Epic Real Estate Investing - A Totally NEW Lead Source - Phillip Vincent | 866

Episode Date: December 14, 2019

This weekend, Matt is joined with Philip Vincent, a CEO of Mom’s House and a real estate expert with 22 years of professional experience! Stay tuned because Philip shares his unique approach to generating leads, more specifically, why he chooses a specific group of motivated sellers for his investment properties.  Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-Aase.com.

Here's Matt. All right, I got a great, great show for you today, a very special guest. He's been investing in real estate for 22 years. He's bought hundreds of houses over the years from some very happy sellers. There's not much. He has not seen, so he can come up with great solutions in almost any situation. He's a serial entrepreneur and is always excited to help and learn new things and has something new and exciting.

He wants to talk about today, and he shared it with me. I thought it was extremely interesting. So I asked him to come on the show today and share it with you. So please help me welcome. Mr. Philip, Vincent, Philip, welcome to the Epic Real Estate Investing Show. Hi, guys. How are you doing today? They can't hear you, Philip. Right now they can't?

No, they don't respond. Good. Welcome to have. I'm glad to have you. We got a lot of mutual friends, really good friends of mine. We have mutual friends together. And so that tells me, you're probably a pretty cool dude. And I'm glad to have you here. So thanks for taking time out of your day to come and share. And I guess just gave us a little bit of your background first. I mean, I know you're a very accomplished real estate investors, so kind of give me an idea of what that history looks like for you. It's been 22 years. Sure.

I always say that I did this business backwards. When I was 21 years old, I built my first house. I did new construction at 21 for myself. And I think I worked my way back into wholesaling. So I went from new construction to wholesaling where a lot of guys start up, what do they always say? I'm going to do some wholesale, then I'm going to do some flips, and I'm going to do some rentals, then I'm going to get into development and maybe be a big, be a business. builder. And so I did it the opposite way. And I think in my, I'm 41 years old. I think in my time,

you start to learn what you're good at and you start to learn what you like and you realize that your time is your most valuable asset. And so I work with a pretty big buying group out of St. Louis. We buy a couple hundred houses a year. My only role is to do acquisitions. That's it. I don't do the construction side. I don't do the, I don't show up at closing. You know, I just do acquisitions. So it's allowed me to focus on finding the best deals, procuring deals. That's all I focus on. So you answer the phone and do you go on the appointments also? I don't answer the phone.

We have somebody that does that, but they set appointments up, then I call to reconfirm and then I go on the appointments. Okay, got it. All right. So let's get, before we get into what we're going to talk about, let's talk about something really tactical and useful that someone could share or someone that could borrow. When you go out on an appointment, can you kind of walk me through of what your process looks like? I'm sure you got to dial in after that. Sure.

Oh, my gosh, yeah. So, you know, obviously I'd like to do my research before I go on the comparables. How much research do you do? How much? Not much. 10, 15 minutes. MLS research, right? And so what I'm looking for is the comps.

And then I was always raised in a way where if I wasn't 15 minutes early, I was late. And so in my world, if I have a 1 o'clock appointment, you better believe I'm there at 1245. And the reason why is I want to drive around the neighborhood. and I don't only see what my comps were, but see where they are in the neighborhood. So many rookie investors don't realize that the house on the train tracks versus the one that's back to the golf course.

They're like, oh, it's the same subdivision. It's like, yes, but they're not the same property, right? And so I want to make sure that there's nothing different. You know, we like normal, right? In our business, we don't like weird. So if it's all normal, then it's great. You feel confident. You're only as good as what you know your comp is.

And so I think doing your research there, getting there early, when your neighbor says, yeah, well, my neighbor's household for 185, I think mine's worth 185, you better have the ammunition to say, yes, but his has the, you know, go down the line, the pool, it's not on the highway, it's boom, boom. And once you show them that you know what you're talking about, it really helps you show them that you're the expert in this and that you know what you're talking about.

And then I mean, you're asking me, What do I do? People don't smile. Look at these teeth. You can build rapport before the front door is open. When you smile at somebody, it kind of sets them at ease that this person's not going to be a dick, right? I can say that. It immediately sets them at ease that you're there to help them. A nice warm handshake and a smile goes a long way. And I see so many people in our business do the opposite. They're negative. They're cold. They point out all the flaws. They don't even talk. to the person, they come through, and they take their pictures, and they leave, and they say, I'll call you later. I'm like, for me, I love it because that makes me, I'm going to win in that situation. My competition is doing. So I'm the opposite. I'm warm and fuzzy.

