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Tim Mai and Tom Krol

What would you do if your property was ruined in a disaster? Find out on today’s episode with the real estate experts Tim Mai and Tom Krol! Learn what the unknown equity list is, how to pay off the house with an insurance claim in case of a flood, and the difference between passion and purpose in the business.

Tim Mai and Tom Krol

What You Will Learn About Mastermind Monday – Tim Mai and Tom Krol:

  • Tim’s and Tom’s backgrounds
  • Tim’s best source for off-market deals and his approach to MLS deals
  • What is the unknown equity list, and
  • How Tom is using it in finding off-market deals
  • Tim’s and Tom’s opinions on cold calling and how to use it
  • Currently, what trends Tim Mai and Tom Krol see in their markets and how that changes the way they operate
  • The biggest mistake Tom made this year and what he learned from it
  • The hard lesson that Tim has never learned
  • How to pay off the house with an insurance claim in case of a flood
  • The best books Tom and Tim read in the last 12 months and their greatest values
  • Passion vs. purpose in the business
  • What the five-second rule is and why you should not practice it
  • Tom’s and Tim’s plans

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  • Grab my book, Epic Freedom ($1) 
    I frequently hear from people looking into investing in real estate for the first time, “How long is it going to take?” So much so, I wrote a short book about the 2 easiest and fastest strategies to a paycheck in real estate. You can grab a copy for $1 and I’ll pay the shipping – Click Here.
  • Join our Badass Investor Program and be a Case Study 
    I’m putting together a new Badass Investor case study group at Epic Real Estate this month… stay tuned for details. If you’d like to work with me on your real estate investing, go to FreeRealEstateInvestingCourse.com to get started.
  • Also, check these out:

Thanks!

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Transcript:

Matt Theriault: Hey rockstar. We’re getting really close. We’re only about a month away and this is gonna be the last announcement about The Epic Intensive. I’m getting together with a group of aspiring real estate investors to turn them into badass investors. We’re gonna do it all in person. We’re gonna work elbow to elbow, shoulder to shoulder. And we’re just gonna get down and dirty, we’re gonna get it done. If you’d like to join us go to epicintensive.com. Epicintensive.com. And grab a ticket. The prices will be going up this week.

We’re reaching capacity, which is very exciting. I can’t wait to see you all that have already signed up and for those of you that have been on the fence, get off the fence. Come out and hang out with us. We’re gonna be in Boston, Massachusetts. I’ve never been before. It’s someplace I’ve always wanted to go. I’m gonna make sure we have a really, really good time as well. It’s gonna be worth every single penny. It’s gonna be worth your financial freedom. What is your financial freedom worth? Come join us. Go to epicintensive.com, get all the details, grab yourself a seat, and I will see you there.

Speaker 1: This is The Epic Field Report.

Matt: Hey Nate. Good to see you. Remind me, what market are you in?

Nate Hammond: I’m in Oregon.

Matt: You’re in Oregon, okay.

Nate: Yeah.

Matt: Perfect. Which part?

Nate: I’m in, I live in Albany. I go kinda far North as Salem Mariess, as far south as Eugene.

Matt: Okay.

Nate: Along the I5 corridor.

Matt: That’s a pretty big territory.

Nate: Yeah.

Matt: Got it. Well you know, I wanted to talk to you real quick ’cause I noticed your big win on follow through Friday of the … inside of our Epic Pro Academy’s private Facebook group.

Nate: Yup.

Matt: And I read your deal and I just wanted to talk to you about it. So it says here is the finished home my brother-in-law built on the lot I wholesaled him. I got $7,000 up front. And will be 10% of the net on the back end. So super. Congratulations. So how did you find this deal to get it to your brother?

Nate: Yeah. So it was … the lot is actually around the corner from the house that I live in. So it’s not far from me. I’ve seen it before ’cause I’m also an appraiser so I drive neighborhoods a lot doing that. And it was a burnt down house and there was just a pile of rubble sitting there on the lot. And it turned out that I marketed to it and the lady was behind on her taxes, coming up on about three years, so it was about to start the foreclosure process, the tax foreclosure process.

So I just marketed to her and started going that way and went back and forth, back and forth. It was kind of three or four months of negotiating with her to finally get the price that we got on. And then got it and then we had to do a double close and double close it to my brother-in-law who ended up building a house on it.

Matt: Perfect, perfect. So market it to her, you just send her a letter or a postcard?

