Posted on: May 22, 2020
WI 433 | Finding Deals

 

If you think being a spectator and playing it safe is the best thing to do in today’s market, think again. Today’s guest just proved that you can still help and solve people’s problems despite the current situation and get rewarded handsomely for your efforts!

Mark Dunn just accomplished something truly fascinating—he closed 2 deals that made him $98,000 richer! While having the luxury to spend quality time with his family was his primary motivation for getting into wholesaling, Mark eventually found out he gets to enjoy another enticing benefit: a massive income!

If you need some motivation to go out there and make things happen, today’s episode is for you. You will not only be inspired by Mark’s hustle, but you’ll also learn many actionable items that can help you get your wholesaling business back on track!

2 Deals to $98,000

Episode Transcription

It is a day for a success story that is going to do nothing but motivate you, inspire you to get out there and keep taking massive imperfect action because deals are still out there. You got to get out there and stay active. It can’t be anything from sitting on the couch. You have got to be willing to get out there and get proactive and make things happen, but do not step on the break at this time.

This is the time to be stepping on the gas. There are so many people slowing down. They are pulling back saying, “There is COVID-19. I want to check and make sure what is going on before.” I do not know if I would be doing that at approach because I’m seeing this time and time again in my own business. I’m seeing this in many other businesses.

We have Mark Dunn, who is one of my favorites right here in my own backyard. We are in the same territory and I want you to know that deals are happening, not just in our business, but they are happening at Mark’s. He is going to share how two deals brought in $98,000. Mark is going to break this down. Before we get going on this, I want you to know that it is okay to make money during this time. What is not okay is to not make money during this time.

Now is the time to take care of the home base and your family. More importantly, when you are able to make money in real estate or money that exceeds the amount you need for your home, you are able to then contribute and take care of people that desperately do need you during this time. It might not be as easy for them to make that money that you could be an answer to their prayers. You could be an answer to them in some ways. Mark, they have got the prefaces behind all this, this is big. $98,000 in two deals. First and foremost, tell us a little bit about yourself and what the heck got you in real estate.

I’m Mark Dunn. I’m right here in Murray, down the road from where Cody lives, straight from where he is building a house. I have an awesome little family here. I have three tiny little kids, two boys, a girl, and we have got another little girl on the way.

Congratulations. I did not know another one was on the way. You are fitting right in, but I’m four no more. I do not know if you are going for five, but I’m not.

We will see what happens there. The wife wants to.

Tell Wendy, “If you want another, let’s get a puppy. Let’s do something, but we are not doing kids anymore.”

It is a lot of work, but it is a joy.

It is.

Honestly, that is why I got into real estate. Even before I had a family, I wanted freedom. For me, it is all about time freedom. I’m not too big in like, “I want to be a multimillionaire.” Money does not drive me. It is just having the time freedom to be able to be with my kids. I love it so much. I got into real estate right out of college.

People think growing their business is all about scaling. But they should know that sometimes, scaling too soon can hurt your business.

My mom is one of the top realtors in the state. When I got out of college, we were coming out of the Great Recession. I could only get up for $10 an hour. I could not do it. This is not going to work. This is not adding up, so I dove into being a realtor and I made $20,000 in my first year. I probably could have made more at the $10 an hour job. I worked 100 hours a week.

Every year, since then, I have made more and more money and I have worked less and less. That has been the cool part for me. A few years ago, I started listening to the show. This was right before you and Tom had joined together. Time goes fast but wholesaling caught my attention. I kept being so busy as a realtor. I did not dive all in. I got my first deal in 2021. I have been in the TTP part of the program.

I have been researching for a long time and I spent a lot of money. I spent $15,000 to $20,000 and did not get a deal. I sucked at following up. That was my PI. I brought on a partner I had met in the realtor world that is an absolute closer, Nick Jensen. I give him my 500 leads. I’m like, “Let’s partner up. Go find a freaking deal. Let’s get going.” On his sixth phone call, he gets a deal.

You are like, “Is that easy? I missed that much?”

He is an awesome partner. We get along well. That is the best part about it. It is not just a business. We have a lot of fun doing it. That is my story. I close 25 to 30 realtor deals a year. I’m trying to build the wholesaling business to where that is making $200,000 on year two. It gave me more freedom. Realtors take a lot more time than a wholesale deal, so that is my motivation to do wholesaling.

