Epic Real Estate Investing - Capital Trends for 2021 and Cost-Effective Lead Generation | 1125

Episode Date: February 20, 2021

If you are looking at a low-cost and effective way to find motivated sellers, tune in as Matt is joined with Aaron Pimpis, a CEO of The Ground Breaking Lead Generation Platform. Besides, you will find out how you can attend an online web class with Aaron and his team that will present their lead generation software! BUT WAIT! That’s not all! Matt has another guest for you! Keep listening and learn capital trends for 2021 with Joel Block from Bullseye Capital! 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 REI.

Ace.com. Here's Matt. Hey there, Epic Investor. It's Matt Terrio from Epic Real Estate, where we show people how to invest in real estate, using more of their mind than their money, deploying creative financing strategies, more headless bread in your investments,

all with an emphasis on retiring early. This is the Epic Real Estate Investing Show. Really glad that you found us, if this is your first time here. And if you like what you hear, make sure you hit the subscribe button before you go. And if this is not your first time here, welcome back. And thank you for sharing this with your friends and family.

You are Studs and Studettes for doing that. I really appreciate that. So thank you. All right, I've got two guests for you today. If you're looking for a low cost and effective way to find motivated sellers, I ask the CEO of a company that provides a product and service that does just that to join me today. So if you've been struggling with getting in front of motivated sellers, that interview, that conversation, I don't know if you can afford to miss it. So that's just for you. But first, returning guest, one of the smarter people I know when it comes to raising, managing, and growing capital is back with us to share his capital trends of 2021. He's updated his report on financial capital, human capital, intellectual capital, invisible capital, sales.

and marketing capital and a bonus section of emerging trends. And I'm going to ask him about some of the highlights in his new report. And then he'll tell you how to get a free copy for yourself. So without further ado, please help me welcome from Bullseye Capital, Mr. Joel Block. Joel, welcome back again to the Epic Real Estate Investing Show. Matt, how are you, man? I'm doing well. Happy New Year to you. Thank you.

Always good to hang with you at, you know, whether it's here or in purpose. person, whatever it is, always, always good. Likewise. I enjoy your company as well. You're a smart dude and we're back to talk about your capital trends of 2021. And I think the last time you were on the show, maybe there was something in between, but we talked about your trends of 2020. Yeah.

And so a lot's happened since. Yeah. I mean, the world has turned inside out and upside down. It sure has. And maybe that leads right into what I was going to ask is, you know, based on your predictions and your trends of 2020, what about 2020 really surprised you? Well, I'll tell you some. First of all, most of our trends did very well.

Now, of course, we didn't predict the pandemic. Nobody could. But most everything, these are business trends and they really survive very well. The companies that were using these kinds of modalities, for example, subscription revenue and that were being driven by leadership and the kind of vision and the kinds of things that we talked about in the report, they did much better than other people. And interestingly enough, I don't know about you, but many, many of the people that I'm around are doing better this year than they even were last year.

I mean, last year was a banner year for them. And that surprises a lot of people. Those of us who are creative, entrepreneurial, light on our feet, there are a lot of opportunities. A lot of things are broken. I'll tell you, we'll get around to this here, maybe toward the end, but I'll tell you that assets are going on sale in 2021. and people need to be positioned to buy assets. As we kind of get through this, we'll kind of talk through why that is,

but it will become very, very crystal clear and obvious that there are a lot of people who are hurting and those people have to sell what they sell. And the rest of us then that buy assets were able to help those people out of their problems. So we'll get to that toward the end. Yeah, for sure. And I would love to hear why you think so, because I'm kind of leaning towards you.

other direction, so that'll be good to compare the notes. So, yeah, I think being surprised, I think that that was a good one. I wasn't even thinking about that, but I know so many people around me that had their best year ever in 2020. Well, you know, a lot of people had their worst year ever because they were trying to do the same thing over and over again and the world changed 20 years overnight. And then there are other people that just reorganized themselves in every capacity, moving to virtual, changing their business model.

rethinking whatever they're doing, and they did very well. And there's a lesson there. And the lesson is that we have to go with the flow. And if the river changes course and moves to the right, stand to the left and hoping it comes back to the left isn't going to get you wet. I mean, we have to kind of go where the world's going and we have to pay attention. People like you, people like me, we share our ideas so that people who know us and want to hear what we have to say can follow some of what we see because we have the benefit maybe of talking

to many, many more people that other people do and kind of aggregating those ideas and sharing them and helping people to kind of get moving in the right direction. Mm-hmm. Mm-hmm. You know, speaking of that of people having to adapt and a lot of people brought their business at home, right, or brought their business to home and working for home. And I noticed in your latest trends list. By the way, if someone wanted to get a copy of this, what's the best place for them to go to get that?

They take out their mobile phone, open the texting app, put in the number 72,72,000, 7200, and then type in the word trend, T-R-E-N-D, singular trend. Got it, and then you get a copy. That's it. Full report. There's 29 different trends here that you might want to pay attention to. So I put out a few for us to talk about, and that was kind of the number 27 is working from home. It's here to stay. Well, it's here to stay. That doesn't mean that people are going to be going back to work.

I really think there'll be some hybrid model that'll be adapted or adopted in some capacity. Keep in mind that people like going to work. People like to socialize at work, especially younger people. A lot of the younger people make their friends there. Some people meet their spouses there. Many good things come out of it. A little older people have responsibilities that make it more convenient to work at home. like maybe they have children or animals or they care for parents or whatever their situation is. And so different people are going to want different things. But let's assume that on balance, 50% of the people go in and 50% of the people don't, whether they go in two days, three days, on average, let's say it's half.

I think that this is going to create an enormous, enormous change in our society at large. The whole society will be changed by this. and the patterns of how people buy real estate are going to be enormously affected by this. So, for example, first thing is to go to work, you've got to get in your car. If half as many people are getting in their car, that's a terrific thing for climate, you know, for global warming and all the other issues that people are concerned about. It's wonderful for traffic, you know, for a lot of the congestion that a lot of us deal with in big cities. But on the other hand, those are winners, but there are some losers too.

