Welcome to Monday Mastermind Session! Matt Theriault talks with Kristi Cirtwill, Joe Taylor, and Justin Colby, genuine real estate investors on The Epic Real Estate Investing Show! Learn what are the best sources for off-market deals, how to deal with increasing competition, and what changes in the business we can expect.
What You Will Learn About Monday Mastermind Session – Kristi Cirtwill, Joe Taylor and Justin Colby:
- Meet Kristi Cirtwill, Joe Taylor, and Justin Colby, genuine real estate investors
- How they see new trends and shifts in the market
- What are the best sources for off-market deals
- The advantages of getting into “not so tight” deals
- What is ADU (Accessory Dwelling Unit) and how it can create cash flow
- How to deal with increasing competition in real estate
- Predictions of upcoming changes in the business
- The system or technology they have implemented that has had a significant impact on their business
- Why you should follow up your contacts
- Justin’s approach to cold calling
- The best book they have read in the last 12 months
- Why you should let go of what people think
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Speaker 1: This is The Epic Field Report.
Matt Theriault: Hey Justin, nice to meet you!
Justin Colby: Nice to meet you as well, Matt. Thanks for having me.
Matt: You bet. What market are you in, Justin?
Justin: We’re in the Texas markets, we’re based out of Houston, but we work all over Texas and Alabama.
Matt: Super. Alright, so you got kinda a big territory. I noticed in our Follow Through Friday and Saturday Epic’s private Facebook group that we’ve got, last Friday you got lease-to-purchase sale $8000 in Florida, lease-to-purchase sale $8100 in El Paso. You purchased a home last Sunday now having the highest bidder sale this weekend, crossing the fingers in Texas. And then learning to raise more private money, looking forward to reading more wins. Super, so thanks for sharing, and I’m just curious, let’s pick out one of these deals. Which one was your favorite of that week?
Justin: Oh, probably the highest bidder sale.
Matt: The highest bidder sale, OK. Let’s talk about that, how did you find that deal?
Justin: We’re part of a mastermind group and there was a lady, an unfortunate circumstance, her husband had passed away in November, so he had three assets that he needed to divest, he needed to get rid of, get rid of his estates. So this one needed quite a bit of work, this one needed about 67K in rehab, she owed about 48 on it, we got it for 60, and then just tried the highest bidder sale. One of my partners, both of my partners, they’ve done some highest bidder sales in the past, and so we took a chance on this once since our contractor was going to be about two to three weeks out. [inaudible 00:01:36] Time is money, couldn’t wait, and yeah, we had a two day highest bidder sale from two to 4 on Saturday, two to five on Sunday, everybody wrote their bid down on Sunday and called everybody back and gave everybody another opportunity and I think by 7:30 that night we had sold it for $102000.
Matt: Sweet. Congrats. So you found the deal was basically a referral?
Matt: OK, so you found a referral and then your plan to exit strategy was to flip it and use this highest bidder strategy. Can you explain to me a little bit how that process works for you guys?
Justin: Yeah, so in that sense it was obviously, we got an under contract, bought the property, closed on it, and then we did a ton of marketing, hit our market, flyers, we had a bunch of people passing some things out on that end, lot of social media and we were hoping, hey let’s give it a whirl, we haven’t done this one, my partners haven’t done this one for probably five or six years, they haven’t done the highest bidder sale. And it’s life, but it’s not, because you’re giving everybody an opportunity to once the bidding closes at five, there were sixteen people that bidded, and now we were able to just call them all back and say hey they bid at 85 now, would you like to increase your bid? Yep, ninety, and then just kind of continued from there.
Matt: Got it. So you’re doing this virtually or you’re doing this like on the front lawn of the property?
Justin: Yeah, we were doing this right on the front lawn, and then [inaudible 00:03:02] this particular one, correct.
Matt: So you had all sixteen people standing on the lawn?
Justin: No, we just called them back, there was actually three people that bidded, they stuck around so they kind of watched the process a bit, it was their first time. But then they ended up backing out around that 85 marks, so we had four other people on the line, basically, and within half an hour we had it sold. The individual brought it up to 102 and everybody… the second person that was bidding was sort of about 101, and so they just [00:03:33].
