Posted on: July 18, 2019
WI 291 | Cold Calling

 

If you think you need a huge amount of marketing money to succeed in wholesaling, think again! Today’s guest earned a total of $127,000 just knocking on doors and cold calling!

 

Davin Reynolds is a rockstar rhino from San Diego, California. While still new in the wholesaling business, that didn’t stop the driven 25-year-old from finding lucrative deals in the ultra-competitive San Diego market. In fact, his first two deals both happened within a month. What’s even better is he was rewarded massively for both deals.

 

If you want to try wholesaling but don’t have any money for marketing, you owe it to yourself to listen to today’s episode. Without a doubt, Davin’s success story will not only inspire and motivate you but will also make you believe that you, too, can make things happen!

Cold Calling Blueprint With Davin Reynolds

Episode Transcription

Tom Krol, Cody Hofhine and I bring you thoughts and interviews to accomplish one single goal. That is to give you the instruction that you need to go out and find an incredible real estate opportunity, which leads me to my guest. This guy comes through us from San Diego, California, with an incredible breakdown of his journey with wholesaling. It is my pleasure to introduce Davin Reynolds to the show.

How are you doing?

Everybody is doing better. You are in San Diego. This is San Diego, Phoenix, Miami, New York and some of these other places where everybody says, “It’s too competitive there. We can’t do deals there. We’re going to go into smaller markets and do other things.” Have you ever heard this?

Yes, big time.

You decided you were going to stay in San Diego.

I was going to do it anyway and make it happen regardless. I live here. I want to do it in my market and make it happen.

Let’s talk about you. What’s your background? What did you do before you started your real estate entrepreneur journey?

I was a college student and played football all my life. I got introduced to real estate through my aunts. One of my aunts had her real estate license and one of them had a rental. It was cool. They would come to find houses and I’ll have to help them clean it out and stuff like that. It was a cool experience. I was like, “I want to be able to rent my own home one day, make money, cashflow and stuff like that.” From there, I was like, “If football never worked out, this is something that I could see myself doing and be passionate about.” That’s how I got into it. I figured it out.

They weren’t wholesaling.

Yes. My aunt was a realtor and one had a buy-and-hold property.

 

WI 291 | Cold Calling

Cold Calling: Do not degrade people, bring them down, or try to squeeze the tiniest amount of their equity. Give them a tiny amount of their equity because they don’t know any better.

 

Why didn’t you go down the path of, “I want to work a regular job and buy rental properties until I get to the point where I have enough cashflow to where I don’t have to work that job?” How did you discover and run into the beautiful business and industry that is wholesaling real estate?

I was trying to do that. I tried to get business funding for credit. The whole nine where you try to get the funding, buy a property and get into it that way but it wasn’t working. Through that course, I was like, “I’m never going to be able to do this how I want.” Somebody that was watching was saying, “No, a certain person builds their capital by wholesaling.” I’m like, “What is wholesaling?” I looked into it and from there, I YouTube it all crazy and figured it out. I came across a couple of people like you. Watching all your videos and other people’s videos, I figured it out and started trying to do it on my own.

What does that mean? For somebody that’s getting ready to take their first action, what was the first thing that you started to do?

The first thing I started to do was try to figure out my county. I tried to figure out what was a motivated seller. Once I found that information out, which is through videos that I learned from watching you, I went down to the county. I tried to figure it out as far as how text delinquent works. I heard of probate and tried to figure out what probate was. I heard that you get all those answers from going to your county.

I went in there and bugged everybody I could and figured it out as far as where do you get the list? People were telling me, “There’s no list. I don’t know what you’re talking about.” Watching these videos, I’m like, “There has to be another way.” I went online and figured it out. I went to the county and found that list that way. There are a lot of failures, honestly, when it comes down to it.

Here in Phoenix, there are many different places that are responsible for different lists. The code violation list is the Neighborhood Services Department and the property taxes are with the tax assessor and the treasury. The probates are with the county recorder. It’s all these different things. I have a list provider that gets those.