Oil companies and everything related to automotive is sort of a loser. You know, the Jiffy Loves, all these different companies that supply services for automobiles that maybe drive 15,000 miles a year may not need to sell as much stuff to people who are driving 8 or 10,000 miles a year. So that could be a big change. that one of the big losers are going to be cities, towns, and governments because there's going to be a lot less traffic tickets written, a lot less parking tickets issued, a lot less sales tax collected in parking garages and other places. So a lot of what they've established as their revenue streams stands to go away or morph into something else, which they are not on top of yet. and they're going to have a lot of work to do to get on top of it.

No, I can see that kind of trickles down and it impacts. Yeah, so right, right. So then let's say these people now they get into the city. Well, you know, a company that had 20 stories of an office building now maybe only needs 10. And all the other landlords are going to be dealing with the same thing because all the companies are only going to need 10 instead of 20. Well, so that makes commercial real estate sort of a bad bet for a while. Now, that doesn't mean that for professional investors, it's a bad bet, but for many people,

it's going to be a big problem. So, you know, when I talk about assets going on sale, the value of commercial real estate in urban areas is going down. Same thing for the restaurants. 50% of the people in downtown means that there's only going to be 50% of the people in their restaurants, getting their shoes shine, going to, I don't know, whatever the other facilities are that are all downtown. So commercial utilization is going to go down and it's going to go very much.

very soft. And in a place like Manhattan, where it just, it's enormously dense, I can imagine that these giant buildings, 46 floors of people are going to be moved to New Jersey. You know, why put them to work in a very expensive place like New York when they can work in New Jersey for much less and then have phone lines that are moving data back and forth? So New York's got this giant infrastructure. The city is not going to get taxed and all those people. The subways aren't going to have enough dollars to pay for themselves. So there's going to be this enormous shuffle. And when I talk about the ownership shuffle,

you know, commercial real estate maybe ended up converting into residential use or something else. You know, so that's what I'm talking about the shuffle. There's going to be an enormous shuffle the way assets are used. And it's going to be very substantial. So those are a couple of implications. We could talk about any more that you want. But those are some of the big implications that are going to come. from working at home.

And by the way, and then what happens is it makes it possible for people to live further away. If they're not driving in, they want larger homes because they want to put an office in their home. Maybe they want to put an exercise room in their home because they're not going to the gym anymore. So what that means is that people may move further away beyond the suburban, you know, areas into even what are rural areas. And so new developments will come in those areas and there'll be more sprawl. and things will get a little more spread out. So those are some of the big things that I see happen. Right.

You know, I was listening to a Joe Rogan podcast. Remember the old comedian Tom Green? I think so. You remember him? He was on MTV for a while and kind of a wild and zanny guy who got famous by playing pranks on his parents while they were sleeping. It was pretty funny to watch. You just didn't want to be the dad because the dad got the worst of it. But he was talking like his life has totally changed.

and he kind of taken up and converted one of these big giant sprinter Mercedes-Benz vans, put the solar panels on top, and he's running his podcast and his YouTube channel, everything right out of his van. He's just touring the country, and he's creating all this stuff. So anyway, it just kind of sent me down this little rabbit hole because the way he described it, it sounded very romantic. I was like, oh, that sounds like a lot of fun. And so I started looking and researching, and gosh, there's a whole trend on, what do you call it,

on YouTube and then the hashtags on Instagram and it sent me down this whole spiral of how people can work from anywhere, like, because that's kind of what he's doing. And people like, not even like, if you go right out here, I live right by a Red Rock Canyon here in Vegas. And every morning, there's a big rock climbing place. But every time, you can go there any time of the day and there's just vans parked out, just tons of these sprinter vans and vans like it, all just parked out there. And you can see when they have their doors open.

People are living in their vans and work. from their vans and travel in the country. Well, think about this. If you didn't have to be, you know, shackled to a certain location, what could you do? Yeah. I mean, you could think about all the fun. I mean, there's no limit. It's your imagination only.

Yeah. And it's real for people. If you didn't have to buy real estate, I mean, it's well known that these extras and different people are not as into, you know, owning homes as older people are. and the idea for them of just adventure and experience is so valuable. So imagine for them just, hey, listen, you know what? I can cash your money electronically. I can be on the phone.

I can use the internet. I can do the things that I do. I can produce music. I can produce podcasts, whatever you produce. And all these things are delivered electronically. There's a whole group of people in our society, and it's millions and millions of people that have that luxury. Now, there are a lot of people who have factory jobs.

blue collar jobs and they have no flexibility. Those are people that are really at the mercy of others. And that's a shame. Those are not our audience. But we have to be fortunate and be thankful that we have the capacity that we do because we're in an intellectual property type business. We're doing something that enables us to have great gifts. For sure.

For sure. Super. So another one caught my eye on your trends report. Number eight, up your game. Well, you know, here's the thing. Let's start with number seven, money follows expertise. Okay. Because one is for business, one is for people.

So for people, money follows expertise. You teach people how to do something. I teach people how to do something. And let me promise you, if people don't get good at it, they'll never make the money that they want. And that's why you have to line yourself with people who know what they're doing. And this is not a commercial for either of us. But I'm just telling you that people who do better at things make more money.

That's by and large, true. And in this economy, think again about this work-from-home thing that, let's say that, you know, you right now work for a company in your town. Well, all of a sudden, now you can work for any company in any town. And let's hear you're really a hot crack-a-jack type salesman or salesperson. Wouldn't you think a company across the country would like to have you and maybe at a much, much higher rate of pay. So companies are going to have access to better employees, and employees are going to have

access to better companies. But what that means is the competition is going to get more stiff, and you need to get better at what you do, whether it's flipping real estate, flipping burgers, or shuffling paper. It doesn't matter what it is, but you need to be the best that you can be in that job. And then the number eight one is up your game. That's companies have to continue to up their game. They have to be better employers. They have to build better resumes, meaning they have better people.

Jeff Bezos is brilliant at this, that he doesn't keep reinventing himself. AT&T has reinvented itself over and over again as time has changed, and that's been brilliant. But Jeff Bezos has been brilliant at continually upping his game. So he keeps raising the bar. First, we're going to do e-commerce. Now we're going to do prime so we can have better shipping. Then we're going to do the next thing and the next thing. And then it just keeps raising the bar and everything.

everybody's compared to him, and all companies have to think about themselves in the same way. So I would just tell all of the listeners, you have to be at the top of your game, you have to be the best that you can be, and you've got to get around people who can help you be the best that you can be. Otherwise, you're going to be squashed by people who are better than you, and the world is about getting better and better and better. And I will tell you that it has something to do with alignment with who your friends are, who your mentors are. who you look up to and who you associate with. Correct. No, I couldn't agree more.