Matt: That’s awesome. So you purchased it for what was it 86 you said?
Matt: Sixty! And you sold it for 101?
Matt: 102! This was a good day, yeah?
Justin: Yeah it was a great day.
Matt: That’s fantastic. So your biggest lesson learned in this transaction would be?
Justin: You know what, it was nerve-wracking because we’re holding on to the property, put some money into it, you know cleaned it out, got rid of carpets, had a nice smell. You know basically doing an open house, just on the wholesaling side of it. But biggest lesson learned, probably let’s find another deal and see how quickly they can actually go, right?
Matt: That’s awesome, that’s awesome. How do you plan on celebrating?
Justin: My one partner, they got a couple little kids so we’re actually gonna go to a water park here before we fly back to Canada, so.
Matt: That’s fantastic. I noticed that you sounded like my friends in Fargo. I was like, how did you end up in Texas?
Justin: My wife, my wife got a good job offer[inaudible 00:04:31] she’s an engineer. And so we love traveling around and, yeah, she took the job opportunity here in Houston.
Matt: That’s awesome.
Justin: I got out of the rat race and jumped into this real estate gig full time.
Matt: Perfect. Well congratulations on your success, thanks for sharing with us, and if you need anything let us know, alright?
Justin: Excellent. Perfect Matt, I appreciate it and look forward to working with you here.
Matt: Perfect, have a good day.
Justin: You too.
Speaker 1: This is Theriault Media.
Matt: Hey welcome to The Epic Real Estate Investing Show, glad you made it, got a really good show for you today, something new, something different. Just made the executive decision now, I’m gonna call it the Monday Mastermind Session here on the show, I’m joined by three of my colleagues. I just kinda went through my old database and said let’s bring up some real active real estate investors that are really doing deals, doing business, and let’s just get on the podcast and jam, is the most appropriate word. So, welcome. I’ve got Mr. Joseph Taylor, Mr. Justin Colby, and Miss Kristi, welcome to the show guys.
Justin: [inaudible 00:05:46] thanks for having us.
Matt: Yeah, you bet. So I guess let’s go around and you can introduce yourself a little bit, what market you work in and a little bit about your current real estate business. Joe, you can go ahead and start if you like.
Joseph Taylor: I’m Joseph Taylor out of Portland Oregon metro area, we do wholesaling, we do some [inaudible 00:06:02] and we do some custom new build houses.
Matt: Nice. Kristi.
Kristi Cirtwill: I’m Kristi Cirtwill, I live in Los Angeles and currently fixing and flipping and I keep some as rentals as well.
Matt: Fantastic. Justin?
Justin: Yeah, Justin, I’m out of Phoenix, I’m currently wholesaling, wholetaling, and rehabbing as we speak.
Matt: Fantastic. As we speak. You’re doing it right now?
Justin: Well, no, I’m physically not doing it, haven’t really done that in a long time.
Matt: That’s awesome, we’ll talk about that in a sec. So, I think one thing that’s on the top of everybody’s mind right now is the market as it gets a little bit more competitive, some of the marking challenges aren’t working as the way they used to, and we’re doing and trying different things. So, I don’t know, could you kinda share with me what’s your best source of off-market deals at the moment, Kristi?
Kristi: I work 100% off a referral, and this is really changed from a few years ago, I used to work mostly off the MLS and through wholesalers. I used to get 90% of my stuff that way, up until about 2013, 14, and then I realized that wasn’t the way to find properties anymore. So, I’ve always been a good networker, but I really just ramped that up and then over the last three years at least I’ve gotten I think almost every single deal just from word of mouth from networking.
Matt: Networking. Is there a specific category of person or a profession that’s sending you the referrals?
Kristi: No, not one in particular. I would say I still get about a third of my deals from realtors, but those deals never actually make the MLS. So it’s situations where it could be somebody who just doesn’t want a real estate sign in their yard and they don’t want fifty real estate investors traipsing through their house, they just want a fair price and I come in and I’m able just to work something with the seller or with the real estate agent. So, yeah, other professions that refer me are different attorneys, I’ve made a good connection with a business attorney who just is well connected. And I used to be in a networking group BNI, I’m now in a group called Provisors, but it doesn’t matter which one you join, it’s just getting yourself out there and having people know what you do.
