If there’s one lesson wholesalers learn at one point in their wholesaling journey or another, it is this: not all deals will go the way you expect them to. However, as long as you keep an open mind and stay creative, you can eventually make it happen. And this is something today’s guest can surely attest to.
Drew Clements is a resourceful rhino from Logan, Utah. He started his real estate journey flipping and renovating properties, discovered wholesaling somewhere along the way and is now doing wholesaling full-time.
While he’s still new in the wholesaling world, Drew’s creativity and his ability to keep an open mind has already helped him close an otherwise challenging deal.
If you want to see things from a fresh perspective and give your creativity a little boost, this is one episode you shouldn’t miss!
- Drew called a guy about a property he’d like to buy.
- Unfortunately, seller owed more than what was stated in the contract he agreed to.
- For the transaction to go without a hitch, Drew used his assignment fee to cover for costs that need to be paid and got a promissory note from the seller.
- Seller eventually paid him and he got $18,637.18 for his help, efforts, and creativity.
- E-Myth by Michael E. Gerber
- Close the Deal by Sam Deep
- You Can’t Teach a Kid to Ride a Bike at a Seminar by David H. Sandler
- Wholesaling Inc – TTP
- Google Ads
- Bing Ads
- Brent Daniels on YouTube
- Drew’s Email Address: firstname.lastname@example.org
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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Bret Daniels: Hello rhino nation. It is Brent Daniels on the number one wholesaling podcast on planet earth, the Wholesaling Inc. podcast. I have a phenomenal, phenomenal interview today with an exceptional professional out of Logan, Utah. But real quick, just to start off, I want to touch base on one thought. This thought is how often are you looking at your short term goals? How often are you writing down a goal that you’re going to accomplish in the next 30 days? I highly, highly, highly suggest that you take a three by five note card and you write down your goal, you put when the date is that you’ll achieve that goal, and then you sign that three by five card and you keep it in your wallet, in your purse, in your sock, on your mirror, in your bathroom, in your car somewhere where you can see it every single day so that you know that you’ve got that GPS point that you’re going to every single day that you’re trying to accomplish.
If it’s just simply get my first deal, write it down and put a 30 day time clock on it because if you don’t, it could just be [inaudible] to be anywhere. If it’s open-ended, that’s exactly what it’s going to end up being. It’s just going to be the next 30 days, next 30 days, next 30 days. No, make a stand right now to write down a goal that you’re going to accomplish in the next 30 days. Write it on a three by five card and put it somewhere that you’re going to see it and read it every single day. It is magical. It will seriously, watch what happens to that goal after you read it every single day for 30 days. It’ll set you in line with accomplishing that goal every single day and keeping you focused. So just a little tip before we get into this flame thrower of a man named drew Clements. Drew you there buddy.
Drew Clements: Oh, I’m here. [crosstalk 00:02:52] I should be taking notes instead of talking. [inaudible 00:02:55]
Bret Daniels: This is awesome. So you live in Utah, right?
Drew Clements: Right.
Bret Daniels: [inaudible 00:03:02] Tell me, give me your background. Have you been in real estate for a while?
Drew Clements: So my wife and I started in real estate back in 2013, we’ve kind of been going slow and steady. I did not plan on getting into wholesaling or flipping. My background is actually in digital advertising. So I ran an agency in Colorado for about five years and at that point we’re feeling more established, let’s get into real estate, which for us was buy and hold rentals. So we just want to use bank loans, buy rental, fix it up if needed. And then, you know, kind of rinse and repeat until we’ve got our portfolio there. So, so we bought a duplex in 2013 we moved into one of the units and it was really rough shape, I bought it when my wife was on vacation.
Bret Daniels: Oh no! You are a brave man.
Drew Clements: So we’re still married.
Bret Daniels: That’s good.
