Posted on: February 11, 2021
WI 622 | Real Estate Business

“Start with a little discipline and begin to string them together because doing less than you are capable of doing creates a lack of self-esteem. And lack of self-esteem is the greatest deterrent to success.” Our guest for this episode carries himself with much confidence to emerge triumphant in growing his real estate business.

 

In this episode, Brent Daniels talks to wholesale real estate investor Devin Foster. Devin started cold calling and investing in 2014 after attending several events and learning from Robert Kiyosaki. In 2019, he went to work hard on the business after listening to Wholesaling Inc. podcasts that got him started learning tools and got into the Wholesaling Inc.’s TTP program while working full time.

 

In this episode, Devin shares how he started his wholesaling business seriously through his learnings from Wholesaling Inc.’s TTP Program. He also shares the resources and tools he used in finding the leads that landed him his first $10,000 revenue. He also talks about his learnings from his wholesaling journey and gave some advice to aspiring entrepreneurs.

 

Learn from Devin’s journey and be inspired by his persistence to do the business. Check out his conversation with Brent in this episode. Hit the play button and listen up.

How To Build A Thriving Real Estate Business When You Have A Full Time Job With Devin Foster

Episode Transcription

I’m going to start with this Jim Rohn quote because this opens up this conversation that I’m about to have with an outstanding young wholesaler out of the triangle area of North Carolina. “Start with the little disciplines and begin to string them together because doing less than you are capable of doing creates a lack of self-esteem, and lack of self-esteem is the greatest deterrent to success.” That leads us perfectly into this. It is my pleasure to introduce a young man that is the opposite of the lack of self-confidence and self-esteem, Mr. Devin Foster. Welcome everybody out there in the Rhino Nation on Wholesaling Inc.

I’m happy to be here. It’s surreal hearing you do the intro because I was once on the opposite end just listening in. I’m excited to talk to you and to everybody else and share my experience.

The beautiful thing is you heard the show, and you didn’t just use it to listen to. There’s a great saying that always says it’s more about books than about anything else but that it’s the same with this show. It’s not what you get out of the podcast. It’s what this podcast gets out of you. What actions are you going to take? What are you going to do to be better the next day and the next? What experiences? What conversations? What networking, connections and opportunities are you going to find, and the actions that you’re going to take?

WI 622 | Real Estate Business

Real Estate Business: You have to have multiple things and you have to also know how to manage your money, and real estate is one of those places where people manage, invest and grow their money into different markets.

 

That’s what’s important. That’s the power of this show. It’s not just listening to it and feeling good. It’s about going out and taking action, which you have. Before we get into all the action and what you do on a daily basis in your business and how you’ve been successful, bring us back to 2014, 2015. You read Rich Dad Poor Dad. What happened inside your brain when you read that?

I was a college student. Long story short, I was in my sophomore year of college when I read Rich Dad Poor Dad. I’ve always known that real estate was a foundation because I’m always interested in wealthy people. I always thought it was a huge barrier to get into real estate, but when I read that book and it talked about wholesaling and what the rich dad did and this ideology versus what the poor dad did. I can relate to it a lot because it’s like with my family as well. My dad has certain things that he’s done. He’s gotten to a point, but there’s more out there, so that was very intriguing to me. It just happened.

My friend and I ended up going to a Robert Kiyosaki, one of the weekend events. We went to one of those. I ended up paying for and went to the three-day event. This was my sophomore year in college. That opened us up to the basic idea of what wholesaling is. From there, we invested in PropStream. Everybody has their own version of PropStream.

We invested in the software, and we’ve had it for a long time, but that is when I first got interested. I started making some cold calls trying to figure out what I was doing, but I had no clue what I was doing in my sophomore-junior year. We would do it here and there. Not serious, just trying to figure out how to do it throughout my college career. After I graduated, I got a little bit more serious.

In my sophomore year of college, I read Rich Dad Poor Dad. I’m in college. I’m studying Finance. I’m thinking that I’m probably going to do something corporate. I never knew what I was going to do. I didn’t even know what college was for. I knew that I had gotten in. I got decent grades. I was playing sports. I was doing well, but I didn’t have any direction, and that book set it up and it gave me a direction.