Matt: Got it, good, thanks for sharing. Justin, what’s your best source of deals right now off the market?
Justin: Yeah, so I’ve become kind of a marketing expert, that’s really where I’m going. I go six marketing strategies. I’ve always used direct mail as long as I can ever remember, but I have incorporated banner signs over the last year. I’m in Phoenix and so everyone in the world would argue banner signs so longer work, I’m here to tell you they still do as long as you use the right strategy. I’m really heavily invested in PPC right now. I’ve gone through four different companies, I’ve spent well over $100,000 to get zero deals, I’ve finally have found a company in the first five weeks we caught three deals with this company I’m working with, so I’m like all in right now on PPC. I have a cold calling floor, I have twelve guys in my office every day cold calling from 9:00 am to 1:00 pm and then we have a door knocking street team. So, I really try to surround people on every angle and then we drop RBMs which our friend Shawn developed which is bringing us voicemails. So I’m going from door knocking, cold calling, to direct mail to rings voicemail to PVC, so I’m surrounding everybody because in [inaudible 00:09:49] county there’s really only 300,000 homes I have that I would want to buy, so I attack them on every angle. So I’m really focused on all six of those marketing dollars.
Matt: Got it. Yeah, the whole cold calling thing is really making a comeback and it’s the big buzz word right now. What lists or who are you actually cold calling?
Justin: So I do the same list I send direct mail to, so I basically do a property avatar. A lot of people will talk about the distress list, well that’s typically personal, the person. So I go after the property, so like build in 1995 and older, they must’ve lived in it for seven years, it needs to have an assessed value of $300,000 or less and owner on or absentee, I don’t really care, and what was the last thing? I think that was about it, because I just want the property, because all those distress situations that the person’s going through, well they own those properties, so for me, there’s roughly 300,000 people that every year I send mail to every time and I cold call thousands and thousands of times.
Matt: Right, right. Awesome. Go ahead. Joe, your favorite or best resource for off-market deals at the moment?
Joseph: We’re still getting them, you know we’ve actively been involved with Paperclick for about three years that [inaudible 00:11:10] on that, like Justin, said. But competition and that, a lot of people, you know margins are getting smaller on that but they’re still turning deals over. My primary source of volume of deals is still coming from direct mail, it’s a list of stacking software that I developed, we stack a lot of the pain point lists, that and that narrows it down to a specified highly-targeted titlist, where [inaudible 00:11:37] about 1.3 houses and it allows me to dial that down to about 46,000 houses that I have to hit continuously. So, we’ve cut our marketing costs way back, last year I used to about 50-60 thousand mail pieces a month. I barely hit 160000 mail pieces for the whole year this year, so we’re still knocking them down direct mail. And honestly, that’s probably the two best sources I got other than one-off here and there. We just started cold-calling two weeks ago, got a lot of leads off that, but now we gotta convert those so I don’t have enough history to really speak on that.
Matt: Got it. Cool thanks. Its funny that you guys both mentioned PPC and we’ve tried that for a really long time and we jumped and hopped from probably three or four different marketing companies to do that for us and we brought it in-house and we had very much kind of a similar situation as you had Justin, that all of a sudden it started to pop. It’d be interesting to compare like what’s the big difference there. Why does it work for some people and not others, and going through the same exact market it is a science, right?
Justin: Yeah, I think you know just to bring that up, I literally tried four companies over the last two years. Like I said, hundreds of thousands of dollars down the toilet. So in my market I figured Phoenix is just too tough, but that was my own mindset, right, I just romp whatever, because I found this company now and literally within the first week we got our first deal, within three weeks we got two deals, and within the five weeks we had three deals. I’m like a baboon when it comes to it, right, you tell me to go do my own google ad works? Not gonna happen. So I don’t know, but it is interesting that all these different competitors can be in the same space but one’s gonna completely outperform the other. Very interesting.
