Posted on: July 02, 2020

What happens when some of the best wholesalers and real estate investors in the industry get together in one podcast? You’ll hear wholesaling wisdom, insights, and tips you won’t find anywhere else!

In this episode, listen to seasoned wholesalers and real estate investors Brent Daniels, Pace Morby, Jamil Damji, and Flipman share their thoughts on various topics and provide superb tips that has helped them effectively dominate their markets.

What’s even better? Our very own Tom Krol joined the podcast and shared practical and evergreen wisdom that can surely help take your business to the next level. This is one of those special episodes you’ll listen to over and over again so make sure you don’t miss it!

Key Takeaways

  • Their thoughts on closing face-to-face versus over the phone
  • What ABL means and why it’s key
  • What new wholesalers need to remember when facing objections from sellers
  • Why you need to be brutally honest when negotiating
  • Why you need to be a deal creator instead of a deal finder
  • How to increase your deal flow
  • Rookie mistakes most wholesaling newbies make
  • Why focusing on only one marketing channel is recommended
  • Most important KPI you should track
  • How to go from doing 2 to 80 deals a month
  • The first rule of marketing
  • How to systematize the onboarding process
  • How to pay acquisition managers
  • The importance of getting a really good real estate attorney
  • When it makes sense to partner with people
  • What you need to know about your market to dominate it
  • What uber wealthy people have in common
  • What T4 finance is all about

RESOURCES:

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Episode Transcription

Brent:
Nobody has coached more successful students than Tom Krol, it’s just a fact. The Wholesaling Inc.podcast gets 9,000 downloads every single day for a reason and that’s because it is just absolutely filled with value and instruction. Not only is he just an encouraging and loving human being that truly cares about every single person that’s listening to this, this small group of people that want to be real estate investors, want to be financially free from finding and sourcing discounted properties. Of course, he loves everybody there. But more than anything, he wants to push you to the next level, he wants to push you out of your comfort zone so that you are taking action every single day. He has the best equation for success that I’ve ever seen and it talks about, it is not about education plus action equals results. It is the action plus the results is your education. With that, if you would, bring on the Tom Krol, the number one, the head rhino from [inaudible 00:02:23], in Georgia. Tom, say hello to everybody.

Tom Krol:
Hey Jamil, Pace, Brent, good to see you. I don’t know who’s in a blue shirt.

Pace:
That’s flip man.

Brent:
Ty the Flip Man.

Pace:
Ty the Flip Man.

Tom Krol:
Flipman good to see you [crosstalk 00:02:41].

Pace:
Yeah.

Brent:
Tom, the way that this show works is people post their comments. We pick them up, we put them on the screen.

Tom Krol:
I can’t hear you. Hold on, let’s see.

Brent:
Jamil, how are you?

Jamil:
Awesome, man. I’m having a great day. It’s a Monday. It’s a great day to be a wholesaler, a great day to do deals. Flipman just made a quick trip into town. Happy to see you guys. How was your weekend?

Brent:
Sold another deal to you last week. Sold another deal to you, we have a few more that we locked up, which is really exciting.

Jamil:
Awesome.

Brent:
And it seems like everything just is continuing to roll and roll and roll, which is really exciting. We’ve been working with really training with our acquisition managers Pace and you can probably tap into this a lot. My acquisition manager he wants to try to get everything done over the phone where I feel like there’s slippage if he’s not going on the appointments. Can you talk to that a little bit Pace? And maybe it’s something that people are wondering about a lot is, is it better to go face to face or to lock up these deals over the phone, if you’re in the same market? This is obviously different if it’s virtual, but do you have a preference Pace and then I’ll send that to you? Tom, can you hear me?

Tom Krol:
I got you loud and clear.

Brent:
Awesome.

Pace:
That’s a great question. I had my sales meeting today and we went through our KPIs as it relates to our sales team. The KPI that we went through and we found out was we found out 80% of our deals right now are being done virtually in our own market. The other 20% are older people who say, I don’t know how to work technology or it’s somebody who is talking to so many other wholesalers, we feel like we’ve got to have the competitive advantage and get face to face. We locked up a deal today, specifically the lady lives in South Scottsdale. She says she’s signing with us because we were the only people willing to come out to her property.

Brent:
Yep.

Pace:
I think you got to look at it and say 80% of your deals can be done over the phone, but you have to use your own discerning ability and filter out and say, I need a competitive advantage here so many people are talking to this seller, I need to go out, eyeballs to eyeballs to get that contract done.

Brent:
Awesome, Tom.

Tom Krol:
Yeah. I like to chase deals. I want to get in there, build rapport. And I will tell you this guys, once I get in there, if they’re selling the house they’re selling it to me. And that’s the key. I think the number one thing is if they’re going to sell that property, I’m going to build rapport because it’s not about the property, it’s about why are they selling. It’s about how worried they are about the grandfather clock that has to move down to Miami from Baltimore. And that’s really the number one thing.

Brent:
Love it. And it was interesting Tom, I did an interview today with your brother Todd Toback And we were talking about a common objection that we run into which is send me your proof of funds or how many deals have you done or how much business have you done or how long have you been in business? And Todd was like, “Listen 99.99% of the time, those people will never do business with you, It doesn’t matter what you say so just be honest with them. Just tell them what it is.”

Tom Krol:
I think the key is ABL, always be leaving. I think what a new wholesaler has to remember is that every question, every single question from a seller is an objection. If they ask you what color is the car you’re driving? What most wholesalers do, is they lean in and they try to convince and they say, “Well, I drive a red car, which means I can get here faster.” But what you have to do is you have to say, “Hey, I’ve got a blue car. Is that going to stop me from buying your house today?” I think what is really important is if your dog runs out of the house and you want to catch it, if you start running after it, it’s going to run away. And if you start running away from it, it’ll chase you. You’ve always got to be in the mentality.
If you’re a brand new wholesaler and you don’t know anything about anything, which is it’s the strongest position you can be in because wholesaling real estate has absolutely zero to do with real estate. It has nothing to do with real estate. The only reason I do houses is because they’re more valuable and desirable than watches. If tomorrow watches became more desirable and more valuable than houses, I would just switch my model to watches or to television or to boats or to whatever. The only reason we do houses is for that reason. The key is, it’s like dating. I’ve been married to Julie for over 20 years. I don’t know anything about dating, don’t ask me any dating advice.
But the whole idea is you’ve got to be confident. You’ve got to show up. You got to be brutally honest and you have to understand that you have a million dollars in your pocket and there’s a thousand houses for sale so they better get busy, convincing you that you should give them your money. You don’t get busy with them telling you all the reasons why they should sell you the house about how great you are, because that lacks confidence. And the reason they’re selling is because they’re in trouble. There’s always an impending event. Whether you ultimately find out or not, which it is difficult to do, we can show you a few tactics on how to do that. But I promise you anybody who calls you off of a 32 cents postcard, there’s a reason. There’s a reason that they don’t want to have an agent showing the house and all of that. You’ve got to find that problem and solve it and that’s the key. I love it, but it has nothing to do with real estate.
If you’re like, “Hey, I don’t know what to do. I don’t know where to start.” If you just get good at finding discounted properties, you will find financial freedom very quickly. Don’t be like a whole lot of new wholesalers they go in and they have a sheet of paper with a rehab. They have absolutely no idea what they’re talking about. Then they start to lie because how can they not lie? Because they have like a rehab sheet. Meanwhile, they’ve never replaced the granite counter top of their whole life, neither have I by the way. I have a guy who comes in to change my light bulb, that’s not a lie. They’ve got very high ceilings here. The whole thing is if you just want to practice brutal honesty, which is find out why they’re selling and if somebody’s struggling and they’re like sometimes the sellers, they just dance around the topic. They’ll say something like, we’re empty nesters, which really isn’t a reason.
One of the little tricks is the when will reveal the why. If your seller is just not giving you an answer, just say, “Hey, when would you like to sell by? When were you hoping to sell by?” And then they’ll usually say something like, “Oh, well, if I don’t sell by February, it’s going to go with the tax foreclosure.” It’s like, “Oh, okay.” Now we know why we’re here. They’ve got to see you as the coast guard, they’re a sinking ship. And if you pull up in some canoe with a hole in it, which is chasing them, they’re not going to put their trust in you. But if they see that you’re the coast guard and you have brutal honesty and you’re trying to help them, and you have the ability and capacity to do that, then they’ll sell you the house at a discounted price in exchange for speed and convenience.
These are always people who’ve let a problem go for five, 10, 15, 20 years. They’ve ignored it. And as we know in life, all the great men and women who came before us, everything you ignore will fall apart, rot and deteriorate whether it’s your family, whether it’s your business, whether it’s your house and anything you pay attention to, will just do better. It’s easy peasy, lemon, squeezy.

Brent:
I love it. And Jamil talk to me because Tom just brought up a really good point and he said, it’s not about the real estate. When you’re trading so many, you’re trading two, three, four, 10 deals a day, how does it feel to you? Do you feel like it’s real estate? Do you feel like it’s just trading something. Mentally, how do you get in that space where you’re not worried about every little detail about the property?

