Posted on: May 11, 2021

There will always be someone who will excel and exceed expectations, especially in real estate. More amazing if that person is just an 18 years old high school student closing $106K in real estate deals in just eight months of wholesaling! It may sound unbelievable, but it is real! How can someone so young do it?

Carter Libis joins Brent in this episode to share how he closed massive deals in the first eight months of wholesaling at his very young age of 18 while juggling his time with his studies as a high school student. Not only that, he has some flips going on as well.

In this episode, Carter will talk about how he started his real estate wholesaling business, getting massive deals, and expanding it. He will also talk about how he got deals from cold calling and Facebook Messenger. Also, Carter will share how his dad influenced him to do real estate and about doing it together. Also, he will share a little about pricing and some advice for the listeners on doing cold calls.

Get all the inspiration you need from Carter in this episode on acting on his goals to build his real estate business while he is young. Take some note of what he did to achieve his goals that might help improve the way you do things in your business.

Key Takeaways

  • Carter talks about the house flip that he is currently doing
  • How he got started in real estate wholesaling
  • What he plans to do with his $106K earning
  • On expanding his market in Prescott, Arizona
  • Where he got the confidence to make cold calls at 18
  • How many cold calls he makes and where he does it
  • On taking his next step in the real estate business into fixing and flipping
  • On learning to do the real estate business from his dad and doing it together
  • His ‘ARV – 0.84% – repairs formula’ and his average wholesale fee
  • Getting his $22k deal through Facebook Messenger
  • His advice on being consistent in doing cold calling
  • His first deal after doing his first cold calls
  • On making an impact through his Youtube Channel
  • Where else to get hold of Carter

RESOURCES:

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Episode Transcription

Brent:
I said you’ve done eight deals, 106K and you got a flip going on?

Carter Libis:
Yes. Yes.

Brent:
How that flip going?

Carter Libis:
It’s going good. We, if we just listed a few days ago.

Brent:
Okay.

Carter Libis:
It’s actually just like a normal cold call we came across it.

Brent:
Yep. Who called?

Carter Libis:
I called.

Brent:
You called?

Carter Libis:
Yes, I called it. It was a- I pulled a mobile home in Prescott.

Brent:
Yeah.

Carter Libis:
And we came across, I got them low and I told dad about it. I’m like, “I might have this guy pretty low and maybe we could take it down and-“. He’s like, “Yeah.” You know the comps in the area were like 300, 315-

Brent:
Yeah.

Carter Libis:
And we had it for 170.

Brent:
Oohh!

Carter Libis:
Put about 18-

Brent:
What list was it from?

Carter Libis:
It was a Prescott mobile list.

Brent:
Okay, mobile homes. Okay.

Carter Libis:
But this area, I mean, it’s beautiful.

Brent:
Yeah.

Carter Libis:
Its manufactured.

Brent:
Right. It’s retirement-

Carter Libis:
Yeah, exactly.

Brent:
Like retirement areas that people-

Carter Libis:
We actually rented right by the house. It’s right by a golf course. It’s beautiful. So we locked it up for 170. I met him at a Denny’s.

Brent:
Yeah.

Carter Libis:
And we decided to take it down ourselves and we just listed it a few days ago for 335.

Brent:
And?

Carter Libis:
We have about 215 into it.

Brent:
Okay.

Carter Libis:
We’ve had about quite a bit of showings so far. No offers yet, but we just listed it.

Brent:
Okay.

Carter Libis:
You know, so.

Brent:
Now can you get financing for this mobile home?

Carter Libis:
Yeah. So it’s actually unique situation. We have a friend, his name’s Rodney. He owns a landscaping company.

Brent:
Yeah, yeah.

Carter Libis:
And he funded the deal for us.

Brent:
Okay.

Carter Libis:
The full 170. Cause we told him about it and he knew how good of a deal it was.

Brent:
Yeah.

Carter Libis:
So he was comfortable with it and it worked out pretty good.

Brent:
The amazing thing is if people know what you’re doing-

Carter Libis:
Yeah.

Brent:
They want to be a part of it.

Carter Libis:
Yeah and I actually sold- I wholesaled him a lot, too.

Brent:
Right.

Carter Libis:
Now we put a mobile home, so I mean, we have a good relationship with each other. So it worked out pretty well.

