Brian Trippe is an expert wholesaler who hosts the largest REIA in Alabama. The one time Division 1 college coach first fell in love with real estate in July of 2012. To date, he now owns 80 doors of rental properties. In this episode, he shared how he runs his wholesale business, the ins and outs of doing probate deals, and how he managed to accumulate 80 rental properties in just 3 years! So many real estate and wholesaling insights and wisdom in this episode, you better have a pen and paper handy!
Just like any neophyte in the industry, Brian started his wholesaling journey not fully knowing what he was doing. However, that didn’t stop him from taking massive, imperfect action. While his first deal took him 45 days to close, he earned $10,000 from his efforts! From that point on, he was unstoppable!
- Brian now owns a lot of properties because he does something not many wholesalers do—he manages his wholesaling pay check really well. He pays himself, he saves, and then he allocates at least 20% of the amount to marketing.
- He believes that as long as marketing is targeted and efficient, it can definitely bring in more sales.
- He was also able to accumulate several properties by using the BRRR strategy
- Buy it for cash (Ideally at 70 to 75% of what it will appraise for minus repairs)
- Rehab it (put a renter in there)
- Refinance it
- Other key takeaways from this episode
- The book he got his business model from
- The significance of having a “marketing momentum” going
- The best time to find deals (this might surprise you!)
- What “over-leveraging” is and why you should avoid it
- What are probate deals
- How to find probate opportunities and leverage them
- The importance of networking
- The honest and wholesome strategy you can use when making phone calls (It’s very effective!)
Even if he had a lot of apprehensions at first, Brian went out there and took massive, imperfect actions. While wholesaling can be scary for neophytes, go out there and act anyway. And just like Brian, you just might be the next person to take the wholesaling world by storm!
- Rich Dad Poor Dad by Robert T. Kiyosaki
- Profit First by Mike Michalowicz
- BiggerPockets Website
- Alabama Real Estate Investor Association (ALAREIA) Youtube Channel
- Postal Impact
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Tom Krol: Hey everybody. Welcome back to another amazing episode of Wholesaling, Inc the number one podcast in the country for wholesaling real estate. Today’s guest is Brian Trip. We have an amazing guest today. This is a gentleman who is hosting the largest RIA in Alabama. He is an expert wholesaler. He owns over 80 doors of rental properties where we all want to be. So he’s going to show us how to get there quickly, simply and with less education and more instruction. So we’re going to start picking his brain right away. You guys know this is the no fluff, no BS zone.
Speaker 3: So we’re going to pick his brain, see what we could find out. And remember as you’re listening, this is not just education, this is implementation. This is instruction. So take this information, run it by a real estate attorney and implement, implement, implement, take massive action.
Tom Krol: Remember the guys and girls who get the most results. Those are the ones who win every single time. So progress, not perfection, guys. Don’t get a perfect, just get it going. All right, Brian, can you hear me okay?
Brian: I can hear you, man.
Tom Krol: Awesome. Well, it is such an honor to have you on the phone. Joe McCall was just telling me how awesome you are. He said, Oh, you got, you got to meet this guy Brian. He’s a phenomenal motivator. He knows exactly what he’s doing, laser focused. So I’m super excited to be with you here today. Thanks for coming on the show.
Brian: It’s my pleasure. I’m excited to talk to someone who has so much energy and is so excited.
Tom Krol: It’s all mass. It’s just coffee. It’s just coffee. That’s what it is. It’s not my natural energy. But they, well, I mean, how could you not be excited about such an awesome industry? I was just… My wife and I just welcomed our little boy, Levi into the world and while I was–
Brian: Yes. Congratulations.
Tom Krol: Thank you. Thank you bro. He’s a little guy. He’s a, he’s only just a very tiny… He was a little bit earlier than we expected. But while I was sitting in the NICU, I got a text or a message or something. We did, I think $33,000 and I was like, what is going on? Decided this is the greatest business in the whole world. I am totally disconnected from the business and we’re still doing deal after deal after deal. Love it. But awesome. So what I’d like to do with you is, we have a whole bunch of listeners who are excited about wholesaling.
They’re just getting started or they’re just kind of learning about it or they’ve already done a few deals and I want to pick your brain, find out what you know. How you’ve been able to acquire so many properties, how you run a wholesale business where you’re not fully engaged in it. So let’s get started. Before we do, can you just kind of give us a little brief summary about who you are, where you came from, how long you’ve been doing this, and what you do. Just kind of like a little bit more about who you are.
