Posted on: February 13, 2020
WI 362 | Wholesaling Business

 

Is it possible to run a thriving wholesaling business and still get to spend quality time with the family? For Recia and Drew Davis, the answer is a resounding YES!

Recia and Drew is a phenomenal couple from Phoenix, Arizona. Aside from building a really good real estate portfolio, the doting parents were able to pull off something quite impressive—they were able to build a successful business without sacrificing family time.

In today’s episode, Recia and Drew not only shared how they worked together and made things happen, they also talked about an interesting niche that’s making them a lot of money. As if not enough, they also candidly shared some of the amazing life hacks they have learned along the way.

If you intend to get into wholesaling with a partner or you would like to know how to effectively strike the right balance between running a business and raising a family, today’s episode is for you!

How To Wholesale With A Young Family With Recia And Drew Davis

Episode Transcription

If this is your first time, welcome. This show is going to blow your mind. Not only are we going to give you some motivation and inspiration but more importantly, some instruction on exactly how to go out and make an impact in your real estate community. It is phenomenal. I want to talk about three little words. The first one is profit. The second one is time. The third one is freedom. I’m not going to just talk about that but I’m going to interview an amazing couple out of Phoenix, Arizona that are going to break down exactly how they grew their business so that they can raise a young family, have the time to be there and be involved, and build up their real estate portfolio. With that, it is my pleasure to introduce Recia and Drew Davis.

It’s nice to meet you.

Drew and I had done an interview before. We’ve gotten 6,000, 7,000, 8,000 views on YouTube. You brought a lot of value to that interview but you’re the lesser half. Recia, tell me about your real estate journey, how you got into this, and your background. Tell me how this whole thing works because it is a challenge not only with spouses but with partners in general. Sometimes it can be difficult to juggle the relationship and the business. Give me your background and how you guys work together.

Back in 2009, we had been dating for a long time and it was time to take the next step. I had just moved into his house and then that’s when I realized, “I’m living in his house.” I’m strong, independent, and competitive. He bought his first house after he turned 25. At the time, I was 24. I was like, “I need to buy my own house and you can come live with me so that I have the last word if something were to come down to it. That was where the beginning of the real estate journey began because then we had to figure out what to do with his house. The market is crashing. We had no idea what was going on.

We ended up trying to rent it. That was a nightmare. We went through Rich Dad education. We spent buckets of money with them and got good information. We bought into the dream of financial freedom and lifestyle design, and all of that. At the time, I was working a job that had turned into a career by accident. Drew tells his story about he grew up knowing that you’ll go and work for somebody for 30 years and then you retire and life goes on. That’s what you do. I must have missed that lesson because I didn’t know what I wanted to be when I grew up. I didn’t know any of that. I just knew that I wanted to be super rich and have this amazing life. I ended up falling into a job that I was good at.

I was there for eight years or something. I moved up the ladder very fast but I hated it. I hated every second. I worked in clinical research. It’s a science-based industry and a detail-based industry. It’s something that is not in my wheelhouse. Once we got into the real estate side, I started seeing, “Passive income. This is the ticket.” We started buying rentals but that was too slow for me. I’m also impatient when I want something. A couple of years go by, we have our first baby and I’m like, “I need to find a way to get out of my job. I had to get out of my job.”

How did you even get to the Rich Dad education? Did you read the book? Was somebody like, “Here’s a pamphlet,” as you’re walking through the mall or something like that?

Drew tells me. It was all banner ads on Yahoo.

WI 362 | Wholesaling Business

I got to Yahoo and there was Rich Dad. I’m like, “I know that guy.” The ether they had been putting out was like, “I need to figure out how to be a landlord.” There’s a free seminar on real estate right in my backyard. How lucky am I? I got to be there. It’s free.

That’s all it took for us. We were sold.

I have never seen anything like that before. It was like, “What? The Earth is round?” It’s like, “People fish in the ocean and not in the desert.” That is such an amazing concept. We’ve all been hoodwinked and bamboozled. This is the true way. We caught the bug.

Fast forward, we had Spencer. He’s our oldest. I was like, “I need to speed this up.” We’re buying rentals. We didn’t understand hard money. We knew it was out there but we couldn’t understand how you could cashflow with 12%. The whole time I didn’t realize that it was interest-only. I thought it was amortized at 12% because there’s no way your cashflowing if that is amortized at 12%.

