Posted on: April 16, 2021

These partners started learning and doing it by themselves before they scaled up their business. Putting their learning into practice and working on some ways to establish their system paid off for them.

In this show, we will have Rodolfo Licon and Miguel Prado. They are the dynamic duo in the Phoenix Maricopa County area. They have been crushing the real estate industry since 2019.

In this episode, Rodolfo and Miguel will talk about their year and a half wholesaling journey. They will share how they built their business and grow it. They will also talk about the marketing strategies that led them to big deals. They will also talk about the benefits of working with real estate agents.

If you are in for a lot of great points to enhance your way of doing business, then this episode is for you. Enjoy and learn from the conversation!

Key Takeaways

  • When they started doing wholesaling and their markets
  • How they started with wholesaling and their challenges
  • On scaling their business slowly but surely
  • Having a vision and building a system for their business
  • Marketing strategies they utilized
  • The benefits of working with real estate agents in their business
  • Breaking down their $50K deal
  • Their challenges and blessings as wholesalers
  • How they work with each other
  • Their recommended good reads
  • Three things that they think new wholesalers should focus on

RESOURCES:

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Episode Transcription

Rafael Cortez:
What’s up tribe? Welcome to the Wholesaling Inc. podcast. I am your host in Wholesaling Inc. Coach Rafael Cortez, and I’m super excited because today we have from TLP Fund, our visitor, Rodolfo Licon and Miguel Prado. They’re a dynamic duo here in the Phoenix Maricopa County area, and they’ve been crushing it since 2019. I mean, I got to know you guys a while back when you guys were first getting started, and I’ve been able to see you guys’s journey from the get-go. So it’s pretty exciting to have you guys over and then just pick your brains on what that journey has been. Thanks for stopping by guys.

Rodolfo Licon:
Oh, man. Thank you for having us.

Rafael Cortez:
You guys have been wholesaling for about what, a year and a half?

Miguel Prado:
About a year and a half, yeah.

Rodolfo Licon:
Yeah. We started wholesaling back in 2018, July of 2019.

Rafael Cortez:
Awesome, and you guys are in Maricopa County right now, right? Are you tapping into different markets? Are you tapping into different areas where you’re wholesaling as well or just here?

Rodolfo Licon:
No. As of right now, we’re just hitting Arizona. We did expand to Texas for a little bit, but we decided to just come back and focus on what we know in our home and try to take over a little bit more of the market, and we’ll see later on.

Rafael Cortez:
It’s good to have like satellite markets, I call them, right? Like virtual wholesale markets for sustainability and growth, but you always want to have a backbone market that you can rely back on, and I mean, that’s for us is Maricopa County as well. So we do venture out, we go to Texas market, or Florida, and different places, but at the end of the day, the backbone that we have is situated here. So we never stopped this market. It’s pretty cool. We’ll tap into it in a little bit. Did you guys start wholesaling together or each one of you start on your own and then just kind of decided to team up later down the road?

Miguel Prado:
Started real estate first of 2018, realtor, and then I heard about a podcast called Real Estate Disruptors. We’ve all heard of it, and then March 2019, I was like, “I got to try this.” So I went and started working as an acquisition manager for Steve and Max from March 2019 until like a full year, March 2020, and that’s how I got started in a wholesaling as their acquisition manager, obviously, learn from the best Steve and Max. I mean, they-

Rafael Cortez:
Completely crushed it.

Miguel Prado:
Yeah, my trajectory on everything, on how I should see sales, wholesaling, everything. So I kind of feel like Rodolfo and I took the long route, but we’ll talk a little bit more about that. But in the end result, it pays off because a lot of people start trying to do everything themselves, and we went like, “No, let’s go learn from the best. See what they’re doing.” And we were up front with them that, “Hey, we’re here. About a year, we’re going to learn, and we’re going to move on.” And they were happy with that, and then we’ll venture off and do our thing. So I started around March 2019, and then Rodolfo will tell his story on how he got started too.

Rodolfo Licon:
Well, I started learning about real estate back then in 2016, but I was still having a job with Gatorade at the time. For me, it was a little bit harder to just jump into the full sell right away. About July of 2019 or August, I don’t know, that’s when Miguel called me and say, “Hey, there’s a pretty good opportunity here where you can actually learn.” And you start working with someone as an acquisition managers, and it’s like an MBA within three months. You learn [crosstalk 00:04:20]

Rafael Cortez:
That’s exactly how I got started too, yeah.

