Posted on: November 12, 2020
WI 557 | Net Profit

 

Ever wonder how powerful a single phone call can be? Today’s awesome guest netted $69,000 in profit from a single phone call!

Christian Somaza is a hardworking wholesaler from Fort Lauderdale, Florida. In this episode, Christian talked about his real estate journey—how it all started and the processes he adheres to.

More importantly, Christian shared the breakdown of the lucrative $69,000 deal he did and how he made it all happen. If you can’t wait to secure a massive deal yourself, this episode is for you!

How a Single Phone Call Led to $69,000 in Net Profit

Episode Transcription

I’m going to start with a fantastic Jim Rohn quote here. Let’s get this brain working. Let’s get fired up. “If you wish to be successful, study success. If you wish to be happy, study happiness. If you want to make money, study the acquisition of wealth.” It leads me into one of my favorite topics to ever talk about and that is two words, massive deals.

I’ve got an interview with an unbelievable investor out of Fort Lauderdale. Before I introduce him, I want to preview this interview a little bit here and let you know that we’re going to be breaking down a multifamily deal. A lot of us, when we’re starting out we get so scared about these bigger deals, these multifamily deals but we’re going to cut through all of that so that you have confidence moving forward to get those deals. The second thing that we’re going to do is sometimes we run out of time to wholesale a property but it’s still a deal so what do you do? Without further ado, I want to introduce Fort Lauderdale, Mr. Christian Somaza. How are you, Christian?

What’s going on, Brent? How’s everything going?

I’m excited because a lot of people don’t know this but you and I would talk every week. You wanted some accountability. You want to go through the numbers and you want to break things down with your talk. It was real high-level stuff. You were experienced and you knew how to do deals. You know real estate and how to make money in this business but you wanted accountability and checking everything. I had a great time doing that. You weren’t always so experienced. You weren’t always so confident. Let’s bring it back to when you first started your real estate journey. Where did you start? How did you get your foot in the door with real estate?

I started off as a realtor and got my license. I was watching the million-dollar listing shows but only received one listing in six months and it was my grandma. That’s it. I had to go back to the 9:00 to 5:00. I went to a sales job, which was a boiler room calling from 9:00 AM to 5:00 PM. If you wanted to put overtime, you would do that. I got burned out. It gave me a lot of experience on the phone but I wanted to get back into the entrepreneurship side, which is what drives me. I went back into real estate but I didn’t want to go back as a realtor so I started deep diving YouTube and I ran into wholesaling back in late 2015.

I started listening to some people, bought some cheap coaching programs, $1,000 and learned the ins and outs of wholesaling. In 2016, I went all-in and started doing some heavy marketing with direct mail. That’s where I got started. I did three deals my first year. It took me 90 days to get my first deal. I was sending out the yellow letters, the postcards but it was painful because I would send out letters for $2,000 to $3,000 a month. I got my first deal for $10,875. I saw that start going down month after month sending mail or sending mailers.

I went into picking up the phone and started calling people. I kept doing some wholesale deals but then graduated. My fiancee and I met. We went ahead and bought our first rehab property and made some money. In 2017, we did six rehabs and it was smooth sailing and we were flowing. The second year, that’s when the real estate gods wanted to test me. They gave me the bad contractors, the city putting the tape on our doors, stop work and all the things you can think about.

I had 4 to 5 mortgages at the same time because I was using hard money, private money. I wanted to scale and I wasn’t ready. Too much at once. I learned my lesson and then I joined TTP. I need to simplify this. I don’t want to stress out with contractors paying 4 mortgages, paying 1 day. Having the contractor’s telling me on Friday, “I need $5,000 for my guys and $6,000 here.” I wanted to simplify things and go back to simple wholesaling.

It’s not easy to give somebody $365,000. You really have to trust them.