Matt: Yep. Absolutely. So, yeah based on it, this might lead to our next question, and KristiI’ll ask you first. What trend are you seeing in your business or your market that has you either excited or concerned and how is it changing the way you operate?
Kristi: I always am excited and I am always concerned.
Justin: I love it.
Kristi: I would say right now, I always have a concern about where is the market headed. And, you know I think I try to litigate some of that risk just by buying properly from the beginning. You know I try not to get into deals that are too tight, that way if the market adjusts a little bit down I am still kind of in my safety zone, I’m not gonna lose my shirt on just working off too tight of a market. So I’m always aware of that and trying to be conscious of that.
The thing I’m excited about right now is I’m actually building a muse and the state made a law earlier on this year to allow, every city has to allow you to build [inaudible 00:14:29]. So basically you’re building in some cases an entire second house on a single family, R-1 zone property. So I don’t think this will last, that’s why to add cash flow to my property I’m building these and actually keeping them as rentals. So that’s something that, you know, more cash flow.
Matt: No, explain that. So every R-1 for a period of time right now in the state of California, you can actually build a second unit?
Kristi: Yes. So, each city has their own specific guidelines to, you know you have to call[inaudible 00:15:08] certain setbacks, you know sometimes you can’t leave a certain percentage of the main house in square feet, sometimes they can be detached, sometimes they can be attached to the house, sometimes these can be overtop of a garage. For anybody listening I should clarify what ADU is, it’s Accessory Dwelling Unit, it’s basically like a granny suite I think is what they used to be called. So yeah, for what I can build them for and for the [inaudible 00:15:41] cash flow it provides or for the cost it’s working out well, so far. So we’ll see.
Matt: Yeah. I’d say so with the way that rents have gone up, especially in southern California in the last decade, I can imagine. Awesome, so you’ve figured out how to cash flow in California, I like it.
Kristi: Yeah, now I wouldn’t say it’s a lot of cash flow because that really doesn’t exist in California much, but I have a long-term plan for these. It’s not a get rich quick overnight, its get them to where at least PITI is covered and down the road, I’ve got some nice assets.
Matt: Of course, yeah. Right. Super, so, Joe, what trend are you seeing in your business or the market that has you concerned or excited?
Joseph: Just the volume of competition, you know it’s increasing so much, we had to start looking at other solutions. Started doing this path about seven months ago, we actually are down in the county now pulling all the data stats, everything from the recorder’s offices, leans, judgments, we’re getting probate, foreclosures, six, eight months before it’s released to the general public. We’ve basically been downloading massive amounts of data and having to sift through that and figure out how to follow it and so we’re able to, you know, again back to the direct mail piece, we’re able to target a lot more niche specified [inaudible 00:17:05] if you will. And so that’s one thing that I’m excited about because my marketing cost is going to be next to nothing. We’re able to cut down marketing costs down substantially, but we’ve generated about four to 500000 dollars at this point in revenue off of those, and we’re pretty much just testing the waters still, trying to develop that system. So I imagine another four or five months we should have something perfected on that and should have some definite, phenomenal ROI off of it.
Joseph: But, no that’s one of the things that just kind of sucks is you’ve got so much competition, and this isn’t just my area, it’s everywhere you know everybody’s got it, I know Justin’s got about five times as much as I do. The same deal in California, right? So the volume of people entering the marketplace is scary, the fact that the margins are shrinking down all the way across the board, that’s always scary. You know we’re used to 40 and 50000 dollar margins and now we’re pushing 30’s. So it’s going down slowly. Just trying to get ahead of the game, I’m still a foreclosure guy I have been for 15 years. I can’t wait for that market to blow up again, but I’m still waiting for it to right? Everybody keeps talking about the market crash, all this shadow inventory still hanging out there, it’s still coming I think.
Joseph: That’s kinda what it does.
Matt: Interesting. So you were saying, I kinda noticed a couple things because it seems a lot of people are going back to more of the traditional way that they used to build their real estate investing business and whether you’re knocking on doors, you’re cold calling, you’re going down to the courthouse and actually getting dirty and pulling that information out from the source. And did you say, are you mailing those people? Is that how the cost is coming down? I didn’t understand how the marketing cost is coming down?
