Posted on: August 22, 2019
WI 301 | Cold Calling

 

While there are several marketing channels you can choose from when it comes to wholesaling, cold calling is still hands down one of the best marketing channels there is. And that’s something today’s phenomenal guest can definitely attest to!

Darryl Evanetich is a rockstar wholesaler from Salt Lake, Utah. While he has ventured into other aspects of real estate, it’s in wholesaling that’s he’s truly made his mark. In fact, he’s now a part of TTP’s illustrious $50,000 Club!

Curious as to how he made it all happen? Then you should tune in to today’s episode as Darryl candidly shared the techniques, tricks, and tactics he employed to make a killing in the highly competitive wholesaling market.

If you’re ready to enjoy the same level of success Darryl is currently enjoying, this is one episode you just can’t miss!

RESOURCES:

Why Cold Calling Is Still One Of The Best Marketing Channels

Episode Transcription

Let’s think about if you have a fixed or a growth mindset. If you have a growth mindset, if you’re feeling that you are reading this to learn something that you can immediately take action on, I want to issue this challenge to you. While reading this, I want you to find three things that you write down that you’re going to take action on and three things that you’ve learned.

If you’re just reading this, then this is pure entertainment for you. That is not the point of this show. That is not the point of bringing you some of the absolute best interviews with wholesalers around the country every single week. The whole purpose of this is so that you get the instruction so that you can take action. I challenge you to write down three things that you learned from this fantastic interview that we’re going to be presenting to you on this show and take action on them immediately. With that, I would like to introduce a phenomenal wholesaler that has done it all from Salt Lake City. He has been doing flips. He has done wholesaling and he’s doing it in a really interesting place, in Utah, in Salt Lake City. We’re going to deep dive that as well. Mr. Darryl Evanetich.

How are you doing, Brent?

I’m doing excellent. I’m glad that you joined me. On the YouTube channel, if you guys want to see the video of this because it really helps to see. Communication has a lot to do with visuals. Make sure you go to Brent Daniels Real Estate on YouTube and check it out. Darryl, Salt Lake City, you’re there. Your deal boards are exploding. You’ve got a lot of things going on. Tell me, what is going on in your business in Salt Lake City and also in Ogden?

We’re ramping it up. I’m growing my team. I hired my second acquisition manager. I have two acquisition managers, two full-time cold callers, and a team of VAs who help with all our back-end office stuff. We focus on Salt Lake but it’s competitive down there and our numbers just weren’t hitting it. We’re heading back to the two counties up north, Davis and Weaver County, where you can have a lot more success. It’s not as crowded. It’s just fewer headaches and more money. It’s a no-brainer.

When you talk about a team, it looks like you have office space there. Is this an office? Are you in your house?

It’s an office right out in my brokerage, right around 240 square feet. We got three desks in here and a room for a fourth. I got a view of the mountains looking over. It’s good.

You came from a traditional background, right?

Yes. I was an engineer for the Air Force for 8 years, worked at Wright Patterson Air Force Base in Ohio for 5, and then transferred over here to Hill Air Force Base up in Ogden for 3 years. In September 2018 is when I took the leap and went full-bore wholesaling.

Are you done with the military?

I was never active. I was a civilian. I sent my resignation letter in. On September 7th, 2018, it was a done deal.

You then got your real estate license. Is that right?

I got my license in 2017. I slowly bought my first rental in 2016 and I got my real estate license right after that and then slowly accrued. I have three rental properties. In 2018, I did three flips and I had three more in 2019. I slowly started working my way up.

 

WI 301 | Cold Calling

Cold Calling: Wholesaling is a lot more streamlined.

 

Why did you get your real estate license? Why did you go from the job that you had, which you probably could have done for a long time, to getting a real estate license?

I wanted access to data. I also wanted to help people. I wanted to be on the seller and the buyer side of transactions. I also had a real estate coach and we were brainstorming, “Where do you want to go in ten years?” As we went through my numbers and told him how much I wanted to make and what I wanted to be producing a month. He is like, “Your income with the Air Force isn’t going to cut it. We need a secondary income. You like real estate. Why don’t you get your license?” I was like, “It’s not a bad idea.”

One thing led to another. I got my license. It helped me with my flips. I also helped a lot of buyers. I focus mainly on investors, helping them find duplexes, and multifamilies. It is because I’m a numbers guy. I’m analytical so if it works in the spreadsheet, it works for me, and that’s how my clients are, too. That’s how I got my start.