If anybody’s wondering, it’s a Flip This Real Estate List that I get those from but if your budget’s tight or if you’re starting out and you want to get that experience, you can certainly go and ask around but you get stiff-armed off the bat, to put it in a football reference for you. Did you keep going? Did you finally break through?

What happened was I was working at a mortgage company at one point. There was somebody that was friends with the broker that I was working for. He was looking to buy a home from the tax auction. When it happened, we were scouting out the houses that were coming up in the auction. He had got the list a week before and I’m like, “Maybe we should knock on the door and see if the homeowner is there and figured out that.” That’s what I hear from you. You got to get to the seller first.

He was trying to wait until it got to auction and buy it. I’m like, “If we can knock on this door and somebody lives here, we can probably lock this deal up and get it done.” I took that motto and that’s how I got my first deal. The list came out, I printed it out and it came out a month before the auction happened. I went to the website, got the list and put it in an Excel sheet. I went and door knocked on every property on the list until I got face to face with somebody who wanted and it worked.

Was this pre-foreclosure or tax default?

The more buyers you can go directly to, the more profits you’ll keep.

This is tax default.

If you went to ten different doors, how many people answered the door?

Honestly, I only door knocked on two houses and the second guy was like, “I want to get rid of it.” I’m like, “This is it.” After that, I follow-up. This was a hairy deal. The guy was going through bankruptcy. I had no clue what was going on. It had code violations. We wind up working through it and getting it done. That’s how I got the information. I went to the county and figured it out from the guy that went to buy something from their auction. He bought the list and I figured out that the list comes out a month before the actual tax auction. You get it right from the website.

You got spoiled. You went to two doors and got a deal.

A year prior to that, that’s when I met the guy that wanted to buy from the auction. I had door knocked the person and I almost got a deal but they told me they wouldn’t wind up going with somebody else because I guess my experience level wasn’t there. Somebody came in with more money upfront and showed them a check and stuff like that. They wind up going with them. The guy told me, “I missed out on $20,000 and I was heartbroken.” I’m like, “I’ve been working on this, trying to do this for so long and it didn’t work out. When this comes around, I’m going to go and knock on every door until somebody says yes and I get a deal.” I wind up putting that plan into action. That’s how I got the deal.

When did this deal go through? When did you get your first one?

Both of my deals happened within the same month. The first deal is out of the tax auction deal. That one closed in June 2019. That’s when I got that one. That was the one for $36,000.

A $36,000 from a tax default door knock. We have a couple of deals to talk about here but the great thing about this silver bell is it has an unlimited amount of rings that I can do here. That is amazing. Let me ask you this. Did you already have a cash buyer in mind to sell this to? Did you know somebody that wanted to buy this or did you get the property first and start finding buyers?

I didn’t have any buyers. Once I figured out that they wanted to sell, I did my numbers on it. They told me the price and I got locked up for that price. Somebody who does a crazy amount of deals in my market, I knew that they would be able to bring me a good buyer for the property. I went 50/50 on the profits with the deal and we got to work it through that way because I didn’t have any buyers. They supplied the buyers and I brought him the deal. That’s how we were able to find a buyer and close on it.

Was it $36,000 total and you got $18,000 or $72,000 and you got $36,000?

 

WI 291 | Cold Calling

Cold Calling: Your experience level doesn’t matter. What matters is if you can be a decent human being and help somebody out with their problems.

 

It was a $73,000 deal and I got half of it, which was $36,000.

This is an interesting thing and it’s important. You’ve got to build up your cash buyer database. You want to get that as fast as possible because you had a big massive deal there. The more buyers that you can go directly to, the more profits that you’re going to keep. If you find a great deal, do not let that stop you from finding somebody that has experience in your marketplace that can make this as smooth for you as possible and that you can learn from. I’ve even adopted a lot of the buyers when I was first starting out. All of a sudden, that buyer became my buyer as well.

Some people like that because they think the buyers are exclusive to them. Trust me. They’re not. They’re dating around a lot. They’re getting everybody’s emails and checking all these deals out. I would adopt these incredible buyers that were buying a lot of properties, which is a huge benefit. People should not be scared to partner with somebody as they’re getting their business going. They can get the profits and close the deal.

