Epic Real Estate Investing - Getting Started FAST! [Encore]| 734

Episode Date: August 4, 2019

In today's episode find out how quickly you can go from talking to sellers to getting contracts signed! Learn how to better set expectations, negotiate with more leverage, and commit to the actions that will lead you to financial freedom. Learn more about your ad choices. Visit megaphone.fm/adchoices

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It's not a money problem. It's an idea problem. Epic, real estate, investment, though we can solve them. Scared money, don't make money. Passing income, cash flow. Yo, how you create money. Savers and losers. Open your eyes and see them.

Matt Derry all creating your financial freedom. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, hello. Yeah. Hello and welcome to the epic real estate investing show.

Glad you found it. And I did something this morning that's been on my to-do list for probably seven years. It's quite the accomplishment. And that was getting my Gmail inbox back to inbox zero. And we accomplished that today. I was very excited about it. I actually learned a shortcut, so I kind of cheated. Maybe you know this, maybe you don't.

If you struggle with this issue, then let me enlighten you on how I did this. First, I mean, my Gmail inbox was up to 29,000 something unread messages. So if you've ever sent me an email and you did not get a response, that's where it was. My apologies, it gets lost so fast and it's hard to detect or to go through there and sort the ones that the ones I want to read and the ones I don't want to read. Most of them I don't want to read. So, anyway, if you go to all mail, I did not know this. Don't go to your inbox.

Go to all mail. And then when you click that little checkbox that selects everything on the page, you have an option right there in the middle. It says, do you want to select your entire inbox? Do you want to select everything? I never saw that before because I'm really in the all mail inbox. So I checked that, and then I marked everything red and boom, it wiped it all out. So now would be a good time to send me an email. It's just because now I'm going to see it.

And now I'm focused on I can keep this at zero. So that's the goal. That's the new practice. And yeah. So if you do send me an email and you don't get a response, it's typically going to be for one of two reasons. One, you're just asking way too much. Not that it's too much of me, but it would take too much time to respond or it'd take

too much time to read. Something simple. You want to connect. You got a quick question. You know, I'd be happy to answer those. But don't send me an email asking me how to do a subject to transaction. Don't send me an email to ask me, so how does this whole wholesaling thing work? Or don't send me an email asking, how do I calculate my rehab budget?

All that kind of stuff, that's what the academy's for. And I've gone to great lengths of answering all those questions inside of the academy. And I can't just do it in a one or two sentence quick reply. email. So don't ask me those questions. And then the second thing, as much as I appreciate hearing your life stories when you send those to me, they actually, when I get the chance to read them, when I have the time to read them, they are very touching. So I love hearing about your journey. And I love hearing about how this show over the last almost, I don't know, what going on, started our ninth year, has impacted you and it's touched you and has helped you. And so that's

awesome. I love it. But if it's too long, then it kind of gets put on the back burner. And with the intent of getting to it, but then I never typically ever actually get to it. So anyway, that's done. And that's, it's like a huge weight off my shoulder. So if that's something that plagues you, go do it. It feels so good. So anyway, I did that this morning. And then the very first email that came through by Mike, Mike sent me an email. And he just happened to catch me. I think it was like at five in the morning. Nobody was up at my house. And it was all quiet and it's dark. I had my cup of coffee. and just kind of, you know, planning the day. And as soon as I got zero, the very next email it came through was Mike.

And so he sent me this email, and I just thought I'd read it here. I think it would make a good show conversation or show topic. It says, Matt, first, thanks for what you do. You are inspiring me to get out of the rat race. I've been listening to your podcast and attended the Cashflow Conclave Highlight webinar on Wednesday. I have owned a few rental properties for about three years now and really want to expand my business. I'm having lunch with the local real estate investor who is about 70 years old, has 70 properties for sale, and he is looking to sell little by little over the next few years.

