Epic Real Estate Investing - Epic Intensive Live Podcast, Todd Toback, Makenzie Kelly, Josh Swanson, Corey Kendig, Parker Stiles, Koko Keledjian | Episode 223

Episode Date: September 26, 2016

A special live Epic Real Estate Investing podcast featuring friends and colleagues of Epic, Todd Toback, Makenzie Kelly, Josh Swanson, Corey Kendig, Parker Stiles, and Koko Keledjian.  Recorded live during the Epic Intensive in Redondo Beach, CA this podcast is sure to get you geared up for your next deal. Addressing questions and challenges from active real estate investors, the panel of professionals provide the tools you need to beat the currently shifting real estate market. The wealth of information is flooring and the techniques shared are like gold. Investors at all levels should listen carefully.   ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? E.ducation P.roperties I.ncome C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Hey, we are here live at the Epic Intensive Redondo Beach. We have a live audience. Let's show everybody that we're live. Recording the Epic Real Estate Investing Podcast live. This is a place where I show people how to escape the rat race.

To do that, all you have to do is do one thing, every one thing, one time. That is to change your mindset. Change that focus. us from making piles of money to making streams of money. You do that one thing one time and you are financially free. Good to go. Y'all in?

We've been here all day long talking about escaping the rat race, and we've had a lot of great questions that came in. What we decided to do was just kind of reserve the questions for a whole Q&A session and to affix a panel of experts of experts for academy members and some of my mastermind members and collectively answer these questions and just give kind of a wide variety of wisdom. and share it with you out there.

Okay? So we're going to start by this. Let's go about introducing everybody. What is the time? We've got the microphone. Let's start with Todd, since you're on it's in. Todd, introduce yourself. Tell us what you're from, what you do.

My name is Todd Tobeck. And you're going to work. There you go. There we go. I'm Todd Tobeck. I live in San Diego, California. I have a real estate acquisition company. We do wholesaling and wholesaling and love this business.

Fantastic. Love you, too. Awesome. My name is McKenzie Kelly. I live in the San Francisco Bay Area. We do wholesaling and fixing flips in the Indianapolis market right now. And I've been doing it for about a year and a half. And just Josh Swansea. We're good boots on the ground, wholesaling for Matt over in the Orlando market. You can get deals on buying holds and fix and clips. What's up guys? My name's Parker Stiles out of Atlanta, Georgia, and my wife and I do

buying holds, fixing flips, and wholesales. Hey guys, Corey Kandig, 25 from Uri, Pennsylvania. We focus mostly on buy and holds, holding a portfolio of 50 units and wholesale. Hashtag team manager. There you go. I'm Cocoa Collegian. I'm also 25, and I'm from Los Angeles.

And we do high-end fix and flip, and we do ground-up construction. And been to business for 10 years. Fantastic. I love it. Thank you very much, panel. So we're going to start with our questions from the audience. First one comes from Russell, 38 out of Minneapolis. He asks, how do you enroll...

Oh, this is a good one. McKenzie, pay attention. Coco, pay attention. How do you enroll your spouse in the time commitment required to efficiently run the business, especially in the evening? Ooh. Pass the microphone down to who wants to take that one on?

Coco bravely passes it. Very good. Mackenzie, I think you're probably the best one to answer to this right. I'm the best one. Number one, it starts with marrying the right spouse. So if you have it, I'm sorry, there's always round two. But seriously, it is excellent communication. I brought my husband into the epic code last year

so he could see exactly what I do and be excited about it. He's a predication guy anyway, and he sees the long game, and he is actually seeing the fruits of our labor now. he is going to have an opportunity hopefully in the next year or so maybe even sooner to be able to retire. So, you know, sacrifice pays off. Fantastic. Thank you.

Anybody have anything to add to that? That's pretty good, right? I thought it was great, yeah. I'm enrolled, too. I'm not even married to him. Okay, this comes from Casey, 25 years old out of ACWRQ. What are some good info sources,

podcast books, or advice on preparing a fix-and-flip business for a market dip? Ooh, Coco, maybe this is your question. sources. Our fix and flip right here in Los Angeles. Sources, online sources, and whatnot?

I see. Podcast books. What are some good sources or advice on preparing the fix and flip business for a market dip? You know, obviously I'll look at bigger pockets, right? So get out there and start to listen

to what other guys are doing out there and how they're insulating themselves from the market. Because we feel like in L.A. There's specifically a market correction coming. It's not what, it's not the, if it's going to happen, it's just a matter of when. And for that, we're taking precautions,

to insulate ourselves and not take it on longer projects, so we don't know what's going to happen nine months from now. So when we do our bigger projects, I choose about how long it takes. So do the quick and easier ones versus the long-term projects. Got it. So shorter-term projects is how you're preparing for the dip. Perfect.

Any specific book or resource that taught you kind of made some secrets about fixing and cliff. There's a real estate investing one-on-one book, I remember, and that's essentially what buy and hold was all about back in then. The switching gears from doing clips to trying to get by and hold and obviously good to get some cash flow. Sweet. Awesome. Thank you.

This comes from Parker. Parker out of 25 out of Aftworth as well. Maybe you guys know each other. Any education sources for training on acquisitions manager that is on the ground in your virtual market? Ah, I think it's going for Todd. Training acquisition people. I think the key word in training acquisition people, which sounds kind of facetious, but I found it to be true, is training.

I think a lot of people want to hire an acquisition manager, and they think it's going to happen magically by just putting that on Craig's list and thinking this person is going to run your business. But if you've done deal yourself, it's going to take some time and energy and commitment and sacrifice to really get that person where they need to be. And so when you bring somebody on, you've got a responsibility to invent. invest in them and to leave them and to pour into them and want them to make as much money as possible. If they feel that, then they're going to perform and they're going to want to do great. And so if they're in another market, it's going to take basically a steady dose of discipline.

