Be consistent with your money-making activities and don’t get frustrated if they’re not bringing you money right away. They do so directly and indirectly. Don’t discount the indirect part of it as your real estate success might lie in there. Stay with us to hear how that happened to Matt and his clients, why you should share your real estate interests and activities right from the start, and how you can benefit from perusing your strategies even if they don’t yield expected results.
What You Will Learn About Real Estate Success Tip You Won’t Hear Anywhere Else:
- The issues our clients had with their money-making activities
- The drought that followed Matt’s 1st deal and how he dealt with it
- How our clients found the deals they closed
- Matt’s activities that brought him the additional $100,000 during the 8 months of struggle
- How your main strategies can make you money indirectly
- The big mistake that the real estate newcomers make that can cost them a deal
- Why you should pursue your money-making activities even if they seem in vain
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- Grab my book, Epic Freedom ($1)
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- Join our Badass Investor Program and be a Case Study
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- Also, check these out:
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Speaker 1: This is Theriault Media.
Matt Theriault: Hello, and welcome to The Epic Real Estate Investing show. This is the show where everyday people come to get the tips, strategies, and tactics to escape the rat race using real estate, and if you’re just getting started, if you’re still looking to take down that very first deal, really glad that our paths have crossed, because I am working with a small group of investors inside of our pilot program, your first deal, and if you’d like to join us, you may, at freerealestateinvestingcourse.com, and you can learn how to get your first or next deal using little to no money. You can get full access for the one-time price of free. It’s actually better than free. It’s the better-than-free real estate investing course, as I’m going to pay you to complete the course. It feels like I’m paying people every single day these days, so if you’d like to join us, you may, at freerealestateinvestingcourse.com.
All righty, so speaking of the free course, this past week I had two separate conversations with clients, one that’s actively involved in the free course, and another one that is one of my private REI Ace clients, and the first was asking for help, because although she has closed her very first deal, she’s a little frustrated, because of all the time that she’s been putting into cold calling landlords, she hasn’t gotten a deal from that activity yet, and that’s what she’s been mostly focused on, and she just hasn’t gotten a deal from there, but she did get a deal then.
And then my private client has been working direct mail pretty intensely, with not much to show for it yet either, but he has closed two deals and has two new deals under contract, and two of those came from referral, and one came from a conversation he was having with a stranger at a restaurant, and the fourth came from a friend that messaged him on Facebook. And he too is a little frustrated, because he’s thinking about stopping doing direct mail because it’s not working, right? He hasn’t gotten any deals from direct mail. All of the deals have come from other sources, like on accident almost.
So, I was having this conversation. I actually had to have the … or didn’t have to, but I got to have the same conversation with both of them, where I got to tell my story twice, my real story, my real story of how it was for me in the beginning, because after my very first deal, which I got pretty quickly, but after that first deal, I had like an eight-month drought before I closed my second deal, and really just threw severe desperation, I came up with this wild and crazy idea and started calling classified ads, because I woke up one day and noticed that everything I need is right there in the classifieds. You know, I’ve got a section of people that want to sell real estate and I’ve got another section of people that want to buy it, and I was thinking all I have to do is call both sections, and I’ll do this every single day, I’ll start making a list of what everybody wants and what everybody has, and then try and become a matchmaker. The intent was to carve out a referral fee for myself for both sides, or from both sides.
And I was like, “Wow, this is genius. How come nobody else has ever thought of this?” Right? And I was thinking that old saying that desperation is the mother of invention, right? And boy, I was desperate. So, in hindsight, it absolutely was genius, but during the eight months that I practiced it, it certainly did not feel like a genius, and here’s why. You see, in eight months, I was only able to close four of these referral type transactions, these referral fee type transactions that I set up for myself. It was something, I don’t know, it was maybe like 1,500 bucks a site, it was like $3,000 per deal, give or take a few bucks, so I think in eight months, I barely made $10,000 from classified ads, so 10,000 bucks sounds like a good chunk of money, but spread out over eight months, it’s nothing, right? It’s absolutely nothing.
And I would take these deals, I’d go and I’d promote them, these classified ad properties, I’d promote them at the REIA meetings, because I was having a tough time becoming that matchmaker, so I started selling the properties that way, at REIA meetings. I’d create my own flyer, put my own contact information on them, and go to REIA meetings, and sell them that way. But what happened was, I did make more than $100,000, and started my rental portfolio, through other means during that same period, during those same eight months, so I made 10 grand from the actual activity, but I made 100 grand from outside activities. And what I’m getting at, I don’t know if you’re seeing a pattern or not yet, I’ll certainly point it out to you, but you might be starting to recognize what I’m saying, but I’m going to show you how you can use this to your advantage as well, in just a sec.
But let’s go back to my free course client. When I asked where did the referral for her deal come from, she had said that someone had seen her Facebook post weeks ago and shared her information with them, and that’s where that deal came from. Then I asked my private client, my private REI Ace client, about where his referrals came from, those four deals came from, and he said one had come from another wholesaler that he had met, where they were commiserating over the performance of their direct mail. They were talking about what’s the bestselling … or the best list to send to, the best mailing piece to send to that list, and you know, they bonded that way. Their misery had brought them together, so that was his first deal.
