Posted on: March 31, 2020
WI 395 | Your First Deal

 

Around 7 months ago, we interviewed a new rhino who did something very impressive—close his first deal in just 31 days! In this episode, we checked with him and found out how he’s been doing.

Pete Christianson is a rockstar rhino from Louisville, Kentucky. After closing his first deal, Pete has truly come a long way. Since then, he has closed a lot of deals, has plenty more in the pipeline, and has founded New Hope Home Buyers. New Hope Home Buyers is a family-owned business that purchases different kinds of real estate properties as-is.

Listen in as Pete shared many of the techniques that has contributed to his success—how he grows his buyers list, how he establishes rapport and connection, how he builds relationships in the industry, and many others. You’ll surely discover many actionable items in today’s episode, so don’t miss it!

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!

31 Days to Your First Deal with Pete Christianson

Episode Transcription

Before we get going with this episode, I want to make sure you are aware of the contest that’s going on for all of March 2022, where three lucky winners are going to have a wholesaling business experience of a lifetime. For the whole month of March 2022, what we are doing is a special Ratings and Reviews contest where we are going to select three lucky winners.

We are going to take care of all their accommodations, flights, and hotels and spend two full days with the Head rhino himself, Mr. Tom Krol. Imagine what this would be like for your wholesaling business, whether you are just beginning or have already done some deals. Think of what it could do for you if you had spent two full days with Tom Krol in sunny Florida and all the accommodations were taken care of. What would your year look like?

To enter into this Ratings or Review contest, we want you to go over to iTunes and give us a rating and review, five stars, please, take a screenshot and send that screenshot of the review to Darrin@WholesalingInc.com. If this isn’t enough, we are also going to feature the three of you on the show. While you are down there, Tom is going to put you in the hot seat, so get ready. We’re going to pick three lucky winners to go head down and spend two full days with Mr. Tom Krol. Let’s get going with this episode.

In this episode, we are going to do something a little bit different and exciting. It’s called Where Are They Now? We did an interview with Pete Christianson out of Louisville, Kentucky. Let me give you some stats here. On April 23rd, 2019, he found out from his pastor about wholesaling. On April 30th, 2019, he joined the TTP family, the TTP program. On May 31st, 2019, he closed his first deal after 31 days. It’s incredible. We rang the bell. He made $5,000. Is that life-changing money? No, but it’s the truth and the understanding that you can make income in this business. Since then, he has been on a tear, consistent and building up his momentum. With that, I’d like to re-introduce back to the show, Pete.

Brent, what’s up? How are you doing?

I’m excited because I have never done this before. Going back from somebody that started brand new into where they are six months later. A lot of this, Pete, honestly is they did a deal but how’s their business now? They did a couple of deals but are they still progressing? People want to make a lifestyle and a business out of this. It’s important to go back and look at the steps that you took so that people can also follow those steps. Let’s talk about those six months. Can you give us some stats? How many deals have you done? What have you made and netted from it for you and your family?

Thanks for having me on, Brent. It’s an honor to be here. I love to break down the business. I hit the ground running with you. You gave me a blueprint for success. I plugged in and started following the action steps. Essentially, we contracted our first deal and got it sold in 31 days. From there, we have done 9 transactions since starting the business, 2 slated to close, and then another 3 that are under contract. I’ve got a little bit in the pipeline nurturing the leads and moving through the action steps following up with folks.

We have netted around $81,000, which has been great. I was averaging around $8,900 in assignment. Nothing to brag about but it’s something, and we are only getting better. At the end of the day, we are out here to solve problems and help property owners that are in a tough spot. At the same time, we love to provide tons of value to our investors and make sure they are getting a great deal. I’m sure, as I hone the skills, we will increase those assignment fees.

It’s already starting to. There are a couple of different strategies that you have talked to me about, whether you are closing on them, cleaning them up a little bit or doing a whole tale. If anybody is not familiar with it, when you get a property under contract and assign that contract, you are essentially selling the contract, your right to purchase the property.

At the end of the day, we’re out here to solve problems and help property owners that are in a tough spot.

What Pete has done a couple of times is he has been able to close on these deals through either his money or money that he borrows from private money lenders. He had been able to clean them up and make even more because he’s putting them on the open market, which exposes them to the most buyers out there.

