Posted on: February 14, 2020
WI 363 | Unstoppable Wholesaling Machine

 

Today’s rockstar guest is Tom Krol’s favorite rhino of all time and with good reason. For starters, she closed 5 deals (and made a whopping $17,250) just by listening to the Wholesaling Inc. podcast!

Martine Jackson is the founder of Hoover Homes, LLC and the host of the #DoItMovement podcast. She started wholesaling 5 years ago and has closed many lucrative deals since then.

In this episode, Martine shared how she found and closed a profitable deal that made her $20,000 richer. She also talked about some of the factors that have contributed to her success and have made her an unstoppable wholesaling machine!

As an added bonus, you’ll also hear Tom get into coaching mode and share priceless tips and wisdom that can help you go from wealthy to uber wealthy. If you’re ready to make it big, this is one episode you just can’t miss!

How To Become An Unstoppable Wholesaling Machine With Tom Krol

Episode Transcription

We’ve got an amazing guest, my favorite guest and Rhino of all time. We are going to go on a great adventure. Her name is Martine Jackson. Everyone says, “Why is she your favorite Rhino, Tom?” I will tell you the reason because I say this no matter where I go. As a matter of fact, I was in a meeting in Birmingham, Alabama. I talked about my favorite Rhino, Martine Jackson.

She is a rock star, and the reason is that before she came into the tribe to be a Rhino, she did five deals on her own by reading our blogs, the one you’re reading now. Thank you, everybody, for joining us. If you don’t know what wholesaling is, wholesaling is very simply the art of consistently finding discounted properties. That’s all it is.

It has nothing to do with your exit strategy. If you can get good at finding discounted homes in your neighborhood or another neighborhood, even virtually, you can find financial freedom very easily. Wholesaling is difficult. It takes grit, determination, money, perseverance, attention, focus, hard work, and all that good stuff, but it’s doable, possible, and I love it. I’m excited about it. I know my guest, Martine Jackson, also is excited about it. We’re going to be going over a deal that she did. I’m super excited about that. Martine, you’ve been on the show several times, and you’re my favorite guest.

It’s always a pleasure to be on the show.

Let’s jump in right away. Tell the audience a little bit about yourself. I know they want the meat and potatoes of the deal and how they can follow your advice and do what you did, but before we get started, can you tell us a little bit about who you are and how you got started?

I started wholesaling a few years ago. I was in the weeds trying to figure out what to do. I was trying things, and it wasn’t working. I tried this, and it wouldn’t work until someone directed me to your show. They were like, “Have you heard of Wholesale Inc?” I was like, “What’s the Wholesaling Inc?” I started reading your blogs, and you were telling us what to do.

I was like, “Say no more. I’m going to do whatever you say to do.” I ended up getting five deals from reading your blogs religiously. It launched my wholesale career because then, you found me out and had me on the podcast. We talked about the deals, then I got added to the tribe, and things skyrocketed because I got to hang around people doing so much. That’s a little bit about me. This show is the bomb.

By the way, we usually save this for the end of the show, but Martine Jackson also has her own podcast that is worth checking out. I was a guest on that podcast last season. It is a phenomenal podcast.

If you’re looking it up, it’s the #DoItMovement Podcast. We encourage people to take action.

WI 363 | Unstoppable Wholesaling Machine

Unstoppable Wholesaling Machine: A water list can only be obtained by developing relationships with people in public utilities. Show them how you could add some value to them. And in return, they can send you a water shut-off list.

 

Massive imperfect action. Progress, not perfection. It’s not about real estate. It’s about hard work and finding those deals. Most people don’t want to sell their houses, and they certainly don’t want to sell them, even the ones who do at your price. They’re out there, and they do exist. It’s all a numbers game. It’s more hard work than anything else. It’s more like a pawnshop than a real estate business. We want to find out about your deal. First of all, I know you sent your paperwork in on this deal that we’re going to review, which is awesome. Let’s get this right out in the open because I don’t even know the answer to this question. How much did you make on this deal that we’re going to be reviewing?

It was $20,000.

It is a life-changing amount of money. I want to know how you did it so that anyone reading can do it. I am super impressed by you in every single conversation we have. Let’s talk about this deal. My first question is, how did you find the seller who wanted to sell at a discount in exchange for speed and convenience?

