Posted on: August 01, 2019
WI 295 | Closing Deals

 

If you’re a wholesaler who can barely find a deal in several months, closing 2 to 3 wholesaling deals a DAY can seem a bit preposterous. However, for today’s special guest, it is very possible if you know how.

Jamil Damji is the president of the highly successful real estate investment firm KeyGlee Investments. KeyGlee is known for providing the most streamlined and friendly process regardless if you’re a seasoned investor or someone looking to purchase your first ever investment property.

However, that’s not even the most impressive part. Jamil can easily do over a thousand deals a year (yes, that’s 2 – 3 deals a day!). Whats even more amazing? He makes it look easy!

In this episode, the exceptional wholesaler, entrepreneur, and real estate investor shared the exact blueprint he used to make his mark in the wholesaling world. If you’re looking for effective tips, tricks, and techniques that can take your wholesaling game to the next level, this episode is for you!

 

RESOURCES:

1000 Wholesale Deals in ONE YEAR With Jamil Damji

Episode Transcription

This show is for anyone that is looking to do virtual wholesaling, anybody that’s looking to get out of their market, go into other markets, and succeed. In this discussion, I have the number one wholesaler on planet Earth. That is Jamil Damji with KeyGlee Investments.

What’s going on?

Welcome. We went through your office, saw your operation, and broke down some great information. If you haven’t seen that, check it out. It’s on the YouTube page. He has also been featured on the show where we talked about what you did and how you built your business. This is a special edition episode because this is going to be specific. You’re going to lead people with the exact blueprint that you’re using to go into other markets.

The reason why I’m here is that as we were venturing into new markets, I thought, “Who better to talk to about this than Mr. TTP himself, Brent Daniels?” I know that you’re student-based and all the folks that are following you at Wholesaling Inc want to know, “If I’m in a market of 50,000 people, is that it for me? Am I stuck here? How am I going to do business?” Don’t get down. Don’t feel bad about it. Live wherever you want to live. You can crush it in any market in the United States, but you’ve got to do it smartly. That’s what we’re going to talk about.

Let’s get into specifics. Just a little background. Jamil and his company do over 1,000 deals in one year. Let that settle in your brain for a little bit. These are 2 to 3 deals a day. This is a huge honor for us to have him on the show. We go back to the growth mindset. There’s going to be way more, but you need to find a minimum of three things that you’re going to take action on when you’re reading this.

Taking action is the number one thing. I’m going to hop right into it. What does KeyGlee look for when we’re analyzing whether or not we should step into a new market? In the beginning, we’re looking for the types of buyers. We’ve got two types of buyer tiers. We’ve got seasoned investors and speculators. Seasoned investors are our favorite types because there’s not a lot of rapport needed. You don’t have to massage the deal. They know exactly what they’re looking for. They understand their numbers. They’re going to come in, buy what they’re going to buy, and not going to buy what they’re not going to buy. This is the buyer you’re not going to ever push. This person understands their situation.

You’re not going to explain to them why it’s a good deal. They see it and make a decision now. They will buy it sight unseen. They know the neighborhoods. They can make decisions quickly. They’re experienced. I love that you started out with, “I go into other markets and I look for buyers first.” This is the Wholesaling Inc whole model. Build up your cash buyer database first.

because if you’re doing acquisitions before you figure out how you’re going to sell your deal, you know what that makes you? A liar. I’m sorry to say that. I don’t want to use a negative term, but the fact is you’ve got no way to perform. Unless you’ve got that money or that hard money source and you’re willing to take this deal down, don’t contract the house. Figure it out. It’s super easy. It’s like understanding how to do a math equation. You got to know that certain things come first. Buyers come first. Get that buyer base built up. If you don’t have a buyer base, come into a market that KeyGlee is in. We will help you to get your business jump-started. You will fly on your own once that’s figured out.

The other type of buyer is the speculator, another one of our favorites. because these are individuals with quite a bit of net worth. They’ve got the money. They are always looking for places to put it. Sometimes they put them in Ferraris or Lamborghinis, all good stuff, but a better investment for these types of buyers? Real estate. These are the guys that are going to pay a lot more money than the other type of buyer. because if you can give them a 10% gain, selling to them at 90% of ARV, they are happy. Why are they happy? It’s because they got a deal and they didn’t buy a Ferrari instead.

In our experience, there are a lot of doctors, attorneys, high-level professionals, business owners, and people that are outside of the real estate business. They’re not necessarily professional flippers, developers, or have this robust rental portfolio, but they’re getting going. Maybe they’ll flip it, but a lot of times they hold on to it. Those are some of the best buyers ever because they pay more.