And looking at it from one perspective, the other perspective that I think would agree is, you know, we've got a new administration coming in and a lot of changes have happened in the last few weeks. And but one of the things on the table right now is this idea of, um, increasing the minimum wage.

And I see that as, you know, someone like a Jeff Bezos, they're going to be able to afford that. They'll be able to withstand that. The Walmarts of the world will be able to withstand that. I'm sure, though, with the flip of a switch, they'll pass it on to the consumers anyway.

But I look at the small businesses. I mean, it's 50% of our workforces employed by small business. And going through this pandemic of 2020, it became very clear that small businesses are just a couple months away from being out of business. Just because you're a business owner, It doesn't mean you're this wealthy person that can withstand, you know, whatever gets thrown at it.

So I see this $15 minimum wage being something like that to really put a stress on them. And this is a stress on these businesses after they come out of this pandemic limping, trying to recover. And the whole point there is they're going to keep the best of the best. They're going to have to let some people go. They're going to have to make some sacrifices. They're going to have to cut some expenses. And they're going to keep the best of the best of their employees. Well, I see it's similar, but let's take it a step or two further.

We have a situation here in Los Angeles right this minute where a lot of supermarkets and places where there are frontline workers that have to work at these essential workers. They were awarded by the city what's called hero pay. So it's like frontline worker bonus pay. It's like $4 or $5 an hour extra. And you know what's happening now is the places that employless people are starting to close. And cities and communities are losing hundreds and hundreds. hundreds of jobs. I mean, like markets and these places that have very razor-thin margins,

they're being forced out of business. And what the government frequently does not realize, who's paying the hero pay? I haven't heard about this, actually. Yeah, this is something that's happening in California. Okay. And so it's- Who pays that in California or the actual? No, no, no. They passed a law that said if you have frontline workers that are made to work like grocery stores, you must pay them extra. And a lot of times this is happening city by city. So Long Beach has this hero pay thing going on. And they're required to pay this certain extra bonus pay, which is a very nice idea. Listen, no one disagrees that it's a nice idea.

Right. Everyone wants everybody to make more money. Of course. Listen, everybody wants everybody to have a good life. Everybody wants everybody to be able to take care of themselves. But part of it goes back to up your game, too, and money follows expertise. If people would up their game a little bit, they'd be worth a little more and they get more money. But what's happening is that these businesses,

cannot afford to do this and they're running out of money and they're going broke. And so what the governments frequently don't realize is that businesses have choices. Governments raise taxes and then people choose to leave the state. And then the state ends up with less money than it had before. So then it has to extra tax the people that are left and then more people leave. And it's so let's talk about the minimum wage because you're talking about, you know, what happens. Well, at some point, let's see you're paying $8 or $9 an hour and you get forced up to $15 an hour. At some point in time, the business owner says, you know, I want to.

I wonder what it would cost to get a robot to cashier the money. Get a computer, let's say it costs $10,000 to buy one, but then it basically costs almost nothing to run it. They do a break-even analysis and they figure out, you know what, that's $6 an hour. I break even in 14 months or 12 months or whatever the number of months. I'm going to do that. And I'm going to let 80% of my workforce go. So in a certain way, sometimes the government does things that have these unintended

and consequences because businesses have choices. Everybody has a choice and the government does something and then we respond to it. And then they respond to that. It goes back and we're playing ping pong with the government. And that's something that we got to pay attention to. But, you know, when you talk about $15 an hour workforce, McDonald's, I mean, how many McDonald's you ever been to? Then now that you go up and it's like a computer and you slide your credit card, everything

is paid. And basically there's a person at the front that just gives you the tray. So I would imagine that these McDonald's have many less workers than they had before. And that's unfortunate because McDonald's was a great employer. And they gave people that really had disadvantages, certain kinds of problems. They were very, very nice to those kind of people. But at $15 an hour, they can't really afford to be too nice. Now it's all business.

That's happened in, guys, there's one airport. I've been in there multiple times. Maybe it's Dallas, maybe it's Atlanta. but, you know, if you go to the bar, it's all just iPad now. Yeah, well, there's not a waitress. There's not, there's half the bar. So think about that. So, you know, on the one hand, it's kind of a cool thing for the consumers.

It's kind of fun for us. I mean, there's a little novelty. But the reason they do that is because somebody has probably put them in a situation where they had to do some analysis and think about it. Because it costs, they don't just put that there for fun because it costs a lot of money to put those kinds of systems in. They're doing an analysis saying, we're going to save money. And, you know, when you have a very low base pay and these people are getting good tips, they wouldn't be putting in, if they got low-priced labor, they wouldn't be putting in computers.

But with high-price labor, they're doing an analysis and then, you know, they make a decision. And unfortunately, that decision has very, very serious impact on the exact people the government's trying to help. Crazy. Up your game. that's the model for that one for sure. I've always been about that, constant and never-ending improvement, right? Oh, you know, listen, I hope that this is better news than bad news.

You know, I mean, it's, I think that we're, when we get on the other side of this and this is a tough go here, we're going to be so much better off. But there's just some tough times, and there's some strategies like up your game that people can use to be at the top of the pile. You know, somebody's going to be at the bottom of the pile. There are people going to be at the top of the pile.

So I hope your people, Matt, are going to be at the top of the pile. So I hope your people, Matt, are going to be at the top of the pile. the pile, they read this report. This is Wall Street material, you know. I've got a, I've got an audience of rock stars. I have no doubts about them. Number 28, what does this one mean? This caught my eye.