I thought that you had to get a real estate license, and I did that. You go down these different paths, you went a much better path in my opinion, and found wholesaling early on. You’re telling me that you’re twenty years old, you’re in college, and you are cold calling homeowners and asking them if they would consider an offer?

At that time, I was 18, 19. I tried it. I wasn’t successful then, but I just jumped out there and tried. I remember my roommate, it will be after class, it’s like 6:30 or 7:00, you’re sitting in the living room and I get on the phone and start calling numbers that I found. We were using some sketchy skip tracing tool too. It was a lot of weird stuff. A ton of wrong numbers, calling family members, shops, auto shops and all that other stuff, but I tried it.

You’re not going to get to the big leagues working a regular job.

Everybody is having fun. Everybody is studying or not studying, going to college, whatever, and you’re out there calling homeowners for real estate. Your friends and your family, could you communicate with them, tell them what you were doing? Did they understand it at all?

Not really. I have one friend that I was going on this journey with. I dove into it a little bit heavier than he did, but my mom and dad just knew it was something I was interested in. Of course, if you’re parents, you’ve got kids, they’re always interested in something. Some of my friends will reach out now that I’m actually starting to find success a little bit, they’ll be like, “I’m proud of you for doing it. You’ve been looking into this for a long time,” or they’ll find out some information like, “The wholesale game is real work that you have to put in. I didn’t know that much went into it.” At that time, I will say I still had my fun though in college.

The seed was planted early, which is incredible. The earlier that you can start, if it’s your first time and you’re getting into wholesaling, you’ve got that fire in your belly now and you know that it’s a way to feed that passion that you have for real estate. Working for yourself, being an entrepreneur and building a business, if you’re feeling that while reading this, you’re going through all this.

It all starts with just picking up the phone, talking and having a quality conversation with a distressed property owner. You don’t have to overcomplicate this. There are ugly houses down the street. Get their address or get their number. Find their phone number at BatchSkipTracing.com and get a discount when you use TTP in there. Call them and start. That’s exactly what Devin did.

It started something special because if you’re always thinking about it, wondering and you’re not taking action, and like Jim Rohn, if you’re not living up to your full potential, it’s going to tear apart that self-confidence and self-esteem that you have. If you take action, even if it’s a negative response, that’s a win. You took action. Did you feel like it was something that you could build some momentum? Obviously, you’re young and you’re doing your thing. When did you get serious?

I got serious after I graduated college, but just in that beginning part, that’s when I started reading your blog. I found Wholesaling Inc. show and all this good stuff. I would ride around even during my corporate internship. My major was Marketing and Sales at school. I had internships and all that stuff, but the whole time when I was riding around and doing my job, I’ll be listening to podcasts.

I started in the summer of 2019. That’s when I got serious and figuring out the different tools that I needed. I was calling after work. Once I started my corporate job, I’m a corporate salesman. I’m an Executive Account Manager for a big company. I won’t name the company, but it’s a technology company. There’s a lot of work that I had to do.

I will be calling from 5:00 PM to 8:00 PM on average, or 6:00 PM to 8:00 PM. Whenever I got home, I would jump on the phone and start calling. Ultimately, I realized like, “I haven’t got the traction that I needed, so I need to figure out something else.” I saved enough money, and in May of 2020, I ended up buying into your program to try to figure out something.

I saved up some money and got into the TTP program. I’ve called 2020 my real start. Once I got into the TTP program, I already knew a lot of the basic information and stuff that I need, but it gave me that little extra boost that I needed. Especially, in talking to you, just having you personally there to talk to, it gave me that extra boost and knowledge of whether that’s systems or people I need to reach out to, to get started. That’s the one I ended up hiring a cold caller, ultimately, too. That’s where I got started.

WI 622 | Real Estate Business

Real Estate Business: If you don’t like cold calling or if you don’t like anything else, there are other ways that you can do it, especially if you’re working part-time and if you got a little money saved up.

 

Everybody out there reading, Devin is working in sales and marketing full-time. He’s getting off. He’s taking a little bit of a breath. He’s transitioning his brain, his speech, and the way that you use certain words when you’re talking to homeowners that are different than you’re using in corporate. He’s changing all this up, and from 5:00 to 8:00 or 6:00 to 8:00, he’s making calls after work. Why do it, Devin? You’ve got a nice corporate job. You went to school. Why not just kick back and relax after work? What is driving you at 5:38 at night to go, “Time to switch this over, hit the dialer, start making calls and doing lead follow-up and doing things.” What’s that switch? What’s going on?

