Posted on: May 23, 2019

Are you a husband and wife team looking to make a killing in wholesaling and real estate investing? Today’s specials guests will show you how it’s done!

Dedric and Krystal Polite are brilliant real estate investors and serial entrepreneurs. They are also the brains behind Be Polite Properties, a company that focuses on selling residential properties in North and South Carolina, Boston, and other markets nationwide. Active in the real estate industry for over a decade now, they have also been buying and selling hundreds of properties each year.

Luckily, aside from sharing the wholesaling techniques that has worked for them (and the very technique that has helped them generated $90,000 in profit!), they also generously dished out creative and effective methods that has helped them make a killing in the competitive but very lucrative world of wholesaling and real estate.

If you and your partner can’t wait to take your wholesaling and real estate business to the next level, this is one episode you just can’t miss!

Key Takeaways

  • Why it pays to master the art of sourcing opportunities
  • How they found their first ever deal
  • The importance of following up consistently
  • How they earned over $90,000 from just one virtual deal
  • The importance of having the right mindset
  • Why they’re investing in land
  • Why it’s a good idea to invest in vacant lots
  • How they supercharged Deal Machine and make it work to their advantage
  • How they make money driving for dollars
  • How they compensate their deal finders
  • The best list to have when driving for dollars

RESOURCES:

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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Episode Transcription

Brent Daniels: Whoo. Welcome back to the Wholesaling Inc podcast. That’s right. We are back. I’m Brent Daniels, your host today, and this show is going to be on fire. It’s going to be bananas. It’s going to be a fiery banana of value in an unbelievable interview that I have with two professionals that were featured on the Max Maxwells We Live stage. Also, we shared a stage together at the REI black book event here in St. Louis. This couple is absolutely phenomenal and we’re going to deep dive a few things. We’re going to deep dive how to get deals from [inaudible 00:02:24]. We’re going to deep dive how to work as a married couple. This is going to be crazy. This is going to blow you away. We’re going to talk about mindset. We’re going to talk about taking your business to the next level, but without further ado, I have the Be Polite Properties crew with me, which is Mr. Dedric and Krystal Polite. Hello. How are you guys?

Krystal Polite: Hi.

Dedric Polite: Great. TTP.

Krystal Polite: How are you doing, TTP?

Brent Daniels: That’s right. I’m excited to have you guys here on the podcast. Also, if you guys are watching this or listening to this, you can watch this at Brent Daniels Real Estate on YouTube, Real Estate coach on YouTube, so definitely check that out, but guys, tell me what’s going on. Give me some background on you guys. When did you guys start getting into wholesaling real estate?

Dedric Polite: We got into wholesaling January 2017. We took a three-day seminar and we got into the funnel of the education of getting into the wholesale business. We both still have full-time jobs in corporate America, but we got into it January 2017 and it’s been a wild ride.

Brent Daniels: What was your background? What were you guys doing?

Dedric Polite: So, my background was in corporate America, corporate sales and marketing. I did pharmaceutical sales. I’ve done software sales. I actually still have a W2 job in corporate America, where I make over multiple six figures, but my goal is, within the next six to 12 months be able to walk away from, be able to replace that with passive income from real estate. My wife, about a year into the business, she was able to retire. We actually were able to fire her boss in June 2018, about a year and a half after getting into wholesaling from corporate America so she can go full-time into the business. You want to talk about your background?

Krystal Polite: My background, I actually came from real estate appraisal, BPO where all the collateral analytics, so I actually came from … I was with an appraisal management company at AMC out of Massachusetts. I was with them for about seven years and I was working remote once we relocated to North Carolina. So, I did that for … the management of that company, about seven years. So, I really got to learn the other side, the banking side of real estate and appraisals and the BPO side. So it definitely helped us when we first got started.

Brent Daniels: Awesome. So, BPO, just so that everybody knows, means …

Krystal Polite: Broker price opinion.

Brent Daniels: What do people use that for?

Krystal Polite: They basically use it for … It’s kind of like a short form of an appraisal. So, banks and lenders will order a BPO to get a short form evaluation of a property.

Brent Daniels: Awesome.

Krystal Polite: If they don’t want a full out appraisal, they’ll order a BPO on a property.

Brent Daniels: It’s like an appraisal light.

Krystal Polite: Exactly.

Dedric Polite: Right.

Brent Daniels: Okay, great. Is that how you found wholesaling? Did you hear about wholesaling from being in the industry? How did you discover it?

Dedric Polite: I found wholesaling probably like 2012, ’13, from a guy named Nassar out of Charlotte, the real estate Guru. Found him on YouTube and started binge-watching a lot of his stuff. Again, I had analysis paralysis for the first … I brought my first rental property at age 27. Then, for like eight years, I didn’t do anything in real estate. I just read, read, read and analyzed it, but didn’t take any action.

Brent Daniels: Sure.

Dedric Polite: Finally, a couple years ago, my wife, she’s a serial entrepreneur, she’s like, “Look, you keep talking about wholesaling and flipping houses, let’s fricking do this thing.” She kind of pushed us into it, like, “Hey, let’s start taking action.”

Krystal Polite: Right, because you know if I get involved, it’s a wrap. We got to do it. If I have to start reading about it, we are doing it. So.

Brent Daniels: I love it. I love it. So, you’re watching YouTube, you’re reading all these books. So you obviously were bit by the real estate bug early on, right, Dedric? You said that you went from … You bought a rental property 27, now it’s eight years later, you’re still thinking about it. You’re still reading. It’s still in the back of your mind, right?

Dedric Polite: Yeah. Yeah. I reached that point there when I was 21. I house-hacked my first rental property at, I think it was like 26, 27. I bought a triplex where I was living in Boston, had a corporate job. It was 2007. I got 100% financing on a triplex because I read a book, How to Buy Houses with No Money Down and Get Cash Back and Close It. I did exactly what it said in the book. My lawyer told me it wasn’t possible to get a check back at closing. The mortgage broker, everybody told me it wasn’t possible, but I got a check back for $1200 bucks when I closed on that triplex. Lived in one unit, rented out the other two, and it paid for my mortgage. I still own that property to this day. It has a ton of equity, great cashflow, but that was my first investment in real estate, but then I didn’t do anything for like eight to ten years until now and I’m fully into it.