Got it. I like it. So you do your research. You know the comps, just in case those come up. Because a lot of times in today's world, I mean, we've been doing this for a really long time. The internet wasn't nearly as prevalent now as it is, or isn't, wasn't nearly as prevalent, as it is now. Sellers in some cases could be even more educated than us if we're not careful, right? A lot of times if you're not careful.

Yep, absolutely. And then a good smile and a handshake and just be impersonable. Any other tips or tricks to get your price and getting the offer signed? Sure. I tell them out of the gate,

I am there for one reason and that is to buy their house. I don't beat around the bush. A lot of guys are scared to talk about numbers there with the customer. I don't. there to buy the house, they can agree with me or not, but I'm very transparent with what I think the house will sell for, but I think needs to be rehabbed on it, where I need to buy it at, and

kind of the range where I'm going to be. So many people say, I'll just get back with you, and then two weeks later, they still haven't gotten an offer. And in my mind, I don't even know why they go on the appointment then. If they're not there to buy the house, what was the point? You just wasted your time. And so report building is big for me. I bought countless houses for less money than the other offer because they liked me. And that's a big deal. You have to be like and trustworthy. You have to know what you're saying and be trustworthy. Right. No, that's a really common story of, uh, they bought it from me because they liked me or they sold it to me because they liked me, right? Yeah. Super. Well, cool. All right. So 200 houses a year. That's a lot. You

guys are doing really well. You obviously know what you're doing. But, uh, what was really interesting to me was the big portion of where these properties are actually coming from, where your leads are coming from. So explain to me and just kind of bring us all up to speed on that. Sure. I think my epiphany moment was, you know, when you have a big company that's doing that type of numbers, you go over your numbers once a week, right? And so we're always looking at where the money is being spent. We're just like everybody else.

We do letters. We do pay-per-click. We do Facebook now. Ringless voicemail, not as much. But my point is we're always following the trends. You know, we're always looking at what's working now. We understand that maybe yellow pages that work 10 years ago. It doesn't work today like it used to 10 years ago.

You're always changing. And so the epiphany moment was when I looked at what these sellers look like. This was back in 2011. And I said, what's the similarity about all these sellers? And almost always, it was an adult child helping their mom or dad move into senior living. And I thought to myself, well, that's interesting. You know, it makes sense, right? They don't need the house anymore.

They usually have equity. So in 2011, I set out to really dive into a lead source. that maybe a lot of people haven't thought about yet, which is going directly to the senior living communities and saying, this question, right, I'm going to say a question right now that I think is worth, this question alone is worth $15,000 for your listeners, right? One sentence.

Got it. Do you ever have a situation where they want to move mom in, but they can't until they sell the house? This is what I say to the senior living communities. I always get a chuckle. They laugh and they say, yeah, I feel I got a whole drawer over. Right over here, it's full of them, right? because every person that walks in needs to sell their house.

That's their biggest piece. There's equity there, but they haven't unlocked it until they sold it, right? And so when you find out that your mom has to move into senior living, the last thing you want to do with your sisters and brothers is to rehab the house to try to get top dollar. Right. And if I can tell a stereotypical story would be, dad died eight years ago. Mom's been in the house on her own for eight years.

She's doing the best she can. You know, she's on a fixed income. she doesn't take care of it the way dad used to and, you know, she's getting older too. And then what happens is mom fell again. You know, you just don't take a healthy mom. You don't say, hey, mom, this weekend, we're going to go check out some senior living communities. She'd smack it, right?

She'd say, no. And so what happens is, especially around the holidays, you know, we just have Thanksgiving. We're going into Christmas. These families get together. And there's always one child that seems like the brunt of mom's care falls on. And the one child says to the brother's and, sisters, hey, at Thanksgiving this year, check out moms doing this and this and this, like some ticks or some things she's slower or not comprehending. And so they start to notice it.

What might happen is they say, hey, let's get some part-time help in here for mom or, you know, because a lot of, on average kids live 400 miles away from mom. So the one that lives in town, you know, that's usually one of this, I hate to use burden because it's your mother, right? But the weight of this aging in place falls on one of the children, right? In St. Louis, we've got a lot of families here that have six, seven, eight kids, right? So the kids are spread out all over the country, but there's one or two here, and they're the ones telling the rest of the kids, hey, this is happening. And then something tragic usually happens. Like, mom fell again, not once, but like the second time.

