Posted on: March 10, 2020
WI 380 | Cold Calling

 

If you’re looking for a profitable business you can do on the side, you can never go wrong with wholesaling. In fact, today’s incredible guest works 100-hour weeks yet still manages to run a thriving wholesaling business on the side!

Blake Barnes is a former marine turned farmer from Modesto, California. He’s also a new wholesaler who swears by the TTP method. The hardworking 28-year-old learned about wholesaling from a relative but didn’t act on it right away.

While it took him a year and a half before he finally gave wholesaling a try, there’s no denying it was one of the best decisions he has ever made. After all, he netted $10,000 just from his first deal alone!

If you’d like to hear Blake’s phenomenal wholesaling journey, the techniques he used to find and close deals, and how TTP has helped him make things happen, don’t forget to tune in!

 

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 to 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!

Is Cold Calling The Best Way To Find Deals In 2020? With Blake Barnes

Episode Transcription

We are going to be running this contest the entire month of March 2020 and it’s this. I want you to head on over to iTunes. Rate and review the show and send that review to Darrin@WholesalingInc.com. We’re going to choose 3 people who have sent those reviews to come down to beautiful, sunny, gorgeous palm trees, breezes and coconuts in Florida to spend 2 days with me.

We are going to be going over wholesaling either how to get your first deal or next deal and explode your wholesaling business. I cannot wait. I’m going to pay for your airfare. We’re going to have a great adventure. All you’ve got to do is to rate and review the show. Send a picture of that review over to Darrin@WholesalingInc.com. Let’s get started with the episode. I’ll see you soon.

My guest comes from Modesto, California. He is going to break down his very first deal but also he’s going to talk you through every challenge and exciting moment that he’s had in this business, how he found it and how he is succeeding. It is my pleasure to introduce Mr. Blake Barnes to the show.

Brent, thank you so much for having me. I’m excited to be here and talk with you and your audience.

First off, you live in Modesto, California. That’s where you’re doing business. How did you find wholesaling as a passion or something that you want to commit to?

I stumbled across wholesaling through a family member who’s been doing it back in the Midwest. He’s like, “You got to try and check it out.” It took me a year and a half of a little bit of analysis paralysis listening to this and that. Finally, I’m like, “I got to do something about this.” I was listening to you. With the budget that I had, TTP fell right into what I wanted, especially with being proactive. I pulled the trigger and here I am.

Before you joined any programs, coaching or the TTP family, you were out there on your own?

I started handwriting letters. I had a whole massive list and I’m sitting writing letters. I’m like, “There’s got to be a more efficient way to doing this.” I took a break because I worked for a farmer. I’m a farmer here too. That’s my full-time job, 50 hours a week. I only have a limited amount of time that I can do this. I had to figure out the most efficient way with the time that I got. I started writing letters and that was not working for me. After that, I was driving for dollars. I heard about that so I started driving around. I started hand dialing and from there on out, it lost its luster. Over the summer of 2019, I didn’t do anything with it until the fall of 2019 after harvest.

The money in wholesaling is good, but the real gift of wholesaling is freedom of schedule.

My family came from Iowa and they were all farmers. This is not an easy life. This is not like, “I’ve got a ton of energy at the end of the day to go do some side business.” You’ve got an incredible mindset. What is it about you that you want something different besides what you’re doing? A lot of people reading this have part-time or full-time jobs, be in the military or some service but still have this passion. It happens very often that it takes longer and things and distractions come up. What was the moment or thought that was going through your head that said, “I got to commit to this and this is the right time?” When did that happen?

It was the middle of harvest. I run a night shift during harvest. If it’s harvest time, it’s 100 hours a week. I work from 6:00 PM to 9:00 AM. I got all this time myself and I’m managing this plant. I’m sitting there like, “I got to find something out there. Either way, I’m doing this.” I had million different business ideas and ways of running them through like, “I can do this and that.” I always came back to wholesaling. For me, the money that you can make and the time that I had available that I could use is the most efficient and best way that I can do it. I was like, “What am I going to do?”

As soon as the harvest was over, I called and talked to you. That’s what it was. I work my butt off for somebody else and then I was like, “I’m tired of this.” I had two kids and my wife who I married for years. If you added it up, it’s two months out of the year when you don’t see them at all. They’re in the house for years which adds up being missed out on a few years of their life, especially in the fall when football season rolls around. I got a boy that’s playing ball. I’m like, “I want to be there for all that.”

The most beautiful reward of this business is freedom of schedule. People talk about money. “The money is great. This is a cash machine and lottery.” The real core of it is you get the freedom of schedule. For most people out there, that is something that they never achieve because you get stuck in what you’re doing the 9:00 to 5:00 or in your case, the 9:00 AM to 9:00 PM.