Brent:
Tell everybody when you got started, how old were you and whether or not you were in high school?

Carter Libis:
Yeah. So COVID happened. It was like almost a year now.

Brent:
Yeah.

Carter Libis:
So it was like March, you know, April because I just turned 19, you know, three days ago.

Brent:
Yep. Happy birthday.

Mike:
Yeah let’s give him a happy birthday.

Brent:
Happy birthday!

Mike:
Happy birthday!

Carter Libis:
Confetti shoot down.

Mike:
That’s right.

Brent:
Not yet.

Carter Libis:
No. I started back like, it was about May 1st, I think was so it’d be almost a year now. And I know I was watching you, watching a lot of videos and I just kind of started. I think the main thing was for me is I just kind of jumped into it right away.

Brent:
Yeah.

Carter Libis:
And I wasn’t waiting to learn everything so I think that really helped me out. So, yeah I mean I just started sort of making calls.

Brent:
So you didn’t know every part of the process and you just started?

Carter Libis:
No.

Brent:
Right.

Carter Libis:
I mainly liked you because I mean, you can, you can just call.

Brent:
Yeah.

Carter Libis:
I always think, “Oh, I got to spend all this money on-”

Brent:
That’s what we’re talking about, yeah.

Carter Libis:
All that type of stuff. So I’m like, oh, you’re saying I can just, and I got all this free time. It’s COVID, I don’t got school. So I’m like, I’ll make some calls and it worked out pretty well.

Brent:
Worked out perfect.

Carter Libis:
Yeah.

Brent:
Worked out to the tune of a 106,000 and a flip that looks like a $70,000 deal.

Carter Libis:
Yeah, it’s crazy. It doesn’t really sink in.

Brent:
Right.

Carter Libis:
You know, the 106 so far. I mean-

Brent:
So what do you do with it?

Carter Libis:
Well –

Brent:
You just turned 19. What do you do with $106,000?

Carter Libis:
Yeah, so cold calling now, I’m really looking to buy my first rental.

Brent:
Okay.

Carter Libis:
You know, my whole goal was to build up this cash with wholesaling.

Brent:
Of course.

Carter Libis:
And then buy a rental.

Brent:
Yeah.

Carter Libis:
So that’s like the main goal. I know that’s how you get the wealth started and everything.

Brent:
Yeah.

Carter Libis:
Cashflow per month.

Brent:
That’s it.

Carter Libis:
You may build a little team with the wholesale thing and yeah. I mean, that’s kind of the main thing here. And with the flip going on, you know, that should be a nice payday.

Brent:
Yeah.

Carter Libis:
I think it’ll all work out. To have some good things going on.

Brent:
And you just moved to Prescott from where?

Carter Libis:
South Dakota.

Brent:
Right. Are you specializing in Prescott?

Carter Libis:
Yeah.

Brent:
Cause Prescott’s like 90,000 people. Right?

Carter Libis:
50,000.

Brent:
50,000?

Carter Libis:
I mean it’s growing.

Brent:
Okay.

Carter Libis:
I think the Google population- [inaudible 00:04:33]

Brent:
But speak to people that are in the smaller markets that are like, you know, I need to go expand, expand, expand. I need to do it virtually because you know, there’s not enough people here. You’re in your market-

Carter Libis:
Yeah.

Brent:
Making the calls yourself, right?

Carter Libis:
Yeah.

Brent:
Still?

Carter Libis:
Yes. So the only list I’ve pulled is, so I got Prescott, Prescott Valley, which is like 10 minutes away.

Brent:
Yeah.

Carter Libis:
Which is another 40,000. So mainly just calling around, you have Pike county, which is the population of 250,000.

Brent:
Yeah.

Carter Libis:
Not like Maricopa, which is-

Brent:
6 million.

Carter Libis:
Yeah. There you go. So it’s a lot smaller, but I know there’s, there’s deals everywhere. There’s a lot of deals out there. You just got to put in the calls and stay consistent. And there’s really there’s deals everywhere cause that’s, I mean, I think I texted you after my first list. Like, “Hey, what market do you suggest I go through next?” And you’re like, “Stay in there until you need to move.”

Brent:
Yeah.

Carter Libis:
So I’m like, all right.

