The Science of Flipping - The Cheat Code to Consistent Deal Flow | Sharad Mehta

Starting point is 00:00:00 just be consistent and be okay with doing the hard work be okay with doing the hard work because the reward is going to be 100 worth it like what you mentioned it's like the grind that you do like it's it's just don't focus on the sexy stuff like don't focus on you know yes of course you want to get to like seven figure you know but you can only get there by putting in the hard work and if i could just give you one word to get to that, it's be consistent. Just be consistent and that you'll be amazing. You'll be amazed at how much progress you will do in like six months if you're consistently doing small steps day in day out. What is up the science flipping family? Welcome back to another incredible podcast.

Starting point is 00:00:43 This guest is one of my fan favorites. He himself is a big time real estate investor, but today he and I are going to give the cheat code to you for what the seven figure real estate investors are doing right now. So if you want the cheat code, you want to stay on for this entire episode as Sherrod from ReSimply is here. What is going on, brother? Hey, Justin. Thank you for having me, man. Excited about being on the podcast. Congratulations on all the success you've had with the podcast. It's incredible. You know what it is, man. I have great guests like you. We come with the heat. We come with the energy. We come with the great tactics and what people can take away. So listen, as I just said, you have a lot of clients that are seven figure a year earners,

Starting point is 00:01:31 and we are going to go give the goods away to those that are trying to break into that space. So let's start right away about what are some things that you are seeing right now that the big timers are doing that is creating this deal flow, the lead flow, the revenue flow? What are they doing? Absolutely, man. So if I had to distill everything in one word, I would say it's consistent, consistent, consistent, consistent. So they are consistent with what marketing channel they want to follow like the biggest difference we notice an investor that are just getting started versus the ones that are consistently doing deals is the newer investor will go in and try one marketing channel for a

Starting point is 00:02:16 couple of months give up go to the second one do it for a couple of months give up go to the third and they just keep jumping from one marketing channel to another. The ones that are doing consistent deal flow, like I'm talking about investors doing four or plus deals. We have some guys that are doing 30, 35 deals a month, every month. The number one thing that they're doing is they're doing consistent marketing. And out of the consistent marketing, if I had to pick one that most of the investors are using, consistent investors are using, it's, I would say direct mail.

Starting point is 00:02:47 Direct mail tends to be the marketing channel that we notice, whether it may not be their primary marketing channel, but they're doing some sort of direct mail. Either it could be their primary or they're mailing to a niche list that they have. But they go in with the expectation that they have to commit to it for six months before they can make a decision on it, whether that marketing channel worked or not. And they're thinking long term, they're not thinking short term, they're not going, it's not that they're not living like paycheck to paycheck, like, so to speak, if put it in different contexts, they're going in and saying, Okay, I'm going to commit to this marketing channel for six months.

Starting point is 00:03:21 And then after that, so once they commit to that for six months they have leads coming in then they have a consistent follow-up method right i mean it's a cliche fortune is in the follow but it is so so true you could make so much money just by being consistent and then people sometimes get hung up on hey what should i say it's no rocket science just be simple follow-up just follow up with the seller every month and say hey mr seller are you still looking to sell your house i just want you know i'm still interested some variation of that just letting the seller know that you're still interested in buying the property and then let the follow-up do its magic and once you have that once you do that for six months and you consistently follow up, it's almost impossible not to get a deal after six months.

Starting point is 00:04:09 The only reason you would not get a deal after six months, either you're marketing to a wrong list, you have a wrong marketing list that you're mailing out to or doing some marketing to, or you have too small of a sample size, like you picked a list of 10 people to mail to or market to. That would be the only reason. And then you're not consistently following it. If you do, if you're consistent, if you have a good sample size of marketing list and you consistently market to them, follow up with them, it's almost impossible not to get a deal out of that list. If you're like me in the real estate game,

Starting point is 00:04:39 you know how wild things can get. Managing leads, marketing, sales, operation, it's a constant hustle. But let me tell you about something that has been a game changer for thousands of investors out there. ReSimply. It's an all-in-one software that truly is a lifesaver for anyone serious about the real estate investing game.