They require more work. We’re going to talk a little bit about what that’s going to look like. First things first, rapport. You’re going to need to build that rapport. You’re probably going to need to connect them with some form of capital. It’s always good to have your hard money lenders. I prefer Capital Fund over here in Phoenix. They’re in Colorado, too. Always get a great lender or somebody that’s reliable and has no closing day shenanigans.

 

Seasoned investors know exactly what they are looking for. You don’t have to massage the deal since they already understand their numbers.

 

Remember, everybody that you’ve introduced to your client pool is a reflection of you. If you do deals with Mr. Shenanigans and shenanigans happen at the closing table, guess what you are? Mr. Shenanigans. Don’t put yourself in that spot. Venture vendors. Be prepared to have your name on the line every time somebody that you refer is doing business with your clients.

How do you find a good lender?

For me, the best vetting that I’ve been able to do is talk to some past clients. Go online. I can’t tell you how many times I get asked a question that would be easily answered by simple Google searching. Look people up. Go on to BiggerPockets. BiggerPockets is one of those interesting places where people have a lot of good things to say. They’ll come and share fantastic information, but you piss some people off, and they’re talking about it all day long.

If you find your lender to be one of those that everyone has something bad to say about it, where there’s smoke, there’s fire. Take heed and maybe don’t introduce them to your clients at first. Maybe try to use them on your own. Vet them out. See the type of volume they’re doing. Ask them how many assets under management they have. These are questions that a lender should be able to ask.

Find out if they’re licensed, first of all. Holding a lender’s license, either as a mortgage banker or even as an LO. These are important pieces to the puzzle. You don’t want to be involved in transactions where your lenders are getting paid side money. None of that stuff is going to come back and look good on you. Be prepared to do business with the right folks.

One thing that I found the best, hard money or private money lenders came from referrals from my escrow officer. I said, “Who is the easiest to work with on closing?” They go, “This is the guy.” I want to get to the meat and potatoes of this.

Typically, they’re not going to require too much of a discount. They understand they’re buying under value, so that’s great. You’ll probably have to sell. This is where your salesmanship will come into play. You’re going to need to talk to them about benefits and long-term investment strategy. Get your understanding right and information together, and provide value for what you’re trying to sell. That’s the different types of buyers we’re talking about. When we’re looking at a major metro area and market types, what are the things that we’re looking for?

It’s certain specific types of market. There are appreciating markets like Phoenix, the one that we’re in. That’s a great market for what we want to get involved in because we know that assets are appreciating. There’s going to be a lot of investor activity. Access to capital is going to be pretty easy. So that tells us that buyers are going to be able to fund, deals are going to be able to get done quickly, and we’re definitely in a good spot.

We’re also pretty good in stagnant markets. Volatility is not our friend. If you’re on the upward peak or if you’re leveling out, it’s great for investor activity. Investors love stability. They want to know that if they purchase a property, in months it’s going to be worth what value they’ve added. They shy away from situations where they’re going to see some depreciation. Stable markets or appreciating markets are the types of markets we plan.

You’re saying, you don’t go into some of these markets that there are a ton of properties at like $5,000, $10,000, or $15,000. I feel like the whole country is appreciating or stable. Is there a price point that you’re saying, “This isn’t appreciating. Nobody’s going to land.” Most conventional lenders don’t lend under $60,000. You have to buy this in cash. You can get great cashflow to rent them out, but then your renters beat up the property and who do you have to sell it to? You got to sell to investors when you want to exit and they want a discount.

Also, remember that every market has its own sub-markets. In Phoenix, for instance, our luxury market is a depreciating market. We are not going to enter the luxury market in Phoenix because we understand that the demand is lower and there’s downward pressure on pricing. We dive in to understand it’s not just about, “Phoenix is appreciating.” Phoenix is appreciating into this price point. Beyond this price point, it’s stable, and above that price point, it starts to depreciate.

 

WI 295 | Closing Deals

Closing Deals: Don’t contract the house. Figure it out. It’s like doing a math equation. Know that buyers come first, so get that buyer base built up.

 

Dial in those numbers. Don’t take one section of the market and think that it’s going to work all the way across because that’s not true. What factors do we consider when we’re looking at a market and making the decision whether or not to enter it? Population. If you’ve got a population of 500,000 people or more, there’s going to be homes there for us to turn.