There is a big difference. This is all personal preference and self-awareness. When you go through this business, there are so many different ways to do this business. You need to understand that if you are going to go with being a flipper, developer or doing these things, the creative side of you comes out and you can make big spreads. It comes with a lot of sleepless nights, in my opinion. It comes a lot with, “I got a text message at 5:30 AM of somebody that needs something from me, money or whatever else.”

That’s why wholesaling is the perfect blend because you’re sourcing your own opportunities, which is huge. We’re finding our own deals so we can use whatever exit strategy we want. You can make almost as much at a wholesale deal as you do on a flip, especially in the Floridas, Californias, Arizonas, Colorados, anywhere. I could probably go all 50 states.

The advantage that you have is if you find your own deals. Why did you want to be a realtor? It’s not like you go to school, you grow up and you’re like, “I want to be a realtor.” Did you read a book, have a family member or watch a show? What clicked that said, “Real estate is the path that I know that I can be good at this.”

My dad. When I was in college, I graduated from FIU. Any South Floridians know where it is, Florida International University. I went to school for business. In my sophomore year in school, I started a business with my mother selling beauty creams and we were making money but that ended. I’m watching the million-dollar listing TV shows and all these TV shows. My dad told me one day, “Why don’t you get your license?” He planted that seed. I said, “Let me check it out.” I got my license, I started talking to people and I was like, “We can make some money here.”

That’s so cool that you guys had that moment to share. He must’ve seen something in you. Maybe a sparkle in your eye or something that popped up. Some energy or vibe coming out of you about real estate that he tapped into, which I love. I’m going to have to look for that in my kids. I don’t know if my kids have that but maybe they do. Who knows? That’s interesting that he found that about you. You started getting into flipping and wholesaling. What was the transition like from flipping the properties to wholesaling? Were you sourcing your own flips at the time? Were you getting them from wholesalers or agents?

At first, I was doing wholesaling deals virtual in my local market and then I went into flipping but I was getting them directly. It was direct letters, direct mail or calling. Eventually, we’d pick one up from the MLS, it was an REO and then I also bought a property from a wholesaler. I’ve been on the other side. I’ve been the buyer, been the seller, have worked with wholesalers and have wholesale properties myself. I’ve been on many different shoes.

You were making the calls yourself. Your fiancee did some as well.

My fiancee is right there with me. We were definitely hitting the phones every day and that’s the main thing I got with the TTP program. I was calling before but then managing properties, driving from one property to the other, Home Depot and Floor & Decor. Talking to you, I was able to get organized. I called you up, I was like, “I need to get organized when you made that happen because I feel like I’m all over the place.” That’s when we started getting, “We’ve got to set the schedule every day. By the end of the week, we need to hit this many people and I want these many hours on the dialer.”

WI 557 | Net Profit

Net Profit: We’ve got to set the schedule every day. By the end of the week, we need to hit this many people. We want these many hours on the dialer.

 

We had goals and it was great because it was like, “What’s your hottest leads?” “These ones.” “Lock them up this week.” I’d call you the next week and you’re like, “I locked it up.” I was like, “That’s all it is.” It’s setting the main ones, looking at your hottest leads and making sure that you’re bringing in new leads. Remember, when you bring in leads and you get one of those to sign a contract with you, you need to figure out how many leads did it take to get a deal. Remember, once you get that deal, you’re not replacing one lead. You’re replacing the 20 leads or 30 leads that take you to get a deal. The engine has to keep going or your business is constantly in fluctuation and unstable. That’s what we were working on.

Christian did a phenomenal job and then he brought in the secret assassin, which is his fiancee, who’s way better at these calls than he is naturally. He was telling me there are three strong leads that you guys are going to do something special with. The ladies that are reading, you are powerful. You’re way better at this than we are. People trust you way more. If you were a husband, a boyfriend or a fiance, bring them in and see what they think. It helps if you’re making money at this. It helps if you’re being successful but bring them in. That’s a strong thing to do.

Women have a strong power. Sometimes I get off the phone with the lead and I wonder, “If Crystal would have talked to her or him, I wonder if she would have got him.” We still put it on the follow-up but switch it up. Instead of me talking to that person, I’ll say, “Call this lead because I don’t think they’re feeling me too much but maybe you talking to them will be a different story.”