Brent:
Well there’s a lot of buyers. I mean, we, we do deals with Prescott, Prescott Valley. I mean, there’s a lot of buyers.

Carter Libis:
Yeah, there’s a lot of buyers. I’ve gained a lot of good contacts through there and I’m just going to keep rolling with it until it runs dry, which it never will.

Brent:
So how do you get the confidence to be able to make these calls at 18 years old? You know what I mean?

Carter Libis:
I think God blessed me with the, you know, kind of ability to talk to people, which is awesome. But I mean, like I said, I mean, I just kind of took action right away. I wasn’t really scared, you know, hesitant to do anything. So I mean, I just kind of jumped into it. You know, I read Rich Dad Poor Dad, really got my mind turning. You know, I really wanted to make as much money as I could so I’m like if I got to talk to strangers, it’s not like I’m looking at them in the face, you know, it’s over phone. Worst they can say is no. So-

Brent:
Yeah.

Carter Libis:
I mean, I just started up and I’ve never really had too much of a problem talking to people.

Brent:
Yeah.

Carter Libis:
But I think I looked at my Mojo. I think I’m about 45,000 calls in so far.

Brent:
Right.

Carter Libis:
So any-

Brent:
How many people have you talked to, do you know?

Carter Libis:
It’s about 5,000.

Brent:
Uh-huh (affirmative).

Carter Libis:
So 5,000 conversations.

Brent:
You’ve had 5,000 conversations with strangers?

Carter Libis:
Yes.

Brent:
You feel like you could talk to anybody?

Carter Libis:
When I, when I talk to strangers now it’s kind of more like a lot of people when they talk to me like, “Oh yeah, you’re very well-spoken. I thought you were much older.”

Brent:
Yeah.

Carter Libis:
Talking on the phone and everything, so.

Brent:
Yeah.

Carter Libis:
It’s a good compliment. But yeah, when you talk to 5,000 people, you’re going to learn how to talk.

Brent:
That’s right, that’s it. And that’s why the, you know, that’s what we were talking about earlier. Mike, you brought this up, you know, you got to talk to a thousand people before you hire anybody. You’re talking to 5,000 people in, essentially virtual high school. You’re going to, you’re going to virtual high school. You’re making calls, you’re making this and building your business at now freshly minted, 19 years old.

Carter Libis:
Yes.

Brent:
Right. So that’s incredible. Where do you do it from? Do you do it from your bedroom? Do you do it from a library?

Carter Libis:
Yeah, so-

Brent:
Do you do it from an office, a den? Like where do you make your calls?

Carter Libis:
Yeah, so for the past 10 months, I, I call about three hours a day, about five days a week. And it’s all my bedroom right there on my desk. So I mean, it can get old and know waking up and especially with COVID and quarantine and everything. It’s kind of like that’s all life is.

Brent:
Yeah.

Carter Libis:
Wake up, eat and make calls.

Brent:
That’s it.

Carter Libis:
It uh-, I feel like grinding when you’re young, when you have all this energy, it really will help. It already is. So yeah. I mean just making calls in my bedroom.

Brent:
So what is your schedule? Do you do it in the morning or the afternoons, your calls?

Carter Libis:
Yeah. So I try to start like around nine, 10 ish. I go till about one, two. You know, and then normally I’ll just go to the gym or something to get off the chair for a little bit. Yeah. I mean, kind of like late morning until mid-afternoon. Sometimes I’ll start later. But as long as I get them in, you know, I, I talked to the same people normally like contact wise throughout the day. So there’s not a secret time or anything.

Mike:
Also I mean, Brent, just like one of the cool things about Carter, like even a year in, you know, he started wholesaling and already evolving the business. Right. Taking the next step into fix and flipping and you know, who knows from there.

Brent:
That’s it. Well, that’s the point.

Carter Libis:
And I mean, the fix and flip was, I mean, it’s crazy. You know, I think it was listed on my 19th birthday. Which I’m just telling you, like a year ago from now when I was 18, before I reached that point or anything, I was, I was going to play college and golf, right?

Brent:
Yeah.

Carter Libis:
I had no idea what I wanted to do.

Brent:
Yeah.

Carter Libis:
So when COVID hit and that’s when my mind shift, really, you know it just shifted.