It’s our threshold, 500,000 or more. Beyond that, there’s not going to be a lot of activity. The trash in the capital. There might be good deals, but the volume because remember, we’re a volume wholesale business. If you’re happy doing 1 or 2 deals a month, that’s cool. Maybe being in a market of 100,000 people is exactly where you need to be. If you’re trying to grow and explode and TTP is what you do every day, you need people to talk to. That’s why you got to get into markets where there’s going to be people.

When you look at population, do you just google?

We google it. Usually, the censuses are like 2015. You know that there’s going to be more babies. That’s happening. You can probably add a little bit to that. Wikipedia is a great place to find out about a population. Make sure you’re keeping tabs and not just entering a market because your buddy’s there. That’s a little irresponsible.

What’s next?

Next is wholesale volume. Our house is sitting on the market. Remember, if an investor’s buying a property, they’re adding value, and then that property is sitting on the market. What’s happening? Their profit margins are decreasing. Their debt services are going up. They are less likely to reenter another cycle. The ability of them to come in and say, “That worked out well. I want to do this again,” decreases. If houses are sitting on the market for some time, that’s an indicator that there’s a potential stagnation or depression or a decrease in price coming. Be careful about that.

Do you look at supply and demand? Is it how many months of inventory are on the market? Explain that. In months of inventory, you look at how many homes are going under contract or selling a month, closing a month, versus how many are active. That’s the equation there. In a regular market, it’s about six months, but in Phoenix and a lot of other areas, three months of inventory.

If you’re playing in a market with three months’ inventory, you’re probably safe. Be careful about those luxury areas because that’s where you’re always going to have completely different mathematics.

You can look at the median price. What would be a threshold? Maybe double the median price?

Double the median price makes sense.

There’s a big difference between even buyers that are above $600,000. Maybe that’s their forever home.

 

Don’t take one section of the real estate market and think it will work all the way across. It doesn’t work that way.

 

I always pay attention to lending. What’s the threshold for a jumbo mortgage?

What is it?

Over here is $460,000. Beyond $460,000 is a jumbo mortgage. Getting approved for a jumbo mortgage is not easy. It’s difficult. You need all kinds of income. A lot of guys who are in that higher income category have different sources of revenue. Some of that revenue is cash. Some of it might be through investments or through different vehicles. Getting all that together so that a lender can make sense of it isn’t always the easiest.

That’s why there are few buyers.

We touched on available inventory and appreciation over one year. How much has the property been appreciating for twelve months? That’s pretty simple. We’ve been seeing an average of 7% in Metro Phoenix. If you’re finding that there’s some appreciation in that market, you’re probably in a good spot. The appreciation over the last years, let’s look at that in terms of, “In five years has that appreciation, are we into now a steep angle? Has this appreciation pretty level, consistent, year over year?”

What are you looking to find?

We’re going through a different bunch of different data sources. Tax records are typically our favorite to use because that’s the most accurate. You can find a lot of information from online resources like Zillow or Google. There’s a lot of information available to us online that you can get fairly easily.

If you just google it, then you should be able to find that information somewhere about the appreciation over the last few years.

With the appreciation over the last several years, we want to understand the market cycle. Look at California. Not all of California, but LA, Southern California, and Northern California did not get hit the same way as the rest of the country in The Great Recession. What’s happened over the last years and how we are close to the peak is important. Pay attention to the market cycle.

Do we feel like we might be at the top? Do we feel like we’re climbing toward the top? It could potentially be on a downward slope. Know where you are so you know where to position yourself. Many years will give you a full market cycle. Pay attention to that. This is a real big one, trustee or judicial state. Have you ever had an opportunity to talk to your client base about that? Trustee states are the states that attract all the hard money lenders.

because if you’ve got a borrower who’s not paying their mortgage, guess how long it takes to get them out? At most, 90 days. That is golden for a lender because they got to get that money out. They’re paying on that money. They’re losing every day that their borrower is defaulting. They want to turn. They want to be able to get that borrower out, get that property back on the market, and turn it around again. In the judicial states, that can take up to a year or maybe even longer sometimes.

 

WI 295 | Closing Deals

Closing Deals: Appreciating assets and a lot of investor activity makes access to capital pretty easy. This only shows that buyers can fund deals and get them done quickly.

 

That’s why private money charges a lot up front in some of these states.