Nate: Yeah. I just typed up … at the time I wasn’t doing, now I’m doing like direct mail. This was … the whole lot thing happened a while ago, in the sense of when it started. And I just typed up on my computer and stuffed it in envelopes, had a stamp on it, and sent it out.

Matt: Awesome. So your planned exit, you wholesaled, and the money that you made you put $7,000 in your pocket, your partner on the back end for 10%. What was the biggest lesson that you learned in this transaction?

Nate: Follow-up.

Matt: Yeah, right.

Nate: Keep going because at first we were kinda far apart. I think I ended up getting it for $27,000 I wanna say or $24,000. And at first, she was wanting like 50 something, to begin with. And then just through the follow-up over those three or four months, we finally came to … her motivation started going up the closer it got to her having the tax foreclosure coming. And then that’s when we started coming more to what we needed to be at.

Matt: So that sense of urgency started to build on her side.

Nate: Yeah. Exactly.

Matt: Perfect. So your method of follow-up, just kept on dialing the phone, is that what you did?

Nate: Yeah. Phone calls. Exactly yeah. Once I got her number I just … that’s exactly what it was. Just calling her. There’s no need to send any more mail once I already had her contact.

Matt: Sure. Okay, so Nate, you’re a part of the fight club in part of your first deal course. What have you found most impactful from there?

Nate: Man, you said something in there to the effect of the more high tech things get, the more low tech your customer service needs to be. And I think that for me because I’m definitely a gadget type guy and I try to automated as much as I can. But to have that mindset of actually just talking to people and being of service to them. And just trying to build relationships and network is definitely a big takeaway that I got from that.

Matt: That’s awesome. So how are you gonna celebrate?

Nate: Probably gonna go to a Brazilian steakhouse.

Matt: You like meat too?

Nate: Yeah. [00:04:40]

Matt: Those places are the best. Well, enjoy. Keep doing what you’re doing. Stay in touch. Let us know how we can help, all right?

Nate: Sounds good. Take care.

Speaker 1: This is Theriautl Media.

Matt: So welcome to The Epic Real Estate Investing Show. I’ve got a fantastic show for you today. Well, I did it, I went through my Rolodex and I pulled out three of the most prolific and successful real estate investors in the country. I just kinda brought us together and we’re gonna have like a little mastermind session. So if you wanna kinda just be the fly on the wall with the listen in and enjoy. We did this a couple weeks ago. Had a great response and I just thought, “Let’s do it again.”

So I am joined by two of them. The third one hasn’t shown up yet. Maybe he’ll show up in the middle of the show. But let’s go ahead and I’ll introduce you to who is here right now. So Tim and Tom, glad you guys could make it. So just start by telling me a little bit about yourself, what market you’re in, and what’s your current business looks like today. So Tim, go ahead and take the lead.

Tim Mai: Yeah, sure. So my name is Tim Mai. I’m here the Houston Texas market. I’ve been in this market for a long time, since ’87. But I started investing in 2002 and have done everything from wholesaling to rehabbing, land lording. Nowadays, a year ago I started my hard money lending business so I’ve been doing a lot more of that lately. But yeah, we do all kinds of different marketing and we’ll talk more, I’m sure, later, but one of the big ones that we’ve been focusing a lot on is MOS listed properties, which normally don’t get talked about a lot.

Matt: Right.

Tim: But we’ll definitely talk about that.

Matt: Super. Thanks, Tim. Tom.

Tom Krol: So Matt, I gotta tell you. I always get told that I look young for my age, but Tim, you’re 16 years old. How are you doing this? What is going on around here? I do not look young for my 39 years, I can tell you that, anymore. So Tom 00:06:54]. I am a wholesaler. I run a wholesaling company in Portent Lucy, Florida. It’s a little tiny, tiny town. So if I can do it, anybody can do it. And I’m also a wholesaling coach. My wholesaling business runs 100% without me and that’s my most favorite thing in the whole world.

Tom: So besides meeting my assistant on Thursday for brunch at 10 o’clock, which happened today, that’s really my only involvement. Sometimes cherry picking a property for my portfolio, but that’s about it. The rest of the time got five kids who require a lot of attention and I’m happy to spend time with those, so that’s the majority of my day with Julie and the five L’s, Logan, Lacey, Lily, Lucas, and Levi. And our dog [inaudible 00:07:34] That’s about that.

Matt: That’s great. You know, before we started the recording, we were just talking about the Rich Dad, Poor Dad and some of our favorite quotes and it’s Thomas it sounds like you have a real business by the definition of that business and that book.