Joseph: Yeah, so instead of going the broad spectrum we’re downloading all that data and then we’re stacking it and then we’re marketing it off of that stack. For instance, you know you got HOAlings, obviously, people are going to stop paying their HOAlings and their taxes before they quit paying their mortgage home, right? So you start seeing these things pile up and next thing you know you got four or five pinpoints that you stack and it’s a much more highly targeted list than just pulling a water shutoff notice or something like that.
Matt: Right, right. A lot less mailing volume is what you’re saving. Got it. I wasn’t clear on it in the beginning. Cool. Justin, what are you noticing? What trend is happening in your business or market?
Justin: Yeah I think there’s some… I mean the trend truly in Phoenix is still appreciating, and it’s nuts and I think, but both Kristi and Joe kind of talked about this is like there’s this inevitable bubble it’s happening, it’s somewhere, twelve months, eighteen months, twenty-five, I don’t know. It just can’t continue to exist this way, its just outrageous. Which is fine, I’m taking huge advantage of it while it’s happening.
What I look forward to, and kinda like Joe’s, he’s a foreclosure guy. Well, I want to go build massive wealth, I mean you’re huge on this Matt. And so, when that happens in a city like Phoenix you have the opportunity to go literally pennies on the dollar. So I don’t want to say I’m looking forward to a crash, but I’m kinda looking forward to a crash because I know I can still develop leads so then I just change my exit strategies. So right now I’m very, very, very selective on rehabs, like uber selective. I will still wholesale which is, I’ll buy it and not rehab it and put it on the MLS. I’ll still do that from time to time. I’m primarily only wholesaling, but I’m kind of looking forward to this change because to Joe’s point, the players who are real players in the market, the real investors that have been around, they’re gonna stay around, they’ll be there. And a lot of the other quote-unquote competition are people that are aiming for the same assets, I don’t believe they’re going to be able to fight the long fight and I think that’s to my advantage, right.
And so some of it is a blessing and a curse. I mean, we’re making huge profits, we’re doing a bunch of deals every month because of the market. But we can also flip strategies and remove a lot of this competition as the market starts going south. I think it’s a blessing and a curse and kind of excited for all of it, right. Change to me, I’ve always done well in change, I’ve always flourished in change, and so I’m kinda looking forward to something like that.
Matt: Got it. So, speaking of change, I mean we’re at the end of a cycle, I don’t know at the end, but that’s certainly a long one, you know, typically it’s seven, eight years. I think we’re going on a decade, well we’re starting our 11th year. How big of a change do you think it’s gonna be and do you have an idea of when you think it might happen?
Justin: Yeah, I think we’ll probably be safe through this year. Just, there’s no real signs for the real estate economy in Phoenix to really take a hit. Now anything can happen as we saw, I think going into next year, I think there should be some certain things. The commercial loans, the car loans, there’s just stuff out there floating that is like when’s this whole thing gonna pop. So I think into next year you need to just be a little bit more hesitant on rehabbing because I’ve been one of those people that I caught my hand in the cookie jar. I was rehabbing nine homes at one time, the music goes off, you know luckily we kind of walked out of that scenario broken even, because we bought so well. But nonetheless, it’ll be an interesting thing to see as that starts to shut down and what happens. I don’t think the crash like happened back in 2006 and seven, I don’t believe they’ll go that far, I think Phoenix will stop appreciating and I think it’ll adjust to some sort of normalcy, truth be told. And it might take a little bit of hit, you know if it takes a 15 to 20% hit, I could see that happening. I don’t think it’s gonna be a 50 to 70% hit like we saw back in, you know ’05, ’06, ’07. I don’t think that’s coming.
Matt: Yeah I tend to agree with you. Kristi, what do you think? Do you have any bold predictions?
