Posted on: November 17, 2020
WI 560 | Wholesaling With No Money

 

Many people have this misconception that you need to have money to start wholesaling or you need to do it full-time to succeed. Today’s two extremely successful guests can attest it’s simply not true.

Brendan Barth and Jeremy MacConnell’s wholesaling journey has been nothing short of inspirational. The tenacious and hardworking business partners started their wholesaling venture as part-timers and now they’ve done more than 100 deals!

In this episode, Brendan and Jeremy gave a glimpse into their amazing wholesaling journey—how they got together, how they made their business partnership work, and the mindset they have adopted to get where they are now.

If you want to build a solid foundation for your wholesaling business or would like to know the right mindset that can help you succeed, this episode is for you!

How to Get Started Wholesaling Real Estate with No Money

Episode Transcription

I’m excited because I’ve got in the TTP Studios here in Phoenix, Arizona, two extremely successful real estate wholesalers, flippers, investors out of Seattle Washington. This show is a story of two lives that happened once you dedicate yourself to real estate investing. That’s the life you had before you discovered it and the life that you have after you discover wholesaling real estate. I am so excited to introduce the beautiful State of Washington, Mr. Brendan Barth and Mr. Jeremy MacConnell. How are you?

Good. Nice to be here.

Thanks for having us. It’s an honor and a pleasure to be on the show.

I’m excited to have you here. This is exciting and important. You, Brendan, were the one that said, “I don’t know what we’re going to do with this show.” I’d like to talk about how we did this part-time for so long to build this up and do it over. You have done hundreds of deals. This isn’t amateur stuff. This is real life. Millions of dollars worth of real estate investing income to you but it started part-time.

Part-time, for me, was in 2013. I was stuck in the rat race. Getting up every morning, going to work, doing the same thing, working for the same people day after day.

What was the job?

I was a park maintenance technician. I worked for the local parks department. It’s a great job. I was there for over ten years. I could have continued doing that forever if I wanted to. However, I was ending up in the same place month after month with the same income, not able to do what I wanted to do for myself and my family. I woke up one morning. I’ve told Jeremy the story many times. I googled something along the lines of, “How to invest when you’re broke? How to do anything when you’re broke?” I was broke.

Even though I had this great job and everything I needed month after month, I ended back up at zero. I was over it. The life I had before and the life I have now. I started with a Google search and found Than Merrill, Wholesaling Bible. I read it in one day. I was off and running. I told Jerry how to deal a week later. My journey in wholesaling started quickly and it happened fast. I had two deals in my first month.

You started in 2013, just you. You get up, go to work from 9:00 to 5:00 because this is a government job. You got the benefits and some pension if you stay long enough. It’s an interesting thing. Everybody that sits in these chairs, anybody that I interview or anybody that’s in the TTP Family has the same thing. We have that pilot light inside of us, that fire inside of our belly that’s like, “Life’s good but there’s got to be more.”

This is important. It starts with the finances because that’s always the measuring stick. How successful are you professionally? That’s the first thing that comes. It’s not that. It’s the idea that you get to have the flexibility of the schedule. It’s the idea that you got to be the example to your family forever of not having to live the same in-the-box life like everybody else.

Ultimately, no matter what, every day I was giving my time for a paycheck. That was not going to change. I was never ahead. End of every month, just a couple hundred bucks. I can’t take my family on vacation. If anything goes wrong in life, I could never handle it. I was broke and wanted to change. The readers should know that I started with no money. I had no credit.

I was dating a gal, who’s my wife. She let me borrow $400 or $500 to start this thing off. We bought letters, pens, postcards, stamps and a small list of fewer than 500 people. It was absentee owners. We went after it. I had a deal off Craigslist and my first set of mailers that we hand-wrote together every night. We do twenty of them a night, send them out every day. We got two deals in the first month.

What was that like when you were getting your first phone calls from sellers?

I had no idea what I was doing.

Time kills all deals.

I remember it’s so funny because I started door-knocking and I’d go through the whole neighborhood. I have a real estate license. I would either list a property, look to buy it or put it under contract for what I thought was for my investors. I didn’t even know what wholesaling was but I remember one of the techniques we would do is the ugliest houses.

Myself and my partner at the time, Dustin, we’d walk around with a little clipboard and write down the address. We would write him a handwritten note that was very simple. “My name is Brent Daniels. I wanted to see if you would consider a cash offer on your property. Call me,” and put a number. We did deals like that. This is the same time.

It blew my mind when people called and got back to us. It was awesome.

How about you, Jeremy?

