There’s no denying the wholesaling world can be highly competitive. However, as long as you stay proactive and determined, it’s an industry you can easily dominate. And that’s what today’s guest can definitely attest to.
Kevin Lee is a phenomenal wholesaler and a proactive TTP student from Sacramento, California. Although he started as a passive real estate investor in 2010, it was not until 2 years ago when he decided to try wholesaling and venture into it full-time.
While his wholesaling journey has not been a walk in the park, the TTP program and being proactive has made a world of difference for him.
If you’re looking for a story that will motivate you to go out there and close those lucrative wholesaling deals, this is one episode you can’t afford to miss!
- Kevin found his prospect from the code violation list.
- After calling the homeowner, he found out he does not have any intention of selling the property he called about. However, homeowner had another property he wanted to get rid of.
- After all was said and done, Kevin was able to purchase the contract for $100,000, was able to sell it for $143,000, and walked away $43,000 richer. Truly a staggering reward for talking to people and being proactive!
- Wholesaling Inc – TTP
- The Greatest Salesman in the World by Og Mandino
- Together Is Better by Simon Sinek
- Wholesaling Inc Youtube Channel
- Insightful REI
- Brent on Instagram
- 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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Brent D.: Welcome everybody to the wholesaling Inc podcast. My name is Brent Daniels, and if this is the first time that you are listening or viewing this podcast, welcome, welcome, welcome. You are now in the world of the number one wholesaling podcast on the planet. And this is not an exaggeration. People around the country are just listening to this podcast and getting their first wholesale deals just from this free podcast. It is unbelievable. And then of course, they take it to the next level by getting into the Wholesaling Inc program or the TTP program, and really exploring their business. But I want to talk about something off the bat right off the start of this podcast, and I want to talk about our mental ceilings that we have when it comes to money. Okay. This is something that I’ve been obsessed with lately because I have students, I have people reaching out to me on Instagram, and Facebook, and YouTube that they are constantly, they are doing some deals. They’re getting their first cheques for five, 10 $20000 and then they’re just stopping.
They’re just stopping. There’s a mental block that they have there that they are just making enough to pay off their bills or to pay some debt off or to feel good about this process, but they can’t get over it. They can’t get themselves restarted. That enthusiasm they had when they first started and had nothing. And now that they’ve had some success, they’re just stagnant. They’re just sitting there and they’re just just doing nothing, not taking any action. And I think there’s one fundamental reason why that is happening. The fundamental reason is this. They’re focused way too much on the money. The money is great, the money provides so much for our family, so much opportunities. It helps us do so many things with that money, and that income that comes in and wholesaling is without a doubt a cash machine.
It is like hitting the lottery, without a doubt. There is no denying that. But if it is just about the money, if the money is number one on there, you’re always going to be on that roller coaster because if you just make this tweak, this major, major, tweak this pivot in your mind, in your business, you will never have this problem again. And that tweak is focus on how much value you can provide to the marketplace, to your community. If you focus on the value, the cause and effect of that is you will make the money. But if you’re just focusing on the money, you’re going to get it and then you’re going to be disappointed. Okay, it’s going to be great for a little while. It’s going to feel good, and then you’re going to stop. But if you focus every day, if you get up and you say to yourself, who do I have to talk to today that will sign a contract?
Who do I have to talk to today that I can provide an unbelievable value to? Who can I talk to today that I can solve their problem today? That I can really legitimately provide an incredible service, an incredible value, incredible voice, a friendship, a bond, all of these things. Who can I find that I can do that to today? If you do that every single day, you will win time and time and time again. It is not something that you will ever be. You’ll never be at the pinnacle of that because you’re always have that thirst, that hunger to go out and help people in your community to provide service. It is beautiful. It changes the whole game up. So don’t focus on just the big cheques, posting it to Facebook, posting it to Instagram, getting the likes, getting everybody pumping you up.
That is beautiful and I love that and I support you for doing that, because I think it’s awesome. But once that wears off, what’s next? You got to focus on providing the value. You provide the value every single day in your mind. You wake up and you say, I’m going to go out there. There is nobody else in this community that is better at providing value for solving the problems of distressed property owners in my community. If you believe that, if you go every day, and you say that and you believe that every single day, you will be so wildly successful, it will be bananas. So that is the thought of the day. I’ve got an incredible interview for the rest of this podcast with a phenomenal professional wholesaler out of Sacramento, California. Kevin Lee. Say hello to everybody, buddy.
Kevin Lee: Hey, hello everybody, I’m Kevin. And it’s nice to be on this podcast with Brent, and it’s such an honor to be on this podcast. I’m so privileged to be here.
