Posted on: February 11, 2020

Today’s guests are two massively successful real estate agents who decided to give wholesaling a try. And in this episode, they shared how they failed their way forward and made things happen.

Mark Dunn and Nick Jensen are business partners from Salt Lake County, Utah. While they already have extensive experience as real estate agents, they are still kind of finding their way around as wholesalers.

If you’re a real estate agent who would like to give wholesaling a try, you’d surely find this episode of tremendous value. For starters, you’ll not only learn how they found a massive deal (and netted $52,000 from the transaction!), you’ll also discover how they resolved some of the setbacks they encountered, among many others.

So many gold nuggets in today’s episode, you owe it to yourself not to miss this one!

Key Takeaways

  • One of the biggest hurdles real estate agents experience when they get into wholesaling
  • How to get off the income carousel when you’re a real estate agent
  • Mark’s biggest struggle the last 2 years
  • What helped him switch off the realtor hat
  • The list they intend to focus on
  • The primary reason they got into wholesaling
  • An example of a massive deal they have done
  • The amazing power of doing follow-ups
  • Why getting as many offers as you can is recommended
  • How people can reach out to them
  • Their advice to realtors who would like to do wholesale deals

RESOURCES:

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Episode Transcription

Brent D.:
Hey everybody. It is your host Brent Daniels, and you know I get this question a lot because it’s kind of… There’s kind of different definitions of what wholesaling is. What is wholesaling exactly? Let me give you my definition of it and see if it feels good inside your brain, okay. My definition of real estate wholesaling is simple. It is just sourcing real estate opportunities. It’s that simple. Sourcing real estate opportunities and we all know… I mean it seems like its kind of crazy. Different markets, different trends, different… It feels like it’s a moving target on how you’re going to find these opportunities. Is it going to be direct mail? Is it going to be internet leads? Is it going to be cold calling? Is it going to be door knocking? Is it going to be text blasting? What is it going to be?

Brent D.:
But if you focus on what the foundation of sourcing real estate opportunities is, it is one thing, one thing only and that is being consistent in having quality conversations with distressed property owners. Okay. Quality conversations with distressed property owners and I think that this leads in beautifully because I have a guy on here that invested into the TTP program over two years ago and has just been crushing it as a real estate agent.

Brent D.:
You know, a lot of people start in this business and they want to get a real estate license so that they feel confident, which gives them confidence moving forward to find these amazing opportunities, but after two years of being in the TTP program, he has broken through with his partner in crime here out of salt Lake County, Utah. Mark Dunn and Nick Jenson. Say hello guys.

Mark Dunn:
Hey, how’s it going?

Nick J.:
How is it going?

Mark Dunn:
Thanks for having us.

Nick J.:
Yeah.

Brent D.:
I’m excited to have you on here because you know when you posted to the private TTP group about what has been recently happening in your life, in your business life, in your real estate journey, it just… I mean we had comments after comments, after comments and everybody wanted you on the podcast. So I know that this is going to translate to a lot of people and watching. If you guys are listening to this, you can definitely watch this interview at Brent Daniels Real Estate on YouTube. Definitely check it out and you can see these guys and take a look at what’s going on here. So give us your background guys. Give us an idea of who you are. Set the stage for us.

Mark Dunn:
Yeah, absolutely. So Mark Dunn, I just turned 33. I’ve been a realtor since about 2011, so eight years and I have built up a pretty good automated business where I don’t really have to do much prospecting, right. But about two or three years ago, I actually started listening to the Wholesaling Inc podcast and just got an… You know, had this idea in my brain, man I’d love to get into this. I flipped maybe four or five properties, love doing that, hold a few rentals but… Have an awesome family, have a beautiful life, three kids. So that’s a little bit about me.

Nick J.:
Yeah, Nick Jenson here. I’ve been a real estate agent as well for two and a half years. I played college basketball here in Utah and went the traditional route making 60 grand a year as a stock broker and just started buying properties. I bought a couple of houses, a couple owner occupied rental properties in the tournament or rentals and then got my license because I just got really, really into it and wanted to kind of represent myself in my… I had a lot of friends interested in real estate and then met Mark probably six months after I got my license and yeah, I’ve got four kids here and-

Mark Dunn:
He actually just had triplets about… They’re almost a year now, right?