Stop the gimmicks. Well, you know, listen, a lot of retail players, they just, they just do one gimmick after the next. Like, for example, I got an email from one of the phone carriers, you know, my carrier. and I don't want to call them out and embarrass anyone. That's not my purpose. But, you know, one of the phone carriers says, come into our store,

you're going to get a free phone and something's going to happen. You get in there and you find out that you don't qualify, that you've got to jump through a bunch of hoops, or they may have one price online and another price in the store. There's so much information in the world that companies have to stop playing games. Consumers are smart. This is not yet a trend. This is an emerging trend or a wishful thinking trend on my part,

where there's the last two or three are just, things that I want the world to do. I wish that this would happen. It's kind of like a little bit of an alert. But the bottom line is that companies play a lot of games. And in the old days, when people didn't have a lot of information, they could get away with that. But now consumers are much smarter. We've upped our game. And they're still playing with us like we're in elementary school. And it's backfiring on these companies. And some of them are being embarrassed. And I really encourage these big companies. And there are some big companies that are reading this report, that it really is time to stop playing games and treat people with more respect and be a

little more transparent about your pricing and about some of your policies. And it's better, it's better business. And I would say the same thing, even though most of us are entrepreneurial people, same thing. Don't play games with your tenants. You know, treat them fair, trade them with respect, unless they don't deserve your respect anymore because they disrespect you by not paying or whatever happens. But start the relationship by treating people with respect, demand, respect and return and have that kind of relationship, you're going to go a lot further. I like it. You should broaden that to our politicians as well.

Well, that's a whole different course. It's tough to have a conversation with anybody about anything without going there. Yes, it is. I feel like we've been, games, gimmicks have been played with us all year long. But anyway, moving on, I want to talk about why you think assets are going on sale in 2021. Well, great. That's awesome. Here's the thing. State of California just extended the eviction moratorium rules until, let's say, I think June. It probably ended up going longer. The federal government is toying around with whatever their arrangements are going to be. I don't know what that is yet.

And landlords are having a hard time. I mean, people are having a hard time keeping their buildings because they're not collecting the rent they're supposed to get. And they'll never collect. I mean, you know, it may be doing arrears, but let me promise you, these are not people that are even more substantial tenants. They're not putting the money aside for when this is over and then they pay the landlord a whole bunch of back rent. So the landlords are never going to collect their rent. In many cases, these are mom and pops that own buildings that have been saving for their

whole lifetime. They've been very diligent, putting money away for their retirement. And there are people who, unfortunately, are going to end up losing their property. So they're going to run out of cash, and that's why there's going to be this big ownership shuffle. And this is going to happen in real estate, in the small deals, but it's also happening in corporate America in the very big companies. Very, very few companies or people have enough cash to last for six or 12 or 18 months. And we're going on a year now.

We are approaching a year. And very few people can sustain themselves with reduced, substantial. substantially reduced cash flow for that period of time. Look at the cruise ships. They're burning, let's say Carnival Cruise Company, they're burning $500 million a month because they have lease payments and they have other kinds of responsibilities for those ships,

even though they've cut most of their payroll. They're taking in nothing. They're taking in absolutely nothing and they're burning up their money. And, you know, I mean, how long can that keep going? It happened to Dunkin' Donuts already. Duncan had to sell off 600 stores because their traffic was off

because people aren't going to school. kids aren't going to school so parents who drive their kids at school aren't stopping for coffee and donuts and other things right so they ended up uh beside closing 600 stores they ended up putting themselves up for sale and arbys bought them for uh you know for a pretty substantial fee but uh you know it's happening at the highest level it's happening at the lowest level and and i just see more and more of this that there are people who just are going to run out let's take here's restaurants here's what's going to happen to restaurants. I mean, people have been stopped from going to restaurants, and restaurants through no fault

of their own are starving to death. And so now they're starting to reopen here in Los Angeles, maybe in Las Vegas, they've already been open. But a lot of them are operating at reduced capacity, and they're just really in a world of hurt. Well, here's what happens. They close. The landlord now has a beautiful space, ready to go.

It didn't go out of business because it wasn't in a good location. It didn't go out of business because of anything terrible. It's just the guy ran out of money under these terrible and ridiculous and unusual circumstances. And so what ends up happening, the landlord then leases the building to a new restaurant tour who buys it for a song. And then ends up with a successful restaurant because now we get on the other side of the pandemic six or nine months from now, whatever it is. And we end up, you know, being healthy. And somebody's going to end up with a really good deal. So the buy low kind of thing, we're in a bi-low environment right now.

and people are going to be buying restaurants, they're going to be buying real estate, they're going to be buying buildings, they're going to be buying businesses, because they're going to take advantage of other people's problems, not on purpose. They didn't put the people in these problems, but they're going to just be on the good side of the situation.

I mean, as real estate investors, we looked for property owners with problems before the pandemic. Yeah, well, and now people have more problems. Now people have got more problems, exactly. You know, and so that's why I think that a lot's going on sale. And that's why, you know, I run a mastermind man, as you know of, fund managers, guys like yourself. Yep. And I've been telling these guys what kinds of predictions, what kinds of assets.

And that kind of, you know, I mean, I'm telling fund managers, gather up your money because now's the time to have your stockpiles. You need to have your dry powder ready to go so you can start buying the kinds of assets. Because a situation like this, no one's ever seen it before in any of our lifetimes, any of our grandparents' lifetime. It's never happened before. Yep. But it's happening now. So if we narrowed the focus down just to say single family residential properties, um, here's, I'm kind of thinking it might not impact that as much as the other areas that you've mentioned. And I don't know enough about the other areas to even challenge that. So it all sounds logical the way that you put it. But with the single family houses,

with supply, like inventory is so low in the, demand is so high, I think there's enough demand as well as enough, you know, of your customers that have funds, enough money on the sidelines to prevent anything from totally collapsing. I didn't say there's going to be a collapse. Yeah. I said that individual people are going to be running out of money. Totally, right. But you said individual people.

You said this is the time to buy assets. I don't think that the market is going to collapse. I think that there are people who are going to collapse. And, you know, so we have to be, you know, very, very good target hunters where we look for specific kinds of situations. Right. And help those people before they go into even worse problems than they're in now. That's kind of what I'm thinking about. Okay.

Well, okay. So then also because 2020, I think exceeded everybody's expectations when it comes to appreciation. these people with problems, I don't think they're going to be the same types of people with problems from a 2007 or 2008, because they've got equity. And when you have equity, you've got options. The difference between 2008 and now is that at that time, it was a real problem where you had a real banking emergency.

But there are people that have a real problem. There are people who've lost their jobs. that own properties. And let's say they have made a bank payment in a while. For now, they're kind of safe. But let's say you rent your house and you don't get the same protection because the only people get those protections from the banks are people who live in their house, right? So let's say that you don't get those protections and you're the one that loses your job.

