Posted on: May 30, 2019
WI 277 | Thriving Wholesaler

 

Have you been running a business that takes so much from you yet yields very little revenue? About time you get into wholesaling! If you aren’t fully sold out on the idea yet, the heartwarming wholesaling journey of today’s guests should be enough to convince you to give wholesaling a try!

Bill Lookabaugh is a new Rhino from Sisters, Oregon. After experiencing entrepreneurial burnout, he decided to join the police force. While training at the police academy, he listened to podcasts while driving and discovered wholesaling by chance. Like most people, Bill didn’t think wholesaling was a real possibility until he closed his first-ever deal and earned close to $20,000 in assignment fees. What’s even more mind-blowing? He only spent a total of 6 hours working on the deal!

If you think wholesaling is not possible for you and can’t make it happen, today’s episode is what you need to hear precisely! Bill’s inspiring wholesaling journey will give you a glimpse into the many amazing ways wholesaling can change your life and why it is one of the most lucrative avenues to achieve financial freedom today!

 

RESOURCES:

From Burnt Out Solopreneur To Thriving Wholesaler With Bill Lookabaugh

Episode Transcription

This episode is brought to you by Audible. Get a free audiobook, download, and a 30-day free trial at www.AudibleTrial.com/wholesalinginc. With over 180,000 titles to choose from for your iPhone, your Android, your Kindle or your MP3 player if you still use one. It’s a no-brainer. To take advantage of this special offer, go to that website and download your free audiobook.

I am absolutely thrilled to be coming to this podcast because we are going to have an unbelievable amount of value to provide. Before we do this, I want to give you a tip. I want to give you some homework to do right off the bat of this show because I believe instruction is more important than education and entertainment.

I talked about it a lot on this show because instruction is what you are looking for when you are reading this. People read it, they go out to get deals going, join the Rhino Tribe, and then they explode their business. This instruction, right off the bat, is something that helped me understand why I had the goals that I had and what I needed to focus on to accomplish those goals. It is something that you could google.

Google 7 Levels Deep. This is an exercise where you ask yourself why you want a goal seven times. It is an unbelievable exercise. Most people get a little bit uncomfortable at five, and then they start peeling back the layers because everybody goes into it and talks about their why and they want to provide a legacy for their family. They want to provide opportunity and all these things. This brings me to the interview because I’ve got a phenomenal professional wholesaler out of Sisters, Oregon.

If you’ve never heard of Sisters, Oregon, nobody has heard of Sisters, Oregon, because besides Bill and 1,000 other people, nobody else knows about it. He’s coming out of a small market but it’s surrounded by big markets. He’s a gentleman who has an unbelievable story to tell and an unbelievable wholesaling journey. He’s a lifelong entrepreneur, if you will, that has taken his time to figure out the right vehicle for him and his family, and he’s going to get into that. Without further ado, I would like to introduce Mr. Bill Lookabaugh. How are you?

Good. Thanks, Brent.

Bill, tell us about you. Let’s go all the way back. I introduced you as an entrepreneur. What started your journey as an entrepreneur, and how did you find wholesaling?

I grew up in business. My dad and grandpa were business owners, so it was natural for me to want to do my own thing. I joined the military right out of high school. When I got out of there, I realized that I didn’t want to work for anybody else, so I started doing something that I was passionate about. I started a window tinting business. I loved working on cars, and that grew into a large corporation where I was doing cars, tinting houses, and tinting commercial buildings but I was the solopreneur. I was doing everything on my own.

I was burning the candle at both ends. I didn’t have tons of time left. The money was okay but it was something that did not take me long to get burned out. After eighteen years of doing the same thing over and over again, I finally realized that I needed to change. This is something that I can’t do for the rest of my life. I turned 40, and at 39, just before that 40-year-old mark, I was thinking, “I need to make some changes.” I was listening to podcasts. I thought that I wanted to be a police officer, so I joined a police academy.

As I was going through that Academy for nine months back and forth, I would listen to podcasts in my car. In a lot of those podcasts, I started off with Grant Cardone. I got into some other ones, and then I found Wholesaling Inc, which I had never heard about wholesaling. I found that, and it blew my mind that that was a possibility to even do, so I joined in. I’m typically good at talking with people, which I enjoy. The readers of the show hear how you interact with people. They know your genuine nature. It stood out above and beyond the way that other people wholesale. I jumped in with both feet.

