Today’s guest has achieved something many wholesalers dream about—he has earned over a million in profit in less than 2 years he’s been wholesaling!
Zach Tetley is an inspiring go-giver from Tennessee who has taken the wholesaling world by storm. Fortunately, he was kind enough to share knowledge, insights, and wisdom he swears by so everyone can duplicate his success.
So if you’re ready to take your wholesaling business to the next level, consider this episode a must listen!
- How he finds his deals
- What virtual wholesaling is
- Data he looks at to determine if a city is a good place to do virtual
- Marketing channel he uses
- List he targets
- Top negotiating secrets he swears by
- What “listening to understand” means
- What word tracking or word matching is
- How he deals with confrontational sellers
- Why it’s ideal not to make the first offer
- The importance of making follow-ups
- What he tells himself when he gets discouraged
- Why consistency is key in wholesaling
- Never Split the Difference by Chris Voss
- Nexus Homebuyers
- Call Porter
- Wholesaling Inc. Episode 184
- Max Maxwell YouTube Channel
- Next Level Wholesaling
- Reibar Marketing
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
Subscribe to Wholesaling Inc
Tom Kroll: All right, listeners, we’ve got a special guest today on Wholesaling Inc. I am so excited to be here with you this morning. I’m holding two checks in my hands that just got dropped off to me. One of them is for $11849 and 97 cents and the other is for $12000.00 They both came from wholesaling deals, from houses that I never saw from sellers I’d never met. I love wholesaling real estate. It is phenomenal.
If you don’t know me, my name is Tom Kroll. I am America’s number one wholesaling real estate coach. If you don’t know what wholesaling is, wholesaling is a niche market in real estate where you can make a fortune by simply finding consistently discounted properties in your neighborhood and turning those deals for massive, massive profits very, very quickly even if you have no experience and you’re starting at rock bottom because we all know that rock bottom is the strongest of foundations.
So I’m super excited to be with you today and to provide some really amazing information. We have an amazing, amazing guest today, so honored to have him on the show. This is a young man who lives in Tennessee who just started in this business. He’s already done over a million dollars of profit. He is only been in the business for a year and 10 months.
You guys, what are you waiting for? Get into wholesaling right now and what this guest is going to be sharing with you is how to negotiate those great deals with the seller. This is a topic that you guys write in about all the time. Everyone asks about this. How do you speak to the motivated sellers? How do you negotiate these deals? Do you need to be some master negotiator? He’s going to get down and dirty and right to the meat and potatoes of how to do that.
You guys know me, I’m going to hold them. I’m going to hold his feet to the fire. I’m going to pull out some great information from him. We are going to put them in the hot seat. So I hope you guys are strapped in and ready for an amazing adventure.
And remember, guys use this information today as soon as our guest, and his name, by the way, is Zach Tetley. He’s an amazing young man. As soon as he gives you some information, use it. Try it today. Don’t be a philosopher. Don’t be in education, replace philosophy and education with massive, massive, imperfect action. So make sure that as soon as you listen to this podcast, take a few points away cold, call someone on Craigslist and try these tactics today. Go out and meet a motivated seller today. Make sure you’re making five offers to motivated sellers every single day. Let’s get started with our guest. Zach, can you hear me okay?
Zach Tetley: Yeah, Tom, I can. Thanks for having me on.
Tom Kroll: Absolutely brother. It’s a pleasure. I’ve been watching you for a while. It’s amazing. I actually thought you were in the tribe, but I found out this morning you’re not a student. You are just like a renegade rhino who just went out there and, and got some information from some of our students, I guess Spencer Shadrack up in Tennessee who is a total beast.
So that’s really awesome to know that our, our influence goes that far out, which is amazing. So it’s super, super awesome to have you on the show today, brother, and I can’t wait to discuss this awesome, awesome topic.
But before we do, can you tell us a little bit about yourself, about how you got started, what you do and how you do it and all that so everyone kind of knows where you’re coming from on that?
Zach Tetley: Yeah, absolutely. I grew up in a middle class family in Charleston, South Carolina. Both my parents were hard workers, never really understood the terms of leverage and making money work for them. So I had a wonderful lesson in life on how not to use money.