What was this coach? It wasn’t a real estate coach. Was it a business coach?

He was a real estate coach. It’s Matt Atkinson of MJA Real Consulting. He’s based locally on South Jordan. We have one-on-one calls, a 30 to 45-minute call into his training program. He has given me a lot of data in 30 minutes and I still utilize some of the tips he gave me.

That’s what got you into the business. You got into traditional. How did you stumble across wholesaling?

I did traditional. I bought my first couple of rental properties on the MLS, and then I did the BRRRR Method, the Buy, Rehab, Rent, Refinance, and Rent It Back Out. I did that through my lender who’s also my real estate coach. I bought that from a wholesaler initially, and I was like, “Okay.” I got my first taste. Cody Hofhine is also a local here. I saw him speak at the REIAs. He was talking about, “If you just put your mind to it, those $20,000, $30,000, $40,000 assignment fees are coming.” I was thinking, “That would be nice, but there’s no way I could ever hit that number.” That planted the seed.

After I did a few flips, saw what the assignment fees were, and how much work I had to put in to make the same if not, maybe a little bit less-than-some scenarios, I was like, “There’s got to be a better way.” I went to wholesaling because it’s clean and efficient, and there’s the velocity of money. Once I get something going, I control every aspect of the transaction. I can make everything happen a lot. Whereas flips, I’m hamstrung by my contractors by listening and waiting for someone to buy it, and by the city and the permits. Wholesaling is a lot more streamlined.

Wholesaling is essentially sourcing opportunities. That’s what wholesaling is. I am convinced and believe that it is the bedrock of building a successful real estate investing business. Once you learn how to source the opportunities, you get the absolute best deals and you get so much equity. If you decide to keep these properties, flip these properties, and source the deal yourself, you have an advantage because you can wholesale, flip, or hold on to them. You’re talking about net worth, that legacy wealth, that cashflow wealth, or being able to purchase the property.

Darryl mentioned a BRRR Method. What that does is you invest your money into it, and then you refinance, pull the money out, and still keep 20% equity. You can’t do that if you don’t buy a good deal. You got to be sourcing the deals and doing that BRRR Method. That is so powerful. It depends on what lender, but if you’re talking to a conventional lender, you have ten golden tickets. You can get ten rental properties in conventional financing, which have really good interest rates. Why wouldn’t you want to get and find the best deals to use those ten golden tickets?

There are other lenders that will open it up and you can get more conventional financing, but the interest rates are going to be higher. It’s interesting. I want to dive into your analytical mind a little bit. You were saying that with your coach, you had goals for your ten-year plan. As an analytical mind, you’re always going to be based on reality. You’re not going to go, be crazy, and be like, “I’m going to make $1 million a month in 90 days.” How did you analyze and break down what you wanted your income to be by the time that ten years have passed?

I picked a number. I said I wanted to have at least $10 million in assets. I picked my number and how much I wanted to make from the passive income stream. I can’t remember what it was at the time, but it was three times what my salary was. Somewhere around $22,500 per month is what I wanted to be generating. I had to figure out a way how to do that. The passive income stream is great, but you also need income to put into these passive income deals and equity. I need to figure out a way to get that money in there.

I broke it down into one-year targets. “Where do I want to get to in a year?” That seems impossible so we break it into 90-day targets. It’s like, “What do I have to do in the next 90 days to try to get to my goal in a year?” Those 90-day goals seem achievable because if you look at your year goal, that seems pretty impossible, but in 90 days, you think you can hit it.

 

Wholesaling is clean, efficient, and there’s velocity of money.

 

What my 90-day goal was in September 2018 when I resigned from my job and started wholesaling, was I wanted $112,000 in assignment fees, plus-minus, from what I got from my flips, as well. That’s what I set out to do. I made $0. I didn’t hit anything but it was exponential. You got to keep in mind that compounding factor. What’s so important about it is people need to just keep going. They quit month 3 and 4, but month 3 and 4 is when everything starts to happen.

If I quit after that 90-day challenge, I would be a little bit in debt. I’d have no money coming in. My flips weren’t going well but I put my head down. I kept going and grinding and working harder. January 2019 happened when I got a bunch of properties under contract. February, I ended up wholesaling four properties. March, I wholesaled two. April, I wholesale 2, and then, I’m back up to 3. I then got a call from someone I talked to in October. They want to sell their house. It’s all compounding and coming in.

