Posted on: March 26, 2020
WI 392 | Finding Deals

 

If you want to do as many as 230 deals a year, you need to know several tools and exit strategies to solve the seller’s problems. Today’s exceptional guest has mastered this art.

Pace Morby is a licensed general contractor and the owner of AZ Contracting and HomeVestors. Driven and dynamic, Pace went from losing a million dollars to becoming one of the most successful entrepreneurs thanks to wholesaling and creative financing.

In this episode, Pace shared so many beneficial tips and wisdom—from the answers to the top 5 questions sellers ask, to the metrics he uses in door knocking, down to how he finds VAs. You’ll learn invaluable techniques and insights in today’s episode, so make sure you 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 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!

 

230 Deals In ONE YEAR! With Pace Morby

Episode Transcription

Welcome to America’s number one show for new real estate investors, where finding properties is the most proven path to financial freedom. I am telling you if I can do it, so can you. Let’s get started. It is my absolute pleasure, and it has been too long coming to have Pace Morby here on the show with me. Pace, say hello to everybody.

Thank you for having me.

If you are not familiar with Pace, you should be. He has an incredible Instagram where he is literally going on appointments, showing the exact process that he takes to do 2, 3 or 4 deals a week.

We are probably averaging seven deals a week, but a little bit more than half of those are wholesale and then another portion of those are creative financing.

We’re going to deep dive into that because this is becoming more of what people are asking us to talk about on the show and the YouTube channel. If you’re just reading, make sure you go to Brent Daniels Real Estate on YouTube so you can put a face with a voice. Let’s talk about this because you were in a tough spot when we first met.

I was wholesaling pretty successfully when I came on board with you and I was breaking away from the old method of wholesaling. I was trying to learn TTP, SMS and all that kind of stuff. In that timeframe, I also was a contractor. I had two businesses. I was a contractor for 60 to 70 hours a week and a wholesaler 20 to 30 hours a week. I was grinding. Unfortunately, I had to take my wholesale profits and fund my construction company because I had one big customer who wasn’t paying their bills to the tune of when he filed bankruptcy on my company. He owed me a little bit, around $1 million.

The work I had done what I was doing as I was making money wholesale. I’d make $30,000 or $40,000 in a month. I’d take $10,000 and pay my bills. I take the other $30,000 and fund his projects with it, promising that he would pay me back. Unfortunately, this relationship went on for four years and I got sucked right into his vortex in the first ten days. We went and did a project. It was a $3,000 little repair list. He paid me $2,800. He goes, “I’ll get you the other $200 on the next project.” That’s where it started. It went on for four years until he finally filed bankruptcy on me and 48 other people at the same time.

From a financial standpoint, you’ve got all that money out late and all those efforts. You’re expecting this money to come back. Not only that. You’re putting money that you’re getting from your wholesale business. You were in a unique position because you would own a home investors franchise.

I own the franchise. This is where my biggest challenge was. In my first two years in the wholesale game, somebody else did all my marketing. All I had to do was go close deals. I became very good at closing deals, and I would focus on the sales pitch, empathy and all those types of things. I was a business owner anyway, so I knew how to sell construction easily. When I decided to make the jump from that pond to a bigger pond, I thought, “Where do I need to learn how to wholesale, get leads and go out, prospect and find more sellers?” It was the TTP program. That’s where we originally met.

I was in the throws of all that stuff. I was in my mind thinking, “Is this guy going to pay me back? Is he not?” I was funneling all this cash into his business because he told me three months before the whole thing fell apart, about the same time I met you, he said, “If you give me $300,000 more, I’ll get out of this hole and get you paid everything plus a bonus.” I’m thinking, “Done.” I went. We crushed it on wholesale for another 3 or 4 months, money into his business, and then I had to start all over.” I was in a unique situation where I had to learn at that moment how to go out and get my own leads versus the two years prior, people were funneling leads to me. I was starting all over in a lot of ways.

Don’t buy on value; buy on cash flow.

For somebody that’s not familiar with HomeVestors, they are the, “We buy ugly houses,” guys. It’s a franchise and you pour in money for the marketing and the calls come in.

