Posted on: April 06, 2020

What risks are you willing to take to be financially free? Today’s rockstar rhino believes in wholesaling so much that he took two massive risks: quit his job to wholesale full-time and go into debt to invest in expert mentorship!

Jens Kuetemeyer is a new rhino who’s currently crushing it in the wholesaling market. Just like most people, he got into wholesaling without any prior experience. However, he didn’t let his lack of experience get in his way. Totally committed and willing to fail his way forward, Jens has already done 5 deals and has a few more in the pipeline.

In this episode, Jens talked about the techniques that has helped him achieve success in the wholesaling world. Not only that, he also shared the mindset that has helped him find and close deals in just a few months. In short, this episode provides a good dose of motivation and inspiration, so don’t miss it!

 

Key Takeaways

  • The marketing channel he used to find the deal
  • List he targeted
  • The apps he uses while driving for dollars
  • What the notice of default list is all about
  • Key phrases he looks for when looking for seller motivation over the phone
  • How his meeting with the seller went
  • What his exact strategy was
  • What his life was like prior to wholesaling
  • His advice for those who are just starting out
  • Why he believes having the right mentor is key

RESOURCES:

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Episode Transcription

Tom Krol:
All right. We have another amazing guest on the Wholesaling Inc. podcast today. We have got a young man who just joined our program. He’s done five deals. He’s crushing it. We’re going to be doing a deal review of a deal that he just did. He made $13,000 on this deal. We’re going to put them in the hot seat. We’re going to find out exactly how he did it so that you can do it. It’s really going to be exciting. I can’t wait to meet our next guest.
If you don’t know what wholesaling is, wholesaling is the art of consistently finding discounted properties. That’s it. It has nothing to do with your exit strategy. We love it. It’s changed my life. It changed James’ life, who is our guest today. So Jens, can you hear me okay?

James:
Absolutely, Tom. Loud and clear.

Tom Krol:
All right. Well, it is so good to have you on the show. I am looking at your … We do these podcasts guys only on audio over Skype, but I’m looking at James’ Skype picture and he looks like one of the Scooby Doo characters. I love it. I could already tell he’s a super simple guy. We had a quick conversation before this podcast. He and I are on the same page. We keep things simple and we’re going to keep them simple for you about how he did this last deal so that you can repeat it and have the same success.
So James, before we get started into the meat and potatoes of the deal, can you tell us a little bit about who you are and how you got started in wholesaling?

James:
Yeah, absolutely. I’ll keep it brief. I started actually … Before wholesaling, I was a glazer installing glass. I didn’t want to be in the 9:00 to 5:00. I was like, “Hey, I need to find a job that I can work from my home.” I just came across actually this very podcast. I listened to, I think, pretty much all of them, except for maybe the last two now. When I was listening to them I was like, “I’ve got to do this.” I jumped into wholesaling and haven’t looked back since, and now I’m full-time wholesaling.

Tom Krol:
I love it. Are you a family man or is it just you? What does the home life look like?

James:
Yep. I got my wife, my beautiful wife and beautiful daughter and then another one on the way.

Tom Krol:
All right. I love it. Well, that is great. We will be sure to send out a little baby rhino with a little logo on it for that little boy or girl. We’ll make sure that we do that. Very, very cool. Thank you for being a tribe member. Thank you for being a go-giver. We are going to pick your brain about this deal. $13,000 is a lot of money. Is that a bigger deal for you or is that kind of the average or small? What does that deal size look like?

James:
Currently, it’s just a little bit over average.

Tom Krol:
Okay. Have you found in the past five deals, have your deals been getting larger or smaller or about the same?

James:
By far, each one has gotten larger.

Tom Krol:
Oh really? Okay. Well, that’s great. That’s good. I didn’t know that. Well now, that is good to hear. That was also the same with me. My first deal was $2000 and it was a crazy, crazy deal. I’m sure your first deal was too.

James:
Yep.

Tom Krol:
I think our average now is about $18,400 per deal. You’re right there. That’s great. Well, good. Okay. First of all, I want to ask you, how did you find this seller? How did you find a person who was willing to sell at a discount for speed and convenience? What did that process look like?

James:
I cold call as my marketing strategy and I target just the driving for dollars and notice of default lists. This one actually came off of the notice of default list. There was actually only a list of 12 names. Yeah, I picked up the phone and that’s how I market for these motivated sellers.

Tom Krol:
I have a thousand questions. First of all, are you a TTP student?

James:
I’m not.

