The Science of Flipping - How To Get 20 Deals A Month With Cold Calling (ft. Alex Quezada)

Episode Date: October 26, 2021

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What's up everybody, welcome back to the Science Flippin' podcast. I am here with a very special guest. Before I get to him, I want you guys to understand this podcast is all about the systems, tools, strategies to become an expert real estate investor. And that is why I have on this special guest, Mr. Alex Casado. What's up, dude? What's going on, buddy? I am here in his office, as a matter of fact, as now I'm in Florida.

And me and my wife came down to Orlando to spend some time. And we are in his office with his entire team. Right now, you can probably hear him. Oh, there's so many people in there calling smiling and dialing yes all right yep so I want to make sure everyone understands that this is gonna be practical and what you're gonna be able to take away from this episode if you are not yet over at my youtube channel make sure you're watching this video because this dude's an awesome dude so if you're on iTunes listening to this give me a five star

rating and if you have not yet gone over to my YouTube, youtube.com forward slash Justin Colby, start watching these episodes because I drop six YouTubes a week. So with all that being said, dude, thank you for having me in your office. Thank you for coming. Yeah. So let's talk about this because you are one of the top wholesalers and investors in the nation, not just in Orlando. And I wanted to kind of pick your brain on how you've done it what you're doing and all that kind of good stuff so the people can

take as much from this episode away and do it themselves let's do it so maybe give a background of kind of how you got in this space I know you've been doing this quite a long time like myself but how you got in the space and kind of the background of Alex cool so I heard a radio ad on the on the radio for Rama grand how to buy houses no money down that's great went to that event where it was like a pitch vest of everything I bought everything was learning everything every each little course and was had a full-time job doing my timeshare sales and couldn't really focus on it at all.

I quit timeshare, jumped at it full speed on just wondering how to wholesale. At that time, there was a lot of REO properties. Started flipping some REO properties. Wasn't doing volume. This is back when? This is like 10 years ago in December, 2011. Yeah, yeah, yeah. A lot of REO properties back then. So it was REO Rockstar is what got me really going Kearney yeah yeah and Preston Ely and so that happened started went to a local RIA meeting worked with somebody in that that was speaking there locally and joined his team as like his pretty much running his

wholesale business while he did like rehabs and new builds. Did that for like three years and then decided I needed to do my own thing. So me and my brother started our own thing. Started wholesaling houses like three to five a month for like three years. Thought we were doing good. That was great. Then I went to the Find and Flip Summit with Ken and Sean Terry. And went to that. And then realized these people were doing like 20, 30 deals a month. And I was nothing. And then I talked to a lot of guys there.

And they're like, what are you spending on marketing? And I'm like, three to five grand. They're like, yeah, try spending 30. And so I just literally took an Amex card. Let's go. Limits raised. Put it it on there did 111 the next month and then from then on just kind of kept on grinding and doubling our business every single year since then so I want to stop right there because this is actually a subject I get a lot of criticism for which is talking about helping people understand credit and when to use credit when not to right

because I think everyone thinks about credit is consumer credit right like buying the Rolex and all the nonsense I did this because I can afford it first of all but a lot of people don't they just put it on a credit card and try to figure it out later yeah but actually being a business owner and leveraging credit credit cards loans key locks lines credit. That is a major reason why I'm at the place I am today. And you said the same exact thing, right? Like you kind of threw it on that platinum and you said, let's ride because that's a lot of money.

And look how it paid off, right? And so one thing, if I can tell you guys listening and watching this, like take my advice, take Alex's advice, like every successful business owner you guys have ever heard of, Jeff Bezos, Elon Musk, Steve Jobs, you name it. At one point, mostly at the beginning of their career, they heavily leverage leverage. Not irresponsibly, but they know that what that leverage can perform. So meaning like I know right now my cold callers are giving me a certain rate of return, right?