Brent Daniels: That’s because Krystal was like, “Hey, we’re getting into this.”

Krystal Polite: Right. We kind of started a little earlier when we first met and we got into the whole Airbnb thing.

Dedric Polite: Yeah, Airbnb, yeah.

Krystal Polite: So, we got into that and it kind of gave us a bug, like, “Hmm, we made a ton of money in like three months, just Airbnbing my apartment out,” so.

Dedric Polite: This is when we first started dating. We’ve known each other 10 years and we were just dating. I got laid off from my sales job selling software because I was sucking wind at that time and got fired. I was walking around the house moping and kind of depressed and she really kind of kicked me in the rear and was like, “Listen, you can’t walk around here depressed because you got fired. You’re worth more than that. That job lost you. You didn’t lose them.” She really said, “Hey, now’s the time to follow your entrepreneurial dreams. Follow your passions.” I had heard about Airbnb. This is in 2012. I heard about it from a coworker who was like, “Hey, every weekend I go to New York, I rent my apartment out on this website called Airbnb and it pays for my trip.” I was like, “Airbnb. What’s that all about?” So, she was always over at my house and her apartment was sitting vacant, so I said, “Hey, let’s rent out your house on Airbnb.” She was like, “Can we make some money doing it?” I was like, “Yeah.” She was like, “Well, hold on. My brother’s staying there, but let me make a phone call, a couple phone calls.” Next thing you know, we were renting our house out on Airbnb.

Brent Daniels: Awesome. Awesome. Then, from there, it just progressed to you guys going out there and finding deals that you would wholesale.

Krystal Polite: Absolutely. It started with him telling me about this Nassar, Nassar. Then he went to Max Maxwell. So, then I started looking up on both of them and then I started doing research outside of that on my own and then I found-

Dedric Polite: Mark Whitman.

Krystal Polite: Mark Whitman.

Dedric Polite: Out of Baltimore.

Krystal Polite: Out of Baltimore. I started really following him. Then I went back to him and I was like, “Hey, we may have something with this wholesaling thing.”

Dedric Polite: We had another business at the time.

Krystal Polite: Right.

Dedric Polite: We had bought a franchise, so we’re serial entrepreneurs. We were running [crosstalk 00:08:56].

Krystal Polite: We were running three locations virtually at-

Brent Daniels: What was the franchise?

Krystal Polite: It was called Zoofari Animal Rides. So, if you ever went to the local mall and saw these little scooters where kids get to ride around on these scooters throughout the mall, well, we owned three locations, in New Hampshire-

Dedric Polite: [crosstalk 00:09:14] states, we had about 13 employees. Mind you, we both still had our jobs, so we had people working the kiosk for us remotely, so we were earning passive income from the franchise.

Krystal Polite: We had cameras at every location that came straight to our computer, straight to our phone, so we knew what was going on at all times. We were actually thinking at one point to scale that, because we ended up getting into the one mall that no one could get into, these animal rides couldn’t get into, which was …

Dedric Polite: Simon.

Krystal Polite: Simon malls. So, no Simon malls allowed these scooters into their malls. They had heard such amazing things about how we ran our operation from the GGP malls, it was like, “Hey, listen. We’re going to give you guys a shot. You can be the first ones. If this works out, you’ll get to go into-”

Dedric Polite: Other malls.

Krystal Polite: “Any one of our 200 other locations.” So, we ended up getting into it. Everything was great. Then I told my husband, “I think we should sell.” He was like, “What? Are you crazy?” I was like, “Yeah, let’s sell. It’s time to get out. Let’s sell this out and roll this all into real estate.” He was like, “All right, if that’s what you think we should do.” Literally, that’s what we did and we started our education-

Dedric Polite: Yeah, we sold that business October 2017 for 2X what we paid for it.

Brent Daniels: Awesome.

Dedric Polite: And then we [inaudible 00:10:27] investing in real estate.

Brent Daniels: So, investing in real estate meaning you were actually putting the money into real estate or were you investing in your business through spending it on marketing or the operating expenses or whatever? Tell me, where does that money go? What did you do with that money?

Dedric Polite: Oh, the latter. We were investing in our education. [crosstalk 00:10:45].

Brent Daniels: [crosstalk 00:10:45].

Dedric Polite: It took us over a year and a half to close our first deal, but we invested thousands in a master mind. We invested in going to the REI black book bootcamp because we needed to learn how to talk to sellers, how to talk to people.

Brent Daniels: Yeah.

Dedric Polite: Our mentor told us, “Listen, you guys, you’re not ready for fix and flip.” We didn’t have the capital, to be honest, to do fix and flip when we first got into it. She was like, “You need to learn how to market to find motivated sellers.” So, she sent us to that black book. We started learning marketing. October 2017, we joined a Master Mind, so we got around all these other full-time, data professors who were doing it on a high level, so we had no choice but to raise our game. We’d already invested tens of thousands of dollars. Then, that’s where a lot of the initial investment, the first year, year and a half, went into our education, our mindset, and associating around other successful investors.

Krystal Polite: Then we started to get our systems and processes in place at the same time. So, we were getting our CRM systems. We were getting the software to our marketing systems.

Dedric Polite: We were hiring consultants.

Krystal Polite: Hiring consultants to teach us specific niches that we were more interested in.

Dedric Polite: Cold calling, direct mail.

Krystal Polite: We did cold calling, direct mail, things of that nature-

Dedric Polite: [crosstalk 00:11:52].

Krystal Polite: So that’s what we were literally doing a lot of the time when we first initially got started.

Brent Daniels: Awesome. I think that it was really important there, something that you said, that your mentor said, “Hey, you guys aren’t ready for fix and flipping. You need to go source deals,” which I think everybody that’s getting into real estate, I don’t care if you’ve got a budget of a million dollars or whatever, if you can master the art of sourcing opportunities, you will win. That is the cornerstone. That is the foundation of this business, because then you are in the driver’s seat for whatever. I don’t care if you want to wholesale it, flip it, or hold it. It doesn’t matter. If you can source it, you get the biggest profits.