Jamil:
There’s a level of disconnection. You have to be detached from the asset. You’ve got to be a detached from the situation. And I love what Tom said, always be leaving. Even when we’re working with another wholesaler and they’re trying to get in the way of the deal, it happens a lot, where you’ve got somebody who’s like, no, I need to micromanage the situation, I need to get in the middle of it. I need to try to control this, control that, control this. And I’m always like, “You know what? No problem. When you have everything figured out, let us know, come back to us with the deal and we’ll work on it.” And then right away, they’re like, “That’s not what I meant.” “Okay. What are we talking about here?” Because what you’re focused on right now is not the deal, what you’re focused on right now is not connecting the dots. What you’re focused on right now is that your dot has a tiny little space in it that’s not filled in and is bothering you.
And that whole mentality, that whole capacity not to look at the big picture is what unravels business all the time. It’s what unravels partnerships. It’s what unravels marriages. It’s that when people just can’t accept that everybody’s got a part to play and they let people do their part. I think having that attitude of always be leaving is a 100% not only a real thing, but it makes the seller value. It makes the seller understand. We walk into there and we’re all like, “Will they like me? Will they think I smell good? Will do this clipboard I’m holding play as a prop.” No. You know what? It’s funny because people think I don’t do seller direct anymore. I was just on a seller appointment three days ago. I’m communicating in a probate deal because it’s from my insurance agent who loves to send me deals. When someone passes away, my insurance agent talks to the family about the death benefit. And right at that conversation, he says, “I know someone who could potentially help you with the estate. Why don’t I give you their referral?” And then I’m in the deal.
Here I am at a property, not too far from my house. And as soon as I walk in, I’m like, “Oh, this house is really nice.” I don’t think you want a cash buyer. What you want to do is spend $50,000 and deal with an agent. You need top dollar for this. Let me put you in touch with a great contractor and let me put you in touch with the best realtor in town,” and right away, it’s backtrack, backtrack, backtrack. But no, I called a cash buyer because I want to understand what you can do for me. In that instance, let’s talk about it there because this whole reaching for the stars type mentality or whatever that they’re looking for, the game they’re trying to play with me is not the one I’m playing with them.

Brent:
Love it.

Tom Krol:
If I could, let’s just talk about, because somebody might be new and they might be listening to this and they’ll be saying like, “Oh, you guys are so skilled, especially Tom is so good looking so this is so easy for you guys.” Let me just give you the basic core element of how to do this tonight because anybody who’s really serious. If you’re at rock bottom and you want to change your life right now. You are powerful, you are strong, you’re made in the image of God, you can do this right now. There’s no reason to go to bed after this broadcast, you should go out and do a deal, especially if you have a family to take care of. If you want to go and do a deal tonight, you don’t need sales books. You don’t need boring class, you don’t need negotiating, you don’t need Chris Foss, all you need is this brutal honesty.
Everybody operates with, “I’m afraid. If I tell the seller this I’m going to lose the deal.” Here’s the news flash, you don’t have a deal. Most people who own a home don’t want to sell it. The majority of people who want to sell a home, don’t want your low ball offer. This is a small minority of people. Your job is to get through all the nose as fast as possible. But when you start lying and not that you’re lying intentionally, but you’re pretending that you’re a rehabber or you’re talking about words you don’t really understand like equity and cap rate or whatever the heck, all that stuff means, which I don’t even really know. The bottom line is brutal honesty.
And this is how you can do it, if you could practice it right now, this is how you can practice it, whatever you’re afraid to tell the seller, because you think you’re going to lose the deal, that’s when you say it, right then as soon as you’re like, if the seller knew I wasn’t going to live here, they sure wouldn’t like me. Seller, here’s a great question, “This is a nice house. Why don’t you list it with a real estate agent?” Seller, “This is a nice home in a nice area. Why don’t you become a landlord?” You have to be childlike, which is why this is such a good business for me because I got a 990 on my SAT. This is like, perfect. But the whole thing is just be that whole advice of like act as if, worst advice ever given in the history of real estate investing do not act as if, boil it down to childlike understanding. And don’t leave that living room until you’ve got that contract signed because you’ve built rapport and you understand why they’re selling.
And if you take that brutal honesty, some people will say, “Yeah, I should list with an agent. I want top price.” If somebody says, I want top price and you’re a wholesaler, always remember you will never win on top price. Wholesalers will never win on price. You can train for in sales and negotiating for years, but it’s not going to make any difference. You’re just going to get to know a lot slower probably at the closing table or the day after.
I think the key there is just understand that wholesalers never win on price and be willing to ask the tough questions as soon as you feel it and you’ll feel it in your belly, so some of you guys know what I’m talking about, but as soon as you feel it in your belly, like, “Oh man, what happens if I say this? What is the seller going to think?” That’s immediately the time to be brutally honest with the seller. And that’s how you can do all of that in such a short amount of time. And you don’t need, what’s the best latest book on sales, Dale Carnegie or Sandler or Chris Foss was an FBI negotiator. That’s all great. I love reading books. I love sales and negotiating, but if you just want to do a deal tonight, that’s the way you do it, brutal honesty.

Brent:
I love it. And this is a good question from Paul, because I think that this is really what is stopping a lot of people from that brutal honesty is not coming across rude and what I will say, and you guys can Pace, you’ll tell them, you get into this as well is I would say 95% of rudeness is delivery. It’s the tone of voice that you use and it’s the way that your face looks when you’re saying it. If you’re having a good conversation and you’re like Tom, and you’re smiling and you’re saying, “Why don’t you list this house? Why don’t you do this? Why don’t you keep it as a rental? I probably can’t give you the most amount of money. I’m probably just going to sell this to somebody else anyway,” whatever it is. It’s the delivery is the most important thing. Don’t go in there, brutal honesty, you can but just do it in a sense that is a comforting tone where you’re not just totally beating him over the head and confusing them emotionally, by being really aggressive and verbally attacking.

Jamil:
Brent, it’s funny that you talk tone and I think tone and intention have a lot to do with each other.

Brent:
Mm-hmm (affirmative).

Jamil:
What are my intentions in this meeting? What am I trying to accomplish here? Who am I here to help? And if I start to understand that I’m not that I’m not helping myself, then I might be a jerk. I might start to get a rude. I might start to get fast. I might start to get aggressive. All these things can happen because I’m starting to feel like I’m going to lose the benefit.

Brent:
Yep.

Jamil:
But if I walk into that without having it in my heart to benefit myself and I’m truly there to benefit the person that I’m talking to by offering a solution that I can offer in the skills that I have, then there should never be a point where I come off rude. I should always be able to deliver the best solution for a seller with the most grace possible, because it’s the right thing to do.

Brent:
100%.

Tom Krol:
A great example of anybody who wants to see this live. If they want to see wholesalers live in action, it’s just put on pawn stars. Because as soon as the guy walks in with the Rolex watch, he says, “Oh, that’s a really nice watch, why would you consider selling it? Tell me about the watch.” “My grandfather got into world war II. He fought and he hid the watch and then he got it back and he gave it to me, but I really need money.” “Why do you need money? I don’t think I can buy this.” It’s just like-

Brent:
Best I can do.

Tom Krol:
Right. I always say wholesaling is like a pawn shop, it really has nothing to do with the real estate. It’s all about these people are coming in, they know what they’re doing. All the sales and negotiating training in the world is not going to… You don’t want to be a deal creator, you want to be a deal finder. If you’re brand new and you’re just starting out and you don’t know where to start, this is the best news you could have ever gotten because the people who are deal creators have difficult, frustrating jobs. The people who were deal finders put really simple systems in place. They delegate those systems and then they go to a cabin in the woods and they just relax. The whole thing is just be a deal finder, don’t be a deal creator. If you can get really good at finding a lot of deals really quickly, you’ll find financial freedom, you can delegate that system easily but all of the back and forth with the negotiating and this and that, and trying to create a deal, you should do creative financing.
Pace obviously is a genius at that stuff and putting deals together creatively. But finding deals is your best bet. And then getting into the creative part. Once somebody says, “Hey, you know what? I haven’t paid my taxes in three years. They’re about to take it. I live out of state. The renter’s destroyed, just do help me out.” That’s the key.

Pace:
Hey, speaking of creative financing, Harold Hart, his name is Harold Richards. He’s out of Atlanta. Last time I physically saw him, he’s on the screen, you guys can see his name. Jamil and I were in Atlanta and Harold was homeless living out of the back of a UPS store. And today he called me and told me he’s going to be a homeowner again. He’s buying a home subject to and he utilized Wholesale channel as a way to get to that point. Harold, we’re going to ring the bell for you brother, [inaudible 00:20:58] who went from being homeless and sleeping in the back of a UPS store to being a homeowner, utilizing Wholesale as a way of generating leads. And then he converted a tougher deal utilizing creative financing. Guys show Harold some love. Amazing story he told me about this morning he’s helping out some veterans, which is another cool thing we get to do guys, help so many sellers by solving problems. It’s so freaking fun. Sorry to interject there. I just saw Harold’s name and I couldn’t hold myself back.

Brent:
Hey, is Tariq in the background. Can you get them on to ask that question?

Pace:
Yes. Let’s get them on here.

Brent:
Tariq, hey.

Tariq:
Hey. What’s up.

Brent:
We’re talking to Tariq, they’re in army barracks right now. Is it Richmond, Virginia? In the army barracks. What do you got for us Tariq?

Tariq:
I am. All right. A quick question that I have is what’s the one thing for a new wholesaler to take yourself from doing two to three deals to doing a lot more?

Brent:
Start us off, Tom.

Tom Krol:
Who do you want to direct that question to?

Brent:
It’s to you first?

Tariq:
Anybody.

Tom Krol:
Oh man, I love this question. What a good question. First of all, where’s my victory, I need a victory belt a cabin, because two to three deals, did you say a month or a week?

Tariq:
A month?

Brent:
Tom, he’s a rhino in the TTP family.

Tom Krol:
All right, rhino good stuff. All right. Here’s what we got. Number one, if you want to increase your deal flow, if you look at the guys and girls who are constantly doing 40, 50, 80, 100, $200,000 a month. If you look at those people and you say, what are they doing differently than the other people who are just in that middle phase, where they’re doing a handful of deals, the number one thing that you need to focus on in my opinion is, number one is increasing your average deal size and automating that process because you need more revenue because you’re in a growth stage. And the only thing that grows our body is the blood, the blood of our company is our margin. Number one there to focus on is deal size. I know that Brent has, through Todd Toback, this is amazing way to do that, very simply, it’s a no brainer so that’s number one. Number two is, do you have any acquisition managers?