If you get into that rhythm and then you start buying things, having responsibilities and got stuck in that trap, the only way out of that is these beautiful side moments when you can peel away, go and focus on these businesses that you are committed to but nothing happens unless you have that hunger to get out of your current situation, number one. Number two, you’ve got to commit. It’s got to be like, “This is what I’m going to do. I don’t care if it takes several months.”

That splinter in your brain that is wholesaling kept poking you while you’re sitting at your job, doing your work and away from your family. To the point where, you are committed, started going and taking action. Let’s talk about what your schedule looks like. How do you be a 50-hour, a week farmer and a wholesaler?

I took my whole day. I started working at 7:00 AM. I work until 4:30 PM or 5:00 PM. I’m not going to isolate my family. That’s not what I want. What I do is wake up at 4:30 AM, make a pot of coffee, go out and drive around the neighborhood for an hour in the morning. From 4:30 to 5:30 AM, I’ll drive around town. Some people think it’s creepy a little bit. Some guys come out in the middle of the night. It’s weird but it is what it is. I then go to work.

Are you using an app?

WI 380 | Cold Calling

Cold Calling: You just have to get over your fear of cold calling. It will get easier once you do.

 

I use DealMachine.

DealMachine is phenomenal. It’s the best of the best. It’s the Rolls-Royce for driving for dollars app. It’s super easy. If you use the coupon code TTP, get $10 off. It’s $120 over the year but it’s something so use the coupon code.

I go to work, come back at 5:30 and beyond I’d be calling through the dialer. I call for an hour at night, 5:00 to 6:00 PM. I found out that the dialer that I use has an app on my phone. I can start dialing over lunch so I didn’t get two hours of dialing time a day.

Are you a workaholic?

Yes, a little bit.

That’s a funny word. You would almost have to be obsessed. Not only do you have this intense job but also in your lunch breaks and between 5:00 and 6:00. I can’t tell you how many people I talk to on Instagram, Facebook or YouTube and they say, “I can’t do it. I can’t get on the phone. I’m so scared of it.” You’re like, “No. This is what you got to do.” You then take action.

It didn’t start well like that. It’s the same with getting on the phone. In the beginning, when I was handed, it was like that. I’m like, “I got the number dialed in the phone and I’m looking at it.” It’s crazy but it is what it is. The longest is 10,000 and you can’t dial it but you got to get over it. Once you get over it, it gets easier. I’m still learning. I don’t know half of anything but you just got to go. It hasn’t been perfect action like you say all the time but that’s what we’ll get done.

I believe the author’s name is Mel Robbins but there’s a book, The 5 Second Rule. The essentials of the book are you count down from five seconds and then take action. I always had that because I had the same problem. I would drive by a house and it would have For Sale By Owner sign. This is old school, before BatchSkipTracing and all of these tools that we have. It had the phone number there and looked like a rough property. I was like, “This could be a deal.” I put that phone number in there and I’m like, “Just press call.” Then I’d be like, “I’ll wait until I’m back at the office.”

When a seller gives you a price, always ask if that’s the best they can do. Give them the choice.

I’m centered and focused. I’m not in the car and I’ll do it. I then started realizing, “When I get back to the office or home, I’m not making these calls. I need to make it now.” I was like, “3, 2, 1, go.” If you’re out there overthinking it, go 3, 2, 1, press go and see what happens. That’s essentially what you were doing. You start getting to the point where you forced yourself. You got into the TTP program and we gave you the tools and the strategies to be able to make that seamless and efficient but in the beginning, you were old school.

I had an Excel spreadsheet after I skip trace. I’d zoom in as far as I could. You try to remember the number and then you’re like, “I got to go back and write it down.”

Where did this work ethic come from? Has it always been in you? Is this something that your family instilled in you? Let’s get a little bit deeper here so that people reading that relate to you can also use you as inspiration to take action now. If you are reading this, make sure you go to YouTube, Brent Daniels – Real Estate to watch us.

I’m from Indiana originally. My dad is an entrepreneur. I grew up as a hog farmer in Indiana. We moved to Oregon when I was a kid. I was always involved in agriculture. He started a landscaping business and flipped houses for a little while. One thing that I appreciated about how I grew up was I was always involved in everything with whatever it was and whatever dad was doing. It didn’t matter if I was eight, I was working in the hogs.

I created that work ethic from a young age. You know how to work, you watch the older guys work and you understand how it works. For me, that was a hard transition. Wholesaling is a different work. It’s manual labor, ten hours a day working. For me, it was hard to translate that into staying on the phone and being on the computer because hard work is exerting yourself.

This is a little bit different but that’s where the work ethic comes from. I was in the Marine Corps for four years. That coupled with the work and discipline that comes with that. There’s a guy named Jocko Willink who wrote Discipline Equals Freedom. That’s what it is. It sucks but he says if it sucks, it’s good. You got to figure it out.