You literally do nothing other than writing a check. You write a check and hypothetically, $20,000 goes into marketing or some crazy number, and you get a bunch of calls coming. In the first month, I ever started, I did $5,000. I got deals and I netted $50,0000 in my first month. I’ve got like $60,000 in assignment fees. I netted $50,000 and I still didn’t quite understand what an assignment contract was. That’s what’s cool about this business. You don’t have to know every little thing.

I’m sure you get these messages all the time. A lot of people want to see what a purchase contract looks like, an assignment contract and all this paperwork before they’ve ever prospect. When people ask me, “Can I get a copy of your purchase contract?” I go, “Yeah. Let me know when you get a motivated seller on the line, and I’ll give you the contract because you’re overthinking.” In my first month in business. We made all that money without me even knowing any of that crap. Action,

That goes back to what we were talking about, which is it’s not education. The action gets results.

I’ve never seen that equation. When you put that up on the board, I was like, “That’s so brilliant.”

It’s Tom Krol’s whole thing, “The true equation is action, results, easier education.” That is the most important thing. What we push so much on the show is, “Let us give you the instruction of how to go out and get these deals through just reading to the show.” That’s why people are every single day, sending us checks or posting checks and posting to the Facebook Group and social media all the amazing deals that they’ve done just from reading to the show because it’s instruction. It’s not education.

When you put that on the whiteboard, that hits me in my soul. That is so true. Everything I’ve learned, good or bad, is by simply taking action. Even with the bad, I learned how to be better. Whereas all these other people on the sidelines that haven’t really invested in themselves, haven’t paid for the education and haven’t gone out and done whatever. They are still gathering data saying, “I wish I could get into the business.” I’m like, “Meanwhile, there are thousands of people simply taking the step-by-step actions that other people like you were teaching and cashing checks.”

It’s protection from rejection and failure. A lot of people come into this business. They have a full-time jobs, but they have a passion to get out of their 9:00 to 5:00. They don’t want to just go paycheck to paycheck. They want big influxes of income, which is businesses. This business is a cash machine. It is hitting the lottery.

As you and I were sitting there getting ready to do the show, I got all these text messages I’ve missed, “I got a $12,000 deal. I got a $10,000 deal, I got a $32,000 deal,” all in one day. Our company brought in $60,000. That’s a typical day. You might go a week where it’s kind of dry, but then I was like, “Our company just generated $60,000 in revenue in one day.”

WI 392 | Finding Deals

Finding Deals: You don’t need to buy a house based on value. Offer the price the seller wants because they are giving you the terms you’re asking for. Don’t buy on value; buy on cash flow.

 

Let’s talk about this because not only are you making so much actual cash income, but you’re also building an extremely big rental portfolio.

Here’s why. Obvious reasons set aside, Everybody wants to have cashflow and all that stuff. When I got that letter from the guy, I usually called him Voldemort because he’s the name that we should never say. When Voldemort sends the bankruptcy letter and I open it up. The next day, I looked at one of Steve Trang’s podcasts. I see Eric Sage on there. He’s talking about creative financing.

I’m like, “If I would have spent the last five years of my life dedicating myself to building a rental portfolio through creative finance and whatever, not even 5 years, literally, 1 year, I wouldn’t be as stressed out as I am right now. I wouldn’t be so devastated. No money in the bank. Going through all these tough times, I would be cashflowing and say, ‘To hell with it. I don’t care. File bankruptcy. I have money coming in next month.’” I looked at my next 30 days and said, “I don’t have any money coming in unless I physically go out and earn it.” That’s where I put my time and energy from that moment. I focused my time on it.

How many properties have you added to your portfolio?

We have done a little over 120 creative financing deals, but we own a little over 50. We’ve wholesaled a good amount of those.

That’s what I want to talk to you about. That’s what I think is very interesting because when you go to a house, a seller, a lead and an appointment, you’re not just going from the standpoint of, “I can only wholesale this.” You’re going from a creative financing standpoint, which gives you so many more tools and options to solve the seller’s problem.