I love that it is family-based and freedom-based. You can do it in many industries. I’m not here to say that any other industry is bad or anything does not work. Real estate was my way to find that freedom. It was my way to connect more with my family and to have that time with them to enjoy them the way I wanted to versus the leftover Cody Hofhine.

I can prepare my day around them and fit some work time in between those times versus going to work for all this time and them getting the leftover piece of Cody. The leftover piece of Cody was never the best Cody anyways, so I agree with you 100%. Let’s talk about this, Mark. You are doing some great things. You are right here in the same market. How you did two deals that brought in $98,000. Where is this coming from? How did you do these deals? What list did you find them from? Ultimately, what was your marketing channel to get going?

I’m excited to share these two deals. I will talk about the first deal. We made $70,000 on this deal and it came from the unknown equity list from ListSource that I learned from you and Tom. I probably had pulled this in January or February 2021. We texted this entire list on Lead Sherpa. We even skipped traced it on Lead Sherpa. The guy was so motivated. I did a horrible job texting him back. He texted me three days in a row, “Do you want to talk about this house? Do you want to talk about this deal?”

I finally saw it and I’m like, “There must be something here.” I sent it over to my acquisition partner, Nick, and had him give him a call. It took a month or two to get it under and get it closed finally. His motivation was that his parents owned this single-family home with a mother-in-law. It was counted as a duplex in Midvale.

Was it one of those nonconforming duplexes?

Yes, nonconforming, but you can rent both out. You can sell it as a duplex, which was huge. The guy’s motivation is the parents were moving to Arizona. They did not live there, but they wanted to retire in Arizona. He wanted a quick, easy deal. Since we are realtors, on all our deals, we tell everybody, “You are going to make more money if you are listed as a realtor.” We even got a few listings ourselves from the marketing we do in wholesaling.

WI 433 | Finding Deals

Finding Deals: Real estate is a way to find that freedom.

 

He is like, “I want it quick and easy. I do not want inspections.” We gave him a super low offer. It was so uncomfortable. It took a couple of weeks to negotiate as to what would work for them. We thought we’d make about $30,000 to $40,000 on the deal. It comes back to another key point that you guys teach. We have about 4,000 cash buyers on our list. Because of that, we were able to get three offers.

We only had about five people interested in the deal, which is a lot less than it was a month before the pandemic started. We only had five people interested, but we had three offers. We were able to go to these three people and say, “We need your highest and best.” The lady we worked with is a huge win for her. She has a couple of rentals in the area and adding them to her portfolio. Anyway, it is a huge deal for us.

That is massive. I won’t even let you downplay it. That is fantastic, $70,000. I want to recap it real quick. It is the fact that he is out there, staying consistent. He is not pumping the brakes. He is pushing on the gas pedal. He is out there doing things, but more importantly, he is finding ways to serve people. He even let them know upfront.

It is that truth teller, truth seeker. “You are going to make more money listing this to the realtor.” It is them getting the speed and convenience. In return, we get our price. That is something we have always talked about, negotiating. This is a perfect example of it, where you give them that speed and convenience that they are looking for, they are willing to give you a price. $70,000 is phenomenal. The sad thing is typically, I have that big victory bell, but because I’m not in my office, I’m going to give you the school teacher version of this beauty right here. Get ready for the first deal. That is your first one. That came from text messaging. Was that the marketing channel?

Yes, text messaging.

The other thing I like about what you do, Mark, and it is crucial for everyone to understand is Mark closes on these deals. He buys and owns these deals. That is a beautiful thing because it helps you in many ways. It helps you get in the mindset of, “You still do not need your own money to buy deals.” Did you use your own money on this?

No. Our hard money lender did, Zach. He is an awesome guy. If you need a connection here in Utah, hit me up.

Many times we think, “If I had to buy a home, I’m going to come up with money.” This is a perfect example if you are thinking you can’t get into real estate because you do not have money. Mark did not use his own money to close on these deals. You borrow that money. It is hard cash lenders and they are everywhere. He is able to close on this, owns the deal, go out there, and market this deal, which is huge.