Tom: 100%. Robert Kiyosaki is, really proud to say, is now a friend of mine, but really I owe a lot of it, it started with Rick Jetport [00:07:58] and my brother Todd Towback [00:07:59]. He got me really clear on what do you want. I said, “I want a business, not a job.” And there’s a lot that goes into that, having a cap on your financial aspirations and all that stuff, but starting with the end in mind has, and just using my mentors to get where I wanna be, it’s awesome.

Tom: And Rich [00:08:19] has planted an awesome seed. There’s no doubt about that.

Matt: Yeah. He’s kinda the mentor for us all in the beginning, right?

Tom: Yeah.

Tim: Right.

Tom: For sure.

Matt: So Tim, you kind of touched on it in your introduction and we’re gonna talk about my first question was what is your best source of off-market deals at the moment, but it sounds like you’re picking the un-market deals and you’re having a lot of success there. Explain to me how that’s working for you.

Tim: The best source for off-market deals, right now is actually targeting a very specific type of properties and mailing to them. So we’re doing additions, square foot, so we’re looking for really small properties, six, 700 square feet, adding another five … getting them to about 1,200 to 1,500 square feet, basically.

Matt: Okay.

Tim: So as we look for these sort of obsolete properties and turning them down, sometimes it gets a neighborhood that makes sense for us to turn into a duplex so we get higher rentals. We’ll do that. So we don’t go the traditional direct mail to absentee owners and high equity the same way we used to anymore. Simply because it’s just the cost of marketing on those have gotten quite a bit high-

Matt: Sure.

Tim: Market.

Matt: The internet kinda broke up just a little Tim, so how are you actually contacting those owners? I didn’t hear that part maybe.

Tim: Okay, yeah. We do direct mail to them, but we’re targeting a very specific market.

Matt: Got it, got it. All right. I missed that part. Perfect. And then tell me about your MLS deals that you’re doing. How is that working for you?

Tim: Yeah, so we basically created a software, half virtual assistant that runs them, and we send out anywhere from 100 to 200 offers a day, just blanket offers for properties that are $250,000 and under in our market. So typically those type of properties, cash flow type rentals type properties. And we just do blind offers and that’s how we do.

Matt: Yeah, a couple weeks ago a girl, Kristi Cirtwill [00:10:31] was on our Mastermind Monday session and she works here in Long Beach, California. And that’s kinda how she does it, how she got started sending out 200 offers a week and just whatever stuck is how she got her deals. I imagine in your market though, if you’re looking for a cash flow in deals, you don’t have to get the deepest of discounts for those properties to actually work for you, right?

Tim: That’s correct. Yeah. I mean, some of them we do get pretty good discounts, especially if they need a lot of repairs. Most of them, you’re right, they don’t meet the normal rehabbers margin, but for landlord margin, they definitely do. But sometimes we get lucky and the more repairs the property needs typically is the deeper the discount that we get.

Matt: Right. Tom, we’ll get you in just a second, but I got another question based off of that. Tim, so when you send out 200 offers and you do it in their automated process, what is your automated calculation for the actual number that goes on the offer?

Tim: Yeah, so the manual part that we do is one of the virtual assistants will look at the pictures to categorize the condition of the property. So is it excellent, is it good, okay, bad? And based on that, based on the condition, we’ll offer them anywhere from 50 to 70% of the list price.

Matt: Got it.

Tim: And in our market, we have found that the agents are pretty reasonable to list it, the as-is value based on the condition of the property. I’ve seen markets where even though the condition is really bad, they still list it really high. Between markets like that, we would have to adjust our offer there. But in our market, 50 to 70%, depending on if it’s bad, it’s 50%, if it’s good it’s 70%.

Matt: So you’re using the listing price as the starting point?

Tim: Correct.

Matt: Got it. Cool. Thanks. So Tom, what’s your favorite source of off-market deals at the moment?

Tom: We are still using direct mail. We love it. Yeah. We love direct mail. It’s consistent, it’s simple. To Tim’s point, the cost for marketing, the conversion rate had gone up a little bit, but we find that it still pretty much offers. What we’ve gotten really innovative about is coming up with new lists. Tim, kinda you touched on that, but really specializing the list. One list that’s been really, really hot for us right now is been the unknown equity list.