Rodolfo Licon:
So that was pretty cool. Again, like Miguel said, we were pretty up front. We wanted to learn. We wanted to be as good as we could and bring as much value obviously, but the end goal was to part ways eventually and kind of create our own thing which I used to get… I guess it was when we started after a year or so, or less than a year. March of this year, actually when the whole pandemic started that’s when we-

Rafael Cortez:
You pick the right spot. [crosstalk 00:04:47] Yeah, the year 2020, we got hit with a pandemic and a COVID in March. Actually, it’s funny because I have… even a couple of my students started in March, and it was before it hits. I mean, I don’t know, there’s this whole energy thing going on that people felt like there was a shift coming and they tapped into something else. But I have three students that started in March, and I got a couple of clients from the operating system as well that started in the month of March of 2020 before everything just kind of went haywire. Yeah, so that’s interesting, and then you guys got together in March and then decided to put together the company. By this time, you guys already had a picture, right? So you guys did something really clever, which is cut the learning curve. So you got to understand the business from that standpoint. Now when you jumped into it, and then you decided to venture off on your own, what was the biggest challenge that you guys encountered?

Rodolfo Licon:
Based on my experience, obviously, we have the uncertainty of things. We didn’t know what was going to happen with the market. You hear all these stories, especially in March when the whole thing was so new. We didn’t really know what was going to happen. But we did know that at the end of the day, it’s all about consistency, and taking action at the end of the day. So we decided to take responsibility on that route and put the work, and let’s see what happens. We focus on the one thing that we knew how to do best and…

Rafael Cortez:
Which was…? Elaborate on that. Come on, tell me about it.

Miguel Prado:
So we started… Rodolfo and I are the same in terms of like, we think on how we should grow a business where there are a lot of people that try to scale fast and we’re like, “No, let’s take it step by step.” I mean, I’m guessing you’ve read the book, The ONE Thing, right?

Rafael Cortez:
Oh yeah.

Miguel Prado:
Well, that’s like, let’s master one thing and move on. So we started with cold calling. That’s the first thing we did, and a lot of people when they start with cold calling, what do they do? They go and hire Vas because they don’t want to cold call. In this case, we have all the time in the world, let’s pick up the phone, we got dialers, we got data, we started calling for, I don’t know, two months.

Rafael Cortez:
So you guys were actually doing the cold calling.

Rodolfo Licon:
Yeah, we were starting from 8:00 AM till 7:00 PM. We were doing full days of cold calling.

Rafael Cortez:
Oh, man, that’s what it takes. Yeah, especially taken off.

Miguel Prado:
And I mean, we have the money to hire VAs, but who is going to do it better than Rodolfo and myself to do the cold calling and get the work done? So in those first 60 to 90 days, we got, I think, three deals.

Rafael Cortez:
So you got three deals in 90 days, and was that your only source of marketing? It was just cold calling?

Miguel Prado:
For 60 days [crosstalk 00:07:21] We got some same money from those cold calling deals. We decided to incorporate texting, and Rodolfo can elaborate on how we started incorporating texting.

Rafael Cortez:
Cool. So 60 days… Sorry to butt in. I just want to clarify a couple of things. So 60 days into it, you’re cold calling, you’re hitting the phones from 8:00 AM to about 7:00 PM, and you get three deals within that time period. So the same cash, you put it back into the business, and then you start to get more creative, and then do different types of marketing like SMS.

Rodolfo Licon:
Yeah. Actually for the first three months, we actually didn’t pay ourselves. We were putting everything into the company where we’re tapping into our savings for the most part. The focus was to grow to a point where we could utilize a little bit more money for marketing, and try to remove ourselves, and just make the company a little bit more efficient. So yeah, for the first few month, it was just all about calling and-

Rafael Cortez:
It’s pretty interesting, man. You guys jumped into it with a mentality of building a machine, and it’s totally doable, right? It’s a little different approach than what most do which is go in there, and then pursue that deal, and then kind of reset, and start all over again. But if you build it almost with the end in mind, I mean, you can’t create a company like the one that you guys have right now. What’s your average deal flow right now?

Miguel Prado:
I want to say the structure of the business right now, before we talk about that, and you said one thing, Rafael that was really important about how we built a business.

Rafael Cortez:
Mm-hmm (affirmative).

Miguel Prado:
But the reality is like we built it and we’re still building it. We’re nowhere near, but we were able do what we’re doing right now and still growing because of people like you, Steve and Max, and especially our business partner which in August, we joined forces with Templeton Walker, and that’s how we made TLP Ventures, Templeton, Licon, and Prado.