I was at work one day and Drew and I are talking on the phone as I was leaving work. I had an hour-long commute and I’m coming home. I was hoping that he forgot that it was the night of the Phoenix Real Estate Club meeting. He didn’t forget. He’s like, “We have to go but I’m with the baby so you have to go.” Putting me in a networking environment when I was brand new, I’m hot even thinking about how I felt at that moment. I went because of the, “I’m strong, I’m independent. I can do this. I don’t need you to be there with me. I can handle it.” I showed up and that’s when Dan Valentine Sr. was there. He stood up and said, “I’m teaching people how to find houses and wholesale them and I’ll be your buyer. I went up to Dan and I’m like, “I’m your girl. I’m going to do this.” From then, that was it.

When you go home and you talk to Drew, you’re like, “I’ve got the path.” The first part of this conversation is the profit part. When we’re starting out this business, a lot of people start as this is your part-time gig, your side gig or your weekend. If something happens, you’ve got money saved up to where you can buy a rental or you can do a fix and flip or whatever. All of a sudden, life changes, you change or your mind changes. Something happens that you’re like, “I don’t want to work a 9:00 to 5:00. I want to do this real estate thing.” All of a sudden, you need to be able to replace your income. That’s where the profit starts.

People think, “If I got to get into real estate, I need to buy these things over years and years and years until I can replace my income with passive cashflow.” It’s going to take forever. That’s the beauty of wholesaling. You can do some fix and flipping but that’s slower. With wholesaling, two weeks and your life could change. Tell me about it. You’ve got a cash buyer. You’ve got this passion and hunger. You’ve got a plan to go out and find distressed property owners. What did you do?

There are two types of people. We are two similar but also different types of people. There are people that like to toe-dip and make sure the water feels good before they get in. They make sure the island is sustainable before there’s no way off the island. There are other people like me where it’s like, “Bring the boats. I believe there’s an island. We’ll make it work.”

Bring the boats, believe there’s an island, and make it work.

I came home that night and it was that night when we agreed that I could leave my job. I was like, “I have to. You have to believe in me because I believe in me. You have to trust me. All I’m asking is you trust me. The worst thing that can happen is I go back and get another job in six months. I already disliked my job anyway. Let’s go look somewhere else.” He agreed.

I went into Dan’s class and I told him, “I’m Recia Davis. I’m going to wholesale full-time. This is going to replace my income. I quit my job.” He’s like, “Get your butt back there and go get your job back. That’s not how you do it.” I told him, “No, you trust me.” Sure enough, I became the star of his class because it was like an accountability group. He was hand-feeding us information about exactly what to do. Drew says this all the time, “Everything works, nothing doesn’t.” That’s what it was. It took me six weeks with full-time effort in order to get my first deal.

Doing what?

I was at the time printing out reports from PropertyRadar. It would show sometimes the phone number, but it would also have the mailing address of the homeowner. I would be mailing letters and I would be cold calling. Four weeks had gone by and I had a picture printed and put in our bedroom. It said, “Today I will do what others won’t so tomorrow I can have what others can’t.” I kept seeing this and Dan had told me one day, “If you want a deal, you have to go find the deal. You can’t tell me that there are no deals in Phoenix.” It was a Friday and I woke up. I was like, “I’m going to go find a deal today.” I went driving for dollars and door knocking. I door knocked neighborhood after neighborhood.

Were you going to specific doors like the ugliest houses or were they pre-foreclosures?

I was just going.

You were like, “What are you doing by yourself?”

At the time, that’s what they did. You did it alone. There was no comradery of five people going knocking and blanketing. You go and do it alone.

WI 362 | Wholesaling Business

Wholesaling Business: If you could get a house for a hundred dollars a foot, it was a good deal.

 

It was a competition. There’s not enough out there for everybody.

I would go and I would tell Drew, “I’m in this neighborhood. I’ll call you as soon as I leave this neighborhood. If it’s X amount of time then call me.” I was coming home that day. It was Friday at 4:00. I was like, “I’m going home. I didn’t find it. Maybe tomorrow.” I was like, “Let me hit one more neighborhood.” I turned into this neighborhood that’s close to Drew’s parents’ house. It was a neighborhood that we had been looking at buying in. I knew the numbers well.