Drew Clements: But it was a rough year while we were renovating the top unit. After our tenant moved out, we moved out to there, renovated the bottom. And at that point, I had amassed a arsenal of tools and I was loving flipping and ball renovating. And then we had this confluence two years later in 2015 when all the renovations are done and we’re trying to decide, “okay, what are we going to do?” And it was, we can either keep it like we planned, stay with the agency or do something else, and we went with something else.
I was done with ad agency life. We really liked the project. And so, we decided, “Hey, let’s become flippers.” And we sold that one. The market had depreciated like crazy in Colorado, we moved closer to family, quit the ad agency and then we had to figure out what the heck are we going to do? [crosstalk 00:04:58] So, I got my license…
Bret Daniels: Your real estate license?
Drew Clements: Yep. And it’s the process of getting my license, you know, that actually kind of derailed us a little bit cause you wouldn’t get your license. Everybody’s got the perspective of Oh you represent buyers or sellers and that’s what you do. But we wanted to represent ourselves as buyers and flip properties. So, so it took a little bit to get through that. And then we started advertising with the goal of flipping properties.
And we did two properties that we flipped and we had an accidental wholesale in the mix there. And fast forward, eight months later we sell all of our inventory and we’re at square one again, and it just that roller coaster of ups and downs. And we realized we don’t want to do that, and that’s when we decided to get into wholesaling full time.
Bret Daniels: Got it.
Drew Clements: And we were talking earlier before the call, if you look at my disc profile, I am not TTP material, hire myself. So my wife when I said, “Hey, we’re going to be on the podcasts or all beyond the podcast.” We kind of laughed about it a little bit because it’s been slower for us probably than a lot of people. And it’s been a lot of failure and learning and really creating our own way [crosstalk 00:06:28] just because those sorts of things. So, but…
Bret Daniels: Let me, let me ask you this, why wholesaling and why not flipping? What made you guys go in the direction of, because I think there’s a, there’s a very common crossroads that we come across right? In this business when we source our own deals, right? When you source your own deals, you can either fix it up and go through that process, take the pride, pick out the colors with, you and your wife picking out the fixtures and the flooring, the color palette and everything. Or why don’t we just flip the contract? Why don’t we sell the contract? I mean there’s that crossroads really is because there’s a lot of pride that goes into and a lot of fun that you can have flipping. But there’s certainly a lot of other things that could go a little bit not as easy with flipping.
Drew Clements: Yeah.
Bret Daniels: Yeah.
Drew Clements: So, so I don’t have a cut and dry, here’s this box and this box and this box answer for that. What we’ve determined for us, and it’s different for everybody is, is we’ve started looking at the flipping genre more of as a continuum from, assigning contracts at one end to doing full renovations and selling retail at the other.
Bret Daniels: Yeah.
Drew Clements: And what I’ve learned over the years is, if you focus and build that business, that’s better right? Than being scattered like we were before. So that’s why we haven’t closed on a deal. We’ve been assigning contracts exclusively for the last year and a half. [Crosstalk 00:08:00] We’re getting to where we’re starting to take down deals, but we’re not flipping. [Crosstalk 00:08:07] We’re going to be wholesaling those in the sense of still sending them out to our cash buyers list, but having more leverage because we own it, and being a licensee I can also, list it if I want [crosstalk 00:08:20] even on the property.
And I know Tom is very adamant about “Don’t do that.” So if you’re just starting now, definitely don’t try to do everything. But over time you develop those processes and skills and abilities and infrastructure, and that I’ve got some good employees now that smooth things out as well. And we’re starting to look at doing more of that, [crosstalk 00:08:45] comes after building up that… I call it the “Engine of the Business” of like you said, finding deals in creating that you can then draw from.
Bret Daniels: Got it. So let’s circle the wagons back to this whole disc profile, personality test. So Drew here is a driver/ analytical right? He is a guy that is not this guy that has 100,000 words that he’s going to speak a day, he’s going to talk your ear off and just jibber Jabber with everybody. That’s just not as personality, right? So getting into TTP and picking up the phone every day and making cold calls to strangers every day was not; you were not getting out of bed excited about this. Right?
Drew Clements: Right. But because I’m a driver, I do it.