I ended up in the restaurant industry, worked for Chick-fil-A for about seven years as logistics manager. So I spent my days pleasing people and solving problems and being a steward in the community.
And now I get an opportunity with wholesaling to solve way bigger problems and get paid and enjoy that time with my family instead.
Tom Kroll: Isn’t it amazing how, guys, if you kind of just rewind what Zach just said, it’s always the people who start with service, with being a servant, with helping others, right? I mean, when they asked Jesus, what were the two most important commandments, love me, love God and love others. And I’m telling you guys, this is so consistently a common thread that runs amongst the most successful real estate investors out there is being a servant.
It’s just funny to hear that so consistently on this show. But that’s awesome, Zach. Good stuff. So, you’ve been doing this for a year and 10 months?
Zach Tetley: Absolutely, yep. I met my current partner about 14 months ago and we started a company called Nexus Homebuyers and we’ve been in that company since June of last year.
Tom Kroll: That is incredible. And you have done an incredible amount of revenue in such a short amount of time with not any experience.
So let’s cut through all the fat and let’s get right to the meat and potatoes because what our listeners want to know is how are you, and obviously you’re negotiating really, really super low deals with these homeowners. So I want to know how you’re doing that.
Before we jump into that though, just tell me so everyone can repeat your success. How do you find the deals, because I know you’re in Tennessee, but when I asked you where in Tennessee, you named three or four different cities, so are you doing your deals virtually or how do you actually do your deals? Before we kind of get into-
Zach Tetley: So the majority of our deals are in the Knoxville, Tennessee market. It was a market that my partner and I evaluated after he had spent some time in Nashville and watch the market shifting there. And it was a market that we felt like was being overlooked and we saw a lot of opportunity in the numbers.
Tom Kroll: Okay.
Zach Tetley: And we set up our website in that city and exterior markets would be Chattanooga, Nashville, where we do some deal flow that is virtual. We’re blessed to have some awesome boots on the ground, which are people that are able at a drop of a phone call to go look at a property for us and help us make the right decision with a few pictures.
Tom Kroll: Okay. There’s so many people who are listening who are going to have this question. I already know, guys, how your brains work, because I’m thinking the same way.
First of all, there’s a lot of listeners who do wholesaling virtually and for anybody who doesn’t know, virtual wholesaling just means you do deals, but outside of where you live, so you do them over the phone.
What is the criteria you pick when you say, “Knoxville looked like a good city”? What was the data that you were looking at to determine that a city is a good place to do virtual wholesaling in?
Zach Tetley: We saw that there was a minimum of 200 to 250 cash transactions through a solid few group of buyers-
Tom Kroll: In a year or in a month or-
Zach Tetley: In a month.
Tom Kroll: In a month.
Zach Tetley: On a monthly basis.
Tom Kroll: Okay guys, pay attention here. Okay. Anything else?
Zach Tetley: That’s one of the criteria; also was that we saw the, the cash as-is transfers where at a low economical amount, where we felt like the spreads, the amount of money to be made on the property with the general cost of labor in that, because let’s face it, lumber costs down where you live, Tom, same price as what we’re going to pay up here.
Tom Kroll: Right.
Zach Tetley: So, the only difference is that labor market for contractors. So, you guys, make sure you take this note and write it down. The only difference is only going to be the difference in labor, lumber costs are lumber costs.
Tom Kroll: Okay, so I don’t understand the second point that you suggested. So if I’m trying to evaluate, you said cash over cash?
Zach Tetley: Cash as is meaning the properties that weren’t being sold with mortgages. We saw the price transfers or what people were buying properties for.
Tom Kroll: Okay, so you’re talking about when a cash buyer buys a property for cash, what is he paying for the property? And that is compared to to what number?
Zach Tetley: That would be to compare it to what number it got relisted for and sold once the repairs were done.
Tom Kroll: Okay, so hopefully everybody understands that. So, what Zack was looking at to determine if a market was a good virtual market was 250 cash transactions in a month. Plus what the properties that were selling for that were getting paid for by cash. Meaning there was a hundred percent equity compared to what they were selling for after that cash buyer put them back on the market. Is that accurate?