Tariq:
No. Just RNR

Tom Krol:
Okay. The key here is definitely an AM because two to three deals a month that’s enough activity. Your only focus in life should be, how do I make my acquisition manager, super Uber, duper wealthy. That’s what I did. I hired just my brother. He was out in Colorado. He was baking bread out there. I brought him in and he was doing it for me and he loved it. And what I did is it was three to four weeks of him following me around with a pad and paper. And I was in charge. I doubled down on my marketing and then it was three to four weeks with me following him around where he would do all the talking with the seller. I was taking notes and then getting back with him in the car and saying, “Hey, this is what he did wrong. Now get back in the house and go get the contract.” That’s all I did and the only transition there is, there’s a lot…

Tom:
Basically, all I did is… And the only transition there is there’s a lot in acquisition manager training, but the number one key is as soon as you hire an acquisition manager, number one, having a total abundance mindset. So, a lot of times somebody will hire somebody that they don’t want to share everything because they’re afraid that the acquisition manager is going to start [inaudible 00:24:18] business. Who cares? They won’t do that 99% of the time, anyway, but who even cares about that? There’s no competition, only collaboration. So, be a total open book. It’s great to have like a mentor-mentee type relationship with that person. And as soon as that person comes in, double down on your marketing. And here is the key, whatever you’re doing to get deals, do more of it.
One of the rookie mistakes that new wholesalers make when they start or want to grow is instead of doing more of what are already works, they start to experiment with stuff that doesn’t, that only works when you’re a 100% focused. So, the key is if you like Bandit Signs, Bandit Signs are definitely the best marketing channel. There’s no doubt about it. Do more Bandit Signs. If you like direct mail, direct mail is definitely the best marketing channel. There’s no doubt about that. Just do more direct mail. Billboards, television ads, PPC, SEO, cold calling. It doesn’t really matter. Whatever you think is best is best, but dominate one channel. This is the one commonality between the wholesalers who are struggling and the ones who are successful is. If you go into a REIA meeting and you’re, like, to a struggling wholesaler, you ask them, “What are you doing to find deals?” They say, “Well, I had wrote a few cards. I cold call a few agents. I cold call a few sellers. I did one PPC campaign. I put up a YouTube video.”
When you talk to somebody who’s making $50,000 a month. And you say, “What are you doing to five deals?” They always give you the same answer. They say, “I’m doing this one marketing channel. I totally dominated in my market. I know exactly what color works. Exactly what font. Exactly when to send it exactly how to take the call, whether it should go to live, answer or voicemail or whatever it is,” because they know that marketing channel totally. When you own one marketing channel and you totally dominate it, which is so much easier than doing multiple channels at the same time, which just dilute your effort and weakened you. But when you do one channel and you totally just rhino it, what happens is you can split test. You understand everything about it. You know when to put it in. You start to get intuitive in your belly. You’re making decisions on your belly because you’re watching those KPIs. You’re not breaking any of the rules with marketing.
This is a numbers game. Most people don’t want to sell their house, and most people who want to sell the house want full price. So you’ve got to be extraordinarily good, especially in your growth stage of hiring acquisition managers of totally dominating that one channel, and doubling and quadrupling down on that one channel as you start to grow. And then once it’s totally consistent, which is basically a marketing channel is like a business. It’s something that is producing a consistent result that you delegate to somebody else. At that point, then you move on to another channel.
And that is a really way to grow your team and to grow your business from two to three deals a month to five to 10 deals a month is increase your deal size, bring on an acquisition manager and double down on one marketing channel and measure those KPIs. That’s the most important thing.
And I’ll give you one KPI. That’s very important. This is the most important KPI that you can possibly track, and every wholesaler on this call knows the answer to this question, which is this, whenever you’re doing direct seller marketing, meaning that the marketing goes down, the phone calls come in. Whenever you’re doing that, the most important KPI, which stands for Key Performance Indicator, to track is this, how many incoming calls equal a deal. And that’s it. Don’t try to differentiate the leads. This guy hung up. This guy didn’t leave a message. This guy was angry. This guy was hot. It doesn’t matter. How many incoming phone calls equal one deal? Because if you know that and you want to buy a million dollar house, all you’ve got to do is reverse engineer that number. So all you have to do is work backwards to say, “Okay, I know that at 39 phone calls equal one deal. And I know my average deal size is $18,000. I know that my cost to get that $18,000 deal is $2,300. So I just need to do X amount of deals and I can buy a million dollar home.” Does that make sense?

Brent:
Yes.

Pace:
Hey, Tom, can I interrupt for just a second?

Tom:
Yes.

Pace:
I have Rudy, who is one of my students, flew in from Fresno to spend the whole week here in my Phoenix office. And he asked me one question this morning, and I went off for two hours specifically about exactly what you just talked about. I said I only followed two KPIs as a high… We’re at a point where we’re doing… Wholesale, we’re doing about 12 deals to 16 deals a month, and then we’re doing another 10 deals on top of that with creative financing.
I’m at a point where I’m not involved in every single transaction, but I look at two KPIs, primarily. One, the most important KPI is how many leads to a converted deal we get. That is the most important KPI for me as the business owner. And then number two, I looked at my cost per contract, which tells me how many contracts I get against my overhead. Those are the only two things I look at. It tells me the entire lifeblood of my business.

Tom:
I love it.

Pace:
So, oh my God, we literally spent two hours just talking about this deal.

Tom:
The thing is if you understand that you can very seriously just explode your income in such a short amount of time. Because when you understand that those are the basic parameters of marketing. People are looking at all kinds of stuff. They’re like, “Oh, I know how to create a Podio report or create a field of Podio. I don’t know what they’re talking about.” Just tell me how many phone calls equally deal, and you will find financial freedom. There’s no doubt about it. I love it, Pace.

Brent:
How do go from doing a couple to 80 deals a month, Jamil?

Jamil:
Well, I removed all of the parts that were out of my control. Essentially, that’s what I did. And so you guys know our model is a dispositions house. We like to work direct to investor. Obviously we do some direct-to-seller, but I’m working with wholesalers, mostly. I have really removed acquisitions from my business model. So now what I do is I focus in and I double down on my core competency. It’s the same thing tom is saying. My core competency, I know it’s dispositions. I know that we can find buyers. We can find more buyers willing to trade than anybody else in the marketplace can. And the second thing is, Brent, I know my numbers better than most do.
And so I can commit to a deal right off the hop, like I did just this week with you and your team, Brent. You guys sent out a deal at 9:00 AM in the morning at 9:01 AM, I bought it. And then between 9:01 AM and 9:40 AM, your team got blown up with another 50, 60, 80 calls. All of them took their time, comping that property up, and really slept on the fact that there was a deal there because they made it too hard.
So, for me, just like Tom says, I double down on my core competency. The only thing that I know… And my KPI is going to be, how many properties am I going to call before I get a deal? We’re doing the same type of activity is just on the other side. I wholeheartedly agree with that, Tom. I think diluting yourself and doing 30, 40, 50 different things is what’s the hardest part for new wholesalers today, because there’s this shiny object syndrome all over the place. It’s what’s this or what’s that? And when you just look down to the basics, it’s like what Flipman used to do and still does it. You just pick up the phone and do your deals, right? So-

Tom:
Yeah. And I would add to it too is don’t do it yourself, right? I mean, I wouldn’t hire you to be my bookkeeper to tell me KPIs. Do you know why I wouldn’t hire you because you’re on this line, which means you’re an entrepreneur. You’re flying at 50,000 feet. You have big ideas all day. You don’t like routine. You don’t like details. No way you’re getting anywhere near my books.
So one thing I would do is outsource that. What Jamil is saying is anything that is not in your wheelhouse, you should not be doing certainly marketing. And marketing, number one, because the first rule of marketing is consistency. So, your marketing should be the first thing that you outsource before you even hire an acquisition manager. Marketing’s got to be big. It’s got to be singular. It’s got to be consistent. It’s got to be trackable. It’s got to be reversible. I wouldn’t hire you to do my marketing. I wouldn’t hire you to do my bookkeeping. So you shouldn’t hire you either. You can go to Upwork or whatever for like 3, 4, 5, 6 dollars an hour and get all that stuff done. But, yeah, I love it. This stuff is so easy, peasy, love it, squeezy.

Brent:
Well, and [Trick 00:08:55], what I would say is, I think you got to look at what is your financial goal. And how can you get there with less deals, so that you can keep more. That’s what I would look at. That’s something that I learned from Todd Toback is if you’re getting $50,000 a deal, you only need two of them. And you’ve got a million dollar business a month. Right now, if they’re 5,000, 7,000, 10,000, you have to do a lot more, you have to have a lot more staff. And remember, this is critical. This is what nobody talks about and discuss this before it happens. But you need to, and I know you are, but I’m speaking to the audience. You need to be a leader. Okay? Once you start hiring people and you’re financially responsible for them, your leadership skills are going to come out and you’re either really bad at it, you’re okay, or you’re phenomenal.
But I have seen people that understand that they can do two deals a month. They can make $50,000 a month. They can keep 75% of that. So they can keep $40,000 a month, and don’t have any overhead. They don’t have any staff. They don’t have any issues. They understand that they’re going on all the appointments. They’re doing all these things. Now, all of them, like Tom said, have somebody that manages their marketing and their lists and to keep them consistent. That’s a no brainer. But that’s somebody that’s very minimal costs.
But there are some people that are going to be fine netting 40, 50, 60 thousand dollars a month for themselves with no staff, and they’re going to make a lot more money than the people that have 10, 15, 20 people on staff, and they only net 10,000, 12,000, 15,000 a month from their business.
So remember, it depends on what your goal is. If your goal is to have money for your family to buy assets, to be financially free, then just look at how much can you do, what you’re comfortable with, what gives you energy, and doesn’t drain you of energy every day. There’s no use in you just being a shell of yourself emotionally and physically and spiritually, and you’re just trying to make money. That doesn’t work. It doesn’t work long term. It has to be sustainable, but you have to look at what is the main goal. How can you get more per deal, a hundred percent, and if you’re going to make the decision to hire somebody, how has your leadership skills and how are you going to be comfortable being financially responsible for people. Those are the important things. And you’ve got all that. I’m not worried about you. I’m just talking to everybody out there. Everybody is a little bit different, okay? Some people-

Tom:
Brent, can I add to that?

Brent:
Yep.

Tom:
Can I just answer that for once? I just want to say something. It’s like, “Isn’t it incredible that we’re having this conversation and we’re even entertaining the idea is that dollar amount enough and what are your goals?” I mean, because if you just think back for a second, right?