So we've hired people virtually in other markets. You can do that over Skype or teleconference. And one of the things great about it if you do that is if you go like free conference pro, you can train them, say, every day for two weeks, and we can record it, put an MP3s, and then if you have to hire somebody else, just give me the MP3s, and you're good, you've got 80% of the training there. That being said, you may not need to hire a person in that market.

We lock up all of our deals on the phone, so if you want to have them on the ground or in person, it's going to take time either way, but I wouldn't limit yourself to someone on the ground. Got it. Great. So you're a rock star sales guy. You're a great sales manager.

You've got a great team that you've trained in sales. Is there anyone's philosophy, sales, mentor, guru, book, resource that you really subscribe to that you've adapted and embraced, and that's kind of the foundation of your training or your system? Sure. So the first thing that any sales rep or acquisition manager and entrepreneur has to have straight is your head, right? You talked about that.

And so if the person on the phone doesn't believe who they are, right, that they're a rock star, they deserve this money and that they're offering value, they're never going to go anywhere. And once they get that, everything wills to follow us. It's going to be much easier. So there's a psycho-cyberetics. Dan Kennedy came out with one. That was the new version, so I'd say start with that.

But in terms of sales philosophy, I'm a big Samler guy. I think it's really, really important. It's learning some of those negative mismatching. So there's a point called the, is it The Art of the Deal? Yeah, the Art of the Deal by Samler, that's by one of the licenses, and we love that. So that's my main source. rest and peace, Mr.

family? One of the great ones for sure. Awesome, thanks. So this comes from Ken 39 at Warrington, Pennsylvania. This is two McKinsey specifically. How did you pivot from

starting and wholesaling to managing your VAs and systems to one day per week? And what would you do differently if you were to do it all over again? I mean, would you call it a pivot? I don't think it was like a

a graceful fall into it. I originally wanted to do real estate, and I was running another full-time business, and so I had a conversation with my business partners. We were about 10 years into our business, and I said, you know, this is kind of what I want to do. Business is running well. I've replaced myself a little bit at this other business, so let me see what I can do to do real estate.

So that was a tough transition because I was giving up a lot of control at the range of my other business, but realizing that I love real estate and I want to divest some of my income into real estate anyway. It is a little bit of a juggle, but I think it's just getting started. And so I started everything I started answering the phones. I needed to learn how the whole entire real estate business works so then I could teach my VA. So unless you understand how it works, you're not going to be able to teach your VA what to do. So as soon as I understood how it works,

much like how I worked in my other business, if I got it, then I could teach somebody else. So a lot like what Todd was saying, creating systems for teaching other people is a good way to bring your VA on board. So at this point, if you were to do it again, what is one thing that you would have done differently? Done anything differently.

I think I was pretty happy with how it went. I don't think starting, I mean, I know starting any business is really challenging. I know everybody says to start sooner, but I think I felt like I tried to jump in as quickly as possible and get the deals going as quickly as possible. I think I brought my VA on pretty quickly. I brought them on part-time,

and then I was able to have them on full-time, so I'm not sure that I regret anything that I do. It's possible that I just realized that I'm going to make mistakes long away, so I didn't regret that. I just continued to roll forward with it. look for it. Great answer. This comes from Josiah 30 out of Buddha, Texas. Did I say that right? Buddha? Can I do a subject to transaction at a title company if there is a tax lien?

Yeah, if you pay off the tax lien, or else the government's going to come and take the property away, right? That's pretty simple. Anything to add to that? Yeah, you can do that. I just have to pay off the tax lien first. Awesome. Tim, 47 out of San Diego. If looking to build a team for out-of-state wholesaling, who would you start with First, an agent, local, who would you start with? Go ahead, Parker. I would start with a property manager. For my virtual business, I think it's important to get a good estimate on repair. It doesn't have to be exact, but as far as finding a contractor goes,

property managers are a great place to start. Property managers have tons of connections in the area. They know the area well. If you can develop a good relationship with somebody at a property management company, you know, that's a go-to-person to get a lot of questions answered. As far as number two, really, I mean, it just depends on, you know, Todd, you know, gets a lot of stuff done over the phone. I like to have boots on the ground.

If you're going to be the person that wants somebody locally there that, you know, knows the neighborhoods and can, you know, yell out landmarks, then that would be the second person for me as a boots on the ground guy. I think the property manager is a great place to start just because their clients, their whole database, their whole customer base, are real estate investors. So they have access to everything of real estate investors.

They also have a lot of buyers too, so that helps. Absolutely. They got sellers as well. They've got this grown up clients, I'm sure. And I'll all mind it. Let's see. Sherilyn, 39 out of Sacramento. When generating LOI's letters of intent

using the frustrated landlord strategy, what numbers should be used? Is there a general template? I guess this would be for me, right? when generating LOIs using the freshman line, what numbers should be used? Well, when we do that for the frustrated landlord, we base everything off the rent,

because we're always measuring the return on investment, what the cash flow, the cash on cash return is going to be. So we kind of start from there and move our way back. So if they're asking for a $1,300 a month rent in that vacant property, then we're trying to like see, okay, so they're going to make, we'll work our way backwards from there. They're going to make 60% of that growth.

and then they're not going to have to deal with the management. They're not going to have to deal with the tenants. So we could probably develop another 10, 20 percent from that. And then that's probably the sweet spot where you can say, hey, how would you like to go ahead and keep receiving your cash flow without having to deal of all the tenant issues. So that's kind of where we go. We find that cash flow number that we think they might be satisfied with

and work our way backwards from that into our actual offer. Good question. Thank you. Key, 52 out of Edmond, Oklahoma. For a starter, what marketing method would you do first? You're going to pass this one to the pie, because you've been a big marketer. We've got a lot of investors in their time and money. What would you do first for a starter? So where are you?