Zach Tetley: Yes. That is a hundred percent right, Tom.
Tom Kroll: Perfect. I’m not that good at real estate. I’m so-
Zach Tetley: Hey, nor am I. We don’t have to be when we wholesale.
Tom Kroll: Absolutely, brother. So that’s a good point to me. So I just want everybody to understand how you did that. Okay. Go ahead. I’m sorry.
Zach Tetley: We felt like there was a severe need for more inventory in that market and we didn’t see it available on the multiple listing service after we interviewed a few real estate agents.
I had just moved to the market. My partner is much better at the tech side, so him going and interacting with sellers and aside from getting our systems and our marketing and dealing with the buyer pool that we worked with, we felt it was best situation to have Knoxville, me on the ground there and that’s how we built this business.
Tom Kroll: Beautiful. Okay. Got it. So that is awesome cause I know there’s a lot of people with virtual who are going to be asking that question. Okay. So now you send out your marketing. How are you mostly finding your homeowners who are motivated to sell quickly? Through what marketing channel are you using?
Zach Tetley: Okay, so we use direct mail, has been very fruitful for us.
Tom Kroll: Beautiful.
Zach Tetley: We have a five X return on direct mail, so for every dollar I put in that ATM machine for direct mail, we’re getting $5 out. And it’s been consistent that way for us over the last 12 months.
Tom Kroll: I completely love broken ATM machines and I have one in my market also. So I’m with you and I also agree that I think direct mail is still the best way to do it. There are new channels emerging, but I agree with you.
Anyone who is starting, who’s listening to you and they want to get started, can you tell us your top one, three, five lists that you would say, okay, if you [melted 00:09:59] these lists. We’re getting a really good ROI on these particular list of homeowners in the area?
Zach Tetley: Absolutely. Tom. Actually, I learned one of our most successful lists off your podcast. We like to target the 24-hour arrest record.
Tom Kroll: Yes, yes. Isn’t that an amazing list? Nobody really targets that list. Now could you tell for our listeners, because I know this is different in every single county, city, municipality and township, how do you find that list and do you do what… Do you have a virtual assistant who does it? Can you tell us a little bit more about that?
Zach Tetley: Sure, absolutely. So we set out, my business partner, he’s in charge of pulling all of our marketing lists together and he found it off of your podcast. My partner is, Matt [Bigack 00:10:36]. He’s an awesome guy.
Tom Kroll: Awesome.
Zach Tetley: And he looked online 24-hour arrest record. You type in your county name and generally you should be able to pull up some form of a police blotter.
And what we do is we look for the name that’s arrested and we compare it to property records. And as long as it’s not an apartment or something along those lines or a trailer, we will go ahead and either that’s either a tenant or one of the least [Lacy’s 00:11:01] guests, or that could potentially be that homeowner. And then we mail them.
And then we also always cold call those leads as well.
Tom Kroll: Okay. So I just want to pause here for a minute for everybody to hear this. So guys, number one, the first thing I want you to realize is Zach is on this show as a total Go-Giver, right? So one of the things that people always ask is, what do I have to do to have? What do I have to do to have?
But what Zach is showing you right now is more important. Who do you have to be, to have? Always be thinking, be to have, rather than the 99% which is due to have than the 1% always it’s be to have.
So I want you to see, guys, that he’s not afraid of competition. There is no such thing as competition, only collaboration. He’s on here sharing this information. There is absolutely no financial benefit for him to do this. We’re not paying him to do this. He just wants to help change people’s lives. It shows you his heart, who he is a man, as a person.
So be to have is so important, and I want you to understand this. This is a individual who has made a tremendous, more money than people make in years and years of work he’s made in a year and 10 months. And I really want you guys to understand you should go back, take this advice.
When somebody who’s in his position is saying, “Hey, this is ABC. This is how we did it.” He’s, there’s no obligation. He’s just doing it out of his love to share this information. Take this information down and it’s repeatable information. He’s telling you the best list to find motivated homeowners who want to sell their home for pennies on the dollar.
And if you can get good at finding properties at pennies on the dollar, I don’t care what your exit strategy is, you will become a millionaire in a very, very short amount of time. So really listen to this information, guys. This is liquid gold that he is sharing with us right now.