Nick J.:
They are nine months. Yes.

Brent D.:
Oh my gosh, I can’t even imagine. I have two [crosstalk 00:04:42], and it’s a challenge. Yeah.

Mark Dunn:
It’s true.

Nick J.:
So yeah, we both like to play basketball. Simple guys. So yeah, we love all things real estate. So yeah. Excited to share our experience.

Brent D.:
So would you guys say that… What percentage of your… Because there’s a lot of real estate agents. There’s a lot of realtors that listen to this podcast and they’re wanting to break out of the traditional business because they do have a huge passion for real estate investing, sourcing these deals that you see. You know, I remember as a real estate agent you see some guys, some people get these like incredible deals when you’re running comps and you’re looking to like go to a listing or something and you see this like super low priced house and you’re like, how did this happen? This isn’t real life and then all of a sudden you start digging a little bit and you’re like, Oh my gosh, somebody got this off market. They went direct to seller. How did they get these deals? I mean, have you guys gone through that similar experience?

Mark Dunn:
I personally did two or three years ago and you also think, man on the MLS, it’s just so hard that there’s no deals out there. Right? You get that mindset as a realtor. There’s no deals out there because all you’re seeing is market prices. What really piqued my interest was the first couple of flips that I did, they were actually sellers that they were trashed houses and I was able to purchase them for cash offers. What got me going on that was listening to Wholesaling Inc three, four years ago. Right? So yeah, definitely and then that, that just made me think, man there are some deals out there, but it’s hard to get over that realtor brain, right? Of there’s not a ton of deals out there. That’s been one of the biggest hurdles for me.

Nick J.:
Yeah. I think for me, I mean coming from just an investment background, studying finance in college. Just the concept of buying low and selling high, right? I mean especially here in Utah. I mean I bought my first home four years ago for 175 in a pretty decent city. You’re pretty close to downtown and now those homes are going for 330 and so kind of what drives me to get off market deals personally. I mean it’s kind of a… It starts there personally with Mark trying to invest ourselves is just to get those 2015 prices, you know. 70 cents on the dollar. I mean, that’s… And Mark is always saying that you make money on the buy, right and we kind of view the MLS as where we go to get top dollar when we sell as far as if we did hold the property.

Nick J.:
And so we love the concept of wholesaling too if we don’t want to flip it ourselves or hold onto it, we love giving that opportunity to someone else and the deal that Mark posted about kind of exactly hits home there and so that’s kind of why… Personally it’s like I don’t want to buy a condo for 300 grand. The cashflow is 50 bucks a month, right? We want to find these… You know, Mark talks of the 1% rule, these different things, the bigger pockets, Wholesaling Inc, everyone talks about and so that’s kind of why we’re attracted to off market and then to answer your question for other agents.

Nick J.:
Every agent has had that annoying investor client. They brag about it. I’ve got an investor from California, from out of town. They want you to do all this work, finding them a great deal and these deals simply a lot of times just start on the MLS especially right now in Utah who wants a 6% cap rate you know, if we go off market. We just simply send them all the wholesaler’s deals, mark it up 10 grand, and they’d be getting a better deal than the MLS. So as an agent kind of where we’re at so.

Mark Dunn:
Yeah. Absolutely.

Brent D.:
And with wholesaling, with the definition that I have of sourcing real estate opportunities, Hey listen, that doesn’t mean you have to assign it and make an assignment fee. That doesn’t mean that you have to buy it and flip it. That doesn’t mean that you have to buy it and rent it. You can do any of those things. You can do any of [crosstalk 00:00:08:45], because you sourced it. Now all of a sudden, like you were saying from a finance background, you’re getting it at a discounted price. You know what I mean? I bought an Airbnb this week because it was 20 grand more than what it sold for in 2013. Like [crosstalk 00:09:03], perfect. Right? Like it’s just absolutely phenomenal. I mean, you get these opportunities for sure but you know, I think that there’s two things and I want to touch on this for anybody that’s thinking about getting their license or anybody that is licensed. Has a real estate license.