So she goes to rehab. Then the doctor comes in and says, hey, mom needs 24-hour care. She can't move back home. So that news that she can't move home is like a ton of bricks. And so there's three things. They say, well, where? Where's mom going to get the best care? What the hell do we do with the house?

And what do we do with all the stuff? And so I've taken it on myself to go out and build these relationships in St. Louis where the senior living communities give me, well, I'm a St. Louis guy. So I know you're a Dodgers fan. I'm a Cardinals fan. I need my at-bats, right? I need at-bats. And so what I've found is when you're referred from the senior living communities,

you're a rock star already, right? They already trust you. They say, oh, this feels a good guy. He's here to help us get mom into, you know, turn this house from a, liability into the cash that we need to pay for mom's care. And that's what I've done. And so for the past, I would say, well, since 2011, but really for the past three or four years, the majority of my leads come from this source and they cost me zero.

So the epiphany moment was when we're looking at the boards and we say, man, pay-per-click ads cost us six, seven grand to acquire a house. Facebook leads cost $4,500 to acquire a house. direct mail costs 2,200 to acquire, you know, all these things, the cost to actually close on a deal. And then you saw the Phillips Senior Living Leeds, zero. You're like, well, that's awesome, right? And it's one of these things where when we mail letters, at most they might be able to sell you one house, maybe they have a rental. But when you build leads in senior living, you're planting seeds where the harvest could come in every single month.

And that's what I'm excited about right now is to kind of go to the market, the nation's, wide market and say, hey guys, there's something that we've all been missing or nobody's been really shouting from the rooftops. And that's what I'm doing. So talking to guys like you is a big step and kind of getting this message out of where my best leads come from. Got it. Yeah, there's two things that make a lot of sense to me. One is it's why I'm such a big proponent on just sending personal handwritten notes after meetings and developing relationships. And I'm really big into live events like RIA clubs and meetup groups because those are all, when those leads come to you, they don't cost anything, right? So I get that for sure. And I wish people

more people would embrace that. And the second thing that you said, it all makes sense because people are trying to figure out how do we get the probate list? How do we get the inheritance list, right? How do we market to people that are downsizing or the empty nesters or the, you know, they're always looking for that older demographic or on the verge of, you know, transition? And, you know, they want to do that. So you just went straight to the source almost. That's it. And the timing could not be better. The timing is perfect. I work a lot with, they're called placement agents. So if you don't know what a placement agent is, it's almost like a real estate agent for senior living. So if my mom today needed senior living care, I wouldn't know where to turn. So you

hire these placement agents to go out and say, based on mom's income, based on mom's level. By the way, there's like nine different levels of care. So everyone, when they get thrown into this, their head spends and you know what I mean they don't know what's you know they they have to rely on somebody and so these placement agents say hey move to brookview or brookdale or some view it's always something to view garden view uh but also this guy will help you uh pay for it because he'll buy the house as it sits if you have brothers and sisters everyone knows that the family dynamic is um can be a cluster right even in happy families the family dynamic can be a pain in the ass and so i've had guys that are rehabbers by trade sell me a house because they didn't want to rehab the house and make a penny

off of mom's house because they knew the rest of the kids would use it against him at every I can't say what he said but every family reunion from here on out he says I don't want to be MF to every family reunion from here on out and that was a guy in the business and so right when you take in the family dynamic I was getting at there's two things I look at for that makes it a good lead and it's motivation and equity these people have the most motivation ever and they almost always have 100% equity. What else are we looking for in real estate, guys? I mean, this is it.

These are the leads we're looking for every day. And when I go to the market, I just don't want to sell these leads or bring these leads to anyone. I really do care about these families. Like that's that passion inside of me to take care of these people. To have trust with the senior living communities,

you have to be professional, right? It's not like anybody can buy a pay-per-click lead and you can run it down however you want With this, it's, I feel like you have to have the wherewithal to do what you say. You have to be able to close on something. You know, this is designed for people that have probably been in this business for a minute. Mm-hmm. Mm-hmm.

Got it. I agree. I think there's another important aspect of this. I mean, you're on the brink or just right on the front end. I mean, you've been benefiting from this for a while. But if you look when my mom just passed away, like six, seven months ago. and she was on the very front end, the very first year of the baby boomers being born.