So Zach, sorry, I just wanted to emphasize that what you’re talking about right now is so important for people who are just starting out in their… Things might be rough right now. This is gold information.
Zach Tetley: Yeah, it’s free. It just takes a little bit of hustle out of your end. I mean you can get on there and that information is there in public record for you guys, if you’re willing to do the work.
Tom Kroll: Bam. All right, so 24-hour arrest record. It doesn’t get much better than that. And by the way, guys, I totally agree with Zach. I think that’s a game changer list.
All right, so now here is the list. You send out your marketing, in this case direct mail, you’re sending it to a 24- hour recent arrest record list. These people, now they call you back. Do you guys answer the phone live or do you go on to voicemail or how does that work?
Zach Tetley: No. We actually have a call center that’s based on real estate services that specializes in lead intake, so they handle all of our inbound for all of our marketing.
Tom Kroll: Is that a private, internal… You guys do that? Or is it outsourced to a company and if so, can you share who that is?
Zach Tetley: Yeah, absolutely. We use Justin and Ryan Dossey at Call Porter. We’ve been through probably three to four call service companies in the last year and we made the change to Call Porter and it’s callporter.com
Tom Kroll: You guys callporter.com with Justin? It was and who?
Zach Tetley: And Ryan Dossey.
Tom Kroll: And Ryan Dossey, guys, right there. More gold. Okay. The calls come in and now what happens at that point when you have a motivated seller? They pass the call to you? Do you guys go out to the property? Do you send somebody to the property? Do you just lock it up over the phone? What does that look like?
Zach Tetley: For us, what we do in our market, it’s a little more relationship based in Knoxville, which is our primary. I would say, you know the 80% of our deal flow that we target heavily is in this market.
It works a little better if we go ahead and gather some information. They have the ability to use a program called scheduleonce.com and they schedule our team member, our acquisitions managers based on their schedule. No matter how many calls are coming in, nobody can over-schedule somebody because the software won’t allow it.
Tom Kroll: Right.
Zach Tetley: So they get a lead intake form on Podio that goes into our CRM and it goes through our lead process from there, and then I have a virtual assistant that will follow up and double confirm on the morning of our appointments.
We’re so busy that we have to verify that those sellers are going to be there so I can get someone else fit in if they’re not to be able to meet with our acquisitions team.
Tom Kroll: Got it. But this is so beautiful. Okay, now let’s get to the meat and potatoes. How do you guys get these properties so low and just keep in mind these are our listeners. They might be just starting out.
They go to a motivated sellers home, somebody who’s indicating that they do want to sell, they want to exchange price for speed and convenience. They want to exchange guy’s price, give us a lower price for speed and convenience, which is what we offer as wholesalers.
What are some of the one or two or three top negotiating secrets that you can share with us so that we can get these properties under contract at a low, low price?
Zach Tetley: Perfect. Yeah, absolutely. So I’m actually blessed to follow one of your previous podcast guests. His name was Max Maxwell and some of his YouTube videos, you’ll find his word matching, which talks about positioning yourself with you and me versus the world.
So in that position I would say, you know, say we’re at a point where we’re sitting down and we’re getting ready, down to talk to numbers. “Hey Mr. Seller, you shared with me that you want to sell this house and you’re looking to get rid of all this yard work”, or whatever the headache. You guys’ job, and to this point is to make sure you’re listening to understand rather than listening to reply, because we can’t do both.
Tom Kroll: Right.
Zach Tetley: So when I’m listening to understand that pain point, be it, you know, mom has dementia or the tenant got arrested, it’s an arrest list lead or someone died, the overwhelming-ness of that property. We say, “You’re looking to be rid of this issue.” If they want to move out in the country or they want a condo in Florida near Tom, well you want to sell a house and I want to buy one.
Tom Kroll: Right.
Zach Tetley: The only thing standing in our way is the market. We constantly position ourselves to where we’re not to blame for our offer. The market is always the one that dictates our offer, because we can never overpay for a property as a wholesaler.
Tom Kroll: Right. I love that. So can you give me like a little mock conversation with a seller? What does that sound like?