Did you jump into the Wholesaling Inc program?

No. Through those podcasts, I heard two other different wholesaling training. I started off with one. I went through that one and then I got into the other one. I went through that one, and it didn’t do anything with either of those. It was a ton of information. It confused me, Brent, to the point where I had all this knowledge in my brain, and I didn’t have any idea where to go because it was like, “You could do this. You could do that. You could maybe do this method and a little bit of all of those,” but none of them specifically said, “Here’s what you do and this is what you do after that.”

Instruction is more important than education.

Through reading those episodes through Wholesaling Inc, I realized that this was a decision that I needed to make. The difference was immediate. Through the first two programs, I had twelve cash buyers at the end of those and they were like, “You only need 4 or 5.” Listening to you, Cody, and Tom, through driving back and forth to the academy, I’m like, “This is a no-brainer.” Being proactive instead of sticking out one bandit sign and hoping and praying versus talking on the phone with somebody about it became a no-brainer for me.

When did you join the TTP Program?

I joined at the end of January and the beginning of February 2019.

Right off the bat, you were like a fish to water. It was natural to you. You are a combination of being an entrepreneur, doing customer service, talking to a lot of people, and understanding that as an entrepreneur, 80% of our life is on the phone. As a true business owner, it’s setting up things, organizing things, and making sure that all your people are in the right position. You are doing sales, customer service, and accounting.

You are doing all these things, so it’s always on the phone. From an entrepreneur standpoint, you already have the endurance to be able to get on the phone. You were going to be a police officer because you are a people person and want to serve the public. You already know how to communicate with people. With the combination of both, it went bananas.

Honestly, I was looking for a change. For the police officer thing, there was some excitement and some newness. Who doesn’t want to drive fast and carry a gun but the flip side of that is turning 40 and going, “I’ve done my own thing for eighteen years, and now I’m going to give up all of my nights, my weekends, and my holidays? I have zero control just because I’m unfulfilled with what I currently do.” When I hit 40, I looked at my wife and said, “I need to do something different.” That was when we both decided that the full-time police officer thing was probably not something that I needed to do.

It was perfect timing because it came on the back of you locking up some wholesale deals.

Had I not joined the police academy and had to drive an hour and a half for nine months every single week to that academy, I wouldn’t have been listening to podcasts. I had to figure out something to fill my time. I had finished the Police Academy, had my applications all over the place to get a full-time job, and by happenstance, I wholesaled my first deal.

It came in, and it was perfect. It was serendipitous that it fell right in that same window of time that you would have to either commit to the police or not, and you got that deal.

What opened my eyes was my first deal was $20,000, and it took me about six hours from start to finish. I started doing the math in my head, going, “With my current career that I have had for eighteen years, that takes me driving back and forth in different homes and doing work myself. It’s tying up probably two weeks’ worth of my time. As a police officer, it’s $3,500 a month.” That’s your take home. To make $20,000, I opened my eyes and I was like, “Why didn’t I do this sooner?”

Talk about that first deal because a lot of people who are reading are working on their first deal, thinking about this business or stumbled across it and hear you say, “$20,000 in six hours. What does that mean?” Break down those six hours for us? How did you source it? What was the list?

WI 277 | Thriving Wholesaler

Thriving Wholesaler: If you don’t do the work, you will not get the results.

 

This was just communicating with a realtor. One of the things that I was doing was trying to reach out to different realtors in my area, there was a podcast with a former Marine that lives in Sacramento. He uses realtors to his advantage, so I started doing the same thing. I talked to him on the phone. I sent out an email to a bunch of realtors. I got a few responses, and one of them ended up being with a guy with whom we had several phone conversations.

I told him what I was after, and he called me out of the blue one day. He’s like, “I’ve got the perfect setup for you. I have had this house listed for three months. It has fallen through 3 different times to 3 different buyers. I need this off of my plate.” She’s willing to take X amount of dollars for it to be done with it, and she was four payments behind. She was going to lose the home if it didn’t get gone. He was moving from one company to another company at the same time, so he’s like, “Take it from me. If you know what you are doing and you can make this work, take it from me.”