Starting point is 00:05:03 What's crazy about ReSimply is how much it packs into one platform. You've got absolutely everything you'll need from list stacking, driving for dollars, automated drip campaigns, a cold calling dialer, a full phone system, email management, speed to lead, buyer management, automated task systems, accounting features, literally the whole nine yards. It's like they built the powerhouse software just for us investors. No more juggling different subscriptions and trying to integrate a million different tools. So if you're anything like me, and if you are ready to streamline your investing business and close more deals, you've got to check out ReSimply.

Starting point is 00:05:48 Head over to ReSimply.com forward slash pod. That is R-E-S-I-M-P-L-I dot com forward slash pod and get 50% off your first month. Oh, and they're also throwing in a free 30 day trial. So jump on while you can. Trust me, you don't want to miss this. What type of lists are the big boys using right now to find those deals? I would say the number one list is absentee, absentee with equity. If you do that absentee with equity, so just to get more specific, 30% or more equity or unknown equity, you know, and then five years or longer ownership or unknown ownership. If you had no idea what list to start with, I would say start out with that.

Starting point is 00:06:43 And then depending on how big the market you're in, if let's say you get 10,000 people on your list and it's too big of a list, then I would layer in, then I would stack it with vacant and then see what list size you feel comfortable with. But if you have no idea which one to start with, I would say start with absentee with equity and five years of ownership or more. That's great. One of the things in just kind of my two senses is building out a business. Recently, we've been targeting a lot more of the financial need, right? And so recently, tax delinquent, notice of defaults, reverse mortgages, things of that nature, because what's happening in the economy real time right now is people are starting to finally see the pain. I think it's been a long time that the government or the news has been talking recession, recession, recession. But I think we're here in the sense of people

Starting point is 00:07:35 feeling financial pain. And so I have now recently started targeting more of the financial indicators as much as anything else. And what that has led to us is we've actually found more people that we've been able to help stop foreclosure. Like today, one of my team members stopped a woman that is going to foreclosure on October 14th and we were able to stop it and get the deal done so she didn't have to go to foreclosure. And so I would also add into this. If you're going to do absentee, I love it. I would also say pain, financial pain, it is out there. And it's not an easy subject for everybody,

Starting point is 00:08:15 but finding people that need us, like the saying always goes, right? You get paid on the value that you provide. And so I would also one caveat that yeah one you're 100 right one caveat small caveat that i just sometime it can be people that like you of course like have tons and tons of experience sometime it can be tricky when you're dealing with a time sensitive homeowner and you give them false so that's where i would say just you only have to be carefulness that you get this lead and then someone is going through, has this absolute deadline of two weeks and you're like, you're going to come through. But a new investor, it could be a little bit tricky.

Starting point is 00:08:55 So in that sense, definitely partner up with someone like you or someone more experienced who can help you get to the finish line on the first deal. But the way I look at in my market is if I do absentee with high equity, it's going to cover some of the subset financial pains because for us, they have to have equity in our market. But what you're saying, definitely, if someone has the skill set, the knowledge of going after the niche list, like the financial pain, you know, like the more time sensitive the list is pre foreclosure pain, you know, like the more time sensitive the list is, pre-foreclosure, tax delay, where they're going to lose their house,

Starting point is 00:09:29 like the cost of not taking an action is pretty life-changing for them. That is an absolute amazing list to go after. But just the only caveat, it can be something tricky for newbie investors to go after that because these are some difficult conversations. Like someone has had death in the family or they're going to lose their house or they're you know like because of foreclosure or tax there's no there's no doubt about it there's

Starting point is 00:09:53 no doubt i'm saying it definitely doesn't sell into like a newer investor trying to go get their first deal there's no doubt yeah now you yourself are a big investor and you've been a big investor for quite some time, but you're also the founder of ReSimply. And so I wanted to talk a little bit about ReSimply because I think there's a connective tissue between what you can see your clients at ReSimply and their success model and what you're doing and why people want to look into ReSimply. So let's talk about ReSimply a little bit as a over like a 30,000 foot view of what it does.