There are a few lists that are not really used heavily. One of [inaudible 00:13:05] criteria. How much equity is unknown? When was the last sale date unknown? That’s something that has been getting missed a lot lately. And then just your good old tax delinquent list directly from the county is best. Code violation list. Those lists are just consistently. Now in our tribe we have a lot of people who like, they do cold calling and they have done other ways to find these properties, but for me personally, in Port Saint Lucy, I still like direct mail. It crashes. It’s so consistent. It’s like a machine.

Matt: It’s amazing how the calling is getting right now. This is something that I did in massive volume probably 11 years ago. And I never wanna do that again. And they do not call list came out and I can kinda crush that whole thing. Everyone just kinda stopped ’cause everyone was afraid of the DNC list. And now everyone’s like, “This is the greatest thing since sliced bread.” I was like, “Are you nuts?” I’d rather much perfect my marketing and get people to call me first.

Tom: Well I think it really comes down to in some markets, it’s really cost effective because some of those competitive markets and if you have that grit and that determination and you know, we’re kinda like already a little bit seasoned so I don’t wanna say that wears the edge off, but I think what happens is like we kinda build a life of as few inconveniences as possible. So I think what happens [crosstalk 00:14:26]. You know if you have a guy whose energetic and young and he wants to use a triple dialer and make 300 calls a day, I think it’s a numbers game.

They’re gonna find deals on that cold call [crosstalk 00:14:39]

Matt: That’s a big if Tom and there’s a lot of people out there saying, “I love it. I love it.” I was like, “You haven’t done it long enough.” You haven’t [crosstalk 00:14:47]

Tom: Well I will say this. Get someone else to do it [crosstalk 00:14:52] That’s the key. Do not do it yourself.

Tim: Yeah and I think when you combine it too, like if you combine, so, for example, the text and link with the cold calling, when you combine [inaudible 00:15:03] lists like that, it becomes a lot more effective. ‘Cause, I mean, we do skip tracing on text and link went and we’ll call them and we have virtual assistants that will call them. And so we get a much better return than just calling some random list or someone that’s not as a qualified list.

Matt: Right, right. Yeah. I had 200 dials a day. We didn’t have robo dialers back then. But I did 200 dials a day and I did that for about a year and a half and anyone that says that they love cold calling, it’s great, I was like, “You haven’t done it long enough.” It takes a very unique individual to be able to do that for the long-term. But God bless them. If it’s working, I ain’t gonna get in your way. If you’re happy [crosstalk 00:15:41]

Tom: I’m just curious. Tim, you said 200 offers a day and I’m just thinking about this. I mean, that’s pretty interesting. How many … what’s like some of those numbers on that conversion ratios, I mean, are you getting mostly rejections? I’m just … if it’s alright I’d like to just kinda pick your brain on that just for a second. What does that look like?

Tim: So [00:15:58]

Matt: To clarify, is that a day or a week?

Tim: A day.

Matt: Wow. Okay.

Tim: A day, yeah. Remember, Easton markets pretty big. So we have that many listings for us to make offers to. Out of 200, we’ll get like a deal a week out of that. So the conversions not that great. It’s mostly automated and so our costs of acquisition are the cost of the virtual assistant basically.

Matt: Okay.

Tim: And a lot of them, they won’t bother responding to us. Some of them will respond and give us an amount that basically they counter us.

Matt: Right.

Tim: And it’s the ones that counter us are the ones that we go after the most. ‘Cause now we have a dialogue going and we’ll build a deeper relationship with them, even if it’s not for this deal, for future deals.

Tom: That’s awesome. Do you get a lot of kickback on that just like a lot of people who … have you been doing it for a long time or did you just start? I’m just wondering like what kind of long-term effects in the market that would have with.

Tim: No. I haven’t gotten any … I mean, I’m not the one to read the emails so I’m kind of filter shelter from the responses.

Tom: Okay.

Tim: But generally speaking, no, I mean, because of the … so for example, if it’s an excellent property, we don’t send them offers. So what that means is that if it’s such a great property, they’re not gonna see our low ball offer. And so back then when we first did it and we sent an offer to everyone. We get more negative responses that way. It’s like, “Well it’s perfect condition. What are you doing? You’re low balling us.” But for the most part, no. The agents are willing to work with us.

Matt: And is this just an offer sent via email to a realtors email address?

Tim: Correct, yeah.

Matt: That’s how it goes?

Tim: Yeah. And it’s sent from a Gmail to their account so it looks, everything is very personalized. It’s mail merged. It’s not like sent from a mailing list or anything like that. And the email is mail merged so it’s very specific to that property, all the numbers it has to do with that property.