I have a two-part. Before I got to college, when I was seventeen, my mom gave me the book, Rich Dad Poor Dad. At that point, I was psychologically unemployable. I knew that this was it. I flipped my first house when I was eighteen. I got crushed in ’08. I was like, “I’m never doing real estate again.” I checked it every day, looked at Redfin, Zillow, watched the market and realized I need to get back in. I bought a rental in 2014 and then learned about wholesaling in 2016. It was right from there. My first deal was with my neighbor. I was aware of off-market investing and stuff like that. I had a mentor that was working with me at that time but I knew that this was a distressed property. I went over there. I knew she owed nothing and about to lose the house.

How is she going to lose the house?

She did a hard money loan or some type of draw. She had no mortgage and couldn’t afford the payment. She needed the money to support her life and then needed to get out.

How did you find out about this?

My neighbor told me that she had paid off the mortgage and was going through some stuff. I walked across the street and knocked on the door.

An interesting thing that I found even when I was out door-knocking was a lot of the time, people wouldn’t answer or might be vacant. Somebody on that street knew what was happening. I knocked 2 houses next to it and the 4 across the street. One of those eight neighbors answered the door and gave me the scoop. I would say, “I’m interested in buying that house right there. Is there a way that I can get in touch with the owner?” They would go crazy.

Sometimes they would give us the phone number. Sometimes they would tell us when the best time was to come by to talk to them. Sometimes they would give our card to the neighbor and the neighbor would call us. It was interesting. Getting into that face-to-face is powerful especially in some of the markets that you work in. We’re talking Seattle like big-time property. We’re going to do a deal breakdown. These guys made over $70,000 on $1 million property. It’s interesting because we don’t have a lot of people talking about $1 million properties. Seattle is a fistfight. We’ll get to that. How did you connect?

We’ve known each other for quite a bit of time through business, through a friend and real estate. In 2016, when I got that ball rolling and getting into wholesaling, we would collaborate on a couple of deals. 2018 is when we did our first collaboration. We were like, “This was easy. We should do this more often.”

We were tracking on the same track. He was the weekends and the night guy going to work every day but crushing wholesale deals. I was doing the same thing and it was like, “We’re on this parallel path.”

What was the job you had?

WI 560 | Wholesaling With No Money

Wholesaling With No Money: It must have taken 25 plus deals before I realized that it would keep repeating every day.

 

I was working for State Farm and a cubicle data entry. I’ve always been on track to get out. I knew I needed to get out.

I worked on him for months. I was like, “Just quit.”

How did you do it? You have the 9:00 to 5:00. One, what’s going on mentally? Are you thinking at some point something’s going to happen?

After I got that first deal, I was like, “There’s something here but it must have taken me 25 plus deals before I realized that it would keep repeating.” Every day, I wake up and be like, “Is this going to happen again? Am I going to find another motivated seller?” Then I would. In my first year part-time, I did six deals. The next year I did twelve. The following year I did twenty deals while working full-time and raising a family. At that point, I was like, “There’s something here.”

You went three years before you quit your job?

Five years. I got to the point where I was making 4 or 5 times more than I was making at work every year on nights and weekends. Finally, I was like, “This is bonkers. I have to stop going to work.”

Why didn’t you quit the first year?

I was very scared to quit. I had a retirement program, medical benefits, the golden handcuffs and my self-limiting deal. I didn’t think this could be a thing and then turn it into a company. I got the kahunas to do it. As soon as I quit, I started calling this guy.

We have very similar why and vision that’s why we aligned so well. I was all about, “I need to stack so much cash to buy rentals.” We’re both on the same page. We still stack our cash to buy the rentals. We want passive income. I created a goal. I was like, “I’m not going to leave my job until I have five properties.” I was in the market that I was investing in that would work for my monthly net. For us, it was similar in that case but I was like, “I’ve got to make the five.”

I realized how good we were working together and how big our company was growing. We’re in the same vision and why and then made a decision. I got to fully commit to this. A lot of the reason too is to show that I was all in. We already had proof of concept. We knew the deals are going to keep going. I need to be able to work more than that 2, 3, 4 hours at night. I was working seven days a week to make it happen but still, I need more hours.

How important do you think it was to save up before you made the decision? You need to have six months saved up in your account for all of your monthly costs and expenses every single month, then you could make that decision to go into this full-time. I see so many people and you have seen it too, started soon. The issue is the pressure oftentimes than not gets too heavy than the timeline to be successful and get consistency. It’s not that people aren’t putting in a ton of effort or aren’t taking enough action. It’s the timeline to close these deals.

Sometimes these deals take 45 days to close. Sometimes you talk to somebody and it’s not until 90 days later that you get paid on these things. For everybody out there reading, the mentality should be 90 days minimum from the time you talk to them to the time you close. Some people go in 1 week and 1 month. They start getting these things faster and quicker but the timeline to getting the money in your account, not having to spend a ton every single month, all the different resources tools, training and whatever else that people are investing in gets stressful. For everybody out there, these guys built it on a rock-solid economic foundation that said, “We’re going to stack up a ton of money.”