It’s filling up that lead pipeline. Once you have the data and the information over enough amount of time, you can start predicting your business. You can start predicting how long it takes from the first contact to when you get paid on it. That’s an important metric because it keeps your mindset churning along.

Another important factor is when you close a deal, you look at how many leads you need to get that deal. You then don’t have to replace one lead that you close. You have to replace how many it took for you to close that. Say, it takes twenty leads to get a deal. When you get that deal closed, you have to replace twenty more leads. You got to keep the engine rolling. You got to keep the train just cruising down the tracks.

Momentum is important in this business. You got to keep going. You got to have blind faith that it will work. It’s the law of cause and effect. You are putting so much cause and so many conversations out there. You’re talking to so many people. The effect is you’re going to get deals. If you’re having quality conversations with distressed property owners, you win. How are you finding your deals?

I don’t do any mail. It’s all TTP and we’re also texting as well. Those are the two big pipelines that we’re using. I have my two cold callers, my two acquisition managers, and they’re on the phones all day. We focus on motivation. All these videos that you put on YouTube video, they’re 8 to 9 minutes long. I’ll send those clips and I’ll be watching them. At 10:00, 11:00, or 9:00 PM, I’ll send them via Skype. I’ll say “Watch this. Let’s talk about it in the morning.” We’ll then train on them.

We’re calling a list. In my first four months, I was driving for dollars. I did that plan on how to make $180,000 in a year. That’s what you sent. On my lunch break, I would drive for dollars. I would come back. I would skiptrace them. I would cold-call them, rinse, and repeat. We would focus on the driving for dollars list, our high equity absentee list, and your worn-out landlord list. We exhausted those lists.

We’re focusing on everything so we’re doing the world list. We’re browning out. Anybody who hasn’t sold their house in five years, you’re getting a call. That has equity but in Utah, it’s a given. You don’t even need to look for equity. If you haven’t sold your house in five years, you have a lot of equity in your house. We have the benefit of the doubt of knowing that if you didn’t sell in the last 3 to 4 years, you have a ton of equity.

When you started out, were you making calls yourself?

I was a one-man show for probably 2 to 3 months. I was making the calls. I was skiptracing and loading them into Mojo. My first hire was a VA. She dealt with the back-office stuff so I would drive for dollars, export, and send the list to her. She would skiptrace it, and load it into Mojo for me. When I would come to work, I would be on the phone all day. That got super tiring because I would cold-call plus follow-ups.

I did the Call Motivated Sellers program. I have two of those people which are awesome. They are calling four hours a day for me in the mornings. I ran my business off working those leads, plus my old leads. I started growing even more from that. I then hired my first acquisition manager. I was training her to do the follow-up calls, and then we would go on appointments together. She just got her first deal all via text using Google Translate because she speaks Spanish. It’s pretty rock solid. After that, I hired my second acquisition manager.

How do you use Google Translate to text and get deals?

Copy-paste.

 

WI 301 | Cold Calling

Cold Calling: You’ve got to keep in mind that compounding factor. People need to just keep going because they quit at month three and four but month three and four is when everything starts to happen.

 

Walk us through that. Is it an app? Is it on a computer or do you just go to Google Translate?

It’s Google Translate. They have an app on your phone. You can do it. Whatever he says in the message, we’ll copy-paste, and put that on Google Translate. It will translate to English, and then we’ll write a response, translate to Spanish, and send it to him. It was about a week-long negotiation via text and he said, “Send the contract over.” We did and he signed it.

Did you have to translate the contract?

No. His wife speaks English. She ran it to him.

Let’s talk about a juicy deal. Let’s talk about a massive deal, about something big. Let’s break down, deep dive, and put you in the hot seat on one of these old-school-Tom-Krol hot seats. Let’s talk about a deal. What deal do you want to talk about where you picked up the phone, or somebody in your staff picks up the phone, and through the magic of talking to people, you get a big deal? Let’s talk about it.

My deal was wholesaling an 11-plex.

It’s multifamily. If you’re not going after multifamily, we’re going to snatch it all up but let’s start talking about 11-plex. Did you purposely go after and skiptrace the owners of 11-plex? How did this happen?