Starting point is 00:10:27 Yeah, absolutely. So resimply, if you think about it, helps you on the prospecting side, you know, to generate leads using like cold calling, website, driving for dollar, list stacking, everything that you can imagine. And then it helps you once you have those prospects convert into leads,

Starting point is 00:10:42 then you can manage those leads, those motivated sellers through our CRM. You know, we we have full phone system email all everything that you can imagine to use in in a software and then once you have the property in the contract then you can also dispo those deals uh using our you know managing your buyers list sending a bulk email product text to your buyers list and also have a dispo website and then we also have a bookkeeping and accounting feature built in i used to be an accountant before i left my accounting job to do real estate for time so you can do your manage your kpis and that's that's another thing you know not to like go off track is that's what so the bigger investors are doing they're very very

Starting point is 00:11:20 fanatical about tracking their kpis and making data-driven decisions in their business absolutely and so what are you seeing that your clients that re-simply all the things what is the most useful tool that they're kind of utilizing for their business i think it's it's like being consistent like you know going back to like consistently marketing and then once you have those leads coming in right whether let's say if you're a single person uh solopreneur and you're starting out i cannot i cannot stress enough how incredibly important it is when you talk to a seller right if you have a team you want to listen into the sales call that your team had but even if you're just by yourself and you do a call with a seller you know the calls that you called it and everything go back and listen

Starting point is 00:12:03 to the call you will be amazed how much you realize after like you may have this call, you're like, man, that went so well, but you go back and you listen to that call. You'll be like, oh my God, I can't believe I didn't ask this question. I can't believe the seller mentioned this and completely, you know, skipped over that. So that is some things that bigger teams are doing. They're listening to that. They're auditing their calls that go well. they're auditing their calls that go well they're auditing the calls that do not go well so they're always working on process to improve things in their business like what else can they do for example if a sales call goes really well they start using that as a template okay this is how we want all the sales call to if something doesn't go well then they look into okay what did not go well what can we change about that you know and then they

Starting point is 00:12:42 look at and then the most important thing is they look at the kpis make decisions based on the numbers so if you're doing direct mail right and you're sending you have a big list of people that you're marking let's just go back to the example just in that you were giving that you have a pre-foreclosure lift and a tax delinquent list let's say what a lot of investors would do is they would combine those lists very common and they will send out a mail piece right they will use a tracking number and then you have leads start coming in and i know this is good i closed my deal let's say you spend just for hypothetical you spend thousand dollars on it and you make ten thousand like this is incredible i spent a dollar i made 10x but the question is let's say you're scaling this business the question is was it the

Starting point is 00:13:22 pre-foreclosure list that made you money or was it that tax delinquent list if you didn't get a small scale it may not matter but as you start scaling your business these are some very very important numbers that you need to know is which marketing channel which specific campaign in the marketing channel is working so now going back to the example let's say you now separate these two pre-foreclosure lists and tax delinquent list in two separate tracking numbers and you notice that you got a bunch of leads from tax-delinquent way more leads than pre-foreclosure but you only got like three or four leads from people but they were all high quality leads and you were able to convert one and then you do this over two three cycles and like you you will start seeing a trend you will start noticing for i'm just using this as

Starting point is 00:14:03 an example that maybe tax-delinquent lists you you get a lot more leads, but they're just garbage leads. You know, people that are not interested. But pre-foreclosure, you get a lot less leads, but these are high quality leads, super motivated leads. And that's where you can make a decision after three, four months of doing this is like, hey, you know what? I don't even need to market to the tax-delinquent list because these are like tire kickers, not serious and not, you know, worth the time and effort. And I'm just going to double down on the pre foreclosure list. And that's where you start making better decisions. So now imagine the money that you cut out of your business, not marketing to the tax delinquent list, all of that money, you can double down on your pre foreclosure list. And if you can keep up the ROI,