For example, I go to an appointment. I have another wholesaler in town that goes, “I keep running into the same thing. I’m getting rejected. There are fifteen other people talking to these sellers. I don’t know what to do.” I know this guy has a foreclosure coming up in the next two weeks. I go, “If nobody’s signed with them, that means somebody probably has not given him a creative financing option.” I go to the appointment with him. I record the entire buyer appointment, which I do in every buyer appointment. I tell the seller first, “I’m going to record this for educational purposes.” I have that recording and I’m happy to share it with your students.

The recording goes through and I go, “Who have you spoken to? What offers have they given you? Why have you not signed with somebody? How can I help you? Why am I here?” That’s my opening line. I go, “I’m not going to do the whole offer thing. If you have fifteen offers, you haven’t signed. Why not? What are you looking for that none of them provided?” He goes, “Underwater. I don’t have the ability to write a check to sell you my house. I need you to save me from foreclosure and get me out of this bad situation I’m in.”

This whole thing is recorded and I go, “Who have you spoken to?” He named some names I know. I called those guys after the appointment and go, “Why are you not using creative financing? You could have gotten this deal done a month ago. It is what the seller needed and is exactly what you need. You need some cashflow stuff.”

Start taking action. Everything you’ll learn, good or bad, is by simply taking action.

Here’s what happened. I said, “Has anybody brought up creative financing or terms?” I told the seller this story every seller about my Ford truck. The seller’s name is Anthony. I have a Ford truck. It’s old. I loved it. I had emotional ties to it. One day I decided I’m not driving it anymore, but I loved it so much. I want to go sell it for $10,000. I go on Kelly Blue Book and find out it’s only worth $5,000. That sucks. I put it on Craigslist. I go, “Let me see if I’m going see if I can sell it for $10,000.” Nobody calls.

Three months later, it goes by and my wife goes, “Why don’t you just take payments on it? You probably will sell it.” I go on Craigslist and, “I go $10,000, we’ll take payments.” 30 phone calls come flooding in. I’m like, “Oh my gosh.” I ended up selling that truck for $12,000 on terms, even though it was only worth $5,000. I tell that to the seller. It’s very easy to understand a vehicle and for some reason, it’s easier to understand that it is Craiglist. The seller goes, “That’s great.” I go, “You’re trying to sell me your Ford truck for $12,000 right now. You are underwater. It’s not worth $12,000. In order for me to pay you the $12,000, I need you to give me some terms.”

Here are a couple of different things. If you want this recording, we can attach it to the video. Go to YouTube. Check it out. Watch this interview, but get the recording. Number two is you’ve got a situation here where every deal comes down to price terms and you. The price, the terms, and you. Oftentimes, when we talk about this channel, we get a deal at a discounted price and a distressed seller with a lot of equity. You’re saying there are a lot of sellers out there that don’t have enough equity to make it make sense to give her a cash offer. You’ve got to go to terms. How did you do it?

What I did was I said, “How far behind are you? Where are you at?” He tells me how much he is behind. I think he was like $12,000 behind. Immediately, this starts sounding really daunting for your audience like, “I don’t have $12,000.” You don’t need $12,000. This is how it works. He goes, “If you catch up $12,000 and you helped me move to another house, the house is yours. You take over the payments.” I explained it in the audio recording. It’s a 51-minute buyer appointment. I break down the top five questions that the sellers are always going to ask. He asked me questions 1, 2, and 3 right out of the gate, but he forgot questions to our 4 and 5.

What are they?

If you want me to go into it, you’re happy to go into this. The number one, “Is this legal? I’ve never heard of this before. Why are other people doing it?” The reality is thousands of people are doing it, but they’re trying to keep it a secret. I don’t know why. It’s very legal. You can call my title company. I always will call my title company. If they have any trepidation, I walk them through it.

Question number two, “What happens if I give you my house and sell it to you for $175,000 then next year the house is only worth $125,000? Are you going to walk away and leave the mortgage in place?” The answer to that question is, “I’m not buying your house based on value. If I was buying your house based on value, I would have offered you $90,000 like the other guys did. I’m offering you the price you’re asking for because you’re giving me the terms I’m asking. I’m not buying on value. I’m buying on cashflow. If I can take your mortgage at $1,500, I can turn around, rent that house out for $2,300 and have a spread of $800. That is why I buy your house. In a bad market and the downturn goes down, what happens to rents? They go up because less people are buying houses.