Brent D.: Well, I’ll tell you what, you put in the work, you are just a beautiful example of what it means to be proactive in your marketplace, to provide so much value in your marketplace. And I want to figure out a little bit more about you. Give me your background. Have you always been a real estate? Is this something new? Is this a side hustle? You’re doing it full time. Tell me about you.
Kevin Lee: Well, I started doing passive investing in real estate since 2010, back then I had a nine to five job. So I basically just buy rentals back then I was on W2. It just so happened that because you’re on W2 you can qualify for loans. So I started just branching out into other markets, looking for cash flow, rental properties. And that’s how I started the real estate investing. It’s not until two years ago I decided to do this full time. Before that I heard about wholesaling, but it never clicked. I never believed myself that I will be able to do this.
So I signed up for a program three years ago and I never took any action. I just didn’t believe myself that I will be able to do this. It’s only until two years ago I started doing it while I was at my previous job. And I had such success. I just say, “Hey, I didn’t like my job. I want to do this full time.” I didn’t want to be told what to do. So I decided to take the plunge and started doing it full time. I’ve been wholesaling properties, I’ve been doing fix and flips. I get to cherry pick properties that come to my desk and that’s the most beautiful thing.
Brent D.: Yeah. So Kevin, what changed in your mind? You said three years ago you didn’t believe you could, and then two years ago something changed in you, and you made the decision that you believe that you can do this. What happened?
Kevin Lee: I think it’s just the pain. It’s just the pain of going to work and being told what to do by your boss. And in fact that I was dying inside, I wasn’t learning. I think I hit a plateau in terms of how much I expect from my job. And my boss wasn’t really… I wouldn’t say he wasn’t… There’s just so many reports. So I’m getting a very good [inaudible 00:07:40] from my previous job. But I wasn’t learning and I don’t have the freedom, so I just want to be able to do something that on my own. Just do whatever I want, whenever I want with whoever I want. And I think that wholesaling, talking to people is the best way to get there, or fastest way.
Brent D.: I love it. So two years ago you started out, so did you have enough setup? This is something that I actually just did a video on, on my YouTube channel about the certain things that you need to have or know before you make the plunge into doing real estate full time. So did you have a certain amount of savings to keep you comfortable to make that transition?
Kevin Lee: Yeah, I did have some saving, but it wasn’t that much. My back was against the wall. I liked that feeling. And remember, I listened to one of the coaching calls in the past. You say you want to start every day with zero. I would say that I need to talk to that is going to sign the contract. So that’s always in the back of my mind. I liked that feeling of just having my back against the wall. And start every day with zero. And though I’m not there now as before because there’s more money coming through wholesaling and talking to people. It’s a great feeling to have just that my hat that one and a half hours just on a call. Imagine, Brent just hang in the back listening to my call and you’re giving me that $1000 cash every hour I’m staying on the phone. Time, right. So I time blocked that time. I make sure that I do at least one hour of call every day. Obviously, I have five callers now. While I’m still in the trenches with them. I’m still making calls just to make things happen.
Brent D.: I love it. You touched on some beautiful points. Kevin talked about starting every day at zero. What that basically means, if you haven’t heard any of the material that I’ve put out, is basically start with zero money in your account, zero leads in your pipeline, zero deals that are going to close. Start just so super hungry every single day and ask yourself, who’s going to sign a contract that day? Beautiful. And then the next part of all of that is he talks about imagining that I’m standing there in his office with them, literally watching him make his calls to make sure the script is perfect, his tone is perfect, the pace that he’s using is perfect, that he’s actively listening to the people that he’s on the calls with. It is so important, and I tell every one of my students to imagine that I’m giving them $1000 cash every hour that they’re on their phone because that is the potential of the power of picking up the phone and talking to people every single day.
Because if we boil down wholesaling, if you boil this whole business, this is it. You need to have quality conversations with distress homeowners, as often as possible. If you do that, you’re going to find certain people that are going to work with you to solve their problem. Okay? That is it. If you want to boil all this down, I don’t care how you have those conversations, I don’t care if it’s direct mail, or pay-per-click, or if it’s phone calls, or if you’re putting out bandit signs or whatever it is. But you need to have those conversations.
We, Kevin and I are highly motivated to have those where we’re proactive, so we want to have those conversations on our schedule. So we pick up the phone, and make those calls and like Kevin said, he has five people making calls. I had eight people making calls. There’s so many leads, it’s just absolutely ridiculous. Okay. So Kevin, you started two years ago, you started getting into it. Your back was against the wall. Let’s talk about your first deal that you did that gave you a little bit of breathing room and then we’ll talk about a deal that you got from picking up the phone and just making a call. So what was that first deal that got your back off against the wall a little bit?
Kevin Lee: Yeah. So that first deal was actually a joint partnership. I was the one who was doing marketing back then. I didn’t even know about TTP or cold calling or talking to people. I was just sending direct mails like what these gurus on podcast say. So I just send out $2000, $3000 worth of direct mail, not even in my market. I was doing it virtual because I didn’t believe in myself that I would be able to do it in my backyard, and I didn’t want people to see me really on Facebook and other social media or this guy, I don’t want to have a bad impression with my boss that this guy is actually working on something else while he’s working for me. So everything was a partnership with a local wholesaler in Memphis, Tennessee. And the person called, I remember and we just shouted and we signed a contract over the phone.
She went to see the property, took pictures and she has a buyer’s database. So she blasted it out to her buyers and we got a contract and we got the deal closed, and we split the profit. It gave me a little bit of confidence that this thing actually works. And then there’s just cheques that coming, every now and then. I wasn’t consistent because back then I still have my full time job and I had one VA back then. So she was able to also feel the calls for me and we just sent her out to see the owners. Often times these people they don’t know anything about technology, so we can’t really do DocuSign. So she’ll go out with a contract, we sign it and then we started marketing, and then we get deals that way.
Brent D.: Awesome. So Kevin came out to Phoenix to spend some time in my office. Any of my TTP students can come any Friday and spend the time seeing my operation, seeing what’s going on. And Kevin came in and spent a fantastic day. We had a great day together, and on that day you had actually brought, it was beautiful guys. This is just beautiful. He had brought a deal that one of his phone prospectors had just locked up. Why don’t you break down that deal, and we’ll talk about what we did here in the office, and what you did to sell that and build your buyer database.
Kevin Lee: Yeah. So that deal came from a code violation list that we pull. It’s also called substandard in my County that we put on a weekly basis, and I have a skip tracing software that I use to find out the numbers, and then my caller with the call down list. So we do that every week, and that list is refreshed every week. Just so happened that we called this person and this particular property he’s not interested in selling, but we asked that question, do you have any other properties you will consider selling? Maybe something that needs a little bit of love just according to the script. And he said, “As a matter of fact, I do have this property that I’m looking to sell.” So we scheduled the appointment, I went out to meet the owner. I even pulled back. I said, “Why don’t you just list the property or why not just sell it to your two sons?” And then they say they’re tired of being a landlord.
So I say, “Okay, looks like I’m able to buy it. How much do you want?” When we were talking to him on the phone, he was asking for 140. I think the maximum allowable offer for us was between 135 and 150. I said, “If we can get it for even 140, we can wholesale it for $10000 more. set me up.” So I went to see the owner, and I got him down to 100. I started with 90000 and then I said, “I got to call my partner to see if we can do this at 100000.” And he said, “Yeah, let’s do it.” And that’s the lowest price I’ve ever got from any houses that I purchased in Sacramento or California for that matter.
Brent D.: Sure. That’s super low in California. And let me add because you did something beautiful there. He said he wanted a certain price and what did he say? He said he wanted 130 to 150, that’s what he said.
Kevin Lee: 40 yeah.
Brent D.: Yeah. He wanted 140, and you came in at 90. Listen, this is beautiful. This is a little nuance here in this business. It’s called anchoring the price low. So when he came in at 90 the guy felt great getting a hundred because he got something back, right? A little bit of give and take. When you anchor low, you have the ability to come up and make them feel great about it. Here’s the thing. Often times people have a number in their head, but when they’re having the conversation, they’re nervous that it’s too much or they don’t know the values or they’ll settle for far less because the stress of this property is so much on their shoulders, in their mind that if you hit the right number in their head, they will say yes. And when he anchored low at 90, he went $50000 less than what the guy said he wanted. And what happened was he got him down 40000, he got him at 100000 that is so beautiful. Such a smart technique. I love that about you Kevin. You love anchoring low.
Kevin Lee: Yeah. One more thing is I actually didn’t negotiate with the owner over the phone. I actually did it right in front of him, face to face. I feel like if I were to ask for 90000 without seeing the property, you will have just hung up the phone then.
Brent D.: 100%. I think in this market you got to get face-to-face, knee-to-knee, belly-to-belly, 100% agree.
Kevin Lee: Right. So I just start maybe tangering strategy when I’m face-to-face with him as opposed to… Besides I never seen the property, I don’t know how much rehab the house would need and so forth. So it’s not sincere, you’ve worked your ass for 90000 basically it’s doing a blind offer without seeing the property. Yeah.
Brent D.: And it’s lazy. If you were to just do that over the phone, you’re just being lazy. You’re looking for the people that do that over the phone are looking for people that tell them no, because they’re afraid of when they get a yes and getting the success of that. It’s crazy. It’s a different mindset. So what you did is you weren’t afraid of the yes. You just wanted to get in front of them and make it, like you said, something legitimate, something that you weren’t just throwing something out because you were trying to avoid getting the deal or trying to get some smoke and deal without putting much effort into it and being lazy about it. You’re like, “Okay, 140 sounds about right. Why don’t we meet at the property and we’ll see if it’ll take less. Beautiful.
Kevin Lee: When we are at the property, he were showing me the things that need to be repaired. And he was telling me this story that his wife who passed away was the one who was managing the property and he’s a pastor himself. So he can’t do it without a proper management company and he doesn’t want to take care of it. So I kept asking why, I kept digging into the pain to the point that, “Hey I’m ready to throw out my hand and then just sell you for whatever you’re asking.” So yeah, that was really good. Yeah,
Brent D.: That’s awesome. So you came to the office, you had it locked up for 100000, we pulled it up on a website called PropertyRadar. If you guys have it in your market, PropertyRadar is unbelievable resource. It gives you a ton of information about properties. It gives you a ton of information about if they have equity, it gives you the home owners number. Sometimes it’s accurate, sometimes it’s not. But what we did is we looked for everybody in that area that had bought a cash property, and we just called them up. And you talk to one that was buying a ton in that area, isn’t that right?
Kevin Lee: Yep. So what we did was… I have access to the MLS. So I pull the cash buyers, a quarter mile radius of the subject property. And then we look up that property on PropertyRadar to see who the owner is. It just so happened that this particular cash buyer still number is on PropertyRadar. So Brenton, you and me, we started calling these people, and he was fisted. So I just went ahead and sent an email detailing the property and so forth, and went from there.
Brent D.: Yeah. Well, the beautiful thing about this guys, was Kevin came into the office and he pulled up the number. I said, “Well call him, call him.” He called them up right away. No fear, no second thoughts, no him and hon just dialed the number and called and started a great conversation. Now he didn’t sell this property to that cash buyer. I’ll tell you that now. But he is in this cash buyer database and he will sell the properties to this guy. But that’s not the moral of the story.
The moral of this story is he took action. He didn’t let any fear creep in. He just saw the number and made a call. He just wanted to talk to this guy. He had a great conversation. He knows what the guy’s buying. He knows if he’s in the area, again, he could pick up the phone and call this guy and see if he wants a deal in that area in the future. It’s beautiful. It’s just all about talking to people. When people are talking about building their cash buyer database or people talking about building up their pipeline of leads, just pick up the phone. Right?
Kevin Lee: Yeah. I agree with you. 100% I’ll even say, I remember what you were saying about after you make three amounts worth of calls. That fear of rejection is just no longer there. I have received so many No’s actually expecting No’s every day. If I’m not expecting No’s that means I’m not making enough calls or I don’t mind dialing people. I think we’ve got to be proactive and take the initiative, especially in this competitive market. We have to ask, if we don’t ask, how do we know? Ask you shall receive, right?
Brent D.: That’s right. It’s cause and effect. Yeah, absolutely. So tell me what happened with that property.
Kevin Lee: So what happened was that I was near the deadline. I had to close. So I use a hard money lender to close it. I use my money and I was about to hotel it until a local wholesaler. He kept asking me if the deals in the past, he actually introduced me to a buyer and that buyer was able to call through. And I wholesale it for $143000, the wholesaler who introduced me to deal got paid by his buyer. So I didn’t have to come out of my pocket.
Brent D.: So how much did you make?
Kevin Lee: 43000.
Brent D.: Ooh, hold on a second. I got to step back. Oh yeah. That is the victory bell baby. 43000 and this was a cold call that you didn’t even make, right?
Kevin Lee: No, I didn’t even make. Yeah, he was my caller. Yeah.
Brent D.: So you hired a cold caller. What did you pay this cold caller?
Kevin Lee: I think she was getting paid $4 an hour.
Brent D.: $4 an hour?
Kevin Lee: Yeah.
Brent D.: $4. She had one conversation. She used the right script. She asked the second question when she got a no off the bat, which is, “Do you have any other properties that you would consider selling? Maybe something that needs a little bit of work or need a little bit of love.” Just that little sentence right there. If you guys are listening guys, and you’re making calls, you got to use it. It’s going to give you so many more deals this year, and that turned into $43000.
Kevin Lee: Yep. I think that second line, the follow up question is so important because you never. And in this market, a lot of people have besides the primary residence, other properties and yeah.
Brent D.: I love it. So now-
Kevin Lee: I catch them if I ask that question.
Brent D.: So give me the landscape of your business now. You’ve got five callers and you making calls, right?
Kevin Lee: Yeah, yeah. Well I’m making the call. I do one hour a day. I try to, because I go on appointments too. I don’t have an acquisition manager. Maybe that’s something that I would do in the future. The thing with this market in California is I don’t have the volume as you guys or other markers in the Midwest. So I’m really looking for a high, if you will, a lowly high conversion and a high wholesale fee. So if the person is not motivated I don’t go on an appointment even slightly motivated. I wouldn’t waste my time, but this week we have four appointments set up. As a matter of fact, after this call, I need to go on that appointment. I lock it up.
Brent D.: Lock that up, that’s right. And so that everybody can see what shirt you’re wearing. Can we… There it is, yeah. Kevin’s got, for everybody listening to this podcast. You can’t see it, but he’s got the classic black TTP shirt. You can catch it on the Wholesaling Inc a YouTube page as well. It’ll be up there and on Facebook, so you can check that out. So Kevin, to wrap this podcast up, give some advice to anybody that this is their side hustle. To anybody that has that full time job that they want to get out of it, to anybody that maybe is making the decision right now to be a wholesaler, but something’s holding them back from taking action. Speak to those people right now.
Kevin Lee: I say, you just need to do it. Just do it. And do it with consistency. I know that may sound cliche, but there’s no way out. And if you have your back against the wall, you think about the pain and how much this thing can actually remove you from the pain. You would do it. Just imagine someone pointing a gun at your forehead, and asking you for ransom exchange for your kids. Would you be calling people and made that 10 grand wholesale fee to pay the ransom? You would. So I have to do that. My hack every day, I say I start with zero, just like Brent kept telling I don’t have anything and that’s why I’m calling people. I want to be motivated. I want to be on the phone because that’s the highest paying time that I can spend in making money. I do it and somebody’s hand on the $1000 beer in front of me.
Brent D.: That’s right. 10 crisp, $100 bills. That’s awesome. Kevin, how can people get hold of you? Do you have a Instagram handle? Do you have a Facebook? What’s the best way?
Kevin Lee: Well, they can, visit me website insightfulreibuyhouses.com or just email@example.com
Brent D.: Awesome. And it’s interesting, I have this book sitting here in front of me and it’s exactly what we’re talking about. Exactly what you’ve been through here. I really like this quote. It’s from a book called a Together is Better. And on the back of it, it says “Working hard for something we don’t care about is called stress. Working hard for something we love is called passion.” And that’s exactly what it is. You know what I mean? Working for somebody else and being in that job and going through it and all the reports and the management and the lack of freedom, and the soul crunching, time schedule that is called stress. Working hard towards your own business, being an entrepreneur, being out there providing value. That is the passion. So I absolutely love it. So I really want to thank you, Kevin, for being on here.
Everybody listening to this. You can certainly reach out to me on my Instagram, Brent Daniel’s TTP. You can check me out there. You can see this video on the Wholesaling Inc. YouTube channel, definitely check that out. That’s going to be filled. That’s going to go bananas here soon. We’re putting out so much amazing content on that. And also I’m reaching out to all of those people that have those proactive minds out there. If you are listening, I am calling you directly. Here is the challenge. If you are thinking about picking up the phone and making a difference in your life in this wholesaling business, you have got to set up a call with us at wholesalinginc.com/ttp. I am telling you, you will have an unbelievable conversation and really find out if this proactive side of the business is for you. So until then, I love you guys all. I hope you guys are all out there talking to as many people as possible. Kevin, thank you so much.
Kevin Lee: Oh Brent, one more thing. If I give one paragraph, this is from this book I’m reading right now. It’s called the greatest salesman in the world. Talking about good habits. So I think calling people is a good habit to have. So a new and good habit is born but when an act becomes easy through constant repetition it becomes a pleasure to perform and if it is a pleasure to perform it is man’s nature to perform it often. When I perform it often it becomes a habit and I become its slave and since it is a good habit, this is my will.
Brent D.: I love it. What was that from Kevin?
Kevin Lee: This is from the Greatest Salesman in the World.
Brent D.: Yeah, Og Mandino. Love it.
Kevin Lee: Yes.
Brent D.: All right, brother. Everybody out there. Until next time I encourage you to talk to people. See ya.