Brian: Yeah, for sure. So I’m originally from right outside Chicago. I moved to the state of Alabama in 1998 to go to the university of Alabama. Roll tide! And I bounced around. I think like a lot of us kind of bou– Didn’t really know what I want. I graduated from college, didn’t really know what I wanted to do. I got into Division I college basketball coaching. So I was doing that. And I went to a Rich Dad Education seminar. That’s how I first heard about real estate. And that was in July of 2012 and Tom, just like you say and like you preach, I had no idea what I was doing. Went out and took massive imperfect action and I made $10,000 on my first wholesale deal and it took me about 45 days. But I didn’t have a victory bell, man.
Tom Krol: Here, here you go, you ready? Here’s your victory bell.
Brian: Five years later I get my victory bell. Awesome. That’s awesome.
Tom Krol: That’s awsome. I love it. You know, it’s funny, right before the podcast started, guys, Brian and I were talking and I said… I was apologizing to him because I said, “We’ve had to reschedule this podcast two previous times. The last time was because my son Levi was born”. But before that, talking about speaking about Rich Dad, Poor Dad, it was because we had lunch with Robert Kiyosaki, the man himself from Rich Dad, Poor Dad, which was so incredible. And anybody who has not read Rich Dad, Poor Dad by Robert Kiyosaki, you should stop this podcast right now and go to Amazon.com and buy Rich Dad, Poor Dad, especially the updated the 20 year updated version. I will tell you if you’ve read it already, reread it and if you haven’t read it, you must, must read it. It is absolutely a game changer and how so many of us get our start in real estate. So anyway, I didn’t want to… Go ahead, Brian. I didn’t want to interrupt you.
Brian: No, no, no. I, I mean I 100% agree with you that that book’s a total game changer for sure. And that’s actually how, you know, that’s where my business model came from. So you know, I wanted to wholesale properties or I mean, yeah, wholesale in order to get money so I could buy properties creatively and all sorts of different ways. That’s how I’ve been able to accumulate 80 doors so far in about really in only about three years. So anybody can do that. I think the biggest key takeaway there is when you do get a big paycheck from the wholesaling, don’t go spend it all. You need to reinvest in obviously in the marketing. You need to just, you need to pay yourself and you need the save.
Most people, just like one of my coaching students just recently got a really big check for us for Birmingham, where the wholesale checks are a little bit smaller. The average deal is a little smaller here than it is nationally. But got a really big check for us, and it’s gone in a month and I’m like, “Where’s your… Are you marketing? Or did you put some aside for this, which I teach?” He’s like, “No, I had to do this and I did this.” I’m just like went on vacation. I was like, “Oh my gosh. We’re back to square one.”
Tom Krol: Well you know, do you follow any specific methodology? Cause I know a lot of our tribe members are very familiar with Mike Michalowicz. He has a book called Profit First, where it teaches you, take some money out first as profit, then live off your expenses based on what’s left rather than the reverse. But do you have anything that you’d recommend for people who are… They get their first big check– because I do see this all the time. I had a guy who got a $14,000 check and then literally like disappeared. I don’t know what happened to that money, it was gone. So what, would you recommend for that?
Brian: I definitely recommend to put a minimum of 20% into marketing. Right away, minimum. Marketing’s the fuel, right? That’s the gas that you pour on your little spark, that you’re trying to get going. As long as your marketing is targeted, and it’s efficient, then that 20% should blow up into a lot more deals. So 20% minimum, but you also need to save, Tom. You need to save another 30% minimum, minimum.
And that’s all I did. That’s all I did from the very beginning was reinvest in the marketing, which in the beginning I didn’t really have any clear direction and I made a lot of mistakes, which we could talk about because I think we learned most from mistakes that other people have done. But reinvest in the marketing. Then I saved and I went and bought property, and I bought it creatively but very low down, low to zero down. Paid cash for a couple of properties and used the BRR strategy, where I bought it, fixed it up, rehabbed it. Then I rented it out and refinance it. Did that a few times.
Tom Krol: So wait, Brian. I just want to slow down for one second. Can you just tell everyone what the acronym, the BRR strategy… Can you just give them a brief summary of what that means? Because everyone listening right now, these are our listeners who… This is exactly what they want. They want to wholesale to get cash to buy properties for passive income. Which, by the way, and I just want to make another side note guys, before Brian explains what the BRR strategy is.