Looking back in Maricopa County, where we live, the market goes down, values are down 50% and the rental rate goes up. When they say, “What happens in a bad market?” I go, “I make more money. I’m only incentivized more to keep your property than I was before.” The third question is, “What happens if for some reason you get hit by a rhetorical bus, you no longer exist and that payment doesn’t get made?” What I tell the seller is, and this is a little bit of a thing that nobody on your podcast has heard of, “I do a performance deed that says, ‘If I don’t make a payment within 31 days of the days do, the house automatically goes back in their name. They don’t have to foreclose, fight me or call me. They automatically get the house back by utilizing a performance deed.’” The sellers are like, “That’s amazing.”

Question number four typically is, “What are you going to do with the house?” I tell them I’m either going to rent it. I’m going to turn it into a group home. I’m going to turn it into an Airbnb or sometimes I do a lot of what people call a hotel where you take a wholesale house and you just put it back on the market after you clean it. I call it a sub tail. I buy a house subject to, clean it up and throw it on the market. It wipes them out easily. It makes a quick $15,000 to $20,000 without doing anything. I tell them my exit strategy.

WI 392 | Finding Deals

Finding Deals: Creative financing is like selling an old car that’s worth five grand, but you sell it at ten grand. So how do you sell it? You take payment from it. Get it on terms.

 

Number five is they say, “How long is the mortgage going to stay in my name?” My answer is, “Always until the end of the term.” They go, “I bought my house two years ago. You’re going to keep the mortgage in my name for 28 years?” You can hear it on the recording that’s exactly what I tell him. He goes, “It makes sense. I guess there’s no issue why I would care the mortgage is in my name,” because we know how to get them qualified for a second mortgage. It doesn’t matter if the mortgage is in their name. We know how to take the thing off their DTI. I tell them, “My goal is to have it a lease option to out, give my buyer five years to refinance me out. If they do, then it’s five years. If they don’t, I’m going to go another five years. You as the seller need to plan on having it indefinitely.”

Be fine with it.

You have disclosure and honest conversation. There’s no pulling the wool over anybody’s eyes. It’s a great recording. You’ll hear this guy go, “Yeah. All right. Cool.” At the beginning of the question, he goes, “When are you going to get the house out of my name?” I go, “Never.” “Got it. Tell me more.”

The mortgage.

This is what we do. $12,000 he owed. He wanted $5,000 in his pocket so he could move and get situated. It is $17,000. What am I doing with the house? How am I making money there? Assume I don’t have $17,000. How do I make money on that deal?

There are a couple of options for you. You raise funds from a private investor or two, you wholesale that property or the subject to somebody who has the funds and wants to add it to the rental portfolio.

Three, you find a family who might have some bad credit and you wholesale it to them. A lot of people will say, “That’s a wrap. I try and stay away from wraps because I don’t want to be the bank in the middle of somebody. If I’m going to be the bank, I want to own the property.” I will assign it to a family. We found a family that had  $32,000 down, but he has horrible credit. He filed for bankruptcy years ago. We found that guy coming in with $32,000, wiping the $17,000 and we’re netting close to $15,000 on that deal that nobody else could do

In fact, one of the guys in our local network had gone in that appointment. I called him afterward and said, “You’ve been to my meetups. You’ve heard my podcast. Why are you not implementing the strategy?” He goes, “I don’t know. I guess I was stuck in wholesale.” I’m like, “You’re missing deals. What were you planning on making with this dealing?” He goes, “He didn’t have a lot of skin in the game, so I was going to hotel it and make $10,000.” I’m like, “I paid $40,000 more than you, and I’m making $15,000.” Like you said, “Price, terms and you.” The price wasn’t great, but terms are phenomenal.

It was good. It’s refreshing to be able to go into an appointment that like you feel like you’re a ninja. You feel like you are dressed up in the stealth thing and you’re giving somebody an offer they’ve never seen before. Whereas it is very successful in wholesale, we figured out how to navigate that world and scale our business, but in challenging situations where the seller doesn’t have a lot of equity, you don’t want to walk out of there deflated saying, “I don’t have that tool in my tool belt to get this job done.” I go out and pull out all the tools. I throw them on the table. Which one do you want? Ninja styles.

Record every single appointment you have with a seller.

Let me throw a scenario at you and maybe you’ve already dealt with it. This is something that maybe the audience would appreciate you breaking down. Let’s say that they own the property free and clear. 

It’s no longer called subject to. It’s now called seller finance.

They own it free and clear, but they want more than a wholesale price.

I’m doing a deal with the TTP alumni, Katie Fisher. She calls me up and I’ve got this lady. It’s on my board and the other office. I wrote the whole thing down as she was telling me this whole story. The seller is Susan. She has 40 houses. She’s getting close to her Twilight years. She’s like, “I’m going to start shelling these out, but I want full price for them,” and shows them all free and clear. Katie’s like, “I watched your podcast. I’ve seen you on with Brent and Steve Trang. I need to know how to do this. I go, “No problem.” I get on the phone with her and break it all down. I go, “this is how you pitch it to the seller.”

The seller wants $200,000 for a house that’s worth as is $165,000. ARV is like $220,000, but she’s like, “I want $200,000.” I go, “No problem. Tell the seller that you’ll pay $200,000 as long as she carries that note for 30 years at 0% interest.” The seller goes, “there’s no way I’m giving you 0% interest.” Katie calls me up. She goes, “What do I do?” I go, “Tack on $20,000 and then see if she’ll do 0% interest.” She goes, “That’s fine. That’s great.”

She goes to $220,000 with a 30-year mortgage and 0% interest.

Every payment that’s getting made to that seller is paying down the mortgage 100% every single. This is how that pitch goes. Let’s say a seller goes, “I’m not going to give you a house with 0% interest.” I’m not great at interest. Most people aren’t either. I don’t want to screw around with the interest. Why don’t I just pay you an extra $20,000, build the interest, and then we do a straight deal where 0% interest and doesn’t confuse anybody. The seller is like, “That makes sense.”

The reality is, if you charge me 3% interest over a 30-year period, you’re going to take a $100,000 house and I’m going to be paying $190,000 or $200,000 for that house. A $220,000 purchase price at 0% interest is way better than $160,000 house at 3% interest. It’s an unbelievable deal. What does Katie do? She goes, “I want to own my first subject two deal. The lady wants 5% down, so that’s $10,000.” I go, “I’ll buy the deal.” She goes, “I don’t want to sell the house too. I know that I could make some money and wholesale it to you and make it $10,000. I want to be your partner.”

Katie and I are partnering together. She and I are going to split the deal. She didn’t have to come out of pocket. She got a deal done with a seller. Now what’s cool about that seller is she has another 39 properties that Katie has access to. Because you’re solving the seller’s problem, you’re the one that keeps coming back.

They want that super price. They want to tell all their friends and family, “I sold it at max.” What the fix of value is, and they still have to fix it up themselves.

WI 392 | Finding Deals

Finding Deals: In challenging situations where the seller doesn’t have a lot of equity, don’t walk out there deflated. Go out, pull out all your tools, and throw them on the table. Then ask, “Which one do you want?”

 

You saw the photos. It’s rent ready. Somebody is going to move in. No repairs need to be done. She had a tenant in there. It needs to be cleaned up. It has no carpet. Clean it out and a renter goes in there. For us, we close escrow, 0% finance, “Are you kidding me? The cashflow on the deal to our payment.” I can’t remember the payments of about $1,000. The rent rate is like $1,550. We’re making $550 a month on cashflow, but the $1,000 a month on the mortgage is paying down our debt 100%. Whereas if you and I went down to Bank of America and got a bank, 85% or 90% of that money that we pay on a monthly basis is fricking interest. We just took a deal and we got a free house plus $550 in cashflow.

We’ve done it. This isn’t the first free house that you’ve done.

No. My favorite house that I’m like super excited about as a deal you guys had, and I’m buying it from you guys. It’s a deal that we had to take them through probate. The sisters are selling the house of the mom. The reason I’m excited about that one is I’m using this house. I bought subject to $400 a month. It’s in the same exact neighborhood of another seller. I’m basically trading them this house for this house. I’m seller financing them this house. This gets a little tricky. I’m making $800 a month on this house. Meanwhile, I took their old house, wholesale it and made $40,000.

The only reason they sold their house to me at the price they did is because I promised them I would find a house in seller finance them. I’m using this as bait to get them, not even bait, but massive value. These are two sisters. They haven’t had jobs in twenty years. They’re living on disability. I’m helping them get into this house, solving a major problem, making major money here and $40,000 as a cherry on the top. Nobody else could have got that done deal done because this is all I want to do, man. It’s so fun.

You’re a psycho. You wake up at 3:30 AM. You go until 10:00. You are grinding and you’re going on all these appointments. You’ve got a whole team behind you. Let’s talk about that. How are you finding deals? How do you source deals?

I have four main ways of finding deals. Number one, we have five cold callers. TTP. Those cold callers generate two leads per day each. It’s about ten leads per day come from my cold callers. We convert at a ratio of 1 contract out of 30 leads. Thirty leads come into our Podio. We follow up. Out of 30 leads, we get one contract. Our average contract depending on the time of year is between $12,000 and $18,000. Christmas time, it’s a little bit lower. It doesn’t matter. Number two is SMS. We have one guy in Columbia. His name is Andres. We pay him $800 a month and he manages our texting all the time.

The question that comes up a lot is, “I want to do texting, but I don’t have all day to do it. I can’t respond in all that.”

Here’s what’s cool. I started getting this question all the time, so here’s what I did. We’ve got good at finding VAs. I found a VA. Her name is Christine. I only told her, “I want you to be the VA source for all my friends.” I tell all my friends, “If you need a VA, call Christine and Venmo her $50. She’ll go find you a specific VA of whatever you want.” People are like, “What’s Christine’s number?” She doesn’t work for me. I just found and trained her on how to get the Vas. Now when I need a VA, I utilize her.

Is that a source that you could share?

Every deal comes down to price, terms, and you.

She’d probably be overwhelmed, but she’d be honest. She’d say give me a couple of weeks, “I’ll get to you.”

How can people get a hold of her?

iCloud messenger. I text her through my laptop every single morning, “What’s going on?” I’ll give you her contact information. You can give it to them however you want. She’ll get overwhelmed. Be very aware that you’re going to get a cavalcade of people. She’s the VA that will find you other VAs. Andre’s came from Craigslist in America. We said, “We need a guy to manage our texting.” He is from Columbia answering that ad. He goes, “I’ll do it for $600 a month.” We pay him $600 plus $50 a week in bonus when he hits his numbers. He makes $800 a month.

The same thing there, we get 30 leads that come in and one of them turns into a contract. Texting is awesome because it’s a lot faster. Cold calling is a little bit of a slower burn where you’ve got to cultivate and work these relationships a little bit. SMS is like, “I’m ready to go right now.” It’s crazy. We do a lot of door-knocking. Half of my contracts right now are coming from doot-knocks.

Are you guys reading this? Half from door knocking. Everybody is sleeping on door-knocking.

They don’t have to know any script. Literally, here’s the script, “My name is Pace. I don’t know a lot about real estate. However, I know that your house is in a little bit of a situation. Can I have the company I started working for come to meet with you and tell you your options?”

You’re going to specific properties.

Only pre-foreclosure. There are so many. Even in an amazingly good market, there are 1,800 houses to knock. We can’t touch them. There are too many doors. It’d be like, “It’s over-saturate.” “It’s not even being touched yet.” There are certain parts of the valley. They don’t bring up foreclosure. They don’t hear, “I know there’s a situation in the house.”

They don’t come across as, “I know more than you.”

WI 392 | Finding Deals

Finding Deals: When door knocking, you don’t really need a script. Just say that you’re here, their house is in a situation, and that there’s somebody more knowledgeable coming to meet you.

 

Even my people who have been knocking on the door for a while know not to act like they know what they’re talking about because you’re throwing people’s guard up.

It causes friction.

When you get a little better, like 1 or 2 weeks in, I can literally hire somebody and they can knock on doors without knowing how to do anything. That’s why we keep that script that way. After 1 or 2 weeks, we then start telling them the script that we talked to you about on the YouTube thing or for Pre Foreclosure Mastery of, “Here are the eight things.” On day one, they start. They’re afraid to talk, “Am I going to say the things right?” Take all that away. Tell them you’re here. You know there’s a situation, “Can I have somebody that’s more knowledgeable coming to meet with you?” They set appointments, and then I have a guy that goes in and closes those contracts. I don’t do it anymore. I have somebody running that whole team. It’s amazing.

Guys, if you’re looking for a list in your market of pre-foreclosures, there are a couple of options for you. We use TTPData.com through PropStream. That’ll give you the pre-foreclosures. I know that you’re using property radar.

We are developing some door-knocking stuff or some software that will come out that everybody can use nationwide that is based on how we run our team. We’re in the testing stages. We’ll sometimes go a week without a contract, but then we’ll get 4 contracts in 1 day from door knocking. It comes down to two things with door knocking, consistency and timing.

How are people consistent with it? How do you have the mindset that you are excited to knock on a stranger’s door every day?

When I was knocking on doors, it can get very tedious because you don’t see the fruits of your labor right away. There are things like mowing your lawn. You get immediate satisfaction. You feel that feeling of, “I mowed that lawn.” When you’re doing door-knocking, you can knock on fifteen doors without any fruits and not even talking to anybody. The way we do it is we’ll tell people, “Listen to your favorite book. Do something fun between the houses. Listen to music.” Typically, it’s like listening to podcasts. When I was knocking on doors, I’d listen to a podcast I was interested in. It doesn’t even have to be real estate. It can be like a thriller novel to keep you engaged. Now you’re excited to be in your car and listen to what’s going on in the book.

We had a girl brand new to door-knocking. It’s her first time out. She goes to her first door, and nobody’s home. What does she do? She leaves her first note because that’s what she’s trying to do on the car, on the driver’s door window, “I’m a local investor.” We can do a whole show on that. She gets a call two hours later when the wife comes home. The husband was home, but the key was downstairs and he was not answering. Wife comes home and she goes, “What’s that note on my husband’s thing?” She grabs the thing. She calls Veronica, who’s knocking on the door, and goes, “When can you come to meet with us?” I went the next day with Veronica. We got the house stuff.

How many deals did you do in 2019 between the subject of creative financing and wholesaling?

All door knocking really comes down to two things: consistency and timing.

I don’t know the exact number, but probably between 130 and 250.

Guys, you obviously know that he knows what he’s talking about. He’s willing to share actual appointment audio. First of all, tell everybody about your Instagram because if you were not following Pace’s Instagram, you are silly. It is absolutely bananas.

I’ll post stories throughout the day of every appointment I go to. I’ll get sellers to agree to let me record. I flat-out tell them. I go, “I’m a business owner. I’ve got employees that I’m trying to train. It’s good for them to understand how to take care of the clients. I would love to record this conversation. Is that okay with you?”

I do have a YouTube channel. The main purpose of the YouTube channel is I wanted to show people real deals that they were buying, not some fictitious idea of whatever. We do some whiteboard stuff. That’s cool, but we show up at the property. The name of the show is called The Real Deal. We go, “Here’s how we prospect it. Here’s how we talk to people. Here’s how we solve their problem. Here’s how we acquired the property. Here’s what it cost us or didn’t cost us if we got a free house. This is how I’m exiting that property in terms of a lease option or a flip.” The real deal is we do an episode every single week.

This question I asked Jesse Burrell, people loved it. I kept getting comments on the YouTube channel. I’ll give you $500. I dropped you in the middle of Idaho. Let’s drop you in Boise. How do you get your first deal? What do you do? Give us the step-by-step.