Brent:
Yep.

Tom:
I was literally like, I was going through a bankruptcy. I got fired from my job. My wife is crying because she doesn’t want to buy groceries because he didn’t have enough to pay the mortgage and we didn’t want to lose our house. We had already gone through one foreclosure. Now we were going through a bankruptcy. I was cutting lawns in Florida, and I do not have the body type to be cutting lawns in Florida for income. It was a nightmare. And literally, as I’m on this, I’m just smiling because I’m hearing these numbers, and I have these hummingbirds and they’re all on this feed right behind the camera. I’ve got to get the sun. And the sun is setting, and they have these really colorful throats and [inaudible 00:36:23], and they’re like shining in the sunlight. I’m like, “What is going on right now? This is the greatest business in the whole world. I love it.”

Brent:
Yep. Yep.

Tom:
It’s crazy. Oh, my God.

Brent:
You’re absolutely right. I mean, it is. And I just had Trick’s on the Wholesaling Inc podcast. He just closed the $17,000. Yeah, I mean, he’s got the momentum going. He’s just wants to keep it going and, and he’s serving our country. So we thank you for that. And just incredible. But did that give you every single angle of that question that you could possibly ask for?

Trick:
Yep. I am.

Tom:
I am.

Pace:
Hey, Trick, can I… I do want to give one piece of advice, something that we struggled with that I feel like we’ve really perfected in the last six or seven months. Hiring and training and onboarding acquisition managers can turn into a full time job because if you hire them, even if they’re the right person, what happens if their wife gets pregnant? Or what happens if life happens? You got to replace that person. You need to record what you’re doing right now. If you’re not making videos about your own business, I would invest in Loom, L-O-O-M. So you can record yourself doing work on your computer. I would use trainuil.com, so you can talk to people and onboard them without you even being there. And you just say, “Hey, here’s 35 videos of exactly how to be an acquisition manager in my business. When I’m not available, go to these videos.” That’s what myself and Cody Barton, my partner, did is we systematized our onboarding process. So now when somebody gets hired, they’ll go watch 30 videos, and then they have one or two hours of onboarding face-to-face before they hit the phone. It doesn’t take time off of our plate.
So, what Tom was talking about earlier. So many people, what they do is they remove themselves rather than replace themselves. They remove themselves from what’s working and they go work on the shiny object stuff, and the things that we’re working they’ve completely removed any work. And so what you need to do is replace yourself, not remove yourself. And the way to do that is by onboarding videos, training, and a system that will allow you to do it without having to physically do it yourself every time.

Brent:
Replace, don’t remove.

Jamil:
Yes.

Brent:
Phenomenal.

Tom:
One quick point. Pace, just brought up a really good point. He just reminded me of something. Pace, this is so key. Drick, this as the key, also. Personality tests, no matter what you’ve heard, are not good indicators of who to hire, but they are awesome resources on who not to hire. So one thing you could definitely look at. Yeah, when you want to go through those, Tony Robins has ones that is based on that program he teaches, and there’s a few some of them are free online, but a personality profile test and high-D and low-Y and all of that, great indicator of who not to hire. That’s a great way to just say, “No. Not a good thing.”

Pace:
I don’t know how you guys do this, but I saw this get popped up and it sounds like the ability to scale. Tom’s advice was primarily talking about replace yourself with an acquisition manager. So, how do you guys pay your acquisition managers?
Tom, do you have good advice [inaudible 00:39:39] the students? Or, Brent, do you guys tell your students, how she has pay your acquisition managers?

Brent:
Yep.

Tom:
No, go ahead.

Brent:
Well, I’ve had one acquisition manager that’s been with me for over three years, so I just pay her more. Things just go a lot smoother and she’s a killer, and then when they start out 10%. Typically, what I’d have to do is do a base when they’re starting out for the first 90 days, 2,500 bucks, because it takes some time to get things rolling. So I did a base of 2,500 bucks, and then when they close something there, they pay the 2,500 bucks back and then get 10%. You know what I mean? They wouldn’t actually pay it back, but you guys get it.

Tom:
Just going to say it’s funny to… When I was broke, I would have given somebody like a big base salary. I was like very generous that way. The more money I make… I used to think that wealthy people were cheap, but what I really learned in the past few years is that wealthy people are really good Stewards of the money that God blesses them with. So it’s not that they’re cheap. It’s that they’re paying attention to what they’re doing. They’re not sloppy right with their money. Well, I always like commission only, bottom line. I don’t care if you’re my director of marketing. I don’t care if you’re my director of whatever, all these different people. Almost everybody who works with me at any company I own is almost always compensated with commission only. It’s specifically to acquisition managers. This has to do a lot with the average-sized deal that you’re getting, and whether or not this person has a relative or not. The bottom line is I was doing 20%.
But what I did at first is I flooded our company with so much marketing, and even while he was in training, I was giving them that percentage, even though I was really doing the work. And I did that too, because I wanted to, one thing, to draw down on paper, but it’s another thing when now all of a sudden you have a $50,000 whatever checker, or month, for wherever you’re at and you have to take out 20% or 15 or 10%. Yeah, I like commission only. I know some people also do a draw. I don’t really like draws.
And the only other thing I would say is to make sure that you get with a real estate attorney in your state because how you compensate… And guys, let me say this. If you’re brand new, the only people making fun of attorneys are poor people. You never hear wealthy people making fun of attorneys. I know people who are worth a hundred million, 200 million, 600 million. I’ve never heard one attorney joke out of any… As a matter of fact, when I go out to dinner with them, usually there’s one or two attorneys sitting at dinner with them. So get a good real estate attorney. Ask them any question about this, but especially competent acquisition managers because you want to make sure that your AM is not acting like a broker. They don’t have a license, or [inaudible 00:42:16] corporate [inaudible 00:42:17] LLC, or how do you do that? But yeah, just a side note. It’s make sure you have a really good real estate attorney because rules or regulations are different in every state, which is so key.

Brent:
Awesome. All right. Can we get Ryan on here?

Jamil:
Yeah, let’s bring him up.

Tom:
Yeah. Ryan.

Ryan:
Yo, what’s up guys?

Brent:
Hey, welcome to the Wholesale Hotline.

Ryan:
Appreciate it. Thanks for having me.

Brent:
What question do you have, buddy?

Ryan:
All right. This one’s pretty vague. It’s open for all of you guys. If you guys had to pick one marketing channel to go in to get some deals, what would you guys go with?

Tom:
I know what mine is.

Ryan:
I mean, it can go direct-to-sell, or it can go Jamil’s model, or it can go with other investors, but I’d love to see what you guys had to say on that.

Jamil:
Awesome. Awesome. Thank you, Ryan is actually one of our mentors in our AstroFlipping program. Actually, he’s done an amazing job over the last 18 months growing his… He’s a retail agent, who has grown a wholesaling vertical within his business and has added tens of thousands of dollars of revenue to his already existing retail business through wholesaling. So congrats Ryan for all that success. And I’ll start that answer if that’s okay, Brent.

Brent:
Yep.

Jamil:
Personally, I really truly believe that the most benefit that you can have is the long game. And so I’m a little different than the cold-caller, the texter, the direct mailer. I have always played the long game. I have always doubled down on relationships. I think that I could do, and I’ve done, 20, 30, 40, 50, or 100 deals with the same person over and over and over again. So I love referrals. I’m going to say that referrals are the best way. They’re evergreen. They will keep you in business for a long, long time. You don’t spend money to get referrals. All you have to do is a good job.

Brent:
Love it, Tom.

Tom:
Yeah. So here’s what I would say. This is the most true, Ryan. I can tell you, this is all of the men and women who came before us have already told us this. There’s nothing new under the sun. There’s nothing new that we’re talking about here. Everything is a hundred percent proven and already done. We’re just on journeys of paths that other people have already taken. And the real true answer on this question is whatever you think is the most effective channel is just exactly like your marriage or the relationship you have with your children, whatever it is, it’s all going to be based on your belief system. I can tell you that I know that sounds like a really cheesy answer, but after 10,000 hours of coaching literally thousands of people, I will have people will say X, Y, and Z, and A, B and C.
I can tell you for me personally, I love, love, love, love direct mail, and I especially love direct mail when… direct mail is kind of seasonal. Everyone’s like, “Oh, direct mail is so great.” And then people are like, “Oh, it’s so saturated,” even though that’s just an emotional response. It’s not really based on real data. But that’s what I love to double down even more, right? Is where people are like, “Oh, direct mail is really hard right now.”
I love direct mail because it hits all of the points of marketing for me. It’s not people-based. So when I outsource, and I don’t have to outsource it to people. It’s just a system. I love direct mail because it’s scalable really quickly. I love direct mail because I can always reverse engineer it. So if I want to buy something, I am literally in my brain always calculating how many pieces of direct mail do I need to… Ford is coming out with a new Bronco. I was watching a video on this new Bronco that’s coming up for 2021, so I could go off-roading. My immediate calculation is, how many postcards do I have to send out in order to get that Bronco. So I love it because it’s very reversible. It’s very trackable. If I want to slow down, I can slow it down. If I want to keep momentum going and increase it, I can do that. So I love direct mail, especially when it seems to be out of season, which is my favorite time.

Ryan:
For sure.

Pace:
If I’m by myself, I have no other business owners, no partners, no employees, 100% of my time would be spent on probate attorneys and referrals from them. In fact, Jamil and I are working a really good one right now. Shout out to Jamil. Thank you so much.
Probate attorney refers the deal to me. I solved the problem for the seller that nobody else can solve. The probate attorney referred the deal to me. So the seller stops talking to anybody else because I was referred to them by the probate attorney. I then had Jamil seal the deal off. We all make money. And I had zero marketing dollars. Like Jamil said, I only had to do a good job. Now, if I am building and scaling a business and I need to spend money on marketing, which is probably where your question’s really coming from, I would primarily text message Mobile Homes.

Ryan:
Appreciate that.