So what's your marketing budget? Okay, so a month? Okay, so for me, if you've got that much, I'd spend... How much does they have? Three to five thousand. Three to five thousand. So, you know, either you have more money, or you have more money, or you have a month? have more time. In your case, I think you've got a decent

budget. I'd go right to postcards. I'd send out the postcards. I'd be consistent and plan it out for the next three or four months. And if you do that and you're returning phone calls and you're consistent, in my experience, it will be nearly impossible for you not to do deals if you consistently follow up

on those leads and take the long game as they come in. But postcards for me, it's the fastest way to get the phone to ring and make it happen. Go for a. Thank you. EAD, 43, out of no buy Michigan with the current

shifting market which strategy is best wholesaling fix and flip or buy in a hole you don't want to take a stab of that

this is Ihab Ehab buy an old man I mean you can't go wrong if you're buying it right for the cash flow it doesn't matter

what the market's doing at that point that cash flow is always going to come in in my business every deal that comes across the table we enter it and evaluate it with the expectation to be able to hold that place.

If we can, it doesn't fit, and we wholesale, and we make the quick money. But if you're buying it for the cash flow, you're not going to go wrong. That's good part. Love it. Good answer. Yvonne, 27, from Orlando. What is today's best up-to-date database that we can use to generate leads? No outdated info.

So I guess a list source of what are you using for your data? Anybody? Mark? Again, that depends on your budget. If you've got a lot of money to spend, there's some good guys that are generating lists out there. There's inheritance lists. There's vacant lists.

Me personally, I use a guy named Chris, Chris Richter Aldantic. If you're starting out, you have a lower budget, then there's list source. When I was first starting out, I would go to probate court, and I would fill out, I would just go and every single thing, you go down on the computer, you sit down, and I just bring an Excel spreadsheet on my own laptop, and I would hand-copy down every single lead,

sending a probate leads. And then I'd do the same thing with eviction records. I'd go down and basically just trying to send mail out to Disruptive Land Village, just like Matt was talking about before. And then, you know, eventually once you get realized that's not the best use of your time, hire somebody off Craigslist, have somebody go down to the courthouse, and then I would have somebody do that in the Tri-County area that I was doing, I had one person in each county courthouse doing that and generating Excel spreadsheets.

The problem with that, they kind of have an expiration date with the probate and the eviction leads. So it just depends on where your budget at, but there's really no limit to where you can get leads from. Fantastic, thanks. Josh, when I met, you got started on a very small budget, very small marketing effort, but you're doing consistent deals. Where were you getting your data? Who are you sending your marketing materials to? Well, I started with 100 letters, spent $100 and were then in the text delinquents. Was that a week or a month?

No, that was so. I had $100 to my name. You know, and I sacrificed, you know, I ate top ramen for two weeks or whatever to get that extra 100 in. And just send it out. And luckily, now that was a deal. I did the people with the highest valued property, high, success value property. property and who were tax delinquent because I thought that would get some good flips and it did so for that You did one that turned a $20,000 deal

I reinvested a little bit of that and I got a top robin No one top robin yeah and then I did another one with the same list and then I thought that was a really good one text delinquent if you have a little money You want to do something like probated text delinquent where it's a very concentrated source in every person you're gonna contact definitely has a house and it should be at least somewhat motivated So A great answer. Thanks, Tom. Sebastian 34 out of Sparta, New Jersey.

As you do marketing, when do you start directing budget towards other marketing strategies, PPC, et cetera, for testing? So, Todd, if they were going to start with their direct mail, they were going to start with their postcards, when would you suggest that they introduce a second

strategy? So I had this conversation with somebody today, but when you have a steady flow of deals coming from direct mail, only then explore the next strategy. So if you find yourself really inconsistent, mailing just when you feel like it,

or your deal flow is not consistent enough, I wouldn't even consider a second marketing strategy. I'd pick one list. I'd make sure I'm mailing it at least every six weeks, and once I had that dialed in, I saw a solid ROI. If you can't add another direct marketing channel, and I'd look at that first, once you feel like you've saturated, which I think is pretty hard to do, then I'd add maybe one more. But right now in our business, we only really have two marketing channels.

I mean, sometimes we get referrals. But, you know, I'm only on two, and I've been in this business. And those two are direct mail and. Direct mail and Internet. Yeah. You know, we do do some deals for real estate agents through working the telephone. But, you know, 90% of our deals right now are coming to direct mail on the Internet. Fantastic.

Great. This is from Juan, 48. White. This is for Todd. When a lead converts to a seller, does this usually occur gradually through digging deep and knowing their needs or pain? Or is it just more contact of the fifth or sixth call? So all three of those, right?

So when someone has a pain and we want to dig deep on that, so we break it in the past, present and future pain, we like to have them define all three of those, right? So what have you gone through in the past, what are you going through now? And if you don't do business, what does your life look like if you're going down the same path? So we'd like them to define that. You know, the second part of that is we want to hear the situation, but they have to obviously be able to verbalize that. And then because we heard that pain, that's why we follow up with them,

the fifth, the sixth, or the seven times. And it's because of that follow-up and that trust built and the report that they're going to sell to us for, you know, 50K lower than anybody else. So the trifecta, you just said it, it's all three of those, and that's how you lock up a monster, monster deal by building that trust and rapport with someone with a real problem and real pain. Fantastic. Perfect.

So yes is the answer. Yes. Okay. Is it Andreke? Did I say that correctly? 34, Memphis, Tennessee. What were your first steps when you started your investing career? first steps.