No. It’s full circle to your program. I picked this lead up in September 2018 when I first started driving for dollars. There are 11-plexes 0.6 miles from my office. It’s probably one of the first couple of days I was out driving for dollars. The 11-plex is broken up into three buildings. There was a 4-plex, a duplex, and a 5-plex. The 4-plex was on the street, the frontage, and it looked ratty so we skiptraced that and called the owner. He was like, “I’m not looking to sell now but after the first of the year hit me back up, and let’s talk.”

I followed up with him in February 2019. Things led to negotiations. We finally got it under contract in March. I never underwrote an apartment deal. I don’t know how much they were worth. I didn’t know what I was doing. I reached out to everybody in my market saying, “Who knows how to underwrite this? Who can help me out?” I had a lot of good help from Jordan Atkin and from other people around. They took me under their wing. It was crazy.

I ended up trying to take it down myself. We got it under contract. Tyler Kohler helped me get the loan through Freddie Mac. We’re underwriting this whole process. He got 10% of the deal, and then I got the other 90%. I was in the process of underwriting it. It was so stressful running a wholesaling business and trying to syndicate money for an apartment deal at the same time. Learning two different things, I’m like, “This is crazy.”

I was at a local REIA, talking to my insurance agent. I was like, “This 11-plex is stressing me out. I need syndicate money and I don’t have the time to do it anymore.” He’s like, “I’m in the market to buy.” I’m like, “Really?” He’s like, “What do you want for it?” I told him I had an under contract for $1.4 million. I was like, “I can sell to you for $1.45 million.” Seven days later, I got a wire in my account for the $50,000 assignment fee.

There’s a driving-for-dollars lead. Are you using an app to get the info? What do you use for driving for dollars?

We did the driving for dollars app and then we just switched to Deal Machine because the driving for dollars didn’t have a team mode.

 

As long as they get their money and we solve their problem, everybody’s happy.

 

We use Deal Machine for a team of six that I have as well. You then exported, got the owner’s info, and called them. Did you call them or to somebody else call him?

I called them. I followed up with them relentlessly for 6 to 9 months. I negotiated the contract.

How much was that wire that hit your account?

$50,000. I got to thank you. It was all because of you. You said you put out the $50,000, and he was trying to beat me down negotiating. I was like, “I need $1.45 million,” because, in my mind, I was like, “I need to be in the $50,000 club.” I wasn’t going to take anything less.

If you’re not familiar with what we’re talking about, in the TTP program, I tell everybody that’s part of it that they owe me a $50,000 deal, a massive deal, to join the $50,000 Club. We’ve got dozens of people in this club. It is because I believe your brain chemistry changes when you get $50,000 or more in one deal. I really do. Don’t you feel like the sky’s the limit? Like you could do this over and over?

Once you opened it up, it seems so much more possible because that was playing with, $5,000 $10,000, and $15,000 assignment fees. Once I had those big ones, I don’t even waste my time with anything under $5,000 to $10,000.

By the way, you’re going to do more and more deals. It happens like that. When I was starting out, for $10,000, I was like, “Five figures on a deal? This is bananas.” I then remember I got the first $40,000 deal, and then I got my first $72,000 deal. It opened it wide. We now average $27,000 a deal. Life is so much better because we do bigger deals. It’s all because of the mindset. It is like changing up your whole brain chemistry to think differently. It’s a different neural pathway. It’s fantastic. I love that you did it. You did it so fast. In the scheme of things, seven days later, in this thing. When did you join TTP?

I want to say, August or September of 2018, somewhere in there.

You’re building it up and building it up. Are you still doing traditional business? Are you still a realtor?

Yes, I’ll list my flips, and then I’ll help out selective investors who buy multifamily specifically. I’m focusing mainly on building my wholesale business up to get that cashflow rolling in and then probably start deploying capital into equity and properties.

You’re in a really tough market when it comes to the Department of Real Estate. It looks at wholesaling in a different light than it does in other places. If you don’t live in Utah, if you don’t live in Salt Lake City, that’s fine, but this could be a model for other cities and other states to adopt. You’ll have to do it a little bit differently. It’s not just about assigning your interest in the contract. Darryl is not an attorney so if you’re in Utah, or wherever, check that out, and then talk to an attorney about the right ways like you did. What’s the right way to do it there?