Brent:
Love it. Yeah, Ryan, I would find the hundred worst ugliest houses within a five mile, maybe mile radius, depends on where you’re at. I’d write them all down. I’d go to bed, skip tracing, I’d spend $15, and I just start to hand-dialing all those people that… The hundred ugliest houses I would hand-dial them. And for $15, I would turn it into 15, 20, 25, maybe 50 thousand dollars, right now before any of you guys got a deal. Bow!

Ryan:
I love it. Love it.

Jamil:
Make sure you are using the cold squad, all right? Make sure you’re using the cold squad. Flipman, you’ve been pretty silent over here, but everybody wants to hear from you for a quick sec. What’s your favorite marketing channel?

Flipman:
Well, I always like to take it from the culture that someone doesn’t have any money or very little money, that they…

Speaker 2:
If someone doesn’t have any money or very little money that they can come up with and then also I take in account that everyone is not as extroverted as a lot of you guys are. Right, I hope. [crosstalk 00:00:17]. You simplify it for yourself by getting people to call you. All right? So like I always say, all of this stuff works, you just have to be consistent with it. But if I just had to just recommend someone spending between $300 to $500 on a set of Bandit Signs. That’s why I’ve got to cut my [inaudible 00:48:41] gold to pay, because they’re so inexpensive and the return could be unbelievable if it’s done correctly.
But it’s an ongoing thing, all markets are not equally designed to play science, so you got to be concentrated with it. But like I say, I always take it from the point of the person that may have the least, skills or resources to succeed. So we’ll go with getting people to call you. Being able to reach a lot of eyeballs, just for a mom, just one method or whatever. We just had to go with that. So Bandit Signs, I would recommend.

Speaker 3:
I think everybody knew you were going to say Bandit Signs, the comments are blowing up with you where everybody’s saying they learnt Bandit Signs from your YouTube channel.

Speaker 2:
Yeah. Appreciate that. [crosstalk 00:49:29]

Tom Kroll:
You know what’s amazing about Bandit Signs, Bandit Signs have one of the highest… Everybody always says that internet needs like SEO and PPC have the highest conversion, I have found from my coaching that my students who do Bandit Signs have the highest conversion, hands down. If they’re allowed in a city where you can do them, but bar none Bandit Signs… if you get called for a Bandit Sign, that person is selling their house today. There’s no doubt about it. I agree.

Brian:
Awesome. Can I ask you another question? Is that allowed two questions?

Brent:
Yeah, [crosstalk 00:49:57].

Brian:
This is a fun one. So I guess when you get to the point where you’re doing some deals and you’ve got enough capital built up, at what point do you consider partnering up with people and where does it make sense? I know some of you guys have partners.
[crosstalk 00:50:11]

Speaker 3:
We’ll let Brent answer that.

Brent:
No, no let Tom answer that, Tom taught me.

Tom Kroll:
Well, there’s only one kind of ship that doesn’t sail. That’s a partnership.

Brian:
We got a good diverse group here.

Tom Kroll:
Yeah. There’s absolutely no reason to partner in this business because typically partnership is based on a lie, which is: I’m not good at this and they’re good at that; and I’m good at this and they’re not good at that. The reality is this business is literally so simple. If I could do it, anybody can do it. So there’s no reason there’s no benefit to partnering because now there’s partnerships and then there’s partnering. Where you say, if you’re really broke and you’re just starting and you say, Hey, this person has money. Can you pay for my marketing? And I’ll give you first, right of refusal on all of my deals or I’ll give you 50% of my revenue from that campaign. That’s different, but I’m talking like shared LLC in the same company partnership. I have never seen it work. Never!
Now I will say I have about five examples of people where it has worked, where people have gotten together, especially with wholesaling and partnership and it worked. Typically four of those five were husband and wife, and one was a pair of siblings. And what is interesting about those five that did work is that in every single case, the partner could run the business 100% without the other one, but I’ve never seen it work between friends and I’m talking a ton of examples. It just doesn’t work. It’s like this business is, it’s such a short sales cycle and it’s really such an amplification of who you are. We’re not running Fortune 500 companies. So it’s such a short sales cycle and it’s such a reflection of who you are as a leader. And I just don’t see it having… For me, I don’t like to reinvent the wheel, right.
So one thing I’ve learned is I came in and my stepbrother, my older brother, Todd Toback, taught me. And he was telling me about partnerships that they’re not good. And I haven’t seen it work. The people who tried it have failed at it. There’s also a lot of cash involved when they’re successful in a very short amount of time. And if there’s any little cracks or flaws that will kind of crack that open to a lot of times partnerships work because people don’t make any money in other businesses, right? So you start a restaurant. It’s a great partnership business, right? Because you’re going to be broke for about five years and go out of business and you guys can shake it, stay friends. This is not that kind of business, hopefully. So I think that’s another part of it too.

Brian:
I appreciate that.

Brent:
You thought I was bad. [crosstalk 00:52:41]

Speaker 3:
Well, I think I’ll go next. And then you can hear the opposite side of the coin from Brent again, and maybe the other side from Pace, but Ryan, you’re familiar with my partnership. It’s one of the most healthy partnerships I’ve ever been into my life. One thing that Tom mentioned, which was interesting is that it works when they’re siblings sometimes, and one of my siblings is one of our partners at KeyGlee. The other thing though, that I have to say is that I think that it, again, it goes into what’s inside of everybody’s heart and intentions when they’re getting involved with one another, right? My two partners, Josiah and Hunter, I don’t believe KeyGlee could be KeyGlee without them.
If it was just my sister and I trying to grow this company to a point where we franchised it and went national, I couldn’t see it happening. We absolutely need the leadership and vision of Josiah. We absolutely need the systems, the efficiency of Hunter. We absolutely need my sister’s construction and understanding of numbers and her initial investment that got the company off the ground. And we need my ability to comp so and buy houses. And all of us brought our pieces to the table. And with that, we’ve put together something magical. Now, again, it’s magic and magic doesn’t always happen with the same ingredients you need that spark, you need that piece.
And I think the other thing that we all have that shared is a faith, right? We’re not in a partnership with each other. We’re in a spiritual partnership, right? We have 100% [inaudible 00:06:22]. We all believe that God is the foundation of the partnership. And in that we are all tools to help each other and to make it grow. And so, I don’t know I do believe I’m in a magical situation and I believe it’s blessed by God. And maybe that’s, what’s the glue that’s binding us together, but that’s my answer.

Ryan:
I love it. And I think that Tom and I are similar in this because we don’t have any plans or goals of franchising and growing this to potentially a Fortune 500 company, right? We don’t have plans on owning 1500 doors like Pace. We just have different plans in life. Right. And because of that, when you ask about the wholesaling business, you can, without a doubt, hire people for the roles that you need, right? You don’t need a visionary. In my opinion, you don’t need a visionary in this business. The book Rocket Fuel for a small, one location, wholesaling company is ridiculous. It’s ridiculous.

Speaker 3:
Yeah. I agree.

Ryan:
The visionary and the integrator in all that, it’s absolutely bananas if you’re doing two to 10 deals a month. Okay, now you you want to take it over the top, like Pace and Jamiel and Cody and Hunter and Josiah. Absolutely. I get it. But if you’re just talking about a wholesaling business and you’re just starting out, the biggest weakness that I see is you get a partner that’s not going to pull their weight and you’re spending 70% of your effort looking over your shoulder, hoping that they’re working as you’re grinding the phones every day, as you’re responding to texts every day, as you’re doing all this.
Listen, if you’re going to have a partner because you need some support, I totally get it. But just have a plan that says, Hey, once we make our first million dollars, let’s sit back down and see if we still want to do this partnership. Or if we want to just do our own business, that’s the way that I think from a wholesaling business standpoint. What you guys have is totally different, so I get it and I support your guys’ partnership. And I don’t give you guys too much shit about it, but that’s how I feel.

Tom Kroll:
Let me just clarify, Ryan. My students normally are just starting out or just on a few deals. And sometimes out of the wrong reasons, they will get a partner right out of the gate because they think that they’re less than, right. I’m not good at this, so I’m going to bring in a partner, but they just need to have the courage to have the conversation, to hire somebody and not to escape to a partnership. And typically I think when it’s done that way, but I totally agree. Yeah. If your guys are going to be growing a big business, I have no business even giving any recommendation on that. But yeah, for new wholesalers, no partnerships, I don’t see them working.

Ryan:
For example, guys, I’m in partnership with Tom Kroll.

Tom Kroll:
Right.

Ryan:
We’re in business partnerships-

Tom Kroll:
Absolutely.

Ryan:
You know what I mean? But it’s not in our wholesaling business, it’s in the coaching. Right?

Tom Kroll:
Right.

Ryan:
So, I mean, I’m playing both sides of the line here sitting here with one of my business partners, you know what I mean?

Tom Kroll:
Well, [crosstalk 00:57:31] so that’s what’s up.
Well, I’ve got an opinion cut down the middle because I’ve got a lot of business partners in the past, were just a mirror image of myself, right? It’s people I liked hanging out with. I wanted a sounding board. I think that’s the biggest challenge is people want a sounding board to be around. They want to bring on somebody that can hang around, right? Not somebody that actually adds benefit to their business. So I told one of my students in my subtwo.com program, Ryan ironically was his name. I won’t say his last name because he’s probably watching. I roasted him for a good hour and a half in front of 200 other students in a very positive, nurturing, loving way because he wanted to partner with his brother in a wholesaling business that is only doing two to three deals a month. So I completely agree with Brent and Tom here.
I also think that Jamiel agrees too, because when I first started hearing about Jamiel, Jamiel was the biggest wholesaler without anybody even knowing who he was, right. He didn’t have partners, he didn’t have an office. He is proof that you can do 15, 20 deals a month all by yourself. But when Jamiel wanted to scale and elevate nationwide, he did need to go to the Walt Disney model, which was, you need a partner. Walt Disney would have failed. Disneyland would have failed without Walt’s brother. Same thing with McDonald’s and Ray Kroc and all these stories. There is a point where you do need somebody, that the trust is not somebody you can hire. You cannot hire that level of trust. You have to partner with them so you can close your eyes, go on vacation for three months, hand the keys over, come back. And the business is in good shape or better than when you left it. That is a real partnership.
And I can tell you, Tom is right. It is very rare to have that level of partnership. Jamiel has it. I have it. Funny thing is Cody Barton, my partner is going on Steve Train’s show this coming Wednesday to talk specifically about what he does in our partnership that brings value that is the opposite of what I bring. So anybody that wants to hear that, take a look at Steve Trains, Real Estate Disruptors this Wednesday, 2:00 PM. But honestly, I couldn’t agree any more with every one of these guys.
It just depends on who you are and what part of your business you’re in. And Ryan, if you just want to wholesale, I think Tom and Brent are a hundred percent, right? You can build that all on your own, but if you want to wholesale 15 plus houses a month, fix and flip, accumulate a buy and hold rental portfolio, you want to do all that stuff. I think you really got to start dating somebody and Cody and I dated for six months before we sat down and said, should we partner on an LLC? Or should we just continue to JV? We had the dating period before we got married.