Do you know what your ROI on your row as is uh it's super hot it's like for every dollar you spend how much do you make we're making like 5x so I make 5x on my shocker we use the same company how about that so I make 5x for every dollar I spent on cold calling I make five dollars back so once I know that I can go spend a hundred grand a month on cold calling because I now know I'm going to make $500,000 back. So now that's extreme and excessive, but I'll tell you, you're a great example, just like myself of there is good credit out there. Right. And especially as a business owner, taking that risk on yourself, which you shouldn't be risking anything besides

on yourself. Like, yeah, if you know, you can close deals. So like they'll still go out and be like, I need leads and spend all that money. If you don't know, you can close deals, they'll still go out and be like, I need leads and spend all that money. If you don't know, you can close deals. So if you have leads and you're closing them and you have a good closing ratio and you're like, well, I need more leads so I can close more deals, then you put money into that.

If you have leads and you're closing one out of 100, you don't need more leads. You need to learn how to close and work on those skills. That's right. And talking about closing, and I I'm going we kind of had a plan here I'm gonna go totally left on us but you have how many people right now closing for you right now as I can hear them in the other room six

acquisition agents six right now yeah in-house and how many you want we could probably double that we need no kidding we have too many leads right now so let's talk about that because I think a lot of people also go the opposite side how long did it take you to get to a place of like having let's say five meaning like how many years they take before you were able to start to build the business so for three years I worked for somebody else three years I mean it was just me and my brother and so these past three years is when we started really scaling up yeah and so it started with like just one

acquisition agent then two then, and now six. So every year we've just doubled our business. And the time is now to continue to just take the markets on fire. We're crushing it and just keep on adding on to it. We need more people. We need to have enough leads. We know what we're doing. We have buyers.

We have capital. So we just need to go full force. Yeah. So that's another misconception, right? Most people are like, I need to hire and scale so I don't have to do it. It's not how you treat your business, right? You need to be in the trenches until you have enough capital to leverage yourself out because it's your company, it's my company. I'm going to care the most, right? Someone that I'm paying, whether a salary or even commission based, even more so if there's commission based, they are kind of like, ah, whatever.

It's 3 o'clock. Let's go have a cocktail. I don't care, right? That's the attitude because it's not their business. Are you going to be here until 7 o'clock like we just talked about? Yeah, you're going to be here until 7 o'clock. I don't know if these guys will. Maybe, maybe not.

Maybe you've created that culture. But, like, people shouldn't be hiring too fast. Like, I tell everyone, until you can put a quarter million dollars in your pocket in a year don't hire go make a quarter million dollars that's a lot of money no matter who you are right then you can start talking about it so you were you worked for someone for three years did your own thing for three years and then started hiring that's about the right pace of like success right now you're doing how many deals a month we're doing to we're closing 2025 deals a month but the the my goal was for all this is to get myself out of it I am still in it I

helped my teacher my brother runs my sales staff the acquisition team dispositions but now I have that like kind of on autopilot that I'm able to focus on like self storage buying commercial properties raising money and so it kind of like gave me the freedom that I'm still making that money and I'm now starting other ventures yeah we're we're scaling those as well well so that's that's big business stuff right like that's that's where everyone really wants to be it's the same place where I'm at where you like having a business is very very cool but like look at Elon Musk and all the businesses they run right and everything kind of to some level is a spinoff, right? So I call it like a bolt-on, right?

So I have real estate, but then I also coach people to do exactly what I'm doing, right? And you know, you can have that, or you could do storage, or you could do, you know, only focusing on rentals. Like I wholesale and flip homes, and now I'm ultimately buying rentals

because same reason you're doing storage. Build wealth. Because at some point we don't want to do any of it. At some point, you want to have someone manage it and you just collect a check every month. I think I'm probably 10 years away from that, but that's only because I'm hyper-aggressive. I love working. I love doing this.