Zach Tetley: Sure. “You know, I’m going to be honest here. I have a pretty clear criteria that we follow here at Nexus when we’re making offers. It’s all based on the market. Let’s hope the market cooperates with us so I can get you what you need. Let’s put our heads together and let’s make this work.”
I love that, especially for those of you that are non-confrontational, let’s say you’re a people pleaser. That’s the best way that I’ve found when I feel like I’m in a confrontational situation to pit myself with that seller.
Tom Kroll: I love that. I love that. All right, beautiful. And so tip number one is called word matching?
Zach Tetley: Yeah, it’s basically word tracking or word matching. You’re basically modeling the seller into a conversational direction that you want to go on. You know, like if I have another thing that we can do, if you don’t mind me giving a few more wicks [crosstalk 00:17:30].
Tom Kroll: No, absolutely. Go ahead.
Zach Tetley: All right, so does anyone ever, you guys may have heard of this before, it’s two yeses leads to three. So let’s talk about, you know, let’s say I know the square footage, the size of the house. Right? The total square footage. If I say, “Hey Tom, it looks like your house is 1500 square feet. Is that correct?”
Tom Kroll: Yes.
Zach Tetley: “Okay. It looks like this house is a three bedroom, two bath house. Is that correct?”
Tom Kroll: Yes.
Zach Tetley: “Is there any reason why we can’t get this done today, Tom? If I can come up with a price to meet your needs?”
Tom Kroll: No, let’s do it.
Zach Tetley: Yeah, absolutely. So what I’m doing is I’m getting your brain programmed to give me yeses. That’s our goal, as wholesalers, is to solve that problem, create that solution, and understand that they may not always get the price they want. And you may not always walk with the contract price of what you got it for you want, but that’s a negotiation. No one’s ever going to leave a negotiation, 100% happy, but it doesn’t have to be personal.
Tom Kroll: I love it. That is very good information, Zach, I love it. All right, good. So we are making progress here. So we got a new person they’re a new brand new wholesaler, they go meet with a homeowner. What other kind of tools can I use in my arsenal to get that property under contract at a low price?
Zach Tetley: Absolutely. So the best things that you guys can do, let’s make sure we have our comps together. All the as-is properties, let’s get three to six of those that have sold, not the rehabbed ones, but ones that are in similar age within 10 years of condition.
So if I have a house I’m looking at, it’s built in 1948, I’m not going below 1938 and I’m not going above 1958 when I’m looking at my comps because houses are all constantly changing over those decades. And we need to force that seller, if they have a high price point with those comps to show us why their house is worth more, put it on them.
We make sure we know what our rehab costs are going to be. We come prepared with a sheet of… We get with a contractor locally and get a pricing on things and make sure that we’re aware of what repairs are actually going to cost on that property, because if we don’t have the ability to judge accurate repair costs and accurate exit costs then we don’t have the numbers, we need to formulate the right offer.
Tom Kroll: Got it. Now I just want to pause here for one second. So Zach has done a lot of deals in a very short amount of time and Zach also has done some rehab deals. Now, one thing that we kind of… Some people are new to wholesaling, so if after you do a dozen or two dozen deals, you can, I think, and Zach you probably agree, start to really be able to better judge that based on what your rehabs are selling the property for?
Zach Tetley: Yeah-
Tom Kroll: Yeah, because I do want to let everybody know that you can do this even if you have no experience. I think that one thing that we preach is build up very big cash buyer list and those people, if you’re not good at estimating repairs, for my personality type, it doesn’t work. But I do know that we have engineers and teachers and CPAs and lawyers who are wholesalers.
A great way to get that information is from your cash buyer list. They have years and years and years of experience that can help you estimate, if that’s a direction that you want to go. So I just wanted to throw that out there in case it was intimidating anybody.
Okay. So what else do you have for us?
Zach Tetley: There’s a book that I read that really a honed in my negotiating skills here.
Tom Kroll: I love it. Let me guess. Is it Chris Voss, Never Split the Difference?
Zach Tetley: It’s Never Split the Difference. Yes man.