If you are starting, an interesting strategy is if you can get the private money lenders behind you that will support you and understand that you’ve got a great deal. The only way they are going to support you if you have a great deal is to close on those and put them on the market as you are building your cash buyer database. Speaking of that, how has your cash buyer database? Talk to me about that.

We are steadily growing it. We are right at around 1,000 cash buyers on our list. A strategy that you have mentioned on this channel and I have heard from others is that once you have so many, you want to reach out to other wholesalers and trade up. That has been awesome. There have been some helpful folks here in Louisville that we have traded lists, and that has been amazing.

I found that a real big part of my success has been collaborating with other wholesalers and investors. Also, giving away a bunch of free value, not trying to hoard information. If you want to find stuff out, you can figure it out. We have the internet. There are no secrets. There are things you don’t know. Essentially, I have been at church trying to build trust with a lot of people and giving them free things like what I’m doing and how I’m finding success.

How do you start those relationships? This is powerful. Especially going into 2020, it is super critical to make sure that you are making relationships in the industry and you are the guy that people bring deals to if they can’t get them sold, they are afraid of the process or just getting started. If you become an authority in your market, what it means is you communicate very well. You answer your phone and texts.

I can’t tell you how many successful people never answer their phones or texts. There’s not a lot of competition if you are the guy and/or gal that’s out there. People need help and assistance when it comes to selling their deals. You can be that person if you are answering your phone and being there. Also, getting face-to-face and building that relationship is super important. I’m telling you, these are free deals out there that you can do every single day of the week. If you were the guy or gal that people know that they can rely on to give them the straight answer, communicate well and help them make money, you are going to do so well. A hundred percent, Pete.

WI 395 | Your First Deal

Your First Deal: We love to provide tons of value to our investors and make sure they’re getting a great deal.

 

If you are honest with people and, straight up, a good communicator, respond to text messages, and follow them on the phone, people appreciate that. That creates that reliability. When you are reliable, people get that, and it starts to get comfortable, they are going to naturally be drawn to you because it’s easy. If I can make it easy, then that’s going to increase our business.

When we talk about the wholesale business, what we are doing is we are sourcing real estate opportunities for cash buyers in our marketplace, whether that cash buyer is a flipper, a renter or building it up for their rental portfolio or they are going to occupy the property. What we do is we find those opportunities. We are solving the problems from the seller but the way that we make money, incomes, big checks, and this business becomes a cash machine for us is to have those buyers, build it up, be active with it and get out there. Let me ask you this. There are three parts to this business. There’s lead generation, conversion, and disposition. Are you wearing all three hats?

Yes, I’m doing it all. I can’t say to my standards but everything is all getting done. That’s the challenge of being an individual business owner and not having a team around you. I have been relying on and building friendships with other wholesalers to help me with the acquisitions. That has been tremendous because getting 100% of something is better than 100% of nothing. If somebody brings you a deal and you split it, who cares? It’s something, and it’s great. Otherwise, you wouldn’t have had that.

More people will jump on it. They are going to read this episode and take your advice. I love it. What is important here is that when we are starting in this business, you are not a business owner. This is saying you are starting with a low budget without a ton of people working for you already in different businesses or you are transitioning. You’ve got a full-time and a part-time job. You are starting this from the ground. You are a highly paid professional, and that’s great.

You build it up and get that bank account so heavy that then you can start leveraging each part of those businesses, lead generation conversion, and exit strategy or disposition. You are in the position where you are a highly paid professional, somewhere around $10,000 a month, doing what you love, getting out there and getting your hands into these deals. We didn’t talk about this before but what do you think needs to happen in your mind in your business? How much do you think you need to save up in your business account? At what point do you think you start hiring people to start leveraging your business?

At the end of the day, I have heard people say, “If you don’t know your metrics and KPIs, then you don’t have a business. You have created yourself a job.” I don’t think I have determined that number for us yet. I think somewhere in the ballpark of a year of savings. I need to be able to support somebody. If I take them on as an employee, they are my financial responsibility, and that’s an important thing to me.

If you want somebody to start to trust you, stop talking and let them talk. When people talk, they start to feel heard. When they feel heard, they start to like you because they trust you.