I love having interviews like this. I'm probably 10 years away from really calling it a day. And I don't even know if I will then. Yeah, for sure. Right? Really? Well, so what... to get to 20 deals a month how many leads you like you have six people will tell talk about your like system what is going on how many leads you bring in how many calling how many contracting so we are they're dialing a so we have a call center that we use

utilize and we're getting fed a lot of leads from them. We have actually too many leads. That's why we got to hire more people. But right now we're closing one in 15 leads from our cold call center. That's incredible. We have some PPC as well. We dabble in PPC a little bit. Yeah.

But we're scouting throughout Florida, North Carolina, parts of PA. And they're dialing, everyone averages about three and a half to four hours talk time. And so we're contracting probably about 50 houses a month, closing about 25 houses a month. That's about right. And then, you know, just kind of, we just see that there's so much in our CRM that hasn't been touched or recalled back

because the way our CRM works, it funnels the new hot stuff to the front and then our team can save up to like 30 people that they can call back and call whenever on their own follow up schedule. So we need more bodies to touch all those leads in our CRM. So if we have more bodies, we'll talk to more clients and get more deals.

So I love that. The thing that I've found when I've come across that and maybe you're finding it too is like, it it's not even like one out of 15 is incredible, especially cold calling. Like I do a lot of cold calling too. You do more, but I do a lot. And by the way, that is the, in my opinion, best strategy for finding sellers.

End of story. Because it just brings in leads and then you can nurture those leads forever. And it's an event-based business. As I always tell you guys, like at some point, they're going to go through that one thing and if you're calling them then you're going to be the person they take action to so cold calling is hands down you would probably support that right 1000 yeah yeah yeah lowest cost and get the most leads and it's quick quick it's uh not as

responsive you know you're taking action where was I going with the thought of the leads your conversion is high right so most people like if I were coaching someone they'd be like man I just don't have enough deal flow and I'll say well how many bringing leads are you bringing in like 20 a month don't be like well if you converted a hundred you would get 20 deals right so that's not the thing now it's just bodies in the nurture ability right yep so have you ever thought of, and maybe you have, maybe you haven't, like just bringing in lead nurture people?

Not acquisition people that know how to close the door, but like just nurture these people. So we have two virtuals that just started doing that for us. Kind of just go through our CRM and touch those leads and kind of bring them back to life, new hot, like bring them as new hot leads and bring them back to our acquisition. We're gonna look to do that for,

have one person for each of our acquisition reps. As a nurture. As like a nurture person for each person, for each of our acquisition guys. So that way someone's always touching the leads for them, and that way they kind of only, they're not like dialing, they're only like almost like having scheduled appointments

to talk to people on the phone. So what would you say, like how are you hiring your acquisition people right now or not hiring but like paying them salary plus Commission how much salary salaries 24,000 Commission's 8% on the spread and then if it's over 30 grand we give them 10% nice on the spread so incentivize them to get a bigger rip I'm bigger you pay the lead nurture person if you're doing that one-to-one thing cuz I like that idea I've heard that before yeah so the we nurture person is like virtual and so it's through Wamasu yeah they're doing that also for us and they pay like you

know not that much yeah I'd be inexpensive relative to hiring us really like that idea cuz we had the same thing like the last time we looked we had 467 people because this was this morning, that we haven't touched in 30 days. It's a lot of people, right? For sure. And so it's like, we're trying to figure that out real time too, because we're doing really, really well.

We're 20 a month or so, but it's, you could, could we be at 40 if we actually had that component? Yeah, 100%. Right? Interesting problems when you get, right? you could could we be at 40 if we actually had that component yeah 100 right um interesting problems when you get right so like getting to the point of making 250 grand you're gonna have a lot of problems getting to the point where we're at and we're making seven figures it's a different set of problems you're just still gonna have problems nonetheless right for sure and it's

always about finding that solution of what to do and then how are you hiring these people when people are ready to scale what's your process for hiring so we use indeed wise hire Craigslist and an Instagram we've gotten some people yeah are one of our girls here has brought in one of her old friends that was like people sales for sure I think that's my favorite way to use. Obviously, if your people have connects, but Craigslist has been good for us. Nice.