They can keep their promises to the seller. They can have less anxiety, fewer distractions and go out and get other deals, which you did. You got two deals. Let me ask you this before we get into that because a lot of people have an issue with it. I door knocked with a team of people that I was running at about 15,000 doors in Phoenix. We were not holding neighborhoods. It wasn’t specific. It was brainless. I didn’t even know what wholesaling was at the time. I was trying to be a real estate agent, finding off-market deals.

The first time I’m going out, I was nervous going into those stores. I was like, “There’s going to be a dog that bites me. Somebody’s going to shoot me. I’m going to get yelled at. Somebody’s going to scream.” I don’t know if it was easy or if it was the right time but with the first 500 doors I knocked on, people were cool. It wasn’t anything too crazy. I hit on a couple of times here and there by some older gals. Beyond that, it wasn’t too bad. What was your experience? What was going through your head when you were going to those doors?

My knees were buckling. I didn’t know what I was doing. I had no clue. I knew that I wanted a deal and these people needed help. I toughed it out. Honestly, I didn’t know what I was going to say and how it was going to work out but I knew once I broke the ice with someone, I’d be able to work my way through and see if I could help them out. I went for it.

Do you remember what came out of your mouth when they opened the door?

I was like, “I saw that the property is maybe going to a tax auction. I didn’t know if you knew that or not. I’m a local real estate investor. I wanted to know if there’s any way I can be of service to you.” He was like, “Somebody left here.” He was talking to someone. We have broken the story. I got to know him a little bit. He was like, “I like you. You’re the only one who’s come here that’s talked to me like I was a human.” One guy went over there and he shouted at him. He was like, “You’re going to lose the house. You owe $20,000 on it. I gave you $30,000. He’ll give him $30,000 and he’ll give him $10,000 for the house or he’s going to lose it. I’m like, “That’s crazy that somebody offered him that.

I got to know him. I had to follow up with his guy. I didn’t get the contract right there. He was hard to get close to. After we talked, he ghosted me. The next day, he was like, “I’ll call you.” I have a full-time job that I was working. After every day I worked that whole week, I would knock on his door again and be like, “I’m just checking in. Do you need anything? How’s everything going?” He’s like, “Everything’ is good. I was going to call you. I didn’t get around to it.”

People that are in those types of situations tend to hold back and take action on a lot of stuff. I knew I was going to have to be persistent and it wasn’t a laid-down deal. I followed up with him. I went back and knocked on his door pretty much that whole week. The next time I went was on a Friday. It was coming towards the week. I was like, “I know you want to sell. You told me you want to get rid of it. What’s holding you back?”

People should not be scared to partner with somebody. They’re getting their business going to get the profits and close the deal.

When I asked that question, he was like, “Honestly, I want to make sure I have something to leave to my daughter. I want to be able to talk to my daughter about this and I’ll be able to move forward.” They had that conversation. I followed up again and this time, he called me. He’s like, “I’m ready. You can come by the house. We can get the process started.” I went and that’s when I locked it up. I met his daughter. We talked about everything. I told him how the process was going to go. I didn’t even know how it was going to go. At the top of my head, I’m like, “This should go in my head.” I lighted up. I reached out to a bigger wholesaler in my market and we got it done.

It’s exactly what we talked about on this show, “Progress, not perfection.” You’re going to get in there. You’re going to feel unsure. At the end of the day, if you’re going with a heart to serve, provide value and help people out of their problems, sit there, listen to them and not degrade them, bring them down or try to squeeze the best, give them a tiny amount of their equity because they don’t know any better, if you go there with all those things, you’re going to make it happen. It doesn’t matter the experience level. It matters whether or not you can be a decent human being and go there to try to help somebody out with the problem. That is huge and I applaud you.