Tom Kroll: Everybody talks about that book. I love it. Yeah, it’s, it’s one of my favorites. It’s so funny. We’ve asked, a lot of guests will say, “What is one book?” And Chris has been just… His book has been coming up and again and again and again. So everyone needs to read that book. What was some of the key takeaways you got from it?
Zach Tetley: Well, it’s, you know, you’re never making the offer first. We’re constantly positioning ourselves behind the sale or the close or the negotiation. We want that individual to be pushing us in the direction that we want to go. I definitely feel strongly about that.
You know, the, one of the best things I’ve noticed in my market, I’m from the South, is that when I listen more and I focus more on the pain point and then negotiating can generally take care of itself. We’ve gotten contracts on properties where we spent more time listening to the seller’s needs and we didn’t necessarily make the highest offer, but service is always going to trump price, even in negotiation.
So, maybe the solution is that they need someone to help them move or you know, they need a storage unit for a year with all the things if they’re a hoarder. There’s a number of things that are always going to supersede price and wholesaling. And that’s where that, what I was talking about earlier with the listening is where it’s really, really important, because they’re going to tell you.
Tom Kroll: You know, it’s so funny you should say that. I totally agree. If you’re brand new to wholesaling and you’re just listening or even if you’re experienced, you’ll understand this is that the sellers that we are buying from, their most important thing, like most homeowners, is price. It’s not priced for them.
It could be as silly as, like Zach just said, they’re moving to a new location. They need a place to help store all of their belongings for a year during that transition. And when you listen, you’ll find that stuff out. If price was what was most important to our sellers, they would not be speaking to us.
Wholesalers never win on price. Our sellers are not most interested in price. They are most interested in speed and convenience. So if you listen to them, they will tell you what is important to them instead of assuming that it’s price, which will lead to disaster because wholesalers will never win on price. Very, very important. So yeah, Zach, I think that’s a great point, brother.
Zach Tetley: Yeah man. It’s definitely, and it’s where I see a lot of wholesalers, especially in my market that are… Thet’re maybe new, they get hung up on the numbers and the numbers are very, very important.
But being able to look past those numbers to the situation and being able to be solution-oriented rather than being discouraged and that follow-up is so key. Even if negotiation doesn’t go well, when we position ourselves to where it’s the market to blame, we are leaving that door open. “Hey, I know we couldn’t come to terms today. I’m sorry. I, you know, I-I’d love to be able to follow up with you in a couple of weeks and see where you’re at or if anything’s changed. Hopefully the market can cooperate with us.”
Tom Kroll: I love that. And could you just for our listeners, can you tell me how many of your deals are put under contract on the first visit or first event and how many are done through follow-up?
Zach Tetley: I’d say 30 to 40%, on the first go around. We’ve really pushed on that. Our, and when I first started, man, it was probably five, 10 to 10%, if that. I didn’t know what I was doing. Like I said, I wasn’t a rhino.
Tom Kroll: Well, I just want everyone to hear that. You guys, the money is in the database. The money is in the follow-up. Zack literally just proved that to you.
It is so important that your first impression with the seller is important, because your follow-up is where all the money is. Yes, we do deals all the time on the very first visit, but the majority of deals are done through consistent follow-up.
So it’s so important that you look at this as a train that’s constantly moving. You want to keep that train moving. The money is in the database. It’s in the follow-up. So, so, so important.
So Zach, thank you for just reminding us of that because that’s like, it’s so important if you’re struggling right now with the follow-up, where you’re going to really make a big difference. So, very key.
Zach Tetley: Absolutely. And one of the things I also like share that I would say it in this business despise negotiation.
So, let’s say you’re out, you’re taking some of these tools and you get beat up by a few sellers. You touched base with them off Craigslist. This is what I tell myself when I get disparaged, because in this business there is great money to be made and there are days where you are learning lessons and growing beyond the person you ever thought you could be possible. I’m sure you could agree on that Tom.
Tom Kroll: 1000%.
Zach Tetley: Yeah. So I say to myself, and I want maybe some of these listeners if this works for you guys, I say, “Excellence can be obtained if you care more than others think is wise, risk more than others think is safe, and dream more than others thinks is practical, and expect more than others think is possible.”
Tom Kroll: Bam. Where is that from?
