You’ve probably already heard about cold calling but do you have a clear idea how powerful it can be? Today’s episode will provide all the proof you need!
Chaitanya and Prakash are two rockstar rhinos who are crushing it in the wholesaling market. In fact, they have already earned a whopping 1 million dollars over the last 12 months.
What’s even more amazing? They earned half a million dollars from just one TTP call. All that while doing wholesaling part time!
If you’re looking for a highly lucrative business you can do on the side, there is no doubt wholesaling is the way to go. If you need help dominating the wholesaling market, listening to today’s episode is a huge step in the right direction!
- What their current system is like and how they keep things organized
- The advantages of talking to as many people as possible
- List that led them to their biggest deal
- Why multi-family is a different ball game
- Why it pays to do some research
- How they sold the property
- The biggest advantage they had
- What helped them gain the trust of the seller
- Why it pays to bring an expert in
- What gave them an advantage in terms of negotiating
- Gold nuggets they’d like to share with listeners
- Best way to get in touch with them
- Call Motivated Sellers
- Wholesaling Inc – TTP
- Mojo Dialer
- Brent Daniels Youtube Channel
- Lifestyles Unlimited
- Batch Skip Tracing
- StepUp Home Buyers
- Email Address: firstname.lastname@example.org
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Brent Daniels: Welcome to the Wholesaling Inc podcast. I am your host, Brent Daniels, and I have to warn you. This is a warning, there is going to be a lot of bell ringing on this episode, because I have two guys, out of Houston, Texas, who are working their wholesaling business part time, and they made $500,000 on one cold call, on one cold call, and over a million this year, right?
Brent Daniels: Over a million dollars this year, it is my pleasure to bring to the podcast, Mr. Chai and Mr. Pete. Say hello to everybody.
Chai: Hey guys.
Pete: Hey guys.
Brent Daniels: So listen, that is a big opening statement there. $500,000 for one cold call, a million dollars as part-time. People listening to this are going to be like, “What is going on with these guys? How are they doing it?”
Let’s give everybody a little bit of platform to work off of. Let’s break it down. Pete, you first. Tell me about you, and then we’ll go to Chai, and tell me about your background, and how you got into real estate.
Chai: Just to stay modest, one quick correction there, million dollars in the last twelve months, not this year alone, so I just wanted to stay modest in terms of numbers.
Brent Daniels: Okay, in twelve months, yeah.
Pete: I’ll start with my introduction. So, I’m a mechanical engineer by profession. I’ve been into oil and gas for about twelve years now, and me and Chai, we’ve both been trying to get into real estate business from ’11, ’12. We have some buy in holds, which we will talk about when we get into the discussion, I think.
We have common goals, and starting last year, January, we teamed up and said, “Hey, why not do something together?” And we started our wholesaling. So, it’s not a long journey like a lot of wholesalers, we’ve been a year and a half. We did wholesaling for us in the past, but just for buy and hold, we never sold anything in the market.
Brent Daniels: Got it, so you guys were just sourcing deals for your own portfolio?
Brent Daniels: Yep, got it.
Chai: Yes, so my name is Chai. I’m also an engineer by profession, and I’ve been in oil and gas for a while, last ten-ish years. And I mean, I came really, to US to study, to do my masters, just like most of the other Indian students here.
But just like Prakash said, both of us have similar goals and we always wanted to start something of our own. Both of us have prior different businesses back in India, and also here. Actually, we had a business together before this, and then we closed it down for certain reasons. And then we both started looking into real estate as an investment opportunity, not quite as a business. And we really didn’t know what we were looking into, and one thing led to another. We started by looking at buying single family houses as rentals and investing in multifamily as passing investors.
And then I met someone, his name is Moon Kim, and a big shout out for Moon Kim, which is why both of us are here today. And he’s one of the wholesalers in Houston area as well, very, very popular guy. He’s the one who introduced me to the concept of wholesaling, which we started using it mostly not for our rental properties, but our own portfolio. And then last year, me and Prakash, we were out of our previous business and we were like, what the hell, let’s give it a shot, make it a business. And then, here we are a year later.