Craigslist and Instagram actually has been the best. And I think everybody in here is actually from Craigslist or Instagram. No kidding. Or referrals. So there you go. Craigslist and Instagram. Yeah. Speaking of which, I'm going to put a post.

If my phone wasn't that far away, I would actually put a post. Because we need a hire. I mean, we just have too many leads. Think about about it 467 that haven't been touched in 30 days and just being at that boarder mastermind I was that last week in Mexico they were saying like don't be afraid to like even use virtual people so we're gonna have an owner meeting about that and talk about you know because we like people with being here the culture you know, because we like people with being here, the culture, accountability,

but we have so many leads that we need more bodies. So even if they're in California and they're a rockstar salesperson, like let's give them a shot full, just commission only on those guys and see if we can round up some people that way and get some fire people. So you would do that US based

or you do that like Philippine based? I think US based. Yeah. You know, because they were talking about like, there's so many people who've, event companies that like went out of business, like Tony Robbins guys and some other people that all do phone sales.

And if you can get, attract some of those people with high commissions and you have like the ability to train them and teach them and have the CRM, the systems in place. Totally. That if we can utilize them uh or utilize you know the world obviously you know virtually then go after some of those guys it doesn't have to be here locally that i don't be afraid of it you know so we're going to talk about that and see about you know

going hiring that direction as well for sure i love it dude is there so if someone was like man i need to get started wholesaling flipping homes you're doing a lot you're in self storage but how what would be some tactical things that you would want someone just getting started to like execute like we talked about cold calling I think that is the very best I would do it myself first right I mean a lot of people like oh I need I go hire someone start understanding what they're gonna go through before you start hiring it right like pull it lifts from prop stream do some virtual driving list from PropStream, do some virtual driving for dollars. My favorite, say go do some virtual driving for dollars,

which is another YouTube video, just go search that on my YouTube, but like start calling the sellers, get used to hearing no's, get used to hearing these things so you can get the confidence. What would you advise? I agree also, like a lot of people say

like you don't have to cold call, like just hire somebody, but I think cold calling to know what you should expect from your cold callers is the way to go and then when you're driving for dollars go knock people just drive for dollars look and then you might forget or you never call you you miss the opportunity go knock on those doors go knock on the neighbors doors go talk to people in the neighborhood why that house is vacant why it looks like that how long has been

like that contact those people by go knocking on the door if possible if not then send the letter drop a letter I used to have like FedEx envelopes I would take from like USPS and write like yellow letters on there and drop them at the house yeah and people always open those if someone's there at the house yeah so do that cold call yourself mojo dial or something like that pull a a list. Cold call yourself. Door knock yourself to get going. And then once you have one or two deals under your belt, then reinvest some of that marketing

into a call center or a VA overseas to just add more fuel to the fire and get you going with more leads so you're dealing with more hot leads rather than the cold leads. And then just grow from there. 100%. Reinvest always into your marketing.

I would 100% agree with that and that goes back to that whole credit thing. Like once you know your marketing, just pour gas in it. I did the same thing with direct mail. If you remember when direct mail was so big. So this is back in 2000, probably 15, 16, Sean Terry and I were talking and he was like, bro, I'm doing 40 grand direct mail and i'm

like ah what and he was like aren't you doing deals i was like yeah it's basically how we get all of our deals and he was like just go put it on your card and i was like okay the very next day i called my mail guy i was like i want 40 grand of mail to go out and that's the same thing either just like let's go and at that time it was like 40 i mean we got a was like, I want 40 grand of mail to go out. And that's the same thing you do, just like, let's go. And at that time it was like 40, I mean, we got a lot of mail out for 40 grand. Now it's like 70 cents or something like that. But like, I don't know, you gotta bet on yourself.