What we did was we sent a text blast. I believe this was on the water list. It’s the people that have their water’s been shut off. We sent a text blast to the seller. They were interested in selling. The acquisition manager got on the phone with them.

We already have liquid gold from Martine Jackson. This is why. First of all, text blast water list. What are we talking about? First of all, what is a text blast? Are you using a service? What is the message that you’re sending to these sellers to get them to call you? Tell me. First of all, let’s go all the way back to the beginning. How did you get the seller’s phone number? That’s my first question.

We got a water list from the city of people who had their water shut off within a certain amount of time. We took that list.

I hate to keep interrupting you. I know there are a lot of people reading, and they’re going to have this question. Every single reader of the show owes us a five-star rating and a written review the moment you are done reading this episode because this is liquid gold. I expect every single one of you to be in an abundance mindset, a go-giver, and to rate and review this show. I would go one step further, pause reading now and go and do it because in order to receive, you have to give. I never ask for this.

We have millions of downloads and 600 reviews. Come on. Who is going to be a go-giver now? Back to topic. Let’s talk about this water turn-off list. The list that we’re talking about is one of the hottest lists now are people who have their water turned off for lack of payment. They’re not paying their water bill. The water gets shut off. How did you get that list? I want details here because everyone in the tribe always says to me, “Tom, that list is so hard to get,” which means a hard list to get means more money and profit.

It’s a bad list.

A hard list to get always means more money.

How did you get the list? Let’s talk about that.

I developed relationships with people in public utilities. I showed them how I could add some value to them. In return, I asked if it was okay if they sent me a water shut-off list. We were successfully able to get that, but it takes perseverance. You’re not going to get it the first time. You have to keep asking or build a good relationship with somebody to get it.

Let’s get even a little bit more specific. Are we talking about people in the office or people in the field turning the water off?

The people in the office.

Martine Jackson is successful. Why? It’s because she built rapport with the people who can get her the information that she needs to get her hands on. I know it sounds so simple, but everyone should reread this and understand what she’s saying because when you’re willing to have awkward conversations and put yourself out there, it isn’t easy.

I can tell you now. We can ask Martine this question, but I guarantee you it wasn’t easy for her to walk down to the department and get rejected a few times, then say no and keep showing up looking like an idiot. It’s because she doesn’t care what people think about her. She had awkward conversations. That’s what the 1% does. I don’t want to harp on that, but I’m always impressed by you. You’re such a rock star.

You taught me what to do through your show because I was already used to being rejected for a code violation, so this was nothing.

I’m with you. I get rejected all the time. Since I was born, I’ve been rejected all throughout life. I have thick rhino skin, so I love it. You got down there and built a rapport with all these people. You get your hands on a list of people. Was it the city, county, township, or municipality?

It was the city. It was in Richmond. In Richmond, we’re not in a county. It was in the city.

WI 363 | Unstoppable Wholesaling Machine

Unstoppable Wholesaling Machine: Skip tracing means getting contact information for homeowners, typically telephone numbers and email addresses. You can use Lead Sherpa. You don’t have to have an account with them to be able to skip trace.

 

Now, you get that list. It says John and Sally Smith. They had their water turned off. How did you get their phone number?

The way you get any lists from the city is not in a marketing form. You have to get someone to scrape those lists. When I say to scrape the list, you have to put it in a form where we can look up the telephone numbers. They may give you all the parcel numbers or something like that. You need to get either you or VA to go in and put the owner’s first name, the owner’s last name and the property address. You have to separate it on excel sheets and get the mailing addresses. Once you have all of that information there, you can skip trace it.

Skip tracing, what does that mean? Who do you use?

For skip tracing, that means that you’re getting contact information for these homeowners, typically telephone numbers and email addresses. I use Lead Sherpa to do skip tracing. I believe that you don’t necessarily have to have an account with them to be able to skip trace. It’s $0.15 per hit. It means that if they don’t have a telephone number for the person, they won’t charge you for that.

I’m a big fan of Lead Sherpa. If you are an audience of the show, we have a program with them where we got you super awesome deals directly from Lead Sherpa. I didn’t know Martine Jackson here was going to say Leads Sherpa, but I love Lead Sherpa. You went ahead and used skip tracing software from Lead Sherpa. I’m assuming that you then go from there and send the text message.

That’s correct.