Rafael Cortez:
Awesome. Templeton is a great guy. [crosstalk 00:09:16]

Miguel Prado:
He’s been a blessing to us in helping us create that vision and taking our business… like we joined his wholesaling business, our wholesaling business, we merged it, and we took it to another level. That’s what where we at now, but the sessions we had with you on building our systems, Podio, everything, like we would not be where we are without mentorship.

Rafael Cortez:
There’s this quote. It’s, if I have six hours to chop down a tree, I’m going to spend the first four sharpening the blade, right? The saw, I can’t remember it goes, but the context is that, and it’s preparation. So you prepare, and then you start building and stacking, cutting the learning curve, and then learning just enough to take dangerous action, to just be dangerous in your field, right? You want to just know enough to be dangerous before taking action, but you can’t really hold back, and that’s something that you guys did. March comes in, you jump into putting your business together, and then you have these resources. You’re teaming up with Temp who’s a rock star as well, and then reaching out for consulting in areas that you feel that you need to fill in the gaps, but you’re taking action at the same time which is, I mean, I think the combination of that stuff is key, right? People say knowledge is power, but it’s applied knowledge really that’s power. I mean, you guys are doing a heck of a job at that.

Rodolfo Licon:
Then I think that something that we also have in our advantage and at least, we’re taking advantage of it is that we understand how our strengths and we understand what we do best. So we try to leverage off of them. Because yeah, we’ve started cold calling, and for me, I’ve always been the system guy kind of thing. I studied engineering, industrial engineering. I’m always about the efficiency of processes, and putting everything, and trying to automate it, and that kind of stuff versus Miguel, where he’s highly direct, he’s highly motivated with sales, he’s the killer when it comes to closing deals, and then Templeton with a huge vision and just the mindset that brings and all the relationships and all the doors that he’s been able to open on his own and has been able to just pull us along.
We do things very well separately to come together and just continue growing the company, right? So when you asked me about the deals and how many deals we’re doing on a consistent basis, that didn’t happen just because of cold calling. We had to innovate it, we had identify, I guess, a more efficient way of reaching out people, right? Because cold calling, you can do only so much in a lapse time of a day.

Rafael Cortez:
Right.

Rodolfo Licon:
There’s so many calls that you can do, right? So we want us to reach more people.

Rafael Cortez:
Yeah, there’s a cap to everything, right? If you want to get bigger on that, you add a call center, you add VAs, you just increase the operation that way. One thing that I keep talking about is that it used to be okay to just have one source of marketing. That’s not the case anymore. Now, you have to get and reach people via different sources. So for example, you guys are texting, right? How has that helped your company? What’s the difference between just doing one single type of marketing ,which is cold calling, and then adding a second one to it?

Rodolfo Licon:
So funny you mentioned about cold calling, I mean, let’s put it this way, cold calling, even if we were reaching, let’s say that we were making about a thousand calls a day per person, and we were only having direct contact with people, a hundred people per day. So the reality is that you’re only hitting a hundred person that you’re going to either ask, “Hey, are you interested in selling or not?” And 90% of them or 99% of them are going to tell you no or yes, right? When it comes to texting, now you’re able to, instead of hitting a hundred person per day or 200 in this case because both of us were calling, right now, we’re texting on average 15,000 texts a day, 15,000 to 20,000 texts a day. So the reach that we have in the Maricopa County is much, much greater, right? And we’re able to disregard those that are not interested and just focus on those that are either motivated or have shown some sort of motivation.

Rafael Cortez:
When you’re doing marketing, are you targeting the same list multiple different ways, or is it different lists that you’re targeting?

Rodolfo Licon:
No, we’re doing such a huge amount of text. Well, I don’t know how many texts the other people are getting, right? But for us, it’s 15,000 to 20,000 texts a day. We’re pretty much hitting the entire Maricopa County on an efficient way. So we focus on those that we know…. those lists that are going to be, do you know that they’re going to produce absentee, vacant, high equity, unknown equity, all of those different lists that are everybody knows, and we try to hit them multiple times. Yeah.

Rafael Cortez:
Yeah, these are always cornerstone lists. I mean, why? Because they’re volume. At the end of the day, this is a volume game, right? I mean, the more people that we were able to tap on the shoulder, and see if they’re interested, the more deals that are going to come through the door. SMS and texting, I mean, we use it in my company as well. It’s proven to be a really, really good way of marketing as well. So we combine that with cold calling. So we have the same backbone in terms of how we reach out to sellers. It’s cold calling and SMS which is text messaging. For example, we’re hitting a list of 10,000, 20,000 people. We’ll cold call the same list, and we’ll text the same list. So we’re hitting them multiple different ways, but it’s the same sellers, and then we’ll move on, and come back, and refresh after a period of time. So awesome, man. I love what you guys are doing. Do you guys have anything else in terms of marketing that you’ve explored or tapped into?