You gotta invest in marketing, right? It's leads, conversion, and disposition. So like you have leads coming in and you're converting them, then you need to pump more leads. You got to pay more for marketing. If you have conversions problems because you have so many leads but you're not converting them, then you need to sharpen your scale skills and get a coach

or read some books and get that conversion problem covered. And then if you can't sell them after you're contracting, then you have buyer issues. So you need to get buyers, build up your buyers list focus on that or just jb with some folks and and have some of those sell your deals we'll sell all your deals i think jving is some of the best way to do any of it right whether it's you have the buyers i have the buyers you have the deal whatever the case may be right if you had a deal in phoenix i could move it in a second exactly so why not give it to someone that can move it versus me having to go Pennsylvania if I get a

deal in Pennsylvania I'm gonna call you hey dude can you guys move this and we'll create this JV agreement is that all day every day because that keeps me focused on generating revenue rather than like hustling to go find something I don't have for sure we do a lot of JVs we have a huge buyers list in Central Florida so like if we have a lot of other wholesalers who reach out to us yeah we sell a lot of their deals and it's just an extra so it's have a lot of other wholesalers who reach out to us. We sell a lot of their deals and it's just an extra set of, it's just a lot of extra income without any real cost. Yeah.

What, um, what do you bring in a month? Cause you're doing wholesaling, flipping your rentals. You have storage, like you're a big operation boy. That's why I'm excited to have you on the podcast.

Just out of wholesaling. Cause it's a lot of my market that listens and watches. What are you able to do every month bringing in for just wholesale so um in June we did like 423 nice in July we did like 200 something but the reason the drop-off we were picking up and closing more deals ourselves so like we have one that's down the street a quadplex that I could a wholesale for a hundred grand we decided to keep that yeah house because it's such a killer deal. We're gonna, it's probably gonna be worth like

450, 500, and we're gonna be all in at like 225. That's awesome. Cashflow and amazing. So like, and then now we have so many more rehabs going on that we, one rehab was a mobile home in Orlando. We just did the rehab, sold it, it's under contract now to close next month for like 70K profit. So some of these deals that we could just wholesale

for 20, 30 grand. This later, profit, revenue, yay. We're keeping them more as rehabs or buying holds. Really anything in Florida, I wanna keep and hold as rentals because the market's on fire here, migration over here. It's crazy.

So if I can hold more properties, we're kind of taking away from our wholesale fees a little bit. For sure. To take more home. But we're closing about 200k a month at a minimum but even that's I was gonna say even if you're not getting those 400k months and you can still correct if you get 150 like but you're also buying five or ten rentals or whatever then who cares right that's what a lot of people don't understand is everyone wants stock numbers and I do 20 plus deals and I'm

making 200 grand a month whatever it's like could you also be buying also be buying? So my big thing, my big mission this year was starting to buy these rentals instead of doing wholesaling everything. And I've probably missed out on several hundred thousands of wholesale fees because I just kept the property. But I'm still making all the money. Like I still have plenty of money coming in. I think that's, but that's for a different episode because we can go on and on and on these are supposed to be 15 minutes I don't even know how far we're in where does everyone find you whether social media wherever you want to point them let them know so my IG is Alex dot the investor Quesada that's also the YouTube channel I got a blog we started following

us around like self storage facilitiess, some new builds, stuff like that. Love it. It's pretty hilarious. It's more not educational. It's a little bit of education in there, but it's pretty funny, I think. And then my website is vaultventures.net if you're interested in being a part of our deals, self-storage deals, new builds, right, rehabs. And interested in, like, partnering, like, financially as a partner a partner in those deals you get a high rate of return on your money and that's it there you go right on bro appreciate you coming out here I

came to you but I appreciate you being not a lot of people like the spotlight so alright y'all that is it for this episode again check out Alex everywhere he told you to go I will see you on the next episode. And if you aren't watching this, you need to go to youtube.com forward slash Justin Colby. See you guys on the next one. Peace.