I knew what houses to went for. At the time, if you could get a house for $100,000 a foot, it was a good deal. You could move it. I go to this neighborhood. I knock on this door and it so happens to be an older guy that had moved his dad into hospice or nursing home and needed to sell a house. He was looking at me like I was a godsend because his sisters were coming into town and he didn’t want to deal with his sisters figuring out how to sell this house.

I said, “How big is this house?” He said, “2,100 square feet.” I told him I’m probably at about $200,000. He started at $240,000. By the time that I got to Drew’s parents’ house after this conversation, we had it locked up at $210,000. I was right on my money. I then made a phone call and got it sold to somebody else. In five days, we closed. It was the first deal that closed. I had two other deals at the time that closed right after it but I had been working on them first. You can go out and find a deal and make that happen. That can be something that closes faster than whatever you have in escrow.

What did you make?

I made $10,000 on that one. That happens to be the neighborhood we live in now. We drive by that house every single day.

That took you from believing that you can do it to it being a fact. Now you’re a crazy woman. You’re just going and going. You guys found an interesting niche that I like to talk about because it’s something that doesn’t get talked about a lot, which is property tax liens. What is a property tax lien?

I’ll summarize by keeping it simple and saying everybody has got to pay their taxes. That even comes down to the properties. Depending on where you live, if you don’t pay your taxes, they’ll put a lien on the property. That’s going to encumber the property if you want to sell it. The county has all run off the tax dollars. If you’re not paying their property taxes, the counties are starving. They don’t have any income. Essentially, what they have to do is put their thinking cap on and say, “How do we get these taxes paid so we have income?”

If you want a deal, you just have to find it.

There’s value in this lien that we put. We’ll auction it off to investors at our preferred interest rate. There are a variety of different ways they can do that. We’ll auction it off, and then the winner now is essentially the tax lien owner on that property. The predictable, certain, and safe return on that money is backed by the government. It’s old and boring but it’s a niche that if you would take the time to learn more about liens and deeds, there are some nuggets hidden in them.

Where do you find these liens? Were these the county treasurers?

We got introduced to this strategy a while back because this is a longer-term strategy. It’s a longer play. You buy the tax lien certificate in February, you wait for it, and then you can foreclose on it if the property owner does not pay their back taxes.

If you combine all the other stuff you know about real estate, you can possibly find a distressed property and auction off a lien on it.

Do you get a list beforehand of addresses that are going to the tax lien auction? Do you look through those and cherry-pick the ones that you want to go after, ZIP codes, and areas?

There are some gotchas if you are investing in tax liens, whether it’s tax liens or tax leases. This happens across the country. Every county has a way to collect back taxes from investors if the homeowners are not paying them. You have to check with your specific county to understand the rules. Here in Arizona, you get the list ahead of time. You want to make sure that you’re buying a tax lien on a property that’s worth something. There are so many tax liens being auctioned off on properties that have a value of $500.

What kind of properties are $500?

The little piece of sidewalks. They decide not to pay their taxes because there’s not necessarily any value on the property itself. If they stop paying their taxes, then the taxes start acquiring. All of a sudden, as a tax lien certificate buyer, you got to make sure that you’re buying something that’s worth way more than the taxes owed. If there are taxes that are owed of let’s say $5,000 but the value of the property is only $500, why would you invest in that? You never would because there’s no value there.

WI 362 | Wholesaling Business

Wholesaling Business: Every county has a way to collect back taxes from investors.

 

This is going to be different in different areas, states, counties, everything. When you’re looking at it, what is the first thing that you filter? Do you filter by area? Is there a code that’s like, “This is a house, this is land, this is commercial?” There are property taxes on everything. If it’s privately owned, there are property taxes. It could be this building, a house, a condo, a sidewalk, parking lots, community areas or any of that.

We have found a lot of developments where the community area in the development is not paid for. You have to decide what you’re going to do with that land. For Drew and I, we like to look at value first. There are ways to filter. Luckily in Arizona, in Maricopa County specifically, we’re so fortunate here. Arizona is awesome. The amount of education that they give on the treasurer’s website is incredible. They walk you through the steps of how to get your bidder number, how to buy, and what to look out for. At the end of the day, it comes down to how much dollars you have to invest because you have to be willing to pony up and pay if you’re going to win the auction.

The auction is not the amount of taxes owed on it. The auction is the amount of interest that you get on that.

