REI Rookies Turn it On Quickly | 374

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REI Rookies Turn it On Quickly

Today on The Epic Real Estate Investing Show, Matt is joined by Jack and Josh, otherwise known as the REI Rookies Podcast. Learn why they came to Matt to take their business to the next level, the surprising ways they gained local credibility, how a damaged roof and a lost job sparked their interest in real estate investing, and much more! 

REI Rookies Turn it On Quickly

What You Will Learn About REI Rookies Turning it On Quickly:

  • How an eight-hour long drive got Josh started on his real estate investing journey
  • What Josh learned when his entire team was fired from a large technology company
  • How a roof in need of repair got Jack interested in real estate investing
  • The steps Jack and Josh took to quit their full-time jobs
  • What they did to take their business to the next level (and how they gained the confidence to take that leap)
  • How automation changed Jack and Josh’s business
  • How Jack and Josh set up 4 appointments before their direct mail went out
  • What a consistent marketing message has done for their business
  • The surprising ways they gained local credibility

Recommended Resources:

  • It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Need money? We have secured more than $15,000,000 of funding for the Epic community, people just like you. Get access to fast cash for your real estate investing business with our “one-of-a-kind” credit-based funding program at EpicFastFunding.com
  • Need time? Work on your business rather than in your business by leveraging the time of others.  Access free information and find real estate-trained virtual assistants to help you free up your time.  Learn more at VAsForRealEstate.com.
  • Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy!  New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
  • Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.

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Transcript:

Speaker 1: This is Theriault Media.

Matt Theriault: Yeah. Welcome. Welcome to the Epic Real Estate Investing Show. Glad you found us. If you haven’t picked up your ticket for the next Epic Intensive, the Cash Flow Conclave coming up soon, May 31st through June 2nd in Indianapolis, Indiana, where we’re going to be revealing the secrets of creating cash flow with real estate, and specifically what you’re going to be leaving with is your very own customized rat race escape plan. Literally, your own playbook as it pertains to your strengths, your weaknesses, and your assets, and everything that you have to work with. It’s going to be custom just for you, and tickets are still available, but I doubt for long, so go to epicintensive.com. When you register, right away you’re going to receive the Epic Fast Formula, and this is free. It’s just part of your homework. It’s the two easiest and fastest strategies to a paycheck in real estate.

The reason I give this to you upfront is that this Intensive, it’s not a beginners’ event. No, what’s going to be covered is rather advanced stuff, but very few, if anybody out there that I know of, is actually sharing this stuff in the way that we share it so that you get it and so that you get it and you can apply it. I mean the type of information and the tactics that are going to be the most impactful to your own rat race escape. So, I give the Epic Fast Formula right up front so that everyone, when they arrive, they all have the same foundation of knowledge.

We don’t have to waste time covering questions like, “What purchase agreement should I use, and how do I do this with no money, and how does a wholesale work, and what do I say when sellers call and what am I going to do if I can’t find a bank loan and why would anyone sell their house at a discount if they could get full price on the open market with a realtor?” Those types of questions. The types of questions that we’ve all heard before and we’ve heard the answers before from multiple sources. We know the answers, and if you don’t know the answers, the Epic Fast Formula is going to answer all of those for you. So when you arrive at the Intensive we can get down to business and start working on your rat race escape.

Also, when you register, I’ll go ahead and I’ll give you the Epic Intensive workbook. I’m going to give that to you right away. I’m not going to wait until the event actually arrives. That’s what we typically do, but I’m going to give that to you right away so you can familiarize yourself with what you’re going to learn and how it’s going to impact your financial future. So, go to epicintensive.com and grab your seat while they are still available. Epicintensive.com.

Alrighty. Got a great show for you today. As you’ve heard me mention here though, our REI Ace Program, REI Ace Program, it’s hard to say that fast, it’s a program where we turn ordinary, everyday people into badass real estate investors, REI Aces, and originally we thought of it as a souped-up coaching program. We’re going to do more than any other coaching program does out there, and this is why we’re going to be bigger and worse and better. I mean that was our conception. That was our initial thought as we were going to move forward with this, but now after a couple years of running the program, I don’t know. In hindsight, we see it very differently, very clearly, and very differently.