Coco, what were your very first steps when you started your investing career? First steps, I'd say, was just making relationships. We knew people from

different facets of the real estate business, lending. That's what we originally started with the lending industry. And from there, we essentially talk to agents, talk to title companies, talk to escrow,

and develop more and more relationships. And the more we spoke to people, the more deal conversations we had, and then, oh, you know, I've got this situation. and so on and so forth. And essentially panned out to some deals. And through the years, especially now in this market,

we've been able to flourish because those deals continue to come because we've proven ourselves over and over again. And so relationships, that's where we've started. Super. Corey, you know, since we've met, your business is, like, you know, it's exploded. But you did have a little bit of a business going on before we met. What were your first steps in your investing career?

Yeah, my first step. in my investing career were getting around, I accidentally got around people that were already doing it. And just like Coco said, developing those relationships and tying that integrity into it, once they know that you're the person that can get it done, I mean, that's everything. I tell people all the time, they're like, oh, what's your secret sauce? There's no secret sauce. I tell every single person from the lady at the grocery store to the woman that I just bought her house. I tell her. I'm like, I buy houses for cash.

Do you ever know anyone that needs to sell it? I can pay you $500 cash. And I can't tell you how many times that's just made me ridiculous amounts of money by telling them what I do. And that's awesome. Sharing yourself. The relationship, man.

I love it. How much does that cost to share yourself? Pretty free. Pretty free. Okay, good. Brian, 39, at Tracy. California. How do you structure a principle-only payment deal where the sellers likely will pass away before maturity.

That is savage. That is sad. Savage, yes. I actually have a deal like this. That will pass on. That debt will pass on to the person, whoever inherits the property. So, don't worry about it. You can't predict that anyway, unless you've got plans for them.

Good. Good question. Is it Andrew 43 out of Chicago? Is the turnkey route a viable option for building a portfolio for a less experienced investor who is still in the rack race? Yes? I would say very much less. Here's the ideal client for a turnkey property. It's someone that either they have the money, they want to invest, they want to put their money to work,

but either they don't know how or they don't necessarily want to do the heavy lifting, or they don't have the time. So those are the three. That makes an ideal turnkey client. And yes. So there you go. Right? Can anybody add anything to that? I got it right.

That's what we do, turnkey. They want someone to do it for them because they don't want to. They don't have the time or don't know how. Great. Jason, Johnson, 42 out of Fullerton, California. If you are investing virtually out of state, where is the best place to find private money in the market you are investing in or the market where you live?

Ah. So do you find money in where you live or? in the market that you're investing in. I would answer that as it's wherever you have the relationship. It doesn't really matter where that person lives. I would say it really comes with the relationship that you have. And if they live

in your city, then it's your city. They live in the market where the property is, then where the market is the property is. The money is the same in both places. Absolutely. No, necessarily. Oh, go ahead, Josh. Got a microphone. Well, like, if I

have something like that, All the people I know with money are out here in California. And if people in Orlando, there's money in Orlando, too. But if you have a smaller market where there's not much money, I mean, if you're, I want to just, like, ruin anyone's town or anything like that, but there's a small,

go ahead. You're a small poor town, and, but you're, like, in California, investing, obviously you're not going to try to dig these buyers up in a small poor town. You're going to go with their friends in California have the money. I mean, so sometimes I answer itself.

Yeah, I think along the same lines Like, let's say you're investing, I think, Matt, you invests in a little bit in Alabama, right? It's a great cash flow state. You know, you can get properties, you can get a $30,000 property that will rent for, well, $8.50 a month. That would be $7.70. Yeah. Closer to $7.50, $800. And then if you can get out-of-state investors, such as Matt or even better, out-of-country investors,

that are more or less just trying to park their money versus somebody maybe in your state that's just looking to get a nice 25% return. I know wholesalers that just have huge buyers list and most of their buyers that are paying the highest amount are out of country and out of state buyers. So if you can get those resources and meet those people and get that money from other places

and yeah, you're going to get a higher amount. Anybody add out-of-country investors? I wish I did. Canada enough. Argeena. Do we? Omar, you have an out-of-country investor? How did you find them?

Bigger pockets. Bigger pockets. So there you go. That's where they all congregate, right? Super. Rob, 46, out of bed for Texas. If you are just starting out and have a full-time job, family, et cetera, what is the most time-efficient,

time affected, big ticket item you can do to accelerate grow. Go, go for it, time. Flagg your mother. So if my wife is watching this. Oh, good. Back in 2001, I signed up for Peter, Peter Conti and David Pinkle's course on lease office. And these guys had a little, they reminded me of your checkpoint system where you had to fill out,

you had to make 20 phone calls every single night. And so someone mentioned out working with your spouse. My wife, I used to have a translate the numbers from the newspaper, but we used to keep them for two weeks. And so they were eight, they called age. This is before Craigslist was really big. And she used to put them on an Excel spreadsheet for me. And I was committed to call every night for one hour and make 20 phone call. That was my one activity.

And it was like magic. Like calls one through 19, nothing would happen. Just nothing. Right? And then 20, I'd always get in a phone. appointment. And so for me, I was 21 or 22. I'd done one deal. I kind of got lucky on that first one. I said I kind of got a $40,000 deal. But I got a dry spell where I was just on the phone. And I remember just going through that activity. One night I got a phone call. I got a hold of

somebody with a $1.25 million house. And I signed up a lease option on that deal. And I wanted to make like $78,000 just from a cold call from a newspaper ad. But it wasn't necessarily the lucky, it was the routine of being on the phone every single day, Monday through Friday, for 90 days straight. And so that eventually build that momentum. And so if you're just starting out, there's one activity, I would say, just make sure you're on the phone every day. One other thing about that is that it's going to take sacrifice. So, you know, my wife, who were newlyweds and she was sitting on the couch, and she was, like, frustrated sometimes. She was like, hey, someone come sit and watch the show.

