hi Pam.” “I got a lady I showed a couple of houses to but 10 years ago she wanted you to take over her loan on her rental properties. Would you do it?”
Before we we’re coaching, I was like, “You know, why the hell would I assume that…” But you told me to go as long as you analyse the debt disturbance ratio, take over that property. You said it’s not going to cost you anything as long as it’s consumable.
So I trained, not trained. That’s a bad word. I coached her on you know, “Pam, before you call me, I’ll take over. Just make sure that the debt service ratio is exactly what I need.” She called me and took properties just because I went to an open house Their relationship was…
Matt: Right. Super, super. Okay, you got a third one before we wrap this up?
Brad: Be likeable.
Matt: Be likeable.
Brad: Get back to people.
Matt: That’s actually I think one of the more valuable ones. It’s not a ninja trick. It’s actually rather boring and it can be perceived as rah, rah. But just keep in mind that this is a people business.
I’ve coached Brad through this and it worked very well and it has built my business is not coming from place of scarcity, not coming from a place of fear.
Not coming from a place of, here’s the one that kills me. Is when people are more concerned about what you’re making than what they themselves are making. That one drives me nuts.
Don’t be so concerned with someone else’s putting in their pocket. be concerned with how you’re going to profit from it. Not coming from a place where you’re making more than me. That’s not fair.
If you don’t do the deal, neither one of you are going to make anything. That’s me coming from a place of scarcity. Recognize that this is a people business and it’s a two-way street to receive favours.
To receive referrals, to receive a phone call from somebody that says, “Hey, I have a client that has two properties and she just wants to dump them. Will you assume her loan?”
To get those types of calls, the favours have to go the other way also. That’s what make you likeable, when you help other people and you help other people’s businesses and you give.
Giving in a way that you’re not expecting anything in return because you might not get it returned to you by the exact person you gave to but it might come back to you from a person that observed you giving to that person.
You just don’t know and I don’t know if it’s mystics, law of attraction. It’s just God or it’s just the way the Almighty Universe works. I don’t know what’s the cause of it but it does work.
I think that’s probably one of the more powerful things and best things that you can do inside your business is to be likeable. So thanks for bringing that up. You surprised me a lot today Brad.
I learned a few things and you’ve brought up the things that I want to talk about but I feel like I talk about them all the time but you brought them up because they work for you too and that’s why I talk to them all the time. So awesome, thanks for sharing all of your stuff today.
Brad: Appreciate it. I can go on if you want.
Matt: Yeah, let’s go on. So what do you see, Brad, things are going so good for you. You’re an 8-week old real estate investor. What do you see in your future for real estate investing?
Brad: Below the Cashflowsavvy, man. But as far as, the Cashflowsavvy grows back to multiple city.
Matt: What Brad’s talking about is I mentioned my company, Cashflowsavvy, that we have a turnkey and operation refine properties. We rrehab the properties.
We put a tenant in place and then we, the management the people that don’t have time to do the investing themselves. Since Brad and I’ve been working together, he’s actually my project manager in Saint Louis. I have a project manager in each city.
He’s my project in Saint Louis. He basically is my single point of contact to work my teams that I’ve placed in Saint Louis. So he’s talking about, he wants to grow that.
He’s probably going to take over the whole state of Missouri here in a second. But that’s what he meant by that. I didn’t mean to go on that much detail but that’s what he meant. What do you see in your future though? I mean aside from that personally.
Brad: Personally, my goal is to have ten doors or units by the end of the year. Once I take up these two, it’ll be three…
Matt: So how many do you have right now in just eight weeks that you’re owning, that you’re cash flowing.
Matt: You have two, okay. Perfect.
Brad: I have another one under contract.
Matt: That you’re going to keep?
Brad: I haven’t decided yet. I got the deal. I need to sign the money, really. That’s what it is. But I have 10 a month, not a month. That would be awesome. Ten until the end of the year.
I mean ,you just keep up what I’m doing. I guess, I’m 50 hours a week full time now and it doesn’t seem like it because it’s fun. It’s fun as hell. Really, I mean, yeah. I’ve burned more relationships.
Matt: Just do more of what you’re doing really, right?
Brad: Right, I want, yeah. That’s one of my biggest, I want to start helping people like, helping people. Just give out, I mean, it’s Friday in Kansas City. You’re working and we’re watching the game.