We’ve recognized that in the program we’ve got two types of people. There’s two types of people that come through, and those with real estate problems and those with business problems, and we’ve noticed of the tremendous increase in the success stories that we’ve had, that more of those success stories are coming from one group than the other. After the interview process, and we do conduct a legitimate interview process to become a part of the program because it’s not a good fit for everybody. Some people we just, whatever’s ailing them, it’s not going to be a good fit for us because I don’t know if we can help you or not and other situations where you’re coming to us and maybe what we offer is not what you’re looking for. So we do turn away approximately 30% of the people that apply because for the most part they’re just not ready for it yet and it’s not a good fit in some way, shape, form, or fashion.

So, the interview, we actually, in this interview, we actually conduct a business evaluation because what we’ve found is that those that have a deal or two under their belt already are having the fastest success. Sometimes in just a couple weeks, a significant difference is noticed in the types of results that they’re receiving and because most people are rather impatient and invariably always want to know … I mean this is one of the most popular questions we get during the interview process is, “How long is this going to take?” So, just knowing that that’s on the top of everyone’s mind, I like to shine the spotlight on the REI Acers that get the fastest result so that you can learn what it is that they did to get them.

At the last Intensive, just this past January, I met two individuals there from Fargo, North Dakota, that I’ve subsequently had the great pleasure of working with, and I say the great pleasure. It’s not a cliché. You hear that all the time, but no, these guys have really been a pleasure. I mean I really like light-spirited, casual, happy-go-lucky I guess, optimistic people that have no issues rolling up their sleeves and getting to work. And that’s just what these guys did the very second that they left the intensive, and they’re getting the results to show for it. They’re getting those [inaudible 00:06:02] results to show for the hard work that they’ve put in and how fastly they … Fastly? Is that a word? How quickly they actually put that work in.

What I did was I recorded a phone call that I had with them. Wow, it’s probably… I guess it’s been more than a month or so ago. It’s been a busy time around here around the office, actually for me personally. I haven’t been around the office. But about a month or so ago, and then we recorded this phone call, and I wish I had a more recent one to share with you because they’ve closed a couple more deals since we last spoke, but I still want to share this conversation with you that we had and they’ve got an awesome podcast as well. They went out and they started their own podcast, which I just think is fantastic.

So, without further ado, please help me welcome the REI Rookies. You may know them from the REI Rookies Podcast. That’s Jack Hoss and Josh Koth. Jack and Josh, welcome to the show.

Jack: Thanks, Matt.

Matt: You bet. You bet.

Josh: Glad to be here. Thanks a lot, Matt.

Matt: Sweet. You guys are in a remote location, far, far and away. They made a famous movie about it. Where you guys from?

Josh: Yep, from North Dakota. Upper Midwest, baby. We can touch Canada

Matt: Yeah, you’re hardly in the United States. I’ve never met anybody from [crosstalk 00:07:20] Say again?

Josh: Yeah, we’re barely in the United States. In fact, we’re going to see a high of 14 degrees today.

Matt: That is insane. Yeah, it’s a bone-chilling 62 degrees here today, I believe. So I have sympathy for you guys.

Let’s see. We met recently, you came to one of the events to the Epic Intensive in Torrance, and you guys, we got to know each other over those few days and we’ve decided to work together since. You guys actually have a Podcast, so I wanted to bring you on and just kind of talk about that, because I talk about all of these different types of ways to generate leads, and starting a Podcast could be very much one of them for you.

Even if you don’t want to be a Podcast celebrity, using a Podcast to record your knowledge, and have that, and distribute that to the person that you’re trying to attract, is a very effective way of generating business. So I guess let’s back up just a little bit before we talk about that. Tell me about … what were you guys doing just before you guys got started investing in real estate?

Josh: So we worked together at a large technology company that has a campus here in Fargo, and we were on the same team, and then Jack moved to a different role, and then my whole team got fired, got downsized, all 26 of us at once. So I was unemployed, and I was a photographer, and I had just read “Rich Dad, Poor Dad”, and I realized as a photographer, I was just pegging the needle in the active income side. I mean, if I don’t show up to work and shoot photography, I don’t get paid. I realized if I’m going to ever be able to retire, or slow down, or step away and have any type of life that I was wanting to have, I needed to figure out how to generate passive income.

So then all roads led to real estate, and about two years [inaudible 00:09:23] and I told this story on our Podcast before, but I typed “real estate investing” into the old iTunes Podcast search engine, found your Podcast, listened to about eight hours worth in a row on a long drive, until we got hooked in.

Matt: Oh, lordy.

Josh: Yeah, I know your voice well.

Matt: That is a long time, Man.