Miguel Prado:
So in marketing we have texting, which has been working great, and we have, that’s like more on Templeton side, the referral side, where he has a ton of relationships with realtors, wholesalers. He’s an established buyer, and he works those relationships, and we’re starting to work those relationships too, and you bring deals from that side as well and…

Rafael Cortez:
From the vine, right? From the network.

Miguel Prado:
Network, yes, definitely. I mean, just nourishing those relationships with realtors, wholesalers, and all those relationships, I mean…

Rafael Cortez:
How do you guys work with real estate agents? I mean, I know how we do it in my business, but if you have the right relationships built with agents, I mean, they can really make your business… at least for the beginning of it until you get some traction on your own. How do you approach creating relationships with real estate professionals and then capitalizing on that or using that in your business?

Miguel Prado:
Well, I think you’ve got to perform, right, with realtors because I mean, they’re a mediator., They’re going to represent the seller, and at the end of the day we are… and buyers, we can wholesale or double close the deal, we’re taking it down. [crosstalk 00:15:40] .

Rafael Cortez:
You guys are actually closing on… Do you close on all the deals that you guys take or do you just assign some and…

Miguel Prado:
We assign something [inaudible 00:15:48] and then we take downs. It depends on what we want to do with that deal. But Templeton really showed us and taught us how to nurture that relationship with the realtor. Basically, once you get in a relationship with the realtor, and you perform, and you give them what they want, and you take care of them like, “Hey, both sides of the commission, they’re yours.” “Hey, thank you. Here’s another fee.” Or “Bring us more deals, and we’ll pay you a referral fee from our brokerage because we’re agents as well.” So once you start taking care-

Rafael Cortez:
Very important, very important.

Miguel Prado:
Yeah, they love that. I mean, they make quick money, they make more money, and you’ve closed. They know you closed and they’re going to make more money than a traditional listing. Who you think they’re going to come to next?

Rodolfo Licon:
It’s all about added value. You got to realize how you can be productive, and how can you add value to the other person. Because it’s not about asking and expecting for them to just give you deals out of nowhere, right? So we realized very quickly that realtors, at the end of the day, that’s what they do. They’re realtor. They’re not wholesalers. Now, once in a while, it’ll come up bucket listing which is distressed, and rather than just going through the whole process of putting it on the market, it’s much easier to just offload it with an investor, is going to be a quick cash sale. And at the end of the day, everybody’s going to win, the person’s going to be win, the seller will get their money, the realtor gets to represent both sides of the sale, so they get compensated at the end of the day, and we got a deal as well.

Rafael Cortez:
Yeah. I mean, they’re solving a problem faster for their client, and we’re coming in and solving a problem fast for them. But you’re right, Miguel, the key is to perform, you have to perform, and it’s pretty interesting that you give them both sides of the commission. They make a good chunk of cash, and they’re able to move that property fast. This is a crazy thing. So we think realtors, right, and the real estate professionals. I’m a real estate broker, but not every agent out there knows how to work with investors. Not every agent out there knows what wholesaling is, right? So a lot of these people have their license, and they have access to properties, but they don’t know anything else other than put them up on the MLS and try to find a traditional buyer for something that may need some work, right?
So it’s a headache. But if you build enough relationships, and they understand, they can come to you for something like that, and make money while they’re doing it, I mean, it’s a win-win on every single side because the seller is getting their thing, the real estate agent is getting what they want, and you as wholesalers are building up that network and also getting, of course, the proceeds, right? So it’s a win-win all around. Never shy away from working with real estate agents because they’re professionals in their field, and if you treat your wholesale as operation, as a professional business, you’re going to end up on the same terms.

Rodolfo Licon:
Not only the realtors, also wholesalers, I mean, the new people, not new people but people that is only starting and they don’t have the big buyer’s list. They don’t really know what to do with the deal, how much they can actually squeeze out of the deal? We’ve been able to nurture those relationships with new people that are just getting into the business. We kind of help them how to start a business. We’ve had that same experience in the last few months and just collaborating with new wholesalers, trying to get into the industry have been also productive. At the end of the day, we helped them and…

