If you’re new to wholesaling and you’re struggling to find or close those deals, you’re in luck. Today’s guest is a seasoned and very successful real estate investor who has extensive experience in real estate investing, fixing and flipping, managing properties, brokering, wholesaling, and even coaching. And he generously shared many of the proven tips and tactics that has helped him make a mark in the highly competitive world of real estate and wholesaling in today’s episode!
David Dodge has been a real estate investor for 10 years now. He has also been doing wholesaling full-time for a total of 4 years. David is also the co-owner of Discount Property Investor and House Sold Easy. He is also the co-author of “The Ultimate Guide to Wholesaling Real Estate: Learn How to Buy Properties at a Discount,” a book that guides wholesalers and provides them with a wide range of tactics and tools to help them be successful in wholesaling.
Regardless if you’re a seasoned wholesaler or a cautious newbie still trying to find your way around, you’ll surely benefit greatly from today’s episode. So get your pen and paper handy as you’ll have plenty of wholesaling gold nuggets to take note of in this episode!
- Why wholesaling is a means to an end for him
- The reason he got into wholesaling
- Why you make your money when you buy
- The difference between fishing and hunting for leads
- Marketing he uses to effectively keep good quality conversations coming in
- Why he does a lot of AdWords
- Where 50 percent of his pay-per-click leads come from
- The number of leads he gets from his radio show and ads
- How quickly he responds to leads
- Who handles leads they get from their radio ads
- Why he refers to his employees as partners
- What they use when they do cold calls
- Why it’s important to also cold call property managers
- What the Rule of Five is and how it works
- Why he believes in progress over perfection
- Examples of two lucrative deals he did
- His advice to people who are new to wholesaling and are struggling
- Why it should be the buyers who determines the value of the property
- Download your Free Audio Book
- Ultimate Guide to Wholesaling Real Estate by David Dodge and Mike Slane
- Wholesaling Inc – TTP
- Wholesaling Inc – Reviews
- Brent Daniels – Real Estate Coach Youtube Channel
- AdWords – Google Ads
- Bing Ads
- Mojo Dialer
- Discount Property Investor
- Discount Property Investor Podcast by David Dodge and Michael Slane
- 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 Daniels: Welcome everybody back to the Wholesaling Inc podcast. I am your host Brent Daniels and I am really, really excited because I’ve got a gentleman here out of Missouri that is doing absolutely crazy amounts of business, crazy amounts of business in such a way that he is an author of what I consider the best book on wholesaling real estate that is available out there today. So everybody, I’d like to introduce the one, the only David Dodge to the Wholesaling Inc podcast. David, say hello.
David Dodge: Hey, how’s it going, Brent? Thank you so much for having me, man.
Brent Daniels: I’m excited to have you on here. It’s incredible that we get to get on this podcast and really share some top, top, top level stuff. You’ve done some incredible things with your business. You do multiple, multiple deals every single month, but also I want to pick apart your book for somebody that’s starting out in this business and really-
David Dodge: Man, I love it.
Brent Daniels: Pull out-
David Dodge: Let’s do it.
Brent Daniels: Yeah, pull out the value from the author’s mouth himself. So first off, why don’t you give everybody a little bit about you, your background, how you found this unique, beautiful, perfect business called wholesaling real estate.
David Dodge: Absolutely, Brent, thanks for having me. I want to say thank you so much to you personally and also to all the people over at Wholesaling Inc for having me. I’m a huge fan, not only of you but of Wholesaling Inc, so thank you so much. My name is David Dodge. I’m located in St Louis, Missouri. We operate a wholesaling company. We also do rental acquisition. We also do rehab, so fix and flips. My company right now, we vary between eight and 14 deals a month. Call it about 10 deals a month on the wholesale side.
I was just on a podcast with Gary Boomershine last week and I told Gary, I said, “You know, I’m kind of unique when it comes to wholesaling because the wholesaling, to me, is a means to an end.”
Brent Daniels: I want to get to 150 rental properties. Right now we’re over 40 but I have a saying that I like to use, so I’m going to use it with you as well. And that is, keep the best, sell the rest. Now there’s conflict there, because the best deals obviously have the highest wholesale.