Josh: That was a long one, yeah. So by the time I reached my destination, I was fired up, and came back to town, started making offers, hooked up with an agent [inaudible 00:09:53] was investor friendly, owned a bunch of properties himself, and I just started on the MLS just kind of making mobile offers. Then Jack was still working, and about nine months later, after I had acquired a few properties, he kind of saw what was going on, and then maybe you can speak to how that looked- [inaudible 00:10:15]

Jack:  Yeah, well first of all, when you have that many friends who got let go all at once, it’s kind of a shock to the system as well. So you start to question how secure that corporate job really is.

Matt: Right.

Jack: It’s just a mindset shift in that regard. Then I also had read “Rich Dad, Poor Dad”, and “Cash Flow Quadrant” and some other things, and one interesting scenario was it really made me look at some situations differently. One thing was that we’re a single-income family, and I needed to replace the roof on my house. To come up with that kind of money to replace that roof, I just didn’t even know where to go about it. Long story short, I ended up buying a rental property, which now pays the monthly fee or the monthly bill for my roof. So it was a way for me to get a roof, by acquiring a rental property to pay for it.

Matt: Mm-hmm (affirmative) Go ahead.

Jack: [inaudible 00:11:22] I just kind of ran with it.

Matt: Right. A lesson pulled directly from the pages of “Rich Dad, Poor Dad”. I think the wife wanted to buy the car, and he said, “Great, so what asset are you going to buy to pay for the car?” Right?

Josh: Exactly.

Matt: Yeah, it is a roof, not quite as romantic, but same concept. Very effective.

Jack: Yeah.

Matt: Perfect. [crosstalk 00:11:47]

Jack: Got the job done.

Matt: So here we are today. How long have you been investing in real estate? Are you both full time now? How is that working? What’re your lives look like right now?

Josh: I was still doing photography, and I still am actually, but I just kind of slowed that down quite a bit, and I had the flexibility to adjust my schedule, and I just started consistently trying to purchase properties. We partnered up a little over a year ago, and we’ve been purchasing about one a month ever since. So we’re [inaudible 00:12:22] as a team right now, and then we’re working on a couple of flips, and we use that money generated from flips to purchase longer-term buy and holds. So it’s kind of where we’re at right now, and Jack just quit his job a week ago.

Jack: Yeah, so I am officially full-time as of this week.

Matt:  Awesome. Congrats. Congrats.

Josh: We’re sitting here side by side, and it’s pretty exciting stuff. So you know, right now … but we realized too, we’re doing about one deal a month, and we just really want to get to the next level. So that’s kind of where we engaged you and really wanted to be around people that were succeeding at a higher level and kind of match that, those behaviors matched that success, and that’s how we ended up finding of the Epic Intensive and attending that. That was a great time, great [inaudible 00:13:12], it’s highly recommended.

Jack: And it’s one of those things that I think is really telling because it wasn’t until the intensive, and having confidence in the processes and what we could accomplish, and having some sort of structure is what was really needed, and made me confident to finally take the leap. I know what I’m going to be doing on a daily basis, coming here and focusing on this. It’s … we’ve always had a shotgun approach, now we’re, like you said, it allows us to have a more focused, streamlined, dedicated approach. It really made a difference.

Josh: And when he says what to focus on, he’s talking about this. The daily success report [crosstalk 00:13:54]. Here. Fill it out.

Matt: Great. You’re almost making me cry. You almost made me cry.

So one deal a month before we met, and you want to take this to the next level. What does that next level look like for you?

Josh: We kind of … it’s a combination of, we kind of readjusted our expectations a little, too. Because I don’t know if deals necessarily is a measure of your success, right? Because I mean, [inaudible 00:14:24] area may not be profitable, so really we’re just trying to set a passive income level. So we’re trying to hit ten grand a month as kind of our first threshold, and then probably double that so that we’re each generating ten grand a month, so that’s kind of our next goal. I think we’re about … we’re sitting about the halfway point, so we need to get from five grand a month to about ten.

Matt: Right. Okay. So we’re at five, we need to get to ten. We decided to work together, so what’s actually missing or broken that’s helping, or that’s preventing you from getting to five to ten on your own?

Josh: Man, I mean, we use this line quite a bit, but we say that we acquired 18 properties almost in spite of ourselves, because [inaudible 00:15:13] and it just depended on me remembering, like seeing a property pop up on the MLS, or … and just remembering a lot of this stuff. There was zero follow up going on unless I remembered it, and zero tracking and a lot of the stuff that could be automated was not. So just a lot of that busy work we were having to do, and that was really slowing us down, and we were the bottleneck. So we wanted to really implement processes, a CRM, and get as many things automated as we could.