He is an experienced real estate investor who is selling, not a distressed homeowner. Is there a certain strategy you would recommend that I approach with? How would you approach the lunch meeting being a new investor who does not have a lot of cash? I have a few ideas, but would appreciate your thoughts slash ideas. Thanks so much, Mike. All righty, so good question, Mike. And it's actually pretty simple. and nothing really changes here except one little thing.

And so the first thing you want to know, you got to know your deal standards going in. All right? Just because you have somebody ready, willing, and able to sell you a property doesn't mean you are going to buy it. Right? You have to know what your deal standards are. If you're going to hold on to it, you have to know what your minimum return on investment. You're willing to accept that minimum cash flow number. You have to know what that minimum number is.

And if you don't meet the number, then that's not a deal for you. Second thing is, if you're going to flip the property, you have to know what your minimum profit is that you want to be. Like, you know, mine is $10,000. I'm not going to do a deal unless I make at least $10,000. And even then, I kind of think about it. But at least I know that's my minimum deal standard. So if I can't get enough equity position in this in a property to get to flip it for $10,000, I'm not going to flip it. And if I can't get 33% ROI, for example, I'm not going to hold on to it.

So that's how I look at stuff. Okay. So you got to know your minimum deal standards going in and don't waiver. Stick to your standards. Be a disciplined real estate investor. Don't do a deal just to do a deal. Don't buy a property just because someone's willing to sell it to you. That doesn't mean it's going to turn out well for you.

You're an investor. Your job is to make money. So make sure whether you're going to hold it or you're going to flip it that you actually make money and you're going to make the kind of money that you want right now. Okay. So that's first thing. Know your minimum deal standards. Second thing, ask the seller what they want, right?

Don't assume that they want full price. Don't assume that they want all cash. Don't assume that they are going to finance. Don't assume anything. It's like the second question is you have these incoming leads coming in. You know, the first question is tell me about your situation. Why me? Why now?

You get all this mail. Why are you calling me right now? And why is now important? And why would you focus on me? You have all these other options. Why me? So that's the first question. Second question is, what would you like to have happen?

Right? And the way that question is phrased, and it's not normal English for a lot of people, or normal phrasing, and normally the way they speak. But you don't want to assume anything. Ask them what they want. So that'd be the second thing, Mike. So first, know your deal standards going in. Know the minimum that you're willing to accept for yourself. Okay. Second is find out what they want. Like, what do you want? Like in the ideal world, Mr. Investor, you know, you've been in this business for a long time. You're getting rid of these 70 properties. And, you know, I'd love to help you out with this. situation, but what do you want? What would you like to have happen? So once you got those two answers, you know your minimum deal standards, you know what they want to have happen. Now just put together offers of price and terms that meets both, that satisfies both so both parties can get what they want. All right. So pretty straightforward. You know, if you're dealing with a seller that is not distressed, you don't have a lot of leverage. So you just got to do the best you can with what you got to work with. So if you can control the price or the terms, you can create a deal for

both of you. Okay? Just kind of choose. Do you want the price or do you want the terms? Because one, if long as you can give me one, we can make a win-win situation here. All right. So not a lot of leverage, though, if you don't, there's no distress in place. And then if he's an experienced seller, there's probably not a whole lot of, I don't know, crafty words or negotiations that you can come up with that's going to help. No smoking mirrors, nothing like that. So just kind of get what you got. Right? So know what you want. So know what you know what they want and see if you can create some price and terms combinations that allow you both to get what you want. All right.

So thanks for the question, Mike. And thanks for being my first email after reaching inbox zero, which took me, I don't know, maybe eight, nine years to finally get off my to scratch off my to do list. All right. And then also last week, I was going back and forth during the Epic intensive. I was still helping my clients. and with a brand new client specifically, a brand new R-EIA's client, I mean, less than, you know, less than two months for sure, probably about six weeks or so.

And he and his team, they actually just left my office, you know, for sure less than two months before when they had their implementation day. So they were here, had their implementation day, and we put everything together, and we set them on their way. And from a dead stop, they know nothing about real estate. This was a brand new thing from them. And from a dead stop, they've already closed one deal, and they also have three more, I believe, under contract. They got a few more under contract, of which two of those that they have under contract are with seller financing.