And, you know, by the end, and she knew that script. Like every single day it's funny. She still makes fun of me to say the script. But once she saw that I was really, really serious about that, that's a supportive spouse. At first she wasn't okay with it. But once she saw I was committed and dedicated to do it, she was really, really on board.

And then when I cashed that 78K check, and we went to Y, she was really into it. That's good. So we know she's looking for you to get on the freeway pretty simple. She wants you on the freeway. Thank you for sharing in with this tonight. But you can see what all that hard work results in is awesome.

Let's see. Is that Mona or Mora? 44 out of San Gabriel. Do you only follow up on leads that respond to marketing efforts or have VA contact, all contacts, identified on list stores and or any other list sites? I think that's probably a simple question. I don't know how I was going to say.

Everybody, right? Yeah, Parker. Yeah, everybody for sure is a short answer. I'll explain just briefly what I had my VA do is using, like Matt talked about earlier, call rail, call captures this, so make sure you're grabbing all of those phone numbers. And call rail actually enables you to have a little note beside each number that calls you back and what I'll have her do when she starts her morning is literally go through, even if there's 200 calls that happened in the last, say, 30 days, then she'll go through and look at every single note in her.

call rail and it's either going to say noted in Podio, which means she got enough information to send an offer, whether they needed to sell their house or whether she was able to convince them for us to let them know how much we could pay for their house if the time came that they wanted to sell.

That's another way to get a good offer out there. But she just goes through each one, either says noted in the podium, does not want to be called back, like seller yelled at me, blah, blah, blah, or follow up with. So, So to answer the question, she's leaving, as she gets a voicemail, she's calling them back. If she gets the voicemail on the next day, she's calling them back.

So she'll call them back every single day until they pick up and say, quit calling me or, yeah, send me an offer. So that's what we do. And, you know, no lead left behind. If you do that, you want to have any leads fall to the cracks. Well, that's your results. Fantastic. This comes from Brian 50 out of Corona, California. What percentage are you offering on houses and such?

California. Let's ask our two southern California people. Mr. Coco Coco, public collegian. It's simple math. It's 80% of ARV minus repairs. So whatever number you got, 500,000, 80% or 500,000 is 400,000.

Minutes your repairs, 80 or 100,000, that's your offer price. In some places, you can creep up to 82 or 83%, but then you're banking on the market taking off a little bit, or you're in a really great neighborhood and you're assuming some sales are going to pop you up.

for the next six months or so. But yeah, but 80% minus repos. Awesome. Thank you, go-go. In San Diego, was it any difference than that? Todd. What's your quick and very net? The answer is, don't give a number.

So, you know, if we have a formula, what we noticed in our office and I'll just try to keep this short is that, you know, our minimum was 80% minus repairs, minus the minimum of 20K. Well, what we noticed was that everybody was doing $20,000 deals. And so our process is you've got to ask in five different ways

what the seller wants for the property or what they'll take before even giving a number. And so what we do is if they won't give a number, we'll go that 80% minus repairs, and this is only after we do the five questions, minus at least 100K profit. That's kind of our soft pass to kind of create a law of contrast there

so that if we go 100, then maybe they'll come back and we can do a $50,000 deal. But I agree with Koka that that's the number where people are buying at is that 80% leverage repairs. Perfect. Great. Danny, 33 out of Los Angeles. What percentage of leverage are you comfortable with in your buying whole business? Fair market value to mortgage amount? Danny, if it's good, take as much as you can.

I'm a huge proponent of the principal-only strategy. I remember hearing that from Matt three, four years ago now. That's huge. That's huge. I mean, it's allowed me to create a nice portfolio at the age of 25. So good debt. I mean, take as much good debt as you possibly can, and then as you start realizing that monthly cash flow

or you're starting to cash some bigger checks, pay off the debt that makes the most sense. You know, pay off your highest interest rates first, and your balloon payments. I can speak on that, and I hope you might be able to correct me if I'm wrong. But the banks look kind of at a 1.2% debt service coverage ratio.

That's kind of their valuation. I don't have a lot of experience with the banks. But when I go evaluate, I'm looking at like 1.5% of debt service coverage ratio. Goders don't make sure whatever a cash where I'm getting, I can cover 1.5% of whatever the debt is. If I'm maxed out on the leverage, that's fine with me. I take, kind of like Corey,

I take as much leverage. I possibly can get. I subscribe to a rule of thumb that while you're building your cash flow, while you're building your wealth, you want to use as much debt as you possibly can. You'll use as much leverage as you possibly can. Once you hit your cash flow goal, then you want to start working way back and eliminating the debt. There's a lot of people either disagree with me and think that's risky, but that's what I subscribe to. It works for me. As long as I've got one and a half percent debt service code ratio, I feel safe and comfortable. I think that was a question. What are you comfortable with? So that's what I'm comfortable with. Everyone else got a different, but that's my philosophy.

Dave, 55 out of Highland, how do you start getting paid when wholesales... Dave, you want to help me out here? Where's Dave? Dave, where you had? I'm having a hard time reading a couple words here. Dave, you're here? No, dipped out, okay. We'll come back if we can.

D, never ask a lady her age, she says. Very good. Twin City. Contract for deed versus selling. carryback, what's the difference and when to use each strategy? I'll like to do. I like to use when I'm selling property. I like to use notes when I'm buying.