Brent Daniels: I love it and break down real quick for everybody listening and watching this on the YouTube channel, what is your guys normal work schedule with your full time engineering job? How do you do this, when do you do your wholesaling business?
Pete: So both of us travel also, it’s not only to find jobs, but we also travel internationally. Sometimes we are out for eight to 10 days at a stretch. So our regular day is business, go to work as usual, and in the evening … In last one year we are able to divide responsibilities pretty good, so Chai handles the marketing part, I will do the acquisition part, and then at the back end we team up again to sell the property, so we know our responsibilities very well. And I’ll do the follow-up in the evening, Chai will do some follow-up, so Saturdays and Sundays where we will be mostly full time and we have done some mailing we have start, because results were not that great.
Brent Daniels: Sure.
Pete: But 90% of our business has been through cold calling, we have on an average two callers in Philippines, we are trying to get someone locally, Costa Rica, someone American born brought up, so we have not started there yet. So I think we have structured it very well, we qualify the leads very well, we don’t spend a lot of time working on it so it’s mostly part time, I would say on an average, two hours a day, in the evenings.
Brent Daniels: Love it and just for resources, guys, what Pete is talking about is callmotivatedsellers.com, they’re the group that recruits Americans living in South America to make these calls. I’ve used them for two years and made a ton. So check them out, but I love that you going that way, but I think the real important thing here is, what I’m hearing here is, you guys don’t have a lot of time to mess around with unqualified leads? Right?
Pete: Oh yeah.
Brent Daniels: You guys [crosstalk 00:06:37] must be qualifying these leads right off the bat, because you only have the evenings and the weekends to follow-up with these people. You’ve got two … Are they full time callers?
Brent Daniels: Two full time callers, calling and bringing you leads, leads, leads, leads, you have to sift through all those and find the right ones, right?
Chai: So at a point, we actually ramp up from one caller all the way to four callers, and we quickly realized we had a big constraint of time, between both of us because of the full time jobs we have. And that is why we scaled it back down, but we also worked on our processes, we worked on the qualification of leads, we learned quite a bit, of course, over the year and now we are actually trying to find acquisition agents before we scale back up to that four, five, six callers level. So when we started out, we knew that our time is a big constraint and none of us really wanted to leave our jobs right off the bat. Even today, we have not decided what we want to do. We like our jobs, honestly it’s nothing wrong about that. A lot of people complain that they don’t like their jobs and that’s why they got into business.
Pete: But we love our jobs.
Chai: We trying to do something different and one of the challenges that we want to take on for ourselves is, try to grow this business part time and somehow put it on semi-auto pilot, so to say, by the time we quit our jobs, we will not have another job.
Brent Daniels: Right.
Chai: That’s how we see it. So, so far so good. Let’s see.
Pete: More into granularity, we have about 1200 leads in our system, I’m pretty sure there’s a lot of money hidden there, that’s why we are trying to hire agents, so if they can pick it up, our average deal is around $25,000 in assignment fees. And our processes are very efficient, our procurement cost I would say per lead is under $2,000.
Brent Daniels: Right, I love it, it’s because you’re talking to people. Here’s the thing. It is, it truly is, it’s not a mystery here. But I think that you guys are on the next level when it comes to really putting the systems in place so that you guys can be as efficient as possible. And I really want to touch on that because I know for me there’s no way my mind does not work as efficiently as you guys, when you guys have these leads and you have these processes that you guys go through.
So let’s break down, before we get into the nitty gritty specifics on your mega huge deal, which I’m so excited to talk about, people have been asking me about this, in the TTP group and Wholesaling Inc and everything for a while, so it’s going to be a real treat to break that down but, your processes, okay, so you skipped trace a list, you put it into a dialer, you have your people in the Philippines give them a call, and then those leads come in, then what happens? How do you organize this, there’s two you guys working part-time, how do you organize this?
Chai: So let me touch on the systems portion a little bit then Pete can talk about the acquisition process.
Brent Daniels: Yeah.