Kristi: Yeah I agree with that as well. I listened to economists in 2012 and 13 when the gettin’ was good and these guys were saying oh the crash is coming soon and it’s gonna be twice as bad as it was in 2007. And I was probably way too conservative, but this was my first round in the market, I’ve only been buying in southern California since 2008. And I didn’t know to make my own judgment on that, so I was being conservative even back then. And so here we are, we haven’t even had a dip yet and the inventory is so low and there’s still qualified buyers, you have to be able to qualify to get a loan to buy a property these days, not like 2005 where you could just make up your income.
Kristi: And interest rates are still low, and [inaudible 00:23:48] are good, so all of these things are just causing us to be kind of stable. We have had a slight dip here, so I’m just kind of keeping an eye out on that, but I think the rest of this year we might just kind of ride long and we might see a bit more of a dip next year. But nothing major, in my mind, on the horizon.
Matt: Yeah I heard Bruce Norris, he said this a while ago and he continues to say it, this last decade with the lending guidelines being so strict that the banks have probably written the best book of business for over a decade than they’ve ever written. So the potential for that, for what caused the crash last time probably won’t happen this time, but it might be something else that does it.
Kristi: There is gonna be a dip, there’s no doubt about it, because there always is, every ten years or so. So its just a matter of when that’s gonna take place.
Joseph: My prediction Matt is, I agree with you, I think it’s gonna be an advance, I don’t think its gonna be the same scenario where it was just bad underwriting and appraisers bumping values and stuff like that this time. I think it’s gonna be another life event, you know, could be Korea sending off a missile, whatever the case is, it’s gonna [inaudible 00:24:57] that state. I mean, I hope it’s not anything tragic like that, I agree it’s [inaudible 00:25:05] everywhere you go, with the end stuff that’s like, you know I’m tired of paying 350 for stuff I used to pay eighty grand for, right? You know, where’s the good ol’ days? Let’s get back to that! I’m looking forward to that price reset because I know what it brings, it brings a lot of people leaving the industry and there’s just more [inaudible 00:25:21] for the pickin’s, you know. In good markets, we all make money, in downside markets we kill it.
Matt: Right, right. You know I heard a really interesting take the other day on the future, and not on the just real estate but the overall economy. And they were sharing that they were thinking that now that Trump is president and he’s the business guy, he’s the economy guy that as long as he’s in office and it’s on his watch, he’s gonna do everything in his power to prevent any sort of crash or adjustment. He may potentially leverage the entire future of our country on it to make sure it doesn’t happen on his watch, but I thought that was really interesting. He said so we’ve got a good two more years at least to really go out and crush it before we had to be scared and I was like that’s an interesting take, I never thought of it.
Matt: So let’s see, Kristi what system or technology have you implemented in the last twelve months that’s had the biggest impact on your business?
Kristi: Getting better at my follow up, because I feel that it’s nice to meet someone in person that you think might be able to get you a referral, but it’s another thing to have them remember you after the meeting’s over. So, I’ve actually ramped up my social media in terms of Facebook postings, LinkedIn postings, Instagram, and you know with my specialty being buying boarded houses, it’s easy to put lots of interesting pictures on there to kind of keep you at people’s top of mind.
Matt: Got it.
Kristi: That’s something I’ve done just in between meeting people in person, is connecting with them online and several other touches so that they remember you.
Matt: So far so, multiple touches and you’re using social media for that mostly?
Matt: Awesome. Justin, what new system or technology have you implemented in the last year?
Justin: Yeah we started last year into cold calling and it has been an absolute game changer. It’s funny because that’s how I got started in the industry, because I was dead broke, so I basically had to cold call.
Joseph: That’s how all of us with no money started.
Justin: Right? Right? I don’t know where it came from, but I was like why aren’t we doing this? Because we were doing all this other stuff and blowing so much money on PBC and all this stuff. And so we dove into it late last year in October, so I’m kinda coming up on a year and it has been a flat out game changer. We have twelve guys in the office every day, any day we have anywhere from 25 to 100 beats come through our door of people that are interested in the selling. Which is very, very hard to do with the other types of strategies. And so, the difference being it’s a different tale, meaning the speed of what PBC, or even the speed of what direct mail does, is not the same speed of cold calling. You have a lot more follow up, which is what Kristi was talking about. But when you get them, they pop and they pop big. So that’s been my biggest value, I’m most excited about right now is what’s going on PBC, because they pop quick, they’re motivated, and I’m excited about it. So my excitement level’s highest with PBC, but cold calling has been an absolute game-changer over the year.
