Posted on: March 05, 2020
WI 377 | Close Deals

 

Have you ever believed in the potential of something so much that you’re willing to go all out and jump in headfirst? Today’s hardworking couple believed in the potential of wholesaling so much that they went full-time without any safety nets financially!

Fortunately, the risk Katie Fischer and Jack Huber took was well worth it. Prior to doing wholesaling, the rockstar couple was making good money doing sales. However, while they were compensated well, they didn’t get to enjoy the time and freedom they are enjoying now.

If you’d like to take a chance on wholesaling but unsure if it’s worth it, the story of today’s tenacious couple is exactly what you need to hear! You’ll not only learn how they closed 5 deals in just 5 months, you’ll also discover priceless wisdom and insights on how to work effectively as a team!
 

MARCH CONTEST ANNOUNCEMENT!

For the entire month of March, Wholesaling Inc is running a Ratings and Review contest! We’re going to fly out 3 lucky winners to Florida, paying for airfare and hotel, to spend two full days with Tom Krol!

Whether you are trying to land your first deal or scale your existing Wholesaling business, Tom is going to help you crush your obstacles and achieve your goals!

And the lucky winners will all be featured as guests on the Wholesaling Inc Podcast!

To enter, you must Rate and Review the Wholesaling Inc Podcast on iTunes (5 stars please:) and send a screenshot of the Review to Darrin at darrin@wholesalinginc.com.

3 winners will be chosen at random and announced on the Podcast in April! Good luck!

5 Deals In 5 Months With Katie Fischer And Jack Huber

Episode Transcription

I’m going to start this episode off with three important and powerful words, 1) Learn, 2) Grow, and 3) Transform. I want to bring those three words up because it goes in that order. First, we have to learn so that we have the confidence to be able to grow. Once we take in all the actions that we need to start getting our business going, that’s when it truly transforms our life. Remember, be careful. Learning is not about education. Learning is about instruction and taking action.

The education in this business comes from getting out there and talking to distressed property owners, going through the process, and getting everything started. That leads me perfectly to the guests that I have on the show. It is my pleasure. These guys are out of Mesa, Arizona. They are here in my local market. They are young, hungry, and have an incredible story to tell about the way that they started at nothing and have started growing their business every single day based on one philosophy only, and that is having quality conversations with distressed property owners. With me are Katie Fischer and Jack Huber.

How’s it going?

Who are you guys?

I have a background in sales from selling cars in Gilbert. That sales aspect helped with getting out there and talking to people. That’s how we met and met Brent Daniels and decided that we wanted to start wholesaling real estate with one that made an exciting compared to these other guys out there. That’s when we took the step to quit our jobs and start doing this. He sold cars as well, too.

You guys are they’re selling cars. You’re like this, “This is okay.” In the car business, it’s very seductive. You can make a lot of money. The issue with that is the schedule beats you up big time.

The schedule’s terrible. What made us get into this initially was I sold a guy a car, who introduced this whole wholesaling to me.

It’s not like, “Read this book, do this book, go do it.” We liked to go do it and try it out.

I had her read a lot of stuff, book by book. When she ran across to you, she was excited. I started watching you. It’s crazy and awesome to be here.

This is crazy because you guys came into my office when you came into the TTP program. You guys were like, “Let us loose. We know sales. We know that we need to be in front of people. I don’t know how to find the people to get in front of. I don’t know exactly what to say, but I’ll figure it out. Let us lose and show us what to do.” You guys did. Who got on the phones first?

We’re finding that I was having more luck because having a woman’s comforting voice over the phone, you can build rapport with people by being a woman. I’m not just saying that, but they feel more okay with telling you about their life.

You meet a lot of good people through buyers, and you grow friendships and relationships meeting people.

After all the years and years and the millions of calls in my business, the women do better than the men. They do.

They don’t scare people away as much. A scary man coming on the phone, you sound more like a telemarketer. A woman can sound more like a friend with a sweet saltiness in voicemail.

I was like, “It’s going to be Katie, hot pink bandit signs, and girl stuff everywhere. I had brought this girl thing.”