And now you've lost your rental income and you have lost your job and you still have the responsibility of paying the mortgage. There are a lot of those people that are pinched in the middle that get caused. in some kind of a pickle and we have to find those people because those people really need our help getting out. And that's, you know, listen, that's what I'm talking about. Right. I agree with you.

I just feel like I don't know how low the price will actually get if people have experienced a whole year of appreciation, although they have the hardship. Equity might, you know, save them a little bit with the amount of demand that's up there. And properties don't have to go to the floor to be a good deal. I mean, you know, because there's a range and you can buy it the low end of the range, I don't think people are going to be crushed. But, you know, but we also don't know how much people are leveraged. I mean, there are some people leverage more than others.

I mean, it's banks aren't letting you go to 95% like they used to. But there's still people who are at 80% that might only have 10% left of their equity. I mean, because not everywhere is equally buoyant. right no I agree I think there's a lot there's a lot of variables though and it's it seems to be a real a lot of moving targets as well and kind of what you had said initially was you know we've never seen this our grandparents have never seen this and their their parents have never seen this like we're we are definitely in unprecedented times if that hasn't been the most overused word of the year but well I mean listen it's so this is an unusual situation and all we can do is try to be a little bit um uh creative. We can try to be a little bit clear. One of the things that I think has been a big problem all the way along. When this thing first started, they said, okay, listen, in two weeks, it's kind of going to blow over. In two weeks, it didn't blow over. And so, okay, now we're going to go a lockdown for two months. Okay, and then we'll reevaluate. At the end of two months, okay,

well, it's kind of gotten even worse. And so now we have to do this next thing. And now we're a year later, and we keep looking at this in these little increments. Now we're looking at the vaccine the same way. And we're saying that all of us are going to be vaccinated, hopefully, by the summer. Well, there's 300 million of us that need to get vaccinated. You know, there's more than that in the country, but let's say that's how many. And we each need two shots. That's 600 million injections and they're doing a million a week. I mean, that's two years by itself. Right. So I think it's going to go faster than that, but it's not going to be done in two or three or four months. It's just not. And we keep being somehow, I don't know, we keep fantasizing about what we're going to

accomplish and it doesn't go that way. And we need, I think the people who are more successful are a little more critical thinkers. And we need to think this is going to go on for a little while more. Yep. It's not over yet. Yep. Super. So the report, it's, you text the word trend.

Is it to 72,000 or 7200? Thousand. Okay. So text the word trend to 72,000. You can download Joel's report, 20,000. trends for capital of 2021. And check it out.

One of the smartest guys, I know. I love spending time with him and talking to them about stuff. And you know, man, if we could also let people know that, you know, our symposium and maybe you could talk about that for a minute. Oh, of course. That's what we normally talk about. Yeah, ordinarily it is. When is the next one?

It starts. It's going to be live on Zoom starting April 27th. Okay. And that's where we teach people how to raise capital, how to put together syndicate. funds so that they can have all the powder they need to go out and buy things. You know, we helped you build yours and we've built, you know, many, many, many other ones. In fact, this one is probably the most subscribe we've ever had.

There are more people that want to build structures now than probably ever before. So if people are thinking, they can either go to syndicatefast.com and, you know, get on our list. We set out videos and other kinds of things. or they can, the same number, 72,000, they can text the word asset, A-S-S-E-T, asset to 72,000. And if you would put those things in the show notes, then, you know, whoever is interested can kind of come into our world and get all sorts of advisory from us. Absolutely. And just a testimony that Joel is the one who helped me set up my fund. And I refer him several very happy, satisfied clients that he's helped do the same for.

So if that's in the books or the game plan for you next in your real estate investing business, I highly recommend it. He's the best I know. All righty, Joel, thank you so much. And I'll see you again soon. Yes, we will. Thanks, Matt. You're the man.

You bet. Take care, buddy. Hey, hey, hey, where are you going? No, we're not done. If you're looking for motivated sellers, specifically a cost effective way of doing it, I'd like to introduce you to my next guest. But first, your portfolio has seen better days. this two shall pass.

And the best for you is yet to come. Together, we'll get you there faster. We're cash flow savvy. And we'd like to share some information with you that will show you how you can take control of your financial future and accelerate its arrival. Go to cashflowsavvy.com. More building, less waiting.

Cashflow savvy.com. On the phone, I'm joined by CEO of the groundbreaking lead generating platform launch control. So please help me welcome to the show, Mr. Aaron Pimpus. Aaron, welcome to the epic real estate investing show. That's a big guy, man. Thanks for having me. I know we've been trying it for a while. We have and we've got a couple of misups and miscommunications, but we made it because we're professionals. There you go. So I really love what you do, and I've been really looking forward

to having this conversation with you. And I've actually been a little bit disappointed, not in you, but disappointed that we haven't had that, been able to have this conversation sooner. With just a great service you provided, I've got a bunch of my RIA's clients that are using it and are swearing by it. And I just want to share it with everybody. And that is your service launch control.

And so before we do that, though, kind of give me a little bit of a story. We haven't got to talk too much about you personally of what you were doing just before you started this and what inspired you to do it. Yeah, so I think it's a similar story to, everybody else, right, you know, had the, uh, the corporate nine to five. You started with Rich Dad Ford. Is that where it started? Um, no, we actually started with, um, I don't know

what it was. It was just like, you know, random courses. And can you hear me? Okay. Well, you said, sorry, like everyone else. And that's everybody's beginning. So, yeah, I think it was, I'm sorry. I'll be quite glad. It's a combination of things, right? So, uh, but it was in 2018. So my partner and I, we were in, I'd say corporate America, right? We had, um, we're in medical software. So, essentially that's where the software component will come in. But we're both, you know, got advanced to the VP positions. You know, we're doing it, flying all over the place, and it just suck.