Matt: Awesome, awesome. Cool. So you saw that being a good fit for you over here?

Josh: Yeah.

Jack: Yeah, absolutely. And it’s … I’m absolutely convinced now that if you don’t get it implemented and pay for it now, you’re going to pay for it down the road. Whether it is through time, money, effort, it’s just a matter of how you’re going to pay for it. So in our case, it made far better sense to work with your team, get it done now, and get it implemented, and gain those habits, and I’m going to say habits because it’s all about being [inaudible 00:16:24] at it. It’s just a better scenario, and we’re in the end going to be ahead of ourselves in the long run.

Matt: Right. Sweet. So, you guys were just here at the office, I don’t know, a week and a half ago, maybe two weeks at the most. Typically, you never talk to people in great detail this close, because you’re just getting into it, your marketing is just starting to hit, and you’re starting to really get into your habits, right?

So what is it like right now two weeks after you were here? What does your day to day operation look like?

Josh: Well it’s kind of interesting because we’re just trying to focus on the daily success report, make contacts, and Jack has been really [inaudible 00:17:10] on the posting ads, and just on the marketing side of things. But the funny thing was, I started getting calls, and I didn’t realize where they were coming from, but apparently, our VA that Miguel set up for us was already reaching out to FSBOs and they were starting to call me, but I didn’t even know that that was already in place.

We’ve been going back and forth on Voxer, and we actually just went to look at a house about an hour ago. We have another appointment set up for Saturday, another one I think tomorrow, so there’s already been three or four appointments set. I don’t think our direct mail has even hit yet. So it’s all based on just one… kind of one strategy is already setting two or three appointments, where as I would have never seen that much because I just don’t have the time to sit there and comb through all these FSBOs listings or the stuff that the VA is doing for us. I’m just filtering them out and getting them to the point where, okay, here’s people that are actually responding and have some interest, and then we can take it from there and actually go look at the properties.

Jack: And being consistent with the marketing message has been a pretty big thing too. You talked about once at the intensive, that it starts to build on itself. I’m definitely seeing that. I know it’s been only three days since I’ve been pushing this, but you can see it building already. The first day, of course, I didn’t have anybody contacting me. The second day I had four. Today already we’re at two o’clock, and I’ve had like eight to ten. So it’s people who are constant… I can see how this is building up in such a short amount of time.

Matt: That’s awesome. Awesome. So I guess, what are you guys talking about now that you guys are … Jack, you’re full time now, and you guys are probably sharing space, and you’re working the business, what are you guys talking about? What are you seeing for the future for yourselves, now?

Josh: Yeah, I mean, we’re still treading water a little bit trying to get in the rhythm of what it’s going to be like, so we should definitely re-cap this in a month because I’m sure we’ll be much more in a rhythm.

Matt: Yeah, totally. We will.

Josh: But you know, so right now it’s just figuring out how to actually implement a lot of these processes, but you know, we talk about, okay, how do we focus on the right activities? So a lot of it is, if the VA brings us a property, we need to assess motivation, right? Because you don’t want to waste time with people that have none. So we’re figuring out how to do some of that filtering out, some of that sorting, and really focus on the people that actually have genuine motivation. So we’re not just running around all over town looking at houses where the sellers have none.

Matt: Mm-hmm (affirmative)

Josh: And then just kind of putting them in the follow-up drip, so that a lot of that follow up happens automatically without our direct involvement. We’re also just kind of surrendering to the process. I just went and looked at a house, and you know, it’s one of the checklist items that says, “send a thank you note”, something I never would have done in the past popped up, so I said, “Alright I’m going to send a thank you note.” So I used an automated service that you recommended that sends out a handwritten note to a seller because you know, even if he has no motivation selling his house, it still may benefit somewhere down the road just as far as him building his reputation, what he thinks of us as a company.

Matt: Right. Just wait, because that right there, that practice right there will yield dividends. Josh, my guy in Florida, we got a deal just in December from a personal note he had written a year before that. So maintain that practice, it will pay even when it feels like it’s not.

Super, so cool guys. This is kind of a spontaneous jump on the phone, let’s touch base. Oh, let’s talk about your Podcast. So you started the Podcast called The REI Rookies, and I guess what was the inspiration, or what was the reason for you doing that?