Brent:
Yeah.

Carter Libis:
It totally shifted. And then when we found this deal, because dad was like, you know, I know you found it and I forgot to mention, I was offered. I sent it out to one of my buyers and I just met. He’s really good guy. He offered me-

Brent:
Is it Luke?

Carter Libis:
Rick, Rick.

Brent:
Oh yeah, okay. Rick.

Carter Libis:
Yeah. Not Luke, but he offered me 225 for it.

Brent:
Yeah.

Carter Libis:
And that’s a $55,000 wholesale. So, that was really hard to turn down.

Brent:
Right. Why did you turn it down?

Carter Libis:
Well, mainly cause I know I can make that and my dad can make that [inaudible 00:08:55] deal, you know, and more.

Brent:
Okay. Okay. How does your dad fit into this?

Carter Libis:
He buys a lot of real estate. You know that’s kind of how I got into it. You know, he was going to come up kind of, he managed it. He did a lot of the rehab himself.

Brent:
Yeah.

Carter Libis:
So that was kind of his end on the deal.

Brent:
Yeah. So he’s managing the rehab, you’re finding the deals and then you split it with him?

Carter Libis:
Yeah so for this one, it was, I found it, you know, he got funding, you know, it was our friends, so it wasn’t just him, but he did a lot of the work himself. You know, when he does projects, he kind of goes all in on it. You know, we use some of my funds for the repairs, some of his, so, I mean, we kind of just kind of went on this together. And you know, it was a good learning experience. I gained a lot of handyman contacts as well.

Brent:
Sure.

Carter Libis:
It was awesome, in the future when I do my own flips. But anyhow, just mainly just learning the process, you know, the closing costs, all that kind of stuff adds up, you know. So when I’m finding wholesale deals, like I know that more, you know, when I go into negotiating and stuff. But yeah, we were splitting the profits 50/50 and you know, I think, I think we’re all in about 215.

Brent:
Nice.

Carter Libis:
You know, and the market’s crazy there.

Brent:
And-

Carter Libis:
It’s absolutely crazy.

Brent:
When you say that your dad buys a lot of properties, what does that mean?

Carter Libis:
He’s mainly, he’s not doing too many flips. He’s-

Brent:
Right.

Carter Libis:
Prescott’s a great Airbnb market just because it’s so beautiful up there. But I also found a cabin in the woods, Prescott Pines, it’s beautiful. He bought that one for me and we’re going to turn that into an Airbnb. He also just closed down on like a duplex type office space, but I mean, he only just rentals [inaudible 00:10:18]

Brent:
Right, so filled in the portfolio. And so you’re following those footsteps.

Carter Libis:
Yeah. He likes I don’t find the good deals now.

Brent:
I bet he does. I bet he does.

Carter Libis:
But no, it’s been working out.

Brent:
So when you’re looking at a deal and you’re confident, what are you looking at? Like ARV minus what, what, what, what, you know what I mean?

Carter Libis:
Yeah so I’m trying to follow that equation that you put out there.

Brent:
Yeah.

Carter Libis:
But the market’s so hot right now, a new ARV minus even, like 15%, not the normal 30%. I think that’s when I first started learning. So ARV like times 0.8, 0.25-

Brent:
Yeah.

Carter Libis:
Minus repairs, you know, it was kind of what I could step-

Brent:
Wait and that works? Because I tell everybody, ARV minus 0.84, depending on the market, because some of the markets are lower.

Carter Libis:
Yeah.

Brent:
Fix and flippers going to look for at least a minimum of $20,000 profit. So if that doesn’t fit into that 10% of the, or the 16% that you take off the top-

Carter Libis:
Yeah.

Brent:
Then you have to adjust, minus repairs is the wholesale price and then subtract from there.

Carter Libis:
And I think people out there when you’re, when you’re figuring out that equation there, and it’s not perfect, you get a little scared.

Brent:
Yeah.

Carter Libis:
But just so you know, I mean, the market’s crazy right now. There’s room there.

Brent:
I know.

Carter Libis:
A lot of room.

Brent:
I know.

Carter Libis:
You match that equation, you know, I think you’re going to pick a pretty good field.

Brent:
Yep.

Carter Libis:
Don’t be scared to even go up a little bit. The market’s crazy right now.