The second one came from a craigslist ad that was referred to him by the neighbor. He’d called somebody up and it wasn’t a deal for them, but they later called back and referred their neighbor to him. So that was another one. Then the other referral, he got at the restaurant that I was talking about. That was the result of someone overhearing him complain to his wife about the results he’s been getting from his direct mail. Then the fourth one came from a friend that messaged him on Facebook, and then I’d asked him, “Well, how did your friend know that you could potentially help?” And he says, “I think I told him the last time we talked or something like that, about what I was doing these days.”
So, that’s where all of his four deals came from. None of them came from direct mail. So I only made a few bucks from that classified ad strategy I came up with, but where did that extra $100,000 come up for me? Where did that come from? Well, 60 grand came from a business associate who had secured a bundle of properties from an investor in a very small town in Illinois, and then he asked me to help sell them for him, which I did, and I made a good chunk of money that way. And I also got to keep a few of those properties for myself, and that started my passive income portfolio, my income property portfolio.
Then, 30 grand came from a lady that approached me at the REIA event, after I had just shared one of those classified deals that I was promoting because every time they had the needs and … what was it? The Wants and Haves section, I’d stand up in the front of the room with one of those flyers of those properties, and I’d promote it. That’s how I sold a few of those. But she’d come up to me after and said, “I’m not interested in your properties, but I do have three properties of my own that are underwater, and I need help with short-selling them.” She wanted to dump them, but she owed more on them than what they were actually worth, and she needed help doing that. Then another lady came up to me, probably a few weeks later, come up to me at that same event, and she had said that she had seen me there every single week. She could tell I knew what I was doing, and she had $100,000 to invest, and if I would show her how, she’d be happy to split that deal with me. So I did. We made 20 grand on that. I got half of that, so I put another 10 grand in my pocket.
So give or take, it was about 60, 30, 10 is kind of how that broke out, or broke down, and what’s funny though is that last lady that gave me the $100,000 to use, to show her how everything works, and I made 10 grand from that, she’s still a private money lender to me today, and a really good one. She’s introduced me to her friends, and that’s why we’ve never really had an issue with private money, all because of that one person that I met, her.
So, let me ask you. What are you starting to notice? What’s coming up for you here? Well, here’s what I want you to recognize. I want you to recognize the activity, the right activity, the money-making activities. You see, not only do those money-making activities make money directly. Even more so, it makes much more money indirectly, and really, what happens is the activity attracts opportunity. Because you’re in action, the opportunity is attracted to you.
Now, if my free course client … This is what I mean. If my free course client hadn’t posted her audio business card, the way that I had taught her in the free course, that one friend would have never even thought to call her about a real estate deal, and if she hadn’t been making so many cold calls to landlords, she likely wouldn’t even have been prepared to have that conversation with that referral that she had received.
Then, my private REI Ace client, if he hadn’t been hitting the direct mail so intensely, he would have never ended up in that conversation with that wholesaler, talking about direct mail, commiserating over direct mail, and he wouldn’t have gotten that referral. I mean, if he wasn’t so frustrated about the direct mail, he would have likely never tried placing that craigslist ad, those craigslist ads a few times, which led to a referral that led to that second deal. And if he hadn’t been so frustrated about his direct mail, he wouldn’t have been venting about it at a restaurant to his wife, where that third person overheard and gave him a deal there. And if he wouldn’t have kept … or if he would have kept a secret from his friend about what he was actually doing until he actually got some success to share, he wouldn’t have gotten that fourth deal either. Because a lot of people do that. They don’t want to let anyone in their circle know what they’re doing until they actually get some success, and that’s a big, big mistake because that would have cost him a deal if he had done that.
So, you know, and then my own story, although I made a few bucks from playing matchmaker in the classifieds, 10,000 bucks in eight months, though, is nothing to brag about, but if I wouldn’t have been frustrated with that, I probably would have never thought to start sharing classified ad properties at REIA events, and if I didn’t do that, my business associate that gave me that big bulk of properties to sell would have never recognized the hustle in me and would have never shared that deal with me. And the lady with the short sales and the lady with the $100,000, neither one of them would have ever known who I was.
The lesson here is to be consistent with your money-making activities, and don’t get frustrated if they’re not bringing money into you directly right away. So, be consistent with those money-making activities, and whatever you do, don’t stop. They’re called money-making activities for a reason. They make money. They absolutely make money. They make money directly, and indirectly. Don’t discount the indirect part of it. Activity, it attracts opportunity. If you’re in the game, you’re doing the right activities, you’re talking the game, you’re sharing what you’re doing, and you’re out there just in the overall conversation, that activity attracts opportunity, so trust that. Trust the process, and you’re going to be pleasantly surprised that it will begin to snowball as well, but it’s never going to snowball if you stop and try something new, or go, quit. So, regardless of the results that you’re getting directly from your activities, in the beginning, don’t stop. Stay active. God bless to your success. I’m Matt Theriault, living the dream.