You said it perfectly, different and powerful energy. When you’re making all these calls, how do you organize your leads? Speak to somebody that is new to this or maybe they’re getting things going. They’ve got some leads but they haven’t quite got it pushed past the finish line. How do you get it pushed past the finish line?

Most important and you can agree with me is getting that CRM system in place, whatever it is. In that notepad, I’m remembering who I’m going to call. Get a CRM so you can set them in there and do a follow-up next week, “Call me back in two weeks. I’ll be in Miami. Call me back next week. My sister’s going to be down there in Fort Lauderdale,” whatever the case is. That’s the most important thing for me because it comes to the time where you’re talking to so many people that you’re going to forget. Leads going to slip by. As soon as I get a lead on Mojo, I go ahead, save the notes, copy and paste it, send it to my CRM and then set whatever the next follow-up is going to be depending on the conversation.

Step one organizing. You’ve got to keep it in front of you. It has to be fresh. You have to know who you need to call on a certain time or on a certain day, whatever it is. You can certainly set that up. If you’re more tech-advanced or you’re more tech-minded then find something that works. Don’t get too buried with it to where you’re playing around too much and it causes creative avoidance.

This thing was my CRM for the first $1.5 billion I did in real estate. It’s got 1 through 31 here. These are the dates. I’ll put my leads in there. It’s the 27th. I pull out the 27th, I call them, it gets done. I write all my notes and I put them in. I know when I’m following up. It doesn’t have to be rocket science but you do have to be organized and you do have to keep it clean. That’s the difference between people that want to dabble or be an amateur at this versus professionals. It’s tracking your numbers and your leads. In your market, you’ve got some high-end properties. You play around with that a little bit and also, you love multifamily.

When you’re on the phone, try to make people smile over the phone. When you smile and hear that other smile, they feel it.

With the last deal that we did that you recommended, the big question is, “What list do I call?” That’s the magic sauce because everybody’s calling and mailing out there. You want to get records because if you’re going to be calling twenty hours in the week, you need at least 2,500 people to call a month.

This is a question a lot of people ask me so I’m glad that you brought that up. About how many hours of calls? Let that break down to you.

This is after you start calling. You can start seeing your numbers and start breaking them down and realize, “Every week, I’m averaging 15 hours, 20 hours.” You also have to know how many records you have to put into that Mojo system. Every week, my fiancee and I are doing about twenty hours of calling. Within two hours that we call on the day, we’re going to call anywhere between 50 and 70 people. You start doing the math. For the month, we’re going to need at least 2,500 people to keep us on the phone every Monday, Tuesday, Wednesday, Thursday and Friday.

That’s what’s so important. What Christian’s saying here is you need fresh lists. There is something that happens. The first time you call through a list, it’s most likely that you’re going to get ahold of the motivated seller. The second time, it’s a little bit of dip but then after the 3rd or 4th time trying to call the same list, your contact rate, your ability to have people answer the phone within an hour timeframe goes from 15 to 17 people an hour the first time to 2 or 3.

All of a sudden, you’re talking to people every 30 minutes but you’ve committed an hour. You’re not getting enough impact and enough conversations to be able to provide enough value to your marketplace to be able to hit the income goals that you add. It’s important. What Christian is saying is refresh. He pulls 2,500 every single month so that they are going after fresh properties that they haven’t necessarily called before. That’s such a great tip. Let’s break down this deal. What was it?

It was a beautiful triplex here in Fort Lauderdale.

What list did you get it off of?

I’m with PropStream. I put multifamilies so 2 to 4, 10 years ownership, the criteria we go through. I put $400,000 or less for the price.

For the last purchase price, right?

WI 557 | Net Profit

Net Profit: You sell that set-up. We get that money, level yourself out, and you move forward.