Chai: So, from the system standpoint, we have, just like you said, we get a list and we started out by skip tracing a general absentee owners, with a set criteria, IR equity, high equity and longer ownership period list, and we started doing that and we quickly realized that all the absentee owners are more than likely investors and it’s not that they are no leads in that list, there are a lot of leads, a lot of people want to sell, there are tired landlords, there is ton of different issues why people want to sell. But then we quickly moved on to different high distress factor lists, such as, what you’ve been preaching about, tax delinquent lists, or dialing for dollars lists, you name it.
So we explored a lot of different lists. So we take that list, get it skip traced, and we are going through batch skip tracing of course, just like you have taught, but we went further. In fact, we actually got a really, really great deal with this company IDI, simply because we are skip tracing, getting ready to skip trace 100,000 leads now. So that list goes into our CRM, and our CRM is very well optimized, I have to mention that here. And our followers, all they have to do is just make a call and put notes within that CRM. That’s it.
And the lead automatically transports to Podio, where we can assign tasks. And we are still … Just for the TTP family, we are still working on the basic version of Podio. We do not have Investor Fuse, we have been working on basic version of Mojo, nothing fancy programming. It’s just we got creative because we were on short budget to start with and now that we don’t have a need to go to another system. So that is something, after we get that lead in Podio, we can assign tasks to each other or to ourselves, based on what the conversation was. We have another section in our Podio where we can put our own comments about what happened in the last conversation, so if Pete is on vacation, and I’m picking up his lead, I can read those comments quickly and assign a task to myself, and appointments and so on. And then … Go ahead, Pete.
Pete: No, I was going to say it’s really difficult to miss, because if you miss an appointment or miss the followups, we make sure it pops up on our phone, and we do everything. It’s on the Podio app. Next I’ll follow up, I think we have systemized it very well. We’ve been in Houston for a long time, so we know the market very well. We know the neighborhoods and what price we can move the properties at. So I think that’s also a stronghold. We both have flipped properties, so you, on the phone we can get the multi vision level, we can kind of figure out the rules, foundation, what the reality is going to be, what the repair is going to be, so that kind of helps us with qualifying the leads. Right now we’re going over a lead that doesn’t want to sell.
Brent Daniels: Got it. It’s as simple as that, right? You’re just looking for extreme motivation, you get to the point, you go through the four pillars of pre-qualifying, condition of property, timeline to sell, motivation, price, and then from there, the best leads, the people that are actually going to do business with you filter to the top, you work with them, and you get them under contract, right? That’s pretty much the system.
Pete: I have to give a lot of credit to this term TTP, and the more you talk to people, the more you’re going to quickly be able to filter out the looky-loos that you’ve been preaching about, so we have to talk to a lot of, lot of people in order to get that feeling, who’s the right lead and who’s not. So credit definitely goes to TTP for that.
Chai: We have scaled up big time and now it’s a lot more efficient after we joined. There are a lot of smart folks [crosstalk 00:13:50].
Pete: Yeah, absolutely.
Chai: Yeah, we learn something new every day.
Brent Daniels: Yeah, the TTP family supports … The support is unbelievable, but what you were saying is absolutely true, I know with my acquisition managers, I know with myself when I was in the field, is I knew within 15 seconds if I was going to get that deal or not. You know what, if you talk to enough people, you understand their tone, what they’re saying, what they’re really trying to express to you, what they’re trying to communicate to you. You see if they’re kind of shifty or if they’re trying to put up stiff arms or bubbles around themselves to get the biggest and best deal, or if they’re not really motivated, or if they just want you to basically give them an appraisal on their property. And it comes with talking to a lot of people. I did a video, guys, the other week and I calculated, I talked to 45,000 people. 45,000 sellers when I was making calls for years and years and years, and I’m telling you, you develop the ability to understand if somebody is going to do business with you really quickly.
Chai: Yeah, I think that too.