Speaker 3:
Yeah. [crosstalk 01:00:20] I dated Josiah and Hunter for a year before we tied the knot. So-

Brian:
I think that’s a huge nugget right there. [crosstalk 01:00:27]
That’s all I got. I really appreciate that. And I definitely did not mean to stir the pot on that. [crosstalk 01:00:33] I just needed diverse answers on that. So I appreciate you guys. [crosstalk 01:00:37].

Speaker 3:
Brian, you’re the man.

Brian:
Appreciate you guys.

Brent:
That’s good. And I think you guys, it comes down to self-awareness, you know what I mean? Some people just don’t like doing things by themselves. I didn’t for years and years, I always came from team sports, I always wanted to share it. I wanted to do it. I mean, pace, you share way… I mean, you’re just the most sharing in business owner I’ve ever met ever. I mean, you’re just giving it away and giving it away and giving away, not financially, but just a lot of your time and a lot of your efforts and everything going on. I think that that’s great. You know what I mean? Find out what is giving you energy. If being in a partnership is giving you energy, stay in a partnership. If reading Rocket Fuel gives you energy and you’ve done one wholesale deal , read Rocket Fuel every day, read the book, scale up, read all these big time books if it gives you energy. But if it’s just distracting you from taking action and helping people in your community get out of bad problems, you’re wasting your time.

Tom Kroll:
You got to know where it comes from. You got to know the seed. You got to know if you’re in a… It’s just a regular relationship. If you’re needy and you’re not a full developed person yet, you’re not going to be a good contribution because partnerships that you guys.. I’m sure Pace will say this and Jamiel is going to say the same thing, which is, it’s a 110% and a 110% for each person. It’s not 50/50-

Ryan:
I 100% agree with that. 100% agree. [Crosstalk 01:02:08]

Brent:
Can we get Cody in here, there we go. Cody, you there buddy?

Cody:
Yeah. [crosstalk 01:02:14].
What’s up guys?

Brent:
He’s got a great question. He texted it to me this morning and I thought it’d be great. I know Tom has answered this question a lot and I think Jamiel’s probably the most qualified to answer this out of everybody. So go ahead, Cody.

Cody:
Yeah. So when it comes to knowing your market, what does that entail? What else should I know? Because I’m in the Kansas City market, it’s a big market. There’s a lot of cities I’m trying to see what do I need to know about my market to be the most successful?

Jamiel:
Well, I think first off, population is super important. You need to know where are the wholesale deals happening? Where are people trading? Where are they fixing and flipping properties, are there opportunity areas? Are there places that are more highly gentrified than others? You really need to pay attention to that. The next thing I would understand is what’s access to private money like, right. Am I in a judicial or a trustee state? Are hard money lenders prevalent in my market or do they run away? Is it tough for hard money lenders to play in my area? The next thing I would look at is what type of transaction type, am I looking at attorneys? Am I looking at title? Or am I looking at both? What’s the ease of transaction style, right? The next thing I would want to look at is how many cash transactions are actually happening in my market.
I would want to pull some data and I’d want to find out how many cash buyers are actually closing, how many private money transactions are actually happening. From the data points that I just gave you there, you should be able to very, very quickly get a great understanding of the market you’re in. Beyond that, what you’ll want to learn about, are the nuances of your market, right. Every market is going to have specifics, little nuances or idiosyncrasies. Like for instance, in Arizona or Phoenix specifically, we have historic districts, we have suburban zones, we’ve got opportunities zones. We’ve got areas that are high traffic, high actual car traffic, but that doesn’t affect it. There’s other areas where traffic tanks it. Right? And so you then need to learn the little details, those little idiosyncratic details of the market. But I think that those small details become second to those major pieces that I discussed earlier.
I think beyond that, anything else that you’re really looking at probably isn’t super crucial. You just need to know where are people doing deals and how are my buyers going to access money?

Brent:
And I think [crosstalk 01:04:46]. What are the two states? Is it Kansas and Illinois that you need a license now?

Jamiel:
Yes. And I’m sorry, Brent. That’s something that I should add to that at this point now. And it’s going to get more and more and more, right? This licensing requirement is not a small blip in this business, guys. This is the trend. This is the trend where we’re moving towards that in the future. And so I would pay attention to that. I think it is Kansas and it is Illinois right now. But as we move forward, I think within the next few years that’s going to be more and more prevalent all across the United States.

Brent:
Does that answer your question Cody? Oh go ahead Tom.

Tom Kroll:
Jamiel really hit this on the head, but to me, there’s two things about a market when it comes to wholesaling specifically, there’s really only two things. Number one is geography. As far as population, there’s only two types of problem markets when it comes to wholesaling, there’s the whole entire population. And then there’s either a super, super, super concentrated amount of people in a small amount of area like Los Angeles or Manhattan or you have the exact opposite where there’s almost nobody in a big wide geography of a very, very spread out small population like someplace in a farming town in Oklahoma, right? I’m thinking of a student, Tiffany I had who I always think of. So the first thing you have to look at it, you could pretty much have a million dollar business at anywhere in the middle. There’s a few other caveats, but the biggest problem that you’re going to have, or the biggest challenge is going to be the concentration of the population over the geography, right? So if it’s super concentrated or super diluted, that’s going to be pretty much very difficult to do business in.
The second thing is to cut through all of the fat, just sort your County by zip codes where the most cash transactions are, are taking place. And one thing that you’ll always notice between people who are struggling financially and people who are very wealthy is… And I was just on the phone with somebody who’s extraordinarily wealthy and we’re going into a new thing. It has nothing to do with real estate. It’s about royalties.
And the first question he asked was, well, who else is doing that in that area? Because wealthy people look for other people who are doing this, right? This is old knowledge from four or five, 6,000 years ago, is that you want to go where other people are doing what you want to be doing, where they’re providing your product or they’re providing your service. Right? But poor people or struggling people, what they always look at is they say, “Oh man it’s oversaturated.” Right? You ever hear this word from a brand new wholesaler, right? It’s oversaturated, there’s too much competition. There’s too many people, no such thing. Right? You want to go, there’s a reason why there’s a Lowe’s that opened up next to every home depot.
There’s a reason why everybody who sells diamonds goes to the diamond district to sell their diamonds. They can go and sell diamonds anywhere. Right. But why do they all concentrate in the diamond district? There’s a reason for that. So I would say that you want to go right into somewhere middle America, where you’re not super concentrated on density of population in either direction or it’s too diluted. And then you want to go right into the hottest zip codes where their most cash transactions are taking place, because really that’s going to be the biggest indicator of there’s a market when there are deals happening. People are buying for cash.

Cody:
I love it.

Brent:
Good?

Cody:
Yeah.

Brent:
Awesome. There you go, Cody.

Cody:
Yeah thanks for Brent.

Brent:
And I think it’s important. Let’s talk about this a little bit because we lit a fuse when it came to getting licensed. Right? And Tom, we’ve talked about this a lot because obviously we coach around the country, Pace and Jamiel coach around the country. This is something that’s going to come up and I think it’s important.
Listen, the business is the same. You can still source real estate opportunities. There’s just going to be some differences. You’re either going to have to get a license or you’re going to have to buy these properties. What other option is there?

Brian:
Wait, what if I am partnered with somebody who’s licensed?

Jamiel:
You can partner with an agent, but let’s dissect this a little further guys. So what they’ve done in Illinois is sure I can partner with somebody. But if I have traded more than a certain number of properties as the principal in that area, regardless of whether or not I’m taking title, they are going to require a license. They are going to require a license. So it doesn’t matter if I take title it doesn’t… Brent, you can’t even get around it by just saying, “Hey, I’m going to actually buy this and then resell it.”
You actually have to take title. And I think that as wholesaling gets in this… Look, guys, this is one of the most popular niches in real estate investing that I’ve seen. Today as more and more people get into this business, there’s more and more people that understand it. And there’s more and more people actually go out and try to solve problems for folks. This becomes more mainstream. The more mainstream this becomes, the more people are going to want there to be some form of regulation. And I think that’s just that part of doing business.

Tom Kroll:
Here’s what I could add to this. This is so key, is this is an area where you just got to be simple and brain dead. Once you start to do different things and you start to learn from different people, you see people who are where you want to be and people who are not where you want to be. And one of the things that I found early on is the people who are not where I want to be are the people who play games with taxes, right. You ever meet these guys, they usually have a certain look about them. And they’re like, “Well, if I don’t pay my taxes on time and I could make an extra point on interest by lending out the money.” And they talk and talk and talk, and then they have a $500,000 tax bill and they’re out of business.
So here’s the best advice when the regulators and the attorneys and the only person you should be talking to is an attorney. And none of us, because none of us are qualified to give you an answer, especially in other States that we don’t even live in. So here’s the best advice: find out what the regulators like and don’t like, and do what they like, do what they want you to do. Because when you do that, you are going to have confidence to grow a big, beautiful, thriving business. And when you try to skirt and you try to hide and cover up and conceal, and you try to ask the head of the REIA meeting at the water cooler, the best way to structure a deal so you can get around a law. You are going to have a very weak job instead of a very powerful business.
And the best news of all is when Illinois says get a license; get a license, because what they’re doing is they’re shaking the tree and everybody’s falling out because there’s no way I could get a license. Even though getting a license is so simple, right? Because if you could wholesale, you can get a license. So just find out what the regulators want you to do and do what they want you to do. And it’s really that simple, like wholesaling. A lot of times people think it has to do with assigning contracts. Wholesaling has nothing to do with the real estate and it has nothing to do with the signing contracts. Wholesaling is the art of consistently finding discounted properties. If you can get good at finding discounted properties, just do what the people in charge want you to do. Have a simple, easy life. Don’t play games, especially with government agencies that have more money that you could ever acquire in your entire lifetimes.