 

Exactly. It’s because I know here in South Florida, prices are different. I’ve called Alabama and North Florida and we’re completely different. I went with a little higher price point.

Anybody that’s in those markets where the average price point is higher, expand that. Maybe you can explain. Why go for properties $400,000 and less as opposed to $200,000 and less?

I want to expand. In my opinion, I need 2,500 leads a month so I’m going to go $400,000 and lower. Once you start playing with the criteria, if your list is too big then you start playing with the numbers to lower your list. If you want more numbers then you put $400,000, $500,000 and then you get more properties, more records.

I love it because as you start pushing up that purchase price, the spread starts getting bigger. We’re at ten years ownership. I love that because what that says is maybe they’re tired of owning this property. That’s such a key. $400,000 or less. He’s not going for the ultra-luxury $2 million triplex on some beautiful lot type of thing. He’s going 2 to 4 units because these are typically owned by individuals and not individuals that own big portfolios of property.

You’re dealing with somebody that owns this as their rental. Maybe they’re tired of it because they’ve had it for ten years and they don’t have these gigantic expectations on what this property is worth. It’s absolutely phenomenal. He’s pulling this from PropStream. If you don’t have PropStream, you can try it at TTPData.com. Check it out. We use it as well. You pull this list and you get the numbers. Is it the calls or the texts? What’d you do?

Calling. I pulled the list from PropStream, I got the Excel and sent it over to BatchSkipTracing. They worked quickly. They sent me the Excel again with all my numbers. They give you ten numbers. I go with the first four, upload that baby to Mojo and start calling.

Just to clarify, when you skip trace an address sometimes they come up with 10, 12, 100 numbers, whatever it is. Just because I have a phenomenal friendship and relationship with BatchSkipTracing, I rent space in their building, they told me the first two numbers are 90% likely to be the ones that you get ahold of them. Christian expands that a little bit to four so that you’re not calling junk numbers and slowing down your process.

You’re killing a lot of time. Jump on the phone and start calling. They’re absentee owners with multifamilies. Start talking to them and start getting good leads. I was surprised, I was like, “I’m getting some good contacts here.” I get the triplex on the phone and it took three weeks from the first time we spoke to the time we put them into the follow-up system. We talk to them the next week, “Call me back on Friday.” “Maybe we can meet next Monday.” “Christian, Wednesday works for me.” “Does 1:00 or 3:00 work better for you?” “Let’s do 1:00.” We get to go see the property 2 to 3 weeks after the first call.”

We saw it. It’s a beautiful property, with impact windows, not run-down. All the tenants are paying, even during COVID. I got in there, saw it and I was like, “This is a good deal.” I ran my numbers when I got back home. It’s that time where you have to come up with the offer. Now it’s like, “I don’t know if this guy is going to go for my offer.” I was talking to another person and we’re like, “Let’s go ahead and shoot an offer between $350,000 and $400,000.” I gave them a range because I saw that the retail value of that property was $500,000. I give him a callback and I tell him, “We love the property. We want to make an offer on this property.” He was the type of seller that we all hate. “Make me an offer.”

Build up that confidence because that’s priceless. The way you do that is to keep calling and get better.

We try to pull that out. Remember, whenever you’re talking to a motivated seller, you need to find four things to pre-qualify them, the four pillars, the condition of the property, their timeline to sell that property, their motivation to sell that property or what is the problem and their price. Christian is trying to pull the price out of them and he’s staying firm at, “Give me an offer.” “I don’t know. You call me,” all these things that they go through.

I had to present him with the offer. I pulled the ballpark. “Mr. Seller, we have to be somewhere between $350,000 and $400,000.” Silence because I learned that from another coach. “Put your offer out there and shut up.” I put the offer out there, that range and he said, “That’s what I was thinking.” I was relieved. Right there, I knew we had something. We negotiated. I try to go at the bottom, at the $350,000 but he said, “I need to be somewhere in between.” I told him $365,000. He said, “I want $370,000.” I said, “$365,000 is the max I can do.” We came and agreed on $365,000. I wrote up the contract and the open escrow.