One of the gentlemen that I’ve met through one of my call linking, they port a house under contract. I borrowed from Matt’s stuff. I go, “Here’s a seller questionnaire. Here’s the purchase agreement.”
I said, “Follow this accordingly.” It kind of just echoed what you’ve been telling me coached her through it. I put it under contract in like two days. It’s like, those totally transparent. That’s perfect of a system. It’s just, I mean…
Matt: That’s awesome.
Brad: I’ll take a photo and email to you. You can see it, it’s…
Matt: You’re such an overachiever, aren’t you? Not only did do all these deals yourself but you also trained another person then he got his deal first deal under contract inside of eight weeks. I love it, I love it.
Brad: Shawn, I don’t even know, I should know him. I know his first name is Shawn but…
Matt: That’s hilarious. So any words of advice, last parting words for somebody that’s having trouble getting started?
Brad: If you’re, just do it. I mean, just believe and be honest with the people that care about what you say. I mean that’s what I was back then. “Man, I’m struggling.” Because I’m struggling and I don’t know why I’m struggling.
So your wife or your husband just says, “Honey, I know you can do it.” That vote of confidence, that was my favourite kind of the week you know right after our coaching in the beginning.
It was like that vote of confidence that’s really getting over that fear. The confidence that really just propels people, it’s like, Nick, our buddy just says he just put a house under contract whole sale.
I would say I coached him but he goes, “Brad, this is a lot easier than it is. That’s all I’m going to do. I’m making sure it get under contract.”
I was like, “Yeah, dude. You got five days action period if you change your mind.” You know, your fart blows in the wind wrong, you can get out of it. I mean…
Matt: In what, who is talking about Nick is one of the real estate agents that we met in Saint Louis and he’s bringing me deals off the multiple listing service. He’s been bringing me listings.
He just went out and put a deal under contract as principle, as a buyer. He’s sitting there and saying it’s easier to put it under contract himself than it is to actually take the listing.
Not only it is easier to put it under contract as the principle, you’re going to make significantly more money than he would from his real estate commission. So I think that’s awesome.
I didn’t know that. So I didn’t know that Nick done that. That’s awesome. Okay, so that’s cool. You know let’s check back in eight more weeks and see how much further you’ve come along.
We’ve done so much in this eight. I can’t even imagine where you’ll be in eight weeks from now. So congratulations to you, Brad.
Thanks for being here and being so gracious and sharing your ninja tricks. You know, we’ll be back in touch and if, as you come back, you come back on the show, right?
Brad: Yes, yeah, man. Awesome, one big thing, anxiety never goes away. I have an anxiety wherever I go just like what I did in the beginning. It’s just knowing that about yourself that you can achieve it and propelling it to you and motivating you. So that’s my last…
Matt: I love it. Believe in yourself, just believe in yourself and just go do it and you know, I don’t know if you’re going to get exactly what Brad’s got but I know you’re going to get something that you’re going to be happy with. That’s for sure. So Brad, thanks a lot, bud. We will talk soon and take care.
Matt: So, there you go. That’s Brad and that’s what Brad does. He wholesales properties. He takes the profit from his wholesales and then buys and holds.
I mean he already got a little bit of a portfolio building and this is inside of his first 60 days in the business, pretty awesome. Inspiring actually, so who’s next?
Oh, and that actually reminds me as I mentioned earlier, I was Brad’s end buyer on six or seven of his wholesale deals putting, you know, several thousand of dollars into his pocket and I’ve set something up to make it very easy for you to use me as your end buyer as well.
So if you’re just getting started or if your buyer’s list isn’t as responsive or as large as you like it to be yet, I set up a website to put another option inside of your real estate investing tool belt and additional exit strategy or buyer if you will.
To keep it plain and simple English, just an extra buyer on your list. Now if you remember several episodes back, I offered you the opportunity to find buyers and refer them to me for $2,000 per referral through the website EpicProIncome.com.
So I gave you the option to refer buyers to me and I’d give you $2,000 referral fee for that. You know, many of you took me up on that offer. I’ve paid thousands and thousands of dollars in referral fee through that program of, you know, of which one listener’s referred 11 buyers to me to date at $2,000 a pop.
I trust that you can do the math there. That program is still up and running at Epic Pro Income. You can get the details for that there if that’s of interest to you but now, I’ve got the other side of the equation set up for you also.
Actually I got a few more tweaks but it is functional right now and it should be totally complete by the time you hear this episode. But even if it is functional and it’s ready to go then you can go check it out. In the right hand column of this site, you’ll see what I’m buying right now.