You guys decided to do it proactively.

It’s about finding the customer and the people that have property they need to sell.

When you started going, the first day that you got on the phone, how did that go? Can you remember back to that? Can you remember getting in? You had an app that you were calling people on already. Was it PropertyRadar? What was it? Didn’t you have something that you were already getting phone numbers and already calling people on driving for dollars?

We were driving for dollars when we started early, but we realized we were calling on the wrong properties and not the people that wanted to sell their houses. We realized absentee owners are super important. We started banging out the phone calls. We called and called. It took us like 1,500 contacts to get our first deal. We didn’t have the Power Dialer™ or anything at this time. We were hand dialing every phone call.

We didn’t know the power of the Power Dialer™.

If you’re reading this, go to Brent Daniels’ YouTube and check this out. It’s great to put faces to voices. We’re talking about the Mojo Dialer that we all use in our business. There are a ton of different dialers that you can use, but it’s the most user-friendly. The learning curve is very short. You get on there and have 1,500 contacts. Are you getting into search?

For sure, especially you get people like, “Sure,” and they string you along. They’re like, “I need $500,000 for it.” It’s a $60,000 house. They shoot down your hopes. You have not to get discouraged every time that somebody says yes, and it’s not a deal.

Do you naturally have that? Is that something that you’ve had to build up?

WI 377 | Close Deals

Close Deals: It took us 1500 contacts to get our first deal.

 

When we first got our first seller to say, “I’d accept the cash offer,” we sat there and were on the phone. We didn’t know what to say back, “Let me talk to my boss. I’ll call you back.” We don’t have a boss. It’s something that you didn’t know what to say.

What I’m talking about is all that rejection and being able to put all that all to the side and see the bigger goal. It’s all the Law of Cause and Effect. If I talk to enough people, the effect is, “I’m going to be able to get a contract.” People talk to me all the time, “Brent, I called for an hour. Nobody wanted to sell. This doesn’t work.” It takes time.

You cold call for eight hours a day and get nothing at all.

How do you do it? What goes through your head that keeps you going?

The motivation of getting a deal and getting your first paycheck makes you realize that one deal can take you months. Save your money and do it right, and you will keep your eye on more deals. You’ll never run out if you keep trying.

That’s hard too because a lot of people, even family members, some of our closest friends, would say, “What are you guys doing?” It took us a couple of months to make a deal. Our water got shut off, and we were down to our skin. For some reason, we woke up and said, “Let’s keep pounding the phones, keep talking to people. I saw the potential of what this could do. I know there’s somebody out there that’s going to say yes.”

You guys were getting your utilities shut off. This was down to the nitty-gritty. This resonates with a lot of people. Some people are doing it part-time, and that’s smart. Let’s keep it going. You guys went crazy mode.

We started part-time for a little bit. We realized the potential so quickly if it was two people doing it. It’s so much better.

You guys went 100% in, no safety net financially, and it was getting down. You guys made a calculated move at that point because you knew you had some leads. It was the timing of when these are going to close and income coming into your account.

We had a deal closed before we officially quit. I ended up being that deal where it ended up being the whole lawsuit. There’s a legal action that can come along with all of this too, which is crazy stuff I didn’t know when I first got into this.

There’s a bunch of avenues that you got to be ready for.

It’s worth taking little $1,500 deals if it’s going to give and lead you to the next deal.

What happens? Let’s educate people so that they understand what happens.

We’re cold calling. It was a Saturday, and the seller answered. He said, “I’d accept a cash offer. I’m down here now. Mowing can be down here for two more days. How about you come down and take a look at it?” We go down there. It’s 115 degrees, hot middle of summer. This house is in Phoenix. It’s about $120,000 house. It’s not the nicest thing. The guy answers the door. He’s dripping sweat. He’s hot. He’s like, “Come on in. Would you like water?”