I mean, this is from a dead stop. They know nothing. They were just here. And all of a sudden, we're going back and forth on Vox. And I got this, I got that. What do here? What I do there? Just walking them right through the whole thing.

And they got one deal closed and they got three more about two. So what I wanted to do was just give him a quick call. I wanted to check in a little quick. And I'm going to record the call. So I want to check in kind of with what their first few weeks have been like to see if there are any insights that you can pull from the conversation for yourself. So on the phone, please help me welcome brand new real estate investor, Mike Pearson. Mike, welcome to the epic real estate investing show. Thanks, Matt.

Good to be here. Did you hear me? Yeah, thank you. Thanks for having me. You bet, you bet. Hey, real quickly, I wanted to reach out to you and I thought I might as well record it while I do this. I wanted to know what's going on over there. Your results are not uncommon, but when they happen, I really want to plug in and share the experience with everybody else to let people notice how fast results can happen.

So just before we met, can you tell me what you were doing? I just moved down to North Carolina with my brother, but right before the, that I was working with a contractor. Then right before that, I was working with a working landscaping up in New Jersey. Okay. Perfect. And you move down to go ahead and take real estate investing on full time with your brother. He's full time Marine Corps. So how is that relationship working together? How do you delegating the duties and responsibilities? Well, Parker's more so the big picture aspect. And then me and Michelle, shell, we run the day-to-day operations.

So we do, we have the most contact with our clients and with pretty much everything. Right. Okay. So you guys are kind of running the operations and he's maybe more of a, I don't know, not a supervisory role, but like just input creatively and operationally, like the vision of the company, right? Yeah, definitely. He got us all together and definitely has a, since he's able to step away from what we're looking

at so closely, you can give us like a clearer, clear site of it. Awesome. I guess you could call it. Right. Okay, that's awesome. All right. So you guys applied for the, I guess Parker is who I met first. He applied for the RIAs program.

And after we got on the phone and we decided that it would be a good fit to move forward. You guys were out here very quickly after that decision was made, I would say less than, probably less than two months ago or right at two months. And he came to once we, uh, had that initial conversation on the phone. We went ahead and started putting your entire business and your systems to work. We came to the office and we showed you how to use it and how it worked. And boom, all of a sudden you guys started hitting me up on Voxer via the way that we communicate.

And you guys were getting results right away. And so kind of walk me through like once you left the office here and you went back home, what has happened since then? Okay, quite a lot, I guess. The week after we got home from meeting with you guys out in L.A., we were getting phone calls. Michelle and I were getting so excited, like, we're getting phone calls, we're getting phone calls. And then we kept, like, walking through it. Then we got our first house under contractors.

Then we kind of overpaid for it, so we had to flip it instead of hold it. And I think, too, this past week or a week before, like, it was a boom. We got three houses on your contract in one week, and they were all for the direct mail campaign that you guys helped us set up. And it was just a whirlwind of emotions and just like it was a great week, but also a very hectic week as well. but it was uh we're definitely uh making a lot of strides and also learning a lot right as we go yeah sweet so um up to this point i mean you guys left the office this was you've never had really any investing or real estate experience up to this point right no not at all okay so the phone started ringing and what was it like answering the phone and making those initial calls how did

those go uh at first a little nerve-wracking but then uh once we've realized realized it's you're just having conversation with someone. It's just talking to someone about their property. They all went pretty well. We haven't heard horror stories about people like yelling at people on the phone and so like that. We haven't actually had any of those only we've had voicemails left of people angry at us. But in that it's gone pretty well. Okay, so the process is you just kind of follow on the script that I gave you? Is that how it's working? Yes, definitely. The script is almost, it's not magic, but it's, it's very easy to follow.

It's great. And it's funny, I was actually looking up, like, reading on negotiation books and stuff like that. And everything that was brought up is basically, like, you don't even even tell us to, like, everything that, every negotiation book I've read is in the scripts that you've given us. It was pretty cool. See the direct correlation. Great. All right.