The second byproduct is this prepares Mark for knowing when he wants to cherry-pick his best deals and keep him for long-term buy and holds. He is already in the mindset of, “I know how to do this. I know how to close on deals. It does not scare me. It does not bring any fear to me that I have to close on a deal.” It is because he is already closing on deals.

When most people are simply assigning or wholesaling the term, when it comes to a rental, it is like, “I do not know what to do. I do not even know how to go through these purchase prices. Do I this?” They get so confused. Mark is already going to be one step ahead and ready to close on any deal he comes across that he likes. How many people are on your team? Do you have VAs or is it just you and your partner?

Sometimes, you go into real estate for that time and freedom because you can make more money while working less and less.

We got my partner and me. We had a cold caller. We fired them because we are going to upgrade our cold callers. We were going super cheap, three-hour caller Filipinos. They work hard. We are going to upgrade our cold callers to probably about $8 to $10 Filipinos that are in a call center that are being trained. If you have more money, go with cold-call motivated sellers that Brent teaches.

We are cheap. It is hard to pay $20 an hour, but we are trying to upgrade that. Maybe our next step is cold call motivated sellers. We are going to have a couple of cold callers. We are going to train a texter because I have been doing the texting and I’m very inconsistent. We are going to train a texter to try to text 1,000 a day.

We are going to hire a marketing VA. We do have an acquisition manager, but we may have brought him on a little too early. Our business probably is not there yet. We will probably keep him along and keep training him. If he can get some deals, great. We tried to automate our business too fast and bring it up. Let’s keep grinding. Let’s get 5 to 10 more deals.

Everyone wants an automated business tomorrow.

I do.

You are saying something that is crucial, Mark. Many times people try to scale too quick even though people think, “It is because of scaling that I’m going to grow my business.” Scaling too soon can also hurt your business, so I’m glad you are bringing this up. There are people that are like, “All I can think about is how do I scale? How do I get a team in place?” It is not to say that you are not ready for it. You very well could be. You are going to find out through time what is going to be the case. I love that you are bringing that up because there are people that automate too soon. It hurts their deal flow and whole momentum.

Even though our acquisition guy is great, he did get a couple of great appointments. If they had landed deals, maybe we would be having a different conversation. We are excited to build a smaller team and continue to grow but we are back in the mindset. “Let’s grind a little bit harder. Get some deals ourselves. We know how to do it ourselves. We have proven that and let’s keep going.”

Let’s know your second deal because we have got $70,000. That means there is another $28,000 out there with one more deal. What did you do to find this and how did you come across the leap?

This was from our driving for dollars list. I have had a guy driving ever since I got into TTP. I pay him $12 an hour. He only does ten hours a week. We have built up about 12 to 13 driving for dollars addresses. We texted this lead. This was also in Lead Sherpa texting. This was an interesting deal. This was a reverse mortgage, and we had to do it through a short sell.

This is the most motivated person I have ever talked to. She would have sold the house to us for $1 if she could have. Her son was a hoarder and she moved out of the house because the son was hoarding so bad. It was a bad situation. We went through the foreclosure process. It took a few months. It was an interesting deal. $28,000 was the total profit on the deal.

WI 433 | Finding Deals

Finding Deals: To consistently find deals right now in this market, you need to follow up. The money’s in the follow-up.

 

Working with the bank because we are realtors, my partner and me, we were able to get commissions on it, too. That is how we are able to get the price lower with the bank. We closed on it and whole sold it. $28,000 was the total deal. We did driving for dollars and texting on Lead Sherpa. The key with texting is you have got to get on the phone after 2 or 3 good texts. I have tried so hard to close a deal through texts and it ruins it.

I could not agree more. I’m laughing because so many are falling to, “Texting does not work.” It is probably because you did not work it right. At the end of the day, it comes down to who is working it. Many times, we are like, “I want to take it all the way to the close right through a text.” That is not going to happen. Is someone going to sell you their home through text messaging? No, you got to pick up the phone. Once you have a little bit of dialogue going on, pick up that phone and start calling them.

Start weeding out the people that are interested that say yes or maybe and having a good conversation with them. That is my favorite thing about Brent Daniels. Every day you should have good quality conversations.

Here we are in the same market. We have not seen each other since the Orlando event back in 2018. We are right here in the same backyard. This has been killer but at the end of the day, what would be the best thing you could tell people when it comes to how to find deals in this market consistently?