Bret Daniels: Exactly.
Drew Clements: And TTP makes sense. And by TTP, I don’t mean just cold calling, but I’m talking about the program. It made sense when I saw it, I joined Wholesaling Inc. in July of 2017 and I joined TTP in September. [crosstalk 00:09:51] So we’ve been TTP for one year now. And the reason why I wanted to do it was because I was seeing a drop in my response rates in direct mail. I was seeing a lot more competition in my online channels, like Google ads, Bing ads, Facebook, all of that. So we’re adapting our marketing and TTP fit in there because I know from experience it’s hard to do [crosstalk 00:10:16] mission even though I do have competition it’s not like they could just put up a billboard and “dang, they got that space, I’m shut out.” I just have to get on the phone. [crosstalk 00:10:27]
Bret Daniels: Yep. So how did you overcome it? How’d you get on the phone? I mean, were you making calls? Were you talking to people? Were are you getting and reaching out to homeowners on like a regular basis?
Drew Clements: Yeah, so it was really slow getting to that point because I’m still doing all of the other channels as well. I still do direct mail, PPC, all of that. But we wanted to introduce TTP into, into the works. So when I joined the program, I, I should have spent more time doing it myself, but I right away pretty much. I hired a gal, actually I hired one guy, he didn’t work out and then I hired another person that was super consistent and calls were pretty good. But [crosstalk 00:11:08] we got, I think one deal in six months from, he was a good deal but not that good.
So I got back on the dialer and within a couple of weeks, we’ve got deals again. So there’s, even for somebody like me that’s analytical and not super social, like I can do it. You just follow the script and you can learn to relate with people, and match and mirror their social styles. And like all of those resources are in the program.
It’s just, I just follow the program and just do it. Right. So, I’ve done a number of deals from my contacts through TTP and I, and I recently hired another guy whos heads and shoulders above where we were before. [inaudible 00:11:59] And we’re just looking to expand it that way. For me it’s a marketing channel.
Bret Daniels: Awesome.
Drew Clements: You can do it, but I can also hire people to do it. And now that I’ve got more experience, we’re going to have more success as I hire it out too. So we’re looking at it that way too. We’ve had lots of failures and learning and that applies to TTP as well.
Bret Daniels: So when you’re calling, when you’re personally calling or have personally called, what was your favorite list to call?
Drew Clements: Oh, it’s driving for dollars. [inaudible 00:12:31] Hands down. There’s probably 10 different lists that we source and it’s everything from, stuff to where we’re writing down the address to, all the list source stuff that everybody else has. [crosstalk 00:12:46] But I mean, what we’ve done is we just rank order, our lists and we make sure that when we’ve got a top priority list, we’re hammering that one first and fast before we get to the absentee owners with equity.
Bret Daniels: Yeah, it’s huge. I mean if you prioritize your list for sure you’re going to get better results. I mean, especially if it’s some of the driving for dollars you have to jump on right away. But that’s a tougher list to get. But something that’s time sensitive like pre-foreclosures or probates or somebody that inherited a property, the sooner you can get to those, the better.
I mean, I’ve got a person, just folks, some hiring to another two people just so that they’re calling and leaving messages for each and every one to get to those as quickly as possible. Cause those are like pure gold. So getting to them quickly as and by the time mail gets to them, I mean if you’re getting a list that you mail to, I guarantee you in your market at least twenty to fifty to a hundred people, I mean you could attest to this, are, are got that same list and they’re mailing to the same people and they’re very similar.
But when you’re reaching out and actually getting them on the phone, I mean, it’s a blue ocean, you know what I mean by that? I mean, it’s just, there’s, there’s not a lot of blood in the water, right. So, you know what I mean? I mean, it’s a book. So, okay, so driving for dollars was your favorite. So give us a deal. Give us a deal breakdown, any deal you want, if you want it to be TTP, great. I’d love that. If not, then any deal, any deal you want to break down, tell me… let’s give him some, let’s give him some meat and potatoes on this.