Zach Tetley: It was a quote I found random online about a year and a half ago when I was really frustrated. I had about four deals fall apart. And you know what, Tom, I don’t about you, but deals still fall apart on me today.
Tom Kroll: Right.
Zach Tetley: It happens. So we keep pushing. So we’re constantly taking care of tomorrow. Today is already good. So that’s the way we focus on our business.
Tom Kroll: So important. That sounds very similar to what Jim Rohn teaches. So I love that quote and I think you guys, definitely adopt that into your worldview.
But just to get back really quickly on valuations and getting the property under contract, I also think guys, it’s important. Don’t try and figure this out. Just try to get results. The guys and girls, I guarantee you right now, 100% without, and Zach and I have never had this discussion before.
As a matter of fact, I think Zach, this is the first time we’re speaking. Is that right?
Zach Tetley: That’s correct. [crosstalk 00:26:10].
Tom Kroll: Perfect. There you go. Well yeah, so here’s what I would say is that, you guys, I guarantee you if I ask Zach this question, it’s the guys and girls who get the most results that make the most money in this business. It’s the guys and girls who get the most results.
So the reason that Zach did $1 million in a year and 10 months is because I guarantee you that he had tons and tons and tons of meetings he went on where he didn’t get the property under contract or the deal fell apart or the buyer pulled out at the last second or there was a hiccup with a property.
But here’s the best answer to that. When you start to get discouraged and you’re not sure about what price to put a property under contract for, or if you did it incorrectly, just keep this in mind. If you put the property under contract too low, the only thing that’s going to happen is you’re going to make more money. If you put the property under contract too high, the only thing that’s going to happen is you’re going to have to cancel the contract. That’s the end result. It’s not a big deal.
So take this with a light heart and joy and don’t be too stressed out about all this stuff, because Zach can help you get there with negotiating tactics and we can and all that other good stuff.
But at the end of the day, persist, persist, persist because it’s just results. The guys and girls who get the most results when, and Zach, I’m sure you agree, I mean, how many results have you gotten that were not successes, they were failures, but you learned from them?
Zach Tetley: Oh, we’re always failing forward, Tom. And, and the way I definitely look at it in this business is if something teaches me a lesson and I make a little less money and I learned something and I better evaluate the next deal, then that’s worth more than maybe a larger check on that deal. And it allows us to look at every deal differently going forward.
Tom Kroll: Yeah, I totally agree. And we have very, very few deals that we ever have to cancel now at this point, because we’ve done so many deals. But we have deals where the price changes all the time. As a matter of fact, we have one right now in Jensen Beach and we had a deal and we found out something that the seller misled us about or did not disclose, didn’t tell us about, and our profit margin definitely changed, but we learned a lesson. We’re going to implement the little tiny process that we’re going to make sure that that doesn’t happen again.
But that’s constantly happening all the time. So I think it’s just, you know, the attitude that you have around it in the mindset that’s so important. So, awesome.
Zach, what? Yeah, what’s next, brother? What’s next on your agenda? What’s next for the rest of this year? What are some of your plans and goals? What are you looking at?
Zach Tetley: Well, we’ve got I think 15 under contract right now. Properties that we’re looking to close out.
Tom Kroll: Woo!
Zach Tetley: Some are taking a little longer than others. Yeah.
Tom Kroll: That’s awesome. 15 properties. I love it.
Zach Tetley: We are transitioning into a title company right now that can handle our volume a little better. Just something for you guys. As you grow, some of the team players you have on your team may not be able to handle the growth and you may have a different realtor or a different team member or some of those people along the line may be different than what you start with.
Tom Kroll: You guys, Zach just gave you liquid gold. I’m going to tell you right now from experience, Dan and I love, love, love our title company. But we use two title companies because two is better than one and you can be loyal to both and you can have a great relationship with both.
But once you start to do more than two or three deals a month, it’s very important to have multiple real estate agents, attorneys, title companies that you work with. Yeah, I totally agree with that. That’s a great reminder that we don’t really ever talk about a lot on this show.
Zach Tetley: Absolutely. So that, and then my partner and I are going to be launching a new business to service real estate investors with some of the online lead generation success that we’ve had.