Actually it’s not just me that’s buying, it’s, you know if you don’t have a buyer’s list yet, here’s the deal. This is it in a nutshell. I’m giving you access to mine.
I’m giving you access to my buyer’s list though maybe it will be me that buys your deal or I’ll connect you with one of my buyers that will. Here’s the best part, you get to set your own wholesale fee.
You get to set your own wholesale fee as long as the property fits the criteria and the numbers fit the formula, I don’t care how much money you make. I want you to make a crap load.
I don’t care how much you make as long as our numbers fit, you can make as much as you want. I believe Brad has made anywhere, I don’t know, from $3,000 to $11,000 on the deals he sent to me, each deal.
Anywhere from $3,000 to $11,000 per deal, it just depends on the deal that you get. The better the deal you negotiate with your seller, the more the profit that you get to negotiate and keep for yourself.
It’s pretty straightforward and simple. So let’s go ahead and we’ll talk about the criteria. Here’s what my buyers and myself are buying at the moment.
We are buying one to four units. So that’s single family residence then duplexes and triplexes and fourplexes and residential. We need three bedrooms or more for the single family dwellings.
We need two bedrooms or more per unit for the multi-family dwellings. Then we need a market rent of 2% to 4% of the purchase price. That’s really important one.
A market rent of 2% to 4% of the purchase price. So if the property is $50,000, 2% of that is a thousand dollars, right? That’s what the market rent has to be for a $50,000.
That can be section A because you can get a little bit more there or it can be just a regular market rent but we need around 2% to 4% of the purchase price to make that fit our formula.
Some of you that might be a little more experienced might be saying, How in the world are you finding that? Well, who wouldn’t want that? We’re finding them all the time, okay?
They’re not rare. They’re not as rare as you think. You just have to look for them. Then we’re also looking, we’re open to low income areas. We’re okay with that.
The keyword there is “income”. The neighbourhood has to be generating income. I’m not looking for poverty-stricken areas and please, no warzones. I’m not into the warzones either but low income, absolutely okay. These do not have to pristine, luxury properties. Low income is okay. Now here’s where, this is where we’re buying.
We’re buying in: Memphis, Tennessee; of course Saint Louis, Missouri; Kansas City, Missouri; Cincinnati, Ohio; Columbus, Ohio; and Indianapolis, Indiana. Those are our markets.
Those are the six that we are buying right now. We can issue offers and purchase on clothes right away. Now here are some additional details that you must know. This is a must.
That each property you submit must be either your property, must be your property or you must have it under contract. Or something else I’ll be a little flexible on is that if you have a very close relationship with the decision maker to sell that property.
But really, to make it easy, it’s got to be your property, you got to have it under contract. Don’t let get lazy on us, okay? Take the extra step, put it under contract because you’ll make a whole lot more money when you do that.
Also you need to include an estimated rehab cost for rent-ready condition. I need an estimated rehab cost. So that’s new flooring, its paint and then you got to make sure everything inside is updated and working. It doesn’t have to be, you know, imported granite counter tops, it’s just run of the mill, rent-ready materials.
Everything has to work. We need that. Then I need you to include the conservative market rent, what you think the conservative market rent is. Rather than guessing, I would really prefer that if you check with the property manager and got that. It’s going to make it so much easier and streamline in the process, alright?
So that’s what and where we’ll buying right now and if you didn’t get a chance to write it all that down, its okay, no worries. I mean I read all of that just now directly from the website.
You can take a look for yourself at EpicWholeSalers.com. Now when you get there, you’ll also notice that there are about 20 other markets that will be considered.
But if you didn’t hear your market or your location, go check out those other 20 markets. All of that information is on the site there on the homepage in the right hand column. Right there in the bottom you’ll see the rest of the markets that we’re considering.
That’s at EpicWholeSalers.com. Now each time you submit a property, you’re going to want to check that column as the criteria in the markets, they can change frequently.
So here, I’ll start over from the beginning. Here’s how it works, you got to register first, okay? This is a private website. It’s not open to the public.
This is by invitation only and you, my podcast listeners, are invited. I’m not doing any giant email marketing, inviting or any sort of, you know, SEO campaign and inviting whoever wants to come to the market or wants to come to the game and play.
This is for you. If you guys been here with me, you’ve heard how, I’ve taught you how our process work. I’ve taught you how to wholesale. I taught you all kinds of things so I really want to keep this specific for you, okay?