I’ll tell you exactly what I would do because this is a great question. I’ve had this question multiple times and refined the question to exactly what I would do. I would take the $500. I would immediately go into a gas station and get an orange Monster sugar-free. I’d have $498 left and put that in my pocket. I’d start walking down the street and find my first title company. I’d say, “Give me the pre-foreclosures in this area.” I would immediately start walking and knocking on those specific doors. This is what we do with our doorknockers. Out of those 1800 doors, we only give them 100 doors to stay on top of, “You knock on those doors.”

As those doors get purchased, reinstated, or whatever happens, we give them four houses that fall off the list. We put four new ones on there. Love it. They stay in the same geographical area, so they know like, “I live 1 mile away from this. This is my route. Every single day, I’m going to route.” In a day, if you’re walking, you can typically knock on about 15 to 20 doors. If you’re driving, you can knock about 40 to 45. Our metric is that you can get a deal from door-knocking 1 out of 100 doors you knock.

I don’t even need a dollar. I just need some energy drink, maybe a little bit of Uber money and a hotel. In three days, I’m getting my first deal guaranteed. You might get a deal on your first ten houses, but if you go knock on 100 doors, which you can do on foot, what I would do? I’d go to a pawn shop and buy $100.

I bicycle for dollars. I wouldn’t spend any money on leads and get my first deal. I’d probably wholesale that out. Let’s say you put me in Idaho and I only have $500. I don’t even have a cell phone. I have no contact with the outside world. I’d get my first contract done. I would go back to the title company and go, “What wholesalers are you doing business with? I have a contract. I would like to wholesale them.” I would call that wholesale and say, “I’m broke. I showed up in BFE, Idaho. I need $5,000 in my $10,000 deposit in my assignment right now so I can go live, get a hotel and work my way up.” I could literally become a millionaire in wholesale and BFE Idaho by just knocking on doors.

WI 392 | Finding Deals

Finding Deals: If you’re walking, you can typically knock on about 15 to 20 doors in a day. If you’re driving, you can knock about 40. Know that you can get a deal from door-knocking in one out of a hundred doors.

 

This is all true. I get to see this on a daily basis because Pace is my next-door neighbor here in the office.

You get to meet my whole team. My door-knocking manager was here at our meetup.

Before we get out, talk about your Sunday service.

In 2019, I started getting so many questions in my DMs like, “I see you on appointments.” I started doing this thing called ride-alongs where I said, “I’m sick of all the questions. Why don’t you just come out with me? I’ll show you exactly what it’s like.” I’ll work fourteen hours a day, every single day. I love taking people with me because, as you can tell, I love to talk. Talk to people, which is why I love this whole program.

I started taking people out and I felt like I was giving too much energy to one person. We started something called Sunday Service. Every Sunday, 7:00 PM Arizona time, which is Mountain Standard Time, we do a one-hour call where we just fix other wholesalers’ problems. We do 30 minutes talking about my business, what we did in our business, how it worked, what deals we got during the week and what problems we’re solving in 30 minutes, me and my partner. In the last 30 minutes, we started doing Q&A. We got so many viewers that it’s now turned into a two-and-a-half-hour show, and we have people live calling on Facebook Live.

How can people that are interested join?

Go to Facebook/Pace Morby and join the group. We get probably 500 people to watch it live.

Do they have to be friends with you?

No. They just joined the group and you get added on there. Everybody shares it and it gets put on 4 or 5 different platforms. We do live calls. We’re fixing people’s business. It’s the best.

It’s incredible. Not only that, but I think you had 499 comments.

It stayed on Facebook, and then after a week of it, we had 1,200.

What he’s saying is he’s engaging. You’re the best. I love you. This is incredible. Thank you for being on the show. There is so much value. There are more ways where you can do deals if you understand how to do terms. Follow Pace on his Instagram and YouTube. Check it out. At some point, he’s going to get into coaching. Definitely lookout for that because that’s going to be absolutely bananas. Get more tools in your toolbox.

If you’re ready to join the most proactive group in real estate, investing like Pace, it is WholesalingInc.com/TTP. Check out all the testimonials and what the program’s about. If it feels good in your gut, sign up for a call. I look forward to working with you personally. You are the best. Thank you. Love you, guys. Until next time. I encourage you to talk to people. See you.

 

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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!

 

 

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