That’s where you’re going to get points. You’re going to have all kinds of fees. There are going to be all extra guarantees involved. That’s just going to decrease the amount of investor activity you’re going to have available to you. Get after trustee states. In the judicial states, you’re going to have to do a little bit more digging. Proximity to you, that’s neat. It’s important for it to be close, but that’s way down on the scale. How close you are to a market is not important. We live in the age of the internet. Getting people to get out and do something for us for a minimal amount of money is there all day like TaskRabbit. What’s another one that you like to use?

Honestly, we posted on Craigslist.

Fiverr and Craigslist.

We posted to Craigslist just to get somebody to take pictures because we do a lot of land deals. They’re out in the middle of nowhere. Some dude with his phone is fine. If they got an iPhone and video, that’s $50.

You’re in business. You’ve got pictures and information. You can start selling your deal. Do not care how close the market is to you. That’s the number one thing people start to think of before they take into consideration what we’ve already talked about. In our opinion, it’s the most unimportant. Don’t worry about how close it is to you because that’s what phones and emails are for. I did miss a line. Public data versus a nondisclosure state.

Why is public data important? It’s because that’s where you’re going to find your buyers and your list of distressed properties. Does the state easily provide you data or do you got to search for it, dig for it, spend all kinds of money and have these relationships with these third-party sources that are charging? There are some third-party sources that will charge $20,000 to $30,000 a month for access to data in certain counties. That’s a crazy town. Try to be in States where disclosure and access to data are there.

Average sale price. It doesn’t bother me if the average sale price is high like in Northern California. Wholesalers are crushing their assignment fees up there because we’re talking houses that are tear-downs worth $1.5 million. For you to be able to flip that $1.5 million contract for $1.6 million and make a $100,000 assignment fee is not a big deal when you’re talking San Francisco Bay. Can you make a $100,000 flip on a house in Phoenix? It’s a lot harder. What you can assume is the higher the average sale price, the higher your assignment fee, and the lower your volume.

If you’re going higher, look at the numbers, watch how it’s trending appreciation-wise and sale-wise, and how long they’re staying on the market if it’s a luxury property.

Research tools. What are some of the tools that we’ve been using to get our research? City-Data.com, everybody knows that. MyNeighborhoodSource.com, Realtor.com, and Trulia are other great ones. It’s simple Google searches. Take some time before you ask crazy questions to people that you probably shouldn’t be asking crazy questions to. If you want some simple information, google it. Go on BiggerPockets. There are some pretty smart people over there spending their days. There are all kinds of public data sources. Get after it.

What action steps can you take? Create your own spreadsheet. Get serious about it. If you’re going to spend time, spend resources buying data, hire callers, and do all that work, be top-heavy. Begin by doing some research, create a spreadsheet, and make sure you understand everything that there is to know about that market before you jump in. When you do jump in, go in both feet.

 

If you want your real estate venture to explode, get into markets where you can meet people.

 

Go crazy. That doesn’t mean months of research. How long do you think it will take?

Spend two days thinking.

In there, there are probably two hours.

Gather the information, absorb it, think about it, and take action. The next thing we’re going to talk about is what do we at KeyGlee do when we’re going to enter a new market? We’ve made a decision.

What markets are you in?

We are buying and selling houses in Maricopa County, Phoenix, Tucson, Tampa, Orlando, and Atlanta, Georgia. These are all our active markets. We are days away from Salt Lake City. We are super excited about that. We are a few months out in Houston and Dallas.

You went through these exact steps to go into their markets. When you go into a market in fierce, what are the action steps? What do you do?

Some of this is going to sound like it’s common sense, but it’s only common if you use it. The first thing you do is file your LLCs in a new state. “I am Phil and I buy houses LLC in your specific area that you’re buying houses in,” does not translate into a new market. You’ve got to form a new company. You can’t use your Arizona LLC in California. It doesn’t work. Title companies are going to go berserk. They break when you send them a deal with an out-of-state operation. If you want to see people break, that’s how you break them. Don’t do it.

You file an LLC. You got 1 in Texas and 1 in Utah.

File your LLCs. Create the internet infrastructure. Build your websites, your apps, your Podio, and get your phone numbers and email templates. Get all that set up so that you’re organized. When you get into your market, after the fact is not the time to get organized. Organize yourself before the fact. I can’t stress this enough. I’m a big fan of the Magnus Title. We’ve got a partnership with them, but Fidelity title is the most amazing partner that you will ever find. Noelle Moretti, Sharon, and Dena Jones have opened many doors for us across the country. I can’t say enough nice things about them. Every title company that we’ve worked with that they’ve referred us to has been the best.