This is big. I hate to keep saying this, but it’s so funny because you have other wholesalers in your market, but I want you guys to realize this is what an abundance mindset looks like. This is what a go-giver is. I’m going out on a limb here, but this is where you believe in collaboration and not competition. Otherwise, she wouldn’t be sharing this information with us. I love it. I happen to know Lead Sherpa. What does the message say?

I know this is a sidebar, but a lot of people overcomplicate what we need to do, but it’s very simple. The message we send says, “I’m Martine. I was looking for the owner of this address. Do I have the right person?”

That’s beautiful. Do you notice that you get a lot of text messages and phone calls back? What happens at that point?

Getting lists is not going to be in a marketing form. You have to get someone to scrape those lists.

Either they’ll say, “You have the right person.” Most people don’t even say, “What do you want?” If I were to ask that on the phone, people would probably be like, “What do you want?” They usually say, “No. You have the wrong person.” Once they say yes, we’ll ask them if they’re interested in selling.

Let’s talk about that a little bit. On this particular deal, did the seller text back or call back?

Text.

What do you do at that point? Do you call them? What happens after that?

Once they text back, we’ll ask if they’re interested in selling. Some people will say call them. Sometimes, we’ll initiate it. It depends on what they’re comfortable with. Some people are more comfortable with texting. Eventually, when we get to the point where we’re agreeing on a number, we’re going to get on the phone with you. We will try to set an appointment to do that.

You now get this basic introduction to the seller. The water was turned off. We know that. What was happening in the seller’s life that they were interested in selling? Why did they decide to sell to you and not list it with an agent? What was going on where they wanted a cash offer? Tell me a little bit more about the parameters of the deal. I also want to know what happened when you met with the seller.

The crazy thing is I’ve never met with the seller.

This is why Martine Jackson is my favorite Rhino. She never even met with the seller.

If you want to get full disclosure, I have a team in place now. They pretty much handled everything for me. I only showed up to closing. The situation the seller was going through was that she had a lot of bills. She used to be a landlord because she had more than one property. She had a lot of bills that were coming due soon. She wanted to sell it fast because the water was shut off, and she had a tenant there. Maybe it was a problem tenant. They stopped paying their water bill. She had all these other bills that she was incurring. She wanted to close so she could get rid of the headache from those other bills that she had.

WI 363 | Unstoppable Wholesaling Machine

Unstoppable Wholesaling Machine: Go out and find a great property that you can buy. You have 90 days to do this from the time the property sells. Then sell the property and put the money into a 1031. You don’t touch it and you pay zero tax on it.

 

Was this a tired landlord?

Correct.

I’m taking a note here. You put the property under contract. Did you close on the property? Did you assign it? What was the exit strategy?

For this one, I signed it. When I say show up, I get my checks wired to me now, but I meant to show up to get the check.

You put the property under contract. How many real estate investors with cash do you have on your list that would be interested in a contract like this?

A ton.

Over 300?

It’s over 300. My list now is probably close to 1,000 people.

Would you say that wholesaling has given you financial freedom?

Pick one person that is crushing it and killing it, and just follow that person’s journey.

Yes.

It’s because $20,000 on one deal alone. That’s insane. I’m sure that there are costs in there for Lead Sherpa and other things. I want you to know one of the things that you’ll notice with every single person on this show who feels like they’ve reached financial freedom where they are now. Their wings are spread out, and they’re soaring. They always do a few things that are always a common thread. They’re building a team, which is always a common thread. Martine already said that. They’re always reading. What was the last book that you read?

I’m reading How to Win Friends & Influence People and a Robert Kiyosaki book Retire Young Retire Rich.

Martine and I didn’t have a pre-call before this show because I said, “You’ve already been on the show multiple times.” I didn’t even ask her if she was a reader. This is another common thread. What’s the third one? They always have a big list of people interested in real estate with cash. The reason is that the more people you have on that list fighting over your contract or when you buy the house and fighting over to buy it, the bigger your assignment fee or your profit margin will be every single time.

If you have a small, reliable list of cash buyers, all that means is you are leaving a lot of cash on the table. Don’t do that. Martine checks every single box. I mean this in a good way, but there’s nothing so special about her. It’s like, “We always knew Martine was.” No, she’s following simple rules. She’s out of her own way. She figured out the system. She followed it, and that’s an easy peasy lemon squeezy. That’s awesome. The Kiyosaki book, what is the name of it?

It’s Retire Young Retire Rich.