He’s like, “I need to sell it. My daughter lived here.” It was his parents’ property, and he wasn’t living there. It was an advantage for us. It was in bad condition. He wanted to sell, and we negotiated. We got the skills there, and that’s when we didn’t know. He’s like, “I want $110,000 for it.” I was like, “Let me go call my boss.” I called you, and that’s when I’m like, “Do you think we could lock it in for this?” You’re like, “Lock it in.” At that price, we locked it in, and that was a $30,000 deal. We were like, “Let’s do it. We’re quitting. We’re going all in. This is awesome.”

You’re doing it with escrow. You haven’t gotten the check yet.

On the day of closing, we get a knock on our door. It’s the mailman. It’s this envelope from the law firm. He says that he was intoxicated and impaired when he wanted to sell his property, and he is no longer going to sell it. That’s when we sold that property to Corey Geary. Shout out to Corey.

We interviewed him too. He’s on one of the episodes. Check him out.

We sold that to him. That’s when he’s like, “I got the guy.” He got his lawyer involved. Long story short, we closed on that deal. We learned it’s worth sticking to it, and sometimes it’s not. Luckily, we did with that one, and it paid off because we got paid for that check right when our water got shut off. It was perfect timing. Everything laid out perfectly.

That was one phone call that led to all this. There are some things down there. You guys have support from Corey, from me, and all this. You guys are smart that you’re not doing this by yourself. You’re building your team so that you know you have people to go to when these things happen.

You’ll meet a lot of good people from buyers. You grow friendships and relationships from meeting people here too.

Is that your first deal that closed?

No.

WI 377 | Close Deals

Close Deals: If you meet people that have other properties, if you build enough rapport and connect with them, it’s worth the deal.

 

Let everybody know, how many deals have you gotten paid off?

Deals we’ve got paid on would be six deals.

The days of having to worry about your utility bills are over. You have got this momentum going.

Every check that comes in adds to the savings.

Here’s the thing. Did you hear what they said, the savings? If you’re putting it all back into marketing, that is not savings. They’re keeping it for themselves, their portfolio, and their wealth. The reason they’re able to do that is that they’re prospecting for these deals. They’re not spending a ton of money on marketing. They’re using their skills, tying their ability and talents to talk to distressed property owners.

Not that I’d recommend it to everybody, but we haven’t done much advertising. All we pay for is Mojo and DealMachine. DealMachine is awesome.

The coupon code is TTP.

You can’t use DealMachine without wholesaling. It’s the best. Other than that, we’ll buy some ListSource™ and then Batch Skip Tracing.

That’s not advertising.

Bandit signs might get you a deal here and there, but in the beginning, it’s not necessary.

With wholesaling, you can’t just be okay with working nine to five. Sometimes, you have to work the extra two hours to get another deal.

I do want to do advertising, but now, it’s great

Especially as you’re getting your first deal. Let’s talk about an exciting deal. Let’s talk about a deal that didn’t have to get attorneys involved. What’s the biggest deal? Don’t give me the numbers yet. Let’s talk about it. Let’s go through the four pillars of pre-qualifying. If you’re reading this for the first time, the four pillars of pre-qualifying a lead are the condition of a property, timeline to sell, motivation, and price.

Before you’re going on an appointment or sending a contract, you know that this is somebody that’s likely going to do business with you. That’s so powerful because when we’re starting, we spend a lot of time wasting our time going on appointments that are not real appointments. We’re excited that somebody was nice to us, called us back, or answered the call. We had a good conversation, and they wanted us to come over. It happens every day of the week. You’ll run around all day and not make calls. It clogs up your pipeline. Make sure that you’re pre-qualifying. Give me that one.

We’re cold calling. I called an elderly man in regard to a piece of land he owned in Phoenix. He’s like, “I have plans for that. I’m not going to sell that.” I asked him, “Would you have any other properties you’d consider a cash offer on?” He’s like, “I do have this one. This is the address. This is what I want for it. Go check it out.” We met him there and checked it out, and the number he gave us we’ve locked it in. He wasn’t unreasonable.

What was the condition of the property?