Starting point is 00:14:42 all the money that you save goes directly into your net profit like that's the thing that people have to think about is like of course you want to increase your top line number you know you want to get to like high six figures seven figure or even eight figure in revenue but that should not come at the expense of low net profit so just to put some context around you know give some numbers you should expect at least 3x on your marketing dollars so every dollar that you put in you should expect at least 3x to come back so if you spend thousand or you should minimum minimum expect to make 3x 3x to 5x is good anything over 5x you're doing great just keep doubling down on it so now if you have different marketing channel let's say you're doing direct mail versus uh ppc and mail, you're noticing 6x, PPC only

Starting point is 00:15:25 noticing 4x, take some of the money from PPC and allocate it to direct mail. If you can keep up with that 6x, then just keep putting more and more money into that. So that's one thing that you want to look at is your ROI. That's the most important number is, I mean, more or less real estate investors were in marketing business. So you want to make sure you, the highest ROI you can get on your marketing, that's where you're going to start seeing higher net profit. And then just for some context, the net profit number, whether or not you're paying yourself a salary or not, factor in a number if you were to replace yourself from the business, what salary you would want to pay yourself. And after that, you should look for at least 25% net profit.

Starting point is 00:16:06 So if you're making $1 million top line, then you should at least expect to $50,000 for the business to make, not including your salary. Your salary should, you should deduct your salary and then 25% after that. 25 to 40 is good. Anything below 25, you're either spending too much on marketing or you're spending too much on payroll. Those will be the two main reasons. And then above 40%, your goal, you're running an absolutely incredibly lean business. Just keep doing more of

Starting point is 00:16:35 what you're doing just to put some numbers around, you know, so the bigger investors, what they're doing. Yeah. I think that's really important to understand for a newbie, right? Is they want to get to where the bigger investors are. They want to make that kind of money. They want to have that deal flow. But I would encourage you as someone who I've coached thousands of newbies. And the thing that I impress upon all newbies is while you might want to have a goal to get to where those guys are, where you like, where I am buying apartments and all these things you need to go start doing the thing that no one sees you do that is not sexy on instagram that is not about the

Starting point is 00:17:11 cars the vacations or whatever it's the outbound dialing it's the outbound direct mailing it's the you know door knocking it's the thing that you need to go do first. Don't overly romanticize the big paydays, the million-dollar years. Yes, you need to get there. But to get there, it starts with the grunt work. And this is the breakdown in Sherrod. I'd love to hear, as someone who has a product that centralizes from across a newbie all the way to a seven figure a year earner you know the challenge i have as an educator is is getting them to do the thing yeah right just in one year it lasts like 60 seconds if someone would just go back and listen to that and do that

Starting point is 00:17:58 that's all they need it's just doing the grunt work you know it's like doing the work that's not sexy that's where the money is like looking i i guarantee like people most of the people they don't even look at their financials at all during the year they just send it to their accountant if you did that like i guarantee anyone listening to the if you looked at your financial once a month your pno statement and your balance sheet once a month, I guarantee you're going to make at least 10%, 15% more just by looking at that and reviewing it. I guarantee. Yeah. But people don't want to do that because it's the boring stuff.

Starting point is 00:18:33 But that's where you make the money. It's doing the boring stuff. Well, and it's not in Shrad. You and I should put together some sort of financial class or workshop. Because part of it is they don't want to do it is because they don't know how. They don't know what they're looking for. Like, I'll be honest. I've coached thousands of people

Starting point is 00:18:50 to start in real estate investing, to go get their first deal or second deal or third deal. A lot of them don't even know what a P&L is. They don't even know what it stands for. They wouldn't know the first thing. Now, I don't criticize them. That's actually our schools. That's our schools issue. Our education Now, I don't criticize them. That's actually our school's issue.