Drew Clements: So, so last week we talked a little bit about, I texted you a question and you responded and you actually gave me a call. We talked about one. It was, it was a foreclosure that we ended up doing the loan on. Do you want to talk about that one?
Bret Daniels: Love it.
Drew Clements: So this is not, like I said, we were chatting back and forth. This is not a deal that I want to do again. But the thing that I think, the reason why I want to talk about this with us, everybody can talk about their deals where we bought it for, or the situation was X, we gave him an offer, we followed the process and we got it at a great discount. We sent it out to our list and closed it. There’s all of that. I learned more from the really messy deals and we don’t want to do those, but sometimes they’re the ones that give us the most value in how we look at stuff. [crosstalk 00:15:10]
So this deal, it was here in Logan actually, which doesn’t transact, it’s not as hot a market as some other places as far as transaction volume. But we’ve been doing more deals here because of TTP. I called this guy, he was one of the few lay downs that I’ve gotten. I said, “Hey, have you thought about selling your house?” And he goes “Yeah…when do you want to sell it?” “Umm…As soon as possible.” Then we got into condition and all of that and, and it was in super rough shape, but over the phone he gave me his price and it was, after repaired value it’s 180 we put it under contract for, he wanted 90 and he said, “that’s what I owe.” And I said, “Well, you know what, I want to make it work really well for you. ”
So let’s do 92 so that you can get some moving expenses and that kind of stuff. I wanted, I want you guys to get something. So we put it under contract for 92, I sent it out to my list for some reason. Oh, during my due diligence, I usually use some tools to look at County records and I’ll look at the abstract of title, where it’s going on. The tool wasn’t working that day, but came back to bite me [crosstalk 00:16:32] because once we’re doing due diligence, we had our buyers, we had done inspection and the property report comes back from title and lo and behold, it is in foreclosure, something serious and it’s going up for auction in like three weeks. So the thing that I learned from this was it was almost by mistake in the sense that, I’m not a super polished negotiator, but I try a little bit.
Bret Daniels: Sure, Sure.
Drew Clements: So when we were, when we learned that it was in foreclosure, I realized, boy, his payoff is probably going to be higher than what he owes because of penalties and interest in all of that. So I reached out to him texting and said, “Hey, our agreement is this, and I wasn’t aware it was in foreclosure. The payoff might be a little bit higher and that could mean you’ll need to bring cash to closing, I’m planning on that. And he texted back, I was amazed. He said,”Yeah, I’ve got this retirement account that I’ve been paying into and I’m going to take care of it that way. So part of it, it was negotiation, part of it the guy was just super honest and a good, there’s good people out there and that’s what really blew me away and just, you know, made me feel really blessed with this transaction.
But there’s more to it, so I don’t want to ramble on too much. So I’ll try and go [crosstalk 00:17:57] [inaudible 00:18:07] . So he was divorced, his ex wife, they had gotten the divorce decree, his ex wife was off title. They had done a quit claim deed, but on the quick claim deed they missed her middle initial so it didn’t match the deed. So we needed to clean that up. She lives in New York, auction is now like two weeks away.
And also his funds from the retirement, it takes a while for those to be released. Yeah. So we’ve got this freight train of an auction coming and we’re trying to, figure out how we can get everything wrapped up. And I’ve got a buyer re my assignment was going to be 20,000 on this sale. So it’s not one that I want to let go easily. [crosstalk 00:18:43] So what we did was, and there’s more on the buyer’s side too, that came up, but what happened was, I’ll just kind of skip to the end.
So our buyer, we got it to where the difference between the payoff and the contracted amount was the same as the assignment fee. [crosstalk 00:19:05] Then when we closed, we got the quick corrected quick claim deed from his ex wife the day before we closed, it came FedEx. So we get that taken care of and then we closed on the Friday and the auction was Monday. [crosstalk 00:00:19:28] Yeah. But so the assignment was the same amount as the payoff, but the buyer or the seller still didn’t have his funds cash to close. So what we did was we used, you can’t do a simultaneous close in Utah, but what we did was the buyer get off the lender and my assignment fee came to me in the form of, so I used my assignment fee to put money down on the table so the seller could close.