It is all about follow up. That is where I felt. I probably could have 10 or 20 more deals with the action that I had taken in the beginning. I was making my money as a realtor but I did not need the money as a wholesaler. I kept looking for that low-hanging fruit, but it hardly ever came. That is why I did not follow up. Even if you do not have the money but you may have some past leads, follow up like crazy. The money is in the follow up. If you are getting started, I would say driving for dollars, skip trace them, and cold call them. With this route, you are getting a deal for sure.

I’m going to ask you, are deals still happening during this time?

Yes.

Do you have stuff already in the pipeline for the future?

We had 3 or 4 good appointments that we needed to follow up with. We shut everything down with the cold caller and the texting. We are upgrading batch texting, and skip tracing. The goal to get it done is upgrading our systems and skip tracing and our cold caller, and our VA. Things are going to be slow because our lead flows is slow. We are revamping that. Before we shut it down, we had 4 or 5 good appointments. We could not get it down.

You will stay at an appointment and even say, “I need to run to the store and get some spaghetti and I will come back.” I have heard that story a couple of times from you. We have never been able to close the deal at the appointment. How are you doing that? It is so hard. We have even stayed for 4 or 5 hours and we could not get the stinking deal.

The key to closing deals through texting is you’ve got to get on the phone after two or three good texts.

We are crazy. If you tell yourself, “I do not think it is going to happen,” you are probably going to fall to that. We are relentless to that mindset that if we do not get the deal, we will never get the deal. That has always been our mindset going in our heads and it allows you over time. It is not something that happens overnight and the different trainings that happen overnight and the things that evolve from that mindset.

If you have that mindset that, “If I do not get this deal tonight, it will never exist,” over time, you start to develop how to be better, how to use your mind differently, how to be more creative in how to help people. Usually, when people do not want to, they know they need to sell. Let’s say you are out there because the motivation was super high.

They tell you, “I need to move within two weeks. I need to do this. I’m behind on my mortgage. I’m behind on my taxes.” At the end of the day, I’m not on the appointment for the price of the home. I’m on the appointment to solve their problems. I’m a problem-solver. That is exactly what you do. The byproduct is we can get a contract that allows us to purchase their home.

If you will keep to the mindset that, “I’m on this appointment already because I found out they wanted and needed me here. I can be a solution to them. Even if that means I’m not the solution, I’m not leaving that appointment until a solution is found.” It may be that I call someone like you that is a realtor and say, “It is not in their best interest to sell to me at a discount as an investor, but I’m not a realtor. Would you like to list this property for them?”

It could be the solution and it is the end, but I will not leave that house until a solution is found. We have had too many people that say, “I need to think about it. I will get back to you tomorrow.” You call the next day and they are like, “I need a little more time. I have four or more people coming out, so I’m going to hear them out.” We hear this all the time.

We have one called Uncle Bernie. The real story happened. We had an acquisition manager. He is out there. He goes to a lady’s house and the lady says, “I have a party that is going on tonight. I got to prepare for it. I need to think about it overnight, and then I will get back to you.” Our acquisition manager comes back and tells us the story. We are like, “Turn around. Get out there. Get the contract. Tomorrow does not exist.”

He was like, “Don’t you worry about it. I’m confident. I’m 100% positive. I would be willing to throw my commission. I would be willing to throw what you are going to pay.” He was so confident. I’m like, “Do not do this.” The next morning, he reaches out and she says, “The party was last night. Uncle Bernie was in town. He said he is moving to Utah. I told him I’m selling my home.” He ended up buying my home last night.

Our whole thing is do not let Uncle Bernie come into town and take your deal. Everyone is an Uncle Bernie. This is more times than none. If someone needs another day to think about it, it is because there is a part of their problem that has not been solved yet. You need to sit there and think, “What have I not covered with them? What objections do they still have?” It is not that they need more time. They know they need to sell the home. They even know they need to sell it soon. They know they need someone like us to go and help them. Why do you need a day to think about it?