Tom Krol:
More money than you could ever acquire in your entire life times a 1000, because you’ll just be going in the wrong direction. So that is the best advice I think I could give you, is find out… Get a real estate attorney, find out what regulators want you to do and not want to do, and then do exactly what they want you to do and don’t do what they don’t want you to do. So if they’re saying, “Hey, we’re telling you get a license, get a license.” Just get a license. It’s easy. I’ve met people who’ve gotten a license like… If they can get a license, you can get a license, if you’re watching this. If you know how to get this webcam to work, you can get a license.

Brent Daniels:
You can get them in 10 days here.

Jamil Damji:
Yeah. I mean, it’s like a getting a driver’s license. It’s not like… Guys, it’s not rocket science, right? This is real estate. I know a lot of barbers who are also realtors.

Tom Krol:
Right.

Jamil Damji:
It’s really not difficult to do, and I love that qualm. If you find yourself doing gymnastics to transact, don’t do gymnastics.

Brent Daniels:
It’s not sustainable.

Tom Krol:
Especially my body type. There’s no way the Pillsbury doughboy over here-

Brent Daniels:
Come on! You’re beautiful.

Jamil Damji:
We got you two guys up there on the top, in shape looking swell. And we got Tom. Tom you know, I know you’re in shape, you look great. [Googman 01:13:12] and I over here, just yo… Had a whole fried belly full of calamari for lunch today. So we’re all…

Tom Krol:
Oh, it sounds good.

Jamil Damji:
Yeah.

Tom Krol:
The calamari is not that fresh up here in the mountains, but we’ve got trout which is great.

Jamil Damji:
It’s not fresh here in the desert either. We just don’t care.

Tom Krol:
That’s great.

Brent Daniels:
So Pace, any thoughts there, bud?

Pace:
The only thought I have is that we have nearly 500 people watching on all of our platforms, live.

Brent Daniels:
Wow.

Pace:
We will probably have over 5 to 7000 people watch this in the next 24 hours. And I can tell you our podcast, the audio version, is growing rapidly. And so I want to direct people… If you want to go back and re-watch some of these episodes, save them, or maybe you tuned into a little bit late.
Tom Krol has already become one of my favorite people ever. And on top of it, he’s one of the best guests we’ve ever had on Wholesale Hotline. So if you guys jumped in halfway through the show, go check out the podcast, the audio version, you can listen to while you drive, listen to it while you work out… iTunes and Spotify, right Brent?

Brent Daniels:
Yep. Yep, Wholesale Hotline on either one guys. It’s right there.

Pace:
And if I may…

Tom Krol:
Thank you Pace, I appreciate that brother.

Jamil Damji:
You know, guys, Tom Krol as you can see, is out enjoying time with his family. The sun is set where he is. He’s in the woods. He took the time out of his evening, away from his family, to join us and drop all of his experience, his knowledge, his energy, and smiles, and guys, I mean, typically it’s Brent, Pace, and myself and you guys like us, but we all look up to this guy, right? We all look up to Tom and so, do us a solid and please, please, please share this on your IG stories, share this on your Facebook.
Let Tom know how much you appreciate him. How important it is that when we have guests like this, that we honor them and that we let them know what they mean to us. Please guys take a picture of this and share it to your Instagram stories so that he can see just how grateful you guys are.

Brent Daniels:
Tom, can we take this to the next level real quick in the last 11 minutes.

Tom Krol:
Yeah, let’s do it.

Brent Daniels:
Okay. This is where I want to take you.

Tom Krol:
Thank you guys. I’m honored, thank you.

Brent Daniels:
Let’s assume that people watching and listening to this are going to take action. They’re going to build a business. They’re going to be successful. They’re going to make more money than they ever imagined.
Tom, do you have any, I guess principles that you would talk about on what to do with your money so that one, you can continue to increase in your happiness and your gratitude and your love and your… I mean, we get one shot at this, right? You know what I mean? What do you do with your money basically? What do you think people should do? What do you think are some principles that’ll really help people that are listening that once they get to that point, there’s something there. Because we see the Lambos, we see the big mansions, we see the whatever, vacations, or the watches and the chains and all that. And everybody’s different. Everybody. If you’re fulfilled from that, if that gives you that energy, great. But just give us another perspective on that. And lets kind of chat just between the four of us.

Tom Krol:
So first of all, I will tell you this is what I know for sure in my life that will help you right now. Number one is that, before you even worry about what to do with your money, just how do you make it. And I will tell you, I don’t care what your gender is. I don’t care what your sexual orientation is. I don’t care your age, fitness levels, skin color, nationality, accent, it doesn’t matter. I will tell you guys this right now. The only commonality between the people who are uber wealthy, the only commonality, the only single thread that runs amongst all of them internationally is this: every single one of them read. Every single one. Every single person on my personal cell phone who’s worth a hundred million dollars or more. Do you know what they send me pictures of? Books that they’re reading. Pages in the books. Quotes in the books.
So, I don’t care what your teachers or guidance counselors told you. Unless you are literally inable to even read a street sign, pick up a book and commit to reading 10 pages a day, every single day, because I’m telling you if you want to make money, every single person I know who’s where I want to be reads. Every single one. Not audible. Not listening. They all read. That’s number one. Number two is I have something that I came up with for my money, which I came up with reading a lot of books of men and women who came before us. I can tell you, some of them was The Simple Path to Wealth, Dave Ramsey’s book I read. I read The Richest Man in Babylon which is one of my top ten favorite books of all time. Everybody should read The Richest Man in Babylon.
And I came up with my own personal thing, I call it T4 Finance, and T4 Finance is very simple. Number one. So every time you make a dollar today, the first 10% goes back to God. It doesn’t belong to you. If you take that money, you are stealing. Make no doubt about that. You will not be blessed and God’s going to get that money one way or another. So you might as well give it to him and be blessed because it’s going to him. And it says this in chapter three, verse eight of Malakai. It’s the last chapter of the Old Testament. It says, if you’re not giving that money to God, that you’re stealing. It also says that… some people says that it’s not in the New Testament. It is. It’s in Matthew, chapter 23. But you’ve got to give it. You can give it to your church. You can give it to your temple, your mosque. You can give it to charity, to poor people, but that money does not belong to you. Make no mistake about it. That 10% is not yours.
Number two, is figure out your tax bracket and immediately, not tomorrow, not in April, not later on, immediately pay the government your percentage in tax. Immediately. That’s the second T. So the first one is Tied. The second one is Tax. The third one is pay yourself first, because now it’s your turn. Every wealthy person I know from 6,000 years ago to people I know today, people I’ve read from all the way to Stoicism to the Bible times, pay yourself 10%. So the next money is your tomorrow money. So you have Tied, you have Taxed, and you have Tomorrow. And then the last T is Take. That’s today. You just, you can take the rest. And if you do that, you don’t need a silly budget. Budgets are ridiculous. Especially entrepreneurs, there is no way that an entrepreneur can live on a budget. It is absolutely impossible, unless you’re an engineer you cannot… Or a CPA, or whatever. So it’s Tied, Taxed, Tomorrow, and Take. And if you do that, you will find financial freedom.
The Tomorrow money, the way I divide that 10% up is into four different categories. It’s cash, 25% into the cash. 25% into the stock market, 25% into physical gold, and 25% into real estate. You can play around with those numbers, but I will tell you guys that if you… Any plan is better than no plan, and if you follow that plan, it has worked for a lot of my students. It’s worked for me. It’s very, very simple. It all comes from people, men and women who’ve come before us. A lot of people, they spend so much time trying to figure things out, but there’s nothing new under the sun. Everything that we’re doing was already done. There’s nothing new. This all is advice. None of it comes from me. It all comes from people who came before us. So, that’s kind of how I allocate my funds because I know I can’t live on a budget. Because if you start giving me tons of cash, I’ll be going crazy with it. All with new adventures and new ideas, and I’ll whip out my ‘someday maybe’ folder and I’ll start implementing all kinds of crazy stuff.

Brent Daniels:
Pace.

Jamil Damji:
Love it.

Ty:
Bam!

Pace:
I’m going to give you two things to live by that I learned from Tom Krol. How about that?

Brent Daniels:
Woo!

Pace:
I think I’m learning this also from Brent. Brent when I saw you today coming in from the office, we actually bumped into each other and you were coming from where?

Brent Daniels:
The gym.

Pace:
Right. So I know it’s a little bit different for what Tom does, but Tom takes a little bit of a break in the afternoon. You take a break in the afternoon. So you guys work hard in the morning, you take a break, you work a little bit in the afternoon as well. I really like that. And I’m starting to implement that in my life. I’m adopting it with my second piece of advice, which is, love on my wife as much as I possibly can and that is something that when you see Tom around his wife, and… it is so magical. You can see and feel the love. You can almost swim in the aura essentially, and I feel the same way when I’m around Brent Daniels and I feel the same way when I’m around Jamil. They love their significant other. They treat them like their partner, their equal, and it is so fun to all get together. So those are the two things I’m currently working on right now.

Brent Daniels:
That’s perfect because you know how to lose half of what you got right now, right? Is a divorce.

Tom Krol:
Half? That’s if you’re lucky!

Brent Daniels:
Right, no I mean honestly…

Tom Krol:
That’s so true, yeah. That’s so true.