Rafael Cortez:
You’re tapping into something very important too. Also, when you’re starting off, some people start off with, “Oh, you know what? I have an uncle that buys properties.” And they have a solid buyer on their hands, right? And we all know that the more deals that you do, the bigger the buyer’s list is, the more opportunity you have to sell your deals fast. But also it really comes down to a handful of real buyers. Like I know in my business, I mean, we know our solid buyers by name. I mean, we have, I don’t know, 50,000 buyers on our list, but it’s a handful of buyers that are consistently coming back to you, right?
So now, what I’m trying to get to is that as a new wholesaler, if you’re jumping into it, and then you have a couple of solid buyers that you can reach out, you can JV or venture or partner up with somebody else who has a property, and then you bring the buyer to it, and then make a spread on that. So it’s another way to tap into wholesaling through a joint venture partnership type of agreement with somebody. So there’s so many different ways just to structure deals. Then you can be, at the end of the day, providing a solution for the party that you’re dealing with. That’s the main thing, right? I mean, if we can provide speed and convenience for sellers and buyers, we’re going to be in business. It’s as simple as that, let’s break down one of your guys’s deals.

Miguel Prado:
Okay, so this was a Scottsdale deal. It was a high-end house. ARV, like 750, 700. I saw it 700. Now, it’s more due to the crazy market that we’re in. It’s the lead that came in, texting lead. It was a response [inaudible 00:20:19] back and then respond, “Are you interested in selling?” They respond, “Yes.” That for me, it’s like [crosstalk 00:20:24]

Rafael Cortez:
It’s a gold.

Miguel Prado:
So I think this is when we were still both acquisitions on this deal. The beautiful part is that it’s two of us, right? So Rodolfo was working that lead first, and Rodolfo had a verbal commitment to lock that contract at 435,000. He was locking it up over the phone, like the sales was seamless, like it was perfect, and guess what? A realtor [crosstalk 00:20:54]

Rafael Cortez:
The seller talked to a relative and told them they could get more money [crosstalk 00:20:57]

Miguel Prado:
[inaudible 00:20:57] You can get way more money than that. I can list it for you, et cetera, et cetera, et cetera. And no, she couldn’t get more money. The house needed work. I mean, she could get more money, but we were like, “Oh man, this is going to be a big deal, but..” “Okay. So no, talk to the realtor.” Realtor said she could sell it for 500 in the MLS. That would net her around 470, 475. So, “No, thanks, Rodolfo.” So Rodolfo told him like max 435. So he couldn’t be like, “Oh, I can do this.”

Rafael Cortez:
Me, bump it up from there and start fiddling with the price points, yeah.

Miguel Prado:
But we’re in the same office. So it was like, “Hey Miguel, here’s this lead call it. This is the situation. The pain points, everything.” So we hop into the call and I already know why they want to sell? How much they want? Everything, everything, everything. But there was one thing about this deal that I didn’t want to lock it up over the phone, so we set up an appointment. So I tapped it, set up an appointment, we went over there. It was just a regular wholesale deal but she didn’t know Rodolfo like by [inaudible 00:22:03] . So we always like to go to the buyer appointments. It’s just weird because when one’s talking like the other one is thinking like, “Oh, we say this, this is perfect.”

Rafael Cortez:
So you’re thinking negotiation wise. Conversation wise, yeah.

Rodolfo Licon:
So when I’m talking, the other one is listening, so it helped us both.

Miguel Prado:
We went over there, had a good appointment, we locked it up at 475. We were initially going to wholesale that one at 500. So we’re going to make a 25k rip. We like, we were happy, but we were already partnered with Templeton Walker and like, “Hey Temp, we locked up this deal. We’re going to sell at 500. We already have a buyer.” And we already had a buyer and he’s like, “Pulled up.” And this is what part of the things that Templeton brought to the table, right? He saw things that we didn’t see. He’s like, “No, you’re not selling this for 500. Give me a minute.” He calls us back, and he’s like, “I just sold it for 525.”

Rafael Cortez:
Wow, the power of the network, man. Power of the network.

Miguel Prado:
So we were like, “Wow.” It was just a wholesale, but we didn’t assign it, we double closed it because we didn’t want the… It’s the buyer we worked with which we had problems.

Rafael Cortez:
And it happens, I mean, especially when you have bigger spreads like that. So the numbers are going to work differently depending on the buyer, right? So you have people who are looking for properties to come in and flip them, and then you have people who are looking for properties to come in and buy, and hold or add to a portfolio, or do something else with them. So you had a buyer at 500, and then Temp came back, and he has another one that 525. So you just added $25,000 to that deal. The idea is that, you know what? We’re going to split this three ways, but you’re also adding to the resources that you have. So it doesn’t mean that you’re necessarily splitting the profits or getting a cut on your part. It means that, yeah, you’re tapping into a bigger market or tapping into a bigger pool of resources and better stuff can happen from there.