So you’re invited but you do have to register first. There is a nominal fee of $97 to register. But to be clear, I don’t want your money. I do not want your money.
I’m going to tell how I’m going to give you back five times your money in just a minute but I want you to know that there is a specific reason for this fee. And it’s not to produce a profit.
I don’t need the $97, okay? It’s not to generate. It’s not to create an additional income stream for myself. The main reason for this fee is, you know, if you’re consistently submitting deals to me, you will likely be getting some of my time, maybe even a lot of my time.
For example, although Brad is a coaching client of mine, I speak to him three to five times a week discussing his deals outside of his scheduled coaching calls. You know I’m confident that he’s gotten just as much out of those calls where we discuss deals as he has out of his structured calls.
Although I’m open to helping every single one of you, I’m totally open to that. I wouldn’t be here if I weren’t. There just aren’t enough hours in the day for me to help each one of you one-on-one. Here’s where this is coming from specifically.
You know when I opened up EpicProIncome.com about a year ago, that’s where you can refer me a buyer. There was really, like a deluge of people that signed up for that training and they had tons of questions.
Most of those questions were, they might have been good-spirited or well-intended but most of them were hypothetical and/or cynical in nature. Those types of questions are not only a waste of my time, but they are a huge waste of your time too.
I mean whether you know that or not, meaning you can ask an endless of hypothetical question in real estate and it’s going to get you nowhere. With regard to the cynics, sorry. I just don’t have time for you.
I just can’t be bogged down by people so focused on why things won’t work. I must reserve my time to work with the people focused on why things will work. So all the hypothetical and cynical questions that I’ve received, they were and are a waste of my time.
But, you know, back then I did respond to every question and I pr my partner got onto phone with most of them and you know, the sad thing is; this is the second reason, the sad thing is we answered everybody’s questions and still only a dozen or so people took any sort of consistent action.
So I can’t go through that again. I got to learn from my past mistakes. I can’t do that again. I don’t have the time to cater to every single person that has an interest in referring us a deal. I only have time for people with a commitment to wholesale.
So I put up a very small barrier, a very small barrier to keep the interested people away. So I can give my time to the committed, fair? So if you can make a small $97 commitment to wholesaling properties, here’s what I will do.
I’ll make myself available to you as often as I can when it comes to wholesaling specifically. I’ll make myself available to you and your registration fee of $97 times five, that’s $485, that’s going to be refunded to you at the close of your first transaction with us. That will be on top of your wholesaling fee, makes sense?
So it’s like a $485 bonus on your first transaction with us to give you that back just to prove to you that I don’t want the $97, make sense? Okay pretty simple, to present your deals to me and my list of buyers at EpicWholeSalers.com, there’s a one-time $97 registration fee of which I’ll refund to you times five on your first deal.
Now once you registered, you click in the navigation area, “Submit a property” and you simply fill in the blank fields with the property’s information, very simple. Once you filled in all of that info, click “Submit” and here’s what happens.
When you click submit, it triggers a calculation. There’s a calculation that performed behind the scenes using the information that you submitted. There’s no emotion or judgement involved.
It’s simple math formula that’s calculated and it sends my acquisition team an email with the results of that calculation. It tells them exactly what they can buy the property for.
Within 24 hours, you will receive a response. Either the team will accept your offer or the team will reject your offer or they’ll counter your offer.
It’s really simple. It’s very straightforward. It’s ultra black and white. It’s just a math equation that makes the decision. There are no emotions or opinions of value involved. You don’t need to pull comps. It’s just math. If we accept your offer, we will open escrow.
You don’t need any earnest money or anything like that. It will be a true, no money, no credit deal for you. As we’ll close as soon as possible with an all-cash transaction, our cash and none of yours. Got it?
Boom! Then you’ll go ahead and you’ll receive your wholesale fee directly from escrow just like a real live real estate transaction because that’s exactly what it is. You’ll get your pay directly from escrow.
Simple, got it? So if you missed anything that I just covered, go to EpicWholeSalers.com to review. This is a very long episode. So I’m going to cut it short.
That’s it today and a big thanks to Brad Donley for joining us and setting an example of what’s possible if you just focus on consistent and persistent action. Awesome Brad, congratulations and thanks for being with us today.
Until next time, as a very wise person once said, “Action speaks louder than words but not nearly as often.” 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 Do Deals, No Money Required”
Until next time, to your success.
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