Brent D.:
A couple of things and we talked about it before we went live here, but number one is how do you get off of the income carousel that goes… Because you guys are successful agents out there. I mean you guys are making I mean, really top one, top 2% of agents income in the country truly, right? And not only that, how do you sprinkle in wholesaling into that or how do you let wholesaling take over that business? That’s the first thing. The second thing is how do you flip the switch in your mind that says, I’m going to go there with fiduciary duty, which basically means that you have the seller’s interests in mind as an agent versus you go there as a cash buyer where your interests are at the forefront. There’s two things. So how do you guys… What’s your guys’ thoughts here on this carousel? Because you guys are making fantastic income as traditional agents.

Mark Dunn:
Yeah. I think for us it is extremely hard to get off that carousel. Right. But now that I finally got my first deal, it changes the chemistry in your brain. Like you always say and it makes you realize that… I mean for me it’s like do 30 deals to make 200, 250 grand when we could just do 10 wholesaling deals and make that. It’s just… I think for me that’s where I’m getting excited, right? I can do less deals, have these amazing opportunities. We can do whatever exit strategy we want and move forward. To answer your second question then I’ll let Nick answer. What was the second question again?

Brent D.:
Second question is basically like how do you go into these houses being licensed for so long, being a realtor for so long and go into it as the cash buyer and not Mark the realtor. I want to get you the highest price possible for your house.

Mark Dunn:
Yep. I think number one on that, I think that’s been my biggest struggles over the last two years of not getting deals. I was thinking too much as a realtor and not presenting it in the right way. Right. And I think what’s changed for us is we did just go in as cash buyers. If they do ask about like market value, we give them our honest opinion, like be truthful in all things, right? Be a truth teller, truth seeker, but we don’t just give them the market value unless they ask for it but we’re very honest in that.

Mark Dunn:
Also, just being honest in giving them all their options. I think that’s where it’s changed for me too you know. Asking them why aren’t you listing this on the MLS? Why don’t you turn this into a rental? I think those things have really helped me to switch off the realtor hat and become more of just the cash buyer and just going in with confidence that yes, we’re just going to buy your house with cash, right. I think those are some of the things I fell back on.

Nick J.:
No and to piggy back, I mean for and especially as a newer agent. Oh, I’m only 20… Just turned 29. A lot of my friends they want to go on the retail market, they want to buy a nice fixed-up… You know, a nice home wherever it may be in Utah and so there is on the MLS a lot bigger of a pool. So it’s a different mindset. It’s “Hey, I’ll negotiate you the best deal. You might get it 97 cents on the dollar versus you know…” And so for me it’s not that hard to kind of… It’s more of a time thing, but it’s not that hard to say, “Okay, this guy wants a brand new home versus… You know, when we go into these listing appointments with cash buyers an example, a lot of the times they don’t know how much it takes to fix a home and so like Mark said, we just tell them like, look, how much do you think a kitchen, a roof, all these things are and then by the end of it sure, it could sell for 350 as they dumped in the 80 grand but they don’t.

Nick J.:
I mean they don’t even have five grand in their bank account and so I don’t really think… I think being a realtor, and I’m not saying everyone should, has actually given me more knowledge to be able to know what’s a good deal and educate people and say, “Look, if you didn’t fix this up, you could sell it for this,” and then they’re kind of like, “Well, I don’t have 80 grand. I don’t want to deal with it.” So that’s kind of… You know, I don’t think it’s that hard to switch it. Yeah.

Brent D.:
You know, it’s funny, the first time that it really sunk in, this is like really early into my wholesaling. Like trying and learning it and getting it figured out and I remember my grandma referred me one of her friends, right and this house was cluttered up. It needed the carpets cleaned, it needed the paint done and had this big really kind of annoying dog that lived there and I said, “Listen, you can put like a couple thousand into paint and clean up the carpet and decluttering and when you can put it on the market, I think you can sell for 200 or I can give you an offer right now for 125, right? Cash, you don’t have to do anything as is. Nobody comes through it, whatever it is,” and she was like… She was thinking about it and she goes, “You know what? I think I’m going to just take the 125 because I don’t want my dog to bite anybody or get upset that people are coming to the house.” $75,000 difference guys. Like I think that we hallucinate a lot, especially real estate agents.