We bid down county where it’s, “What’s the least will you take?” The winner is the lowest bid on that interest rate.

Do you guys even care about the interest rate?

Sometimes.

Because you want the property, but it takes years before you can foreclose.

You want to have your money tied up. This is our preference. If our money is going to be tied up, it needs to be earning something. The chance of you getting a property through foreclosure from the tax lien certificate is small. You have to make sure it’s worth it for your time. We make sure that we get some interest in it. Because we’re in the real estate space and that’s what we do, we want the property.

Wholesaling comes down to how much you have to invest to win the auction.

Is there a percentage you won’t go below?

It’s a little bit of formula but everyone is going to be unique. Some people might say, “Whatever it is, I just want to get the property.” They don’t care about the value. “Do you want that small 8-foot triangular slab of leftover concrete near the back gate of the alley? You own that now. What are you going to do with it?” Sometimes people are so thirsty to buy something they don’t even think. There are other codes that tell you. If it’s coded like this, it’s this part of town. You can have your own little setup if you want West Side or Scottsdale? It’s all in the code. You just got to know the code. It’s pretty slick.

You guys do get some properties out there. Those are big deals.

They tend to be rather large.

It’s a patience game. This isn’t you going after your first-year door knocking. This is that time factor that we’re talking about, profit and time and freedom. Getting back to it, your time is interesting because you guys have three kids. How do you guys balance that, be proactive, and work so that your business is still thriving? You’re still getting the profits side but you have the time to devote to the family?

When I got started, it was about as big as I can get. It was like, “How can I get as big as I can get?” It was all about dollars, being a boss, and this stature. That was awesome. It was a lot of fun. We then had our second baby and we were making great money but two years in, all of a sudden, I was in a pretty dark space. I don’t think I recognized it at the point, but I could feel like life sucked. The business was great but I felt like, “What am I doing this for?” Everything hit me at once. I wasn’t taking care of myself physically. We’re eating crap. It was garbage. We put everything on the back burner that wasn’t our business.

We weren’t taking care of what mattered. The food was the first thing for us and for me specifically. All of a sudden, I had this brain fog clear. I had no idea that brain fog even existed. I realized, “What is it that I want?” I started designing that. All of a sudden, things started happening. Drew and I call it life hacks. It’s finding ways to hack your life so that you can live the life of your dreams now without waiting for this not clear destination.

For everybody, it’s $1 million, $10 million, $15 million, $20,000, or $30,000 a month in passive income. You get there and it’s not what you think it is.

WI 362 | Wholesaling Business

Wholesaling Business: What are you doing your business for?

 

If you always are wanting more, when you get to what you define as more, you’re going to continue to want more. That’s when I put the brakes on. We can scale up but then it comes with way more overhead, challenge and time consumption. I feel like we’re completely disregarding the two humans at the time that matter the most to us. How can we be more profitable, smaller and without a lot of overhead? I can go into this business. You can go and do this business. We can make a lot of money in real estate, no problem. We don’t have to have this huge scale-up. That was the moment when we started defining what we wanted and designing it. We keep hacking.

By the way, you have a phenomenal social media presence. You’re on there. You’re inspiring. What’s the best way for people to find you on social media?

Find me on Facebook. It’s Recia Drew Davis.

Guys, follow her. It’s incredible. Who would you say would benefit from that?

Everybody. It’s not only real estate focused. Quite a bit of it is not real estate-focused because we can teach you the tactical things. There are so many resources out there that can teach you the tactics and the strategies. For us, it’s about strategizing your life and how to design that, and what are some hacks?

Can you give me an example of a hack? You’re talking about life hacks. You’re not just talking about this is how you go and lead generate a deal. I’ve been talking about this and keep pounding this. I think passion is fantastic but the purpose is way bigger. The purpose is the foundation. Passion is that fiery look in your eyes. When that passion died out at some point, maybe it’s because you’re going and going and everything else. What is the purpose? The purpose is what we’re here for. The purpose is what makes us happy that fulfills us in our lives. It’s not necessarily going to be having the biggest real estate company, biggest real estate holdings, being the boss, and these types of things.