I like to be on title. So when you're using a note with the seller carryback, I still end up on title and I'm buying that way. When I'm selling contract for deed, I'm still untit until that contract is fulfilled. In most states, when you're still on contract, you're doing contract for deed. It makes the, if there's a default that happens,

makes a foreclosure process typically a lot quicker and easier. And the big difference there is that a note is a real estate transaction. A contractor deed is like that as a business transaction. So that's my quick answer. There's always exceptions, but that's the little of fun. Let's see.

Dave 47 at Granite Bay. Can you cover the best ways to finance long-term hold properties when you exceed that 10 mortgage limit? seller finance man I mean they're not going to ask for your first foreign child or a blood sample like most of these things it's easy

you can close a deal in a kitchen in an hour and a half I've gone the traditional route and I've gotten max out before so seller finance get good at closing people in their kitchen all right did you answer that because I was looking I'd read the Facebook Live perfect that's a fantastic answer

shout up to Jason and Jeff on Facebook Live let's see Raoul, 23, Miami Are there any new mail pieces that stand out from the competition that you have been using? What is that when I've heard a lot of people here

are also using it too. Basically the good old third notice, you know, we want to buy your house don't worry, no one will answer. But they're taking out the, we want to buy your house for cash. So it's just like a, it's an urgent thing. You call us about this house right away.

So you hit that person, like, oh, this might be something different. This might not be another post where I try to buy my house. This might be some guys about to sue me or it might be a problem. So it creates a little more urgency, but, you know, you might get some people who are a little bit offended or, you know, at the same time, it gets a phone to ring, gets those numbers. Like, I was saying, get some numbers in your system. Definitely, if you're looking for an entertaining seller phone conversation,

you'll definitely get us in and out that mailing. It's pretty fun. I've had some people threaten to, like, call the, FBI. He's like, I'm going to call the CIA, the FBI. You guys are out, schooling people trying to steal everybody's houses. It's like, but my VA had a great time of that. Got it. I got a really good tip from somebody. He was saying, what he's trying to do is when he goes out to his own mailbox, he just kind of looks, shuffles through his mail, and whatever catches his attention in his own mailbox, that's where he gets his inspiration for what his next mailing piece is going to be. So I thought that was a good tip. Let's see. Patty, 51 Highland. How do you analyze a new market?

A checklist of what you specifically need to be there doing deals. How do you analyze a new market? I'll answer that really quickly because we're in a lot of markets. We look at all the normal things that everybody looks at. We look at job growth. We look at migration. We look at what the economy is doing. We look to see if the local government is involved.

We definitely want to see a diversity in industry and diversity in the job base. But really, we just don't go into a market unless it satisfies one specific criteria. Do we have a team there? Do we have relationships there? If we're not going to be there, then I don't care if it's the best cash-point market

in the whole world or if it's the highest appreciating market in the whole world. If I don't have a team there to go ahead and facilitate those transactions for me and give me some good on-the-ground information, I'm not going there. Okay? I think the best market with a bad team is going to be a bad market for you.

And I think a lot of mediocre markets with great teams can be an exceptional market for you. Anybody got anything that added that? I really think the relationship is everything. It's not your own backyard and you're looking at another market that you're not in relationships or everything. And what's what the parker was saying. It starts with property management. That's really ground zero for your good relationships. Ryan, 36, out of NorCal.

What are... I heard it. What are some ways in which real estate is poised to go through a similar transition like the music industry and the digital download? Who is that for it? You know what? This is the one thing about real estate. It's a people business. And I don't think at any point in our existence is it going to change.

Every piece of real estate you buy or sell is going to be from or to another person. I wish there was a push-button thing. I know so many technology companies, even in the real estate agent space, there's so many technology companies have kind of try to infiltrate that and make the listing process and the sales process really quick and easy. But the end of the day, most people have to go out and look at the house. They go have to go out and talk to a person. So I don't think in our existence that's really going to change.

But I have no idea what technology holds. I mean, you'd have told me something like Shazam was possible. I would have told you you're absolutely crazy. That's pretty amazing. You hold the thing up to the speaker and I can tell you what the phone is. I don't know where to start to invent that. But anyway, that's my input. Does anybody else have any input on where technology might take us out of the real estate game?

Do you have any insight in that? I don't know my strongest suit, but just human nature. What's everyone's biggest decision for 95% of the population? That's not actively buying real estate. By the home. Start over. I guess I'm starting over. So, yeah, just human nature.

I think technology would be hard pressed to beat, human nature because for 95% of the population, buying your home is the biggest decision you're going to make. I think getting the whole population to buy in and trust technology, it could totally happen, but like Matt said in our lifetime,

not likely. I don't think so. I think he said this before, it's like if we ever get ourselves into a situation where we don't need houses anymore, we got bigger fish to fry. Very good. Yes. Aren't we getting it or something like that.

Yeah. Wendy, out of Nashville. What are some tips or lessons you have learned when working with your spouse or significant other? I guess I can answer that one too. Some tips or lessons? It really helps when your strengths and weaknesses complement each other. So if you can find something that your spouse really excels at, that you don't excel at so much,

and vice versa, and just kind of stay out of each other's way. We have a little bit of an overlapping gray area where we communicate and we talk all the time, but we really are on opposite sides of our office doing totally different things. Coco, what would you say? Last night she told me, basically don't bring me problems, bring me solutions. So she's right there. And she's a broker, so we're in the business together for 10 years, and we've been side-by-side for 10 years doing this.

So we've gone through a lot of it. And there's so much minutia on a day-to-day basis. is difficult to have a conversation about every single thing, like with a lemonade, put the water, instead of that, we summarize things at the end of the day, but we provide the solution, you're writing in your problems. Oh, my God, this happened, and everything just exploded. Instead of that, you know, I'll sidebar that

until I've had the solution, and then I'll bring the problem and the solution together, so I look like a winner, you know? So, right? It's that dialogue back and forth, because you can get inundated if you're working with your spouse. What happens is you take it from 9 to 5 and you take it into the kids' room and then you take it under the couch while watching TV and it's all it is, it's real estate all day long. So just don't do that and have a date night. Day night?