Brent Daniels: So, let’s transition. Let’s talk about this big, massive … So when I talk about massive deals on this podcast on the YouTube channel, Brent Daniel’s YouTube, check it out, I talk about $50,000 plus. If you do a $50,000 plus deal, I believe it changes your brain chemistry forever. You start thinking bigger, and you start getting bigger deals. You guys just blew this out of the water. You guys went absolutely bananas with it, and we need to break this down. So, let’s go from the start, let’s go from the initial … Let’s talk about what lists this seller was on, and what you initially called them for, and I’m going to just let you guys run with it. Go ahead.
Chai: This person was on the waiting list, and I’d been talking to the woman. I had a couple of phone calls, the lead was not that great. My last phone call before the appointment, she got down to around 80% to 82% of the market. And I’m like, okay, now that’s getting real. They made an appointment, I went to go see … saw the house, we bargained the price. I was almost there, I don’t want to waste anymore time. So I just started talking. They were older folks and I like to talk to them, like how’s everything going, they told me about their background and what not and then I just [inaudible 00:16:11] and I think, hey, you guys have anything else? We are not the right buyers for this property, but do you have anything else? And she said, we have a multifamily, 120-unit and a 60-unit which we want to sell. But that woman … I said okay, how much you want to sell this house for, and we signed it.
Brent Daniels: Yeah. So you originally called, she was on a vacant list, and then you asked the every important question, because you were like, you know what, this isn’t going to be a deal, it’s not big enough, it’s not juicy enough, it’s like 80-82%. I can’t really make much on this thing, but oh by the way, which is so important, we get so many deals by the oh by the way, oh by the way do you have any other properties that you would consider selling, or would consider an offer on. What you guys hit them with, they have 120 units and a 60-unit, 180 apartments these people own, and you called them originally on a vacant house that they weren’t going to give you a deal on.
So you ended up locking up that deal just so that you could show them that you guys were serious, that you guys were committed, that you guys are going to close deals. Because to a lot of people, just closing a deal, you have a client or a friend for life. By you actually completing a transaction builds up so … You cannot pay for the amount of confidence that that gives that seller when you actually close that deal. So you guys took a calculated risk, and you closed on that house. Then what happened?
Pete: We closed in about 8 days, and a day after we closed the property, both of them brought us to the city that the properties were. And we walked along the properties, and that evening, Chai, remember, I think we signed the contract at [inaudible 00:17:54].
Chai: Yeah, and almost at midnight, we were there at the house, going over all the contracts for multifamily. So backtracking a little bit, when we first went to see them … So he saw the house and he told me, hey, we have to do this deal because they have a 180-unit behind that, and we were like okay, let’s go see the house. We went there and they actually came to meet us, when just in the conversation, we started moving the conversation towards the 180-unit, because we were really not interested in that house, because it was too high. We actually ended up losing two grand at the end of the day.
Anyways, that’s not a big deal with the amount of money we made on this one, but when we asked them for the price for multifamily they gave us a … they priced that. And compared to Houston market it was still a good number, and that got us really motivated to do this deal. So then we asked them, are you going to give us a chance on 180-unit if we don’t close this deal? We asked them that question up front and they said yes. But still, somewhere we knew that they wanted to see us in action, before they introduce us to this big boy deal.
We made a conscious decision to lose money on that property, and take a risk on that 180-unit, in spite of knowing all these things. So it was a business decision which would not have been accurate in my life so far. So the moment we closed that deal, they agreed to drove us to that apartment complex where we went there and we were … The whole point of going there was just to see the apartments. And we saw that [inaudible 00:19:35] it hasn’t been run very well in quite some time because this is a really old couple, the husband is almost 90 years old. So on the way back we were talking about it and she invited us over to the house, and we were like, okay, this means something.
So we made a few calls on the way, to people we knew, and some of the things from past experiences … I’ve been a member of this group of investors in Houston called Lifestyles Unlimited. They teach you how to invest in multifamily. And some of Prakash’s friends also invest in multifamily. So we called all of our contacts on the way from Beaumont back to the home. We were ready, in case they are ready to sign. And to our surprise, they were like, okay, let’s sign this deal if you agree to this price, on one condition, that you have to put down 1% non-refundable earnest money. So on a price tag of five and a half million dollars, that was $55,000. And that’s where our knees were really buckling. [crosstalk 00:20:42]
Brent Daniels: Yeah, I bet.