I’ve always known that I didn’t want to work for someone my whole life. I’ve never thought the whole working 30 years, and then you get the retiring thing was a real thing. Why would you want to spend most of your life working? I don’t understand that stuff. I got my nice corporate job. I’m now at a level where I’m making a pretty decent amount of money, like six figures.

I still understand how those traps people because it’s a ton of work that you have to do. Me personally, I’m not the biggest corporate person. I’m not the most interested in just working for anybody in general. It doesn’t make me excited. It doesn’t make me happy. I also want to change the whole standard for my family.

I want to be in the big leagues, and I know just working a regular job, you’re not going to get there working a regular job. You have to have multiple things, and you have to also know how to manage your money. Real estate is one of those places where people manage, invest and grow their money into different markets.

For me, I know I don’t want to do this long-term, no longer than 5 to 10 years. If I’ve got to put in the extra hours after work, even though it’s a super hard time coming home and doing extra hours and cold calling, I know I don’t want to work long-term. That’s the whole reason that I do it. I just don’t want to work for anybody for a long time.

Everybody reading knows that you won’t. You’re not going to be working for a long time. Let’s start breaking down some deals because you’ve closed a couple of deals. We had talked about the one that you got a lot of learning experience from. Let’s break that thing down and open that one up. Where did you find this deal? Did you call him? Did you text him? What dialer were you using? What list was it? All this stuff, let’s break it all down so everybody has the resources that they can mirror your success.

Real estate wholesale and cold calling are completely different.

This deal came from an inherited deed list that I got. I’m using CallTools. I switched over from Mojo to CallTools. This one came from an inherited deed. This lady reached out. I want to highlight that I hired a cold caller through Max Fisch of Real Estate Project Home Solutions. Those are my people. They are my bread and butter now. It’s the reason I have closed deals.

CallTools is a dialer. Mojo Sales is also a dialing system that helps you make calls. Where did you get this inherited deed list from?

I got this one fromFlipThisRealEstateList.com.

Our good friend, Erik Torrente, does a lot of work with our TTP family. He does a good job. FlipThisRealEstateList.com and then the other one, Max Fisch, who has an excellent cold calling company, CallingReps.com. Use TTP as a code. You get a little bit of a boost there. Definitely talk to Max. He’s incredible. He hooked you up with a great caller.

I hired him on September 1st and literally, the first deal I got was within the first 30 minutes to 1 hour of him working for me. That was one of the leads that he put in my CRM system. It paid off anyways. The second deal, my cold caller called this lady, and she wanted to sell her house. Her asking price was around $88,000.

This is where I say it taught me a lot of lessons because my numbers here were skewed. It was $88,000. I followed up with her multiple times. I talked to her probably three times before I went out to go see the house. There were probably 3 or 4 other wholesalers there as well. She didn’t tell any of us either. It was a big surprise showing. She’s competing for the best price.

You’re calling reps. He gives you a caller. They call this inherited list. Once they get the lead, what does she do? Does she email it to you? Does she or he text it, whoever it is? How do you get the lead from them?

My guy, Noir Anthony, that’s my cold caller. Whenever he gets the lead, he inputs it into my Podio system. I use Podio for free. I found the nice little template on there that I worked around the REI template to how I wanted it, and he uploads the list of Podio. He also sends me an email and texts whenever it’s a good lead.

He uploaded to Podio. I go into Podio to check all the information. It has the Zillow links right in there, all that good stuff, and then I do my follow-ups and call. After my cold caller from reps’ calls, I do my follow-up calls and I talked to this lady. I went out to the house. I did my calculations beforehand and this is where I messed up. The ARV on this one that I originally calculated was around 2/12, and I do my ARV price by per square foot. I don’t just do the average of the number.

Explain to people what that means because there are people that have never heard price per square foot. A lot of people have but explain what do you mean by that?

Let’s say you have four properties in the area sold for different prices. You have the average of that, which is those four properties dividing the amount by four, so you find the average. I don’t do this calculation myself. PropStream is right in there. If you go in there, it’ll show you the average price per square foot. I take that number.