Miguel Prado:
Absolutely, and we don’t see it in like splitting. We just see it as a business, like business, business expense, marketing budgets, everything, and at the end of the day, we distribute. It’s not like, “Oh, we’ll make…” No, it’s business comes first then we’ll wait from there.

Rafael Cortez:
Cool. Cool. Now, you guys have a pretty cool understanding of what it is to actually have an operation in place. I mean, that’s crazy. So you locked it at, what was your lock price again on that?

Miguel Prado:
475.

Rafael Cortez:
475. So I mean, you ended up with a $50,000 deal.

Miguel Prado:
Yeah, that’s right.

Rafael Cortez:
Yeah, awesome. Did that happen while you guys were still cold calling? Was that one during the first 60 days that you were talking about earlier? [crosstalk 00:24:40]

Rodolfo Licon:
No. Well, yeah, I think it was the last 90 days. It was right where we were in talks with Templeton about merging. So that was one of the… I don’t know if it was before we had the full both companies merged or was [crosstalk 00:24:58] but we were already working, yeah, we were already working with Templeton.

Miguel Prado:
But we were already merged.

Rodolfo Licon:
Yeah, we were already merge? Yeah, and that was through SMS. So cold calling… We put the brakes on cold calling for a bit because SMS was working very well, and referral business, we were trying to grow the referral business as well, and cold calling just didn’t make sense at that time. Now, it is different, but we just kind of wanted to focus on the things that were working at the time and trying to expand on those, so it was an SMS deal.

Rafael Cortez:
It’s the smartest thing. I mean, if you already know that a certain vehicle is working, meaning in marketing, why break the wheel? [crosstalk 00:25:42] Yeah, you have to adapt, but you always start with whatever you have available, right, which is exactly what you’re going to do. And it’s funny, man, but to beginning wholesale, you don’t need more than a cell phone, paper, and pencil to start getting… that’s your system, like that’s your whole operation. You can literally begin with that stuff. From that point, you look for properties, you either buy lists, you drive around, and just keep trace. There’s a couple of different ways that go into it, but it doesn’t take much.
The point is that you have to start where you stand, you’re never going to be completely ready, and you guys, this case, you guys made a very, very smart move, which is jumping into a place that already had a lot of action and movement in it. That’s exactly how I started as well. I mean, I got thrown into the fire right out of the gate when I started doing acquisitions, and that thing, it just evolved into something else, and something else, and something else, and next thing you know, things are starting to take shape, so I love it. As a wholesaler, both of you, and this is individual questions, but what is your guys’s biggest struggle?

Miguel Prado:
I’ll let Rodolfo start.

Rodolfo Licon:
I think as a wholesaler, is always trying to be innovating, right? There’s always going to be competition, especially in our market. I mean, you know it’s crazy, right? So everybody and their mom can be a wholesaler, and you always got to stay sharp. So for me, I guess my biggest trouble would be just breaking my comfort zone and trying to learn off of what others are doing to continuing innovating, continue growing the company, that for me is the biggest thing. How can I maintain the efficiency of the company and how can we continue to remove non-value-added steps into the systems and build procedures that are just going to be sustainable without us trying to, or constantly having to be managing that particular process within the whole organization? Does that make sense?

Rafael Cortez:
Yep. You’re the thinker. You’re the process guy in building this thing into machine. What about you Miguel, what’s your biggest struggle as a wholesaler?

Miguel Prado:
As a wholesaler, I think, and especially as a sales… like I’m more focused on the sales is that feeling that you’re always feeling… like your pipeline could be loaded with leads and potential deals, but you always feel that you don’t have enough. That feeling that where’s the next deal coming from? Like, where are all my leads that I had two weeks ago? I don’t know. It’s a weird feeling because…

Rafael Cortez:
I’m going to challenge that a little bit. Is that a curse or a blessing though? Like if you felt that you were settled, I mean, wouldn’t you stop and kind of slow down a bit?

Miguel Prado:
I think it’s a blessing because, I mean, especially since we have a slow week, right? We felt like last four weeks been, they have been slower than usual, but we were running the numbers because we have monthly meetings, weekly meetings, KPIs, and we had our meeting, right? And I’m like, because I was stressed and started Rodolfo like, “Dude, what the hell is going on? We’re not…” Because we were getting two, three contracts a week, like we were killing it. “What’s going on? What’s going on?” And then we went back, reviewed our KPIs. We’ll, Rodolfo like, “Hey, here’s what we got. Take a look.” And I’m looking at the numbers. I’m like, “This is not bad, why am I complaining?”