Chai: So we make another business decision to save our previous business decision. But again, we got into it, we knew what we were doing, of course. It wasn’t like coming … We both have done multifamily before, studied multifamily, and so when we got some advice from these big boys in multifamily, I just wanted to mention this getting advice about multifamily specifically, because if anybody in [inaudible 00:21:13] family get a deal like this tomorrow, just be careful with signing anything, where you have to put down so much money. If you don’t know anything about multifamily, find someone or call us, we will help you out.
Brent Daniels: Beautiful.
Chai: So it’s a different ball game, that’s what I want to say here. And the stakes are really high, if you want to play that game.
Brent Daniels: Well, I’ll tell you … I can’t tell you how many times I would be driving, especially when I was getting my business going, how many times I would be calling people that knew way more than I or that were buying a lot of properties in a specific area, or whatever, just to double check that my numbers are right, or just to find out if there’s something that I should know. That is the beautiful blessing that comes with networking, with talking to people in your marketplace. You guys said that you guys have a Lifestyles Unlimited group that you guys are a part of.
That’s incredible, some real estate investor associations are great, or just going to some Meetup groups that are being thrown by people that have really good reputations. Meet with people that are doing business, and the more deals that you do, the more that you’re going to be able to communicate with these people, because they want those deals. But it’s so huge, while starting out to be able to pick up the phone and get that confidence boost. I have TTP students here, TTP members here in Phoenix. They’ll call me on the way to an appointment, just to double check. It’s just huge, it’s just a huge, huge advantage to reach out and get the expertise. Don’t fake it till you make it on some of these bigger deals, especially if people want you to put cash down non-refundable.
Chai: Yeah, and overall in this business I think the key is to educate yourself. The respect you get from the seller, the seller is not going to sell or sign on anything they don’t think you know what you’re talking about. So I think that helps us a lot, we do our homework a lot, even before the appointment, we look at the comps, we know within plus or minus 2%, what we can sell the property at, what the repairs are. They really helps your sale, getting [crosstalk 00:23:21]
Brent Daniels: So you guys get this thing locked up at 5.5, and you guys put $55,000 non-refundable down, and then how did you sell this thing?
Chai: The first portion of the selling process was really not the selling, it was mainly to underwrite that deal, which is what any other broker will do, so one thing to highlight here is that these deals, a deal this size, anything above 50-unit, 100-unit for that matter, goes to big brokers around frankly, some of them are Marcus Millichap, JLL, or CBRE. It doesn’t come to wholesalers like us, very seldom they do. All the stars are aligned, so when these brokers look at this deal, they have people on payroll that do nothing but underwriting deals, so they’re expert at this, they know the market, they have sold 10 other deals in that market before, so they have complete market data, which for one of us, like wholesalers, it’s hard to get. But there are resources to get that. There are ways to get that.
So that was one of the first, the very first steps for us to do, because when you’re starting to market this deal to buyers, buyers want all that data. They are going to ask you for what the cap rate, they are going to ask you what the rent roll is. All these technical questions you need to be able to answer. So that was the biggest challenge we had. We knew some of the terms but we weren’t professionals, well we’ve never worked as underwriters anywhere, so we got a lot of different people involved, we reached out to companies such as Marcus Millichap, Capital, a lot of these companies, the big brokers, they also have their capital divisions who will do this analysis for you. So they helped us out quite a bit to put the packet together, to market this deal to buyers, and then … You want to take the buyer question, Prakash?
Pete: So the 60-unit was … Which I didn’t mention, we walked each and every single unit. We knew everything, what was wrong in the multifamily. Each of the … All the repairs on both the units. So we took a couple of weekends off and we walked all the 180 units. So the 60-unit is where we partnered up with one of our … He’s been investing in the local area, he has about 2,000 units. He gave us an offer which was higher than what we exactly, what number we had signed it for. But by then we had done all our homework, we knew what the repair numbers were, so we turned around and it was a challenging negotiation, we almost dropped the offer, and our money was almost gone, but the seller knew that we were asking for a higher price and we did all of the homework. They turned around and agreed to our price. The way …
Brent Daniels: The seller did?