And you can go through every single industry, and it will be impacted by a swell of or a bubble in the, in generations or in the demographics, right? You know, back in the, when my mom was born, I mean, because of the baby boomers, that's when Gerber baby food was blew up, right? Right. And they became teenagers and Levi's and the Ford Mustang blew up.

up, right? And Lee Iacocca changed the whole company of Chrysler around by introducing the world to the minivan. Right. And you can just follow that the demographic there. And what's really good news is each generation is a little bit bigger than the previous. But here we are with the baby boomers. They're moving in and they're needing this type of care.

And they are in that phase of life, that season of life. So this is a really huge opportunity. Gosh, you stand to really. do very well for yourself financially while you're doing a really good deed as well. So what's the story? I mean, you're here today and are you showing people how to do this? Are you helping them do this? How can I help you?

How can you help us? That's a great question. So I've created a boot camp and the boot camp I'm going to push out to the nation, right, to say, hey, really, I guess what I should take a step back. I've created a problem for myself, and this problem is a good thing, is that in my networking with senior living communities, I've now have nationwide connections for these leads. Okay. I don't have coverage nationwide. So like in St. Louis, if you gave me a zip code and a street name, I could probably tell you what it's worth.

Take me to Baltimore, take me to Los Angeles. I don't know. Take me to, you know, right? To learn the nuances, you know, I have 22 years experience in St. Louis, but to learn the nuances of every city and to put, boots on the ground in every city is not what I want to do. There's local experts, like you talked about the RIA clubs, right? There's local people that would be perfect for this in every single city. And so I need coverage in every major city. There's about 300 cities that I have your mark where I would have potential leads coming in. There's 28,000 senior living

communities. And so I look at the education that I have two ways. Some guys are self-starters. I'll teach them the education. They can go out on their own. They can make their connections and build these leads and they'll get these leads ongoing, right? The other way is I know that people want to be part of something bigger. This project is called Mom's House. We haven't said that yet, mom's house.com. You go to Mom's House. That's where these leads are going to be coming in through, the filter back to the investors.

And I'm looking for vetted good investors that can learn my system and have this be part of their art. It can be their only art. It really, there's probably enough leads here to be the only marketing they do, but I really think it's best when it augments an already up and running real estate team or business, right? That's what I'm going after. So a guy like you that has this nationwide network of listeners, I want to talk to the best and the brightest in every city. That's my opinion.

You're not looking for beginners. Could I? Yes. If you're a passionate person that understands how to help people, but I don't want to teach you how to write a contract. I don't want to teach you how to close a deal. You know, this is, you know, I'm doing about 50 deals a year from this source. that's what is that five a month something like that for you know four point five a month that's one a week and do you have the ability to close one house a week if so great let's talk you know that's just

st louis i mean i look at a city like chicago it's four times bigger you know i'm barely scratching the surface even in st louis and this thing's going to get really big and so i need coverage nationwide with the best and so does it work for a rookie maybe is the question i'm going to say this is built for guys that are already up and running with a real estate business that want to grow and what I think is to be an obvious place where the best things are coming from. Got it. Okay.

So it's not for everybody, but you've described who it is for and who you'd like to work with. Yeah. And if someone is hearing this message right now and it's resonating with them, what is the best way for them to learn more or to reach out to you? The best way would be contact me through momshouse.com, m-O-M-S-H-O-U-S-E-S-O-U-S-E.com. It's a great domain name. Thank you.

Yeah. The reason why, it's kind of a love. loving hug in the industry, even if you're dealing with the father sometimes, we still refer to it as what are we going to do with mom's house? You know, it's my house. You know, and it's kind of like a loving way, you know, you look at all the, uh, I buyer programs that are out there. It's kind of like machines by houses. Here's your offer, right? This opposite. I'm the, I'm the opposite in. This is, they need a hug. They're going through some shit right now. The family, I was at house this morning, right? Tools everywhere. Dad's tools, right? He was so concerned about the tools that the house was

kind of like, you know, the house is going to figure itself out, but I help them with the tools. I mean, I get hugs from grownups all the time because I have, you can almost see sometimes like the weight come off of their shoulders when I do what I do. And it's such a great feeling to help these people. And I'm just looking for houses that I can add value to. And so this is a pretty pretty great thing. Awesome. No, sounds like it. So that brain just brought up a question. So if you're being introduced to these families that have to sell mom's house, to help her move into her next location. Yeah, they are filled with stuff.