Yeah, have a date night. I love it. So good. Eric, 29 out of Nashville. Matt, and scaling your business so fast and grown so much so quickly, what are a few things you wish you could have done differently or had done sooner? I wish I wouldn't have thought so small for so long. I wish I'd have thought bigger, quicker. You know, a $50,000 house and a $500,000 house

is really the exact same process. And, you know, obviously the profit on the higher price point is much better. And if you're going to get paid more for the same work, I probably would have pursued bigger properties faster. That's the one thing I would have done differently. Let's see. Wesley, 34, out of

Vancouver, I think. Where, or how do you see your mailing list? West, did I answer, ask that correctly? I write that. Yeah. If you want to come up here and phrase this

for us, it's got cotton parentheses. Where or how do you get your mailing list? Get your manless, got it. Sorry. Where or how do you get your main on this type. microphone? So I pull,

my primary list is from list source. I've tried them all. I've actually sent someone down to the county and pulled the tax default. So for me, one of my best performing tax default list actually is down from the counties that they're in, but I use list source

something pulled from the counties that would work in. I also use Rebuild Gateway. All three of them work. They all pull about the same. Right. And most of those list sources, they all come from, They all pull from the county and then tax records anyway, so I'll pull in from the same information. So, yeah.

Philip, 38 out of Loomis. How many buyers do you send your deals to at a time? How do you manage their response? Is too many overwhelming? A question is used. A cue that is using the cash-o-savvy system. Got it. So when you have a deal and you want to expose it to your buyer list,

do you send it to them one at a time or you send them all at the same time? Anybody want to take a stat with that? Parker? I just last into all of them. I don't see. I mean, the whole goal is to get a buyer as fast as possible, right?

Why we just drag that out any longer than it needs to be? I mean, I guess if you had like 10,000 buyers, or maybe that's a little drastic, maybe like 3,000 buyers, if that's the case, I would still blast out all at once. I would just hire a few more people to take those calls. There's no sense of dragging it out. That's just my opinion.

How would you manage their response? Do you take the best offer initially? Do you create some sort of option environment to get the highest price? Yeah, you always want to try and get as much as you can. You don't want to make any buyers mad and burn bridges in doing so. So, Matt, explain how you do your price wars. I know we talked about that. Explain how you do your price wars without offending buyers.

I know we talked about that a couple months ago. Right. So I will go ahead and say, I'm not going to make people play games. I'm not going to play games with my buyers. I want to preserve those relationships. I want them to continue to be buyers. So I'd be very fair and honest. I do try to create a little bit of urgency.

And typically it would be something along the line of, hey, I've got some offers coming in. It doesn't look like anything is going to be exactly what I'm looking for. But I am going to make a decision within the next 24 hours. So if you submit your highest and best right now, you probably got a really good shot at getting this property. So I let them know they got some competition. I'm going to make an answer within the next 24 hours or so. And I don't think I'm going to get exactly what I'm looking for it.

But if you submit your highest invest right around what I'm asking, then you probably have a good chance. So I want to create that possibility, leave that open for them as well. Because I don't want to say, hey, I got a bunch of offers coming in. Like, ah, no, forget I might not even try. Might as well not even go for it. And I also want to let them know I'm going to make a decision 24 hours. I'm not going to extend this and prolong without play game with you as well.

That's my approach to doing it. Actually, now we're not to do the second session of tomorrow's training, so that's done. Tony, 42, Roscoe, Illinois. As a new investor, should you limit yourself to buying single-family homes at first or also look at multifamily? What would you say? I'd say everything, man. My first piece of real estate I owned was a duplex.

I got in, I messed stuff bad. but I learned a ton that still made a lot of money on it. People always say, I always hear that question so often, what should I focus on two units, three units? To me, my philosophy, it does not matter. You can buy them all to discount. You can wholesale them all. Single family, the only difference is single family homes

tend to move much quicker in the market. Even if you're in a cash flow market, there's more demand for single family homes because everyone doesn't want to be an investor. But you can always rent it out if you're buying it right. so I said buy them all awesome awesome let's move on through

great 50 Cedar Rapids in a recent podcast you talked about you talked about you talked about wishing you had gone for bigger deals earlier in your career

would you do that by marketing to above medium price properties ah got it good question no probably not or maybe so

I'm trying to think the only reason I'm saying that because all of the big deals I've got actually came out of marketing for the smaller home. So when you do marketing, you never, you know, you can go for, I'm going for absentee owners that has taxing. Say that's your criteria. Even if you're that specific and you've got your certain area, you look at the pre-bed too bad, you never know what you're going to get. Because when you start marketing a demographic like that, they are investors. They have lots of other properties. There's lots of other things. There's so many times I've bought properties from an investor

that it wasn't the property I was actually sent the mail to. And so you just never know what you're going to get. And when it comes to buying bigger deals, now I look at all those opportunities. The thing I probably would have done differently is not passed on so many because I was scared in the beginning of taking on that bigger deal and didn't think I can handle it.

So the marketing, I don't know, would change that much. But I probably just said yes more often earlier, if that makes sense. Thanks, Greg. whale 39 out of Wayne how do you want significantly prepare for the changing real estate investing market that was all day we talked about that all day today right I would say if you're investing for cash flow

if that's your primary focus you shouldn't be too concerned about the changing market is really what I got to think I think what Coco hit it right on the head if you're going to do fix and flips you want to go for those shorter term deals just in case you get caught in the middle and the market shifts in the middle. That would be the other thing.