I’ll probably forget a few things but the gist of it is, especially if you’re a real estate agent, the division is focusing on that if you want to wholesale in the state, you’re going to need your real estate license. It is the word coming down, but it’s still up in the air. The main thing is, as an agent, you need to have full disclosure to the seller that you’re an agent. In your addendum, you need to have them sign a for-sale-by-owner addendum agreement stating that they represent themselves. The identity needs to state that you don’t have any fiduciary duty to them, that they represent themselves, and they’ll seek their own legal counsel and I’ll do the same.

You also want to disclose that you have the right to market the property, to show the property or show pictures, things like that, which is to get your cash buyers into the house, to send out emails with pictures and videos. You need that disclosure upfront. You also have to let them know that you’re going to assign the property, that it’s assignable. In the actual REPC, the Real Estate Purchase Contract, number 9 or 10 states that this contract is not assignable. In the addendum, you need to reiterate that it is.

 

WI 301 | Cold Calling

Cold Calling: If you haven’t sold your house in five years, you have a lot of equity in your house.

 

Also, you need to reiterate to the seller that, “I could be either taking this down myself and making a profit, or I could turn around sell the next day for up to $1 million and make a profit. Are you okay with that?” Every time, they’re fine with it because we’re providing value. We’re fulfilling a need for them. As long as they get their money and we solve their problem, everybody’s happy.

Did you have any problems when you disclose it?

No problems at all.

They get so scared. They think that it’s some huge hurdle, but you’re only having a conversation. “This is the process that I take in my business. Do you understand? Does it make sense? Do you have any issues?” “No.” “Great.” Boom you go. They want it to be as simple as possible. Remember, wholesaling is trading equity for speed and convenience. We’re providing it. We’re talking to people every day. We’re reaching out.

These are distressed property owners that we’re having quality conversations with. We’re providing an unbelievable value there. I don’t know if you’ve ever had a situation where you’ve been distressed by property but it is terrible. It weighs on your mind. It weighs on your shoulders. It affects everything in your life. It affects your happiness. When somebody comes along that has a solution to that problem, it is an incredible value. That’s what we’re doing out there.

You really got to look at the mental construction of how you think about the tasks that we do on a daily basis to find these opportunities. We are truly solving problems in this business. It is a blessing to these people. It is not a burden. Go out there, talk to people, and make a real impact in your community because you are doing an amazing service to the community.

To add to that, I have one more thing to circle back on what the division wants to see. They’re frowning upon assigning properties. The way that we work around it is, in the seller’s name, we’ll put a trust. We’ll create trust, the 123-Main-Street trust, and then I, as the agent, will be the buyer’s agent representing that. When I assign a contract, I’m closing on it with the trust but then I sell the beneficial interest of the trust over to the end-buyer. A separate transaction and a trust sale is personal property. It’s not considered a real estate transaction. Again, I’m not an attorney. It’s what an attorney told me. I’m just relaying that out.

Find a good attorney in Salt Lake. To wrap this thing up, how do people get a hold of you? If people want to network with you or just be in your world, how do they find you? What’s the best way to communicate with you?

You can find me on Facebook or Instagram. I’m active on both of those. I also have a website, DarrylEvanetich.com. You can reach out to me on there. I’m pretty active in the REIAs. If you want to meet up with me locally, I got an office in Bountiful if you want to stop by and say what’s up.

I appreciate it. There are a lot of people that read this that are in Salt Lake or Utah, and they’re wondering about some of the different regulations with wholesaling or assigning deals. People are understanding that you can drive around in the community, find rundown properties, get their phone numbers, give them a call, and see if they consider an offer. This is proof here. You can take your whole brain and change everything in the way it’s wired by getting a massive deal. You are proof positive of that. Thank you so much for joining us.

It was a good one. Thanks for having me on Brent, and everybody.

If you are interested in joining the most proactive, the most on-offense group in real estate investing, you need to go to WholesalingInc.com/TTP. Check out the page. Scroll down. Look at what the program is about. Check out the testimonials. If it seems like the right fit for you, if you have enough self-awareness to know that this is what you want in your life, then sign up for a call to be the absolute best call of your year.

Second to that is the Deal Machine app. If you go to DealMachine.com or you go to Deal Machine on the App Store on Apple or wherever, use TTP as a coupon code. You get $9 off. It is a phenomenal resource for you out there when you’re starting your business. Check that out. Darryl, you’re the man. I really appreciate it. Rhinos out there, I encourage you to talk to people. Until next time. I love you, guys.

 

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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