The other one was How to Win Friends & Influence People.

I don’t think I appreciated that book as much as the first time I read it by Dale Carnegie.

I feel the same way. The first time I read it, I thought the book was a little bit too methodical about the way you manipulate people. I was like, “That doesn’t sit right in my belly.” I moved on from it, but then I revisited it. I was like, “It makes you more authentic if you follow.”

WI 363 | Unstoppable Wholesaling MachineI’m like, “Why didn’t I pick this up the first time?”

It’s funny. I had the same feeling in my belly. I was like, “I didn’t like it.” I don’t even think I finished it, and then I was like, “This is a good book.” I’m with you. Is there anything you want to leave for anyone reading this that can help somebody, like a download, a script, or things you wish you would’ve known before you got started? Is there anything you want to share with our audience to help them get started in wholesaling or do their next deal?

The only thing I can think of is you pick one person out here crushing and killing it and following that person’s journey. For instance, for Wholesale Inc, I used to read it religiously. I used to pick up stuff from the show, but I was only reading Wholesale Inc. I wasn’t listening to BiggerPockets and this one. I was only listening to one because it can get confusing if people are doing different things. If you’re following one person who is doing that thing and you follow what they’re doing, you can reach their success. That’s what I would tell people.

I cannot overstate that enough. I agree. It was the reason for my success because when I started, my brother was telling me what to do. I was bankrupt and broke. I had creditors calling and all of that. What happened was he would tell me what to do, and I had to learn how to get out of my own way. A lot of times, what people do is they put the advice of their mentor through their own personal filter and pick what they’re going to follow, or they listen to multiple sources.

I remember with Todd when I would do that when my brother taught me how to do this business and how to wholesale. He was much tougher on me than I was on the students. When I would question him, he would hang up on me. He wouldn’t call me back for three days. He was rough. He was like a drill sergeant or Mr. Miyagi to Daniel-san. Learning how to submit is the key.

One of my friends and mentors was Orrin Woodward. As a matter of fact, I have his book sitting on my desk now. It’s called The Financial Matrix. He’s a dear friend, and he taught me this also. He said, “Be a leader, not a bleeder.” There are paths that are cut out already, but we have to learn how to submit to those paths. When you start following multiple people, you keep crossing paths, and it will never get you there.

You’re a rock star. It’s always a pleasure to have you on the show. Jason Nichols’ is a dear friend. Lead Sherpa is a rock star service. He gave our audience a sweetheart deal on Lead Sherpa. What do you get going on? Anything exciting?

For me, one of my rental properties is vacant, so we’re fixing it up so I can flip and sell it because it was too far. Besides that, I’m not doing a lot. I’ll probably be working on my business, but my team is looking for deals.

How much do you owe on that property?

I owe $200,000. Its worth depends because it’s in the country. It’s probably worth maybe $320,000, but I plan on putting it on the market for $299,000 because I want to sell fast.

What are you going to do with the cash?

I will probably put it back into real estate.

WI 363 | Unstoppable Wholesaling MachineIf it’s going to go back into real estate, I’m going to make a suggestion. This is where the coaching kicks in. Here’s my being a coach-mode. I’m going to take off my wholesaling hat. I’m going to put on my coaching hat. Here’s what I want you to do on this property. We’re going to turn your investment. We’re going to give you what’s called a financial garden.

When you have a financial garden, you’re going to put money into the stock market and gold. Robert Kiyosaki, Peter Schiff, and all of the guys that have come before us know this. A little bit of money should be in physical gold, either in the bank vault or in a safe. Cash and the stock market should be in an index fund and real estate. I suppose you’ve had that house for more than a year.

I have.

You’re not going to pay the short-term capital gains tax. You’ll pay long-term but what we can do is we won’t pay any tax at all. Go out. Find a great property that you can buy. You have 90 days to do this from the time the property sells. I’ll give you my 1031 guy and what we’ll do is we’ll sell the property. We’ll put all the money into 1031. All that means is that instead of the money going to you, it goes into your 1031. You don’t touch it, and you pay zero tax on it.

What you do is you then take all that money. We’re going to roll it into another property. Here’s the best thing. You can either choose a property from your pipeline, which is a great idea. If you want, you can find a market that you like. You’re in the middle of the East Coast, so there are tons of markets South and North. Probably South is a little bit better. Find a great 3-bedroom, 2-bath home worth more money than the home you’re selling and take that cash and buy another home and don’t pay one single penny in taxes legally. All that money you would have spent on taxes will be giving you what we call compound interest. That is going to be awesome.