You know, we're making pretty good money. But overall, it was just like the quality was just like not there. You know, we're gone. We had kids, you know, just back and forth. And then in 2018, we just decided to make the transition. It was actually going to be three years in March. So, yeah. But we decided transition to real estate, right?

obviously start acquiring knowledge, et cetera, et cetera. And then Ashley, my partner, she quit first. And then I kind of followed suit later on. But essentially, you know, we just started doing wholesaling deals, you know, learning as we kind of, you know, fail forward doing a couple of rehabs here and there. You know, we ended up doing, I think, over a million our first year, I would say year over year. So, you know, we just applied everything we learned from our kind of like the private equity company that I used to work for. her she used to work for a publicly trade company so we just took all that knowledge and it kind of

inserted into her own business right that's kind of like what you should be doing right take what your best at take your skill set you said um you said you were in corporate america in 2018 so this is really recent yeah so yeah it's gonna be literally three years next month right for us yeah i think three years March or April yeah so um but yeah we basically wanted to hit the ground running you know a lot of mistakes we were you know spent everything up to like 30k in marketing uh each month not necessarily best RIs, right? But tried every marketing channel that was out there. And then what we started doing is, it's like, look, nobody was doing flexing back then,

you know, on scale that is now. So kind of created our own software and started doing it. And I mean, it was just absolutely, I mean, think of it back then, right? The R.I was just like you couldn't even calculate it, right? Because there's cost was basically nothing. So from that, we were creating our own software and kind of using our experience because we both work from medical software companies, could have did everything from products to marketing to sales,

you know, a little bit of knowledge on all aspects. And that helped us to create, what were the beginnings of launch, right? So we applied also the big component, which is still, I think, what is the biggest differentiates that in that is that we made it sales process driven, right?

It's meant prospecting, not the spam tools that are, let's say, out there now. Because we all know, and I know you kind of teach this with your students as well. It's like, look, you can do whatever we need to, but if you're not there in a follow-up, you're doing it in the process, and again, in this case, sales process-driven method, you're just throwing money out the window and you're just throwing kind of what I would say is cold prospecting at what I would

say is probably one of the best channels for return on investment. But going into 2019, right? So we start putting everything together, et cetera, in 2019. So there's an opportunity to take kind of launch to market, right? There was other softwares emerging, et cetera, and I'm like, look, man, this is like, we got a way better product. So we had an opportunity to release that, and that's kind of started at all. I mean, we were able to grow at pretty, pretty fast rate. And our kind of approach was always the same, right? We were following a very specific process. And that's why our conversions, you know, to deal, right? That's what it's about, right? cost per deal and text to deals

that the metric that we track very much has been always lower, right, when compared to either other texting platforms or even other approaches because working everything down instead of taking the same approach as everybody else has been the key, and that's why we have our drip campaigns.

I would say account for about 70% of our overall deal flow and the same thing for all of our users, right? Because we just focused on that aspect so much. And look, it's the same thing in any industry. If you go in there, sales comes up for a follow-up, right? And I think what we got to here with, unfortunately, this industry is where everybody was doing on the first try and expecting to get like, you know, 10, 15 deals. I guess maybe that worked initially, but not everybody, when everybody started going to mass scale, right? That no longer is the same thing, just like direct mail, just like any other methods.

I mean, look, you've seen it all, basically. But if you don't have that backhand dialed in, you're going to be just literally spinning your wheels and hoping to get deals from the jump. It just simply doesn't work that way, right, regardless of what business. So that's kind of a hit in a nutshell. I just try to fast track it there a little bit, but that kind of gives you a perspective, you know, how we got from A to Z. Obviously, we still have our investment company that is in Tampa. And, you know, it's kind of revolve into two separate businesses. Sweet. Yeah. So if you look at the direct sales industry that tracks those types of statistics,

they say, you know, 80% of your deals are going to come through your fifth and your 12th contact. And based on what you just said, that's pretty much right on the money. And I talked to another guy that ran a sales floor for mortgages. And he was very meticulous and tracked every single person on the floor. And it's almost the exact same thing. You know, the saying the fortune is in the follow up is not just a cliche. It's actually where the fortune is. Right? Exactly.

So you said your cost per deal, what was better than other people that were doing this or any other service or any other method. What can you expect your cost per deal to be these days? Yeah, so it depends on obviously the market, right? That determines everything, just like with direct mail. So I would just say, let's say I'm taking the average market, like even Tampa where it's a little more competitive. You can be anywhere, like, where we are now and we think we've always been fluctuating

around a thousand or just below. You know, it can go to $700 per deal. So it obviously comes down to, of course, your data comes down to, like, make sure you're not using, obviously, you know, like data zaps, cheap, append service for your skip tracing, make sure you're using, you know, high quality append services, which is built into our platform as well. But overall, I think anybody should be between a thousand. maybe plus or minus, but if you compare that to pretty much other marketing channels,

the two biggest ones would be pay-per-click and direct mail. I think now that the inventory is much lower, right? And I stay in touch with a bunch of people who are doing either direct mail, they own the services, et cetera. The cost per deal has been coming up because less and less inventory, less people that are, let's say, in that situation where they're able to sell. and a lot more influx, a lot bigger influx, although I would say wholesalers into the industry at all. So those factors that would be driving up the cost or deal, but I think a good average would be somewhere between 700 to 1,200 to 1,200.

Some markets may be higher. Some markets, I've seen in tertiary markets, Matt, something as low as like $300, this doesn't make sense, right? Because nobody's fishing in that, because we have all the data, right? We've sent out hundreds of millions of messages. And I can see all the data appearance, which is interesting. You can see what people are fishing and whether or not. I would say a tertiary market, the ones that are not resaturated, the ones that have not been hit by every single wholesale in the world, right? It's a lot easier to get deals done.

Obviously, Texas is the fastest way to get it done. But in those markets, I mean, look, we have users that are like, they'll be in our light account, which is like $300 a month. then what's left, Matt, your skin tracing cost, push your list, whatever we're getting it from, maybe an extra couple hundred bucks there. And they're crank it out, I would say, you know, two, three, maybe four deals on that are entry-level package, right? But because the targeting is so much more direct. And then from then on, you have secondary markets and the like, you know, the large

markets that we all are familiar with. It's a little bit harder to play because everybody in their mom is texting. But the other thing we've done is we focused very much so on the cost. copy. Look, everybody and their mom is saying the same thing. So if you differentiate yourself, and we have copywriting services for those that, look, not everybody is a born writer, right, neither am I. So we are able to help out with that aspect as well to make sure that you're dialed in to your specific list to, like, look, you know that foreclosure or somebody's in forbearance is going to be a completely different conversation than absentee. They don't need to sell, right,

pain points are different. Dude, if you're a message, is misdialed or using the same thing for everybody, well, that's what you're going to get. You're going to get very generic results that simply don't move a needle. Or in most cases, you're just getting ignored or like, you know, spam block or whatever because people are desensitized. Look, everybody, I'm sure you're getting them. I'm getting them. If you own properties, you're going to get messages.