Krystal Polite: Exactly.

Dedric Polite: Absolutely. Brent, you-

Brent Daniels: Yeah, what a smart, awesome mentor you have out there. That’s incredible. So, then from there, okay, so now you get out there, you’re putting all your systems in place. Are you taking action as you go along? When was the first time you guys went out and actually talked to a distressed property owner? You know what I mean? You actually went out there? It wasn’t a realtor. It wasn’t anybody, it was just a real, distressed property owner. Do you remember that?

Dedric Polite: Yeah, we were talking to people. I got a lead from a cousin who was in Alabama. The cousin was like, “Hey, I have someone who wants to sell their house.” I talked to her. I got the property on the contract. Almost got it to close, and the seller ended up getting cold feet.

Brent Daniels: Yeah.

Dedric Polite: You know?

Brent Daniels: Yeah.

Dedric Polite: It was a phone deal. She was like, “I never met you. I don’t know who you are.” At the last minute, she backed out. I was like, “Man, this close to closing our first deal and she backed out.” Again, I wanted to quit at that point, but I was like, “All right, we got too much money invested in our education. We got to close some deals and recoup some of this investment” and we kept going.

Krystal Polite: But then it also told me … I told him, I was like, “Well, listen. We actually got someone. We actually know it works. People will sell us their home, so we just got to close it now.” It made me think, where at first I was a little skeptical, like, “Mm, how are these people really going to just sell us their house for pennies on the dollars?” But when he actually got ahold of her and she was really will … We got all the way almost to the finish line and she was just like, “No, I’m just not going to go ahead and sell it,” I was like, “Okay, well, now I know that the method works,” so we got to keep going.

Brent Daniels: Yeah. Oh, 100%. It’s an amazing thing when you’re actually there for the first dozen times you’re in front of these property owners and you’re talking numbers with them and they’re like, “Yeah, that sounds pretty good” and you’re like, “What? This is crazy. Oh my gosh, this is actually … ” That’s the whole thing, right? That’s the tricky take from the bridge you cross from belief to it being a fact, right? It’s so important to go through, but when you’re new at it and it’s new and you’re thinking to yourself that everybody wants to get the most money for their properties, it’s not always true. People will trade equity for speed and convenience every day of the week.

Krystal Polite: Yep.

Dedric Polite: Yes.

Krystal Polite: Absolutely.

Brent Daniels: So, it’s a wonderful opportunity. Wholesaling’s the best. It’s a cash machine.

Krystal Polite: It is.

Brent Daniels: So tell me about the first deal that you did wholesaling.

Dedric Polite: The first deal, my wife actually found it on Facebook Marketplace. She was like, “Hey, we need to contact this seller. It’s for sale by owner. They may be motivated.” I called the seller. I made contact. I had conversations with them. I think they wanted $70,000 originally. The property’s worth about $100 to $120. I offered $40. They said no. Well, what I did was I kept them on a follow-up rotation, so I kept a good rapport with the seller. They’d inherited the property. Didn’t want it. It was vacant. Every 30 days, I would follow up with this seller. I’d say, “Hey, Angie, this is Dedric Polite, Polite Properties. I understand you didn’t want to sell at a price that didn’t make sense. I’m just checking.” So every month I’d call her. By the third or fourth month, she would expect the phone call. She’d be like, “Oh, hey, Dedric, how’s it going? I’m still not ready to sell at that price, but if you come up a little more, we can do something.” So, eight or nine months later, I finally got her down to $54,000. We got her the contract, and we ended up selling it to a cash buyer for $65,000, so we made $11,000 profit our first deal.

Brent Daniels: Awesome. Awesome. That is incredible. So, real quick, just to recap, you saw a number, a phone number and an address online and the next thing you did is you actually called them.

Dedric Polite: Picked up the phone.

Krystal Polite: Yep.

Brent Daniels: No hesitation?

Krystal Polite: [crosstalk 00:16:14].

Dedric Polite: [crosstalk 00:16:14].

Brent Daniels: No hesitation? You just picked up … Did it take you a while? Were you scared to call them? Were you nervous or did you just do it?

Dedric Polite: I have a background in sales, so I’ve made thousands of cold, warm calls. I’ve been hung up. I do sales as what I do, so I’ll call anybody. I’ll call Donald Trump. I’ll call Vladimir Putin. I’ll talk to anybody on the phone. It doesn’t scare me.

Brent Daniels: See, that’s the thing-

Krystal Polite: I was the opposite, so I was very afraid of talking to people.

Brent Daniels: Sure.

Krystal Polite: It was more so, kind of what you had spoke about. It was more so like, what are they going to say? I was trying to imagine what they were going to say before I ever heard what they were going to say to me. I-

Brent Daniels: Yeah, you’ll hallucinate.

Krystal Polite: Yes. That’s literally what I was doing, so it literally made me want to gag, thinking about calling someone. I had anxiety. So, what I did is I sat down with my husband and I role-played for me to get comfortable, just to talk to people. He was like, “Babe, you’re a natural salesperson, what are you talking about?” I’m like, “If you don’t call it sales, I’m okay with it, but the moment you tell me that’s what I’m doing, I freeze up and I don’t want no part of it.”

Brent Daniels: Yeah, that’s why we call it TTP. That’s why we call it talking to people. That’s all it comes down to, but like Dedric was saying, and this is something that I’m trying to get through to all of my students in the TTP program is you need … Most of them are being too smart. They’re overthinking. You need to take action right now.

Krystal Polite: Yes.

Brent Daniels: I don’t care if you don’t know what to say. I don’t care if you don’t say anything. Just pick up the phone and let it dial and let somebody pick up, because I’m telling you, when you build that muscle, when you build that into the way that you work. If something’s on my desk, I call it. If something’s on my … Anybody in my team, if there’s a lead, they don’t even … They don’t talk to anybody. They just boom, boom, boom. Most people just want human connection. They want a contact. They want to hear a voice.

Krystal Polite: Yes.

Brent Daniels: You know what I mean? Even if you don’t know exactly what to say, you can figure that out. That can be taught, but the part of just taking that action right now, like you were saying, “I’m a sales guy, I do this thousands of times. I’ll call anybody.” That’s how it should be. We’re just all humans. We’re just human-to-humans. We’re just talking to each other, right? There’s nothing scary. They’re not going to come through the phone and steal your eyes or something. You know what I mean? So anyway, so, what did you make on that deal?

Dedric Polite: $11,000.

Brent Daniels: Whoo. Off of one cold call, baby.

Dedric Polite: [inaudible 00:18:51], so our third deal, less than two months later, we made $105 grand on a virtual wholesale deal.

Brent Daniels: Excuse me? How much?

Dedric Polite: $105,000 on a virtual wholesale deal.

Brent Daniels: Okay, so I think I rang the bell a little bit premature, but that’s all right. A victory’s a victory.

Dedric Polite: You need a bigger bell.

Brent Daniels: Yeah, I need to get a liberty bell or something. How did that happen? Okay, what happened there?

Dedric Polite: [crosstalk 00:19:19]-

Krystal Polite: So, I had just started taking over our marketing. I started playing with our software to pull a list and pulling lists. So, I pulled a really super, super, super filtered list of 79 names. I took those 79 names and I inputted it into a deal machine. I pulled the pictures off of online, attached them to the postcards, sent them out. The wife of the owner called back and said, “Hey, we have a property. You sent us a postcard. We’re looking to sell.” So, that was the very first call I had actually taken.

Brent Daniels: Bingo. Oh.

Krystal Polite: Right, so I was shaking. My hands were shaking. I was started to sweat. I was like, “Oh, great.” It’s kind of like you said. Everything will just start to come to you as you’re talking. That’s literally what happened. Everything started to come to me, like, “Hey, how much do you want for it? Is it occupied, vacant?” So I got all the information, hung up the phone. I had to breathe. My husband was like, “Breathe.”

Dedric Polite: She almost passed out from hyperventilating.

Krystal Polite: Breathe. He was like, “Just breathe.”

Dedric Polite: “I talked to a seller.”

Krystal Polite: He was like, “See? It was okay.” I said, “Yeah, it’s fine. Everything went great. I gave them the information.” He was like, “Okay,” he was a little bit nonchalant at first. He was like, “Oh, okay.” He was like, “So, where’s the address at?” I said, “It’s in Boston.” He was like, “Okay.” He typed in the address into Google. All of a sudden, he turns around and he’s like, “Do you know where this property is?” I said, “No.” He was like, “This is in the red zone.” I’m like, “Okay, where?”

Brent Daniels: What’s the red zone? Yeah.

Krystal Polite: Right, so he was like, “Yo, get her back on the phone.” I’m like, “Well, she said she’ll have him call me back.” “When? When did she say that?” He was like, “Call her back.” “She said [inaudible 00:21:14] call him back.” “Well I’m calling them tomorrow if we don’t hear from him.” That’s exactly what he did. He called them the next day. The next day. This was a process because this guy was already rich. He lived in New Jersey.

Dedric Polite: Yeah, he had a brownstone in New York. Retired software executive, inherited a property in the ’80s in Boston, triplex. Hadn’t been there in decades. He didn’t even know if there was tenants in it and if he was getting rent. he was already a millionaire from what I researched on him. He was just like, “Hey, give me a half a million for the house it’s yours. I don’t have a mortgage on it. I don’t even know who’s in there. May be squatters in there.” So I started like $375. He wanted a half a million, but the ARB … So this is a three unit triplex in Boston, in Dorchester, which is a super high area. The ARB on these triplexes, as a condo conversion, when you renovate each floor, you can sell it for half a million per floor.

Brent Daniels: Yeah. Yeah.

Dedric Polite: They are 1.5 million [crosstalk 00:22:08].

Brent Daniels: Yeah.

Dedric Polite: Thousand, so this was virtual. We’re in North Carolina. The property’s in Boston. The seller’s in Jersey, so we finally negotiate over a couple months, back and forth. We get him to $475, so I lock it up with the $475. I get myself 90 days to close because there were squatters in the property. We couldn’t even get into the property to take a look at it. We didn’t know if there was termites or falling apart, but we knew where it was at. Sent it out to some cash buyers that we knew from Boston. We ended up finding a cash buyer to pay $585, so we got a … We double closed it, made $105,000 wholesale fee on that.

Krystal Polite: Our acquisitions manager in Boston made $10,000.

Brent Daniels: Nice.

Dedric Polite: [crosstalk 00:22:46].

Krystal Polite: And he made $10,000 and the only thing he did was he went to the house to see if he could gain access.

Brent Daniels: Yeah.

Krystal Polite: No one came to the door. He left and he got a check for $10,000.

Dedric Polite: Gave him 10%.

Krystal Polite: Literally. [crosstalk 00:23:03].

Dedric Polite: [crosstalk 00:23:03].

Krystal Polite: Just because [crosstalk 00:23:05].

Brent Daniels: You guys are very generous because … I mean, the owner doesn’t even live there. You guys don’t live there. What do you need an acquisition manager for? Just send somebody from Craigslist to take pictures.

Dedric Polite: [crosstalk 00:23:16].

Krystal Polite: [crosstalk 00:23:16]. Look, and we learned from that one too. We was like, “We’re never doing that again.” So.

Brent Daniels: That’s really interesting. I’m telling you, I’ve been doing this with land, land that’s far or any deals that I have an hour or two away, I put a posting on Craigslist for somebody to take pictures and they go, take pictures, take videos, send it to me, $50 bucks.

Krystal Polite: Oh wow.

Brent Daniels: $50 bucks, because I mean …

Krystal Polite: [crosstalk 00:23:40].

Brent Daniels: And they’ve met homeowners. They’re like, “Yeah, I’m just here to take pictures.” You know what I mean? It’s been awesome, really awesome.

Krystal Polite: Yes, literally that’s what we do now is we call people that we know. We say, “Hey, listen, we’ll pay you $50, $100 to go take some pictures.” They’re like, “Oh, okay. No problem.”

Brent Daniels: Yeah, if you post to Craigslist at different areas, you’re going to find somebody you really like, that’s really responsive, that’s either … You know, whatever, retired, in college, whatever, and then you just send them out there every time you get a deal. They take pictures and, oh, life’s good. I love it.

Krystal Polite: Right.

Brent Daniels: So what’d you net net on that? What went into your guys’ personal accounts?

Dedric Polite: We netted, after paying the lawyer fees and everything, probably around $90, $95k, something like that.

Brent Daniels: Whoo.

Dedric Polite: So now we’re officially cash buyers. We’re no longer wholesalers now. We’re taking stuff now. One deal like that guy’s could change your life.

Brent Daniels: Well, and that’s exactly it and that’s something that I mentioned at the talk that we had in St. Louis. Once you do … I want people on this podcast, and I want everybody in my program and I want everybody listening or whatever, you got to get a deal that’s over $50,000 as soon as you can. Get a $50,000 deal because the chemistry in your brain changes forever. All this [crosstalk 00:24:58], that confidence comes. All of a sudden, the worries go away. All of a sudden, you make more than you ever thought you would see in one opportunity that easily. All of a sudden, you can start doing it again and again and again and again and again. Then, all of a sudden, you start buying assets. All of a sudden, with those assets, you get passive cashflow and then you’re living the life, doing whatever the hell you want. It’s unbelievable, right? But it starts with changing that, what’s going on in your brain for sure.

Krystal Polite: Yep. That’s it.

Brent Daniels: So talk to me about your guys’ mindset. Talk to me about you guys … Krystal, you said you’re a serial entrepreneur that, once you get onto it, it’s going. There’s no other option.

Krystal Polite: Right. So, I’ve had my own business since I was 18 years old. I’ve always, even when I was working for someone else or working in corporate America, I’ve always had a business on the side. I’ve always been working towards a business. So, when I met him, it was more so I needed to make sure we clicked mentally, on a long-term level, more so than just physical.

Dedric Polite: We know there was physical connection.

Krystal Polite: Right. I needed to make sure that [crosstalk 00:26:13] in the same direction as me. Right.

Dedric Polite: Yeah, which is partnership.

Krystal Polite: Nothing wrong with marrying an employee, but you got to understand, that’s who you’re marrying is an employee. So, I can’t marry an employee and then get mad that he’s not an entrepreneur a year in. So, I knew I had … When we had our first business meeting date and we were interviewing each other-

Dedric Polite: It was an interview.

Krystal Polite: Literally.

Dedric Polite: It was a date, but it was like an interview.

Krystal Polite: It was, first of all, hey, what I asked was, “What’s your five year goals? What’s your ten year goals? Do you plan on living here forever? What type of business do you want to own?” Not do you want to own a business, what type of business do you want to own? There’s a difference in how you present that question to people. That’s when he started spilling his background on what he does and how he’s an entrepreneur and he loves being the … So, we connected on just being entrepreneurs, so I knew if he’s an entrepreneur, that’s all I needed. We literally took it from there. Once our mindsets were clicking-

Dedric Polite: Yeah, our goals were aligned. So, she’s a visionary. I’m the integrator in our relationship. So she’s the type to see an idea or see a vacant lot and her mind automatically sees it as its full potential, the ARB of that. So she’ll see a restaurant in our area. She’ll be like, “Well, if that was a seafood restaurant, the line would be around the corner.” Six months later, they’ve converted to a seafood restaurant and they got a line around the corner. I’m like, “How did you do that?” She’s a visionary. Her creativity is just amazing. I’m the integrator, so as she’s explaining her ideas or her ambitions to me, my mind automatically goes to how do we execute this? Who do I need to call? What connections do I need to pull in? So it just works perfectly together.

Krystal Polite: Which is why we got into land development. I don’t say this is for every new investor and things of that nature, but we were maybe three or four months in and we were buying land. New investors and we’re purchasing land.

Dedric Polite: [crosstalk 00:28:18].

Krystal Polite: I mean, tons of land. People are like, “What are you doing? Wholesalers don’t do that.” One, we’re not wholesalers.

Dedric Polite: Yeah. We’re investors.

Krystal Polite: People can’t see the value in that right now, whereas we just started and I was like, “Oh, no, we need this land.” I’m literally marketing to just land owners.

Brent Daniels: I love it.

Krystal Polite: Because of the vision that I see.

Dedric Polite: I would ask her, like, “There’s no house on it. It’s not going to produce any income. Why do we want this?” She’s like, “I can see a subdivision. I can see Politeville being here. I can see apartment complexes.”

Krystal Polite: Some of the land that we got now under contract, I saw it way ahead of time and now it’s major development going on right there.

Brent Daniels: Yep. Oh, land’s so exciting. I absolutely love it, especially land that’s in town, right?

Krystal Polite: Yes.

Brent Daniels: That’s where you get your biggest profits. So, right, there’s three types of land. There’s in-town, there’s stuff that’s on the bubble of town, right? Kind of 45 minutes.

Krystal Polite: Yep.

Brent Daniels: And then there’s raw land.

Krystal Polite: Raw land.

Brent Daniels: We’re not talking about raw land in the middle of nowhere, we’re talking about in-town. That’s where the big money is made. I’m telling you people, if you’re listening to this, there is so much potential in vacant properties.

Krystal Polite: Yes.

Brent Daniels: Even if you want to wholesale it, now they’re taking it down for the long-term, but even if you want to wholesale it to people, we’ve made huge amounts off of raw land. It’s … I mean, off of vacant land. It is really, really exciting, but I want to touch on something real quick. I want to pull it back real quick, because there’s two books that you guys were talking that flashed in my mind as you guys were talking. One is the Cashflow Quadrant by Robert Kiyosaki. In that, in talks about the four type of personalities or four type … Not necessarily personality, but roles that you can have when it comes to work, right? You can have be an employee, right? You can be self-employed, like a dentist or an attorney or a doctor or something like that. You can be a business owner, right? This is where you own the business. You’re not operating it as an employee, and then there’s an investor. That’s the four quadrants. Check it out. It’ll do a billion times better explanation than I just did.
Then the second book you talked about that popped into my mind was Traction, which talks about there being a visionary and an integrator and being able to … I think that that is absolutely critical. When it comes to any kind of partnership, there has to be somebody that’s the integrator and somebody that is the visionary. If you try to do both, if the integrator is saying, “I do all the work, visionary. You’re lazy. You don’t do anything. You just come up with ideas and do whatever,” if you start getting that bitterness, that friction, that partnership’s not going to work.

Krystal Polite: [crosstalk 00:30:59].

Dedric Polite: [crosstalk 00:30:59].

Brent Daniels: That integrator’s always going to be looking over their shoulder at the visionary and being like, “Oh, no, no, no, no, no. I’m producing all the income. I’m getting all the deals. I’m doing all these things.” It’s going to get bitterness. It’s going to be gross and it’s going to turn into a disaster. So, just watch that carefully. So, it sounds like, to you guys, you guys like … I mean, it sounds like you love that Krystal is the visionary and you’re just out there doing what you do, what you love.

Dedric Polite: Absolutely.

Brent Daniels: Yeah. It’s huge.

Krystal Polite: It takes the pressure off of you. I love being the visionary. I love that I married an integrator because it takes pressure off me knowing that someone else has my back. I don’t say we ever have any weaknesses, but that’s just not my strength. We don’t step on each other’s toes. He lets me be who I am. I let him be who he is. If someone comes at me with something that I know is an integrator question or issue, I say, “Hey, listen, you want to talk to my husband in regards to that. I don’t handle that part of it,” and he does the same. So, we complement each other like yin and yang.

Brent Daniels: Love it. Love it. Absolutely. Now, you guys, let’s get into some meat and potatoes on sourcing deals. You guys have been literally rewriting the code that goes into deal machine app, the Driving for Dollars app that is, in my opinion, the absolute best on the market deal machine, but you guys have really … You took deal machine and just supercharged it, right? You’ve been slicing up and Davis should be paying you royalties at this point, right?

Krystal Polite: [inaudible 00:32:40].

Dedric Polite: [crosstalk 00:32:40].

Krystal Polite: That’s what we [crosstalk 00:32:44].

Brent Daniels: So tell me, how do you get deals from Driving for Dollars?

Dedric Polite: Oh my goodness, so this is the VP [inaudible 00:32:53] generation. Like you said, she has hacked deal machine. She’s used this app in ways they have never imagined it would be used. Deal machine’s actually added those features and functionality in, based off of how Krystal has used deal machine. We just hit out one year anniversary using deal machine.

Krystal Polite: April 4th.

Dedric Polite: It’s amazing the amount of land, mobile home complexes, and partnered builder houses we’ve been able to wholesale and take down using deal machine. Talk a little bit about how you use it?

Krystal Polite: I use it every way possible. Because we were afraid to get into direct mail marketing, we were afraid to get into it because we didn’t know how. Everyone kept saying, every time we go somewhere, they say, “Oh, you need 40, 50 thousand a month.

Dedric Polite: Mailers.

Krystal Polite: Mailers going out. You need-

Dedric Polite: You know those big guys from Arizona and L.A., like, “Oh, I send out 40,000 a month. Our pledge is 50,000.”

Brent Daniels: That’s right.

Dedric Polite: We’re like, “Look, we don’t have that type of budget,” so [crosstalk 00:33:50]-

Krystal Polite: Right.

Dedric Polite: We’re like, we consider buying 50 to 100 a month, not 40,000.

Krystal Polite: Right. Once I found the app, my husband was like, “No, no, it’s just going to be like everything else.” I said, “Okay, great, we’re using it.” So, I downloaded it and I started using it. He had no idea. I just started using it. He didn’t know. At that point, I was like, “Hey, slow down, every time we were driving. Slow down, let me get this house. Let me get this house. Let me get this house. Let me get this house.”

Dedric Polite: I’m like, “What are you doing?”

Krystal Polite: All of a sudden, I fired my boss June 8th. I kind of took … As a wife and a mother, you don’t really take a break, but I said, “Give me one week to just digress and not have to really do anything. I’ve been working for seven years. Let me just take a minute.” So I took one week, came back into the business, and we had three contracts. He was like, “Man, this cold calling … ” because we were doing cold calling.

Dedric Polite: Yeah.

Krystal Polite: And that was like our number one. He, you know, “This cold calling is really taking off.” I was like, “Uh, no, those are deal machine leads.” He was like, “Deal machine? What’s that?” I’m like, “The app that I’m using.” He was like, “What’s that app?” He looked at the app and he was like, “Well, how are you using this?” So I broke it down to him. It was more so like I needed it to fit what my vision was for us. I tailored it to certain areas. I learned and studied the demographics in our area and I tailored my marketing to the demographics in our area. I knew I wanted us to take down land. Everybody else, including him, thought I was crazy. I said, “Nope, we got to own as much land as possible in this city.”

Dedric Polite: I’m [crosstalk 00:35:35] land

Krystal Polite: So, I started putting land into deal machine. Deal machine is not equipped to really put land into it, so I kept playing with it.

Dedric Polite: She would take pictures of trees, of the woods.

Krystal Polite: People don’t know [inaudible 00:35:50] land, you know. So I’d take random pictures and put it in, but deal machine wasn’t set up for it, so I just to find a little hack in order to get the land in there to get the address to take, to get the mailing address to take, as well as the shipping address. Once I got the first one in, I was like off and running to the races. Then I started tailoring it to other marketing that I wanted to specifically target. I wanted us to have … We had started learning a lot about mobile home parks. I said, “You know what? Let me do some reverse engineering, find out these mobile home park owners directly,” and I started inputting them. Well, a lot of mobile home park owners, some of them actually live in their mobile home parks.

Brent Daniels: Sure.

Krystal Polite: [inaudible 00:36:39], but you can’t put … You know how mobile home parks have those weird numbers. They don’t have …

Dedric Polite: Lot numbers.

Krystal Polite: A lot number. They have addresses. So, I had to pull, do some research to get the actual mailing addresses to these individuals. Then, the ones who didn’t and they had the lot numbers, I did some real funky reverse engineering to get physical addresses for them that the city would say, “Hey, this is their physical address, but this is their lot number.” So, I had to start to get their physical addresses that would be considered the lot number. I put that into deal machine. So, I just started tailoring it to work for how I needed it to work for. Then, in the process, I built out a deal finder program and I started with my mother. I had her driving for us first.

Brent Daniels: Yeah.

Dedric Polite: She’s retired.

Krystal Polite: I worked out all our kinks with her. She’s retired. That’s all … She had time. She was like, “Hey, not a problem.” She gets to drive, make some extra cash. I worked out all of our best practices through her before I said, “Hey, let me take on 80 million deal finders.” I worked out our entire system with her and then we started to expand to other individuals.

Brent Daniels: Love it.

Krystal Polite: Created a private Facebook page where we can communicate with them.

Dedric Polite: [crosstalk 00:37:54] deal finders.

Krystal Polite: Just for our deal finders.

Brent Daniels: Are they all on your deal machine account?

Krystal Polite: Yes.

Brent Daniels: They’re all linked.

Krystal Polite: All of them are linked.

Dedric Polite: [crosstalk 00:38:03].

Brent Daniels: [crosstalk 00:38:03] property do you have?

Krystal Polite: Right now we probably have about 45, 50.

Brent Daniels: Come on.

Dedric Polite: All over the U.S.

Krystal Polite: All over the U.S.

Brent Daniels: What are you paying them?

Dedric Polite: So we get leads from Baltimore, from Cincinnati, places we’ve never even been, but because we have deal finders in these cities, we’ll get a lead and we’ll be like, “Yeah, we’ll buy it.”

Krystal Polite: Yeah, and we will … What I tell people, though, is if it’s in a different state … So we have property in Cleveland. For us to buy and hold it, it has to be a multifamily. So if you find anyone out there, if you’re looking and you want to be a part of Be Polite Properties, if you’re just looking for properties, if it’s a multifamily, definitely send it our way if it’s in another state. That is what we’ll buy and hold. Anything else-

Brent Daniels: How do they send it to you?

Dedric Polite: Social media. Just look up Be Polite Properties on Facebook.

Krystal Polite: Right, and you’ll get all our information-

Dedric Polite: All our properties, and message us or inbox us on social media.

Krystal Polite: Yeah, somebody, one of our admins will get you our personal email address. Dependent on what you’re doing, what I will say is, please don’t sign up to be a deal finder and all you’re looking to do is for us to help you on your deals because that’s what we ended up having, people just like, “Hey, I want to be a deal finder.” Then, because they know they have access to us, if we want our deal finders to eventually graduate into wholesaling and to testing, buying, and selling, people will say, “Hey, I want to be a deal finder.” Great, sign up. The very next day they’ll email one of our admin, like, “Hey, could you send this deal to Mr. and Mrs. Polite for them to take a look at. I have like 10 days that I have to close on this or I have to … ”

Dedric Polite: Giving people ideas.

Krystal Polite: Take it down. I’m like, no, that’s what we’re getting now, so I’m like, “Oh my God, this is crazy.” So.

Dedric Polite: Tell him how we pay our deal finders.

Krystal Polite: How we pay them is we pay them two ways. We pay them a commission payout. Of course, 10%, 15%, and 20%, depending on what level you are with us. Then, we pay them per approved lead. So, just to give you an example, we had one of our deal finders, we paid out on the 30th. He made $586 for just approved leads.

Brent Daniels: Love it.

Dedric Polite: It’s $2 for a lead or a dollar per?

Krystal Polite: So, out of a … For a dollar per approved lead. If you’re in a hot market, we’ll give you $2. So if you’re in a Boston market, a Charlotte market, a Phoenix market, really competitive market where the spread is bigger, we’ll give you $2 per approved lead. An approved lead is just a lead that fits our buying criteria.

Brent Daniels: Got it.

Dedric Polite: [crosstalk 00:40:30].

Krystal Polite: That we actually send a mailer to. This is-

Brent Daniels: This is just a rundown house. This isn’t they’ve talked to the owner and they want an offer. This is just an address.

Krystal Polite: That’s it.

Dedric Polite: You don’t have to do anything. They just submit an address. We pay for the mailer. We talk to the seller. We negotiate.

Brent Daniels: I love it. $2 an address.

Krystal Polite: Yep.

Brent Daniels: Holy-

Krystal Polite: For an approved address.

Brent Daniels: Who approves it?

Krystal Polite: Well, we have a deal machine manager now who approves it. Before, I used to. I don’t-

Brent Daniels: [crosstalk 00:40:58] what’s the criteria? Just it has to be in X shape and have equity and that type of thing?

Dedric Polite: Yeah, like no mortgage, absentee owner, typical distress factors.

Krystal Polite: Or it’s the owner occupied. So, we do, in hot markets, one of the properties we just took down now is an owner occupied. Because I found it had no mortgage, owner occupied, she’s looking to sell. So, certain markets, we mail to basically everything, including corporate owned, including LLCs. Everything fits in a bucket unless it was just purchased within the last few years.

Brent Daniels: Right. Yeah. So you filter all that and say, “Hey, out of the 300 you sent in, 215 of those are cool. I’ll give you $430.”

Krystal Polite: There you go.

Dedric Polite: Right.

Brent Daniels: Wow. Okay. I like that. Then you just keep them on a mail drip.

Krystal Polite: Yep. That’s it.

Brent Daniels: Why don’t you [crosstalk 00:41:56]?

Krystal Polite: Literally, one of our deal finders … We do.

Dedric Polite: Oh, we do.

Krystal Polite: You know we talk to people.

Dedric Polite: So the ones that we don’t hear from from deal machine, we send them to our cold callers and then we start blasting them on the phone. We text message them.

Krystal Polite: Absolutely, while they’re still being mailed to.

Dedric Polite: We use a multi [crosstalk 00:42:11] approach.

Brent Daniels: I love this, guys. I absolutely love it. I think it’s incredible. I really do. It’s such a smart way to go. Here’s the thing. In competitive markets, I am telling you, San Diego, Phoenix, Seattle, Miami, New York, all these areas that are … Chicago, if you’re not driving for dollars, good luck.

Krystal Polite: Good luck.

Brent Daniels: Because there is people that have budgets of $100,000 a month and there’s probably 10 of them in your market and they will drown those sellers and absentee owners in direct mail, in text blasts, in voicemail blasts. You name it, right?

Krystal Polite: Yep.

Brent Daniels: It’s just crazy. So the only way that you can really get a foothold … Even if you’re just in a … If you’re in a smaller market, drive for dollars. Those people have to do something. They either have to sink a bunch of money into it, which they don’t have, or they have to sell it to a cash investor, because it’s too beat up. It’s genius.

Dedric Polite: Absolutely.

Krystal Polite: Best list hands down.

Brent Daniels: Hands down.

Krystal Polite: You get it. You said it before, listen, if you’re driving for dollars, Dedric said it at the conference. You’re driving for dollars, that’s the best list to have. Mailing on, say, deal machine, because that’s what we started with, it [inaudible 00:43:28] on the playing fields of those investors who are spending the hundred thousands of dollars because our list is a filtered list. It’s the best list to have. We’ve seen these houses firsthand. So, we’re making that same return, we’re just not spending the money that they are.

Brent Daniels: I love it. I love it, guys. Incredible. Now your business is just rock and rolling. Is that what you focus on, is just driving for dollars?

Krystal Polite: No. Our actual first legion is cold calling.

Brent Daniels: Nice.

Krystal Polite: So, we started with cold calling first and that’s still our number one.

Dedric Polite: We outsource it.

Krystal Polite: We outsource it.

Dedric Polite: Pass us the warm leads.

Krystal Polite: They pass us through our email. It actually goes right into our CRM system. Anyone that we don’t get cold calling, then we mail to them.

Brent Daniels: I love it. I love it. Well, of course I love it. I’m the talk to people guy, right?

Krystal Polite: Right.

Brent Daniels: We don’t call it cold calling. We just call it TTP or phone prospective. Sounds a little bit sexier, but I love it. You’re doing … The key to this whole business. The key to sourcing opportunities is just to have consistent, quality conversations we distressed property owners. That’s it. It’s that simple. So, if you’re able to do that on your time, on your schedule, it’s hugely powerful. So, to wrap this thing up, guys, because we are already at 45 minutes on this podcast. Tell people about … You’ve got some exciting things coming up. You’ve got some exciting ways that people can reach out to you and be in your world and understand this amazing system that you’re putting together for your drive for dollars training. So why don’t you tell us about that?

Dedric Polite: Yeah, so we’re actually going to be starting to record our course next week. We have our videographer coming in. It’s going to be the Polite method of how we drive for dollars and how we’ve exploded our business using driving for dollars and deal machine. In order to find out if you’re on the list, the early notification list, go to thepolitemethod.com, thepolitemethod. Brent, if you could post it below the show notes.

Brent Daniels: Yep.

Dedric Polite: [inaudible 00:45:30] at the dotcom, all you have to do is put in your name and email address. You’ll be first notified when we launch that course in the next 30 to 60 days.

Krystal Polite: You’ll also get our free ebook when you sign up, but that course should drop by June 8th of this year.

Brent Daniels: Awesome.

Krystal Polite: Our one year anniversary of firing my boss.

Brent Daniels: Nice.

Krystal Polite: We have a couple of conferences coming up, so we’ll be in Chicago for a real estate cruise July 14th. We’ll be down there. I will actually be in Miami. My husband will be joining me for a women’s conference, which is called Women in Real Estate Dominating, WIRED, in Miami, Florida, August 9th through 11th. So any women who are really interested in being in the room, in the middle of the conversation, surrounded by women who do this every day, definitely check that conference out. You can go to, I think it was wired.com or you can follow me on social media. You’ll see the information posted on my social media accounts as well. You can find us on all social media platforms under bepoliteproperties. It costs nothing to be polite.

Brent Daniels: That’s right.

Krystal Polite: That’s [inaudible 00:46:42].

Dedric Polite: Yes, sir.

Brent Daniels: I love it. I love it. Well, thank you guys so much. I think this episode is definitely going to be watched again and again and again and listened to again and again and again and I just really, really appreciate it. I’m really excited, guys. If you are in North Carolina, you got to look up these guys and you got to be around them. Wherever they’re at, find them, stalk them, whatever. No, I’m just kidding, but find them, be around them, and definitely, if you’re interested in exploding your business from a drive for dollars standpoint, which I highly recommend, make sure you guys go to their website, get stuff for that, and get that as soon as it comes out, in what, June 8th? Is that what you said?

Krystal Polite: June 8th. It’ll drop by June 8th.

Brent Daniels: June 8th, it is dropping. If you are interested in joining the most proactive group in real estate, it is the TTP program. Go to wholesalinginc.com/TTP. Go check it out. Look at all the testimonials. Look at everything that you get when you’re part of the program, and you get to work with me personally. I mentor you. I’d be so excited to work with you. Check it out. Set up a call. See if it is the right fit for you. If you are looking to get the driving for dollars app, the deal machine app, TTP is a discount code that you can use to get $9 off on that, so rock and roll with that. Again, thank you guys. You guys are the best. I’m really excited to-

Krystal Polite: No, you’re the best. Thank you for having us.

Brent Daniels: You bet. I’m excited for this and for your program to come out.

Krystal Polite: [crosstalk 00:48:12], we coming into Arizona in July, so we coming in house [crosstalk 00:48:16] you.

Dedric Polite: We coming in your office.

Brent Daniels: Good. Perfect. Come stalk me, I love it. All right, guys, until next time. See you.

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