Matt: Interesting, yeah. I think the do-not-call list, it scared everybody from cold calling, we all kind of forgot about it, and now everybody’s doing it again. Are you paying any mind to the DNC list?
Justin: So because I use Mojo, so I scrub it against my own and then I scrub it in Mojo, right. And so the hope would be it does its job. Now, we absolutely still call people that get pissed and irate. The thing that they have to realize is that more often than not they have their home phone number on the DNC, but we got their cell phone number. Well, that’s not on the DNC. But they think it is, right, so they cause a storm about it. But the reality is, hey pal you need to put all your phone numbers on the DNC and it won’t come up, it won’t pass through our level. So, I don’t worry about it, I mean those guys are really going after the big dogs that do a lot of robot-dialing and they’re dialing 50000 people a day. That’s what I believe they’re probably more interested in, however, it’s something to be aware of. I don’t just brush it off, I’m aware of it, I just don’t think it’s going to be too big of an issue.
Matt: Yeah, no I don’t think so.
Joseph: Though there’s some heavy fines too at 7500 bucks a shot, so.
Justin: There’s no doubt. Yeah, it’s expensive. We do roughly six to ten thousand calls a day, every day, I would say 2% of the calls we make are people that come up with I’m pissed, how could you get ahold of me, yadda yadda. It is very, very minute.
Matt: Hmm. So what is your actual approach of taking this cold call?
Justin: It is very, I keep it simple, right. So if I were to call you, hey Matt my name is Justin, I’m actually looking to buy a home in the area I love your neighborhood, are you interested in selling or thinking about receiving a cash offer anytime in the next 12 months?
So first I would say is this Matt? You would say yeah this is Matt. That to me is what I call a contact because I’m trying to measure the data. Is the data good? So if I say is this Matt, you say this is Matt, boom, that’s a contact. The next words out of your mouth might be f-off. That doesn’t mean the data is not good, it means the data’s good but you’re not [inaudible 00:30:46]. So then I wanna make sure that you’re willing to sell or at least open to having a conversation. Then I would ask three questions, when are you looking to sell, why are you looking to sell, how much do you want? At that moment I get those answers and I give it to my acquisition guys. Because from that point I want Michael Jordan’s I like to call them, I want them with the ball because now it’s game time. Now it’s all on the line. So that’s the basics. Are you looking to sell? Yes. When are you looking to sell, why and how much. Got it. Given to the acquisitioner.
Matt: Got it, is that a straight handoff or is that something that they’d call back later?
Justin: Its an option-handoff. They have to get, so I put requirements on my guys, they get a bonus if they hit their requirements, they get reduced pay if they don’t, but they have an hour to get to that person. So they have to get to that person in the first hour, right. So I have all these kind of guidelines kinda based around pay and bousing people based on how quickly they can do what they need to get done.
Matt: Sweet, sweet. Yeah, the best way to motivate is to compensate, right?
Matt: Joe, what system or technology have you implemented in the past 12 months that’s had a big impact on your business? Maybe you already said it.
Joseph: Yeah, just a list digging software that’s [inaudible 00:32:02] and we started implementing in telemarketing and again that’s too fresh to get any results on that, so.
Matt: Got it. So, a lot of great information, thanks for being so gracious with your sharing. What’s the best book you’ve read in the last 12 months and what did you find most valuable about it?
Joseph: I actually think Justin referred this one to me, but it’s Never Split the Difference. Justin did send me that one, that was a good book.
Matt: Never Split the Difference.
Justin: Yeah, it’s helped me nail down what my cost to sales training with my guys, these guys, to try to keep them motivated, keep them going and get them to hold their ground when they smell blood. So that’s kept the margins increase for the most part.
Matt: Right. Kristi, the best book you read in the last 12 months and what was the biggest impact it had on your business?