Usually, it is because there are some objections. Think about those things. That is what we do. It could be as simple as, “I do not know what I owe on my home. I need time to call the mortgage company to find out what I owe my home to see if this even makes sense.” That is where we are like, “Is there anything that can help you? It sounds like you need to sell. Is that correct, Mr. Seller or Mrs. Seller?” They are like, “Yes.” You are like, “Is there anything that is not certain or do you need clarity on where you sign, like your payoff?”

They are like, “That is the thing. I do not know what I owe in my home.” It is like, “Awesome. Here is the thing. I always want to serve you. I always want to bring value. Go grab a mortgage statement real quick. Most of these companies know me by name because we called so much, but let’s call them. It is Wells Fargo. This will be easy. Let me show you the process. I’m with the seller here. What is the pay off? Mr. Seller, give them authorization. What is the payoff on something like this? They owe $175,000.” “Perfect. Thank you so much, Wells Fargo,” then hang on the phone.

Now, you are helping them through the whole process. They are like, “That objection that I was going to need to do on my own, you took care of it. Because of that, I’m fine. It looks it is going to work. Let’s sign tonight.” Mark, that is what it is. Whenever I hear someone say they need a day to think about it, what they are saying is, “All my questions aren’t answered yet. I still have some things I need to research.” There is a doubt or an objection in their mind. You got to stay there and solve every one of those objections and problems. If so, you will get the contract.

WI 433 | Finding Deals

Finding Deals: Whenever someone says they need a day to think about it, what they’re really saying is, “all my questions aren’t answered yet.”

 

Another thing too is building more trust. Maybe we are not to the trust level yet where they are ready to pull the trigger. All that helps. I appreciate it. That has been our biggest one deal at the stinking appointment. It takes another week or two to follow up and we could have lost it to Uncle Bernie every time.

One question here, starting fresh in wholesaling, what would you recommend be the best area to tackle to generate leads? Would it be probate or absentee owners? Name your top performer and I will name mine.

Driving for dollars is always going to be an amazing list. I was surprised by the unknown equity list. That is where we got that other deal. A big list that is hot, and I have seen it from other investors that are sending deals, is the multifamily list or titled list. That is going to get hotter and hotter as people start to continue to struggle to pay rent.

I was going to tell them eviction. Eviction is a great list because there are a lot of landlords wanting to get out. They are done. They are out of the game. They do not want to fix it up. They do not want to go in there and repair what the renters have done. That has been a great list that is performing very well for us.

Mark was saying, even driving for dollars, going around, driving around, and looking for homes that have signs of needing repair. There are two great channels right there that are working for both of us. I love it. You guys are fantastic. We are grateful you join us. Mark, I’m grateful for you that you take some time out of your day to do this because the quality behind this is, “How do we add more value to people’s lives? How do we inspire people, motivate people in a time where there is uncertainty?”

We have all these questions going on with COVID-19. It is like, “How do we pull the focus off that?” Help people know that you can still get out there and make a huge impact. You can still make an income. Ultimately, you could solve a lot of people’s problems and help a lot of people during this time. Thank you.

Thanks for having me. I enjoyed sharing what I had learned. A lot of the stuff I have learned has come free from your show and being a part of TTP has been awesome. I’m glad to be a TTP rhino.

This Mark Dunn has done a fantastic job. If you need help building your real estate business, you can get out there and find these off-market properties that you get at a deep discount. Head on over to WholesalingInc.com. We are here for you. We have got it in a pricing to help people get into the game. We want more people to get the jersey on. We got Mark over here with the jazz hat on. It made me think of getting in the game. Now is the time to put the jersey on, not watch it from the sidelines. It is an incredible industry to be in. Does it work? Yes. Is it easy? No. Look how awesome this is.

It allows Mark to be with his family, his loved ones but also have the certainty that he is going to be able to take care of his family. If you are looking for that, for the way to get certain in uncertain times, head on over to WholesalingInc.com, fill out a short application, hop on the phone with our team, and begin that conversation. See if it is a good fit. See if it is something you want to move forward.

Let’s get you in the game where you can put on that jersey and go find deals consistently like Mark with two deals for $98,000. Even if it was only $20,000, what would $1,000 do for you? Let alone $98,000. Get out there. You can do it. Mark, thank you so much. Go enjoy that beautiful family of yours. I’m sure we will meet up here in the near future.

Thanks for having me. Take care. 

See you, Mark.

 

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