Brent:
What’s your, what’s your average wholesale fee?

Carter Libis:
Yeah. So my first one was like 3000. So take that one away. It’s about 16, 17,000.

Brent:
Yeah. I mean the numbers say it like that, yeah?

Carter Libis:
Yeah. Whatever 106 divided by 8 is or whatever, but yeah, man, I’m [inaudible 00:11:56] pretty good. You know, and even one of them I found off Facebook messenger.

Brent:
Yeah.

Carter Libis:
It was my biggest deal, 22,000.

Brent:
Yeah.

Carter Libis:
I just messaged a rental off Facebook Messenger.

Brent:
What do you mean? So it breaks that down.

Carter Libis:
Yeah so when I’m calling, sometimes I go on to Facebook, right, and they’ll have rental listings.

Brent:
Yeah.

Carter Libis:
They’ll have, you know, the, an apartment for rent 800 bucks a month and you’ll be able to message them. So I just message them, I was going through like normal and just being like, “Hey, I just want to see if you’d consider an offer on your property to sell on.” They were a young couple and like, “yeah, we actually been thinking about selling.” And it was in Dewey, so it was like 20 minutes from where I live. So I went down there the next day. I think I locked up for like 297 and I sold it for like 320.

Brent:
Incredible. From a Facebook messenger? Ooh, here we go.

Carter Libis:
Crazy.

Brent:
What do you think? That’s incredible, right? Yeah. I mean, honestly-

Carter Libis:
It’s a good hack. I mean, when you’re making calls and you’re, you’re bored, you’re playing video games-

Brent:
Send messages.

Carter Libis:
Go to Facebook and send messages.

Brent:
Yeah. People are like, well, what happens when text messages, like they stopped blocking the, the mass text messages.

Carter Libis:
Yeah.

Brent:
DM.

Carter Libis:
Yeah.

Brent:
Somebody’s going to create a bot that, you know, just automatically scrapes and sends things. You know what I mean? That’d be interesting. Maybe you’ll build that, you know, think about that. Yeah. There you go. That’s the, that’s the next-

Carter Libis:
Yeah and you can’t message all of them, but the ones that say- you know-

Brent:
Yeah.

Carter Libis:
They’re going to be right to the owner [inaudible 00:13:13]. They’re going to be on Facebook out throughout the day. So they’ll see your message.

Brent:
Talk to everybody. That’s, you know, they’re seeing an 18, 19 freshly 19 year old making calls, doing deals. Maybe they’re apprehensive to make calls. Maybe they’re trying to fit it into their, their schedule and their world. They’re not sure if it’s going to work. What would you say to somebody like that?

Carter Libis:
So I’d say the biggest thing is, for me, it’s just really just being consistent, you know? So I started out, I think maybe just like an hour, a day, 30 minutes. I mean, if you guys are working your nine to five and you’re just burnt, you know, just try to fit in like an hour maybe before you go.

Brent:
Maybe even 15 minutes.

Carter Libis:
Exactly. 30 minutes-

Brent:
It just builds the habit. And then all of a sudden, the funny thing is you start liking it.

Carter Libis:
All it takes is just one conversation.

Brent:
Exactly, yeah.

Carter Libis:
Yeah. No and then, like you said, you kind of just build energy off of it and you know, there’s a lot of no’s that can kind of wear you out, but you know, when you get that one, yes-

Brent:
Uh-huh.

Carter Libis:
It’s 15, 20 grand, you know, it just makes it all worth it.

Brent:
I remember when I first started making calls and I was like, you know, calling and calling and somebody who was like, ” Yes, I would consider it.” And I was like, “Whoa!”
Yeah.

Carter Libis:
“This is it?”

Brent:
Yeah.

Carter Libis:
“This is it!” And then I got obsessed with it. And then I was like consistent for years and years and years and years. And then I started hiring people, but I was calling forever. I mean, I talked to 45,000 homeowners, you know what I mean? And you can imagine, because I mean, you’ve already talked to 5,000 of them and you just get into that rhythm and you get it. Like it gives you that juice of it. It really is exciting.

Brent:
Yeah. But I think just the main thing is if you guys can stay consistent, you know, even five days a week, just make your calls, it’s going to mean the world of a difference.

Carter Libis:
That’d be, that’s all.