You joined the TTP program and started taking action. You realize that you don’t have to go out and door knock all over town. You could get the contact information for these people and give them a call. Door knocking and calling people up is all TTP, proactive, being on offense and everything that I encourage everybody reading to implement in their business, even if they are marketing. Don’t wait around for the phone to ring. Be proactive. You went out and kept that proactive nature about you. I see this a lot with the military members in the TTP group and also with the athletes that seem to be attracted to being on offense. Do you think it comes from that background that you have?

I’m not sure as far as the athletic point. It helped me as far as my discipline on everything but what motivated me was my family. San Diego is a tough place to live in. It was very expensive. I was sleeping in my car, all in pursuit of me doing this. What kept me going was my need to get a deal. I didn’t want to get a job. This is the type of life that I wanted to live. I wanted to have freedom in my life and be able to live on my time and means. I wanted to operate my business. I wasn’t going to stop until I made it happen.

Let’s talk about you getting on the phones. How did that go and start?

I did driving for dollars list. I was sitting on that list for months. I was too broke to get money to call it. After I got my first deal, I joined the TTP program. I figured out how to work everything and get everything going. I can only call on Saturday. I worked Monday through Friday. On that Saturday, I called that driving for dollars list for about two hours. I almost stopped calling too, which is crazy. I was like, “Nobody’s picking up.” I cursed out. I’m like, “This is crazy. I stuck it out, go through the script and then got this nice lady.” This might’ve been the easiest deal I ever did. With my first one, I felt like it was the hardest deal.

I asked her and went through the script, “Would you be looking at stepping off from your home or give an offer on your home?” She was like, “Yes.” She opened up and told me everything. She told me she was in the middle of fixing it up. She had another property she was working on. She’s running short on money. She went into telling me that her husband had passed and she would be willing to entertain an offer. She wasn’t wanting to deal with the property anymore. She winded up telling me a price, which was a good price for an investor to buy the property. I was like, “That’s a good price based on the numbers that I saw.”

I set the appointment that same day. I was like, “Can I meet you over there?” She’s like, “I’ll be over there at 1:30.” I went over there. I had the contract in the back seat. We talked and she opened up more to me when I got to the house. We went through the house. She was telling me about her life and stuff like that. I came down to the pricing port. She said she wanted $500,000 for the property. I was like, “We’re only buying properties over here for about $475,000. I like the property. I want to be able to help you out in this situation. Is there any way we can meet in the middle on this?”

After that, we took a pause. I watched her for a second and she was thinking. She’s like, “Where would you want to meet? How far did you want me to go?” I’m like, “You give me a number.” She was like, “How about $490,000?” I’m like, “I don’t know if I can do $490,000. That’s tight. Let me give my partner a call and see if I can make $490,000 work for you because we’re at $475,000 at $490,000. I’m maybe able to make it work. I’m not sure.”

I went out in the front and made a fake call. I’m waiting around on my phone and walking around. I gave it a good five minutes. I went back into the property. I was like, “Unfortunately, the best we’d be able to do is $485,000 on this.” She was like, “Okay.” I was like, “I have an agreement in my car. I can go get the agreement and we can get the process started.” I went and got the contract out of my car.

 

WI 291 | Cold Calling

Cold Calling: Keep your guns negotiating and create a healthy tension.

 

Before I could even go through the contract, she snatched the paper out of my hand and signed it. I didn’t even write the number in or anything. She signed it right away. I wrote it and got it. We got the process started. I sent it out to my buyers. Somebody came in at $560,000. I had one at $540,000 and another person said $500,000. I sent it out and the people that came in the highest were the people that I got to give the property. The person that said $560,000 and $540,000, I made sure that they got there.

These are my buyers from the first deal. When I got the first deal, those buyers that came to that property, I wrote all their names and numbers down. I took them down and blew them up when I got this one. I’m like, “I got a deal.” They’re like, “Who are you? We don’t even know you.” I’m like, “I got a deal. This is my company and my name. This is what I do.” I got them over there. We got the deal done. I wound up going with the guy next time.

Did you with somebody that was at the $560,000 or the $540,000? Why did you choose the one that you did?