Get those rentals in place. We each have rentals. We’re getting that monthly income as a little bit of a buffer.

What was the draw that broke it all? What was the decision? How did you handle going into your boss’s office and saying, “This is it.”

Success is the idea that you get to have the flexibility of schedule, that you’re going to be the example to your family of not having to live the same in-the-box life like everybody else.

We planned that for years and it wasn’t as climatic as I thought. I was looking forward to that day and for me, it was a freedom thing. My job was pretty much the same thing day after day with the same people and hours. I wanted that freedom. I wanted to be able to pick my kids up from school. I wasn’t able to do that before. Where I want, do what I want, when I want and I was over it.

That was it. There wasn’t a moment you’re like, “I’m walking in and I’m quitting.

For whatever reason, I just didn’t show up. I went in. I gave my two weeks. I did the whole thing correctly.

Did they know it was coming?

Everyone there knew. They knew it was coming. What a great and awesome day. Pretty scary day but it’s worked out.

How old were you then?

That was in 2018 so 38, 37.

You went to elementary school, junior high, high school, dropped out of college then job. Structure then freedom at 38.

Two years into it, I still wake up going, “Am I supposed to be somewhere? What am I supposed to be doing?” It’s a real adjustment. With that being said, I don’t know about Jeremy but I feel like I work more than I did. I only work eight hours a day. It’s different work and a set of stuff. What a transition.

How about you?

Mine was anti-climactic. I had dreamed about this for so long because I always wanted to leave my job. I went into the job knowing I was going to get out because I had freedom before that. I wrote the email and sent it off. My boss was cool. I worked with a great team. They’re all aware of it. I was taking calls for 1 or 2 hours. Taking my computer and go into different rooms where I could work. It was like, “I got to do this.” Everyone knew. It was about 1 or 2 weeks.

Let’s break down this deal. You had reached out to me. We text or talk about this deal on a lake. We don’t have deals on lakes here in Phoenix but you do. What happened with this? Let’s go through the whole thing. I want to know what lead generation you use. What lists was it? Let’s break all the four pillars down.

If this is your first time reading, anytime that you are talking with a distressed property owner, you want to pre-qualify based on four things, the condition of the property, their timeline to sell their property, their motivation to sell that property or what is their problem that they’re currently going through and what is the price. Those are the four things that we’re looking at. We’ll break those down here. How did you first come in contact with this seller?

This deal first came to me years ago through a postcard. I tried to move it. I was unable to get the price that we currently had at that. I had a little bit higher number. I talked to everybody in Seattle. I was not able to sell it. I lost and forgot about the deal. One day I told Jeremy about it. “I had a shot at this waterfront property a few years ago.” He’s like, “Let’s see if it’s still available.” I went back and dug up the guy’s business card. I passed it off because I wore out my time with this guy. I said, “Jeremy, why don’t you give it a shot?” Jeremy reached out to him and got them back on the line. We got him $1 million, which was a couple hundred thousand dollars cheaper than the year previous.

WI 560 | Wholesaling With No Money

Wholesaling With No Money: 50% of our deals are people that have been on our CRM or our follow-up system for over six months.

 

It was at $1.3 million to start down to $1 million and $50,000.

You send them a postcard, “We will pay cash for your house. Fair offer here.” Classic postcard and he called. Why did he want to sell this property?

It’s in horrible shape and a hoarder house. With the pathway through lined with stuff, floor to ceiling probably had been there vacant for at least twenty years. It’s a like storage unit for this guy.

Carpark was filled with stuff.

He didn’t live there? This is his little hidey-hole.

Yes. Other wholesalers had tried to move it in years prior as well. A lot of people have seen it. He was stubborn on that number. Jeremy was finally able to give them down where we needed to be.

What did you say to him?

We do this on all our calls with sellers. We found out what’s the obstacle, why are you not selling and what do you need at this point. At that time, he wanted $50,000 released to him so we did that and then he wanted a long timeline. There was stuff that he believed was important.

Anytime you’re running into a hoarder situation where they got a lot of stuff in there, there’s always secret treasures somewhere in the house that they try to prolong the timeline. Remember, time kills all deals. If you need to help them to remove junk, hire somebody, get through it and put a storage box in front of there, that whole thing, do that. It helps it out. It sounds like this guy wanted to go through it himself.

We already had it sold. I was all about, “We need to get this locked up. Who cares about the timeline?” We even offered, “We’ll help you move stuff out.” We got to the point where we’re like, “We’ll start storage units so you can move your stuff. We’ll hire movers.” Before the deal closed, we did financially help him get some stuff out. We got to close and it was one of the most difficult processes.

How big is this house? Do you remember?