I’m not just going to tell somebody something and then it not happen. That’s why I have bought some of these deals and then put them on the market because I’m going to close, whether it’s with hard money or somebody else’s money, it’s closing. If I get your house under contract, it will sell. The same with if I hire somebody, I want to make sure that I can take care of them and pay them well. Until we have about a year of savings, then we would probably put somebody in the hot seat.

At this point, a buddy of mine, Steve, we have been collaborating on a lot of stuff. I’m treating him as 1099. We split stuff that he brings to me. He’s out there hitting the streets and Facebook, working leads, and is a go-getter. I’m able to leverage Steve in a good way because he’s bringing stuff, and then we are able to make something out of it.

I’m going to coach you here. This is for everybody out there reading, not just for Pete. This is something that fundamentally changed my family’s financial life, and it will forever. Pay yourself first. There’s that book, Pay Yourself First or Profit First. You’ve got to take everything off the top. Everybody talks about investing into their business and buying, getting these people and that people, and then all of a sudden, you are taking home less than you were when you were doing it by yourself.

You’ve got to be in that position where you have so many leads, your business is overflowing, and you can’t handle it. You bring somebody on, take their financial responsibility into your hands but you pay yourself first. The most important thing about this business is that it needs to build up your family’s financial freedom. A lot of people get stuck in a trap where they want to hire a bunch of people. They want to be a leader or a manager and say that they’ve got these big organizations, did a ton of deals, and net nothing.

That’s the dirty little secret about the wholesale real estate business. Keep the money. Keep it flowing. Don’t set a limit. Don’t be like, “I’m only going to pay myself $5,000, $7,000 or $10,000 a month.” No. That’s a job. You should get a bonus every time that you are succeeding. I pull it out every single month like crazy.

I will tell you what happens. When your business account gets lower, you get hungrier. You were wild with enthusiasm and energy to go out and get more deals. It will explode your business. For anybody out there reading, pay yourself first. Don’t just keep it in the business and start hiring one million people because it’s going to add so much stress to your life. I want to break down a deal with Pete Christianson. Give me some juice, something exciting, and something that we can tear apart and show everybody exactly how to get a deal, what mentality to have and how to be successful.

WI 395 | Your First Deal

Your First Deal: If you want to find stuff out, you can figure it out. We have the internet. There are no secrets.

 

A deal that came across us was this amazing deal I’ve got driving for dollars using the DealMachine app. I sent this owner a postcard and eventually, his wife called me from the postcard that I sent to their house. She said that she and her husband was busy, so I followed up with her 3 or 4 times and finally got her husband on the phone. To her, she was just trying to get in touch with me to get me in touch with him.

I’ve finally got in touch with the owner. It was a great opportunity. I go to the house. He had bought the house for his daughter to go through college. She was long gone out of college, twelve years removed, and the house kept running itself. Eventually, his tenants are going to be leaving. He didn’t tell me all this. I pieced that together after I talked with them. Essentially, the motivation was that he didn’t want to have an empty rental and wasn’t into rentals. This was their only rental property. It’s a slam dunk.

What does that mean? I find this so often, Pete. A slam dunk is in the first 30, 45 seconds of meeting somebody, getting them on the phone on a cold call, you are like, “This person is going to do business with me. This is a deal.” What were the little things that you were sensing? What were the signals that you were picking up from this homeowner that made you feel like this was going to be a slam dunk?

Thanks for bringing that up. The only thing I can offer is speed and convenience. That’s all I’ve got but it’s great because a lot of people want it. This guy owned two businesses. He was extremely busy. The speed and convenience of getting rid of his house quickly were very attractive to him. He didn’t want to mess around with it. He had a lot of other things going on. When I’ve got to the house, we made a connection. I could tell that this house would sell. It was a decent neighborhood. We started talking about price. I knew that I could sell the house. It was outdated but it was there.

When you say, you made a connection, was he smiling, conversating with you, open or was like, “I need to get rid of this?” Are you instantly in alignment?