But it's how you go about it. That's been the other differentiating factor that we focused on quite a bit. Right. Now, I was actually going to ask you that about, you know, we know it's going to work in a market where nobody's doing it or it's going to work really, really well, right? and even the mid-level markets, it's still going to work very well. So there's a lot of people that are concerned with the saturation or the competitiveness of their market. And you kind of maybe dropped one of the little clue as to what differentiates as far as what the copy isn't being specific to the situation.

How else or what else do you see people that are succeeding in those saturated markets? Because somebody's buying those properties, so somebody is succeeding. What do you see them doing that the others aren't? What are kind of some of the key ingredients? Yeah, so it's consistency, one, because here's a thing. Look, I mean, most people, like, you know this business, there's going to be, what, 10 hats to wear at the least, right? Your prospects, you start the conversation, you get the deal, you know, talk about contract, you start going into the signing process, then you go into transaction coordination, then you're trying to sell the deal, etc. It's a whole roller coaster, right?

So you're going to see people have a great month and going down because they let their foot off the pedal on the prospecting side. So what we've done, again, we've tried to focus as much as we can on the follow-up, right? So our drip campaigns being very specific, a year out, et cetera, right? But making that as easy as possible for users, because you can even almost put that on autopilot. You seem to be compliance. They'll send those out. But the point is, you don't necessarily need to continue sending out new batches, right? Or let's call it new messages.

because if you've sent out several thousand, you know, 10,000, whatever maybe the case, it's like mailers, right? Your phone's going to keep ringing. There's a lagging effect. But in this case, they're going to be, the phone's going to keep ringing because they're going to follow up with you when they have a need, they send your postcode, et cetera. But with texting, it's going to be based on you reaching out to them. And by setting up specific messages to go out at a very, very specific time, based on their original need, right? So if it's a probate or if it's a, let's say, absentee or. something else like that, the message is very targeted and it goes out at a very, what I would say,

efficient increments and the timing in the messaging, right? So you may have been not available the first time you're not interested or it's a maybe, you know, next time you're getting your groceries, it just wasn't convenient. But by the third, fourth times, we're seeing that, you know, nobody else is following up to these people. They send out this one message and that's it, right? because they're not even capable of or they're not able to sustain it all. But if you've sent out, let's say, your first month, which might have been, let's say, for one of your students, February, they've sent out 5,000 or 10,000 messages. You can literally coast the entire next month from sending out new messages and focus on follow-up only

because when responses come in, we have different statuses. So we have hot, warm, nurture, drip, et cetera, right? So you can put a lot of people on drip or on even manual follow-up, so you can just filter by those statuses and go go through it. You have clicked a call so you can either text them or call, right? But where the biggest differentiator comes in is being able to actually take those actions. And with drips, it's literally is like, you know, it's a matter of a few clicks, but you're back in the conversation. It's very non-invasive, you know, it's like, you know, you're not setting the same message because, look, everybody's desensitized now.

Like, you've gotten them all, we've seen them all. We've seen like the bad versions of it where people will get the same list or they'll have that prospect because we filter out existing prospects, meaning that you can't send the same message twice or you just sound stupid, right? Because you're literally they know it's like a bot or you're copy and paste

there. Instead, what we'll do is we will send them another follow up message that's acutely based on where you left off in the conversation. And at that point, it's like, oh, okay, Matt, the guy, all right, he wanted to buy the house. All right, man, I got to get

this done, right? So at that point, they're like, all right, well, what's your offer? And the conversation comes back to life. And that's the same thing we just mentioned at the very beginning. That's where the, it's industry agnostic, right? But that's where that Fawa component starts to change the game. And that's where anybody in a large metropolitan market or wherever you are, if they stick to our process and use our content or even their own content,

because we show you how to do it. Look, here are the guidelines. You don't need to be in there going through this roller, you're up and down, right? And you don't always need to be prospecting because we make it so easy to do the follow up and then you're able to see the results come in. It's just about staying in touch with people. And our algorithms do the rest. That's kind of, you know, the other component, right? The secret sauce that we've developed. The app is like 30% of what you see. Our algorithms and being able to get through people high deliverability and making sure you actually are going through is the other

component, but you don't need to worry about that. That's just behind the scenes done for you. Perfect. Yeah, you'd mentioned that one of the factors up front, you'd said that the data is important and where you get the data from. What type of parameters do you place on the data that you see to be the most successful? Yeah, so honestly, there's like, you know, the props from data, which is available to everybody, right?

So you can get that. You can get the, what I would say, the, there's the broad lists, you know, think absentee, they get updated, like, you know, once a month, depending on who you use, right? Those always perform, right? It's just a matter of making sure that you are, again, using the right, skip tracing service and you're getting like tier one or basically the best available match rates, but match rates are a little misleading.

It's more about the accuracy rates, right? So sticking with something that we have built in, which is our skip trace service, has the highest accuracy rate, which is based up the industry standard. But the other component is you want to also focus on the niche list. So think like if you can get a water shutoff list

or the divorces, right? The ones that are small quantity, but they have a higher pay point, right, or something like that. So the way we work at an art team, right, and we basically let our users know. The broad lists are always there. They're not as time sensitive, right?

But the niche lists are time sensitive and there's less quantity. So we always get the initials first and go through those and make sure we, you know, those are cleared out first and foremost because there's only maybe 100, there's maybe a thousand. It's easy to go through and we always pay a lot more attention to those because they're highly actionable. There's probably a lot more pain points. You know, once foreclosures kick back in depending on what state you're in, right, the moratorium is off. That's going to be, you know, interesting radio show. but people are going to be all over that.