Josh: That was another, just kind of a long-term play in just trying to build some credibility locally, and just with other investors and other people we might network with. Just any way to stand out from the crowd, and establish and build relationships, and generate some trust amongst our local investors, well anywhere, really. We just thought it was a great way to do that, and we just generally wanted to help other newer investors that were asking us questions, and honestly too, we get a lot out of just teaching the material and repeating it. Because when you teach something you know, you just learn it that much better, right?

Matt: Right. [crosstalk 00:22:00]

Josh: That was one of the reasons why we started.

Matt: Sweet, so we-

Jack: You know, we were really … oh I was going to say, strong believers in not… doing things that … what other successful people have done before us, you know, it’s the concept of, to become an expert in anything, you have to spend 10,000 hours, or you could follow somebody who has already spent that 10,000 hours and just do and mimic what they’ve done. In this regard, you were a pretty significant inspiration in that, because we saw you doing a podcast, so us doing a podcast made sense.

Along with, it really does … once you can explain it to somebody else and teach it to somebody else, it demonstrates that you have an understanding, yourself. Secondly, it really has held us accountable. The accountability associated with it, if we say something on the podcast [inaudible 00:23:00] it really checks your integrity. You really want to make sure that you deliver on what you’ve said to the hundreds of people that you’re delivering this to. So it really adds to that accountability factor.

Matt: Indeed. I found myself, once I started teaching others how to do what I’ve done, I became much better at what I did, and at what I do.

Jack: Right

Matt: Even when you know it good enough where you’ve gotten the results for yourself, and you can help other people do the same thing, I got better at it myself. It gets me fired up. It keeps me moving forward as well in my own business. It enables me, or empowers me, to keep practicing what I am actually teaching, so it keeps me on track. So I like that, Jack. I like that you’ve recognized that it’s a good accountability factor.

So you guys have been running your podcast for almost a year now, right?

Josh: Right.

Jack: Yep.

Matt: Aside from that, what have you noticed? What ancillary benefits, what intangibles, or what actual tangibles have you gotten from it?

Josh: I know it’s definitely raised our profile. For instance, we took over our local real estate investor, we don’t have an REI club, but there was a meetup group of Fargo, Moorhead real estate investors. We took that over, and between that and the podcast, it just kind of gives us some really great credibility locally here, too, and kind of makes us a go-to team as far as people wanting to know how to get started. We generally don’t view other investors as our competition, we look at it as like a big community, so we welcome that. We welcome questions, we welcome if there’s ways we can help other investors in town get started, we’re happy to do that. So it’s really been good as far as making connections and networking, it’s been awesome.

Matt: Great, great. Yeah, that’s a great mindset too, because really they’re not competition. You’re going to buy and sell from each other, you’re going to bring opportunities back and forth to each other, so fantastic.

Cool. Alright, so let’s go ahead and put on the calendar, say we’ll check back in here the next 30-45 days and see what’s really happened. I know we have another intensive coming up in Indianapolis I think is our next one. We’ll run three or four of those a year, so depending on when you’re listening to this, because you could be listening to this five years from now, this is how podcasting works and-

Josh: I think I heard on your last podcast, we’re going to be at the next Ground N’ Pound with you.

Matt: Oh, you’re going to the Ground N’ Pound school. Fantastic, well we’re going to see each other here in just a couple of weeks then.

Josh: Yeah, we’ll be there.

Matt: Okay, so hey. If you want to come out to the next Epic Intensive, epicintensive.com, you might even meet Jack and Josh, as our mastermind group meets on a Wednesday, so if you want to upgrade your ticket experience to that, and along with the other REI Ace clients, you’re more than welcome, and go check out their podcast. It’s REI Rookies, search that wherever you can find a podcast, and you guys also have a website by the same domain name, correct?

Jack: That’s right.

Matt: Reirookies.com

Alright. Jack, Josh, it’s been an absolute pleasure.

So if you were able to relate to Jack and Josh’s story, maybe it would make sense for you to take us up on a business evaluation to see if propelling your real estate investing to the next level, like Jack and Josh are doing. That’s what we’re doing for them, and we can help you do the same. Nothing would make us happier to allow us to do that for you. If you’d like to take us up on that or at least investigate the process, go to reiace.com, go to reiace.com, answer a few questions, and then you can set up a call with us to discuss the REI Ace program, and we’ll show you what’s needed to get your real estate investing to your next level. So go to reiace.com. Alrighty, that’s it for today. God bless and to your success. I’m Matt Theriault, living the dream.