Matt: Awesome, awesome. You create that yourself?

Tim: Yeah. I sure did.

Matt: Sure did. That’s funny. So, Tom, I’m gonna ask you. What trend are you seeing in your business or your market right now that has you concerned and how is it changing the way you operate?

Tom: Yeah, so I think that I’ve kind of already brought it up. I think it’s some of those bigger markets, Dallas, Chicago, Houston, San Diego, Los Angeles, Miami. When those marketing channels start to change. I think what you have to do is you don’t have to panic, you don’t have to switch and pivot, but what you can do is you can double down. Because the new guys coming into a market are not gonna be able to keep up with the guy who’s gonna double down on the marketing channel. And or you can pivot. But I think the key takeaway here is that you’re asking me a question of what am I worried about and what have I seen changing.

I think the fact that you’re asking me that question, it shows who you are as a person because the reason you’re successful, Matt, is because you see things changing because you’re tracking your numbers. So I think the key is for anybody who’s listening whose just getting started, when you talk to someone even anyone whose making even $50,000 a month or more, you’re gonna find that those people are noticing things changing in all areas because they’re tracking their KPI’s. So I think that’s the first thing. And the second thing is the other way I think to solve that problem is to go big in one channel.

So when I talk to somebody and they’re struggling, they’ll say, “Well I did a little bit of this and a little bit of that and I sent out some bandit signs and some letters and talked to some agents.” But typically the guys and girls who, they just totally dominate one channel in their market. When things start to get a little shaky, what I notice the successful guys and girls are doing is they just start double down. They increase it. They don’t pivot right at that moment. But I think in some of those bigger markets you’re seeing some of that.

Matt: Yeah. I kind of agree with that. Double down, I mean, definitely. That would certainly work. I think what’s more important is to double down on the consistency, to make sure that you don’t skip a day. Right?

Tom: Yeah.

Matt: Anyone can be consistent, but not everyone will. And for me, I see that as the opportunity. Tim, what would your answer be to that? What has you concerned and how’s it changing the way you do your business?

Tim: You know, we do look at like the niche markets and specialized and get really good with those. So a lot of what we do, as I said, other people don’t do it. And then in terms of the consistency, I try to find ways that I can automate as much as possible so that way the consistencies not [inaudible 00:20:57] consistent. Where there’s software, where there’s virtual assistants is like that system, having that system run like Tom was saying, wholly about his business.

And so that’s how I find to be consistent, but I love going sort of deep into a specific niche within the market. A niche that not so many people compete in.

Matt: Narrow your focus rather than focus on disbursed, right?

Tim: Right.

Matt: Super. Let’s see. Let me ask, I got a list of questions here, but sometimes they get answered when I ask another question. Let me ask you this Tom, what’s the biggest mistake you’ve made this year and what did you learn from it?

Tom: Oh man. Are we talking personally or in real estate? I will tell you-

Matt: Which one of the five kids is it?

Tom: Well they were all surprises, I will tell you that. So here’s what I would say is, I absolutely know the answer to this question and I have to thank a few people. Definitely Jason Medley from Collective Genius and definitely Matt Saunders from Collective Genius, but here’s what I will tell you is that what I learned and whatever you appreciate and whatever you ignore, whatever you ignore disintegrates and breaks down. And that’s what happened with my rental portfolio. So what happened was I would make a lot of money, I’d cherry pick a property for my pipeline, I’d pay for it free and clear, I was like, “This is great. I’m making” … if you had asked me how much money I was making on that portfolio, I would have to spit out some really big number.

And one of my mentors and my older brother Todd [Tobeck 00:22:38] said, “You’re crazy. You’re not making what you think you’re making. Sit down and let’s really deep dive this.” And I did that and I will tell you the lesson I learned is number one, there’s no such thing as passive income. That does not exist. The best … if you want a list of super hot motivated sellers, go find a group of landlords who think that rental income is passive and those are the best-motivated sellers you’ll ever find.

And you have to just pay attention to your numbers. So somebody who preaches like me all the time about numbers, you can’t just buy rental real estate and ignore it. You’ve gotta be on it. It’s now part of my weekly meeting. It’s the first thing Stephanie and I discuss on Thursday mornings is the rental report. That was my biggest mistake was buying these properties and collecting them and just thinking I’m gonna be living on passive income and no good. You got … whatever you appreciate, appreciates. Absolutely.

Matt: Yeah. Passive income doesn’t mean un-involved income.