Bret Daniels: Got it.
Drew Clements: So all I walked away from closing with a unsecured ,cause you didn’t have any real estate, right? He just sold it. So an unsecured promissory note [crosstalk 00:20:14] to my company [crosstalk 00:20:14] and the way I looked at it was, okay, we’re going to have to just walk away from this deal. And the guy, you know, loses the house, gets a foreclosure on his credit and our buyer doesn’t get a house that he’s excited about flipping and we don’t make any money. Right? So like negative for everybody or we take a promissory note, our buyer gets his flip, there’s stoked about that. The seller gets to move, has no stress, no foreclosure on his record. The bank is paid in full and maybe we get paid. So two weeks later and I’ve been following up with him of course later I get a cashier’s check for the full amount and by then it was like 18,000 something. [crosstalk 00:21:07] so, and that’s, that’s not a small deal for us.
So here usually, you know, we’re pushing it really hard to get $10,000 assignment fees. [crosstalk 00:21:17] So to get one that’s 18,000 after having gone through all of that was, we were so happy. I’ve never been so happy, been so happy about getting a check. But I was just amazed at how it works out when you try to, it doesn’t always work out, but more often than not I’ve found when you try to just, I mean, do the right thing as cliche in a sense, but you know, you reap what you sow [crosstalk 00:21:46] and by trying to help buyers, sellers and do things honestly and you know, disclose everything it works out.
Bret Daniels: Yep. So just just to recap it for everybody out there, the seller of this property owed more than what he accepted as the contracts from Drew. Okay. Drew then sold that contract to a cash buyer for more than that amount and to cover because the seller needed to bring funds to closing, he needed to get from his retirement account and, but he couldn’t do it in time. So what Drew did is he saved the day, he used his assignment fee to cover the cost to get it closed, but then put a promissory note between him and the seller. The seller, true to his words, got the funds from his retirement account and paid Drew. Boom. Beautiful.
Drew Clements: You nailed it.
Bret Daniels: Yeah, so I mean, and that’s incredible. And sometimes these things happen and you got to get creative. And I think as long as you have an open and understanding conversation with the seller and buyer, things work out. We have a philosophy in our business that we’ll, we will figure it out. We will figure it out.
Whatever the deal is, we will figure it out. Number one, we put the seller as a priority. We make sure that they are taken care of because our job here is to provide value to the marketplace, so we’ll take care of that first. Second is our buyer, third is us. Okay. It sounds weird, but it works out almost every single time. We’ve never been burned, so it’s just a different kind of way to look at it. If you’re always looking at the profit that you’re going to be making on it and getting it at the exact time that you’re supposed to get it in the exact way that you’re supposed to get it, then you’re going to lose out on a lot of deals and not be able to provide the value that Drew is talking about here. There was no way that dealer gets done unless he’s in the middle orchestrating everything to get it done cleanly. Maybe not smoothly, but at least it got done and everybody was happy. So really, how much did you make?
Drew Clements: 18,637 and 18 cents.
Bret Daniels: And was that a cold call?
Drew Clements: That was
Bret Daniels: My man. It feels good, doesn’t it?
Drew Clements: Yeah, that’s, I mean, we definitely learned the most from our messy deals. We usually don’t make that much on a messy, usually it’s smaller than that. Some of our best deals are the fastest as well. I’ve heard that a number of times and it’s totally true.
Bret Daniels: Yep. So if you were to, okay, so give somebody new, somebody new to this, give them an idea of just a tip that you would give them starting out off the bat. They’ve never done a deal before. What tip would you give somebody like that? You’re sitting down and you’re just having a conversation with them.