Brent D.:
A real estate agent hallucinate all the time on what they think people are going to expect them… They can expect for the price of their property and I get it because everybody wants more than it’s worth for the most part, but we’re talking about the six to 10% of the market and everybody’s market across the country that is in distress of some sort whether it be mental distress, whether it be financial distress, whether it just be that they’ve inherited a property, you don’t want to deal with it. Six to 10% that’s where you find these wholesale opportunities. It’s not the regular, it’s not like you were saying everybody else that you know and wants to live in a nice four bedroom, three bath, brand new, granite countertops bathrooms, done type a house.

Brent D.:
We’re talking about houses that need some love and that leads me into what you’ve been doing over the last two years, which I think is really smart Mark. Now obviously over the last two years you haven’t been taking as much action on this list that you’ve been compiling but once you started to, it’s amazing what happened. So why don’t you explain to everybody what you’ve been doing over the last two years.

Mark Dunn:
Yeah, one more point with the question you just asked real quick. I think as a realtor I was always about the house and about real estate. It was so hard for me to get over that but now when we’ve had success, because it’s all about rapport building all about them, all about their situation. Right? And so I think that that’s the biggest hat that I’ve had to take off as a realtor. It’s all about the value in the house. So anyways, I hope that that-

Brent D.:
That’s huge.

Mark Dunn:
… point helps.

Brent D.:
Absolutely.

Mark Dunn:
Yup.

Brent D.:
That is huge. Yes.

Mark Dunn:
Yup. So when I started two years ago, [inaudible 00:15:57], always pushed that driving for dollar, get out, get it, get it. That’s going to be where you can get your first deal the fastest. So I hired a guy immediately paid him 10 bucks an hour, which is an appeasing price and he drove for probably 10 to 20 hours a week and he’s done that consistently for two years. We have over around eight, 9,000 tagged properties. Here is what is blowing my mind about that. That’s only about half of salt Lake County. Right?

Brent D.:
Mm-hmm(affirmative).

Mark Dunn:
So there’s probably about 12 to 15,000 distressed properties in salt Lake County. That turned a light bulb on in my mind that there really are plenty of deals for everyone. Because that’s one of the biggest things I… There’s a lot of big players here in salt Lake County, right and there’s a new wholesaler every day that I see a deal from, but I just go back to my driving for dollars list. There’s 15,000 properties just in salt Lake County. Those guys will sell at some point and I bet 95% of them don’t have the money to fix it up [crosstalk 00:16:54], but yeah, this fighting for dollars list is insane. We’re excited to attack this thing like crazy. That’s some of our big plans is to really take more massive action than we have on this list. Right.

Brent D.:
So break it down. Are you using any apps or you just writing it down old school?

Mark Dunn:
Yeah, DealMachine for sure. Code TTP. Yeah, absolutely.

Brent D.:
Yeah.

Mark Dunn:
That app is incredible and we’ve actually… We’re looking for some driving for dollars people in other counties as well. So we’re excited about the potential of that. We’re going to put all of our marketing money into that list for sure.

Brent D.:
So you’ve got your driver. It’s loading up these. It’s organizing the app and then you skip trace them, you get the phone number and then who’s calling these people?

Mark Dunn:
So we’ve had a lady from the Philippines for six bucks an hour and we’ve had her calling those. We are actually going to switch strategies on that. We’re going to have her call the bigger lists because she’s really good at calling for 8 hours a day. Right. For the next few months I’m going to take over the driving for dollars, leaving the voicemails and really trying to pull better deals out of that list. That’s kind of our plan with cold calling but it has been our Filipino Cold caller in the past and that has gotten a few of these deals so.

Brent D.:
Awesome. So let’s talk about a deal that you’ve done here right. Now, did you do… Was it just a one or you had a couple going? Tell me what was going on because I feel like it was-

Mark Dunn:
[crosstalk 00:18:16]. So we’ve closed one massive deal that we’ll talk about and then we’ve got a couple of other awesome deals under contract that is awesome and another side that we’ll talk about it too is we actually took the massive deal with 10-31 wanting to own a couple of these other deals that we’re buying. That’s why we got into wholesaling is to build a rental portfolio you know. We make good enough money as realtors to have a good lifestyle. We actually would love that to be wholesaling money and we’re going to get there but really we got into this to build a huge rental portfolio. So we’re really excited about this 10-31 opportunity and the deals that we have.