Basically, whatever the property sold for is the average of each square foot. It was this dollar amount. Let’s say it’s $42 price per square foot and I have a 1,300 square foot house. We multiply $42 by 1,300. That’s what I do. I took the average of that and where I messed up is because I had the properties that are comped.

It wasn’t too many that were right close at all that had been comped or sold. I took some that were 0.6 miles away, not 0.5 and under or whatever else. A lot of people don’t like to use that because it could be in a different neighborhood pretty much. You can go across the tracks and it’d be completely different in another place.

That’s where I messed my comps. The ARV was more so around $190,000. Once you start working with buyers and stuff, $210,000 and up is a complete difference from $190,000. Long story short, I got this one under contract. This is where I messed up too. I probably could have gotten it for more. Now that I’m learning a little bit more, as I said, this one was a learning experience for me.

I got it locked up. I just went in because there were four other different people there and I said, “The numbers are working for me.” I offered the seller $90,000. Originally, her asking price was $88,000, but I went in and offered her $90,000 because I was like, “I want to get this locked up and the numbers still works.”

I got it locked up for $90,000. I had done a deal right before that one. The same buyer before, he immediately called me. The numbers were so good. I put it out there for $120,000 or $115,000 somewhere around there. He’s like, “I’ll give you $110,000 now.” I was like, “If this is how it’s going to be right off the gates, I want to see what else is out there.” This is three minutes after I had shot it out. I was like, “Give me a couple more days. I just sent it out. I want to see what else is out there.”

WI 622 | Real Estate Business

Real Estate Business: If you really want to do it, if you take the time and sit down, trust the process, and take imperfect action. Ultimately, you’ll find success as long as you’re making sure the action that you’re taking is productive.

 

I got a bunch of inquiries. A bunch of people reached out and a few people came out to see the house. Ultimately, everybody ended up backing out because the numbers were just off for them. I’m learning now that this buyer that I’m working with does typically buy at a little bit higher price than most people. This house also was going to take around $50,000 in repairs.

If you do the math, you buy it at $110,000, take $50,000 to repair this, so it’s $160,000 and then whatever other costs you have. Slim margins, but I ended up getting it locked up for $100,000 from the same buyer that originally offered me $110,000. I waited a week or so. Everybody ends up backing out and I ended up taking a $10,000 less profit, but I still made $10,000 on it. That was higher than the first one that I did, which was at $8,000. I still felt good about it.

I took a bunch of notes here because we’re going to get into this. There is a rule of thumb, and this is very interesting. This is a practice that we have in our business. We look at the first 90 minutes after we blast out a property. It’s primetime. If we don’t have any responses, which is very rare, it’s unique properties.

In 90 minutes, usually the hottest buyers are going to respond. They’re going to be the easiest to work with and they’re going to pay the most. That’s what we found. There’s a rule of thumb that goes, “Never make a decision until the day after. Let it seize and let those other guys see it. Get multiple offers.” I get it because that’s the natural instinct, but sometimes the first offer you get is the best offer.

That would have been double. You would have been $20,000 instead of what you made. I’m going to ring the bell. The other thing to note here is you are negotiating with other investors. You have to go, and anytime you’re negotiating with other investors, you have to put your best foot forward to get the shot.

Whatever you did, there’s something about the way that you approach the seller and the way that you communicated with the seller. The way the seller just internally felt about you, Devin, that they decided to work with you instead of somebody else. That’s a huge feather in your cap. Build on that because you can bring that personality into those deals and feel confident, getting deals that other people can’t. They go in and they’re awkward, they’re not as confident or don’t have the certainty and likeability that you do. That’s really huge.

Negotiating with other people, if you have enough buyers, you’re blasting it out. I’ll say enough buyers is 1,000 or more buyers that you send it out to. We work with between 5,000 and 6,000. We’re always trimming it up and always adding but within those 90 minutes, it’s a good indicator of how you price the property. Congratulations. You ended up netting $10,000, part-time, having somebody else make those calls for you, you’re working full-time, it just starts to build and build. How’s your pipeline of leads now with your caller and with your efforts from earlier?

With my caller now, I have at least 70 leads in my CRM system. I’ll be honest, I’m a little backed up now. I took a breather. Everything work was stressful, all this stuff, but I got a good 70, maybe around 80 to 90 if I consider it warm leads as well. Probably more than that.