Tom: Right. Absolutely. Yeah.

Matt: Yeah.

Tim: There’s almost like zero passive income anywhere you look.

Matt: Right.

Tim: It doesn’t exist.

Matt: And you wanna hear 401K, you have to look at it every quarter to see what it’s doing, right?

Tom: Absolutely.

Matt: There’s no set it and forget it.

Tom: And I’ll tell you, just in 90 days of just every week, week in and week out, adjusting and massaging these numbers, we have made tremendous, I mean it’s done a complete 180. So yeah, it’s key. That’s my definitely biggest turn around this year.

Matt: That’s good. Good. Tim, your biggest mistake this year and what have you learned from it?

Tim: Do I have to talk about it?

Matt: It’s a lesson, right? We’re gonna share the lesson.

Tim: And it’s funny because it seems like I never learn this lesson, I swear. But the lesson is like whenever I rehab a house, I like to get the most money for it. And sometimes we get an offer that’s like, it’s okay. And then I don’t take it, sometimes I regret it. So we have a property that’s after we … so we bought it after it got flooded. And then this is not our Harvey flood. Houston has so many floods in the last couple of years, it’s been crazy.

But anyway, so we bought after it was flooded. We fixed it up. And doing us fixing it up, it got flooded again. It’s so funny, it’s like I don’t know how it looks, but we put in the wood flooring on Friday and Saturday morning it got flooded.

Matt: Oh wow.

Tom: That’s the worst.

Tim: Yeah. Anyway, so we fix it up and then we try to sell it. We get an offer. It wasn’t what I wanted. My wife said, “It sounds good. Let’s do it.” I was like, “No. Let’s hold out for more.” So we didn’t sell to that buyer and then it got flooded again.

Tom: Oh no.

Matt: I knew that was coming. I knew it was coming.

Tim: Yeah. And now we’re like having a really hard time selling this thing. And now we’re like way over budget because all the flood fixing that we have to do. And then so Harvey hit. So it’s like the third flood for this house in a year and a half. It’s crazy. But what I’ve learned from it was navigating the insurance claim. Luck as that, we know that property was in a flood zone so we have flood insurance. A lot of properties in Houston that was not in a flood zone that got flooded that people kinda get lucked out with that.

So through that process, we learned how to present our plan so that way we get more money for it, we get the money faster. So now been through this hell, now I don’t mind flood homes at all. To me it’s like, if it floods every year, every few years, that’s even better. It only takes a few floods to pay off the house.

Tom: That is a positive attitude around flooding. I love it.

Matt: Yeah. You know, my two best performing investments last year were houses that burned down.

Tom: Wow.

Matt: So I get it. And we had them both insured for replacement value, which was double the actual market value.

Tim: Wow.

Matt: Those were fantastic.

Tom: Those were tenants, those were rentals?

Matt: Yeah, both rentals.

Tom: Really? And they both burnt down?

Matt: They did.

Tom: Was that in those California fires or was it just-

Matt: No. It was actually both in Memphis and one was an electrical fire and one was a mystery.

Tom: You’re kidding me? Wow.

Matt: No. Here’s a funny story. One of the houses that burned down, it was actually the first one that burned down, I was in Memphis for the only day that year, or this year. I was in Memphis for the only day this year touring all of my rentals, which I don’t think I’ve ever done. It was just like making a visit to look at everything.

Tom: Right.

Matt: And we had 16 that we were gonna stop by that day. And so we grouped them all together, we went by the 15, and we were just tired and Beal Street was calling our name. We were ready to go have a beer and said, I was like … and they’re all looking the same at this point. And the other one was just a little to far, I was like, “Forget it. Everything’s fine.” So we went and I actually got a text message from my property manager while we were in the bar saying that one was on fire.

Tom: Oh man.

Matt: And it was like, oh my God. If we would have driven by it, at that very moment, we would have been watching it burn.

Tom: Oh wow.

Matt: And then I really started to panic. I was like, “Oh my God. The insurance investors are gonna investigate. They’re gonna wonder what was I doing in [00:28:44]

Tom: The one day.

Matt: You couldn’t … I was … yeah. Anyway.

Tom: Now do you get it from closing or do you just buy them out there because you like the market? I’m just curious.

Matt: No, we got our own team in Memphis. We got our own team in 10 different markets.

Tom: Oh you do. Wow. Okay.

Matt: Yeah.