Brent D.:
And it only took you 730 days to take it seriously.

Mark Dunn:
Seriously I know. We actually had a deal and then we’re going to Ardell, we had… I took him on a motivated seller appointment and this was… I think this actually took the wind out of ourselves actually. We went in, this house had cars all over, it was just trash. The guy was on basically house arrest and he had an AK 47 at the front door. Anyways we feel like he yelled at us.

Nick J.:
Barked at us to fuck off.

Mark Dunn:
Yeah. So anyways, that was a pretty scary situation for that and we can go deeper on that another time but yeah, it was crazy.

Brent D.:
Well, tell us about your big deal.

Mark Dunn:
Let’s… Go ahead. Tell them about it.

Nick J.:
Cool. So yeah, me and Mark… I’ll just give a little preface, have been friends for a while through realtor, playing basketball there. So he kind of approached me and I think it’s from my conversion on the real estate leads that we were working before as realtors and he just sent me a CRM, never heard of the CRM before, but it had made like 50 phone numbers in it and what I love, I love negotiating, closing deals, talking on the phone, everything else, systems, things like that. I feel like I’m not maximizing my time and skillset. So I took action. I mean the Philipino Cold caller, she vetted the drive for dollars leads and I just started calling and I think it was the third guy I called.

Nick J.:
He picked up and he said he was willing to have an appointment and pretty cool property in a city called Midvale here in Utah, kind of 15 minutes South of downtown salt Lake. But yeah, I mean we went there and he was smart. I didn’t even know really how do wholesaling. I mean, Mark told me look what it’s worth on Zillow like on my way to the appointment and you know started texting me some pointers and he a… Yeah, I mean I think Zillow said the home was worth 350 and that’s what the guy was going off of. He’s like man, this seems worth a ton like, but then I just… Mark had told me build rapport.

Nick J.:
So I just talked to him and he was real friendly, no different than how I normally talk to people and he just kind of went through. I was like, so show me the home. What are your thoughts? What are your plans? And really just asked a ton of questions. I think that’s the biggest thing is just kind of just letting them talk and tell you about it and he was like, the roofs ruined, 15 grand to fix that. The kitchen, Oh it is 30 grand for a new kitchen and he showed me this layout that he had designed on like paint or something. Some program and he had all these immaculate ideas and then I just kept asking questions, what do you want for the property? Just trying to see kind of what I was dealing with, kind of getting the bottom of everything and I kind of let him know… He eventually threw a number on it.

Nick J.:
I think he wanted 220 for the property and then obviously, I kind of fumbled through it. I was like, yeah, I don’t know if we can pay that whole block and then what we did was, he wasn’t ready to sign any paperwork that day and so I know Mark says some wholesalers will like go buy some spaghetti for their wife and then come back with a $500 gift card and stay there all night. I’m not that type of person. I’m pretty like that it is what it is and so I think he actually appreciated that and then I went out of town and me and Mark just kept talking about it and then the next time he agreed to meet with us again, he had talked to I think one of his friends about selling-

Mark Dunn:
A couple of things real quick. At the appointment, I think we offered him 160.

Nick J.:
Oh, did we?

Mark Dunn:
Yeah, we offered him 160 and his motivation was his daughter lived with them and she had like three kids. Daughter and son in law, so her wife and like three or four kids. This house was just completely trashed. It was just disgust. We really felt bad for the kids. I think one of our main motivations was to help him get out of this house, to get these kids out of this disgusting house. Right. And so I think that was the biggest motivator. He was like keeping up on his payments and stuff. So he wasn’t motivated financially. He had a good job, but the house was in complete distress and I think that’s the motivation… That’s the biggest motivation we could find and then the kids being sick. So we just kept going down that route. Right?

Nick J.:
Right.