The one that was at $560,000 came to the property. They went down the price. They were like, “We can’t do $560,000.” They gave me a number that was way out of the ballpark. It’s super low. They tried to take advantage of me because I was newer and young. They were like, “We’re going to try and get this deal from this guy.”

I knocked it off and the guys that came in at $540,000, I was like, “I have other offers. You can perform on this.” I showed him the property. Immediately after I showed him, I went back home and they gave me a call. They were like, “We like this property. What are we going to do to get this done?” I was like, “You are at $540,000. I got one at $560,000 and $525,000. How fast can you close on this?” They were like, “We can close immediately. Let’s do it next Monday. We can get it done.” I was like, “Let me think about it. I’ll make sure if we can get this done.”

I didn’t have any other buyers for this property. I was making them think I had high offers. I had no higher offers. I wind up going with them. I sent over my contract for them and they put the other earnest money in. I didn’t even know if they were going to return this money but they put it in a $7,500 earnest money. We wound up closing at $540,000.

How much did you make on it?

I made $54,215.

This was from driving for dollars TTP cold call. There are a few things that I wanted to point out there that is important that people can take as instruction when he tells his story about this. One, he kept using the word agreement. He did say the word contract a couple of times but when he was talking to the client or talking to the seller, he said that it was an agreement. I love that. An agreement is so much more digestible and less friction than a contract. Use agreement. You also said, “We’re buying homes in this area for around $475,000.” You didn’t say, “I can give you $475,000.”

It keeps the door open. It doesn’t close on it fast, which allows the conversation to simmer a little bit. It opens up. She came back with the number. There are some smart things there. The other thing that you did was you kept your guns negotiating and created what I called healthy tension when you were negotiating with the buyers.

Success requires you to have the mindset of being willing to risk it all.

You were saying, “I want to give this to you. I like you but I’ve got these other people interested. If you can come to this price, we can make this happen. How fast can you close?” You got $7,500 non-refundable earnest money. If you have a deal, until they get their non-refundable earnest money into the title company or closing attorney, you do not have a deal. That is what’s going to secure them. This one tells you that they are serious buyers. That was phenomenal. From your first two deals, what was the total? I know you made $36,000. The first one was $73,000. The second one was $54,000. Was it $127,000 at the first 2 deals?

Yes. It is all within a month.

Did you start in April 2019?

Since 2018.

What about when you start to be proactive, go out and talk to people?

April 2019.

It’s going to be an absolute pleasure watching your business take off. It’s going to be phenomenal. What’s your goal with wholesaling?

I want to have a wholesaling business where I can use it as a vehicle to buy and hold. I want to buy and hold my assets and go passive with that. I want to keep doing deals. I love it. It’s a passion of mine. I get that competitive feeling as if I was still playing football. I love what I do.

Give some advice for anybody starting out. There’s an instruction that they get from this but give them a little bit of mindset advice or something to think about like a sliver in their brain to think about when they’re starting out this business. How can they turn off all the other noise, stay focused and commit to it? What would you suggest?

Honestly, if you’re starting and it is something you want to do, you got to have the mindset where you’re willing to risk it all. That’s the mindset that I had. I was like, “It doesn’t matter how much debt I get in but I’m going to make this happen until I get where I want to be.” I would say that to anybody that started and tried to do it. Stay consistent. You got to take action and keep doing it. It’s going to be a lot of trials and tribulations throughout what you’re doing but as long as you stay consistent and you’re ready to give it all on and get done what you need to get done, anybody can do this.

Davin, I appreciate it. You’re the man. Thank you for coming on here. You’ve got the bell rung twice. That’s incredible. For anybody out there, if you were looking to join the most proactive group and on offense group in real estate, you got to check out WholesalingInc.com/TTP. Check out the TTP program and scroll down. Check out what it’s about and all the testimonials.

If you feel in your gut that it is right for you, sign up for a call. We’d love to talk to you and I’d love to work with you. Until next time. Around the country and the world reading this, you can get a deal. You can wake up somebody who’s going to sign a contract with somebody. Let that be you. I encourage you to talk to people. You guys are the best.

 

 Important Links

 

About Brent Daniels

Brent 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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