The best feeling ever is when you throw out a ballpark and you’re nervous. You’re like, “Between $350,000 and $400,000,” and they say to you, “That’s what I was thinking.”

I was like, “Perfect. Now we’re dancing.”

That’s that old Robert Kiyosaki quote, “The deal of a lifetime comes around about once a week.” If you put yourself in enough situations to be able to do that, ask that, be brave and have the courage to say $350,000 to $400,000 and they say, “That’s what I was thinking.” Was the condition rough? Did it need a lot of rehabs or was it clean?

It was clean. The roof was seven years old, impact the windows, backyard and paying tenants. Some of the units were renovated, certain areas. The middle unit had a renovated kitchen, corner unit and upgraded kitchen. The larger one had remodeled bathrooms so a little bit here and there. It was a good property. Me having some experience in real estate, I went through the “I’m going to keep this as a rental. You need the money. Wholesale it. We’re going to have to wholesale it. We have to take it down.” I talked to you and I told you, “I’m thinking about keeping this one.” You told me, “Sell that puppy. Get that money. Level yourself out. Keep moving forward.”

You were moving. You had a lot of moving pieces. We’ll talk about what you made on it but it was the right heavy check to get at the right time. I wouldn’t give that advice all the time but this situation called for it. Why did the guy want to sell it?

He had another business. He was hit hard with COVID with his employees because it was a catering business. That industry got hammered when COVID hit and he needed the money. We were able to give him the money. The closing was 30 to 35 days. He had the cash that he needed for whatever he needed to do with his other business.

You were putting it out and you had some interest but not at the price that you felt like you could get for it. Is that right?

I’m working with another wholesaler and I told him, “Nick, shoot this one out.” He shot it out and he got a high offer at $516,000 but nothing manifested from it. I was like, “Let’s start to get realistic. We’ve got to move this thing. Time is running. Week in, week out. Closing day coming soon.” I ended up getting some offers from other buyers through another wholesaler but they weren’t closing. The guys said, “I’m interested but I have my money tied up in Israel and I can’t get it out of Israel because of COVID, my bank and this and that.”

I had to start looking at the option of buying this thing. I was like, “I know that there’s money in here. I know there’s a good deal. I’ve had some interest. I need to put this baby on the MLS to get more buyers.” I set up everything to go ahead and purchase it with a private partner that we have that put 100% of the money down.

Is this a private partner that you’ve built a relationship with over the years? Is this somebody that you started a relationship with? How do people get money to buy properties with 100% that you don’t have to put anything into it?

With this one, I got lucky. I’ll be completely honest with you. My fiancee’s dad loves real estate. He funded our first rehab when she and I first started. We split it 50/50 but that sparked it and that took off. From there, we bring him in on certain deals. On this one, I had the option of going hard money but I did not want to use $30,000, $45,000 in my bank account for a down payment and then pay money in this and that, paying a mortgage payment.

We said, “Let’s bring in your dad and shoot him the numbers.” He’s a numbers guy. He’s like, “Let me see the numbers.” You call him, “Did we sell yet?” “Wally, how are you doing? Where’s my money?” He’s serious about his number. Family is family, business is business. We planted the number and he said, “Let’s go ahead and do it.”

You said that you got lucky on it but if you have enthusiasm about what you’re doing and you let your friends and family know, they can benefit from it too because he’s getting paid on this deal. I know how much he got paid because we talked about it so he’s making an incredible return and everybody’s happy. It’s a family situation.

WI 557 | Net Profit

Net Profit: If you’ve got a really good deal for everybody out there, start talking to your family about it and show them the numbers.

 

If you’ve got a good deal for everybody out there, start talking to your family about it and show them the numbers. You can piece it together. You can do this. It is not, “I can’t do it.” It’s, “How can I do it?” It’s not, “I’m not going to be able to. I don’t have that money.” “How can I get the money?” That’s the question.

It’s not easy to give somebody $365,000. You have to trust them. Even if they’re family, even if they’re your son, daughter, whoever, you have to trust them to say, “I’m going to give you $365,000. You and I are going to own it.” Essentially, we took title to the company and the company we own as well. You’re able to build that trust.

The more you swing, the more people you will meet. I have another private lender and I met her because we bought one of her properties through seller financing. I planted the numbers, I said, “Joyce, you can make this and this. Instead of me paying the bank, why don’t you finance it for me?” She did it and then from there, she financed another four properties for us. She said, “Christian, $200,000 is all I can lend you,” and that’s it. I called her, “Joyce, I’ve got this property.” She’s like, “Let’s do it.”

That’s how it’s done. This is not some magical thing that happens. Build those connections and a track record. Once you start building that track record, you’re going to have more money than how to spend. He bought it for $365,000, you put it on the MLS, you sold it for how much?

$465,000.

There are closing costs some real estate agent costs and some other things. What did you net on it?

The net was $86,000. Paid off our partner. We gave him $17,000 and we walked away with $69,000.

This is $69,000 from a triplex from one time. You never know when that time is going to be. You never know when that next person that you call is going to be that $69,000 deal. When you get that wired into your counter, if you get a check for that size, it changes your brain forever. All of a sudden, the things that you didn’t think were possible are possible. You understand why people have mansions, cars and all these things and how they did it. It comes down to the process of providing value to the seller, matching it up with a buyer that wants it and we get in the middle. Sometimes it doesn’t work out as a wholesale. Did you do any work on this thing?

Nothing at all. It was beautiful. It was a wholesale deal. I didn’t do anything and kept all the tenants in there. That’s another addition. They were all paying rent. When we bought the property, the first of the month, they were all calling me, “Christian, where do we send you the money?” I said, “Zelle it into my account,” and that’s it. I got an additional $3,000 during that time we were holding it and we weren’t paying a mortgage because the agreement was, “We’ll pay you at closing a certain percentage.” I was a landlord for a month.

To anybody that wants to reach out to you, say congratulations, maybe joint venture with you or network with you in Fort Lauderdale or the surrounding areas, how do people get ahold of you?

Look me up on Instagram, @Chris_Somaza.

If you’re feeling good energy and a good vibe from him, reach out to him. He is incredible and would love to join ventures with people around town and network with like-minded people. Thank you so much, Christian. That was incredible. I love watching it because I saw it start to finish so I got to see peek behind the curtain, behind the scenes. I got to see all this unfolding. It’s absolutely phenomenal. I’m so happy for you. Many more to come. I know it. It’s absolutely incredible.

You were putting that pressure on. You told me, “Get that thing closed.” I was like, “I’m going to have to buy it.” I appreciate you, Brent. There were some rough times during COVID with family, grandma and all these things. You would definitely help to continue going to organize it. I’m taking that and I’m running with it. I’m planning more deals to come and I’m spoiled now at $69,000. I need to make those big checks.

You’ve got to get the six-figure. For everybody out there reading, if you are interested in joining the most proactive group in real estate investing, it is the TTP family, go to WholesalingInc.com/ttp. Check out what the page says, look at all the reviews and what the program’s all about. If it feels good in your gut, sign up for a call. We’d love to speak with you and see if you’d like to join the TTP family. Other than that, Christian, thank you so much. I appreciate you jumping on here. Any final words?

When you’re on the phone, try to make them smile over the phone. When you smile and you hear that other smile, they feel it. My thing is always humor, trying to joke around, smile and being genuine. I have confidence in what I do. Build up that confidence because that’s priceless. The way you do that, keep calling, get better, talk to Brent and talk to other investors. Hit me up and I will help you if you need help. I don’t mind spending 30 minutes on the phone with people. Also, go out there and take action. That’s it.

Perfectly said. With that, I’m going to sign off by encouraging you, as always, to talk to people. Until next time. Love you. See you.

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About Brent Daniels

Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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