I talked to the owner of that house about 2 or 3 times. I got her down to a good number. We were at $175,000, $176,000 or something like that. I sent it out to the few cash buyers that I had, held an inspection, and got a couple of offers right there on the spot. I’m like, “Nope. They are all due within 24 hours.” I did exactly what you and Tom teach in the program. In the end, I had two of them that were tied for the top.

I call them both and I’m like, “You guys are at a dead tie. One of you needs to come up on your member or I’m going to roll the dice basically.” They both came up a little bit. One of them came up a little bit more. We are about $23,000 on that deal, and I gave the realtor back $3,000 for sending me that thing. He had some money in it. He did fixtures and stuff like that. He had worked hard on it. I’m like, “What do you want?” He was like, “I don’t know. Maybe $1,000?” I gave him $3,000. It was a great first deal for me. I will always remember it.

A couple of things there before I ring this victory bell, there are great takeaways here for everybody reading. One, you have to build a referral network of real estate agents in your market because there is a good portion of them that do not want to list rough houses. I will tell you why. This is from experience. I have been licensed since 2004 but I know that if they put it on the market at an aggressive price, they are going to have dozens of offers. It’s a lot of paperwork. It’s a lot of work. They don’t want to mess with it, plus most of the time, they’ve got to pay the agent on the other side.

Agents, if they want to get the full amount, what happens is agents split the commission with a buyer’s agent and with the listing agent, that’s the person representing the seller. When the listing agent can be both the buyer’s agent and the listing agent, they can get the full commission. That didn’t happen in this circumstance but whatever. I’m educating you too much. What I’m telling you and the instruction is to go out, talk, and get at least five referral agents in your database that will send you deals as they come across the rough ones that they don’t want to deal with.

The second thing that Bill did was beautiful. Did you understand what he did? He paid the agent triple what the guy or the agent wanted, and it’s for a reason. I’m sure the reason is that you want them to send you more referrals. You want him to know that you are more than fair. You want everybody to benefit when they work with you. When you do those types of things upfront, initially in a relationship or a professional relationship in the real estate industry, it carries weight forever. That is absolutely fantastic. What was net bottom line deposited into your bank account?

$19,986 and some change.

Not bad for a first deal.

I will remember that first deal forever.

Let’s talk about it now. Let’s talk about your business as you are growing it, and then let’s talk about how you are balancing, being an entrepreneur for so long, family life, and all these things. What are you doing? Tell me now. Obviously, you didn’t do just one deal and quit.

A professional relationship in the real estate industry carries weight forever.

I pound on the phone for a couple of hours a day. I have been doing that consistently. I’ve done three wholesale deals from TTP. They haven’t all been big, like $20,000 but I will take a $7,000 wholesale deal all day long. I’ve done three wholesale deals that equaled about another $30,000 in income. With the $30,000 and the $20,000 together, I’ve already matched half of my normal income that takes me all year to make in a few short months.

The best one, the one that I would like to talk to you about real quick, is this one that we closed on. It’s a wholetail deal, so it hasn’t sold yet but it was a TTP from the tax delinquent list. I reached out to her, and she was three years behind on taxes. I had a genuine conversation with her. I asked her if she was interested. She said yes. I made her an offer on the phone, and then something that Steven Lee talked to me about was sending them a written offer. I did that as well.

Three days later, she called me because I put an expiration date on the written offer and she said, “We are ready to go. We need to do this. I want to move to Las Vegas. My house is paid for. I’m just three years behind on taxes.” This was a nice house. There’s nothing wrong with it, except they were closet hoarders, so there was a lot of stuff there but everything was in great shape. I immediately knew it was a wholetail deal, so we went ahead.

Explain what a wholetail deal is.

I could have wholesaled this and maybe made $10,000, $15,000. What I wanted to do is open up the biggest and best cash buyers list, which is the Multiple Listing Service, MLS. I want people beating down my door to get this property. Another realtor that I have made a connection with that I have been communicating back and forth with frequently. We’ve yet to do a deal together but he’s an aggressive investor and a realtor broker.

I contacted him and said, “I got a good one,” so we partnered up on it. He had the funds. He had a HELOC, so he was able to pull out all the funds by the house for 50/50 partners on it. I put $50,000, and he put $50,000, and we did the rest of it finance through him. It’s because he’s a realtor, he’s going to market and sell it, so we put $1,500 into it.

Cleaning it up and getting it fresh.

We are talking granite countertops, cherry cabinets, and hardwood floors. It’s a phenomenal house in a great area. It’s going to sell somewhere around $390,000 probably.

What do you think you will net? You said that you could have assigned it for maybe $10,000 or $15,000. What will you net because you are 50/50 with your guy? What will you net after it’s said and done?

We expected that we were going to split about $85,000. I will probably net closer to $40,000 to $45,000 on the deal and get my $50,000 back.

That was from one phone call?

WI 277 | Thriving Wholesaler

Thriving Wholesaler: Be consistent because, without consistency, you will not have a business.

 

Yeah, TTP. One phone call. I did go and see her in person. I got the purchase agreement signed in person from her because I wanted to go see the property. The pictures online were great but I wanted to see them. Here’s the thing. This lady was in a wheelchair. She couldn’t reach the counters well, so there were tons of stuff piled on the counters. She was a heavyset gal, so she couldn’t stand for long.

What she didn’t want out of all of this was 100 people walking through her house with a realtor saying, “Do this, and this.” She wanted to move to a warmer climate because we get some rain in Oregon, where she would feel better. She could have a house that was paid for and have some money in the bank so she wouldn’t get behind on taxes anymore. It was a win for her, and it’s going to be a win for us.

You mentioned that every day, for a couple of hours, you pound the phones. How did you stay consistent? That’s the trouble because here’s what happens. You start making calls, you start having quality conversations with distressed property owners. All of a sudden, you start getting deals, stop making those calls, and things start distracting you, and you get out. How do you block all that out and stay focused on keeping the engine, the funnel going and bringing in leads into your pipeline?

The biggest thing is knowing that this is what is required to make this work. As a business owner for so long, I have it ingrained into me that you can’t be afraid of just doing the work. If you don’t do the work, you are not going to get the results. A big thing for me was to know that you have to put in the time. If I can’t get to an appointment for a couple of days, I might miss out on a deal. If I don’t make those phone calls, I guarantee I’m going to miss out on deals.

You lose every deal if you don’t talk to the distressed property owner.

On a two-week sprint, I haven’t been on the phone at all. Now that I’ve done a few deals, the next thing that I’m going to do is I’m going to get that consistency and hire somebody. I will probably hire one of your Costa Rica callers, the US callers because they don’t have to be trained. You have to make sure that they’ve got the right attitude and personality that you want talking to your customers but for the most part, it’s a done deal. My last two weeks have been a whirlwind of emotion. It’s taken me off of my game but I am glad that wholesaling has filled that bank account up for me so I can take those last two weeks off.

First of all, to let you guys know, the colors that I use personally in my business that Bill’s talking about is CallMotivatedSellers.com. They’re the best. They are Americans living abroad. That’s a little plug for them because they are incredible. What was that couple of weeks? You took a couple of weeks off, and that’s normal for a regimented entrepreneur like you. What happened?

We had some life circumstances happen. I’ve got two kids. I’ve got a girl and a boy. Our boy has suffered from headaches for many years. Sometimes they are bad enough that he gets sick that he will lay down in the bathroom. He will be there for 3 to 4, and then he will wake up, and he’s fine. We’ve taken him to several doctors, and they’ve all said that it’s pediatric migraines that he will probably grow out of it.

One of them got so bad that we took them to the ER. They did a CT scan for him, and that CT scan revealed that he had a mass in the front of his brain. We were scared that it was maybe a tumor. We went and saw a neurologist, and they said it was what they call an arachnoid cyst. It is a buildup of spinal fluid in the frontal portion of his brain, and it has pushed his brain back probably 2 inches. They are fighting for room in there. Anytime he would have either too much activity or something, it would cause that mass to swell and cause him headaches.

At that point in time, everything got shut off. We are like, “We got a ten-year-old that needs brain surgery essentially.” Life stopped at that point because nothing was more important than the kids. We took him to OHSU, which is the best hospital in the State of Oregon, and he had to have brain surgery. He went in. They went in through the side of his temple and got that cyst taken care of to where it drains properly and then buttoned him up. He was home about 24 hours later.

What that has done for me is it’s taken me off of my game because I have been making sure that he’s good. What wholesaling has done for me is it has given me the time and the income in my account that I could look at those 2 to 3 weeks and not even care. “I needed to be here with my son. I needed to be here with my wife and my daughter. We needed him to be able to recover.” Monday was his first day back to school.

You need to become the best version of yourself, not a better salesperson.

It’s so inspirational. Going through all of that, I can’t even imagine it. Even the years that he was going through headaches and all those issues and not knowing exactly what was going on. Now it’s drained.

It’s a one-and-done. We found out from talking to the doctor that it was something that he was born with and that fluid built up and built up. They say that they are pretty common. They do five of these surgeries a week but they commonly cause headaches. She made that incision. She cut that thing to drain, and then as his brain fills that void, there’s no more issue.

You will have the opportunity to spend that time and not worry about your job, your finances or whatever because of this beautiful thing called wholesaling.

There is nothing better than knowing that I could take that time off but the second-best part of that is literally the day before his surgery. I sold my business after eighteen years. I went into that thing without that work phone constantly ringing and those customers constantly calling. I was able to shut everything down and be in the moment with them at the hospital.

It’s absolutely incredible. Are you back at it?

Monday was his first day back to school. I’ve got two days that I have been working on the wholetail deal. It gets listed, and I’m headed there as soon as they get off the phone with you. I’m finishing it up. They are putting the lockbox on the door, and it’s being listed. I’m back on the phone.

How long do you typically call for? How many hours?

Usually three hours, sometimes I will push it to 4 but it’s at least 3 hours. The good news is that from 9:00 to noon is always open. My daughter and son are at school, so I’ve got that 9:00 to noon locked down with nobody here.

Do you call from the house?

Yeah, I call from the house. I don’t even need an office.

It’s an unbelievable story. It’s real life. This is what this beautiful business called wholesaling can provide for you and your family. It goes to the intro that I did at the beginning of this show. It was about deep diving the whys. Why do you want to be an entrepreneur? Why do you want to do wholesaling? Why do you want to do this or that? Whatever goals that you have, I love getting that and asking 7 Levels Deep because then you get to the core of it.

WI 277 | Thriving Wholesaler

Thriving Wholesaler: Go out there and have quality conversations with distressed property owners. That’s the key to this whole business.

 

You explained it perfectly where the core of this is you get the freedom to be there and during these moments. Not only that, but you have peace of mind and be mentally there. It’s being present. That’s such a huge relief because having your cell phone go off or having a million messages that are piling up behind or whatever, even though you don’t want to think about it, it creeps into your head. You set it up perfectly to not have to worry about that.

Nothing concretes your why more than your kid being in need of your time.

Give some advice to everybody starting out. Give them something to walk away with. Give them an instruction to do.

The biggest instruction I can give you is to be consistent. Without that consistency, you are not going to have a business that’s scalable. You are not going to have a business that’s sustainable. That consistency is everything. One more thing I was able to spend about an hour in person with Cody Hofhine. It’s probably one of the best hours of my life. He was generous enough. We sat down and chatted face to face, and he’s the guy that said, “You need to stop reading sales books.”

I have never been a reader but what I was reading were books like Sell or Be Sold, The 10X Rule, and Be Obsessed or Be Average. It’s all these sales books. That’s not what this is about. I picked up The Go-Giver and read that covered to cover. I’m reading The Compound Effect. What Cody told me is, “You need to become the best version of yourself, not become a better salesperson.” Another big takeaway is people don’t want to be sold. People want to know that you are a genuine person and you have the best outlook on your mind. They want to know that you are going to take care of them. That and consistency.

It’s absolutely perfect. That’s it, guys. It’s another phenomenal episode. Bill talked about TTP. If you are looking to join the most proactive group in real estate wholesaling, it is the TTP Program. Go to WholesalingInc.com/TTP. Scroll down and look at what it’s about. Look at all the testimonials, all the videos, and everything. If it’s the right fit for you, sign up for a call. It will be the best half-hour of your year, guaranteed.

Bill went through it. I’m so excited because everybody in the TTP Program I work with personally. Bill has my cell phone number. He texts me all his stuff. It’s absolutely fantastic. If not, here’s the thing, I encourage you to go out there and have quality conversations with distressed property owners. That’s the key to this whole business. It’s like what Bill said, “Be consistent.” I appreciate you reading. Until next time. Go out there and talk to people. See you guys. You are the best.

 

 Important Links

 

About Brent Daniels

WI 480 | Critical Energy ShiftsBrent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low-cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, and “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

 

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