Brent Daniels: So they reduced their price.
Pete: Yes, they reduced their price.
Brent Daniels: Okay, to what?
Pete: They reduced their price, so we wholesaled that deal for $200,000 assignment fee and we reinvested back in the deal. It has a lot of opportunities there to grow, so I think we are looking at additional $200,000 on our return in investment in about 18 months. So that 60-unit deal is going to give us around $400,000.
Brent Daniels: And what about the … Well, first of all, I’m going to do this. I’m going to ring the bell for a couple different things. First, I’m going to ring the bell for the $2,000 that you lost on that single family house, and then I’m going to ring it for the $200,000 that you realized and then put back in the deal, and are going to make $400,000 on that 60-unit. And then we’re going to get into the 120-unit, so give me a second. So talk to me about the 120-unit.
Chai: The 120 unit deal … Both of these deals we put a packet together initially and we marketed them as if we are going to wholesale them. So there was no plan to keep one or keep both or sell both. We weren’t sure what to do with it, until we see the numbers, and just like Prakash said, after we talk to a few buyers, we got a few offers, they are all lower than expected, or rather lower than our assigned numbers, so we realized our underwriting numbers are correct, and then we went back to the sellers and because these underwriting numbers have been vetted by other brokers around town, there was no doubt that these are incorrect or anything.
So anywhere they go, even if they go to a broker, they are going to get that same offer, except they’re going to have to pay 6% in commissions, which they don’t have to pay with us. So that was the biggest advantage we had. And also, the whole relationship aspect and fruitfulness and the data driven approach have all basically helped us gain their trust. So they got their price down, for sure, but when we marketed it, we first reached out to someone we knew, who were being tested, and that’s the person Prakash mentioned owns 2,000 units in that area.
And he looked at both deals, and he was interested in one deal, and we felt comfortable going with him, so then that started he was decided on 60-unit. But he went with units because he said the numbers don’t work for him, and at the time the negotiation had not been done, so we went back to sellers and told them hey, we can only do the 60-unit but we need to drop 120, unless you go down on numbers. And we were talking to a few other buyers, who had made an offer at a significantly lower price. And we had never thought that seller would go down that much. So we went to the seller and told him, this is the story, we are going to buy 60-unit, but we are going to drop this one.
And then they quickly, they had a reality check, and then they came very close to the buyer’s offer. I mean, little bit less than the buyer’s offer. So it became a positive deal at the point. So we were happy and we were like okay, now we are not going to lose money, at least we’ll break even yet. Then it continued from there and then we had another round of negotiations with the seller, because we weren’t really making anything, and we had enough data points to present our negotiation strategy. So we bring back Laura and we finally got her down $100,000, below what the offer was. Our numbers were $100,000 assignment fee.
But again, we had another broker in his deal, sort of like a middleman, who facilitated this buyer site. We wanted to share some of the profits with that person, so we needed to sweeten the deal even further for ourselves and make it worth our while and all this headache that we’re going through and everything, so after we had a few rounds of walkthroughs and unit walkthroughs and when we had actual occupancy numbers and actual repair numbers and everything, we finally were able to bring that seller down by $300,000 on [crosstalk 00:30:54] so the profit on that deal alone is $300,000 of which we kept $210, and the rest went to that other broker. Even as of today, we regret not investing that back in the deal. But at the time, that was a different scenario and we had different mindset, so were like, okay, I think let’s take this money out and use it for our other plans. We have quite a bit of plans for the money we had, but at the time we did kind of regret that we should have gone back in the deal, with the investor that purchased it.
Brent Daniels: $300,000 assignment, 92 a broker, 210 for you guys realized cash income into your bank, and another 200 that you kept in the other deal, that’s going to turn into 400 in 18 months when I assume the thing is looking for steam and rents are raised and everything’s done, right? So over 600,000 from this one seller.