Tom Krol:
Okay. So you’re just cold calling. I heard driving for dollars. Are you using Deal Machine?

James:
Yes.

Tom Krol:
Okay. I’ll put a link in the show guys, for anybody who wants to use Deal Machine for driving for dollars. We have the lowest price in the country for our listeners. You are going through your neighborhood. You’re driving around, you’re getting the phone numbers from Deal Machine?

James:
I used the free service, True People Search. I forget what the other one is called. There’s Batch Skip Tracing is the other one I call.

Tom Krol:
I’m going to write these down; True People Search. I’ll put a link to this in the show notes. The other one was … It was True People Search. Who’s the other one?

James:
Batch Skip Tracing. I think that’s with Brent, the TTP coupon code is to get, I think it’s 18 cents an address or something like that.

Tom Krol:
Yeah. I’m going to put the TTP code in there so you guys get the lowest price in the country for that as well. I’ll put the Deal Machine also, the code there, and I’ll put a link to TTP if you guys are interested. I’ll put Deal Machine and we’ll put TTP. Okay. Now that I have all my notes for the show notes, let me ask you this question because you’re not in TTP so your script might be a little bit unique. You said the default list. What is the default list? Can you tell me what that means?

James:
Yeah, notice of default, sorry. That just means someone’s going to lose the house. They’re going to get foreclosed on it. It hasn’t gone into foreclosure. It’s not listed yet in foreclosure. It’s in pre-foreclosure, just a fancy way of saying that eventually in a few months, they’re going to be losing the house of they don’t catch up on their payments.

Tom Krol:
I am writing this down. Now I’m going to say this, we’re not going to deep dive this in the podcast, but I am going to hold you responsible to be a big, big Go-Giver. Are you ready for this challenge?

James:
All right, let’s do this.

Tom Krol:
Because you are now the seventh person … Because I was just thinking in my head of how many people have told me … And some massive people have told me this and some people who are just getting started told me this, about the notice of default of pre-foreclosure. This is my prediction. You are going to create a module for our program, for the course, for the rhinos, that is going to be exactly how to pull and speak with the notice of default list. Is that cool?

James:
Yeah, yeah.

Tom Krol:
All right, you guys, I’m bringing ringing the victory bell for that. That’s awesome. I had no idea that we were going to be talking about that, but I have a law that I live by that I just invented called, If I Hear Something That’s Positive Seven Times Almost In a Row, Then I Know I Have to Make a Change and Do Something About It.
Yeah, I have literally in my brain, six other people who’ve now told me that. You’re the seventh, and that’s probably who I could just remember. It doesn’t even include who I can’t remember. We are going to definitely do that and I am going to hold you accountable to do that. That is a rock star move. Thank you, thank you, thank you. It’ll be a big blessing for all the rhinos.
You get the list, you then have a conversation with the sellers. Tell me more about what is happening. Why were they behind on their mortgage? What was that conversation like? Did you meet with the seller face to face?

James:
Honestly, I want to make sure that I’m screening each seller, just so that I don’t go on appointments, because I first started going out on every appointment as you recommend in the Wholesaling, Inc. course.

Tom Krol:
Yes.

James:
But as soon as I started doing deals, I wanted to start screening the sellers just to make sure that there was some level of motivation. When I’m on the phone, I’m really listening for certain key phrases, just distressed situations.
This particular seller, he was in a very distressed situation. He wasn’t living at the house, a lot of problems that were happening in his family … I don’t want to go into too much detail about it, but there was a lot of things that the house was going to become a debt that would take him a while to pay back. He was very motivated because, as we’re on the phone, he’s like, “I’m ready to sign a contract today.” Usually I don’t sign the contract on the first call. It’s usually a lot of followup. That’s typically how, when I’m on the phone talking to these sellers, is I’m following up, following up. Usually it takes about four to five, at a minimum, touches before we get a contract signed.

Tom Krol:
Okay.

James:
But on this particular one, he was ready to sign that phone call.

Tom Krol:
Okay. Now, let me ask you a question. Did you do that over mail or did you actually meet with him and go to the house?

James:
After, I went to the house. He had it vacant. He just said I could come over and look at it. I went in and I looked at the property. Since he was already motivated, I went and looked at it and took some pictures. Then we actually just met up at a more central location, just at a grocery store. That’s where we signed the contract.