You better get back to work. You better get those leads. I guarantee you there are 3 or 4 deals in there that are probably worth $40,000 or $50,000 without a doubt, maybe more. Maybe one deal in there that’s worth that. Make sure you get on that. That’s absolutely incredible. You’re working full-time. You’ve got the stresses of everything going on.

You’ve got work, you come off and then you’re working after. Once you get off, in your free time you’re working on your own business. You start hiring, you start going and all of a sudden, you’ve got the momentum and that’s the blueprint. That’s the game plan, but it all starts with making the decision that you’re going to be proactive. Making the decision that you’re going to reach out to the most distressed property owners in your community because they’re not going to help themselves.

“You guys are just low-balling people. Isn’t that wrong?” No, you have to understand that a lot of people come from the perspective that everybody wants a price for their property. It doesn’t always come down to that. 6% to 10% of our market is in distress at all times, and there are people that will trade equity in their house for speed and convenience, as long as they like you, as long as they understand that you’re going to take care of them, and you did that.

For that, you’ve got paid $10,000. It should have been $20,000, but it was $10,000 and now you’re rolling. Speak to anybody new, anybody getting started, anybody that’s hearing this and is inspired, they want to go out and they want to be successful in this business. What advice would you give them? Anything and whatever, this is your time.

Once you start working with buyers and stuff, $210,000 and up is completely different from $190,000.

I would say don’t stop trying because as I said, I got interested in wholesaling back in 2014 or 2015, but I’m not finding success until just now. That’s because multiple times throughout that time span, I would get into it a little bit, then take months off or a year off. It’s always been something I want to do. If you want to do it, if you take the time and sit down, trust the process, taking imperfect action, ultimately, you’ll find success as long as you’re making sure the action you’re taking is productive. Me personally, even though I’m in corporate sales, I hate cold calling. I feel like real estate wholesale and cold calling are completely different.

If you don’t like cold calling or if you don’t like anything else, there are other ways that you can do it, especially if you’re working part-time and if you got a little money saved up. As I said, I didn’t start finding success, so I hired somebody to do my cold calls because now they’re able to put in the numbers. He’s working for me for 40 hours a week. Now, I have the metrics that I need to get leads.

Dream big with me here. What does this look like? What is the big goal? Where do you see yourself? You talked about changing this for you, your family, the trajectory of being an entrepreneur, getting into real estate and understanding the power of this. What does this look like? What is the big goal?

I break it down into sections. The big goal for me, ultimately, I do want to be in real estate full-time, but I want to get into commercial real estate development. That’s my long-term goal, but I’m starting out on the ground floor, going through motions, trying to learn. I just did my goals for my business and stuff. I want to do 19 to 20 deals. The way I broke that up is I’m getting back on the ball. A deal for a few months, one deal, and then I want to be doing at least two deals a month. I got small incremental goals that I’m trying to hit. Ultimately, I want to be doing this full-time. I want to leave my corporate job. Check back in with me in several years and we’ll see.

I have no doubt that you will. You’re not going through the motions. You’re going through the whole thing. You’re in this, and even though you’re doing a part-time, you are doing it every day, building it, and it’s going to be. You’ve got a runway. You have a goal of three years. I think you’re going to do it in half that time, truly, but absolutely incredible. What an inspiration. How do people get in touch with you? If they want to reach out, if they want to squat up with you or maybe joint venture with you in the triangle there in North Carolina, how do they get ahold of you?

You can reach out to me on Instagram, probably be the best. My handle name is @Aspired20. You can find me there. Just reach out to me. Message me. Your messages would probably go to my general, but I’ll see it eventually. I’m an open guy. I don’t mind talking to people.

Thank you so much, Devin. Devin mentioned a resource, PropStream. You can check that out and trial it at TTPData.com. It is a phenomenal tool. Every single investor should have it. If you’re going to take it seriously, it just cuts out all of the work for you. If you’re interested in joining the most proactive group in real estate investing, it is the TTP family. Go to WholesalingInc.com/TTP. Scroll down and check it out. Check out the testimonials. If it feels good in your gut, sign up for a call. I’d love to work with you personally. Until next time, I encourage you all to Talk To People. See you. I love 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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