Chai: Right. Yes.
Brent Daniels: Minus 2,000. [crosstalk 00:31:59] Hold on, let’s get this real quick. It’s just incredible. That is incredible. Imagine if for some reason you just didn’t skip trace that address, or you just didn’t get the right data, or the right phone number, or your person didn’t call, or they didn’t answer the phone, or whatever, but all these things lined up. You talked about it. When the stars align, it just happens, but that’s the thing. I know for sure if you’re not making calls, you’re not going to get this opportunity. That is 100%, I’m certain of that. But if you are making calls, if you’re talking to people on a regular basis, you put yourself in a position to have a shot at something like this. Now listen, for the every …
This is far, way above my wavelength when it comes to putting together deals. You guys put a lot of work into this, a lot of effort. I think that your guys’ engineer minds really did the right amount of due diligence. It sounds like the brokers, you sold them on the idea that they can get paid on it to help you step, walk through the disposition on this and they got paid handsomely for it, which is so smart. A lot of people want to keep it all for themselves, when it makes their lives so much easier and actually gets the deal done if you bring somebody in that has that expertise, plus you are reaching out to people that knew what this would sell for, and you brought all that data points to the seller.
Which listen, I don’t care if it’s a condo, or a house, or a 120-unit apartment complex. If you bring data to them, it makes sense. If you want a price reduction, then prove why you want a price reduction, if you’re being serious about it. If you locked up something too high, because you hope that you could sell it, that’s the wrong way to do it. If you really thought that it was a deal and you locked it up, and it’s not, and you bring them an inspection report, or comparables, or just a walkthrough with a contractor and the breakdown of what it’s going to cost. These things matter, and it makes sense to the seller as opposed to just saying, hey I need this 300 grand cheaper. You want to do it or we’re out. [crosstalk 00:34:04]
Chai: Never going to work. [crosstalk 00:34:06]
Brent Daniels: It would never work, it wouldn’t work in a house. It wouldn’t work in a condo. You’ve got to bring some points to them if for some reason you locked it up too high and the market’s not going to bear what you thought it would. And that happens sometimes. I’m just …
Chai: And just to add to this thing, just like you said your engineer minds, that could have been the reason why you were able to do this, but I would like to add onto this. Both of us have engineering background, and have worked as an engineer before, but both of us now work in supply chain roles, so for people who don’t know what people in supply chain do, is we deal with contracts, we deal with negotiations, with some of the biggest, big companies, it’s like a million dollars contract that we deal on a day to day basis in our jobs, and one of the reasons why we love our jobs is because of that, and that’s what gives us so much more, almost unfair advantage when we talk to sellers. Because we have been trained for negotiations.
Brent Daniels: You have big deals too. Huge deals.
Chai: Yes, absolutely.
Pete: And you know, all those negotiations [inaudible 00:35:13], we focus the least on numbers. We connect to the seller, you need to know what you’re doing. You need to do your homework. You need to get respect from the seller or whoever you are negotiating with, and that makes everything easy.
Brent Daniels: Yep. Yep, absolutely. I love it. So guys, just absolutely incredible, the breakdown from everything that you did there was just phenomenal. It started with one call and then you guys just took it to a whole other level by asking them if they had other properties, and then being really smart in the way that you did your due diligence, to make sure that you got this deal, and you got it to somebody that got it closed. Right? That’s what we do. We source opportunities. That’s all we do. That’s what wholesaling is. We source opportunities, and we get paid really, really well for it. So, tell it to me guys, I know that you guys have a system that you guys want to talk about, or some value that you want to bring the audience. This was really important to you, so speak to that.
Chai: Absolutely. Just like I mentioned earlier, we have used everything that you have preached in the TTP book, just like batch skip tracing, mojo, you name it, everything that you’ve talked about, we have at least tried it or used it or are still using it. But one of the things that we did from that point on is we have improved our systems to talk to each other and integrate with each other so well that we are still working on the base Podio platform and anybody who tells you that base Podio platform cannot do certain things is wrong. There are a lot of ways to use Podio, without programming it, as it is, so we just figured out a lot of ways to seamlessly integrate everything, very frugally.