Rafael Cortez:
You just used to that high output type of a deal.

Miguel Prado:
Exactly. But I think it’s a blessing because we’re never satisfied. Like we could have a $200,000 a month and this is what Templeton, he’s still our mentor, he’s our business partner, but he’s still our mentor. I mean, he’s way ahead of us in a lot of things, and we’re blessed to have him by our side, and teaching us, and guiding us. He’s challenged our mind and financial blueprint in a lot of ways that we don’t want to settle. We could be having a $200,000 a month and then Templeton ask the questions like, why aren’t we having a $400,000 a month?

Rafael Cortez:
It’s a mindset of growth. It’s a mindset of growth and staying on it.

Miguel Prado:
Yeah, $400,000 a month, like it is true, and that’s helped us a lot and never being satisfied. We’re like, “Damn it. We only got eight deals this month.” It’s like, “Why?” To a lot of people like, “Man, you got eight deals but why didn’t we get 16?” So that I think it’s a blessing that we’re never satisfied. So we’re never going to stop trying to grow or evolve or innovate.

Rodolfo Licon:
And at the end of the day we continue being grateful, right? So we appreciate those eight deals. We appreciate the $200,000 a month. We obviously are happy with it, but there’s always that follow-up question of, what are you going to take to make it a $400,000?

Rafael Cortez:
To keep expanding and, just moving forward. I love it, man. Give me a recommendation on a couple of books. I know you guys are readers, and because we’ve talked about that before, so give me two books that people should tap into, and then I’m going to ask another question before we wrap it up.

Miguel Prado:
Yeah, is it just two books, dude? Come on man.

Rafael Cortez:
I can talk to you.

Miguel Prado:
I think it depends on your roles, right? I’ve read books from systems which is everything. But I read those books, I’m like, “Ah, this is not fun.” So I’ll let Rodolfo answer those but…

Rafael Cortez:
I like how you guys just throw the other guy under the bus for no apparent reason. [crosstalk 00:30:53] Is that how it works when you guys are negotiating? Like, “He’s got it. Oh, I think about it, and then come back to me.”

Miguel Prado:
[crosstalk 00:31:07].

Rodolfo Licon:
No joke though. He touched on something very important, so no joke. Actually Miguel is handling the whole negotiation and the seller will say something that I take it as some motivation point or a pain point that we call it. And Miguel is thinking 3000 miles per hour, just trying to go through the whole negotiation, and what’s the end point. And for me, then it’s easy to just jump in real quick and say, “Okay. Hey, hold on a second. Talk to me a little bit more about that.” We got deep into pain again, and so we obviously collaborate with each other too, but yeah, it’s how it works.

Rafael Cortez:
That’s a great dynamic guys.

Miguel Prado:
Let me do three books, not two.

Rafael Cortez:
All right. Fine, fine. I’ll give you three. Come on.

Miguel Prado:
Everybody says this book… this it just for real estate, right? Rich Dad Poor dad. Everybody needs to read that [inaudible 00:31:58] little bit more books on my personality type, so that one. The Compound Effect by Darren Hardy, I think is a fabulous book and just teaches you how to be consistent and the importance of how it will compound into everything, and I think our business is an example of a compound effect. How we started like first month, one deal, second month, one deal, and three and four, and right now, we’re consistently getting six to nine, right? And last book is a sales book, You Can’t Teach a Kid how to Ride a Bike at a Seminar. I mean, just because I’m a sales guy, I’m going to say that book, you got to have a system, and I know Max and Steve teach a lot about having a sales system. I learned from them. So I’m blessed. But yeah, I think those three books for me are probably the most important.

Rafael Cortez:
Nice.

Rodolfo Licon:
I’m horrible at remembering names. But I know for a fact, obviously, the Rich Dad Poor Dad, that was for me the first book that I actually read that point me to the right direction of investing in real estate. But then you have so many like the Clockwork, and The ONE Thing, and I don’t even…

Miguel Prado:
Traction and Rocket Fuel are your books-

Rodolfo Licon:
Traction and Rocket Fuel [crosstalk 00:33:08] I mean, trying to identify who’s going to be the integrator and the visionary, and who’s taking charge of what, and that’s what I thrive most for the most part. That’s what I choose to read just to be a little bit more in my… That’s kind of my thing, right? So that’s overall. I mean, you touch a bunch of good books.

Rafael Cortez:
And you’re right, I mean, as far as systems and setting up the foundations of a business, I mean Traction, it’s one of the best ones out there. I mean, it makes it easy to understand how the whole process works or should work. Now, what are the top three things that new wholesalers or aspiring wholesalers need to be focusing on when they’re starting of?