Kristi: I’ve ordered about three and I haven’t started reading any of them yet, and I haven’t read one for a while.
Matt: It’s funny I’ve got Never Split the Difference in my Audible account and it’s just sitting there, been looking at me for over a year. Got it, which three did you pick up?
Kristi: It’s on my dresser, I haven’t even opened them yet.
Matt: Super impactful!
Kristi: Well we’re on the topic of sales and cold calls, I think this might be relevant. There was a Dale Carnagey book and it was the Sales Advantage, I believe it was called. And that had some really good sales tips in it. So, just the way you say things, selling to the person the way they want to hear the information, not the way you wanna tell it to them. So that was a good book.
Matt: Sales Advantage by Dale Carnagey?
Matt: Awesome. Justin, the best book you read in the last 12 months and what did you find most valuable about it?
Justin: Oh that’s good, so I read a lot. I’m gonna go business and then I’ll go personal. One that I’ve really resonated with recently is Four Disciplines of Execution. I’ve probably read it three times, great, great book. I’ll give Joe a recommendation; read Pre-Suasion. Its kinda like reading radio instructions, if you get excited about that kind of stuff. But man, sales, persuasion, Pre-Suasion by like Cialdini, awesome, awesome book.
Justin: And then, can I cuss on here my guy?
Justin: So the book title is Un-Fuck Yourself.
Joseph: Oh, I have that one in my Audible too. But go ahead, tell me about it.
Justin: It is awesome. So the subtle art of not giving a fuck was really big for me over the last year, really big, right. And in our space of the info space, being a personality that you can get a lot of people, you know we call them trolls so to speak. So I had to learn how to, you know the subtle art of not giving a fuck. But then you also have to learn how to un-fuck yourself. I don’t mean to be cussing up on your podcast, like this, but these are literally the names…
Matt: Hey it’s the title of the book, what are you gonna do?
Justin: What am I gonna do? Who am I? I can’t judge it, right. So anyways, great books, I gave you for business and personal. They’re just awesome.
Matt: That’s awesome. So, out of one of those f-word books, what’s something actually practical you took away from it?
Justin: I think the biggest thing, and I keep talking about it, is to really, really let go of what people think. It’s the number one reason why people get stuck in fear or anxiety or simply don’t do, is because they’re so worried about what their family and friends and, you know the outside world is gonna think. To the point where they won’t post things on social media, even though they want to, they won’t bring up an opinion they feel passionate about, because they feel like someone’s gonna judge them for it, you know. So, it’s just been a huge thing for me to get out of my own way, is just really don’t care. Because are they gonna give you a paycheck? Are their opinions gonna cut me a check? Not at all. Especially in that business face, so I need to do what’s right for me and my family. That was a huge, huge takeaway that both books really harped on, is it is one of the largest reasons people don’t do.
Matt: Yep. Yep, I say it all the time that your addiction to looking good is keeping you from everything that you want. And people just, they want to look good, or they just wanna not look bad and that keeps them away from everything. So super, thanks, guys!Joe, if someone wanted to get in touch with you what would be the best way for them to do that?
Joseph: Well they can hit me up on my email, that’s probably the easiest. It’s letter J then Taylor, T-A-Y-L-O-R at edxrenovations.com
Matt: [email protected] Super. Justin, what’s the best way for someone to get in touch with you if they wanted to?
Justin: I’m driving everyone to social media now, I’m making this a really big play going into next year. So @thejustincolby on Instagram. Or Justin Colby on Facebook. My personal account already has 5000 friends, so you have to find my public figure account. Justin Colby, message me, I will reply and we can go from there.
Matt: Awesome. @thejustincolby I like it. Kristi if someone wanted to get in touch with you what would be the best way for them to do that?
Kristi: Facebook for me, just find me on Facebook. My personal page or you can email me at [email protected].
Matt: Hoarder Homes?
Justin: I like it.
Matt: It’s got a ring to it. Super, well thanks and let’s stay in touch, let’s do this again, sound good?
Perfect, so until next week God bless to your success I’m Matt Theriault.