He has some incredible books, Extreme Ownership is a great book as well. Let’s break it down and talk about a deal and some success that you’ve had. We’re going to go through the four pillars. If this is your first time reading this show, whenever you pre-qualify a distressed property owner, you want to pre-qualify them based on the condition of the property, their timeline to sell, their motivation and their price.

The more that you pre-qualify and the more that you have answers to those four pillars, the more likely they’re going to sign a contract with you when you get on the appointment or you send them the contract. It is critical that you pre-qualify. First of all, what was the list that you found this deal on?

WI 380 | Cold Calling

Cold Calling: You’ll come across sellers who’ve done this before or think that they’ve done this before. So just work around that and let them talk. Listen and agree on a price. It’s that simple.

 

This was from driving for dollars. It was a property that I found earlier in 2019 when I was doing this on my own. I found it in February or March. I had contacted the guy back then. I blew it up by inexperienced. I didn’t know what I was talking about. I messed it up. I come back to it in November 2019. I pull up my driving for dollars app and still have that guy in there. The first morning driving around, I drove by the house because for some reason I knew, this is a deal.

The house still looks the same. It was vacant but run down and needs a new roof. I called the guy and I’m like, “There’s no way can you remember me.” I called him and he doesn’t remember me. It’s the same situation. He shot me the price of what he wanted and it was quite a bit less. Depending on the work, I didn’t know. This is my first time doing it. We agree to a price of $195,000. I take it to a cash buyer and made $10,000 on the deal.

For anybody out there, there are sellers like this who’ve done this before or think have done this before. He’s super aggressive and knows what he’s talking about. You got to work around that. He was one of those guys who like to be quiet and let himself talk. He gave me the price. I’m sitting there empty and he’s like, “I don’t want to deal with it. I don’t care anymore. I’ll let it rot if I don’t get what I want for it.” We agreed to a price. The cash buyer came at the end and I made $10,000 on a deal.

First of all, let’s ring this thing. His first deal is $10,000. It’s incredible. Let’s break this down. The condition of the property was vacant and it needs a total remodel. You’re driving by this like, “This thing needs some love.”

The header above the garage door is sagging. It’s missing a few spots. The roof was an old cedar shake roof. They turn all up and get all nasty rotten. It has single-pane aluminum windows. There’s vegetation everywhere so you can tell it was empty.

As we’re going through these pre-qual, we understand the condition and it sounded like its timeline was, “I own this thing free and clear. It’s not eating me alive financially. Give me my price or I’ll wait until the market gives me the price.” Its timeline was open-ended. The point that I want to make with this is this happens sometimes, especially if it’s an investor or somebody that owns this property, they’re not living in it, it might be a rental, they might have other options or not financially motivated like stress causes their motivation.

They’re in a position where you got to peel back all the layers to see if that’s real and if there’s any financial stress that they’re having every month, whether it be code violations or property taxes, even if they don’t have a mortgage. Certainly, if they have a mortgage, that’s going to play into it. When you are looking, pulling up the deals and finding out, one of the important things to find out is, does this thing have a mortgage? Do they owe this property free and clear?

You can ask that question when you’re talking to them and pull it out of them. See if they owe anything on the property, which is the easiest but also if you go through PropStream, they’ll show you how much is owed on each property. You can get that at TTPData.com. It’s a great tool to see what’s owed on that. This one was out free and clear. He’s floating out there timeline-wise. His motivation truly was the price.

If you’re struggling in finding cash buyers, get the Meetup app and find your local groups. You’ll surely find one there.

I got him under contract for $5,000 less than what he wanted. He wanted $200,000. I knew it was probably a deal at $200,000 but I wanted to see if I could get him a little bit less. I came in with $190,000 to $195,000. I said $190,000 but I knew $195,000 would work and I gave him that. It’s a little bit less or a little bit more. I made him choose. He’s going to choose $195,000 but that’s what I wanted.

This is the beautiful thing about it. Sometimes if you give them what they want too easily, they’re going to think they left money on the table. All of a sudden, their brain starts whirling. They start thinking, “They agreed to this price way too easy. Maybe I left a bunch of money on the table. Maybe I should consider backing out or talk to an appraiser, a real estate agent or my cousin, Bill, who is an investor and he will tell me whatever it is.”

It’s in this show program script that when they give you a price, you ask, “Is that the best you can do? Is $200,000 the best you can do? I was thinking more like $190,000, $195,000.” You used the technique beautifully inaction. I love it. Tell me about your cash buyer. There are three parts to this business, acquisition, conversion and disposition. That’s what it is.

You had the acquisition. You were converting this guy and knew what he wanted. The disposition side is where a lot of deals go to die because people don’t have the cash buyers or the confidence to go and reach out to cash buyers when they do have a deal. Who was your cash buyer? How did you find them?