Miguel Prado:
I’ll let Rodolfo answer first, and then I’ll answer.

Rodolfo Licon:
I think that’s a very easy question, because people tend to over complicate everything, and you start watching all these videos, and YouTube videos, and you got to have all the systems, and you have to have the perfect Podio, and you have to have the perfect CRM. It’s not about having the perfect tools in place for you to start working. It’s the other way around. It’s just taking action, start driving and start door knocking, start calling from your cell phone, grab a Google phone number, like do the small steps. Be consistent. A lot of people just think that it’s going to happen overnight. It’s just not that way.
I mean, you might get lucky, but it’s not going to be that way every single time. They have to have that emotional maturity and just be consistent on what you believe is going to happen, and just put the work in, and the results will pay off. It’s undeniable. We all know this. If you put the work in, it’s going to pay off, but you just got to be consistent and start taking action somehow. Otherwise, you’re just going to stay on the sidelines all the time.

Rafael Cortez:
I love it. What about you Miguel?

Miguel Prado:
I’ll leave from what he said started with massive action, but not just massive action, massive, consistent action in everything.

Rafael Cortez:
Staying on it. Yeah.

Miguel Prado:
Make a mess and fix it up later with the money that you get. [crosstalk 00:35:03]

Rafael Cortez:
Throw spaghetti on the wall, right? When you have no idea what’s happening, throw spaghetti on the wall and then see what sticks.

Miguel Prado:
So yeah, that’s the first one. The second one is learn how to bring value to other people like you. I mean, because there’s so many big players surrounding us, you, Max, Steve, Templeton, so I’ll talk a little bit about that bringing value on, because we wouldn’t be where we are without Templeton. So how do we partner with Templeton? We started bringing value like in June. How did we bring value? Deals, opportunities for Templeton. So bringing value, bringing value, and we were like, “Hey, we kind of worked night together.” But how did that happen? By us bringing value to Templeton, which I mean, he’s years, years ahead of us, and he’s still our mentor. So then guess what? We’re partners with Templeton Walker, and I told Templeton the funny thing, have you read the book Think and Grow Rich?

Rafael Cortez:
Of me? Or I guess you mean.

Miguel Prado:
Absolutely.

Rafael Cortez:
Oh yeah.

Miguel Prado:
Someone wanted to partner with Thomas Edison, I think it was.

Rafael Cortez:
Oh yeah, and they kept thinking about it, and thinking about it, and thinking about it.

Miguel Prado:
Dude, that was us. We were like, I literally envisioned myself being a partner with Templeton Walker, and it happened. It didn’t just happened because I envisioned it, we took action, we brought value. So bring value, number two, and number three, mentorship. I mean, mentorship, get guidance from your mentors. We have a lot of mentors. I mean, I consider Rodolfo a mentor. I mean, Templeton’s a mentor, and dude like you, I don’t think our system would be where there at right now without you and [crosstalk 00:36:41] your operating system, your guidance, the talks we’ve had at Real Estate Disruptors, the one-on-ones that you’ve been. So kind enough to sit down with us and just open your mouth, and just like more value out, like more value in front of us and [inaudible 00:37:00]

Rafael Cortez:
Thanks, man, I appreciate it. Yeah, no, so there, you guys have it. You guys are killing it, and you guys are doing great. I’m so happy to see how this whole thing has changed literally since March when you guys started doing this in the middle of a COVID, when everything was supposed to be going downhill, you went the opposite direction through consistent action, through massive action, through increasing your network, bringing value, and then doing all the right things in the right order, man. It’s great. It’s amazing to see you guys grow. I’m so happy to be a part of it, and I’m excited to see what you guys are going to come up with.
Because, I mean, when you have that fire built into you, when you have the desire to do the right thing, and then to give, and push it forward, and then just get bigger, and make a bigger impact, magical things happen every single time. So thank you guys so much. I appreciate you guys sharing your story with us and being a part of this, man. I love it. I love it.

Miguel Prado:
It’s a pleasure [inaudible 00:37:53] for having us here.

Rodolfo Licon:
Yeah, it’s an honor for having us here. I appreciate it.

Rafael Cortez:
We’re going to do it again. Watch. We’re going to touch base in another six months and see how great you guys are growing the company. So yeah, there you go tribes. Thanks for listening. There’s been no better time than now to take advantage of the best opportunity out there, which is real estate wholesaling. So head on into Wholesalinginc.com and set up an appointment, have a conversation. If it works out, I look forward to working with you in person. Until then, stay focused, stay tuned, you got this.

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