Wholesailing, you really don't have anything at risk. I guess, you know, if the market shifts, it doesn't matter if the market's up or down, there's always a relative low price to buy at and a relative high price to sell at. And if you're wholesaling, typically you're just under contract and you're signing contracts

are doing double escrow. So you never really have any money at risk anyway. So there's always a fast deal. So if you focus on buying hold, that's, you know, It's the boring way to go about it, but it's actually the safest way to go about it, and it's going to shelter you from the shifting market. And I have something to add to that.

So before I found Matt and Epic Pro, I had failed miserably at real estate investing, and I'd actually lost two properties. And that was one of the first things that I talked to Matt about because I said, I'm terrified of real estate investing. I don't want to do this again. I had to sell two of my properties off on short self, and I felt like a horrible failure. and one thing that I had to comment to myself and my family and my husband,

as far as getting back into real estate again, was learning how to do it differently. And learning the strategies in Epic Pro is a different way of doing it because I have lots more tools in my toolbox to be able to manage a up market, a down market, a sideways market. So it doesn't matter, I'm making money in any market. Awesome. Super.

Yeah, the game is real estate. As long as you're playing by the right set of rules for that game before that time, you know, you can make money in any market. I got one more quick thing on that, too. You actually said a few weeks ago on your podcast, but something I haven't really noticed. You might not be able to buy as low and you might not be able to get the sellers under contract

for as low a price and pitch to doom in the gloom to them, but you're going to be able to sell those copies for more than you were able to in years past. So don't worry about, you know, trying to get the lowest possible offer humanly imaginable anything. Just have good stuff on your buy side, have good salesmen,

going to go be able to sell that property for 10, 15 grand more than it would have been a few months to go. Awesome. Great. 21 out of Monroe. How many names should I mail in terms of direct mail to do two wholesale deals a month? Parker. Again, the famous It Depends answer. But I can just speak for my market, not Charleston, but Atlanta, Georgia.

I think two deals a month for me was right around. thousand postcards. Does that sound about right for you? Todd? Yeah, I think it depends on how aggressively you are willing to work the post. But I think in the Midwest market, you were in the Midwest for a while, and I think that's a really, really good shot. If you're in California, you're probably looking about 10,000 postcards for a deal,

but I can't emphasize enough that if you're willing to work that database, right you're going to pull deals out of that years later years later so that number's going to shoot through the roof but i think that's a really good baseline yeah awesome michael 49 out of boston matt what are your core values oh wow well integrity's been the theme of the day so that's something i i strive to stay within it's not as easy as it sounds um core values i guess the goal rule. Treat other people as you want to be treated? Honesty.

Honesty, thank you. Melissa, think someone on this person? If your team has poor values, you look at your poor values and hire people? Yeah, so we just revamped them. So a part of that is a commitment, courage, accountability, and gratitude.

And so we looked at the people who we wanted to hire and what they represented and kind of who we wanted to be, because in some of those areas we fell short and we're like, man, what if we just represented all four of these all the time, what can we do? And so those are our four right now

and we'll reevaluate those every year. Awesome, good question, thank Mike. Mike's got another one. What is your best advice for someone who works 40 to 50 hours per week? Any of the good question for McKinney. She does work 40 to 50 hours a week somewhere else? Yeah, often.

And I also travel a lot, too, and I am running the real estate while I'm traveling, too. So it is a commitment, and it's a little bit of a sacrifice, until you can start scaling back that 40 or 50 hours, but find time, whether it's on the weekends or in the evening, or if you're traveling in the Uber, calling people back, you know, it is you are living and breathing, and you're obsessed about this. it's something that you just have to absolutely have a full-blown commitment to, and once you do and you start making the deals, you're going to see the fruits of your labor. So nothing's easy. Making money isn't easy to take the commitment.

Absolutely. I wasn't working 40 to 50 hours a week when I started, but it was about 20 to 30. And I think the main thing is just tracking the small things, like Matt's Daily Success Worksheet. It's so easy to come home and want to pop down the couch, or the wife wants to spend time with you. If you have kids, it's a whole other ballgame that I don't understand yet. But, I mean, you just got to track the little things and don't be sidetracked. Like you said, just have the commitment.

But I think the daily success sheet really works well for a lot of people because it's just so easy to lose track, think you're doing stuff when you're really not. Right? I think we all have a lot more time than we actually think that we do have. And if you take that small little nuggets of time and you're focused on those money-generating activities, a lot can be accomplished in a very small amount of time. As long as you're focused on those activities, you can catch yourself doing anything other than what you can give yourself a point for on a day that success sheet, then stop doing it and get back on them

and start generating your points for sure. Chris, how do you deal with sellers? I like this one. I don't know who's going to answer this stuff. How do you deal with sellers that consult with their friend, the lawyer, who tells them your subject to rap deal is illegal? Oh, this is funny. I know you've got a lot of people. Not only do I love subject, too, but I just ask him, so is the attorney, is he going to be closing and buying your property? And that usually shakes them up enough to where you can come back in

and be a sales master like taught over here and handle their objections. But I love saying, you know, anytime they have any objection about a third party coming into the deal, I say it in a nice way, but I say, Mr. Seller is so-and-so buying your property, you already decide that? What the man's right? No. Got it. Another one from Chris.

How do you locate the right real estate lawyer to help you with your contracts, closing, et cetera? We don't live in a lawyer state, so I can't answer that. Referrals. Referrals? Perfect. Drop the mic. There you go. super so we've gone all the way around we've got all our question to answer it's been an absolute pleasure thank you all for being here

you have a wonderful evening get some of the rest we've got a big day plan for tomorrow and i can't wait to share with you everybody out there on facebook thanks to our panel you guys are awesome and do your success live in the dream you've been listening to epic real estate investing the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.