But currently, like I said, like a divorce list or water shut off or anything else along those lines, you want to focus on niche first. As those get replenished monthly or whenever you can get the data, keep this coming in, but then focus on your broader list. And that's the ongoing, right? You can pretty much depend at any given time. And look, they may receive 10 messages from other wholesalers or whoever may be. but if you differentiate yourself by saying something different,

coming out of a different approach, or even actually getting a message through, right? Deliverability. That's going to be the key in making sure that you are succeeding and you're not doing what your competitors are doing, which most your competitors are doing the same thing. It's just they're sending out one-time blasts with no follow-up and then hoping to score deals in the first run,

which is very hard to do. It's possible, yes, but all the results are on the back end. using all the other techniques. Perfect. One other thing you've mentioned up front, which was a KPI that's probably specific to you, and that's your text per deal. And that's always a big number or a big question that people have,

like, how long is this going to take? How many times do I have to do this? What are you tracking right now? Because I think it's a little bit differently now than it was, you know, six months ago and even 12 months ago. Yeah, absolutely. So I think right now we're between, let's say, 1,500 to 1,800, for us, my own organization.

And it's basically some users, you know, surpass us. It just depends, right? But you should not be anywhere near, I would say, over 3,000 text messages to a deal, because at that point you know you're doing something wrong, right? If you're over, you know, 3,000, you're like 4,000, 5. We have people that come over from other platforms that are like, look, you know, they were just following the different set of guidelines. So when you're trying to score a deal off your first try and you're just sending the data,

you're running out of data first of all, right? And you're going through data like crazy. Your odds of success are going to be lower, meaning that your text, your deal is going to be astronomically higher. That number comes down as you have a compounding effect. So you sent like that example that I gave that, if you sent out in February and you coach through March, you literally are going to start averaging down because at that point you're picking deals up or everybody else is not. So it's a blended average, right? When I say for us, maybe it's 1,500, 1,700, it's a blended average from, let's say,

the previous efforts, and it starts to compound, you know, like you have a moving average. But it's not a one or two-month thing, right? You want to make sure you're doing it in your first month. If you get a couple of deals, that's great, second, third month. We have deals that have come in from, I would say, last year's worth effort, right? We have deals that came in from, like, I would say January of 2020. Because the conversation was started, we put him on the, the drip campaign, and then the conversation evolved.

And they're like, look, I was ready. You're the only one that was in touch with me. So the number actually trends lower, to put it differently, Matt, the longer you have sustained effort. And unfortunately, most people just don't do that, except our users, right? You follow the formula that works. So I always say that. Anyone can do it, but most people won't. And there's the opportunity, right?

Yeah. We actually narrowed down, just to touch on that real quick, Matt. So we narrowed down where we have kind of created our own managed services, meaning that we have people and we call them remote lead managers, right, where they basically have their fully trainer or sales process. And it's completely hands off for the user, meaning that they basically don't have to do anything except they have all the hot, I would say warm realtor referral type of things,

all the hot leads obviously do to sell just pushed over to them and they're doing the discovery they're taking them down or they're going to appointments they do what they're supposed to do so it's removed a lot of the effort away from it very good

you know one of the big topics of discussion before we entered into a global pandemic was the pushback on cold calling and the pushback on texting from the powers that be I haven't heard too much about it obviously the last year they've had

much bigger fish to fry in our world. But what does that status look like right now as far as a regulatory stuff? Yeah, so it's going to get much harder, I think, with compliance because there's new regulation coming out on how you're going to send your messages, right? So it's nothing that the users need to worry about because essentially the TCPA compliance is the big piece, right? And it's really about how you're sending out the message, right? That's what we don't, you need to click to send a message or hit a space bar, this manual

intervention, right? And you can do that, you know, you can do 100 times in 20 seconds. It's usually an overthought component. So to stay compliant there, it's still the same, right? We're also not soliciting a service, right? I'm not selling you Sham Wow. I'm not asking to list of property. I'm asking to purchase a property. Or it's no different than obviously we're all familiar with driving for dollars, right? So it's no different that you're driving by a house, getting their phone number or looking it up. Everybody has public records. And I shoot you, Matt, if it's tax and what your rentals, it's like, hey, Matt, on a couple of rentals in the area, you know, drove by yours, uh, you know, this is Aaron, you know, the local investor,

whatever the case is. Yeah, would you be interested in offer by any chance? So it's no different than sending kind of like a message one of one, except we obviously have streamlined a lot of the process, but we are not looking to sell Matt, the homeowner or maybe the potential landlord, anything. I'm looking to ask your question about acquiring your property. So as far as that, it has not changed. Now, as far as deliverability, you know, messages going through,

it's been a completely different topic, which, again, has been, I would say it's affected quite a few providers in the area or in our space. But that's going to continue to be a challenge because, look, there's going to be a lot of bad players, whether it's in our industry or in other industries where they're relying simply on like the span method, right? That's it. Right.

Versus where you are doing selective texting and you're relying on extremely well-cured follow-up to ensure the highest results, right? And that's where we've seen a lot more success, obviously doing it that way, because it's sales process driven. And then obviously with that comes much different outcome. Perfect. Well, that's all the questions I got. I've been looking forward to having this conversation for so long.

I really just want to see it work. I want to see it demonstrated. And we can't do that here on a podcast, but what we've done for next Wednesday is that's the 24th of February, is we've set up an online workshop, an online web class for any of you that would like to come join us and see it. I'm certainly going to be there because I can't wait to see it work. So you can go to Wednesday webclass.com, where Aaron and his team will demonstrate the software and show you what probably the most cost of,

effective marketing for real estate investors in the space right now and not by a little bit by far. You know, you said that the cost per lead or cost per deal is between $800, $1,200, $1,200, $1,200 bucks. That's like half of what the best direct marketing is getting right now. So. Yeah. I mean, let's say even if it's, you add another 1,000 to that, right, Matt, or another,

let's say, even if you double it, right? It's still a much better return, right? So I'm kind of going by. by the properly done method, you know, the properly executed, but, you know,

even if, like I said, you're behind that, it's still outperforms by quite a bit. So, yeah, you're right on target. For sure. Perfect.

So, Aaron, I will see you next Wednesday. That's 5.30 p.m. Pacific Standard Time. And if you would like to join us, you can go to Wednesday, webclass.com, and just click the little registration link,

save your seat. And then it'll be one big happy, money-making party. Awesome, man. Looking forward to being there. Thanks for being here, Aaron, and I will see you next week. Awesome.

Thank you, everybody. Bye. All right, if you found this episode valuable, who else do you know that might also? There's a good chance that you do know someone else who would, and when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here, and tell them about Wednesdaywebclass.com as well,

and I'll take great care of them. All righty, that's it for today. God loves you, and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio, living the dream.