Drew Clements: So earlier today I actually met with my new phone caller and we kind of had that discussion because they’re talking to people about real estate and sometimes they feel like they need to know all about real estate [crosstalk 00:24:55] because I’m an analytical person, I know all about real estate, [crosstalk 00:24:59] but you know, I really get into the weeds easily when it comes to the details and things you can do. I’m trying to stop doing that. But I was talking with Jayden, my cold caller, and we were listening to some of his calls and I was giving him some tips about, Hey, if, they’re talking about they’ve got this lot and they could subdivide it, here’s what it means. But after explaining all that, I said, you don’t need to know that, you’re going to build up a reservoir of knowledge.
Over here on the side naturally is as time progresses, what you need to know is do they want to sell? [crosstalk 00:25:40] What’s the condition of the home, timeline to sell, motivation to sell, and are they willing to talk numbers? So on our script, what we’ve done is I’ve actually, underneath the voicemail page, I’ve put in big bold letters. Here we don’t do the four pillars, we do five pillars. We just throw in, wants to sell. [crosstalk 00:00:26:00].
Bret Daniels: Well, that’s one of the core elements, right? Yeah.
Drew Clements: So we put the pillars there and I said, okay, that is the essence of the script. All you need to do is pre-qualify. You don’t need to know everything there is to know about real estate. All you need to know is these things and confirm them multiple times, if you have to [crosstalk 00:26:23] and there they’re yes, no, or maybe.
Right. Going through that process. So somebody starting out new, when I first got into real estate, I flipped a house. We used an agent to buy it, we used an agent to sell it. I didn’t know anything about real estate. I knew how to swing a hammer and I learned a lot more than that too, cause you know, flipping is messy. But when I started into real estate, you know, once we moved I got my license and I was super confused, got a lot of education and you just got to jump in and take action. But specific to wholesaling, everything that you need, it’s in the program and that’s not just a pitch there. Why we decided to go with TTP is because it’s there, it’s laid out and you just follow the program.
Bret Daniels: Awesome. Awesome man. And any books, what book would you recommend?
Drew Clements: So I was going to recommend one, but it’s similar to email, like fraud, geeky stuff, the wholesaling, it was through, I think it was on the book list for Wholesaling Inc it’s “Close the deal” [crosstalk 00:27:37] , which is the audio version of “You can’t teach a kid to ride a bike at a seminar”. So that was a game changer for me because I’m not a super polished negotiator. [crosstalk 00:27:49] And so just understanding, Oh there’s a structure to how you can talk with people and not have to talk as much. Its not a silver bullet, but it gives you a framework to get people talking and you can be thinking, okay am I qualifying them according to this, this and that? And then we get to a point where they’re ready to do business and all we have to say is, what would you like to do next? Oh, okay, well we’ll take care of the contract then. Cool.
Bret Daniels: It’s a sales process. Yeah.
Drew Clements: So that was, that was definitely my awesome, my favorite book.
Bret Daniels: If anybody wants to get ahold of you, reach out to find you on Facebook, email, what do you prefer?
Drew Clements: So email’s good, I’m at email@example.com
Bret Daniels: Say it again. Bear river?
Drew Clements: Yeah, so it’s bear like the mammal, river that flows and capital with the TAL spelling.
Bret Daniels: Got it. Very cool. Awesome too. Well thank you so much for reaching out guys. Anybody that’s in the Logan Utah area or surrounding there, reach out to Drew, meetup, anybody around. Just send them an email if you want to make contact. He’s phenomenal at communication, so make sure that you reach out. Drew, thank you so much man. [crosstalk 00:29:12] Thank you for joining here. Remember, if you are looking to join the absolute most proactive real estate program in the country, you’ve got to go to WholesalingInc. Com/TTP, that’s WholesalingInc.com/TTP. Set up a call with us. It’s going to be the best call of your year and you’re going to learn so many strategies to get you to getting your first deal or adding so many more deals to your business, it’s bananas.So make sure you go there, check that out, and you can check out this video on a Brent Daniels real estate coach on YouTube. So that’s it, man. I really appreciate you joining me Drew. And for everybody out there, I encourage you to talk to people. Love you. See ya.