So you're having the conversations and then how are you getting to the signed contracts? Because up to this point, I think we have one deal closed and we have three under contract. Is that right? Yes, that's correct. Okay. So. Process of having that conversation to getting the contract sign. What does that most consistently look like for you?

So we get on the phone. We ask them a couple questions. the script that you have, then we, after we get all the information we need from the script, say, all right, we're just going to run some numbers here, and then fully analyze the house with all the repairs they gave us that needed the repair estimate, and all that. And then after we analyze the house, see if we could work out for us. We call them back and see if we can meet up in person and see that house and actually see.

everything that needs be done. And then after that, like the one house we got on our contract in Wilmington, Michelle went and looked at it, came back and gave her thoughts on it. We tallied up the repairs that we thought,

and then we went back and gave her an offer, and she accepted it right there. That was pretty cool. And then the other two, it was the same process. We went back and saw the house, analyzed it, went back with the number. And then the one actually, it was a bit of back and forth of not just in person, but on the phone and through email of like going back and forth of numbers. But it worked out.

So, you know, what actually inspired me to give you a call and check in and record this and share it with everybody was one was how quickly you guys were getting results. two was the the last box you sent to me which was just I think Thursday or Friday so like what four or five days ago that you got two deals under contract with seller financing in place how did those come about okay um well this

this gentleman was a investor himself from New Jersey actually just like us down here in North Carolina and uh we had we had pretty good report with him uh he was an investor trying to unload his two properties and he told us like yeah he'd be interested in seller financing and uh so we were like great that's awesome we presented him the first offer we

presented him he was pretty much at loss loss of words at it because he's like I can't do this because we're so new we're like I know down we're not we're not going to give we're not going to give a down payment and he's like no I need a down payment so that was the one that went back and forth with a lot and a seller finance the 20% down payment then seller finance the rest of it so great so you're going to hold on to those yes that's a the three we got all last week is we're going to hold on to all those definitely a good win for us right there's we the best part was that we were able to come to an agreement and like both sides were happy with what what was said and done so perfect Perfect.

So in this short run, what do you know now that you wish you would have known on day one? Day one, as in thinking about doing this, I would think just go out and do it. Like, there's nothing holding you back. I mean, everyone will, everyone's a lot nicer than you think they will be. So questions when you need to know something. And don't be afraid to show your cards in terms of being brand new, I guess. Right, right. That's not that there's nothing to really be afraid of.

It's not really a disadvantage of being brand new. Just go out and do it. Yeah, exactly. Super. All right. I summed that paraphrase that for you, but I think that's what you're trying to say. I didn't want to put words about.

Okay, good, good. Cool. So I'm sure that you guys have come together, you, Michelle, and Parker, and have talked about what this could look like in the few, What are you guys envisioning from this point going forward? Well, I'm a big Grant Cardone guy. So I like to annex everything. And then Parker and Michelle are much more, they bring me back down.

And our goal, we have stepping stones, but our goal is like 20, 20K a month. My ultimate goal is 200 a month. Mm-hmm. So, but yeah. Overall, though, we just want to be financially free. Like, that's what we're trying to do with these. We're trying to hold as much as possible so that we can become financially free and do whatever we want whenever we want. So does it feel like it's like now it's within the realm of possibility much more than it was when you guys were here in the office?

Absolutely. It's just being, having this little experience has created so much more confidence in us. Awesome. Everything's come together, knock on wood. Oh, great. Cool. So I'll let you go. Let's check back in in the next 60 to 90 days and see where everything has panned out and how your progress has been up to that point. All right. Thanks a lot. Cool. Mike, take care to say hello everybody and talk to you soon.

It sounds good. Bye. All right. Bye. All right. So what did you notice? What did you learn? What is there for you to grab from that conversation and actually use to make a difference in your business? Now you know, Time to do. All righty. So that's it for today. God bless to your success. I'm Matt Terrio.

Living the dream. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home for us, we got the cash flow. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.