That’s how you’re going to create legacy wealth for you and your loved ones. That is going to give you a much higher ROI because you’re going to be able to put that money down instead of paying taxes on it. It’s going to be phenomenal. It’s going to work out well for you. Julie and I are in the midst of doing that now because we’re relocating all of our Florida rentals to another location. We’re 1031 exchanging all of them. Take that money, 1031 exchange. I’ll send you a personal text message now. It’s a great idea. This way, you’re going to go from wealthy to uber-wealthy.

I like that. Thanks, Tom. I appreciate it.

We’re going to do it. I love it. We’ll do a follow-up show. Do you know what we’ll do? We will talk about that transition. Make sure to have all your KPIs from what you’re doing now. Remember what Kiyosaki, the way he teaches us how to measure our net worth, then what we’ll do is we’ll do another net worth.

We’ll do a show and compare your net worth as it is now with that property to how much your net worth went up when you 1031ed it. We’ll move the peg from a millionaire to a multimillionaire. I love it. Easy peasy lemon squeezy. I’m going to send that to you. You’re a rock star. Thank you so much. I am humbled and honored to have you on this show, and I will have you on again because you’re going to be our number one guest. I have no doubt. You already are. You’re very cool.

Thank you. I appreciate that. I love being on this show.

We appreciate you, and you’re a rock star. Thank you for being a go-giver. Folks, I’m going to hold this to you. I am holding you. I’m telling you. I have a good feeling. You’ve got to rate and review this show. It’s your obligation if you’re reading. We’re not asking you for any money. This information is gold. It could change your life. Rate and review the show now. Enjoy the day. That was Martine Jackson. She’s a rock star. Martine, thank you so much. I appreciate your time.

Thank you.

God bless. We’ll talk to you soon. Bye, partner.

 

Important Links

 

About Tom Krol

WI 385 | TTP Call

As the founder of Wholesaling, Inc., Tom Krol shares his insights and expertise in the field of real estate wholesaling with aspiring wholesalers. He established the business by first selling his belongings to provide a funding source for an effective marketing campaign. Mr. Krol closed his first deal as a result of those efforts has built athriving Real Estate Wholesaling business.

Tom Krol has distinguished himself as an in-demand speaker, author, and coach, as well as the creator of the Wholesaling Inc Podcast, which centers on next level tips, tactics and strategies for aspiring wholesale investors. He has appeared as a guest on more than 10 major real estate podcasts, including Bigger Pockets, Real Estate Investment Mastery (with Joe McCall and Alex Joungblood) and Trevor Mauch’s Investor Carrot Podcast.

In gaining such explosive success in the Real Estate Wholesaling arena so quickly, Tom took his expertise and desire to help others and created the Wholesaling Inc coaching program.

The Wholesaling Inc coaching program has created a tremendous amount of successful Real Estate Wholesaling investors. Many of Tom’s students have generated tens (and some even hundreds) of thousands of dollars in income. The reason why Tom’s program has helped so many people find success in Real Estate Wholesaling is his “Instruction over education” approach.

This solves the “information overload” problem that so many aspiring Real Estate investors face. By handing people a step by step “roadmap” to follow (and giving people specific instructions to follow on a daily basis), his program takes all the guesswork out of the equation and is considered one of the best training programs in the Real Estate industry.

6 Responses to “Episode 363: How to Become an Unstoppable Wholesaling Machine”

  1. Melanie

    Thanks for the great podcast! I really enjoyed it and made a lot of notes for myself. The only thing I couldn’t find is the name of the person Tom uses for 1031 exchange that he said he’ll put in notes under the podcast. Where can I find it?

    Reply
    • Sabrina Irons

      Loved this podcast! So many great pieces of advice, especially for someone who is starting to get into wholesaling. I know hardly anything about real estate but this podcast gives me hope I can learn and take actionable steps sooner than later. I also really loved hearing Martine’s experience and it’s super inspiring hearing a young women having such great success in wholesaling.

      Reply
  2. Clint Weir

    I have the same question as Melanie and is the Lead Sherpa link the one to get the Wholesaling Inc. pricing because it doesn’t appear that way?

    Reply

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