Starting point is 00:19:09 Our education space, the formal education is garbage. For people to be able to go to college and not know what a P&L is, regardless of them being an English major or not, they should have some business acumen at some level. I'm not joking. Maybe you and I need to create a financial literacy course just to say, guys, if you're going to do this business, treat it like a business from the day one, meaning account for the real cost of your business. Even if you're just starting in your, let's say you pull this from resimply. By the way, go to resimply.com. It is an incredible software, big promotion for Rashad. And like, I can't speak enough to resimply. So go to resimply.com, check it out right now.

Starting point is 00:19:46 The point I'm making is even if you pull this, let's just say reverse mortgages or notice a default and you door knock, well, your gas and your mileage of that car is an expense to the company. You need to understand that because that is a tax write-off. And I'm all about helping people earn a lot of money. But now I'm at a phase that I want you to earn a lot of money, but I want you to keep the money you earn. I don't want you to actually just have to go pay it. Go ahead.

Starting point is 00:20:14 That's, oh my God. That's what I preach all the time. I ask investor, would you rather have a million dollar top line business, but you're only making like 50 to 100,000, which is true for a lot of investors. Or would you rather have seven, $800 top line business, but you're only making like 50 to 100,000, which is true for a lot of investors. Or would you rather have seven, $800,000 business, but you're netting two 50, $300,000. I would any day take that business. Less headache, lean business, but people just go about the top line number

Starting point is 00:20:37 for some reason, because it's the vanity metrics. It's the vanity metrics. Like it's just like, that's where people feel like, oh, I can put it on my Instagram. You know, I can just talk about this. But you got to look at how much money at the end of the day you got into the business for freedom of time and money, right? How much money you're making from the business.

Starting point is 00:20:54 If you're just showing million dollar top line revenue, but you don't have anything to take home, what's the point of running the business? It's not even a business. It's a job that you've created for yourself or you're not making any money. So that's one thing like across the board, people that are doing consistent deals, that's something they look at. They're very, very strict about looking at their financial,

Starting point is 00:21:13 looking at their data, looking at their KPIs, like knowing exactly what's making money. It's like, for example, put it in a different context. Like someone who wants to lose weight, right? They're 300 pounds, they want to get to 200 pounds. So they know the goal is to get, you know, lose 100 pounds. There are two variables. You go to gym, you work out, and then you eat healthy. There's like, that's it. There's just two variables. If you're not going from 300, 200 pounds, one of those variables is off or both

Starting point is 00:21:38 of the variables is off. Either you're not going to gym or you're not eating healthy. You could be going to the gym, but you're having a McDonald's after every workout. It's not going to help you. So you it's the same thing in business. Like you consistently market, consistently follow up and consistently track your KPIs and just keep reiterating the process. You're going to have such a profitable business. It's incredible.

Starting point is 00:22:00 Like I flip about 20, 25 houses a year and i have not looked at any of my flips i've not stepped foot in into any of my flips in last four or five years but we build systems and processes i make all decisions based on the data on the kpi and that's what we notice across the board investors that are successful are doing that they're focusing on hey how much net profit does the business have? The top line revenue should not come at the expense of the net profit for the business. If they want to make extra $100,000 top line, then at least they want to keep their net profit percentage 25% to 30%. Otherwise, that's not worth it. What's the point of making extra $100,000 when you're spending extra $100,000? I would rather not do that because then your other costs

Starting point is 00:22:44 in the business are going to go up. Yeah. And Sherrod, you said something that's so important is people, they have this timeframe of when they expect the result. And so I have five laws of success. And a lot of the listeners have heard me say this time and time again, but the fifth law of success is remove your time expectation on the result. And if you can do that and just keep doing the thing that gets the result, then to your point, Shrod, you're going to win. You're going to actually have that day that you're going to look up and say, oh my God, I just made seven figures or I built the business or I can quit my job or whatever the thing is. But I see this all the time and I'm sure you do too.

Starting point is 00:23:25 They get so caught up in, let me go get a deal in 30 days. Sherrod, I'm going to go pull a list from Resimply, and I'm going to go door knock or cold call or text. And then they don't get a deal in 30 days, and they basically just check out. I'm sure you can even measure their usability on Resimply and be like, yeah, after 30 days, they stop logging in. They do.

Starting point is 00:23:44 Yeah, it happens so much and it pains me that like people are not consistent enough and i think they said like to what you said justin is so true they set wrong expectation they hear someone you know getting their first unit 30 days 60 days and that's the that's the milestone that they set for themselves if they don't get it in 30 days they're like it doesn't work it's like going back to the example losing weight like someone who wants to go from 300 200 pounds If they don't get it in 30 days, they're like, it doesn't work. It's like going back to the example of losing weight. Like someone who wants to go from 300 to 200 pounds, like someone may have done it in three months or six months,

Starting point is 00:24:11 but they were like in the gym for, you know, two times every day, like 10 times a week. They were just like, they went on this crazy diet. You have to ask yourself, like, am I willing to do that? Like, or am I okay, like losing the same weight in a year? You know, then you have to decide for yourself, just because someone got a deal in 30 days, you know, you don't know what marketing they did, how much time and effort that they put in, versus like, if you only have like a couple of hours, you know, during the workday, and

Starting point is 00:24:38 then sometime on the weekend, then you've got to set your expectation. Maybe you give yourself six months to do that. And you're bringing some of the systems and process. And like someone to answer calls for you, some, you know, a VA to do some of that thing. People don't do that. They look at like the best case scenario, what someone else has done,

Starting point is 00:24:54 and that's what they want. They don't see all the effort that went into and all the grind that went into it for someone to get that result. But they just want the result. They want to skip over all the effort that went into it. That just happens so, so often. And it's just like you see these people come in try for 30 days cancel and then two months later they'll come back again try for another 30 days and then it

Starting point is 00:25:15 just but unless you change the input like unless you commit to being consistent for like three to six months and have a plan that you're going to follow like it's it's not going to work out you may get lucky every now and then you just happen to call someone and have a plan that you're going to follow, like it's not going to work out. You may get lucky every now and then. You just happen to call someone who is just motivated or you happen to send a direct mail to someone who just happened to be motivated and you may get lucky, but it's not going to happen very often. Exactly.

Starting point is 00:25:36 Now, Sharad, you're flipping about 25 homes a year and you're fix and flipping them. Fix and flipping. What are you seeing right now in the fix and flip world, the market, your listings? Are things still moving for you because you have a right price point? What are you seeing right now? Yeah, I mean, things are still moving because we're at the right price point.

Starting point is 00:25:54 So I live in San Diego area, but I flip right out to the Chicago market in Indiana, Northwest Indiana, for anyone that's familiar. So for us, if the house is under under like 250 or lower it it definitely moves fairly quickly if it's a decent uh finishes because what happens is like these houses qualify for fha for someone let's just say who's buying a two hundred thousand dollar house you know they really have to come out of pocket about seven eight thousand dollars you know three and a half percent down and then we can give them some credit on on the buying on the buying side so they really are coming out of pocket like three four thousand dollars and their mortgage is going to be if you know as pretty close to the rent if not lower than what they would pay for the same house to rent that house so for those kind of houses it's really

Starting point is 00:26:39 moving very fast it's the houses once you start getting a little at least in our market once you start getting a little bit higher up in price houses don't qualify for fha that's where we notice you know it could take a little bit of time but we're hyper focused on that 250k resale price or below that's like 150 to 250 that's our sweet spot that's where we notice how they're moving fast if they can qualify for fha they have decent finishes then that's where we don't have any issue selling yeah i like that price point for a couple reasons for me i like that price point because it's good flip and can be a good rental if you need it exactly right exactly so if the market really changes you're like all right well i'm just gonna hold this one it's not sexy and i may not be making a big payday

Starting point is 00:27:23 but you're not gonna lose your ass either. No one went bankrupt buying a $150,000 home. It just doesn't happen. And so I like it. I teach that. I say, you want to stay in a price point where you have two exits. So everything I buy, I need to have two exits. The margins need to be good enough for me to flip it and to rent it, including the apartments I buy. So when I buy an apartment, I want to make sure I can stabilize it and turn it in a way that if I decided to sell it within like a 24 month window, which isn't favorable for tax reasons, but if I did that there would be margin there to flip it, right? Same idea. Absolutely. Absolutely. Yeah. So I also own a turnkey business and that's one of the things we look at. If for some reason we're not able to sell to a homeowner do we have an exit of selling it to a turnkey provider or turnkey buyer or worst case can i hold it and still cash flow maybe not as much as i would have liked but it's still it's

Starting point is 00:28:15 not costing me money and then i could just hold it for some time until the market turns and then sell it but we have not run into that issue i I mean, if you're in that price point, where if it's FHA, buyer can buy the house, and then it's a good area, then you should not have a problem selling the house. And so are you primarily just using direct mail?

Starting point is 00:28:36 Direct mail and PPC and paper lead. But I would say if I pick one marketing channel, it's the direct mail that tends to be the most consistent for us. And how much do you typically use? We spend about, we send about 13, 12 to 13,000 mail pieces every six weeks. Nice. And, you know, I've done a lot.

Starting point is 00:28:59 I mean, tens of millions of dollars in direct or tens of millions of mail pieces. And what I found is a lot of people walked away from it when PPC became big. And I'm starting to think, and maybe you could tell me, that the callback ratio is starting to pick up again because it got so overly saturated. Our call ratio went like a 1% callback ratio went down to like a quarter of one percent right is it starting to crawl back up because everyone's doing ppl and ppc and cold calling and not doing direct mail yeah i mean it's the i would say the quality of leads has been good it's not always the quantity of leads might not be that good but the quality of leads is good it's become less competitive in direct mail, like for two reasons. One, people are shifting more to inbound marketing, like what you said, PPC, PPL.

Starting point is 00:29:51 And also, as you see more regulations with texting and cold calling, it's becoming a little more, a little less competitive on the direct mail side. You know, people that used to previously do cold calling and texting, direct mail is a little bit more expensive. Marketing is trying to get into the cost has gone up. The postage cost went up again last month. So it's a little bit more expensive, which is good for experienced investors because then there's less competition. And homeowners were previously bombarded with cold calls and especially text. And as that has died down, now, you know, people have a little bit more bandwidth to for more outbound marketing, like direct mail, and then PPC and PPL are also consistent. But again, if I really,

Starting point is 00:30:38 really had to pick one marketing channel that I would do, I would pick personally, I would pick direct mail, just based on our marketing, and then looking at other investors in our database. Now, how many clients do you have on recently? We have over 1600 companies. Nice. And so with all that kind of intel and data, right, would you suggest a newer investor, fix and flip, wholesale, buy and hold, all of the above, where would you kind of suggest a newer investor should be starting? I would say wholesale would be, I mean, if you have some knowledge and experience of managing rehab, then fix and flip. And if you can get the money, then fix and flip would definitely give you the best chance of making money but if not like generally looking at newer investors they don't have the the resources they don't have the

Starting point is 00:31:31 skill set of managing a rehab i would say doing wholesaling would be the right way but with the long-term goal of building passive income like buying more buy and hold so if you're doing wholesaling or doing fix and flip like i would set a goal of for every 10 houses you wholesale or fix and flip, keep one for yourself. So you're just continuously building your passive income. But if you're starting out, wholesale is what I would say people should start out with because you don't need a lot of money in it.