Mark Dunn:
So that’s a couple more things from the appointment but keep-

Nick J.:
No, no, exactly. Yeah, that was a big thing. He wanted to talk to his daughter and her husband and so there was a… It seemed like 20 decision-makers and so eventually we got another appointment with him. I think he even called us when we offered 160, he was like I’m not willing to sign anything, let me talk it over and then we met with him, I think that’s when he was bent on the 225 and then at that appointment he started telling me about his big old plans of developing like a fourplex on the property.

Mark Dunn:
Of course.

Nick J.:
He showed me all this-

Mark Dunn:
Yeah.

Nick J.:
He had all these dreams and aspirations and then we kind of took that information and Mark kind of just did some research and you can tell them a little bit about that.

Mark Dunn:
Yeah.

Nick J.:
But we found that the land was developed… Well, it’s on point four acres, which is quite a bit here in salt Lake city if you own that big of a lot and so anyways, push comes to shove I mean-

Mark Dunn:
Well how many times did you follow up with this guy to… Because he kind of went cold a couple of times on us. How many times do you think you called and texted this guy? And this is-

Nick J.:
Probably 10 times.

Mark Dunn:
10 times. Okay.

Nick J.:
Yeah, 10 [crosstalk 00:24:39], times, I don’t know.

Mark Dunn:
Yeah. [crosstalk 00:24:42].

Nick J.:
We probably met with him five times. So-

Mark Dunn:
So this wasn’t your easy peasy, like knock it down. Right. We had to do a lot of follow up and those two years… And this is a golden nugget, I think for people. The reason I felt is that I did a horrible job of following up. I was great on the first phone call and appointment, but personally, I just don’t love follow up. He’s really good at it and that’s where I failed. So follow up until they give you a yes or no. I don’t care if you follow up a thousand times. Right. Follow up. You can text and call 10 times a day. You’re probably not even bugging them. In our minds we think we are but until they say, leave me alone or yes. I think that’s the key to whole selling or traditional real estate, right?

Brent D.:
Yup. I always say you’re not going to go poor with excess follow-up. You know what I mean? Like you’re not going to lose deals because of excess follow up. You know, I mean go there until it’s at that point where they’re ready to make a decision and as long as you’re the first one in their brain that they’re thinking of you’re going to at least get a shot at it.

Mark Dunn:
Yeah.

Nick J.:
Yup.

Mark Dunn:
Yeah, absolutely. Absolutely. So we finally got this deal locked down at like 196,300, which we obviously wanted it lower but anyways, that was the best he would do. He wouldn’t go any lower. We tried every negotiating method out there.

Nick J.:
I mean he had an investor friend that financed his mortgage so we were just kind of like I mean this guy… He even said, well my buddy, we’ll just buy the home if you don’t. So he had a little bit of leverage on us there but yeah, so we settled the deal [crosstalk 00:00:26:17].

Mark Dunn:
We’re going to try to make this really long story short. This was probably a six month deal, right? This was not your easy like get under contract, flip it in 10 days. Because we knew it was a massive deal, we closed on it with hard money. We have a great hard money lenders [ZAC 00:00:26:35], here in Utah. So if you need any hard money connections come to us here but anyways, we sent this list out. I actually only had about 30 cash buyers because I just didn’t focus on that, right?

Brent D.:
Right.

Mark Dunn:
I want a deal, I want a deal. I know wholesaling [inaudible 00:26:48], build a huge pacifiers database and you know follow that program it gets you farther ahead than where I got but anyways, I had 30, 40 cash buyers, unlike [inaudible 00:26:59], I needed some more cash buyers if we’re going to get the most out of this thing. So I busted my butt for about four or five, six days and got our list up to 2000 cash buyers and then we sent this list out and we only had… We had about five or six offers from flippers that would only make us about 20 to $25,000 on this deal on assignment fee, right?

Brent D.:
Yeah.

Mark Dunn:
And so we’re like… And we had spent a lot of time on the developing side of this thing. Like thinking well we could develop this you know. So I met with the city, I figured all this stuff out. We actually had kind of got the neighbor’s house under contract. Not fully, but… Because if you can get both neighbors on this property, you can six brand new units. So anyways, we kind of went down a little bit more of that route. We didn’t take any of the flippers offers because we knew there was more in this thing than that and I think another key point too is slow down on your assignment, right?