David Dodge: Again, I’m into wholesaling because I want to not have to work forever. Isn’t that the reason that we all get into real estate in general is for freedom? And quite often the people that get in, they have none of that, Brent. They have none of it, especially in the beginning. So any way that I can help you all on this podcast or from my book alleviate some of those issues. That’s kind of my passion and my goal. So again, we’re doing about 10 wholesales a month. We have over 40 rentals. We usually have anywhere from four to eight rehabs going at any time. We just listed three last week so right now we’re only really working on three or four, kind of a small number for us.
I’ve been doing this full time for only four years, Brent, which is kind of crazy. I’ve been investing in real estate since I was 20 years old. I’m 34. That’s 14 years as an investor, but for the first 10 years, from year one to year 10, I’m at year 14 now. I was buying one house a year essentially. Maybe one every 18 months off the MLS, listed properties, going through agents, paying retail because I didn’t know about Wholesaling Inc. Seriously, if you are new to this business guys, it’s just crazy. If you’re watching, you’re not listening. I have this big, big banner in the background, Discount Property Investor. That’s our brand. But really it can be anyone’s brand, guys. We buy properties at a discount. Period. That’s really all there is to it. So again, I’ve been doing this four years, full time.
We’ve scaled to about 10 deals a month. I’m not sure I want to scale any larger in my market, but at this point we’re starting to look at other markets to do some virtual things. And as you said, Brent, thanks for having me and thanks for helping me get the message out. But we wrote a book to help people that are new to this business because you make your money when you buy. Let me say that again, guys. You make your money when you buy, you get paid when you sell. Everybody likes to get paid but you actually make and create the money when you buy. That’s me, man. That’s my message.
Brent Daniels: That’s it. Well and wholesaling, if you boil it down like really, really boil it down. It’s just finding opportunities. It’s literally sourcing opportunities. That’s all it is. And it depends on how you want to do it. And I’m curious to see, because we talked about… We’re going to talk about your book, getting into some of the ways that you actually get deals, because that’s the point of this podcast is to explain the how to and give instruction, but it’s really interesting. You can market for it. You can get referrals or you can prospect for it, but either way that you do it, either way that you’re getting out there, you have to have quality conversations with distressed property owners every single day, or the machine stops. I mean, it does.
David Dodge: Brent, I love it. I say it a little differently, but it’s the same message where you can either go hunting for leads or you can go fishing for leads. All right? When you fish, you’re spending money, right? You’re throwing a bunch of lines in the water and you’re waiting for one of those lines to pull tight. Otherwise, you’ve got to go hunting, man. Like you’re TTP, you’re cold calling. That is hunting, hunting, hunting, you guys are those people chasing them down. I love it. Not literally, but you know what I mean. So I love it. Either do one of the two, you’re hunting or you’re fishing. We do both in our business and the book should hopefully teach you guys how to do all of them.
Brent Daniels: So let’s crack this thing open. If you’re watching the video, you can see this, you can get, it’s called The Ultimate Guide to Wholesaling Real Estate. You guys can get this on Amazon. listen, I’ve been wholesaling for a long time. David, I’ve been doing this. I’ve been in real estate since 2004. I still read this thing cover to cover. I still love it. There was a lot of great stuff. Plus you really speak to this audience because we call ourselves the rhino tribe and there’s literally, literally a chapter in this book about being a rhino in this business.
David Dodge: I know, I’ve listened to quite a few of your guys’ podcasts, been following you and Tom. And I’ve picked a ton of stuff from this book from both of you guys. Believe it or not, I sent this copy out… Let me tell a quick story, Brent and then we’re going to jump back in. On the very first page of this book, I spelled it wrong. Now I’ve fixed it since. So if you buy a copy, you won’t notice this. From the very, very first page. It says the ultimate guide to wholesaling real state and on yours I signed it I think in May. We even put an E in there and I was, I spoke at a REA just last week. They had me as one of the experts on the panel of experts, and the message for that particular REA was “Do Something.” That was it.
That was the message. And if I would have waited until this book had every single word correct properly and a comma here and a colon there, it would never be done. Isn’t one of your guys’ sayings progress over perfection?
Brent Daniels: That’s it, progress not perfection.
David Dodge: Progress over perfection. So that’s exactly why. So I printed about 200 of these copies and I mailed them to everybody that had a say. Boom, there it is, right there. I didn’t even sign yours. What the hell? But anyway, I mailed a copy to everybody that had either been a coach or a mentor or even people that don’t even know who I am, but I’ve learned something from them as a way to say thank you. And I didn’t want to come off rude like, here’s a book, teach you how to wholesale because you basically taught me or all these other people did. A`gain, I had printed 200 copies of it before I had noticed that there was errors and I didn’t even care. I started laughing Brent, because I go, you know what? Again, if I would have waited, it would have never been done. So now those errors are fixed. But it’s just kind of a funny thing because if you have the book with the state instead of estate, it’s a special edition.
Brent Daniels: It’s a special edition now. And I’ve got it. So let’s get into this. Let’s crack this open. Page 65 goes into what you were talking about, about fishing for leads, right? This is literally the title of this chapter. So talk to me about what works for you in your business when you’re fishing for leads. This means marketing. What marketing do you use to effectively keep those good quality conversations coming in from distressed property owners.
David Dodge: Absolutely. Let’s start there. It’s a great point. So we do a ton of AdWords in St Louis. We do do mail, we don’t do as much mail as a lot of other people out there. We probably do a mail drop maybe once a month, maybe once every three weeks. But we’re definitely not mailing consistently just because we have a lot of competition in St. Louis, which doesn’t hurt me at all. I don’t care about that. But we’ve just found higher ROIs on other ways to market. So we do a lot of AdWords and quite honestly we’ve incorporated Yahoo Bing as well recently, and we are getting probably 50% of our leads, of our pay per click leads, let’s say, through Bing versus Google. If you are doing AdWords, this may be a gold nugget for… Listen, if you’re doing AdWords right now and you are only on Google, reconsider what you’re doing.
Maybe if you’re hired someone out, have them implement Bing as well. It’s really not that much harder because they can use a lot of the same data to put it in. But we in St. Louis, we’re getting about 50% of our pay per click leads, I should say, from Bing. So we do that. We’ve recently expanded to doing some radio marketing. I’m on two channels right now. We’ve been doing this for about seven or eight weeks and I committed to doing it for about six months with my radio station. So those leads have actually been really, really good that have come in.
Brent Daniels: Really?
David Dodge: Yeah, we’ve been doing really, really well with radio and now it’s very, very expensive; not cheap. However, the radio stations that we are on, I have the statistics right here. We have between 12,000 and 18,000 people listening at any time during our parameters that we have set.
And we staggered our commercials. We’re doing two commercials a day on each station. That’s four a day. So it’s not a ton, but we’re getting consistently I’d say two to three calls on the low end. Very rarely will I not get a single call from a radio ad. And some days I’ll get five or six leads from that. It’s a numbers game, we all know this, but the more leads that come in, the higher chance you’re going to have of getting those good home run leads. So that’s fishing. So we do mail, do AdWords, I’m doing some radio, there’s probably about 25 things that we do on top of those. But I would say 80-20 rule, 80% of our marketing is in those three things right there.
Brent Daniels: So let me ask you, when you are getting these leads from the web, through some sort of pay per click, whether it be Bing or Google or whatever it is, whenever it’s coming in online, how quick do you have to respond to those leads?
David Dodge: That’s a good question, Brent. Quick. Ideally you want to have somebody call those people. Answer live is the best of course, right, answer them live. But if they come in through a web form, it’s impossible to answer live, right? So you want to get back as soon as possible. So what we do in our organization is it tags four different people. We use Podio, I’m sure everyone’s heard of that already. It tags four different people in there. It tags three of my buyers immediately and then it tags me for an hour or two later. And if I get that lead before they do, somebody’s going to hear about it because they need to get it out there. But sometimes people get busy, they’re on appointments, they can’t get it.
So I’m the fail safe, the backup. But the best way to answer that question is the sooner you can get back, the better.
Brent Daniels: When you say buyers, David, do you mean acquisition managers?
David Dodge: Acquisition managers.
Brent Daniels: So it’s not just going to your cash buyers.
David Dodge: Absolutely, they buy on behalf of me and my company, but they’re acquisition folks. They’re out in the field buying, putting properties under contract. So they’ll get it first. Ideally it’s within five to 10 minutes. Ideally immediately. But people are driving and so on and so forth. The answer to that question though is ASAP.
Brent Daniels: ASAP.
David Dodge: The less amount of time, the better.
Brent Daniels: When they call in off of a radio ad, who do they talk to?
David Dodge: Where they call in off a radio ad? So the way we have structured ours is a little different than most.
And I don’t know if I’d recommend anybody doing the way that I’m doing unless, here’s the key here. Unless you have a really, really good virtual assistant. So we have two virtual assistants, but only one of them actually has a phone. And [inaudible 00:14:07] been with me for three and a half years, I started wholesaling, six months in I got myself a virtual assistant because I wanted to start delegating and automating my business. I’m sure you guys have heard a ton about that. So all calls come in from 9:00 AM to 6:00 PM during his hours and they hit him first. If he’s on a call, then they’ll ring an office phone here that myself and a couple other staff members can get to. And if it’s after hours we use PATLive.
Brent Daniels: What’s PATLive?
David Dodge: [inaudible 00:14:35] basic things. But the reason why I said is maybe not do what I do is because putting the virtual assistant, if they’re new and they don’t speak good English or they don’t have a good personality, they can’t talk to people.
You guys can already tell I like to talk, so I’ll talk for hours, days, right?
Brent Daniels: Me too.
David Dodge: I’ll go all day. But if you have a virtual assistant that maybe is shy or they’re not very personable, I don’t personally recommend you having them answer the phone because you want that first point of contact to be somebody that they’re going to like getting a callback from or they enjoyed that conversation. So my virtual assistant’s name is Dennis. In our organization we don’t really have much of a hierarchy. I write the checks so I guess in theory I’m the boss but I don’t refer to him as my assistant. I always refer to him as my partner. That way it doesn’t come off weird. I don’t really want to undermine him either. Because not only does he work for me, he’s a friend. All of my employees or contractors or whatever you’d want to call it are friends of mine.
Really that has to come first, in my opinion. That’s why I don’t recommend doing that from the start. But if you find that rock star person that you trust and… At this point, it’s almost better that he take the call than me. He has as much energy as me and he’s there. He’s ready to listen. He’s ready to answer questions, but most importantly, he’s ready to listen and it’s hard for me. I just keep talking.
Brent Daniels: Awesome. Love it. What about hunting? Do you guys, you guys do much hunting in your business?
David Dodge: So we do do cold calling as well. Coming from the TTP man himself. That’s right. We do do some cold calling. We use the Mojo Dialer. Recently we’ve experimented a little bit as well with some RBMs and some texting if they work and they’re good.
However, you’ve got to be kind of careful with it because you know if you’re not doing it right, you could maybe break some laws or it could come off as spamming people. So our texting and RBM is mostly done on the follow up side versus the new, Hey, you don’t know me and I’m reaching out. That’s more of a cold call in our ways of doing it just because I hate getting spammed, either a voicemail, a text message, even an email. So I hate to do it to other people. So we do do those techniques. However, we do them with integrity. I’ll put it that way. And we do the hunting. We do the fishing. We got guys that go out and do bandit signs. We try to put out 100 a week. We don’t always hit that number, but we probably have maybe 800 of them sitting here in my storage room right across the hall, just ready to go out.
I had mentioned cold calling, but you name it, man. If there’s a will and a way we do it, we do a lot of networking with… This is something that you probably don’t hear all that often, but we’ve had tremendous success, Brent. We do a lot of networking with management companies.
Brent Daniels: Property management?
David Dodge: [inaudible 00:17:30] Management, because you can get a list of people that own these rentals. Essentially they are the absentee owners. They may or may not have high equity, who knows, but they’re the absentee owners. But a lot of times they rely heavily on their property management company to make every decision for them. Not just do I want to turn this property and re-rent it? The property management company may say, this thing’s a dog, sell it. So if you can get to the property management company before they tell the client, and there’s been incidences, Brent, where they will ask me for an offer and then they’ll take the offer to their client while they’re having the conversation of, Hey, we don’t really want to manage this anymore.
You probably don’t want to own it anymore. Maybe you’re out of state and you don’t know the area. However, my buddy Dave’s looking to buy in the area. You want to sell, and if so, here’s the offer. We get a lot of deals from networking and…
Brent Daniels: Referrals.
David Dodge: Management companies, networking with [inaudible 00:18:29].
Brent Daniels: Let me ask you this. Do you just look these people up and give them a call and start the relationship? How do you connect?
David Dodge: It’s no different than cold calling the seller.
Brent Daniels: That’s what I’m saying. So you made an interesting point because you’re talking about the integrity of just picking up and cold calling somebody. It seems like there’s this easy-
David Dodge: Cold calling isn’t a big deal. There’s nothing wrong with that. But spam and texts and RBM can be, right?
Brent Daniels: What I love is TTP cold calling is not just to the sellers, it’s to everybody. Talk to hard money lenders, talk to rental. The property managers, talk to title companies. Talk to everybody out there that’s in the business.
David Dodge: Divorce attorneys and probate attorneys are also huge for us.
Brent Daniels: Real estate agents.
David Dodge: Agents, we get a pocket listing probably once every other week. We got a short sale probably every week. And I don’t know if that’s a combination of me being in the business for four years and them just starting to know who I am, [crosstalk 00:19:33] have known who I am or if it’s just networking. I like to believe that it’s all of the above. You’ve probably heard it before, but `the harder I work, the luckier I get. It’s just true. The harder you put effort into something, the luckier you’re going to get because again, it’s a numbers game. So it’s not true luck. It may feel like it, but if I’m getting that person that’s ready to go on that 20K wholesale, it’s because I’ve been told no 999 times already.
Of course, I’m going to get lucky. I’m due. [crosstalk 00:20:06] Cold calling, let’s just recap real quick. Cold calling the property managers. Definitely do that. To me it’s as important as cold calling the absentee owners directly. Hit them on both sides. Probate attorneys, everyone wants to mail probate, lot of money in probate. We’ve made hundreds of thousands of dollars on probate. But sometimes those people don’t want to talk to you and they hire a lawyer for a reason, to guide them. So get in that lawyer’s pocket, become part of that lawyer’s tool belt. So whenever they say, we don’t even want to mess with this, he can say cool, call Dave. Dave will come out and buy it. And it’s the exact same way with the eviction attorneys too. A lot of these landlords, they’re not dealing with the eviction attorney. The property management companies are. So not only can I have maybe an eviction attorney saying, Dave, we’ll buy your house, but I might have the property manager saying it too. And you’re hitting them from all angles. So yeah, I love those methods.
Brent Daniels: And you’re the guy that solved the problem.
David Dodge: Absolutely. That’s what I’m here to do is help them. I’m here to solve their problem and I don’t do it for free. Brent, when I walk in and I still run appointments because I enjoy talking to people. But whenever I run an appointment, I tell people from the get go, A, I’m here to make money. And B, I might not be the buyer for you. I just tell you right off the bat, I don’t do this for free. I have a family, I have a wife, I have to feed my family and pay my own bills. I make it very, very clear, but you’ll notice that if you go into your appointment with a mindset of, I might not be the guy for you, instead of them also having the mindset, you might not be the guy for me.
They’re going to flip their head a little bit and they’re going to say, why not? You seem like a great person to buy this from me. It’s not because I don’t want it, it’s because you’re not going to like the offer. What else you got, Brent?
Brent Daniels: Explain to me, and this is great because I mentioned it on the YouTube channel, if you’re watching this, Brent Daniel’s Real Estate, so just put that into YouTube and you’ll see it. But I mentioned something called the rule of five. Explain to me-
David Dodge: I love the rule of five. [crosstalk 00:22:08]
Brent Daniels: I use this all the time. I didn’t even have it labeled, but you had a perfect label for it. It really is. It’s amazing how much you can lump under the umbrella of the rule of five. Explain what it is.
David Dodge: We use a couple strategies, but the rule of five is really, really good. I’m surprised that it works in Phoenix because I would feel like the homes are a little bit more expensive there. St. Louis is Midwest. We’re in Missouri right here on the border of Illinois and the rule of fives is just simple, guys. If you are new to this business and you are having trouble determining your repairs, use the rule of five. Here’s what it is. Every big ticket item is going to be five grand. And every one or basically every two or three small ticket items combined is going to equal five grand. The only exception that I would say would be three things. A roof. I usually will double that, to 10, now does it going to cost me 10 to do a roof in a certain neighborhood?
No. I could probably do it for four, six, maybe seven but I’m going to say 10. Kitchens. Kitchens are basically like three bathrooms or two bathrooms, right? So you’re going to double that up on the kitchens. And then last but not least, if there’s a bunch of foundation issues, again, I’m going to double that five, so I’m going to go to 10. But everything else is five grand. That’s the cost. So here’s an example. Might walk into a house, the roof needs to be replaced immediately. That’s two fives. That’s 10. It needs a kitchen. That’s two fives, that puts me at 20. It needs a bathroom. That puts me at 25. It needs flooring, that puts me at 30. And then maybe it needs light fixtures and plumbing fixtures. That’s another five, that’s 35 grand. I just determined repairs in 40 seconds. That’s it. That’s all there is to it.
Brent Daniels: We do it from Google maps. With the conversation that you have with a homeowner, you find out what they’ve upgraded. We always ask the question, what remodeling have you done to your kitchen and bathrooms in the last five years? They say none, and they tell us it’s original or they tell us it’s a leak, but they tell us all these things and you can really ballpark, you can have a really good idea of how much repairs that property needs. So you can determine your MAO as you call it, Max allowable Offer. Then you can go into that appointment with an idea of knowing what you can offer.
David Dodge: Absolutely, Brent, absolutely. Don’t overthink it though. That’s my message. I think we share a lot of things in common. I have to say I stole this from you guys, but progress over perfection. That’s my new model or my new motto. It doesn’t have to be perfect. Just get out there. And then also, you can’t be afraid to make mistakes. Again, I was at a REA last week and they had had me up and were talking questions and I was like, the only reason why I’m standing here and you guys aren’t is because I’ve made more mistakes than you. I’m not bragging, I’m not even proud of that necessarily, but I am proud of the fact that I didn’t quit or give up whenever the going got hard.
Brent Daniels: Love it. Let’s talk. Let’s give somebody some meat. Let’s talk an actual case study. Let’s talk about a deal that sticks out in your mind that you can talk about that really… I want something that’s juicy. I want something that’s massive. I want a big healthy, strong deal to really give people.
David Dodge: I got two of them for you and I’m going to talk about them simultaneously because they both happened at the exact same time. So this is about three or four months ago. Had two deals and they were both about maybe three or four miles apart. So they were in the same county. There’s a couple of counties in St. Louis here, but they were both in the same relative area and one of them was a divorce. One of them was a inherited house situation. They both didn’t have much equity at all, but that never stops me from making an offer. And it shouldn’t stop you guys either. Because people have money to bring to the table sometimes or situations change later. So both of these deals had ARVs of around 250,000 and they both owed about 200 and maybe 25,000 so there’s a little bit of equity there.
Brent Daniels: Tight.
David Dodge: Man, that’s tight. We came in and we offered about 40,000 less on both of these properties. This happened in the same month and we both thought this is crazy. Why are we even making these offers?
Brent Daniels: Two different sellers or same seller?
David Dodge: Two different sellers, man, these are simultaneous deals. 40,000 on each. Because you can typically find out what somebody owes. You can ask them. That’s the easiest way. Hey, how much do you owe? Otherwise, you can go on the tax records or Realist and you can see when the last mortgage is and you can calculate it. So we knew we were at least 35,000 less than what they owed, but it was closer to 40 on both. Brent, I shoot you not, I can’t say the S word here.
I shoot you not. Within one week, both of these people responded back to us and said, Hey, we’re going to accept your offer. And we said this is great, but you realize that you owe 40 grand more than what our offer is. And they both said, no problem. We’re going to bring it to close. This is how motivated we are that we are going to pay you to take these properties. And we made about 20,000, one 25, other one with 20 on each of those deals. We wholesaled them off. They were awesome deals for the rehabbers. I also believe in not trying to take all the meat off the bone. Obviously I’m doing this as a business. I’m doing it to make money. However, I really like my buyers to come back. I probably could have made 35 on each of these, but I made 20 and 25, did them in the same month.
But the point here was two things. One, don’t be afraid to make an offer low because you never know. Bring money to the table. And two, make the offer no matter what, because even though these happened quickly, within two or three weeks, each of them accepted those offers and we had two closings in one month where two different individuals brought 40K to the table.
Brent Daniels: Each.
David Dodge: Each. Isn’t that crazy?
Brent Daniels: That is crazy, dude. That’s [inaudible 00:28:10].
David Dodge: Show you there is motivated people out there, and they are all over the place. So if you are new to this business and you’re struggling, the problem isn’t that you’re not doing the right things. The problem is you’re not doing enough of them. That’s it.
Brent Daniels: Just for a second, what did you make in those two deals?
David Dodge: I made 20 on one and 25 on the other.
Brent Daniels: 45,000 from deals that had no equity.
David Dodge: I love it.
Brent Daniels: I love it. That is incredible.
David Dodge: When you’re new to the game, the easy low hanging fruit is going to be the highest equity, or the owner hasn’t seen the house in 15 years and it’s been vacant for three and they live in Hawaii and you live not in Hawaii and you’re just trying to make a deal. Obviously that’s where the money’s at to get going. Those are the low hanging fruit, but sometimes the fruit that’s way high up on the top of the tree will also yield a massive harvest. Just because you have an appointment or a lead that comes in and there’s no equity, it doesn’t mean there’s not a deal there. Simple.
Brent Daniels: Just offer and see what happens.
David Dodge: Offer and see what happens.
Brent Daniels: What do you lose?
David Dodge: So the one was a divorce situation and the guy had money and he just didn’t want to be involved with his wife anymore.
So he said, Okay, I’ll pay 40 grand for you to take this house. He basically paid me 20 and my rehabber 20, look at it that way. To take the home. The other one was an inherited property. It had a mortgage, but the person that inherited the property also inherited money on another avenue. How do I consolidate all this trouble? Do I even want to be a landlord? No, because I’m not already. This was great grandma’s house. And we made him a fair offer. We didn’t steal the home. We just said it’s where we’re at. And I’m very, very transparent about my numbers. I want everyone to see I’m in this for a profit. Like I said, I tell them when I walk in the door and then I say, I need to make it at least this on it and here’s what it’s going to be worth.
Here’s the repairs. And I worked the numbers backwards and it really helps too because it changes the mindset, Brent, I don’t know if I talked about this in the book. I think I did, but it’s not me versus you, Mr. Seller, it’s me and you versus the market. What can the market bear. And that’s where the negotiation occurs. It’s not like, you’re asking 90 and I’m at 70. [inaudible 00:30:35] going to bear 70 so I appreciate that you’re saying you need 90 but no one’s going to pay you that. Anybody that’s in my shoes is going to be at the 70, that’s just an example.
Brent Daniels: I talk about this on this podcast. In any transaction, I don’t care if it’s toothpaste or gasoline or houses, one person determines the price. That’s the buyer.
David Dodge: That’s the buyer.
Brent Daniels: The buyer determines the value of the good of the thing, of whatever it is. If I think that that house is worth 15,000 and you think it’s worth 150,000, and you’re willing to pay 150,000, that’s what you’re willing to pay. I’m willing to pay 15. So the value is really in what the buyer is. And we also have a saying on this podcast that people will trade equity for speed and convenience, which you brought. But they didn’t have equity to trade, they literally traded cash [crosstalk 00:31:34] convenience.
David Dodge: They traded cash.
Brent Daniels: And if you talk to the general population, the civilians out there, you talk to your aunt or your grandma or whatever, your wife’s friends and say, yeah, they brought 40 grand in so I could buy a discounted property. They’d be like, That’s impossible.
David Dodge: That’s not happening. We did two of them in one month. This is probably three months ago. It wasn’t last week, but it was pretty recent. It just goes to show you. People just have different motivations. And that’s all that our job really is, is to solve problems. But Brent, couldn’t you agree that it makes it a whole hell of a lot easier to solve a problem for a super motivated individual than it is somebody that’s not motivated?
Brent Daniels: 100%.
David Dodge: You can’t argue that. So again-
Brent Daniels: [crosstalk 00:32:19] If there is no problem to solve, we can’t solve the problem.
David Dodge: We can’t solve them. Exactly. So I always tell my team, my staff and my friends that work with me here, is that even if the offer sucks and you’re embarrassed to make it, just send it to them in writing. Because oftentimes the two that I just explained to you, they both were just ready. They were so motivated. They said, Dave, let’s do it. Here’s 40 grand each to bring to the table. But a lot of times it could be eight, 10, 14 months later when that level of motivation gets to the level to where me as a problem solver can actually help them. So I always make the offer in writing, even if it expires because then they have it. Versus 10 people come out and run an appointment. Every one of them make a verbal offer. What happens 14 months later, they have my offer. It’s in writing, in their email. Who do you think they’re going to call back first? I would expect me.
Brent Daniels: The book, The Ultimate Guide to Wholesaling Real Estate, David Dodge, like the trucks. How do people get ahold of you? How do people find you? How do people refer your business? How do people partner with you in St. Louis, Missouri?
David Dodge: Absolutely. I appreciate it Brent. Thank you so much. So again, check out The Ultimate Guide to Wholesaling Real Estate. It’s up available on Amazon. At this point I’m just in St. Louis and that’s where we’re wholesaling. We’re going to be looking to expand. Our brand is Discount Property Investor. That’s also where we have all of our disposition. So discountpropertyinvestor.com is where you can go if you’re looking to buy some properties in St. Louis. We also are starting to do some turnkey things as well. Maybe if you’re out of state and you’re looking for something that you can maybe get into for anywhere from 50 to 90 grand, that’s going to give you at least a 1% rule on the rent.
We might be able to help you, but you can reach me directly, email@example.com. That’s the acquisition, housesoldeasy and that’s spelled out E-A-S-Y, not just the letters. That’s how you can reach me. I love doing podcasts, I love working with sellers, I love working with buyers. This business is truly a passion of mine and I’m fortunate enough to say that I got into this business to get freedom and that’s what I have achieved. It took me a couple of years to do it, but I really, really wish that all of your listeners, all of your viewers can achieve it sooner than later. Because that’s why you get in this business. It’s not to work 90 hours a week and pull your hair out. It’s to build, to have a business and have some passive income. And again, that’s why I cherry pick the wholesale deals. I don’t understand why people don’t.
Brent Daniels: Wholesaling is the bridge, right?
David Dodge: It’s a bridge. [crosstalk 00:35:07]
Brent Daniels: Wholesaling is not real estate investing. Wholesaling is a ATM machine. Wholesaling is the lottery. Wholesaling is those big chunks of money that you can either consume or you invest. Depends on what you want to do, whatever soothes your soul, you know what I mean?
David Dodge: You’re right though. It isn’t real estate investing. It’s really a marketing company is really what it is. I think the very first sentence of my book says that this is the marketing, you are in the marketing business. That’s exactly right. David@housesoldeasy.com my email, discountpropertyinvestor.com is our website for disposition. And then of course the book that, Brent, this is another thing too. We started working on this book two years ago. And it took us that long to get it out. I’m just grateful that it’s not going to take four. Again, progress over perfection. I wrote this book and rewrote this book six times until finally I was just like, you know what? It’s not going to be perfect. It just isn’t, but it’s the same thing with real estate investing or wholesaling or however you want to look at it. Get out there, make mistakes. That’s how you learn.
Brent Daniels: I love it. Thank you so much for joining us on the podcast, David. I think you’ve got to give so much value here. I think anybody that really wants to deep dive David’s message and get into his brain, jump into the book, really get going with it. And then obviously he gave you his email. If you’re around, reach out, reach out to him.
David Dodge: I’m happy to help. Happy to guide people that may have questions about anything in the book. But the book, it’s not just a little tiny skimpy book. It’s got almost 300 pages. It’s 270 pages. It’s jam packed. Essentially, this is the last four years of every mistake and error that I’ve made. I feel like I learned sometimes better from other people’s mistakes than them just pointed me towards the door and I walk through it. So that’s what we wanted to do with the book too, was talk about a lot of things not to do. Obviously there’s a million things to do, but there’s some things that you should avoid doing and we tried to float all that in there.
Brent Daniels: Love it. And everybody out there, if you are ready, if you’re one of those mentalities, if you’ve got that business, that proactive business sense that you want to be a hunter in this business, you got to go to wholesalinginc.com/TTP and set up a call to join the most proactive group in real estate investing, the TTP family, the TTP program. Go check out that page, wholesalinginc.com/TTP and check out all the testimonials.
David Dodge: TTP.
Brent Daniels: TTP, that’s right. Check out the testimonials. Check out what’s in the program. If it’s the right fit for you, I’ll be working with you personally. I’d love to do that. Until next time, guys, I encourage you to talk to people. See you later.
David Dodge: See you guys.