Brent:
I don’t know what kept me coming back to make calls. It’s not like it’s fun right away.

Carter Libis:
Right.

Brent:
And I just kept doing it. Yeah. It’s kind of, then it gets, you know, of your daily routine.

Carter Libis:
How long did it take you to get your first deal? Let’s see it probably about a month.

Brent:
Yeah.

Carter Libis:
About a month. So-

Brent:
Tell, tell everybody about this. If I’m telling everybody 90 days from the first time you talked to them to the time that you get closed is average.

Carter Libis:
Yeah.

Brent:
But you got your first deal closed in a month or just locked up in a month?

Carter Libis:
Let’s see. It started about in May. I think it closed middle of June.

Brent:
Yeah.

Carter Libis:
So a little over a month and then it closed.

Brent:
That was the little guy.

Carter Libis:
Yeah.

Brent:
That was [inaudible 00:15:16].

Carter Libis:
Totally messy.

Brent:
Yeah.

Carter Libis:
Work I put in should have been like 30,000.

Brent:
Right.

Carter Libis:
No, I mean, it was, I think I just, I saw something about, you can get pre-foreclosure list for realtors.

Brent:
Yeah.

Carter Libis:
And right now I know pre-foreclosures are small because banks are giving you a bunch of-

Brent:
Yep, forbearance.

Carter Libis:
Yeah, all that type of stuff. But yeah, before COVID starting everything, I got a pre-foreclosure list from an agent in town and I called it. I think there was like maybe 100, 200 people on there.

Brent:
Yeah.

Carter Libis:
And I found this couple down in Camp Verde that was kind of going through some things. And-

Brent:
I remember.

Carter Libis:
I was able to help them out.

Brent:
I remember.

Carter Libis:
It was so-

Brent:
Yeah.

Carter Libis:
It was like the worst things you could have done, I did.

Brent:
Yeah.
But I mean, it ended like, you know, I had, she was crying on the phone like, “Oh, we’re not going to be able to close. We have this big tax lien, you know, that we have to pay before we close.” And it was like a couple of grand. And I was like, yeah. I mean, I know that they would figure it out.
Yeah.

Carter Libis:
It’s either that, or they’re getting foreclosed on.

Brent:
Yeah.

Carter Libis:
I didn’t have the money to pay for that.

Brent:
Yeah.

Carter Libis:
So I just kind of let it ride out eventually just got it done for them.

Brent:
Yeah.

Carter Libis:
You know, I think I really helped them out. I think they owed about 90 on it. I think I locked it up for like 110. Zillow said like 120.

Brent:
Yep, yep.

Carter Libis:
And I had to go back and lower them down to like 95, ended up selling it for 98-

Brent:
Yep.

Carter Libis:
To a local investor in Cape Verde that I put on Craigslist. I put on Craigslist of marketplace. And end up finding this guy named Jim who wanted a little rental.

Brent:
Love it. And in the smaller markets, I mean, that’s, you can find buyers on there.

Carter Libis:
Yeah.

Brent:
You know, it’s a little bit tougher in the bigger markets to really find legit cause most of the people on the Craigslist in marketplace here, are other wholesalers.

Carter Libis:
Yeah.

Brent:
You know what I mean? So it’s a good way to network in that sense. But, and by the way guys, tell everybody about your YouTube channel, I connect with you, everything. I know that this was quick, but I think that you’ve really made a big impact. I mean, guys-

Carter Libis:
No, I appreciate that.

Brent:
Incredible, right?

Carter Libis:
Yeah. So if you guys want to go to my YouTube, it’s just my name. Carter Libis. C A R T E R L I B I S. I started it like a couple months ago. I got my fix and flip on there. You know, kind of how I made my a 100,000 in those eight months. Some good content on there. I don’t know. I just try my best to document what I’m doing. So if you guys want to follow along, you guys can subscribe. But my Instagram, Twitter, Facebook, it’s all just my name, Carter Libis.

Brent:
Awesome.

Carter Libis:
Search me up and message me if you want.

Brent:
Awesome. Thank you guys. Thank you for being on here. Absolutely incredible, guys. Make sure that you follow Carter. And Carter, we say thank you for joining us. Until next week, we encourage you to talk to people. We love you guys. See you next week.

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