Mark Dunn:
If you know you can get more, don’t hurry and take that first offer. Like slow down and get as many offers as you can. Get as many cash buyers for the deal as you can. So anyways we kind of went down that route, met with some developers. We’ve got an offer from a developer that was only going to net us about 30,000 we were excited to make 5,000 more. They didn’t perform on it and then we just… For about two or three months we just went back and forth with this developer and finally got us still locked down and closed.

Mark Dunn:
We actually held a lot of the leverage because that developer got under contract on the neighbors house. He had the neighbor’s hous, we had our house and so we didn’t really have an option to sell to anybody else because we really wanted to help this guy do the deal and not get screwed over on overpaying on the neighbor’s house, right. So anyways, that was an up and down rollercoaster negotiating for two months. He was probably trying to find financing. It was an insane negotiating process but we came out with a great deal. We’re actually really good friends with these developers now. We’re going to learn a lot from them. They’re awesome people. They’re doing big things but anyways-

Brent D.:
Wait did you close on it or did you assign it?

Mark Dunn:
Oh yeah, sorry. We closed on it. We held it for a few months, our money and then sold it to them.

Nick J.:
So this was kind of a Swiss army knife type of property. We knew if we flipped it we could make 70 grand and so we were kind of like, man, did we want to… Like the flippers were kind of not giving the property enough credit. They were… I mean it’s in a really good area and so we were like, we don’t really want to spend the time we’re over here wanting to grow our wholesaling, turning our realtor deals. You know, our family lives are crazy. We both have a bunch of kids. So you know, so that was kind of our last option but for an extra 40, 50 grand, we thought flipping it might be good but then the developer he went and overpaid for the neighbor like Mark said and then we thought… There was even a point where we were going to just then get him out of the debacle of the neighbor and we were going to develop ourselves because the third neighbor, we almost got locked up.

Nick J.:
Then we could have built a 14 unit kind of subdivision. But just you know, if you don’t have the cash and the returns that a lot of these investors want, we essentially penciled it out that we ended up selling it to this developer for 250. Got him to pay all of our taxes, which the title company thought was absurd but we were staunch on that and then I negotiated we’re going to be the listing agents on all six townhomes that are going to sell for about 420, so there’s another 72 grand I mean in about a year and then if they don’t develop, we have a, what is it? $50,000 clause that they owe. So it’s a 100,000 dollar deal no matter what and the cool thing is we poured late this 1031 money into more off market deals and I’ll let you talk about that, but you know.

Brent D.:
So how much… So you made… How much did you make that’s your 1031 eight?

Mark Dunn:
$52,000.

Brent D.:
Okay. Hold on a second.

Mark Dunn:
I’ve been waiting two years for that bell-

Brent D.:
[crosstalk 00:31:26], everybody wants you know.

Mark Dunn:
Yeah.

Brent D.:
That’s what everyone really wants the bell. That is awesome guys. I mean just absolutely incredible and now you’re taking that profits because you guys are successful in real estate and because from a cashflow standpoint you don’t need that money right now to live off of. You’re reinvesting into what? Rentals?

Mark Dunn:
Yeah, we’re under contract on a duplex type property in West Valley, Utah here that… That’s an interesting one actually. Reverse mortgage short sells. So I was going to take a bit of time, but I’ve never met more motivated seller. She’s literally sell it to us for a dollar if the bank would short sell it for that price, right?

Brent D.:
Yeah.

Mark Dunn:
And then we’re working on a seller finance fourplex that we’re actually going to put together after this call. I mean, this guy is awesome.

Brent D.:
[crosstalk 00:32:15], is this source from your Philipino caller?

Mark Dunn:
Yes. Yep. 100%. Yep. So-

Brent D.:
That’s amazing.

Mark Dunn:
… it’s pretty amazing.

Brent D.:
I love it. It’s amazing what happens when you do lead follow-ups. [crosstalk 00:32:27], good job there. I mean, just to break it down so that everybody’s seeing the process here. Literally they have somebody driving around for 10 bucks an hour using the deal machine app. Use the TTP code and get a 10 bucks off a month and they’ve got 8 to 9,000. They’ve got another double that, that they can get and they’re going to expand into other counties. They then get their skip tracing back. Skip tracing is just getting the phone numbers for those addresses. So if anybody’s wondering how they’re doing that, I use batchskiptracing.com. Do you guys use Batch? Who do you guys use?