I could tell he liked me. It has been a little while since the conversation happened, so I can’t remember if there were specifics that I did but I’m fairly likable and can make a connection with folks. We talked about his daughter that used to live there. He started sharing with me about the neighbors. At the end of the day, if you want somebody to start to trust you, stop talking and let them talk. When people talk, they start to feel heard. When they feel heard, they start to like you because they trust you.

When you start to train yourself to look for opportunities, you see a vacant lot.

That’s a natural thing about when you meet somebody, you want to ask them questions and listen so that you can learn about them, and it also makes them feel heard. Not only do you get more information but you are also helping build that relationship and connection. I’m all trying to help, so I go there. I think it’s a potential deal. When we started talking, I realized it was definitely a deal.

I ran the comps and the information. I had an idea in my mind that it was going to be around $135,000 but it got even better than that as the market appreciated. We talked about the price. I told him, “Keith, I’m not a great negotiator. I have read books on it. They tell you to start low and then go up higher but I’m going to give you my best price upfront. The best I could do is $75,100. That might not work for you but that’s what I could do for your home.”

I love that approach. I’m not a great negotiator. I read books on it. I’m not very good. I don’t want to mess around. If more people use that line, be genuine, be out there and say that, that’s great.

At the end of the day, I was being truthful. I read a book about it. There are some psychological things about that that are powerful. Reading his body language, I don’t know if he was nervous but something changed. We are talking numbers and he’s getting nervous. He’s like, “That might work. Let me check with the bank.” He needed to check about his mortgage payoff and all that. He got back with me that day, and we had a signed contract. I didn’t leave the appointment with a signed contract but I knew from our connection that he was going to give me an answer. I wasn’t worried about him trying to stiff-arm me. He just needed more information from his bank to give me an answer.

What’s important there is you started this whole thing off with, “I’m pretty likable.” We talk about going on appointments with the two most powerful things, certainty, and likeability. You are hitting it. You went with that approach of, “I’m not a great negotiator. I read books on it. I’m doing this.” All of a sudden, he’s like, “This guy is being straight up with me. I like him. He’s certain on his numbers.” There’s the certainty. He likes you. You are likable. Fantastic. You did both. Perfect.

Essentially, he gets back to me with $75,000. I’m excited. Based on the repairs that it needed and the updating, I could probably sell it for $99,000. Somebody would have enough room in the budget to rehab it and then either flip it or keep it as a rental at the $134,000 mark. I send it out to my baby buyer’s list. At the time, it was 150 or something. It’s pretty small. I was just getting started.

WI 395 | Your First Deal

Your First Deal: One important key to being successful is building your team.

 

I had a few nibbles. One person gave me an offer of $95,000 but then revoked it because he was afraid of the neighbor who was a collector. I was like, “Forget everybody. If nobody wants to buy it, I will buy it. I will make the profit.” There are three exit strategies on property. You can either flip, wholesale or keep it as a rental. It was through a lot of conversation with my father-in-law but I came up with an idea to sell it to our company. I’ve got paid an assignment fee at closing. We took the title and then did the light renovation.

Let’s pull that back a little bit. Did you have it under your personal name and then assign it to your company name?

Yes. We didn’t use our own money to buy the house. One important key to being successful is building your team. What I mean by that is you need your title company, real estate attorney, lender, a tax professional to help you minimize your tax burden and cash buyers. It’s not just cash buyers. You need these other people in your corner to help you make sure you can transact on deals.

Essentially, I reached out to Mike Fallot, MM Lending and said, “Would you lend on this house?” He said, “Sure.” I said, “Would there be any possibility for me to not have to pay at closing anything?” He did me a solid. I said, “I will use my own money to cashflow the rehab if we can show up to closing and take an assignment.” He’s like, “That will work because the numbers worked, and it was a deal.” He saw it as a deal, so he was willing to do that.

At closing, we extracted $23,770 of an assignment fee. The selling price of the house was $99,000. We turned around, painted it, put some countertops in the kitchen, painted the cabinets, found some used appliances on the Facebook marketplace, swapped those out, changed some light fixtures, and then put them on the market.

How much is your budget for rehab?

Successful people are willing to do what unsuccessful people are not – learn from their failures and read. If you don’t read, you will not be very smart.