Tom Krol:
I will tell you a funny story. When I very first started, I met with a seller. It was up in Vero Beach, which is a city just north of me. I spent a ton of time with her and we went to the grocery store. In Florida, we have a grocery store. Everyone in Florida is going to know it, it’s called Publix. They’re also in other States too, but we went to Publix. The reason we went to Publix is because I was just starting out. I forgot to bring two copies of the contract. Yeah, so we went to Publix because they have a photocopy machine in Publix that she knew about.

James:
Oh.

Tom Krol:
We went there and we went to go … We walked in and we went to go make a photocopy. I was so excited. It was only my second or third or fourth deal. I don’t remember now, but very early on. When we got into Publix, her son-in-law or son or nephew, I don’t remember who, some really big guy was there. He said, “Oh hi, whoever,” I can’t remember whatever he called her. But he said, “Oh hey, how’s it going? What are you guys doing here?’ And she said, “Oh, I’m selling this house to this guy. I can’t wait. I’m so excited. We’re going to be moving,” because they were moving somewhere. He said, “Well, I want to buy the house.” He goes, “I didn’t know you were selling.” And she goes, “You want to buy the house? That would be great.”
She literally took the contract and ripped it right in front of me. She goes, “Oh, I’m out, I’m out. I’m no longer selling. I’m going to sell it to my son-in-law or nephew.”

James:
Oh no.

Tom Krol:
Literally, now my new rule is I don’t go to grocery. I don’t go to Publix. I always bring two copies of the contract. That’s a true story. That’s pretty funny. You just triggered that memory.

James:
Oh, man.

Tom Krol:
All right. You go there, the house, it was totally vacant so it wasn’t rented?

James:
Correct, yeah.

Tom Krol:
Okay. You look at the property, you meet this seller at the grocery store. You put the house under contract right there?

James:
Yeah, absolutely. Yeah, right there.

Tom Krol:
Did the seller, did they have any objections to doing that? Did they give you any hard time on pricing? How did you guys determine a price? Tell me a little bit more about that meeting with the seller.

James:
Yeah, so the pricing actually, that started before we met, just because I wanted to see what his base was. He actually was going really high. What I could offer at the at most was around $250K and I really felt uncomfortable giving that high of a number and so I said $250K, we agreed. Then I got to the property and while I was driving to the property, he called, he was like, “Actually, this is worth $280K.” I was like, “Oh no.” I think I just completely lost motivation.

Tom Krol:
Sure.

James:
I go to the property and I look at it and it is trashed. It is awful. I gave him a call back. I was like, “I’m sorry. I totally understand you need this. I might not be your best fit. You probably want to go try and list it or maybe rent it out.” And he’s like, “No, no, no. What’s going on?” I sent him some pictures and he hadn’t been to the property in three years,

Tom Krol:
Okay, okay. James, I think maybe because you’ve done five deals you may not even realize it, but I just want you … Not that you don’t realize it. I shouldn’t say it that way, but you guys who are listening right now, do you see what happened? As soon as the seller … Every single question or objection from the seller is a question. Right? What James did is a lot of people would have tried to first convince but if you really, really listen to what he just said, the first thing he did is he canceled the contract. He said he walked away.
What happened was, if you picture this, at the dining room table, the seller was leaned in and James was leaned in and they were talking to each other and the seller leaned away. What a lot of us tend to do is we tend to lean in more and try to grab them and convince them. What James did, his knee jerk was to say, “Okay, why don’t you list it?” That is called walking away or what Oren Klaff calls, “Always be leaving,” from the great book, Flip the Script. I’ll put that in the show notes. That book, that’s a great book to read.
Here’s the key, is that if you really listen closely, what you’re really hearing is the result of doing five deals. James knew that as soon as the seller went to go change the price, instead of negotiating, which is very uncomfortable and nobody likes to do and causes delays and all kinds of problems, what he did is he stopped and he started walking out the door. I just wanted to point that out because that’s liquid gold when you meet with the seller to start to just cancel and walk out the door, instead of trying to fight for the deal. You did that first before sending the pictures, which I think is brilliant.

James:
Yeah, absolutely, absolutely. Yeah. Actually after I talked to him, I didn’t realize he hadn’t seen the property in three years. We actually ended up agreeing on $230K.

Tom Krol:
Bam. There you go. Okay, terrific. Easy peasy, lemon squeezy. All right. That’s amazing. Did you build a lot of rapport with the seller at that grocery store meeting? How did that meeting go? How long did it last?

James:
Absolutely, yeah. It lasted about 45 minutes and I would say probably 30 minutes of the time, we weren’t even talking about the house. We were just talking about his family and his grandkids and really just getting to know him as a person. We actually ended up having a lot of mutual connections. That just brought up some more good conversation.