I literally was just on the phone. Heather, you know who you are in Tennessee. You’re listening to this podcast. I just had a conversation yesterday with Heather. This is such a trap that so many people fall in. I said, “How long have you been in the course?” She said, “Oh, since March.” I said, “How much have you made?” She said, “Over $50,000.” I said, “Well, what’s the problem?” She said, “Well, I’m not consistent.” I said, “Well, when was the last time you did marketing?” She said, “Four months ago.” So this 30% guys, you don’t have to be so crazy with analytics, Brian is 100% right. Thirty percent right back into marketing. Boom. Again and again and again. Just keep hitting it. That’s how you grow because you don’t have that false start.
Brian: And Tom, I’ll talk about the BRR strategy in just a second he’s a second. But what you just said is so important for momentum. Momentum, when it comes to marketing, it’s… So when we start a campaign, we’re going to get a few calls, right? But the next week we’re going to get a few calls from that first campaign. Obviously we’re going to have marketing go out the second week, but the second week we’re going to get calls from the first week. The third week we’re going to get calls from the first week. And so if you continue your marketing, the beginning is the hardest. But if you stay consistent every single week, you have a mail… If you’re doing direct mail, you have a mail drop every single week. Every single week you’re do your driving for dollars. You cannot take a day or a week off from your market. Even if you go on vacation for four weeks, do not turn off your marketing.
Tom Krol: Right? It’s like getting a train going again. You guys, everybody needs to listen to this. You should rewind this and listen to it again. Watch. Watch this guys. I’m going to show you why Brian is so successful. Brian, what about when, what about during the holidays? Christmas, Thanksgiving, new years. Do you still market then?
Brian: Not only do you still market Tom, that’s the best time to find deals. I just, literally, yesterday just got a contract on a house that I’ll probably do. I’ll probably make $30,000 minimum. I got an insane contract because I’m answering my phone at a holiday time where we are, we’re recording. I don’t know when this is going to come out, but today’s December 8th and this is the holidays right after Thanksgiving, right before Christmas where no one wants to work. And Tom, believe it or not, I’m in Birmingham, Alabama and it’s snowing outside right now and it’s, snowing for us. Like kind of like crazy almond, my office and I’m hustling. I’m working today because I’m willing to do what other people are not willing to do so I can get what other people don’t have and that’s that’s what it’s all about.
Tom Krol: But Brian, I thought it slows down during the holidays. That’s what everybody says
Brian: It picks up for us. It picks up, you know. But do you know why it picks up?
Tom Krol: Because you pick up.
Brian: That’s right because they’re calling around and calling around and calling around. I’m going to give your listeners one of the best tips that I could give anybody. This is a statistical fact for my area, okay. I’ve I’ve tried to over no matter what time of year it is, obviously I think things can be more amplified this time of year. But no matter what time of year it is, just try it. Try to Google, we buy houses your town, take the top 10 and call them all. I promise you seven of them will not answer their phone.
Tom Krol: Awesome.
Brian: Seven will not answer their phone. You already have a 70% leg up on your competition if you will only answer your phone.
Tom Krol: You guys can’t argue with that. I love it. Very, very cool. All right, so that is so true. The take away there is the holidays, it doesn’t slow down. You slow down. So don’t slow down. Let’s just do deals. All right, so BRR strategy. What does that mean? How can students start getting on track to pick these properties up? I will tell you too, just as another quick side note about this, I did have that lunch with Robert Kiyosaki guys and I will tell you, I came back from that lunch, just a changed guy.
But I will tell you that one of the things I noticed about Robert Kiyosaki and about all these other large, large guys who are really killing it, the big difference is they saved their deals. So whereas we’re so busy giving our deals away to other investors… That’s okay to make a lot of cash. You don’t want to stay on that track forever. It is much more effective. The big difference is the people who keep the deals are the ones who really, really make the most. So BRR strategy. What does it mean? What does it stand for? How do we implement it?
Brian: So the BRR strategy is something, I think we got it from bigger pockets, somewhere on bigger pockets. I think that’s where it came from. But you know, you buy it, you got to buy it for cash and the only way you can… So I… Tom, I started with no money, bad credit, right? So you’ve got to have money and good credit to do the strategy. So that’s why it took me three years to build before I could do the strategy. But you buy it, you have to buy it for cash. And I even know people who’ve bought it with a line of credit. So it doesn’t even have to be necessarily be, as long as you stay within certain parameters, certain loan to value parameters, which, I don’t know if we want to get into, but you buy it for cash, you rehab it, which is the Rs’, BRRR. You rehab it, you put a renter in there and then you refinance it and some add another R and you repeat it.
So obviously the keys there, buy it for cash and buy it for cash at 70 to 75% of what it will appraise for, minus repairs. Because if you don’t do that, you can’t do that… When you refinance it. The goal is, for me anyway, is to pool all of my money back out. So when I do a what’s called a cash out refi, most lend… not most lenders… There are some lenders around the nation that will do this, that will allow you to pull out up to 75% of appraised value.
So as long as you buy it correctly, then you’re going to be able to pull 100% of your money back out. And that’s why that last R comes into play. You just repeat it. You can literally recycle the same in our area. You can get a great rental in a B class area for $50-$60,000 we’ll rent for $850-$900. That’s what we covet here. So all we have to do, all I have to do is save up 50 or 60 grand and I can use the same 50,000 over and over and over to keep acquiring rental properties.
Tom Krol: Okay. So, so I want to make sure I totally understand what you’re saying. So if I’m hearing you correctly, you’re saying you have to start, you have to wholesale until you have actually, when you say buy for cash, you have to have $50,000 in the bank in cash. Is that accurate?
Speaker 1: That’s, I think that is accurate. I think there might be some ways around there. You can use other investors to kind of work with and partner with if you don’t have the cash immediately. But the way I did it, and the way I recommend is, just work your tail off and save up that money to where you know it’s going to be… It’s going to be a decent rental for your, every area is different and maybe you’re even buying rentals outside your area. Maybe that’s even something that’s… If you’re like in a California or maybe, I don’t know about where you are, Tom. But if you’re in an area where you can’t get good ROI from cash flowing properties, then it’s not a problem just to go find someone like me in a cash flowing area like Birmingham, Alabama, that will help you find them. But you’ve got to have the cash upfront. Otherwise the lender is not going to be able to, not going to allow you to pull all your money back out,
Tom Krol: so you buy it with cash, then you rehab it. Now, rehabbing is a scary word. So I know a lot of people, it’s like, they just throw their arms up, including myself. I have no idea. Granit and high hats and ceiling fans. I’m not good at that stuff. So I usually will buy a property that’s already kind of rehabbed and then just do cosmetic stuff. I’ll send somebody in to paint or whatever. So you buy it, you’ll rehab it up to I guess a rental standard, right? So some of that work can be rented. Then what you do is you will put a property, you put a renter in. Are you managing the property yourself or do you hire a property manager?
Brian: I highly recommend that you hire a property manager. We have a property management company that’s in house, so I still have my hands involved in it. For me, it’s usually just a text message if it gets to me, but I highly recommend you use a property manager. The pushback is usually, “Well, I don’t want to give up the 10%” Well, sometimes you can negotiate it down to nine or 8%. And sometimes, typically speaking, if you’re a wholesaler and you’re becoming successful and you’re getting to this point to where you want to start buying the deals that you’re getting, the great deals that you’re finding your time should be more valuable than the 10% you’re going to lose, or 9% or whatever you negotiated to. It. should be more valuable than that.
Tom Krol: I totally agree. I totally agree. So then you fill it, you have it rented and managed. Now you do a refinance. So now your goal is to now… So let’s just say you bought the property for 50,000 you paid 50,000. Now it’s worth, let’s just say 100,000. You now want to take 70K out of the deal. Is that essentially what we’re looking at?
Brian: Okay, so here’s what I do. Here’s what you can do and here’s what I do. It’s hard to say most lenders, but there are lenders out there that will let you borrow up to 75%, which is the lender I used, up to 75% of appraised value. So yes, in your scenario, Tom, where you buy it for 50, you’re all in for 50, you buy it and you rehab it and you’re in for 50 but it appraises for a hundred, technically speaking, with my lender, you can pull out $75,000. Now I don’t want to do that though. I don’t want to pull out $75,000. I want to… I believe in leveraging. If you read Rich Dad, Poor Dad, you’ll get it and you’ll understand it and you’ll understand the power of leveraging where you can literally multiply your efforts, what you’re trying to do.
However, I do believe that there is something that’s called overleveraging, and even those 70%, 75% may not be overleveraging to most people. I don’t want to go there personally. That’s my personal strategy. I would just pull… And I’ve done this and I’ve tested it. I would rather, I had opportunity to pull out 45,000 but I only took out 32 because I was in it for 32 and I only wanted my money back and I didn’t want to pay interest. I didn’t want to potentially get to the point where I’m over leveraged on a certain property in a certain area. I would just rather take my 32, go do it again instead of having to pay. Because here’s what happens, Tom. You go out… First of all, it’s so appealing and it’s nearly impossible for someone to say, “Hey, I’m going to hand you 75,000 and for you to say, no, no, no, no, no. I only want 50.
Tom Krol: Right, right. Okay, got it.
Brian: It’s against everything we believe in, but I’m telling you guys, it’s the smart way. It’s the smarter way to do things.
Tom Krol: I love it. Okay, very, very cool. Okay, so that is the BRRR strategy. It probably requires a little bit more if you guys are going to really be doing that. It’s going to require a little bit more in depth, which we don’t have the time for on this podcast, but before we move on to another subject, Brian, if somebody wants to, I know you have a YouTube channel, if somebody wants to find out more about that strategy or what you do or how you implemented, what is the best resource for them to check out?
Brian: I do have a video on our YouTube channel, on the BRRR strategy and how we’ve implemented it. The best way to go is just to go to YouTube and literally search Ala REIA, and that’s the best way to get a hold of us. It’s A-L-A R-E-I-A. REIA is an acronym used throughout the country for Real Estate Investors Association. So we’re the Alabama Real Estate Investors Association, so we’ve shortened it to Ala RHEA. So definitely check that out. Check out our YouTube page. We’ve got lots and lots of cool content. We’ve got great stuff on Subject Two. All sorts of different strategies that you can use to get rentals cheap or zero out of your pocket.
Tom Krol: I love it. Okay guys. So it’s the YouTube channel, youtube.com, ala reia, A-L-A-R-E-I-A.com. Or ala reia regular, just…
Brian: Sure. Alareha.com.
Tom Krol: Okay, perfect. All right, awesome. So let’s get on to the… When you got started, how did you overcome… I know a lot of people in this line, they haven’t done their first deal yet… challenges. How did you overcome them? What would you suggest for people who are just starting? I also understand that you do probate deals. If you could kind of explain a little bit more about that and what probate means and how you find these deals and what does all of that look like?
Brian: For sure. So I’ll just kind of start out with your first question is when you first get started, I think a lot of things are scary, right? You don’t know anything. You certainly don’t know it super, super well. And that’s why I love what you say, Tom is, “Don’t worry about all that.” Just go out and follow the process that you’ve outlined and just go and do. I think that that’s so critical. The scariest thing in the beginning is probably talking on the phone, and I get it. I coach people every day and I ask them, try to keep them accountable, “How many offers did you make today?” I’ll ask. “Oh you know, I, you know, I didn’t really.” You get that kind of thing and it’s like, “Well why didn’t you? Why didn’t you make more offers, because your phone’s ringing off the hook.” Then once you really get down to it, they have a hesitancy of talking on the phone to people, that they’re scared.
I get this guys. If you’re listening right now and you’re nervous to talk to someone. The biggest objection I get is, “Well I don’t know. What if they say something? What if they know more than me? What if they ask a question that I can’t answer?” That’s why we have scripts. I’m sure you did too. Tom and scripts are fine. Scripts are good. The problem becomes when you don’t know your own script. So guys, actors use scripts, right? But they’re believable. They’re believable. So why are they believable? Because they know their script. So really, truly get to know your script. What is it asking? What is it doing? What are you actually trying to get accomplished? Understand that first. Hey, if they asked you a question, you don’t know the answer to say, “You know what, let me get back to you on that. Or let me do a little bit of research on the property and you know, I’ll get back in touch with you soon.”
Tom Krol: So I just want to say guys, what Brian just said is absolutely critical to overcoming phone calls because the number one thing that I, and I, I’m with you, Ryan. I think it’s one of the biggest fears, but the number one reason that people trap themselves in those calls is they’re trying to be something they’re not. So the best policy is always be a truth teller and a truth seeker. Somebody asks you a question and you don’t know the answer to it. First of all, realize that any question is an objection. Every time you get a question, it’s an objection. That’s number one. Number two is always be honest.
“You know, Brian, I don’t really know the answer to that. I’m just starting off. I bought this really expensive course on the internet. I don’t know what I’m doing. I’m following this guy. He’s telling me that I should be calling people to looking to buy real estate. You know, I’m not really sure, but I’m possibly interested in your house, but I’m not sure if I am.” That’s the best way to handle objections is when you get these objections, just be honest. Say, “Hey, I’m brand new real estate investor. I’d love to start out,” and don’t try to be something you’re not and that’ll, that’ll save a lot of anxiety.
Brian: Tom, that what you said, I’ve never heard someone say that before and it’s really interesting. But here’s what’s going to happen if you lay it out like that and you say it like that. You know what’s going to happen?
Tom Krol: They’re going to root for you.
Brian: Their defenses are going to come down and now all of a sudden they love you now–
Tom Krol: Exactly.
Brian: Because they’re not talking to someone who is a professional, big, bad real estate investor. They’re talking to someone who’s just like them.
Tom Krol: Exactly. It’s so true. It really works and it just puts that, like you said, it puts their defenses down and it’s just a beautiful strategy that’s honest and wholesome and it works. If it’s not a good fit, that’s good too because faster get through that no. That’s one thing that you always notice with new wholesalers and Brian, you tell me if I’m wrong on this, but you always notice their phone calls are like 45 minutes each. They’re like these grueling phone calls, but when you get somebody who’s done, 300 deals, boom, boom, boom, phone calls, seven minutes, three minutes, two minutes. So I think that’s really a big part of it, but awesome. Very cool.
Brian: But, but I think too, you’re right about the phone call length, but I think for me in the beginning I needed to have those long phone calls. I needed to have those long conversations because I was learning and just talk, getting someone. I think in the beginning, if you’re brand new, the more you can get someone to talk… Now I have a journalism degree. I’m used to being on… I was on our college radio station. I kind of did a lot of communications where I was asking questions. I was the guy, the media guy asking questions at press conferences and stuff.
So that was easy for me. But if you can get to the point where you can ask open ended questions and get the seller to talk, you’re going to learn so much. They might throw out a couple of phrases or words and you can just jot them down. You’re just like, “I don’t really know what that even means. I’m going to look that up later.” I think it’s vital in the beginning to have long conversations.
Tom Krol: Absolutely. I totally agree.
Brian: But obviously, once you’ve tightened it down, your time is really, really valuable. But in the beginning, your time is, your learning. So just chalk it up to talk it up to education.
Tom Krol: I love it. I totally agree. That’s awesome advice. So there you guys go. Number one is get on the phone; progress, not perfection. Just get comfortable talking to people. So key obviously.
Brian: For sure. Do you want me to get into probate a little bit?
Tom Krol: Let’s do probate. I know you guys… There’s a lot of people who have a lot of questions about probate. Brian is a total expert. So how do we, well, how do we… Tell me what does it… What is probate? What does it mean? How do I find these opportunities and how do I leverage them?
Brian: For sure. So for us, and I think things are different, like all throughout the country. But for us, what happens, our average deal size in our area for wholesale is around $10,000. Seven to $10,000. So I’ve heard from a lot of people that is a little bit lower than the national average, which I get that. Our price point’s way, way lower up in Birmingham. So probate deals though… I just got one under contract yesterday. I’m probably going to make minimum 30,000 I could make as much as 40,000 on this wholesale deal and we just got under contract yesterday. That’s a massive deal for us in our area. The reason is, and I’m going to get into what it is here in a second, but the reason probate is so important is that these are typically people who have inherited a property and don’t want the property they’ve inherited.
They’ve got this unwanted property and they would, literally, just would rather just be done with it, get the check. They’re not shopping it around typically. They don’t really care about that. They just want to get it done, get the process over with. So probate is when someone passes away… Probate means a lot of things but, specifically to what we’re talking about today is when someone passes away and they have property and they have a will, the will goes through the probate process. Even if they don’t have a will, you still have to, the property still has to go through the court system. What the judge is going to do is if they don’t want to, if the heirs don’t want to keep the property, then the judge will order, or if there’s disputes or anything like that, the judge will order that the property needs to be sold.
So they could just all agree that heirs or heir could just agree that they just want to sell it. So what happens is they typically reach out to investors because the property is not going to be in tiptop shape. It’s not going to be something that they’re going to be able to typically put on the MLS because it’s going to need a little bit of work. Someone’s lived in it, someone may have died in it. They’re calling people like me and you.
But the way to nip it in the bud is to not to sit back and wait for someone to call you. Actually be proactive and get in search your… Every county’s going to be different. But search your county records for probate for people who have filed in probate where someone’s died and where there’s property. Like I said, it’s going to be different for every county, but, and I don’t want to really get into the, this is where I’m not like a super, super expert because I hire a service to do this for me, but all I can tell you guys is probate is vital to what we do because it’s our biggest spreads.
Tom Krol: So how do you find a service that does a… Do you mean you have somebody in house who goes down to the County or is there like a list of company?
Brian: Yeah. There are list companies for sure. We use a company, I don’t know if I need or want to promote someone else’s product, but we use a company that’s called Postal Impact and they’re out of Delaware and they do a really, really great job of… They do the mail for us. We just pay them as a service. They get someone boots on the ground here and go to the courthouse for us and they do all the leg work and we don’t have to worry about it.
Tom Krol: Is that Christina or Christine or–
Tom Krol: I am using that service as well.
Brian: You didn’t even know it.
Tom Krol: I didn’t even know. Well I actually met her in Collective Genius. Are you in Collective Genius?
Brian: I’m not, but I’m friends with everybody who is, so.
Tom Krol: There you go. Well I actually met her. Yes. We just started their service and it was about, but I would say about, well it was back on the Tampa CG meeting, so that was when? That was December, January. I don’t even remember what it… No, this is November. Anyway, I happen to use the same service. So awesome. Definitely a great company. They are exclusive. Meaning I think that they only have three people per county or something like that.
Brian: For us. They only have one.
Tom Krol: Is it one?
Brian: Well I think what they do is that you can pay extra to be the exclusive and that’s what I’ve chosen to do for a couple of our counties that are around Birmingham. But the point being is guys, find out in your area where you can make the biggest spreads on your deals and that may just take time. It may just… For us, even before we exclusively did probate, because that’s really all we’re doing exclusively now is probate. But before that we knew where our deals were coming from, what types of deals were they and we knew what kind of spreads were we getting. When someone’s like shopping it around and it’s a perfect property, we’re obviously not… We could still wholesale it, but we may not get as big of a spread as if it was a distress property inherited property. We were already wholesaling. Over 50% of our deals were inherited properties. That was something we were doing before we exclusively did probate.
Tom Krol: Are you using a list source? I’m sorry, a inheritance. The U.S. Lead lists. Lance and Terry?
Brian: I do not do that, but we do use List Source for all of other lists.
Tom Krol: Okay, terrific. So probate, awesome source. If you can’t afford a service, go directly down to the county. Brian we’re looking up people who are what you said filed probate. Right. So I guess I don’t have the address of the house in there.
Brian: Yeah. So it kind of gets complicated and it gets… It’s going to be different for every county. Like our county here in Birmingham, Jefferson County is probably the most archaic county on the face of the earth. So for us we literally have to go down to the courthouse and we have to go into hard files, not even get on a computer. There are some counties where you can literally do all the work from your house at your computer. So it just kind of depends. You’re looking for specific things as far as… Because, like I said earlier, probate itself, marriage licenses are filed in probate. There are so many different things, just deeds in general. There’s so many different things are filed in probate court that you’re specifically looking for wills. You’re specifically looking for certain things that are going to lead you down the path to what we call probate, which is death.
Tom Krol: Got it. So crystal clear, this is how you get the journey started. Here’s the secret guys. If it’s complicated, less people are doing it. So if you’re looking for a fun new way to get lists, going to the county and doing this and learning that system is, is a really good way to do it.
Another little side note too, sometimes when you go to the county, you’ll see someone like a lady there sitting, going through files. Often that could be a person who works for a list company who’s charging them per name that she sends out. You may be able to have a conversation with them and say, “Hey, can you pull this for me as well?”
Brian: That’s a huge tip.
Tom Krol: Absolutely. That definitely works for sure. They’re relatively inexpensive, but yeah. All right, awesome. I love it. So we are deep into it. So let’s wrap this up and give these guys a great tip. So starting off, what would you recommend just starting off at wholesaling or wanting to grow and scale your business, what are some real good tips that you can say that we can implement right now that would be just phenomenal for all of our listeners?
Brian: Tom, I hate to beat a dead horse, but I can’t. I would probably say the biggest thing, the biggest tip is what we’ve probably talked about three times already. If you’re not taking massive action, massive imperfect action, then you’re going to fail. For me, when I first got started, first and foremost, I fell in love with real estate. I fell in love with everything about, I was fascinated by it. I was reading everything I could get my hands on. I became a student. Secondly is anytime I learned something, I went out and tried to implement it. I did it totally imperfectly. If you want to talk about my first deal? My first deal, I messed up ten different ways. Ten different ways. I didn’t even know… I didn’t even have a good closing attorney. I literally called the attorney that closed my personal house a few months earlier and I… That’s the only thing I’d ever done in real estate up until that point was buy a primary residence.
I went to him and said, “Hey, you know what? This is what I’m looking to do.” He goes, “You can’t do that. That’s illegal.” I’m like, “Well look.” I showed him a couple of things out of a Rich Dad book. A Rich Dad, one of their seminar books. He was like, “You know what, let me look into it a little bit.” I said, “Well.” He got back to me. He’s like, “Look, I’ve never done something like this before. It looks like we might be able to do it.” I’m teach… You never want to be teaching the attorneys and teaching the counsel how to do wholesale.
Tom Krol: One hundred percent correct.
Brian: But the point of the matter is if the deal went through, I got a check for 10 grand when he handed me that check, the words out of his mouth were, “Wow, I can’t believe this worked.” This is the attorney speaking. “I can’t believe this worked and I can’t believe that. We got to try this stuff.
Tom Krol: That’s awesome. Is he still your attorney today?
Brian: He is not. Haven’t used him.
Tom Krol: Got it. Got it.
Brian: It just goes to show that… Don’t feel like you have to have all your ducks in a row. Go out and mess up cause you’re going to mess up. I mean I hate to break. You’re going to mess up, but the best piece of advice, just go out and mess up. Learn from it. Learn from Tom. Learn from his systems. Learn from his mess ups, my mess ups. So you don’t, you can do it less or not mess up at all.
Tom Krol: Absolutely. I mean that is the best advice. I couldn’t agree more. I think that if you go into it knowing there’s no success or failure, there’s only results and you just keep working at it until you’re getting the results you want, it’s the biggest takeaway in it prevents education from becoming a cancer. Which education I think is the number one reason why most people fail as there’s just this constant education. Then you heard what Brian said is it’s, he would read the books, but then he went out and took the massive imperfect action. So, that is the key, absolutely, to all this. I love it brother. It’s amazing.
So that is the secret. So Brian, thank you so much for being with us today. I know I want to send people… If you guys want to know more about Brian, especially if you live in the Alabama market, I know we have a ton of tribe members and rhinos in Alabama. As a matter of fact, I was just on the phone with one of them. I can’t think who it was, but awesome market. You must check them out if you live in Alabama. There’s no doubt about it. But either way, huge resource is the YouTube channel. Alareia is the channel name. Is it one word?
Brian: Alareia is all one word. A-L-A-R-E-I-A. Tom, just real quick, if you do live anywhere near the Birmingham area, we would love to have you come out to our REIA meetings for 100% free. All first time guests, attend 100% for free. Get to know network. We didn’t even talk about networking. If taking massive imperfect action is number one. Number two is networking. Get to know other people and just knowing Tom for me is a great resource even though he doesn’t live in my market. Just you know, knowing what he’s doing. Knowing what he’s up to is a huge deal for me and for what we’re trying to do.
So get to know other real estate investors in town. Get to know buyers, get to know other wholesalers that you could potentially co wholesale with and do joint ventures with. There are a lot, a lot of great things that you can do at REIAs. So come to our REIA meetings. We meet at the Embassy Suites hotel in Homewood, Alabama, which is a suburb of Birmingham. We’re six o’clock every other Thursday, I’m sorry, a second Thursday of every month, 6:00 PM second Thursday of every month. Come to our meetings. Come meet me. I’d love to shake your hand in and get to know you.
Tom Krol: Absolutely. If you are in Alabama, this is a no brainer. Get to that REIA meeting right away. Find out when the next one is and get there networking. I couldn’t agree with Brian more. 100% we all get a dollar when it comes to networking. Spend your time with four quarters, not a hundred pennies. These guys are doing what they’re supposed to be doing and if you want to be able to see the best and… You know it’s one thing to believe that it’s real. It’s another thing when you see people and they’re actually doing it and you can see that it’s real. Then when you do it goes through the roof.
Brian: That’s awesome.
Tom Krol: So I love it. Brian brother, thank you for being here. I would love to come in and hang out at your real one time. I-
Brian: Come on!
Tom Krol: Absolutely. I’ll send you a note next time I’m in REIA. Actually, Julia and I almost bought a vacation home in, I think it was Lake Burton. Is that the name of the…
Brian: You told me. You said, you said Mount Laurel or something?
Tom Krol: Mt. Laurel. I think that was it. Yeah, that was, it’s like a little community right off… We almost bought a home there. We ended up going somewhere else because it was a little too far West for us, but a beautiful area. I’d love to come and say hello one day soon so I’ll definitely make a point to do that. That’d be awesome.
Brian: We’d love to have you, Tom. Thanks so much for having me on the show, man. God bless. Thank you brother. Enjoy the day. We’ll talk to you soon.