My budget for rehab was $6,900 but somebody decided they needed our air conditioner more than we needed it. We had to put a roof on the house for the new buyer. We are all in at $10,500 or $11,000 roughly on rehab. We ended up selling it for $149,000. Our walkaway was at closing, we’ve got paid $21,775, so our net profit on the whole deal was $45,545, to be specific.

Let me ask you. When you get that kind of payday, what does that do to your brain?

It’s amazing. We can do this. Robert Kiyosaki said, “There’s an opportunity to lifetime every week.” You’ve got to keep your eyes open because there are so many opportunities out there. We are just not able to see them because we are not looking for them. When you start to train yourself to look for opportunities, you see a vacant lot.

We leased an office space here in December 2019, and it has been great. We have little girls at home. I love my girls but it helps me focus at work. I come to the office but as I drive through the office district, there’s a vacant lot here and there. I’m like, “If I could get that under contract, I could probably sell that for a lot.” There are opportunities all over that you don’t realize. Who knows? Maybe somebody is sitting on a vacant lot but they don’t want. You’ve just got to call and talk to them.

You have two deals that are closing and hot leads in the pipeline.

Let me say one other thing about building your team. You’ve got to get a good real estate attorney. If you are in Louisville, Kentucky, the best one is Harry Borders at Borders & Borders. This guy is amazing. He makes the deals close. He’s so smart and he understands the investing world. One, because of Harry and going to closing, I have two pre-closing. I will show you my scoreboard over here. I’ve got 2 that are going to closing and then 3 under contract that I need to get a cash buyer for. We are moving them along.

WI 395 | Your First Deal

Your First Deal: If you have a goal in mind and want to get to that goal, you need to realize that where you are now probably won’t get you to that goal. If you were where you needed to be, you’d already be at that goal. You need to recreate yourself.

 

How do people reach out and connect with you? Maybe they are from a different market or in your market. What’s the best way to reach you?

Let’s do some deals. Reach out. You can reach me by email at Pete@NewHopeHomeBuyersLLL.com. I’m on Facebook. I love collaborating and giving free advice. I’m not as smart as you, Brent, but I have been there, so I can help a little bit.

There are no secrets, just stuff you don’t know yet. Give some advice to somebody starting.

If you have a goal in mind and you want to get to that goal, you need to realize that where you are now probably won’t get you to that goal. If you were where you needed to be, you would already be at that goal. You need to recreate yourself. That’s what I had to do when I had no job. I was in Corporate America for over ten years doing well. The company got bought out. They told me to take a hike. I’m without a job, and I had to recreate myself.

If you want to get somewhere and accomplish a goal, you’ve got to think about the set of behaviors that you need to change or replace so that you can get to that goal. They are very small changes. At the end of the day, successful people are willing to do what unsuccessful people are not. It’s very simple. You’ve got to learn from your failures and read. If you don’t read, you will not be very smart.

Reading flushes out our brains. It’s the plunger of our brain. It’s what gets all the bad stuff out, puts all great stuff in, and sprinkles it. All of a sudden, you’ve got these seeds of thoughts and a positive mindset in your brain. It’s leaking out everywhere. You’ve got energy, enthusiasm, passion, purpose, and fulfillment. You win. There you go.

Pete, thank you so much. Everybody out there, a couple of resources that he mentioned, DealMachine. It is a driving for dollars app. If you use the coupon code TTP, you get the biggest discount in the country. You get $9 off a month. It’s only $40 a month. Go to TalkToPeople.com. Become a TTP Insider. We have unbelievable downloads. It is such a huge resource for you if you are starting or looking to scale your business.

If you want to join these maniacs like Pete, the absolute best of the best in the country and the most proactive group in real estate is the TTP program. Go to WholesalingInc.com/ttp. Scroll down. Check out what the program is about and all the testimonials. If it feels good in your gut, sign up for a call. I would love to work with you. That’s it.

Pete, thanks for being on again. You are an inspiration. You gave some great hacks and tips that everybody can implement. Remember, this is not about education. This is about instruction. You’ve got action items here. Go out there. You can do this. You do not have to be average, stuck in your job or have low savings. You can change your financial future by finding discounted properties. Until next time. As always, I encourage you to talk to people. Love you. See you.

 

Important Links

 

About Brent Daniels

483Brent 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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