I found my cash buyer through a title company around here. That’s how I was building it up initially. I was like, “Who do I need to talk to? Who’s doing deals in the market?” They gave me this guy’s name. I called him Super Cool Guy. He is a real estate agent who also flipped houses. He’s got a lot going on. He had quite a bit of money that he has access to. He’s a no competition, all collaboration. He’s a nice guy. I didn’t fire this out to my whole list because I knew that this guy was an agent and he flipped houses. I don’t know but I just went with this guy. I’m with my gut. He was all about it. This all came from randomly calling the title company and not talking to people.

I was raising my fist because I love this technique. Let me give you some pure instruction here. Go to Facebook. Find the fix and flip groups or the real estate investing groups in your market. Join that group, post to that group and ask, “Who is the best escrow officer for investors/wholesaling?” Watch everybody respond. See who’s in there the most and who the big dog is. The title companies know every big cash buyer in town because they all come through the door. They love these guys and send these guys deals. They would love to put you in touch with them if you have a deal that makes them look better as a company.

If it’s a closing attorney in your state, depending on which state you’re in, use that same technique, find out who that is, have that conversation and say, “I’ve got a deal. Who should I bring this to that you think that’ll make it go smooth, is cool to work with and super ethical?” What’s right here is beautiful. You did that and you’ve got somebody that you could probably sell dozens of properties to.

If you don’t have it, get the Meetup app and find your local REIA groups. I went to my first one and added cash buyers to my list. One of them texted me and said, “What do you have? I need to fix and flip. I’m looking for rehab.” That’s another app. Talk to people.

WI 380 | Cold Calling

Cold Calling: How much time do you spend on Instagram looking at other people’s success? So many people waste time on social media when they can be taking that time to build their own thing.

 

You’re a man that is crazy because you deleted your Instagram account. Let’s talk about this because this is important to talk about. If you use social media as a tool and a resource, it is fantastic. If you’re on there purely for entertainment, it will absorb you and all that extra waking hours that you have to be productive out there to provide value to your marketplace. This is an important lesson and thing that you’ve done. Why did you delete your Instagram?

It was on January 1st, 2020 after New Year sitting there with my family. I looked around the room and pretty much everybody was on their phone, me included. I started thinking, “How much time do I spend on Instagram?” Then I was like, “I’m going to delete it.” You’re looking at other people’s successes and focusing on what other people are doing when you can take that time to focus on building your thing. Those people didn’t get there by losing their Instagram.

They got there by putting in the work, buckling down and being laser-focused on one thing. I’ll probably bring it back at some point but the people that I follow will be a lot different because I follow everybody and whoever friends from back in the day doing this and that, partying and doing whatever. There was no value in that. That’s not going to help me reach what I need. On my Facebook, I did that too. I deleted all my friends, except for anybody that got anything to do with real estate.

I heard Gary Vee say something interesting. He goes, “Most people are on social media because their brain never gets out of high school. They’re always worried about what their high school people are doing, how much success they’re having, how fat or skinny, how many kids and all these other things.” It hit me. I was like, “That’s true.”

If you use it as a tool and a resource, you can connect with a lot of awesome people. You can get a lot of great content if you’re following the right people and use it more for the information, instruction and education than you do for entertainment. Although entertainment in life is great. You can make it a powerful tool.

It’s a side note. Weirdly, we talk about it on the show but it’s important for everybody. How do people get ahold of you that you don’t have Instagram and they want to reach out? Maybe they’re in Modesto, California or are former military. Thank you for your service. Maybe they’re getting into regular life. How do they reach out to you?

My email is TheMarshallBarnes@Gmail.com and my Facebook is Blake Barnes.

He’s got a room there because he cleared out all his friends. That is awesome. It’s an excellent and phenomenal interview. Thank you so much. One, you give a beautiful example of somebody that has an overwhelmingly time-intensive job. You’re still doing this. You got your first deal. You’re off and running. You’re building it up. That’s incredible for everybody out there that’s considering it.

It’s all about taking action and then the steps that you took to get there. It’s not rocket science. You went out and found a property that needed some love. You stayed on top of that seller. You came back with more confidence. Months later, you locked it up and then gave a brilliant tip on getting cash buyers. Thank you so much for being on the show.

If you’re interested in joining Blake in the TTP family and the TTP program, it is at WholesalingInc.com/TTP. Scroll down and check out what the program is about. Check out all the testimonials. If it feels good in your guts, then sign up for a call. I look forward to working with you. Blake, thank you so much. I appreciate you being on here. For everybody out there reading, as always, I encourage you to talk to people. Until next time. See you. Love you.

 

Important Links

 

About Brent Daniels

WI 480 | Critical Energy Shifts“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!”

 

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