Tom Krol:
Well, I love that. That’s so important. All right, good. Bro, you’re a rock star. I love this. This is awesome. All right. You have the property under contract. You sold the contract or did you buy the house and sell the house? What was your exit strategy?

James:
Yeah. I assigned the contract over to a cash buyer. Actually I wasn’t able to do this at first because my cash buyers list wasn’t big enough.

Tom Krol:
Okay.

James:
It’s a different kind of property. It’s a bigger piece of land and so it was a little bit more of a smaller buyer’s list. It’s really, really, really important to build your buyers list because sometimes to get a property like this and you know the numbers work.

Tom Krol:
Right. I hear you.

James:
Yeah. I had to actually go in with another investor out … Right next door, just a few miles away from me actually, is a big company and they have a huge cash buyers list. I actually JV’d the deal. I partnered up with them.

Tom Krol:
Got it. You sold the contract to someone else’s cash buyer?

James:
Correct.

Tom Krol:
So the $13,000 that you made on that deal, was that split between you and the other person or was that the total amount? What did that look like?

James:
The property was under contract for $230K and then their cash buyer took it at $256. It $26K total split 50/50.

Tom Krol:
That’s amazing. If that would have been your own cash buyer-

James:
I know.

Tom Krol:
That would have been $26K guys. What is the lesson that we learned? Right? It’s the biggest cash buyer list wins.

James:
Oh, so true, so true.

Tom Krol:
Well, that’s awesome. Good for you. What did your life look like before getting into wholesaling and what does it look like now?

James:
Oh, honestly. I just have to point out, as a result of this last check, I am debt-free.

Tom Krol:
That’s awesome, man.

James:
Yes.

Tom Krol:
What is debt free? How much were you carrying and what was the debt from? Was it school debt, car debt, loan debt, house debt? What did that look like?

James:
Yeah. Actually part of that debt was just getting into the program at first.

Tom Krol:
Right.

James:
I pulled out a loan just to go full-time wholesaling. I had a podcast that I did with Cody and just went over how I had $13 bucks in my bank account. I pulled out a loan, quit my job and went full-time. I know it’s not for everybody, but I was ready to be out.

Tom Krol:
Let me say this to you. First of all, I appreciate you putting your trust in us. We take that obligation really seriously. I think that’s a huge risk. I think anyone who’s listening, this is a chance that you’re taking. There’s no guarantees. You can do everything that we say to do about investing in real estate and becoming a wholesaler and you could totally fail. But I will say, I always think … I always say, “I think it’s worth the chance.” I really do.
I’m happy for you. It worked out. It could have not worked out, but I’m happy that it worked out for you. That’s amazing that you went into debt to join the program. We don’t recommend that and the reason is, is because we really want you to have money for marketing.
All these things that James is talking about with everything he’s doing to market, that also costs money. If you’re in too much debt, you’re not going to be able to do it. You do need some money to make money in real estate.

James:
Yes.

Tom Krol:
You don’t need it for the real estate. You could get money lenders for the real estate. That’s easy, but you need it for the marketing. Keep that in mind. I’m honored that you would trust us to help you, brother. That, in five deals is amazing. What is debt free mean now? You have no debt at all?

James:
Yeah. The medical bills, that’s paid for. Actually our second baby, who’s not yet born, has been paid for. Everything. Yeah, praising the Lord for that.

Tom Krol:
Bro, that is such a good thing to hear. Did you have a job when you started or you didn’t have a job, but do you have one now? What does that look like?

James:
I quit my job in February of this year, one day of difference.

Tom Krol:
You quit your job before you joined the program?

James:
Yeah.

Tom Krol:
Oh my goodness. You are a risk taker. Okay. I love it. You’re totally committed. I had to wait until I got fired. Hey, kudos to you. That’s amazing, brother. You quit your job and then you went into this. Okay. I would say that I don’t advise doing that because that’s the most risky way to get in, but I applaud you for doing it. I think it’s amazing. Were you working a 9:00 to 5:00 job? I know you said you were in the glass world as a glazer, I think you said.

James:
Yeah. The hours were more like 7:00 to 6:00, but 9:00 to 5:00.

Tom Krol:
Yeah, that’s amazing. What does your wife think? What is her name? I’m sorry. What’s your wife’s name?

James:
Hannah.

Tom Krol:
Hannah. What does Hannah think? Is she over the moon? Is this awesome?