It was a halfway house not being lived in. We went in there, and it was rough. It was very outdated. It hasn’t been updated at all. The backyard was strange. There was a little janky of a floor plan, but we made it work. That’s another one we sold to Corey. We closed on that one. He has a few other properties in Phoenix. He trusts us and loves us. He’s feeding us more deals. If you meet people with other properties, if you build enough rapport and connect with them, bring somebody flowers, like whatever, it’s worth the deal.

This comes up often as well with other people in the TTP family. I’ve got this investor. They own fifteen properties, and I’m like, “Make sure you get the price done first, and they’re willing to take that. They understand the pricing you’re going to give them, discounts, and then start chipping away at the other ones.” Don’t go and give an offer on fifteen that they’re never going to take. I hear it all the time. They’re like, “Give me the best price for all fifteen houses.” It’s so much worse. It doesn’t work.

We have an elderly lady now that we’re closing. She has over 40 properties in Phoenix. She goes, “Katie, you’re first on my list for all these properties.” I’m like, “Great.” I got my next year made from one little lady. It took a lot. We got in an argument about this one when we first started. She wanted to talk for an hour. He’s like, “That’s a waste of time.” In car sales, if people come in and look at a car and drive the car, it’s a waste of time. We ended up making it work with her, and she’s got 40 properties. She said, “I don’t trust my sons to get rid of them when I pass away.” She’s 90 years old. She goes, “I’m going to get rid of the small ones and work up to the big ones.”

The condition of that property was a little rough and had a weird floor plan. With his timeline, how fast did he want to sell it?

He wanted it gone. He was sick of taking care of the tenants and things like that.

Did you have to get the tenants out?

WI 377 | Close Deals

Close Deals: Wholesaling is not for everybody. You’ve got to stay motivated. You’ve got to want to do it. You’ve got to want to make money.

 

We have him pay month to month.

I found a lot of the properties in Phoenix month-to-month. Luckily, they were okay with moving out.

Typically, what happens is somebody will sign a lease for a year. If they don’t renew the lease, that goes month to month. A lot of people don’t have actual leases on these older properties where people have been there a while because if they get rent, they’re good. If not, they know that they have to get out and get evicted. It keeps going month to month. Unless they want to change up how much they want to charge them for rent. Typically, they’ll do a new lease. A lot of these people don’t even change the rent. It’s been the same for ten years.

He could be making almost $4,000 a month. He’s only making $1,500. They’re charging $500 a room. You don’t find that.

The tenants have been there for ten years.

We got the timeline. He was like, “Now.” His motivation was he was done dealing with the tenants. What price did he want? What did you end up selling it for?

He wanted $200,000 for it. He said, “Don’t negotiate with me. If you do, you’re losing my trust.” I was like, “We’re going to take a risk.” I was like, “Lock it in. Send him the contract and sign it.” He sent it back, and we bought it for $200,000. We ended up putting it out there for $215,000 and sold it for $215,000.

You guys have done another deal that’s pretty close to that and a couple of smaller ones. You guys are rolling. It’s so exciting after you get the first one.

It’s worth it to take a little, sometimes not every time, $1,500 or $1,000 deals if it’s going to give you and lead you to the next deal. We took another deal now where we’re going only to make $1,000. It has a bunch of other properties, and sometimes it’s worth it. That’s another good thing to know.

You look at the average American at $1,000 after taxes. That takes you two weeks to do. It took you guys a couple of hours. I’ll take $1,000. We don’t know because it’s too massive. How does it work as a couple doing this business together? There are a lot of people that are either married or dating. Let’s say they’re not in a relationship, but they’re business partners. How does it work so that you guys don’t kill each other?

We’ve had other people see us get irritated with each other and have problems. The biggest thing is if you are able to separate business and relationship. That’s the biggest thing. You got to keep them separate and let them know, “I’m yelling at you now, but this is business-related. When we go have steak tonight, we can’t be talking about it.”

He’s more of the mastermind, the back of it. I’m upfront and do all the calls. I’ll do the contracts and the escrow stuff. It’s a little meaty work. He’s the mind of it all and tells me, “This is what we should offer. This is what we should do.” Still, sometimes we have trouble with what we offer on properties.