Tom: Okay, yeah. That’s awesome. So I had some properties that I bought out of state, but I’ve been struggling with them, but so I kinda just like brought everything back home. But that’s interesting, that’s good stuff. Yeah, I know a lot of people in that market. It’s a good market.

Matt: Yeah. It’s a good market. And weak, when we talk about uninvolved income, passive income, we have one person in the office that manages the property managers in all 10 states.

Tom: Wow.

Matt: That’s there-

Tom: [00:29:25] in 10 states. That’s awesome.

Matt: Yeah. Or not 10 states, 10 markets. Not 10 states, 10 markets.

Tom: Okay.

Matt: Sweet. So all right. Let’s turn this to a more positive note. What’s the best book you’ve read in the last 12 months and what did you find most valuable about it? Tom?

Tom: Oh man.

Matt: You’re a big reader, I think, right?

Tom: I am a huge reader. It’s gonna be hard to narrow down one. But I will tell you the best one that I have read, well I will tell you this, the best one, speaking of that Rich Dad, Poor Dad book behind you was Michael Singer wrote a book called The Surrender Experiment. Read that book. Total game changer. Went to lunch, got a chance to meet Robert Kiyosaki. Turned out that he was into that book. Huge, big fan of Michael Singer. And we started talking about that book and that’s how we ended up hanging out and it’s awesome.

Tom: But there is a ton of them-

Matt: The Surrender Experiment?

Tom: The Surrender Experiment by Michael Singer.

Matt: What’s it about?

Tom: It’s a great book. I’ll tell you what it’s about. It really comes down to one passage in the book, “It’s all about learning that in this life there are no inconveniences. There are only opportunities to serve.”

Matt: Got it.

Tom: So all these people who are struggling and they’re saying, “What’s my why? What is this thing driver?” One thing I’ve learned, I used to always tell people, “You could keep discipline. I’ll take passion. It’s much more powerful.” But what I really found out is that purpose, that’s the driver. Forget … a purpose will leave passion in the dust and one thing that Robert Kiyosaki taught me was he said, “Passion is what you wanna do and purpose is what God wants you to do.” And I am telling you, that is such a message [crosstalk 00:31:10] It’s just been really

Tim: I love that.

Tom: Yeah. I love it. It’s a great book. Everyone should check it out.

Matt: That’s awesome. I think the book called Driven or Drive. I think it’s a pink cover. But it was about creating you, putting your employees and your team in positions where they actually have a purpose. And that was the biggest motivator and driver of being a successful company.

Tom: Oh yeah. Awesome.

Matt: Tim?

Tim: Yeah.

Matt: Best book, last 12 months, what’d you learn from it?

Tim: Yeah. The Five Seconds Rule. I don’t know if you’ve heard, by Mel Robbins.

Matt: Yeah, that came up on our last episode I think.

Tim: Oh yeah?

Matt: So it’s a lot about how long you can keep the food on the ground that you dropped? You get five seconds.

Tim: Yes. Yeah. So I love that book a lot. One of my weakness in terms of discipline has to do with the workout. And it’s just something that I haven’t made a priority in most of my life. And so just going to the gym is a big effort for me and so that’s my favorite book for the last 12 months.

Matt: So what is the actual five-second rule? Is it …

Tim: Yeah. So basically anything that you wanna do, the best way to get it done and overcome your roadblock of not … your procrastination is to countdown five, four, three, two, one and then take off is when you go and take that action. So that way it blocks your brain by counting down, it blocks your brain from trying to get out of that because you’re focused on the counting. And then you countdown and then you go to work with us. In my case, it’s like getting out of the house to go to a gym.

Matt: And they wrote a whole book on that?

Tim: They wrote a whole book on that.

Tom: That book works. That book works. I will tell you Mel Robbins is a genius because you know what happens is it’s something a commitment you make to yourself, it’s the countdown, it’s not the activity. It’s this one thing if I do five, four, three, two, one, and that is another, that’s a fantastic book. It works. The whole book is about the scientific reasons why it works and the psychology.

Matt: Nice.

Tom: It’s a game changer.

Matt: All right. Shoot. That’s two sessions in a row. I have to check it out. So Tom, what’s in your future right now that has you most excited and why?

Tom: Oh man. We have a lot of good stuff going on brother.

Matt: You are an excited individual so I knew you were gonna love this question.

Tom: Well I’ll tell you what, if you gain 20 pounds and you come down to Florida and start cutting lawns and then you move into real estate, you’d be excited to ’cause I do not have the body type for the lawns that I was cutting before I got into real estate.