Make friends with the marketing people at your favorite title company. If you don’t have one, take my advice and go to Fidelity because they are nationwide, the biggest, and investor-friendly. They will take care of you. They may not send you to basketball games but buy your own basketball tickets. They are going to open doors for you. They are going to show you who you should and shouldn’t be dealing with. Make those relationships because they’re awesome.

 

WI 295 | Closing Deals

Closing Deals: Be careful with luxury areas because that’s where the mathematics will be completely different.

 

Also, have their attorneys look over your paperwork. I can’t stress this enough because this is what happens to us in Florida. For those of you who are from there, you’ll know that in order to cancel a deal, because that happens every once in a while, the buyer and the seller have to agree. Even though you’re in the inspection period, the deal’s not going to work out, you send a cancellation, and try to get your earnest deposit back, which has to be approved by the seller.

If you’ve angered the seller for whatever problem or reason, the deal didn’t close, they can jack your earnest money. They can have it sit in limbo. It will sit there and a title company will not release it. It doesn’t matter how many mean emails you send them. You have to sue. Typically, we’re putting up around $2,000 for an earnest deposit.

We have to file a $2,500 lawsuit to get her a $2,000 check back. We did it on principle so that we could win the fight. Fidelity got in-house counsel. Their in-house counsel looked at our contracts and helped us tweak the verbiage so that we removed the clauses that give us brain damage. We add the clauses that protect us better. That allows for a smoother and easier situation if, for whatever reason, your deal’s not going to work out.

The title companies have an attorney on staff that will help you out and not charge you. It’s building that relationship, talking to them, and saying, “This is the paperwork I want to use. Do you suggest anything different?” If you can afford to get your own real estate attorney, which you and I both have, that’s excellent and a great resource. If you’re just starting out and you want to get some legal guidance that’s free from somebody that’s doing it every single day, talk to the title company, sit down with their in-house legal counsel, and there you go. It’s a huge resource.

Even if you have your own attorneys and you’re not trying to leverage the costs, the fact is, if you’re going to use that title company for your escrows, then have their legal look at it first. Your attorney might have said, “I’ve got this all figured out. You’ll have your earnest deposit released.” That escrow officer’s attorney might have a different idea. Let them see it first because they’re the ones going to be making the decision anyway. Have them look at it.

Hire a property specialist in that market. Don’t just rely on Craigslist, TaskRabbit, or Fiverr forever. Start to make a relationship. If you like the guy from Fiverr, hire him again. Keep him going and keep those relationships expanding. The more loyal you are to your people, the more loyal they are to you. Update all of your contact information. People want to see that there’s some form of local activity if that means that you need to get a local phone number. Don’t be sketchy looking.

I don’t answer phone numbers anymore that aren’t local because I’m getting robo-dialed all day and so is everybody else. Update the contract, email, phone numbers, and contact information. It’s common sense stuff. If you want to do this at a high level, it’s important to dot all your I’s and cross your T’s. TTP, that’s what I’ve got to share with you. It’s super awesome. This program is great because it allows you to do wholesaling from anywhere. If you’re interested in jumping into a virtual market or you have any questions about dispositions, get that link. I told you the markets we’re in. We’re in Phoenix, Tucson, Tampa, Orlando, Salt Lake, and Atlanta, Georgia. If you’ve got a deal for us to sell, reach out. We would be happy.

This is the secret formula that Jamil has in his business going from Phoenix and doing 70 or 80 deals a month to doing this in different markets. You build up your cash buyer database. You’re the best at disposition in the country. That’s why people bring you deals when they have trouble selling them. They come to you as the buyer. They know that when they come to you, the deal gets done, nothing gets backed out, and there is a lot for them. If you want to reach out to him and you’re in those markets, I highly encourage you to get on to KeyGlee. It’s the craziest business name in the country.

It’s @KeyGlee or @JDamji on Instagram. Find us there.

Meet with guys that are local there because they’ve got boots on the ground in each area. It’s an unbelievable resource for these markets that they’re going in. I highly encourage you to consider doing business with them. You’re the man. This is exciting. You gave a lot of instruction and information here. People can download it. Go to Brent Daniels – Real Estate Coach on YouTube and find it there.

As always, if you’re looking to join the most proactive group in real estate investing, it is the TTP Program at WholesalingInc.com/TTP. Check out the page and the testimonials. If it feels right in your gut, set up a call, and we’ll be talking to you soon. I look forward to working with you personally. Until next time. You guys are the best. Thank you for subscribing to this channel. Give us a like and we’ll see you next time. See you.

 

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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