Starting point is 00:32:01 And then you can easily partner up with an investor who can help you kind of get to the finish line on a couple of initial deals. So you can, you know, work with a coach. I mean, that's one thing. If I could go back, one thing I would change is work with a coach. I think that would speed up my so many years of like,

Starting point is 00:32:18 you know, things that I went through, building my own systems and processes. I think that would just help my learning curve go much, much faster. So if I could go back, that's the one thing I would change, just like work with a coach, and then commit to the systems and processes that they have and things that are working rather than making my own mistake. If I can learn from mistakes of other people like yourself, who've already done certain things, and you know, hey, this is what works, this is what doesn't work,

Starting point is 00:32:44 it will save me so many, like months and years of like hassle that i had to go through to figure that out so that's what that's what i would change and just like be consistent with it and then have someone to ask questions to like you know what could the coach join masterminds or do those sort of things yeah i agree 100 i have a rather large budget still, still today. I invest in coaching and masterminds and we're a part of the mastermind together, right? I mean, I believe in coaching at such a high level. Yes, I'm a coach. But for all those out there that are trying to do it themselves, I'll tell you one thing. You need to respect your time more because tomorrow's not guaranteed. Next week's not guaranteed. Next month, you need to get to the head of the line. You need to get to the, you know, I use Disney World as a great example. General admission ticket versus the VIP ticket. One, you get to save a couple bucks. You ride four rides. The other, you spend a little bit more money, but you ride 10 rides.

Starting point is 00:33:38 What would you rather do? You're in Disney World. You want to ride 10 rides, right? So I just, I'm such a firm believer. I appreciate you bringing that up because there's so many i just i'm such a firm believer i appreciate you bringing that up because there's so many people who oh i can go to youtube university and figure it out or or justin i listen to your podcast i know enough it's not coaching right it's not rhythm and someone coaching you yeah i was literally before this podcast i was on a call

Starting point is 00:34:01 with my business coach and i pay a lot of money to him but man every time i do a call with it i feel like this is so worth it like this is so so worth it like the things that i would like spend months figuring out he can help me resolve in it in an hour it just i'm like this feels so good after the call it just gives me so much energy to be able to do that and the mastermind we're in like you go, you come out of it so energized, so full of ideas. It's incredible. It's like hard to explain

Starting point is 00:34:29 like the value that you get out of it until you actually do it. But once you do it and you're like, man, how is it running my life, my business without ever doing this? It's just like you have to kind of experience it.

Starting point is 00:34:39 And then there's no way you will ever go back. It's impossible to ever go back. That's exactly right. Sherrod, what last words would you say? Like, first of all, I want everyone to go to resimply.com. This is a platform that I just believe, regardless of you being a newbie or a seven-figure-a-year earner, a big team, or just a solopreneur, this service is top-notch.

Starting point is 00:35:00 It is top-notch for the space of real estate investing. Sherrod is a real estate investor. It was built from a real estate investor. He founded this company. It's built for us by us type of thing. Right. And so I appreciate you bringing something so good and so much value to our world like Recibly, dude. Thank you for that. And everyone needs to go to Recibly.com now and check it out and just get it, right? It is phenomenal. But what party words do you have for us, Sharad? Man, I would say like if you take away anything from, you know, everything Justin, you and I talked about, I would say like just be consistent and, you know, be okay with doing the hard work. Be okay with doing the hard work because the reward is going to be 100% worth it. Like what you mentioned, it's like the grind that you do. Like it's just don't focus on the sexy stuff. Like don't focus on, you know, yes, of course you want to get to like seven figure, you know, but you can only get there by putting in the hard work. And if I could just give you one word to get to that, it's be consistent, just be consistent. And that you'll be amazing.

Starting point is 00:36:06 You'll be amazed at how much progress you will do in like six months if you're consistently doing small steps day in, day out. Yep, 100%. If you don't expect the result, then you'll stay consistent because you're going to do it as fast as you can.

Starting point is 00:36:21 Absolutely. Well, Sharad, I appreciate you showing up. Thank you for creating such a massively impactful system for us real estate investors with resimply.com. Go check out resimply.com. Make sure you get that. And if you enjoyed anything here and you took something from it, make sure you share this episode with at least two of your friends. Cool. I'll see you guys on the next episode. Thanks, Justin.

The Science of Flipping - The Cheat Code to Consistent Deal Flow | Sharad Mehta

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