Matt: I thought you looked a little different.

Tom: Yeah. I will tell you. So I’ve got a lot of stuff. One of the things on my plate for this year is to say no. I have seen a lot of very successful men and women drown in opportunities. So one thing I’ve been working on is what to say yes to. I am working on a super exciting project with my stepbrother, Todd Tobeck [00:34:21] called next level wholesaling. I’m working on a really exciting program with Brian Trip called real estate investing live. It’s gonna be nationwide, for lack of a better word, [REA 00:34:31] meeting.

Tom: So we’re working on that. We’ve got some really awesome things that we’re working on for the wholesaling, our main coaching product. So it’s mostly everything I’m working on right now is in coaching. The wholesaling business, it essentially runs itself. Right now we’re looking at bringing in some subject to. We’re kinda predicting that there’s gonna be a little bit, some of the airs gonna be loud, the economy’s, so we’re kinda stashing a lot of cash right now and getting ready to find alternatives that we can pivot to when that happens.

So we’re doing a little preparation there. But yeah, that’s what the rest of this year looks like for 2018.

Matt: Awesome. Sounds great. I’d be excited too.

Tom: Yeah. Good stuff.

Matt: Tim, what’s in your future that has you most excited and why?

Tim: Yeah. So two things, two things. Number one, I started my Hard Money Lending business a year ago with two partners and that’s been growing really nicely.

Matt: Is that national Tim or is that in [00:35:27]

Tim: It’s just in Houston right now.

Matt: Okay.

Tim: You know, eventually we’ll take it further than that, but yeah, right now it’s just in Houston. So it’s really cool to kinda go from an investor to now a lender. It’s a different experience. I like it. I told my assistant like I never really was interested in the lending business that much. ‘Cause to me, I think it’s a really boring business. And the other, in it I’m like, “Damn. This is a really boring business, but it makes really good money.”

Matt: I think the older we get, the more boring the better.

Tim: Yeah. Right, exactly. It’s like yeah … I don’t have … you don’t have to do all the work that you have to do as an investor for sure.

Matt: I got a good friend, Joel Block, I don’t know if you know Joel. But he’s got a saying like, “You hit a certain level and you really discover that the money is actually in the money.”

Tim: I agree with that totally.

Matt: It’s like you’re experiencing that as well. Great. So that’s number one. What’s number two?

Tim: Yeah. So number two is so part of Harvey, the city of Houston was awarded a billion dollars from the federal government. And right now they’re working on, they’re putting out bids for $400 million contracts to remodel low-income neighborhoods in Houston for the homeowners that were affected by Harvey. And they’re gonna award this $400 million to six different companies and we’re applying to be one of those six. And so if we get this contract, it’ll be a lot of work, but to me, it’s just really cool to make that kind of a difference from a disaster like Harvey.

Tom: That’s awesome.

Matt: Sure.

Tom: That’s awesome.

Matt: Yeah, you’re gonna be busy for a while with that. You have to like rehab five houses a day for the next five years.

Tim: Yeah.

Tom: Oh man.

Tim: Yeah. Well, you suck it up.

Matt: Quite the infrastructure to build, but good luck to you. That’d be great. [00:37:35] That’d be awesome.

Tim: Yeah.

Matt: That’s super. So Tom, if anybody wanted to get in touch with you, what would be the best way for them to do that?

Tom: Wholesaling Inc. Wholesalinginc.com is the best way to do that and we have some awesome stuff up there. We have an awesome event coming up in North Carolina that we’re gonna, anyone’s invited to so they could check that out. It’s gonna be pretty cool.

Matt: All the info’s right there. Wholesalinginc.com.

Tom: That’s it.

Matt: Perfect. Great. Tim, if someone wanted to get in touch with you, what’s the best way for them to do that?

Tim: Yeah so if you’re in the Houston market, go to texasfastfunding.com, texasfastfunding.com. If you’re outside of Houston, go to dodealscash.com. I have an affiliate to loan money outside of my market.

Matt: Super.

Tim: And Facebook me of course.

Matt: Great. Great. Well, thanks for participating in this episode of mastermind money. Let’s do it again soon.

Tom: Yup.

Matt: Sweet. All righty. If you’d like to do deals, you’d like to build wells, stayed tuned right here. We’re here seven days a week. Now we hold nothing back as you can tell by today, but if you’d like to go fast, go to reiace.com. [inaudible 00:38:45] until next week, I’m Matt Theriault. To your success. God bless. Living the dream.