So what we want to offer here for anybody new in TTP family, getting one deal is easy. Getting two deals might be easy, but if you ever do this consistently you have to have a process set up, they have to be very organized, not to miss a follow up, and be on the TTP. You learn a lot from everyone. Some of the deals that we are closing now are from last year. It’s not really single-family, we have closed six-figure deals on a house. Our average, we have some, we have $100,000 house that we closed, which we [inaudible 00:37:43]. We have $50,000 assignment fees as well. The process is the key and networking is also the key. [crosstalk 00:37:52]
Brent Daniels: Yeah, if people want to know about the way that you set that up, what’s the best way? Can they email you? Or what’s the best way to contact you?
Chai: We have our website stepuphomebuyers.com. It’s stepuphomebuyers.com and you can … Anybody who wants to connect with us and send us an email at email@example.com, and that email comes straight to me and Pete directly, and we also have our phone number on the website, that’s a company number. They can text us, leave us a voice message, or call us on that number, and that’s a Google voice number, it comes straight to our cell phones. [crosstalk 00:38:32]
Brent Daniels: Yeah and guys, just for anybody out there listening, this isn’t just for the TTP group. If you guys are out there then you’re getting started or you’re in the rhino tribe, you’re in Wholesaling, Inc. program, definitely reach out to these guys, especially if you’re in the Houston area. This is all about building a network. This is all about finding new relationships. So make sure that you reach out to these guys, because I am telling you, your life is going to be changed if you guys start having conversations with these guys. They’re wonderful and exciting resource for you guys to use. So make sure that you guys reach out to them at firstname.lastname@example.org. Right?
Chai: Yes. I’d like to add something. We are trying to expand. We have about 1200 leads in our pipeline and I’m pretty sure someone can start dialing those lists. Should be a six figure or more, so we are hiring acquisition agents. The City of Houston and the neighborhoods, so we want to be out of the application process completely, so if you’re are [inaudible 00:39:32] and you like to close deals, please contact us.
Brent Daniels: Awesome. Thank you guys so much for that breakdown. Absolutely phenomenal. I’ve been waiting and waiting and waiting, and so have everybody else that have heard or have seen your posts, and I remember getting the text and the call from you guys when you guys were putting this together. It’s absolutely incredible what happens when you talk to people, so anybody out there watching this on the YouTube channel Brent Daniels, real estate or listening to this on the podcast, thank you for sticking around. It’s been an amazing interview. If you’re looking to join the most proactive group in real estate investing, go to wholesalinginc.com/TTP. Couple of the resources used in this interview is called motivatedsellers.com, that’s if you’re looking for an American to make your cold calls for you, and then batchskiptracing.com, use the coupon code TTP and get a discount to 18 cents an address. So check that out, that’s what these guys are using.
So guys, thank you so much. This has been absolutely incredible. I look forward to seeing this journey, seeing you guys … You guys do this part time. I feel like, listening to you guys and doing this interview, I need to get bigger deals, I need to go out there and do bigger stuff. It’s just absolutely inspiring. So thank you guys.
Chai: Just one closing comment if you don’t mind. I don’t know if you … if Prakash mentioned, where I was going with the systems that we have put into place is … Of course we are expanding in our own city, but at the same time we are looking to expand in other cities as well, and that’s where we are trying to, instead of going in ourselves, we are trying to partner up with wholesalers who can use our platform where we take on the marketing aspect, and they do the acquisitions part. We are actually piloting that concept in Miami. So anybody who wants to reach out for that as well, we are here.
Brent Daniels: Stepuphomebuyers.com, email@example.com, reach out to these guys. Guys, thank you so much. A fantastic episode. This is just absolutely incredible. I think you’ve expanded everybody’s mind on what the potential for this business can really be. Thank you guys so much. Until next time, everybody out there, I encourage you to talk to people. That’s it.