People think wholesaling is easy. It’s hard work.

It’s a popular book, Traction and/or Rocket Fuel. It’s a fantastic book where they talk about a visionary and an integrator, somebody putting all of it together, and somebody who goes out and kicks ass and takes all the action.

I would not say wholesaling is for everybody. You’ve got to stay motivated and want to do it. You’ve got to want to make money. You can’t be okay with going to work your 9:00 to 5:00 job and not staying until 7:00 sometimes. You got to work the extra two hours to get another deal. Sometimes people don’t realize that. That’s the problem. People think it’s easy and all it is. It’s hard work.

Where do you guys go from now? What are the next steps in your business?

There are so many avenues and many things to take. I don’t know. Now, I’d like to get bigger. I’d like to expand, but I want to do a few more deals, get a system down a little bit more, and figure out exactly what to do.

Let me give you guys some advice on the show and everybody else reading. It should be 3 months consistent of $30,000 in your pockets a month before you hire anybody. That’s the biggest thing. You could do a VA or something, like acquisition manager or some cold callers, whatever it is. That’s 3 months of consistent $30,000, and from there, as you’re building your business, you get into the $50,000, $60,000, and $100,000 a month. I want you guys to keep the lion’s share of the profits. That’s the whole point.

Wholesaling is a cash machine, but only if you keep the cash. Even as you guys talked about, we’re not doing a lot of advertising. We’re not spending a lot of it. You’re using the money and investing it in getting more opportunities to have quality conversations. You’re going to grow it and grow it to the point where now you are cherry-picking the deals you guys want to keep.

Start building that portfolio and doing some interesting and creative, like subject to, seller financing, and some other things, but stay focused in the lane you two, and grinding. A year or six months from now could be a whole different thing. $30,000 for 3 straight months is going to give you a lot. You’re going to be able to have a good bank account, and you’re going to have the consistency that you need to have that confidence to take and hire somebody and have their financial future in your hands. That’s a whole different deal. Jack, I’ll start with you. Give me some advice for people starting out. What do they need to strengthen their mindset as they’re going into this beautiful, wholesaling opportunity, but it can also be very cold, harsh, and tough?

My advice to anybody new or starting fresh is you got to be hungry. I know a lot of people say that sounds cliché, but it’s super true. You work your ass off. Let’s get to work, and let’s go. That’s about all I can say.

Let’s make this tactical. When you say work, they get up and start work. At what time and what time do they end?

If you want to create a schedule for yourself where you’re sticking to it and dedicated, that’s huge for you. We have a schedule that we follow every day. If we fall off track, we say, “We’ve got to get back to work. This isn’t where we want to be yet.”

I agree with that completely because that’s my main advice. You got to stay on track. It’s easy being your own boss and not having somebody over your shoulder telling you, “Get back to work.” I’ll be off on myself in the kitchen doing dishes. I’m like, “I need to be calling now.” It’s staying motivated and knowing that if I make this extra call or call this extra two hours, it’s another deal. Stay motivated and keep trying.

I’m excited about the next months with you. You guys have always communicated so well. You come into the office. You participate. You’re networking with everybody in here. I love working with you.

You’re the one that made us excited to do this, and that caught our eye to bring us into wholesaling. It changed our lives. That’s why we want it to change everybody else’s. If you’re motivated to do it, I say, “Go do it.” It will change your lives.

If you’re interested in joining the most proactive group in real estate investing, it is with these guys in the TTP family. Check out the TTP Program at WholesalingInc.com/TTP. Check it out, scroll down and see what it’s all about. Keep scrolling and check out all the testimonials. Nobody has more. Check it out. If it feels good in your gut, sign up for a call. I’d love to work with you personally. You’re the best. Thank you.

Thank you for having us.

Until next time, guys. I always encourage you to talk to people. See you. Love you.

 

Important Links

 

About Brent Daniels

WI 480 | Critical Energy ShiftsBrent 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!

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