Mark Dunn:
I’ve used both Batch Skip Tracing and Lead Sherpa because they were cheaper and so I feel like both are actually pretty good quality. I haven’t compared numbers and numbers but yeah these deals have come through Lead Sherpa because… Though actually that West Valley deal came from texting on Lead Sherpa so-

Brent D.:
Awesome.

Mark Dunn:
… talking to people and texting people, there’s no other way… No better way to do it man.

Brent D.:
That’s it and then once you’ve got somebody making the calls for you at $6 an hour, it goes into… Nick mentioned that there is a CRM that just means Client Relation Manager, relationship manager. If you don’t know what that is, it’s basically just a database. He calls in that he’s following up, following up, following up and falling up, gets the appointment. Follows up even more. Gets this thing locked up, they close on it. They then sell this. Boom. They’re taking the profits from that and putting it into other deals that they’re getting from talking to people. Come on. That’s what I’m talking about. I love it guys. I love it. Yeah. Well good. Well guys, absolutely phenomenal. How do people get a hold of you in your area or if they want to reach out and kind of get into your world?

Mark Dunn:
You can find me on Instagram at Mark Dunn, M-A-R-K, D-U-N-N dot realtor and that’s the best way for me for sure.

Nick J.:
And I’m on Instagram as well just Nick Jenson, N-I-C-K J-E-N-S-O-N.

Brent D.:
Awesome. Awesome, guys. Any advice real quick. We’re at the end of this thing, but any advice to anybody that is real estate agent that you would give them about the potential of doing some wholesale deals?

Mark Dunn:
Yeah, absolutely. I think number one, joined the program. I would say join wholesaling and TTP. If you have the money, join them both. Get around the people that are wholesaling and are successful and then I think number two take massive, massive, massive action. I mean, we’re ready now that we’ve felt it, we’ve tasted it, we’re ready to take even triple, quadruple action that we’ve taken. Right?

Brent D.:
I love it.

Mark Dunn:
And failing [inaudible 00:35:04], forward you’re going to… It’s such a different animal wholesaling, right? So just just keep going. Just keep failing your way forward. The deal will come whether it takes a month or two years and it will change your life. Like real estate investing there’s nothing better for building wealth. Right? So those are my tips for realtors.

Nick J.:
No and for me, I think it just adds to your value, right? I mean, I think anyone can go on Zillow and find a home and pick it out. As an agent if you’re able to truly… You know, you could even personally wholesale deals to investor clients, right? I mean if they want longterm holds. I mean you don’t only have to wholesale to do a bunch of flippers who then want to make 20 grand and then put it on the MLS. I mean I think being an agent, the way I view it, and I don’t know if it’s right or wrong, I think to me I want to optimize every opportunity and get the return on my time.

Nick J.:
So if that means holding it as a rental or seller financing the deal myself or just passing it on because we don’t want to deal with it. It gives someone else the opportunity. I think that’s why I love wholesaling and I think as a realtor all these quote unquote investor clients that people have. I mean you can add that value as a wholesaler, but to be honest, I think the best deals generally if you have another source of revenue to keep for yourself and others that are close to you, which I think is really cool so.

Mark Dunn:
Yeah.

Brent D.:
Love it guys. Thank you guys so much. It has been just phenomenal. I mean, just a ton, step by step exactly how these guys are doing it and two years later. I mean I’m just thrilled. I’m absolutely thrilled that you’re getting going with this and adding that into your real estate business, which is phenomenal and anybody out there listening or watching this interested in joining the most proactive group in real estate investing, it is the TTP family. Go to wholesalinginc.com/TTP. That’s wholesalinginc.com/TTP. Check out what the program’s about. 36 videos, breaking everything down that you need to know to set up everything so that you can be a productive beast in your market. Plus you get access to me and go check out all the testimonials. If it feels good, sign up for a call. I’d love to work with you personally.

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