James:
Oh yeah. At first, obviously there’s a lot of stress that carried into it, but now, she loves it. I spent a lot more time with her and the kid. It’s awesome. She loves it, she loves it.

Tom Krol:
That is a really great story. It’s inspiring. I want to ask you, for people … This is not a pitch for Wholesaling Inc. to become a rhino. Beyond becoming a rhino, what are some of the things that you did early on that if someone’s just starting and they want to get started, besides joining the program, what are some of the things that you had to maybe internally battle with? What were some of the triggers that helped you to take some massive imperfect action? What does that look like, that you could help somebody who’s just starting?

James:
Yeah, okay. Just starting, you’ve got to be okay with rejection. I was not okay with that at first. It really helped to get … I know it’s not a pitch to the program, but it really does help having a mentor. I said this last time and I’ll say it again, just because I believe in it. You need like-minded people, even if it’s not Wholesaling, Inc., if there’s someone in your local market, finding someone that’s like-minded, who is where you want to be, who can help you pull you across. That way, when you’re going through the struggles, you need someone that you can turn to and be like, “Hey, is this normal? Why am I getting rejected? Why am I not getting a deal? Why am I not seeing success?” They can push you to say, “Hey, how much marketing are you sending out? How many people are you talking to? What’s your cash buyers database look like?”
I know those are big things to think about if you haven’t joined, but as far as simply just breaking it down, finding someone where you want to be and then mirroring what they do and seriously taking their advice and putting it into action.

Tom Krol:
I think that that is so important because the other thing that the right people will stop you from doing is they’ll stop you from building a case against yourself.

James:
Yes.

Tom Krol:
Because sometimes with our old perspectives, we look at evidence and we start to build a case against ourselves, “This won’t work, I’ve met with 15 sellers. They all slammed the door in my face. I don’t know what to say on the phone.” These are normal when you are going through this. The right people … I always say that everybody says that the predecessor to every action is a thought.

James:
Yeah.

Tom Krol:
I think that’s interesting and it’s kind of cool, but I don’t think that really says it all. I think that the reality that I have found in my life with my mentors and changing my circle is that it’s whatever you believe is true.

James:
Yeah.

Tom Krol:
Right? Because I think that the origin of every result is an action. The origin of every action is an emotion or a thought that is true. However, the origin of every thought and emotion that you and I have throughout the day is all based on a belief system.

James:
Yeah.

Tom Krol:
I think it’s the belief system is where the right mentors get you. It’s not just the actions and the thoughts and the emotions. It’s the beliefs, because if you can change your beliefs, you and I can see exactly the same facts and exactly the same reality, but because our beliefs are different, we’ll have different thoughts and actions around them and that will lead to different actions. That will lead to a different result that just keeps reinforcing that belief system. Right?
It’s so amazing to me because I think the reason mentors work, and avoiding the wrong people work, we always say trying to not be influenced by who you spend time with is like trying to go swimming without getting wet. It’s impossible. Right?

James:
Yeah, mm-hmm (affirmative).

Tom Krol:
Brother, I can’t agree with you more. The only reason I was successful when I started is because I listened to my big brother. He told me what to do. He told me I could do it. He’s told me I was good enough. I was smart enough. I could figure it out. It’s simple, it’s easy. He pushed me. When I would get negative results or send out a marketing campaign that just totally bombed and I wasted money I didn’t have, you need somebody there to say, “Hey, that’s normal. Get back on the horse. No pity party. Come on, come on. Chop. Chop.”

James:
Yeah, absolutely. Absolutely. It helps tremendously.

Tom Krol:
I love it. Well James, this was an amazing episode. I am really, really looking forward to seeing more success from you. You’re a total rockstar. Good job, man. Keep, keep going at it. Keep crushing it. I’m looking forward to hearing great things.

James:
You got it, head rhino. Thank you so much for taking the time to do this.

Tom Krol:
Absolutely. My pleasure. I’m honored to have you on. Thanks again. Enjoy the day. God bless. We’ll see you soon. All right guys was James. He’s a total rock star. He is crushing it. Five deals since joining and he quit his job first. Oh my goodness gracious. Very risky, but hey, I guess when you want something and you’re going to go for it, you become like a pit bull and you’re just going to go for it or a rhino and charge at one thing. Very, very cool guys. That was James. He is doing well, $13,000 on that last deal split. It was actually $26,000 profit that was split between two people. The lesson there is build your cash buyer list. All right, everybody until next time, we’ll see you then.

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