They are filled with dad's tools and stuff like that. What are some of the solutions that you have? Because even if someone doesn't get involved in this, that's a pretty frequent experience that we come up against with as real estate investors. What are some of the ways that you, I mean, do you just buy the stuff or you dispose of it and give them the cash? How does that work? What are your favorite solutions for that?

I've done all of those things. So you have to be a chameleon, right? I always say I'm not in the stuff business. I'm in the house business. But my goal is to help you get this house not only cleaned out, but anything I can help turn into cash for you, the seller, I just do that as a freebie, as a nicety. And so I've got a guy named Byron.

His company comes out and cleans them out once we buy them. I've got a guy named Randy that does estate sales there on site. There's estate sale companies, downsizing companies that I work with, that are good lead sources that bring us in these senior deals. They're there. It might take two, three months sometimes to clean these houses out. And so I get that window of opportunity to get in there and get the house bought while they're doing that way before it ever gets thought about being listed in the open market, right?

You're right. Like the timing couldn't be better. And so the stuff actually gives us a little bit of buffer because if they ever talk to a real estate agent, what's the agent one? He or she comes in and says, I'll list this house, but you've got to clean it out first. Right. You got to, here's the list of things I want you to do before I put my name on it. Here's the picture guy you're going.

And they're like going, I don't have time for this. I live in North Carolina. And this house is in St. Louis. They're like, what? I'm not going to do this. And so if you can treat them fairly and take care and do what you say you're going to do, you can buy a lot of houses. And what I also like is, I don't even want to say with my clothes ratio.

It's so high on these deals because I don't know how good the other. I'm a known as a good closer anyway in St. Louis. But with these deals, they're the best. because these people need me at the exact right time. They're drowning and I'm throwing out live fest, right? I mean, it's easy business. Right. Yeah, the foundation of every deal lies within the seller's motivation to sell.

You got it. You got it. And so you've got highly motivated people and people that are ready, willing and able. So that's good. Let's see. There's something else came up. I keep forgetting what I'm going to ask you because I'm actually listening to what you're saying.

That's very good thing, right? but I would try to move this along and have it really and get a good direction here and get a good result for you. It's funny you mentioned about realtors because I just moved to Vegas and I've been dealing with a lot more realtors than I have in a very long time. And I was a realtor for the first four years. So I had my own opinion of realtors. And I have to say today, it hasn't changed at all since my experience with them. Yeah, the opinion is maybe even worse. I just, I was like, wow.

There's 14,000 licensees in Las Vegas. And boy, their poop don't stink, according to them. Every day, you look at the higher level of what's happening in real estate. They're being on your mind every single step of the way. Yeah. The importance of them are going, and I know, and people don't want to hear this, but that's the truth. If you look at what the I buyer programs are, what Zillow is doing, freaking Zillow. They used to sell us our faces next to our own listings, right?

And how they ever became a billion-dollar companies besides me. Now these guys want to buy the houses from? I mean, no. No. I mean, so I don't know. I'm not relying on that. This is a very non-MLS business is what I'm doing. Yeah.

Yeah, so kind of where I was going with that was two areas. Like, realtors are getting pushed out because they can't get out of their own way, first of all. Yep. And second of all, most aren't problem-solving oriented. And that's very much what we are as investors. and that trait can be really, really powerful in the realm that you're addressing right now. It's one of the biggest chapters that I teach about being able to adapt. One big one that I do is almost like a drop in the mic is like,

I will close and give you an extra three days, four days, five days a week to get your stuff out the rest of the way. They are so overwhelmed with the stuff that if I give them and say, oh, man, mom gets your money and we get a little more time, they love it. It's music to their ears. Yep, yep. Yeah, you just got to find the right solution that fits their problem, right? Yeah. Perfect.

So momshouse.com, if you want to learn more, I imagine, Philip, you've got very clear instructions on what theirs to do once they get there, they'll know. I do. The investor page, we're going to see what territories are available. It just hit me up. I'd like to talk to the people that think they're right for this. Perfect. Well, it's been a pleasure.

Let's do this again because I've got a feeling you're going to be busy for a very, very long time. And then anybody being associated with you will be a good. busy as well. Thank you. All right, you bet. So momshouse.com, go check it out. And if it's a good fit, inquire within. And talk to Philip. He's a really cool guy and see if there's a match there. All righty. So that's it for today. God bless and to your success. I'm Matt Terrio. Live in the dream. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow.

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