Jamil Damji:
Before lawyers.
Yeah I mean financially, I mean you look at all this effort that you’ve put in, and all this work that you’ve done, and all the people that you’ve talked to, and all of the struggles, and the… You didn’t have security, now you have security, and now you’re financially stable and Pace yeah… We talked about this. I don’t even like coming into the office on Mondays. I’d like from Friday at one o’clock till Tuesday, being around my family 100%. I’ll do it, I mean… I’m on the phone. It’s 2020, come on I mean we can talk and text and get going and make things happen. But if you’re not taking care of what’s going on at home, then what’s the point? You know what I mean? Like my wife would… We could live in a van and my kids would love it. They would love it! My wife would have no problem.

Pace:
Are you making the living in the van reference to me?

Brent Daniels:
No, but that is awesome. No, no. I’m talking an actual van. Not a six figure, luxury RV type of thing. Recreational Vehicle. No, but I think…

Pace:
Can I mention that real quick? Because I’m leaving here in about 13, 14 days. I am going around the country and I’m visiting the TTP students, I’m visiting the Astro students, and the sub two students. Starting in San Diego, we are going to have an event with Lauren Hardy, TTP, Jamil Damji. We’re going to bring out the video crew and we’re going to get all of our students together and have a collaboration fest, and I am bringing my van out with my wife and my kids so it’s going to be a blast.

Brent Daniels:
That’s awesome. The other thing-

Tom Krol:
That’s awesome. I’m down for that too-

Brent Daniels:
What’s the start date Pace?

Pace:
I am starting not this Friday, but the Friday after. I’m leaving for about 10 weeks straight, West Coast, coming home for two months. And then going East Coast probably for three months.
And Jamil will be stopping in some of the bigger cities to love on his Astro students as well. So TTP, if we can get you out during the middle of the week, it’d be kind of cool. Maybe once in a while get you out on the road.

Tom Krol:
Awesome. Love it. Count me in.

Jamil Damji:
I want Ty to quickly answer that question, because I think somebody from the block that… He’s absolutely… I can tell you that does not… He’s not extravagant, he doesn’t spend money on chains. I have never seen him in a fancy car, but Ty’s been doing this for a long time. Ty, what advice do you got for us youngins, or not us because I’m like you. But for the guys that are here watching right now debating whether or not they should buy a Benz or… Ty, what do you think that should be?

Ty:
Wow. When it comes to just spending money, man, for me, I guess I was… It’s a little different for me because, well, you didn’t come from any money or whatever. I guess that may be everybody’s story, I don’t know. But it’s been a roller coaster. Let me just say this. When I first started, and I was making… On the job that I was on, I was a biller for BellSouth which is part of AT&T. I was making about 45,000 a year. Which in Birmingham, Alabama, that’s a pretty good living for a single guy or whatever. So most people… Back then I was in my twenties. You know, that’s what you live for is to be able to make $40,000 a year. But I’ve had a [inaudible 01:25:37] mindset for a long time. So when I discovered real estate and started making money the first year, I think I did just the wholesale fees, I did $60,000. So it dwarfed I was making, but I still was working or whatever.
So I had just got out of a relationship, sort of, when it started rolling and really though my mind wasn’t right. Or whatever. So if I was making that, I was spending it or whatever. So 2008 happens 2007 I really tossed it, and late 2007, 2008. When you going from making about 20,000 a month down to about five, it’s just like you went from like a 2000 a month to 200, you know what I’m saying? But I was, I was living like that. And so pretty much lost a lot of stuff. You know what I’m saying? Took some bare hard finances… It took a minute, right. And so I was still doing real estate, just a little bit, got into the gold business, that we buy gold thing, we’re going crazy or whatever. I was making a lot of money then. So by that time, that rolled around, I still was sort of a little loose with money and saw the deadfall.
So I had two bites at the Apple and didn’t learn my lesson. So now totally different or whatever. And you know, just a different attitude about money and time to keep it turning over. I think I’m a giving person just by you just see what I do for people online. Anytime time I get a text message from some people I’ve never even talked to them before and they just send me a picture of a check saying thank you or whatever, just from the content that I’ve put out there. But when it comes to spending money, like on TickTok, I’ve been putting a big presence out there. And I get a lot of feedback because I dress like this every day. Every day, I’m going to have on four or five shirts they going to say the same thing or whatever, hug for free, or [Bob 01:27:34], or [Gigelater 01:27:35], or [Get an S up 01:27:36]. They say, “Who is this guy, he doesn’t look like he has any money, you know you a bum”.
And it doesn’t bother me. I try to send them something. I say, well, go read the book, The Millionaire Next Door, which I’ve never really read the book before or whatever but I know what it’s about.

Tom Krol:
It’s a good book! You should read it.

Ty:
Or whatever. So if someone wants to buy the big cars around and that’s fine, you know what I’m saying? So I do… The car I drive is a luxury vehicle, but it’s a 10 year old luxury vehicle. You know what I’m saying? So it’s just really basic. Trying of spending a lot less than you spend. That is just that simple. I don’t care how much money you’re making, your goal should be to spend a lot less than what you make, is what I meant to say. A lot less than what you make. That’s just the basics of economics.

Pace:
I think one thing that Tom really put into my head is pay off all personal debts. Mortgage, car, college, anything. Any personal debts. Credit cards. Any of that, pay it all off first and then start investing. And I love it. Love it, love it. Because literally it opened up the flood gates of my earning potential. Because I wasn’t spending energy worrying and frustrating about the bills. Because I don’t have any bills. I mean, I got kids and stuff, but, I mean just that average interest payment that you’re paying.
I mean, they say the average American pays till what, like June or May? They pay to May… January to May just interest. That’s where their income’s going? And then you have taxes and then you live off a little bit and then there’s nothing for savings. That’s why 68% of Americans don’t have more than $500 in their savings account. That’s why. It’s because of interest.
And this business gives us the opportunity to make such amazing amounts of income that I would just want to scream it from the rooftops because there’s only what 500 people, maybe 10,000 people that see this out of 320 million, right? We have the advantage. There is more deals than there are people to get them. I’m telling you right now, there’s more deals than people to get them.

Tom Krol:
You know, Brent, I should’ve added that. The debt thing is so key because guys I am telling you, debt is dark. It is dark. There is a word called indentured. And that’s what it comes from a debt is really bad. The only people you see who really struggle, who are wealthy and then… It’s going to be debt, is going to be one of the number one reasons. They’re in the back of the rear room. You could go and talk to them. They’re a little bit older than us. And they’re… They always say things like you wouldn’t believe how much I used to make. You know, what happened is they didn’t pay their taxes right out of the gate. And they got into debt and the more slick and scientific the debt is the more dangerous. The more it’s like, no, you don’t understand. This is totally secure because of X, Y, and Z. That’s when you need a run! Credit card debt is a bad debt. But…
And you know, one of the things on Money Guys is that, as we’re all talking about this, don’t forget money is the least of these. Money is like… What we’ve really… If you go back and listen to this podcast, what we really all said is money’s not important. Money is only a symptom of the condition. What a lot of poor people do is they chase the symptoms, right? But you’ll never get rich chasing the symptom.
You’ve got to chase the condition that Jamil has, that Brent has, that Pace has, right? You’ve got to chase the condition that produces that. Like tithing, like reading, like focusing on fewer things, like hard work, right? So that’s really important. And also understand that money is a game. Once you win, you can stop playing the game. There is no joy in running up the score. Every single person who wins at the game of money and then continues to run up the score only finds misery. They don’t find any joy.
So money the game, once you win, kick a new game. Because there’s a lot of games in town and money is just one of them. And it’s only a symptom of a condition. So seek the condition that Pace has. He told you, right? He works hard in the morning. He takes a break in the afternoon. Then he goes back to work. He focuses on fewer things. Pace has a partner. Brent does, and I mean… Jamil linked up with people. I mean, these are the conditions that produce the money. So, and that’s where you have to be careful-

Pace:
I also think it has a big amount to do with the people you surround yourself with. A big thing to do with who you hang out with. Because we hang out all together. And very rarely… I mean, we’ll talk business, but not much. I mean, we’re just talking family, we’re talking things. We’re talking life. We’re talking funny. We’re…

Tom Krol:
Trying not to be influenced by the people you spend time with is like trying to go swimming without getting wet. It’s impossible. So no matter what the excuse is, that they’re family, they’re close, we’ve been friends for years. It doesn’t matter. If they’re constantly poor. If they’re constantly having emergencies. If they’re constantly a victim. If they’re constantly struggling. It’s because of their belief system is wrong. Their actions are in line with their belief systems and it will influence you. Now mater how… If you spend time with great people who are where you… And a lot of people say who is the right person, because it’s not all about money. And it’s about ethics. The right person is the person who is where you want to be. That’s who the right person is. So find people who are where you want to be and then spend time with those people. And if you do that, you will have explosive results because you can’t go swimming without getting wet and you can’t hang out with people without them influencing you. It’s impossible.

Jamil Damji:
Ty just whispered, eagles don’t hang around chickens. [crosstalk 00:21:26].
Awesome. All right, Brent, why don’t you take us home brother.

Brent Daniels:
Yeah. Tom, thank you so much. I mean, I’ve just seen so many comments, just exploding, exploding. I’ve had more text messages from the TTP family and the Rhino Tribe since you’ve been on than I’ve ever had. So I mean it’s really incredible. I know that it’s already nighttime there. We really appreciate you jumping on here. You always give so much instruction. You give us a really good, I mean, you’re the perfect example of really enjoying life, being wealthy, being happy and just, just the overall health, I just love it. So thank you Tom. Love you.

Tom Krol:
Thank you guys. You guys are the best hosts ever. I was in awe being on this show. I’ll be back anytime you’d like to have me. I’m here for you. And Ty, it was great spending time with you, man. Flip man. Awesome. Peace out guys.

Ty:
Ah, that’s what’s up man.

Pace:
Thank you guys.

Speaker 4:
That’s all for this episode. Your next step to success is to continue the conversation over at investorgrit.com, by joining the mailing list, as well as get your chance to book a strategy session, to learn the systems and become part of the tribe with your hosts, Tom Krol and Cody Hofheinz. We’ll see you next episode with more ways to make you a fortune in wholesaling.

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