Posted on: July 02, 2021

More than an exposure to sales, you need tenacity if you want to make it big in real estate. Have the right people in your team, build rapport with your clients, and be more adept to the needs of distressed sellers to gain not just their trust but also more deals.

In today’s episode, Lucas Homan looks back on how his real estate business hit the ground running, utilizing both cold calling and PPC to generate leads. He also talks about 3 deals that he closed within the same week through resourcefulness and the mindset of getting things done.

Key Takeaways

  • A sales background is helpful but not necessary
  • Set the proper foundation for a long-term and scalable business
  • How to generate more leads
  • The relevance of client relationships in getting more deals
  • On dealing with a client with a 1031 issue
  • Applied knowledge is power

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Episode Transcription

Rafael Cortez:
Hey, what’s up? Rafael Cortez here with the Wholesaling Inc. Podcast, the number one wholesaling podcast in America. Right now, I’m sitting down with Mr. Lucas Homan. So, he’s been part of the Rhino Tribe since back in January, and he’s just made leaps and bounds. And the amount of progress that him and his company have made over the last several months, it’s insane.
We’re going to sit down with him. We’re going to break down the actual process that he’s going through right now to get deals in, fresh deals in, and then also keep a very healthy pipeline going on as he progresses through the closings, the negotiations, and every single part of the process as he breaks it down. So, let’s dive right into it, man.
Lucas, thank you so much, man. I appreciate you stopping by and spending a little bit of time with us.

Lucas Homan:
Absolutely. What is up man?

Rafael Cortez:
What’s going on? So, it’s pretty interesting to see the type of background that you have. You have a background in sales, but you had no idea what real estate was, what a wholesaling was, kind of came into it cold turkey. And I mean, you just started crushing it all of a sudden. You really committed to the process. You started following the steps that we have laid out in the overall business model. Right? You’ve had some amazing stuff happened over the last few months, including three deals closing within the same week and whatnot.
So, you really had this opportunity and did a great job about teeing everything up and then really laying out the pins and then just knocking them down, while keeping a healthy pipeline for deals to come. So, I want to dive into all of that stuff. I want to find out a little bit about you, your personal background, and what led you into this whole real estate journey and really talk about some deals, man. So, let’s get cracking.

Lucas Homan:
Yeah. Let’s do it, man.

Rafael Cortez:
Perfect. So, what’s your background? You do begin in sales, you were doing that for a long time before you hit real estate, right?

Lucas Homan:
Yeah, no. I spent the last 16, 17 years of my career in the powersports industry, working and managing motorcycle, four-wheeler dealerships. Came up through the sales side, and moved on to the management side. And then for the last 6, 7 years, ran dealerships as a general manager. I have a pretty strong, heavy, just sales-focus for the majority of my adult life.

Rafael Cortez:
How does that compare? Somebody who’s got a sales background, right? It hardly ever translates directly to different industries. Do you feel that’s helped you a bit? Could you have done the same stuff that you’re doing right now without it?

Lucas Homan:
I think it’s definitely possible to come in to this industry without a sales background. I think for sure, a hundred percent, no doubt in my mind that having my heavy sales background helped me, just knowing overall, just general sales process and just building rapport with clients, listening to what they’re saying and applying that. So, I think it definitely helps having a sales background, but not necessary.

Rafael Cortez:
I would agree with that. I think having some type of exposure definitely helps, but it’s one of those things that if you have the will, the commitment, and the tenacity to go after it, the opportunity is going to be there, right?
Take your guys this case, for example, you kind of jumped into it and you weren’t very active at the beginning. We’re talking… This was back like in January, right?

Lucas Homan:
Right.

Rafael Cortez:
We’re in middle of May right now. This was probably back in January, and it took you guys a little bit to just get more comfortable with the idea of running this as a business, as an actual business, right? And I remember right out of the gate, you weren’t the most active. However, whenever February and March kicked in, you guys just ramped it up. So, what happened through that process, and what led to the first closings that you guys had?

Lucas Homan:
You said it and hit the nail right on the head. We did start off slow, but we wanted to be very, very conscious of we’re in this to build a business, to build a long-term business that can scale, and that can just be a well-oiled machine. So, for us early on, setting that foundation, making sure we had the foundation in place, everything in place, that was our number one priority. Make sure we had processes in place before we started generating leads and trying to produce revenue. So, once we felt comfortable, had everything in place, that’s when we started to ramp it up. And when we ramped it up, we went 110%. We didn’t hold back at all.

Rafael Cortez:
Brother, I’m your witness on that. You’re a negotiation machine. You’re very adamant about… We’ve been on the phone and whatnot and during the live calls and everything, and talked about the deals that you’re currently going through and the deals that you have negotiated in the past, just that tenacity that you have to stick to it.
Everything from following up on the leads that are inside the CRM to just generating those new calls, you’ve covered every single aspect of it to the point that… I mean, you’ve told me, right? You get anxious whenever you feel like there’s a little gap, something’s not being handled. I think at the beginning is you almost have to be a little bit obsessed with the future that you’re trying to build, right? And I think it really puts you into that mindset of getting things done and putting the effort in. Even if you have a nine-to-five, you have to take this and then build your own dream after hours.
And I think that’s one of the key things that you’ve been able to do. You just really, really lasered in the focus on, “Okay. How to generate the leads? And then after I get this, I’ll move on. I’ll qualify, and then I’ll negotiate. And then I push them onto the…” Almost like an assembly line type of process, but you’re very adamant about sticking to each part of it. And I think that’s been one of the most amazing things to see happen in your guys’ scenario over the last several months.
So, during this time, you went through a couple of different job roles and now, you’re mainly acquisitions. You’re doing this point, everything else as well, but your core focus, you, individually, it’s on the acquisitions, right? So, what did your business look like in March and what does it look like now?

Lucas Homan:
So, in March, we started with cold callers right at the end of February. They started generating leads. Right from the get go, they were generating leads daily. We set our parameters pretty wide and we did that just to give me the swings on the phone and get more comfortable on the phone, learn those conversations, learn what works and what doesn’t.
In March, we were generating leads, started to get a little bit of traction with a few of those leads, people that were genuinely interested in selling. Because a lot of people, especially with the market right now, “Yeah. I’ll take a cash offer.” They just kind of a tire kicker, so to speak. But we started generating some leads and I was in contact with some people that really had some interest in selling.
And towards the end of March, started really picking up traction with that. Fast forward to now, we’ve got three deals that have closed. We’ve got one more that’ll close next week. And I just got another deal under contract with a seller on yesterday. Yeah, yesterday, I guess it was.

Rafael Cortez:
That’s a very interesting story. I want to touch on that because that’s definitely one for the books, brother. Before we bring that one up, you pretty much teed it up and really ramped it up in a matter of about 60 days. Right? That’s when the deals started coming in. So, let’s do a little bit of a deal breakdown here. So, you had three that kind of came in simultaneously and they all close within the same week, right?
So, your first pay day per se was actually three different transactions coming in at the same time. That’s epic. It doesn’t happen often. And it’s a testimony to what it takes to commitment, to tenacity, to actually be in it with the intention of making a real business out of it. So, where did the leads come from?

Lucas Homan:
So, two of the leads that we closed, they were cold call leads. Another one was a PPC lead and then-

Rafael Cortez:
Cold call leads, interesting.

Lucas Homan:
[crosstalk 00:09:00] Yeah. Cold calling, two of them cold call. One was a PPC lead, the one that’ll close next week, cold call lead. And then the one that I put under contract yesterday was a PPC lead.

Rafael Cortez:
What lists were you marketing to?

Lucas Homan:
So, on lists, we started, just like you teach in the Rhino Tribe course, is your target market area. Find your top 20 zip codes, find those top 20 most active zip codes. And we started with the most active, pull the list of whatever the most… I forget how many zip codes it was just to get to the amount of data that we needed to send to our cold callers, to keep them busy for a 30-day period. And then, we moved onto the next zip codes after that. And we’ve just continued on with that method ever since with cold callers.

Rafael Cortez:
No, and it works. It’s really a volume play, right? It used to be that you could get a lot more targeted with niches and lists and stuff like that. And there are a few types of lists out there that work well. They’re a little harder to get because there’s more work going into it. But at the end of the day, what you’re looking for, it’s really…
Think about it this way, everybody’s going to sell at some point. Hardly ever anybody buys a house and stays with it for the rest of their lives unless this is like an investment, but they’ll move up, they’ll downsize, upsize, or do whatever they got to do, right? But we just have to be there. We got to be top of mind whenever the choice to sell comes up.
And it really takes, like you said, you’re putting the reps in. You just have to have the opportunity to take those swings. Nice. So, cold calling is pretty much one of the best or top lead sources that you have. You’re also incorporating PPC, which is a little different, but it’s still high quality stuff right there.
Every time we come into a seller appointment or a situation, there’s always an issue, right? There’s always a solution. We have to come into every single deal with the mentality that we’re going to be able to solve a problem for that seller. Give us just a quick little breakdown on the three scenarios and what the situation was on each one of them and what were you able to solve for those sellers.

Lucas Homan:
So, on one of them, he’s an older gentlemen. He’s retired. His wife had been in poor health for a pretty significant period of time. He was not living in the house. He had let a family member live in the house and that family member absolutely did not take care of the house at all, and pretty much just trashed the home. A bunch of stuff-

Rafael Cortez:
Accidental landlord, I predict.

Lucas Homan:
Exactly, exactly. And it bothered him to want to go back to the house with it in that condition, especially his wife had passed away. In this period of time, he just wanted to get out from underneath it. He wanted to move on with his life and he wanted to get it done and get it done as soon as he could. That was his thing. So, really great guy. It’s actually…
Talked to him just the other day. He told me he’s going to make sure he keeps my number because he’s got another property that he’s probably going to want to sell here in about four to six months. So, he thanked me 20 times. So, really cool experience.

Rafael Cortez:
Yeah. Well, and that’s the thing, right? Whenever you come in and then actually add value to these transactions, they will exchange in a convenience for equity. They will do that. And it’s really the way it works. You come in and then genuinely solve a problem for somebody else, you end up with a win-win situation where they want to keep coming back to you.
Now, you’re the guy, right? Now, you’re the real estate guy. Whenever they think about selling something that’s going to be off market, it’s going to be cash, it’s going to be an investor. Even if they get 50 other direct mail pieces or calls or they get bombarded by the SMSs and phone calls, you’re still going to be the guy. You’re going to be that person-

Lucas Homan:
I call that, “I got a guy syndrome.” When somebody is in a group of their friends, they’re talking about real estate, I want somebody in that group to go, “Hey, I got a guy. Call him.”

Rafael Cortez:
Talk to Lucas, yeah.

Lucas Homan:
Yeah.

Rafael Cortez:
Absolutely, man. And that’s really what it takes. It’s taking the time to sit there and find out the situation behind it, not just coming in and going straight for the throat with, “Okay, how much do you want to sell it for?” And that’s it. There’s some finessing, there’s some conversational discovery that has to happen in order to really come about with a solution and really build that connection, that trust, and that likeness that a seller has got to have towards you. Right?

Lucas Homan:
Right.

Rafael Cortez:
In order to do business. It’s people do business with people who they like and trust. Simple as that.

Lucas Homan:
Absolutely.

Rafael Cortez:
Yeah. Nice. What about the other two?

Lucas Homan:
Other two deals, both of those were out-of-state owners. They actually own them as rental properties. One gentleman, it was his property management company had continued gradually raising the prices for him. It just wasn’t feasible. He was out of state. He had a few properties left that were in state that he still owned. And he was just slowly trying to get rid of those.
Not your stereotypical motivated seller, but he wanted the ease and the simplicity of the transaction. He just wanted to be able to get the price he wanted and to have somebody else handle everything, and hat was it. So, we were able to do that, just come in, took care of everything a hundred percent, communicated with him really well. And we were able to lock that in and move that property for him.
So, the third one, again, out-of-state owner had the property as a rental. He was getting rid of all the single family residence, and he was starting to invest in commercial property. So, he was actually looking to do a 1031 exchange with this property. And actually, prior to us getting it under contract, he had gone under contract with one of the larger corporate national companies. Can I drop their name?

Rafael Cortez:
Sure.

Lucas Homan:
So, he had been under contract with OfferUp, and they were not able to move the property within the time period that they had said. And they weren’t going to purchase it themselves for some reasons. So, he got in contact with us. I assured him that I would find a buyer for it. We would make sure the 1031 exchange, everything got done and yeah, exact same thing happened. Just that really good communication, had good rapport with the guy.
He’s a super busy guy during the day, but he said, “Text me anytime.” So, a lot of the communication was just done texting back and forth. Then it was like me and you texting back and forth. He text me, “Hey man, dah, dah, dah,” and stuff like that. So it was, again, just that communication and able to handle every step of the process, so he didn’t have to worry about it. And just giving him that reassurance that I was not going to let it go. I was going to find a buyer for it.

Rafael Cortez:
So, on this one, I want to ask you about the 1031 exchange. Those who are not familiar with 1031 exchanges, it’s a more advanced strategy to push taxes back, not to get around taxes or anything, but to defer them until you sell the next type of property. So, you can, actually, instead of paying your taxes right away with capital gains, you apply them onto the next purchase. So, you got to buy another piece of real estate that’s similar to whatever you’re selling and then 1031 exchange can happen. And there’s all kinds of intricacies that go along with that, right?
Now, let me ask you this. So, he dropped the 1031 exchange thing on your lap. What did you do about it? Did you have previous experience on doing 1031 exchanges?

Lucas Homan:
I had zero.

Rafael Cortez:
Or how were you able to? Okay. So, how did you figure that part out?

Lucas Homan:
He had already identified a property. He actually had a group of partners that they were going and they were purchasing this commercial property. So, he had already identified the property. He knew what it was. He was more on a time crunch because-

Rafael Cortez:
Boom. [crosstalk 00:16:43]

Lucas Homan:
He was on a time crunch because, to him, he had wasted time having it under contract with the previous company. And, you know with the 1031, that’s a timeline there. You’ve got to identify a property within a certain amount of time and you’ve got to close on it within a certain amount of time also.
So, he was on a time crunch. We actually did a shorter closing window. He wanted to do 10 days. I told him that’s just not possible to do a 10-day closing. So, I was able to get him to do 20-day closing, and we actually closed in 19 days.

Rafael Cortez:
Wow.

Lucas Homan:
1031 was set up. I notify when I sent the paperwork over to the title company. Let the title company know he’s doing a 1031, got them the info that they needed. I got that from the seller, that way, he didn’t have to worry about doing it and just got it over to the title company.

Rafael Cortez:
See, here’s the thing, man. And that’s amazing. That’s resourcefulness, right? You hear something like that, and I don’t know, I’ve seen it in the past where people just shy away. “You know what? I do not understand what that means. This is not for me. I’m not going to go forth with that deal.”
But do you know it’s a deal? It’s either going to be you or somebody else doing it, right? So, what happens if you don’t have all the resources, you have to be resourceful and figure things out as they’re coming to you a lot of the times, which, I mean, it’s real estate. You’re never going to have two transactions that are the same. I’ve been in this business for the last 12 years and I don’t think I’ve ever had the same deal happen twice. It’s just the reality of it.
You have to be resourceful and it’s really cool that you caught on to that 1031 issue. And 1031 really wants… It’s kind of set up and laid out and the ball is rolling on that. It’s really a matter of time before they lose that opportunity. So, they just got to sell as fast as possible, whatever you have on your end. So, it’s not really a money issue, it’s a time issue.

Lucas Homan:
Yeah. And a big thing on this one was I had never done a 1031, so in talking with the seller, trying to get it under contract and us going back and forth over the course of a couple of days, I called my title guy. It was just a matter of having the right people on your team to be able to rely on. I called my title guy. I’m like, “Hey, I’ve got this potential deal. He’s wanting to do a 1031. What do I need to do on my end to make this-

Rafael Cortez:
Resourcefulness.

Lucas Homan:
[crosstalk 00:18:59] on him and on you?” And he walked me through it. He said, “This is what I need. If you could get that, it saves time.” So, when I called the customer back, and that was actually when I was able to close it and get him under contract, I said, “Hey, I can do this. We can close in this amount of days. Hopefully, it’s sooner, but at a max, 20 days and I need this, this, this, and this from you on the 1031. I’ll send that all over the title right now. That way they’ve got it, and they know upfront.” And that was what allowed me to close it and close it right then and there.

Rafael Cortez:
Boom, man. That’s incredible. It’s the power of the power team, right? It’s actually part of the business model you’ve got to have in place. Build your power team. We go through that in the first couple of weeks, but it’s important to have those types of relationships build out before you get a wrench thrown at the engine.

Lucas Homan:
That was some things we were doing in January and February when everything was slow, was making sure we had the right people on our team [crosstalk 00:19:58].

Rafael Cortez:
Foundations.

Lucas Homan:
Power team, so.

Rafael Cortez:
Your results speak for themselves, right? So, we had a couple… Three properties come in and then they closed during the first week. Now, you have other stuff in the pipeline, you’re still looking pretty healthy. What was the take on those three properties for that one week? Which was, I mean, that was your first paycheck, right?

Lucas Homan:
First paycheck.

Rafael Cortez:
Pretty much first payday.

Lucas Homan:
First payday, right. Yeah, first payday for the company. And on those three deals, we were able to… And wholesaling fees was 27,000.

Rafael Cortez:
27K, boom.

Lucas Homan:
27K, yup. You have ring that bell.

Rafael Cortez:
Oh yeah. 27,000, brother. That’s amazing for really ramping it up, in a period of 60 days, putting effort and time in, and then the tenacity that really takes to run an actual business. It’s amazing results. It’s amazing results. And then when you stack on top of that and you stack the fact that you do have a bunch of other stuff in the pipeline now, I’m excited to see what you guys are going to be creating over the next year or so.

Lucas Homan:
Yeah, me too.

Rafael Cortez:
Yeah. It’s definitely, definitely coming in fast, man. I love it. I love it. So at this point, you have pretty much the beginnings of a bootstrap business. Now, you see how the pieces are working together. You’re not treating it as a side hustle, which is, it’s amazing. It’s music to my ears and you’re seeing results happen. What piece of advice would you give somebody who’s just getting started, who’s relatively new to real estate investments or has only done a couple of deals?

Lucas Homan:
My biggest saying would be, “Just take action. Just do something. Take the next step.” I had no clue how to do a deal, how to close a deal, how to finalize a deal, everything, but I figured it out of the way. I said it earlier, we’re not, and we still are not scared to make mistakes. Our saying is we don’t know, we don’t know.
How do we figure out what to do? Well, you got to try some stuff. Try some stuff, make mistakes and go, “Oh crap. Let’s don’t do that again.” Or, “Hey, that worked pretty well. Let’s keep doing that.” You know?
So, like you’ve said, just take massive imperfect action. For us, taking it slow in the beginning, building that foundation, having the right people in place, things like that, that has definitely helped. Instead of just taking off, going for the raises and then trying to scramble, find title, find this person, find that person, “Oh, my contract’s not set up how it should be.” We went through and did all those things. That way, when we hit the ground, we could hit the ground running and not have to worry about the details not being set up.

Rafael Cortez:
And I love it by the way, man. Massive imperfect action is really the key to anything that we do, right? Whether it’s in wholesaling, whether it’s in school, education, whatever, it’s taking the steps, taking the actions, that’s what’s going to lead you there. They used to say or the saying was, “Knowledge is power.” I disagree with that, and I think that applied knowledge is power.
Knowledge is just information until you actually apply it and do something with it, then it becomes powerful. And that’s exactly what you’re doing. So, I love it, man. You have this audacity of coming after sellers too. Your closing style, it’s kind of out there, it’s pretty aggressive, you’re there to get the deal and you have that no BS conversation, whenever you sit down with sellers. Right? And give them your true self, I think. It’s genuine.
Yesterday, just yesterday, you texted me about this one deal that you just went through. I just have to bring it up, man, because I think 99.99999 of the people out there would have stopped going after that seller. But you stayed there and then somehow, you managed to-

Lucas Homan:
Yeah, it was interesting.

Rafael Cortez:
Get it under contract. Walk me through that real quick. That’s something that has to be talked about.

Lucas Homan:
Yeah, absolutely. Gentleman called in. He’d been on our website, called in and qualified the lead and everything, set an appointment for the next day and a-

Rafael Cortez:
PPC lead?

Lucas Homan:
PPC lead, hundred. Yep, PPC lead. It’s in a little bit more of a rural area. We’re here in Texas, but it’s out a little bit more of a rural area. And he lives… It’s in a neighborhood but his neighborhood’s out in the country. It’s a couple miles outside of a small town. He told me, “Don’t come here trying to low ball me, this and that. You try to shoot me some low ball offered, I’m going to chase you off the property with a shotgun. Ha ha ha.” Kind of laugh about it, joking. Well, I showed up, entire property is fenced and it’s gated. He’s got the gate locks.
So, he met me out at the gate. Let me in. Went through, walk the house, walked around the outside, checked out the property. When I went inside, initially, when I first got there, he had a 45 pistol just sitting on the nightstand, which is no big deal. Not that big [crosstalk 00:24:45].

Rafael Cortez:
It’s Texas, right?

Lucas Homan:
Yeah, it’s Texas. Come on, man, we like our guns. I’m a gun lover, so it wasn’t that big a deal. And when it came down to the negotiation, I opened the negotiation with a low anchor.

Rafael Cortez:
Low anchor?

Lucas Homan:
Yeah. When I came in with the low anchor, set it and did, like any negotiation, like you should, set it and then shut up and wait for them to talk first. And his first reaction was to snap his head over and look at me and he grabbed that 45 and put it on his lap.

Rafael Cortez:
Wow.

Lucas Homan:
Yeah, it was a little bit interesting. I do carry a gun a lot of times. So, with what he had said and the location, I chose to have a gun on me at the time. And when he grabbed his pistol, he just kind of looked at me and I asked him, I said, “Do I need to get my 40 cal out from inside of my waistband?” And at that time, he just smiled and he put the 45 back on the table and said, “Nah, but you’re going to have to raise that offer a little bit.”
And from that point on, it was great. We got along great. He told me probably 10 times, “I like you. We’re getting along great.” And I was able to get it under contract.

Rafael Cortez:
That can either be really, really, really scary or instant rapport, right? It’s not a strategy that’s recommended.

Lucas Homan:
Yeah. [crosstalk 00:26:04] I was terrified.

Rafael Cortez:
Somehow, some way, but you come across some crazy stuff. Sometimes, it’s sellers, man. And you still got that property under contract. So now, that’s in your pipeline.

Lucas Homan:
Yeah.

Rafael Cortez:
That’s amazing. [crosstalk 00:26:17] in the next 30 days.

Lucas Homan:
Yeah. We were showing each other pictures of different guns and stuff we had. And after that, we had a good time. We’re best buddies now.

Rafael Cortez:
Wow, that’s insane. That’s insane. I love it, man. If that’s not tenacity commitment to getting the deal done, I don’t know what is. I don’t know what is. As a matter of fact, you deserve a [inaudible 00:26:35] bell. That’s definitely a bell ringer right there, brother. Man, awesome.
It’s amazing to see the journey that you’re going through and just the leaps and bounds that you’re really taking in your business and all this stuff that’s coming in to change the way that you look at things, the way that you come up, you are approaching actual business now and getting the results that you’re getting. It’s insane, I love it, man.
If somebody wants to get ahold of you, what’s the best way to reach out? I know you have a website as well.

Lucas Homan:
Yeah, absolutely. So, website is fairofferfast.com. You can email me, Lucas, L-U-C-A-S, @fairofferfast.com.

Rafael Cortez:
Sounds good, man. Well, thank you so much for sharing that. It’s been a refreshing, scaring, and all kinds of things in the same conversation.

Lucas Homan:
[inaudible 00:27:22] said, man.

Rafael Cortez:
So, I love it. I love it. I’ll talk to you soon.
And there you guys have it, so thrive. If you guys are interested in finding out a little bit more about the wholesaling business blueprint, which is what’s happening right now, go to our website at wholesalinginc.com/wbb, and then talk to one of our guys. See, if I makes sense, I look forward to working with you and until then, stay focused, you got this.

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