The how that drives it is this is such a small piece of our relationship with our kids when they’re young and most influential. We can’t grind so hard through that, that we finally get there that we missed it and they’re off into other stuff and misguided. One of them is the simple thing if we want to be able to choose things like, do we want to go to Target or the grocery store with them or not? Sometimes that can be a fun family trip. Other times with the weekly stuff, “No. That’s an hour. The kids are acting up. It’s crazy.”

There are hacks out there. There are grocery delivery services. If you guys aren’t familiar with the Phoenix area, there’s something called Clicklist where you order online for your groceries. They will tell you it’ll be ready in a couple of hours. You pull up and they charge you $5. You pop the trunk, they load it up, off your roll, and you’re out of there. No more hours of serpentining. Do you know how much time you lose wandering the grocery store, no list, no plan and hungry? Buy a bunch of ice cream sandwiches and Doritos and be like, “What’s for dinner?” Take some of that out because when you got three hungry boys at home, you can be hitting the grocery store every other day. Little time like that sucks. That’s probably one of them.

You need to know when to put the brakes on because you will always want more if you don’t.

Also, not being afraid to say, “Are there other services?” Maybe bringing someone into the home. Maybe grandma could do some couple of hours to help around the house. Maybe you’ve got a friend of the family that might be willing to chip in at a small fee. Little things like that can offload the biggest time suck. If you want to repurpose that time into your business, great. If you want to make sure that you’re given the right investment into that family time for QT, you’re doing that as well. You open some of that up. Everybody gets the same 24. You’ve got to shift and take from some of the other areas to make sure you’re getting the highest best use of your time that’s not just in the boardroom but at the dinner table as well.

It’s important that when you do have all those things scheduled or you do free up your schedule, you know the times that you can work. You can put on that real estate investor hat, that real estate wholesaler hat and go to town. Sometimes it depends if you’re working from a house or an office or whatever else. There are different distractions here and there, but you can stay laser-focused. It makes you more efficient because I think when people have way too much time, all of a sudden, it’s creative avoidance. All these things start coming in, “I got to do something out there. I’ll call him after lunch. I’ll call him after 2:00, after 5:00,” and then it doesn’t happen.

If you’re like, “I got to call them here. I got to make sure that the schedule is organized and everything,” boom. You guys work from home. That’s important for you because you get to be around the boys all the time. Obviously, they have school and some other things like that but you’re around them all the time. That’s a blessing. That’s because you don’t work the 9:00 to 5:00 because you got brave and you got passionate and you got the purpose of, “I need to not be average. I do not want to have a 9:00 to 5:00. I don’t want to be financially paying into somebody else and building up their company. I want to go out and use my talents, skills and efforts.” You guys have a good real estate portfolio. Is that in Phoenix? How does that look?

Our cashflow properties are all in the Phoenix area. That’s just right now. The funny part about it is as we start to learn more, do more creative things, get exposed to different strategies, and do certain things, it’s easy to take that knowledge and put it in a different market. We’ve traveled and done some things out of state as well.

You guys are incredible. This is awesome. This is perfect. Thank you, guys. Usually, people say to get your first deal for lead generation to help somebody get into this business. Give me some advice that you would give on working with a partner.

One of the things I would say that comes to mind first is we’re fortunate that we took the sip of the Kool-Aid together. Most couples we run across have said kind things about, “You’re a couple that hasn’t killed each other.” It is that they either saw it at different times and didn’t have that same indoctrination sequence, or one person is completely opposed. It’s going to be a different road but I think you can still get through some of those with the right setup.

For us, working together, it’s being patient and understanding with each other, knowing that we’re partners in life and love first. The business is another benefactor and something great that we create together. Trying to define roles and understand strengths and weaknesses. Understanding that as the father and the rock, I am going to have to focus on sustainability and stability. At the same time, I want her to be free to be able to flap those wings and kick up dust and make some things happen. We’ll combine our yin and yang in the right way that’s going to make this thing happen as long as we stay focused and unified in love and keep those love tanks full. No success can compensate for failure in the home.

You guys are amazing. If you’re interested in joining the most proactive group in real estate investing, go to Wholesaling Inc.com/ttp. Check out what the TTP program is about. Scroll down and check out all the testimonials. Check out what the program is about. If it feels good in your gut, sign up for a call. I look forward to working with you personally. I love you guys all. As always, I encourage you to talk to people.

 

 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, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

 

Leave a Reply

Your email address will not be published.

[class^="wpforms-"]
[class^="wpforms-"]