It’s not too big. It’s 3-1 and probably between 13 to 800 square feet.

It’s $1,000 a square foot is what he was asking for.

Pretty much.

Before you take any action, just believe that it can happen.

For a lake house, a very small home on Lake Washington.

Everybody reading that is in the lower price market says, “What is going on in Washington?” It’s not a huge house. Once all the stuff’s out, it’s not an expensive renovation to where it’s $500,000. You’ve got this thing at $1 million. The condition is everything needs to be done.

Most people are looking at it as like a teardown. The end buyer ended up keeping the property. It’s conditioned and then remodeled. Not fully blown out but to give some room for someone to go all out on that.

Condition, totally rough, renovation, timeline. He’s been ready for two years. He’s been holding out for his price. What made him decide? Was it this year? Was it this situation? Was it something that changed in his life? What made him accept that $1 million offer?

The difference was we were there to help. He had experience with Brendan. I said, “I’m partnered with Brendan. You spoke with him a couple of years ago. We’re ready to move forward on this deal.” We then pushed out on our price and said, “This is all we can pay. You’ve tried this multiple times.” We solve some of his problems and gave him that timeline. It was a 90-day close. He stayed with it.

We had to ride him pretty hard. He’s getting older and had some health issues. We walked him through it. He ended up leaving about $10,000 worth of stuff so there was an additional cost. What can you do? We got the property and got it closed.

He wanted $1.3 million. You got them down to $1 million. What did you sell for?

We sold it for $1 million and $75,000.

Did you net how much?

$75,000.

It’s interesting because a lot of times when we’re going back through our database of past leads for the last years, we’re finding wonderful deals tucked in there that we didn’t remember were there. You were smart going back to it and then reopening that conversation by being proactive and making a call.

That’s an important note for the readers. Fifty percent of our deals are people that have been on our CRM or follow-up system for over six months. It’s very few deals come in. We get them and closed right away. It’s a small number of deals for us in our business. It seems like we talked to these people for 3 months, 6 months, even a year, all the time and then finally get them on online.

We do rapid follow-up and we’re always staying in touch. We try to leave an impact so that they can remember us while we resurrect a lot of deals.

What lead generation do you do that keeps you so successful in one of the toughest markets in the country?

WI 560 | Wholesaling With No Money

Wholesaling With No Money: You’ve got to be able to take what you’re learning and then not be scared to just go right at it.

 

It’s a good time to bring up a great point of how your program helped us transition. Both of us when we were doing the one-man thing on the nights and weekends were reactive. We’re sending mail, posting ads and waiting for people to contact us. The TTP program became proactive. We started a call center. We’ve got three full-time callers, a full-time texter and we’re reacting.

That was a game-changer. It put gasoline on our fire. We’re still seeing it. We love the whole program of having callers that we can get the list out to them and then we can hit them twice texting. We still do a little bit of mail but it’s very specific on what type of property we’re going.

Shout out to Batch. We’re using the texting system. That’s awesome.

BatchLeads.io, use the coupon code TTP. You get to try it out for $1, half off the first month or something like that. Check it out.

We got a 27% response rate on texting, which is nice. We’re trying to shift even more to texting and increase the calls. We’re getting 10 to 15 good leads a day.

Speak to those beautiful, ambitious, talented and smart people out there that are reading and had never done a deal before. What advice would you give them to get started in this? The toughest part when we’ve got this passion is, “What’s the first thing I can do?” Give them some advice.

Imperfect action and mindset. I got that from you. I love those terms. It’s all about the mindset. The belief that we can do that. Jeremy and I wake up every day believing that we can find deals. Before you take any action, believe that it can happen. We’re an example. I’m an everyday normal dude, terrible student and it works. You don’t have to set it up perfectly. Just do it. Make some calls. Talk to some people.

Speed of implementation that you’ve got to be able to take what you’re learning and then not be scared to go right at it. That’s what we’ve always done. We learned something and put it right into play.

How do people reach out to you if they want to congratulate, connect with you and they’re in your market? Maybe they’re getting deals from other markets or in a different market sending you for referrals. How do they get ahold of you?

They can reach us at Jeremy@Foursqre.com. @JeremyMacConnell is my handle for Instagram.

I’m so happy that you are here, successful and are a shining example of what you can do. If you’re working full-time, you don’t have to stay stuck in it. There are two lives. One before wholesale and one after. That’s true. Thanks for being on the show.

Thank you.

Everybody out there reading, if you are interested in joining the most proactive group in real estate investing, it is the TTP Program and TTP family. Go to WholesalingInc.com/ttp. Scroll down and check it out. If it feels good in your guts, sign up for a call. We look forward to talking to you. As always, I sign off by telling you and encouraging you to talk to people. Until next time.

Important Links:

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!

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling