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Posted on: September 02, 2021
WI 767 | Closing Wholesaling Deals

 

Are you a newcomer to real estate? Do you want to know how to make a big impression and start closing deals? Then this is the episode for you!

Gal Shmukler, our guest for today, has only been in the business for 5 months, and he has already closed 7 deals. Four of those are wholesale deals that earned him $65,000, and the other 3 are properties with equity which he has added to his rental portfolio—but that’s not all. He has 7 more properties under contract.

In this interview, Gal will talk us through his transition from doing real estate in Tel Aviv, Israel, to working the Houston and Jacksonville markets. He will also share his strategy for acquiring more deals and building a strong pipeline.

How a Wholesaling Newbie Closed 7 Deals with 7 More Under Contract in Just 5 Months!

Episode Transcription

This wholesaler that I’m going to be speaking with on this show is out of Austin, Texas. He doesn’t do business in Austin. He does business in Houston and Jacksonville. This is for everybody who’s just getting started and wondering, “Can I make a big impact quickly?” This is going to be the concrete evidence that you need to supercharge your efforts in this business because this is incredible.

In five months, he’s closed 7 deals, 4 wholesale deals for $65,000 and 3 that he kept for himself with equity that he added to his rental portfolio. Not only that, but he’s got seven other properties under contract. If you are curious how he is doing this, we’re going to break it all down in this conversation. It is my pleasure to introduce, from Austin, Texas, Gal Shmukler.

How are you doing?

This is exciting. When we were going over this, we’re pulling the stats, I was like, “I want to hook people in early because you’ve got an incredible story. You’ve got an incredible machine running that is truly going quick.” You came out of the gates fast. Before we get into that, let’s give a little bit of context on who you are and what brought you into the world of wholesaling real estate. Before wholesaling, tell us about yourself, Gal.

My name is Gal. I moved to Austin from Tel Aviv, Israel. You have a lot of fans from Israel. In Israel, I started in the fitness industry. I’ve been doing it for many years. We’re in the fitness business and studios and all this. Few of my clients do real estate. I was fascinated by it and wanted to do it. I remember at the age of 26, I convinced myself to do my first real estate deal, to buy a property. I saved some money and I bought a property in Israel.

The thing is, in Israel, the market has been small and expensive. The yield is slow. Being a real estate investor in Israel is tough and it is almost impossible. After a few more years, I decided to sell my company and join a real estate firm, one of the biggest in Israel. I started my role as a sales manager because the best thing about being in the fitness industry in Israel is talking to people. That’s what I’m best at. It’s the same in real estate, also as an attorney, and as a coach. That’s my strength.

Eventually, my wife got a job offer from the States and we needed to move. I had almost one year that I was preparing for this thing before moving to a different country. I still have an accent. I’m trying to do my best. I thought about this as an opportunity. “Gal, you have a chance to fulfill your dream. Do the real estate that you’ve been so fascinated about.”

Once you got to Austin, you obviously had some experience doing real estate, doing some sales in Tel Aviv, and then you come to Austin fresh. You become a real estate agent. You go straight into it. You came here, and you did what?

I came to Austin and I saved a little bit of money, I was thinking, “How can I do real estate?” Austin is an amazing market but already expensive. You can buy a property and wait for appreciation. To make it a business, it’s quite tough, especially for somebody who is just beginning. One of my best friends was doing real estate in Jacksonville for a long time. They have a company over there.

I took a flight and went to meet him to see the opportunities. It’s all thanks to my wife. She let me be there for three weeks. I remember being in Israel and when I started this. I want to make this journey. I was obsessed with the US market. I was reading books. I was listening to a podcast, the BiggerPockets. It gave me the push and understanding, “How can I be financially free? How can I get to financial freedom and build a real business?”

I remember the first two weeks in Jacksonville, I was meeting many realtors. Honestly, I didn’t find anything. It was too expensive, especially then, the market was high and didn’t suit my criteria. One day, I met a friend of a friend that had a property and he needed the money. It wasn’t too expensive. He wanted $75,000 for the property. I did my ARV. I knew a little bit about it. The property, in my opinion, was $120,000. It looks like a good deal. We closed it for $75,000. I got the appraisal for the property because I’m cashing out for $174,000.

Incredible. This is a rental for you.

It’s already rented. I got the appraisal. I’m cashing out. I’m making money and it’s still cashflowing. The thing with this deal that made me think, “I did it once but how can I make it a business? How can I do more?” We have a global Facebook group and people are doing wholesaling. I remember hitting both wholesaling in the past with one course. I did in Israel, but not too much.

I hear all those. It all sounds like cartoons to me. I didn’t know anything but it looks like a chance. I posted, “I’m looking to do the wholesaling course. Can you recommend something?” One guy sent me a message and said, “You have to talk to this guy, Brent Daniels. He’s the best.” The funny thing is, I googled you. I listened to a few podcasts and a few videos. The best thing that opened my eyes is, “Talk to people,” because you’re obviously making it simple. People are trying to invent the wheel, “Do this and do that. We have the best strategy,” but you are only talking to people.

I love that Facebook group. They do an amazing amount of deals. That group over there that’s in Tel Aviv are the masters at virtual wholesaling. You’re essentially doing virtual wholesaling. Are you ever going to these properties, ever walking them?

I didn’t, but it does the thing. I have my people. I have a partner in Houston and in Jacksonville, and they’re both been doing real estate for a long time. It’s also about partnerships and collaborations and finding the right people for you because it is easier to find knowledge with all these Facebook and Instagram. For my personal things, don’t post too much. I take it as knowledge. I listen to you. I go into the groups. If I have a question, I ask.

There are many groups and many ways to find the good people to fit you. It helped me. After this deal, I went back to Austin. I was thinking to myself, “I can do it in Jacksonville or I can look for the closest and best market for my criteria.” Houston answered this question for me. The second thing I was looking for was a partner, after looking for a long time and meeting many people, I saw a great guy. We still walk together.

It’s very hard to find any off-market deal if you do it by yourself. You need to partner and collaborate with the right people.

How did you find him, Gal?

I posted in a real estate investing group on Facebook. He posted something, so I posted him like, “I will be glad to meet you. Let’s do something together. I can bring this and that. You can bring this and that.” I talked to him about the idea of wholesaling. He didn’t do wholesaling. He’s been doing rentals and flip and all of those. We started wholesaling. I started the course. After three weeks, we closed the first deal.

In the first three weeks, you were sending out simple text messages asking if people would consider an offer. You found a deal. It had to be sooner. How fast did you close?

No. After almost two months, we closed the deal. We have a contract and assignment after a few weeks but the assignment came in the same day. My buyers’ list was small, with only 100 properties, but the deal was good. Eventually, I had my buyer’s bond. I talked to those buyers. The one, I said, “I want this deal. I can close it right away.” I don’t need to see the property. I didn’t even go through the property. We signed the contract. After another one, it was closed with the title company and everything. We got our fee. It was good.

We’re going to ring the bell a couple of times in this, but what did you make of that?

This one, we made $20,000.

That is awesome. $20,000 first deal, three weeks of effort, three weeks of being proactive, going after these properties, and building in a partner into it so that you have somebody that’s boots on the ground in the markets that you’re in. You found him through Facebook. We don’t have to overcomplicate any part of this process.

If you want to do deals anywhere, if you’re interested, here’s the underlying thing here that’s not being mentioned. Gal’s doing this to build his rental portfolio. If he finds deals where he doesn’t want, it’s maybe not in the areas that he wants to hold these properties for a while, he will wholesale it. Your primary objective is to build a robust rental portfolio.

People think wholesaling is just getting a property under contract and selling the contract. That is not what wholesaling is. Wholesaling is the art of finding discounted properties. It is the most proven path to financial freedom because you get to cherry-pick. You get the opportunity to determine what your exit strategy is for the discounted properties that you find.

Are you going to wholesale it? Are you going to flip it? Are you going to hold on to it? Are you going to develop that property if it’s vacant land or something like that? That is what’s so wildly exciting about what we do, Gal. What we do is we find discounted opportunities, and then the sky’s the limit. Once we build that skill of finding discounted properties, we are set. We are on the path. We are on the journey. We’re pointed in the right direction. The wind is behind our back.

As you say it, it’s bananas. I don’t even call it hosting for me. It’s like off-marketing because you’re doing off-market. When I was looking for deals with the realtors and going into many wholesale groups, even when you ask a wholesaler, maybe this wholesaler has another 50,000 buyers. You’re not the only guy who is talking to him. It’s hard to find any off-market deal, only if you do it by yourself. You’re like negotiating with one person. Maybe he’s negotiating another 2 or 3, but then you can bring yourself. If you have a good talk with this person and a good report, you will close this deal.

There are amazing deals in the market. Nowadays, it’s harder but it’s even better because eventually, it’s going to be easier. The market will crash one time, and then we have more opportunities. Imagine if we can make it, try to mention what’s going to be with the pre-foreclosure. If people need to sell the properties, you’re there to help them and you’re there to close a good deal.

The fact is 90% to 94% of people are going to sell in the market. What the interesting thing is, the millions of properties, the 6% to 10% of our real estate market that is in some distress at all times, whether the properties just need to be renovated, need complete rehab, or are in pre-foreclosure. Whether they get them from inherited, behind on property taxes, or have been abandoned and vacant for a while. There are 11 million vacant single-family houses that have been vacant for over a year in the United States.

We serve a market that is completely underserved because real estate agents are only interested in properties that they can put on the market and earn a commission. Some of the smart ones do it off-market and sell it to people like Gal and me. We are going after properties that nobody else is going after.

Maybe you think that there’s a lot of competition in your specific market but truly, there are more deals than there are competitors. There are more deals than there are real estate wholesalers out there finding these distressed property owners having quality conversations with them and changing their lives by relieving the anxiety and stress of owning this property.

It’s a wonderfully-rewarding business to be in, to be able to go after, and help the people that necessarily won’t help themselves. That’s what you’re in. That’s what you’re out there doing. You’ve done it 14 times in 5 months. The question on everybody’s mind is, how are you doing so many deals? What are you doing for lead generation?

WI 767 | Closing Wholesaling Deals

Closing Wholesaling Deals: Austin is an amazing market, but already very expensive. You can buy a property and wait for appreciation, but it’s quite tough for a business, especially for somebody who’s just beginning.

 

For anybody that’s never seen or never heard me before or talk about it, if you’re interested in wholesaling, if you’re interested in investing in real estate in general, there are three parts that you have to master. The first part is lead generation. That’s the engine of your business. That’s going to give you opportunities.

The second one is conversion. That is converting those opportunities, those leads into a signed agreement and a commitment. The third is an exit strategy. What do you want to do with that property? When you’re starting out in this business, all your focus should be on lead generation, building up your pipeline of opportunities. How do you do it, Gal?

I don’t call it wholesaling. I call it off marketing because I have the will. As you see, I can decide whether to wholesale it or then to buy and hold it. That’s my main goal to get to financial freedom and get as many properties to get to my goal. I know exactly what I want for this goal. I can flip them. I can wholesale them. I can do whatever I want if I get the deal. I only need to get a deal.

My partner, for example, in Jacksonville, has a lot of experience in Jacksonville. He has contractors. He has the property manager and everything. Eventually, we are partners because I’m in the deal. Imagine how much power you have when you have this deal because that’s the biggest thing, to find the deal. We are wholesalers and real estate investors. When we understand that if we find the deal, we have it all because buying the property seems okay and it costs a lot of money.

Nowadays, especially in the US, it’s much harder to get a loan because you have six big banks, and the property is expensive. You can be a real estate investor because if you find a good deal, eventually, you’ll find a lender that will give you most of the money at 80% to 90%. You can then refinance and if you bought in 50% and then you go to a loan to value and they give you 75%, you’ll have equity and you can still cashflow. That is crazy. You don’t need to have a lot of money to get your financial freedom and to make a lot of money. That’s what I’m most fascinated about.

How do you find your deals? Out of the seven contracts that you closed, are these all texts? Are these cold calls? Are these traditional marketing techniques? How do you find them?

Our technique is cold calling. I started with myself. I’ve been following what you said because I didn’t have an experience. I took a mentor. I was tagging you in the beginning. “What should I do here? What should I do there?”

There’s a lot of texts. No one’s going through it now. It was great.

I’m like, “What is that? What is wholesaling?” I didn’t know anything. I now have a VA. In the beginning, I started myself and did 1,000 phone calls. Now we do the texting. We upgraded the driving for dollars.

What are you using for your texting and what are you using an app for driving for dollars?

For texting, we use Batch Leads. It’s harder nowadays with a lot of restrictions. It’s even better because the deliverability rate is a bit lower and the response is a bit lower but you have less competition because I don’t text 20,000 to 40,000 messages a day.

It’s an increase in the quality of leads.

You need to be more diverse with your messages. You need to think out of the box because there are many modes you cannot use. I’m not trying to spam. I’m trying to get to the people who need help. I type that I can help them. You need to be a bit more sophisticated about the messages but it still can be done.

What about driving for dollars?

We use the DealMachine app.

You don’t need to have a lot of money to get to financial freedom and make a lot of money.

It’s simple. You’re pulling those, getting the numbers, calling, and texting. Is that how your lead generating?

Nothing else.

Same with us. We’re doing a little bit online with some lead generation from the internet. The lion’s share of what we do is picking up the phone, consistently making calls, building up, following up, and then texting, as well. It’s interesting that you mentioned that, Gal because texting restrictions have gotten tighter but we found that there are more quality leads. I feel like a lot of people have abandoned that. Simple plan, you put it together. Who’s doing the lead follow-up? Is that you, Gal?

Yeah. I have a VA who also helps save with a few of my tasks. I have a few VAs now. I found somebody who’s good. It’s not easy to find a good mutual system. They’re doing a good job, and then I’m following up. I’m making that acquisition powerful now. Eventually, I would like somebody to do the disposition and acquisition.

Gal, I want to break down because you’ve got a deal that you’ve got under contract is a nice, juicy, big deal. You got a 24-unit deal under contract. I want to break that down. How’d you find that deal? What are the economics behind it?

It was funny because we were driving for dollars and we sold this vacant property in not good shape at all. It’s a twelve-plex. We tried to call the guy and he didn’t answer for a few days. Eventually, we managed to talk to him. He had another twelve-plex in a different entity, in a different company. After a lot of conversations with him, we haven’t made the contract. We didn’t close it yet. We will buy and hold and renovate it. We already have the teams to do it, the contractors, and everything. Eventually, we’ll take our money back.

When you get done with this, how much equity do you think will be in that deal?

I hope, as much as possible, at least $400,000.

The net worth is all about the assets that you own versus how much you owe on them. You’re adding $400,000. This is a conversation that you had from a driving for dollars lead that wasn’t even the property that you were calling about.

I was just driving and sold the property. It was amazing. I want this property.

It’s going to close. I know you and I know that you’re on top of that $400,000 in equity, one conversation from a driving for dollars lead. Everybody wants to try to overcomplicate this. Let’s keep this simple, talk to people. Gal, what’s your number? What’s your goal in mind? I know you have it. How many would you like? What’s the net worth goal? What are you going for? Clarity brings energy. What is your goal with your portfolio?

My goal, and it has always been my goal, is to get to 100 properties for myself because this property, the 24 units, it’s like 50%, and then to do other things. First thing for myself that I know is that I’m going to be in a financial freedom bond and then I can do whatever I want. I could travel. I could be with my family. I had my first boy, so I spent as much time with him as possible. He’s amazing.

What’s his name?

Adam Michael Shmukler.

Congratulations. Give the audience a way to reach you. Maybe they’re in Tel Aviv. Maybe they want to reach out. Maybe they’re here locally. Maybe they’re in Houston or they’re in Jacksonville or Austin, and they want to squat up with you and connect with you. What’s the best way for people to do that?

The best way is to send me a message on Facebook. My name is Gal Shmukler.

WI 767 | Closing Wholesaling Deals

Closing Wholesaling Deals: If you find a good deal, eventually, you’ll find a lender that will give you most of the money, then you can refinance it.

 

What an inspiration. Some people spend an average of about five months before closing the first deal. You got it done in about half that time. You got your first one under contract in three weeks by just being proactive, taking action, and following the instructions. It’s incredible. Now you’re off and running. You’ve built a portfolio. You got three buy and hold, and you’re looking to buy another one. You’ve got seven under contract and probably keeping some of those as well and selling some of those.

It’s not all about the cash upfront. It’s also about the equity that you have. If you have the opportunity, if you don’t have to live off and keep the equity, it’s going to pay you way more in the long run than taking a check. If you need that money to replace your income to get you out, take it now, wholesale them, and get a big healthy, happy, heavy bank account so that you can open up your schedule to do this business full time.

Gal has given us a beautiful example of the smart thing to do for building wealth, not just making money. Gal, I’m so excited to have you on. It was fast. I loved it. We talked a lot in the beginning and you’ve been going absolutely bananas. That is awesome. Thank you, Gal, for being on the show. For everybody out there, if you’re interested in joining the most proactive group in real estate investing, it is the TTP family. It is the TTP coaching program.

Go to WholesalingInc.com/ttp. Check out all the testimonials. Keep scrolling, google it, do whatever you need to do. Do your research. If it feels good in your gut, sign up for a call. Join us. I look forward to working with you personally. That’s it, Gal. Thank you for joining us. For everybody out there, I love you. I encourage you as always to talk to people. Until next time. See you guys.

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About Brent Daniels

WI 747 | Real Estate CoachBrent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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