So we’re going to take December, we’re going to continue to market. I know a lot of people shut down shop, but our team’s going to continue to roll. Some consistency is key in this business, no matter what.
Cody Hofhine: It’s so funny, so many people tell me they off the month of December and a lot of people are, they’re wholesalers, but they treat it as a job really more than a business. So what they do is they shutdown during the holidays.
But I wanted to share with everybody a little secret that Zach just talked about, what he said. You notice he just said, “We’re not shutting down during the holidays.” That tells me two things about Zach. Number one, he has a business, not a job. And number two, I’m telling you guys from my own personal experience, Christmas, Hanukkah, the new year, it is some of our most highest profit margin.
Everyone else is out of business during those times. We are doubling down during the holidays and we make an absolute fortune consistently during those times of year. So right now the holidays are about to come up. They start around Thanksgiving, they end around the new year. Double down on your marketing efforts on, you know, you’re putting 100% in? Put in 110%. That’s some of the best times of year to make an absolute fortune.
The time to start that is right now. So yeah, I just… That’s a great point. It’s funny how the people who make money are always consistently saying exactly the same thing, which is usually opposite from the people who do not.
And also, just a quick point too, Zach, if I could just make a quick note here, you guys, anyone who does have a wholesaling business where they’re making a lot of money, but it’s a job and not a business. Go to wholesaling inc wholesaling inc dot com forward slash next level. There is a new program out by Todd Toback where he teaches you exactly how to create wholesaling into a business that you own, that is a servant to you rather than creating a job that you serve.
So anyway, I just wanted to give a quick shout out to Todd Toback, who’s one of the best wholesalers in the country I think.
Tom Kroll: But good stuff man. I like that. So December, so where can people find out more, can make it, you’re going to have to make sure that you give us a link to that product. I will put it in the show notes and if people want to find out more about you or that service where, where do they go?
Zach Tetley: The website’s getting finished up right now. It’s R-E-I, bar, B-A-R marketing.com and it’s going to be a service for real estate investors to make sure that their website’s up there, in the top one or two or three in Google and that’s honestly over a quarter million dollars in our revenue in the last 12 months has come from just online lead generation.
Tom Kroll: Wow. I love it. Zach, bro, you are great man for sharing all this information with us. I really do appreciate it. I know it’s going to appeal to a large portion of our listeners for sure. Especially the ones who have backgrounds where it’s a little bit more technical, a lot, a little bit more detail oriented. They can say that security of you know, really looking at what’s what. So we really appreciate it man.
And you guys, I think the biggest gold nugget from this wasn’t even something that we were planning on is just again, a 24-hour arrest record list. You guys, nobody mails it. Super powerful. I can’t tell you enough. I mean so many deals.
And the way we found that list, by the way, is because we were noticing that people that we were buying houses from, very often, were just getting arrested. As a matter of fact, it was a famous case here in my town of a house that we were buying with a very famous case and that’s the house that we were buying. We had no idea. And that’s what even prompted that whole idea. I don’t remember all the background of it. If somebody else had told us about it too.
But yeah, there’s a little list like that garage sale lists and 24-hour arrest record lists. Absolute gold, man. I love it.
Zach Tetley: Absolutely, and I appreciate it Tom, and you know, just one thing for everyone else going forward is you know, don’t get discouraged, stay focused and keep listening to guys like Tom and they’re going to keep having people on here that drop amazing nuggets. They’re going to push your business forward.
Tom Kroll: Zach, you’re a rock star, man. Thank you for being a go-giver and sharing today. Thank you for everything that you do in this industry and I learned a lot on the show myself, man. I think you’re awesome. That’s, that’s incredible and really, really cool.
So looking forward to meeting you in person one day.
Zach Tetley: Yeah, absolutely. Thanks so much Tom.
Tom Kroll: All right. Yeah, you’ve got to make sure you make it to one of our events, brother. Absolutely.
Zach Tetley: Yeah, I know. I need to get it on the schedule.
Tom Kroll: Get it on the schedule. All right man. Talk to you soon. Thanks again, Zach.
Zach Tetley: Absolutely. God bless brother. Bye.