Have you started your Wholesaling journey yet?
If the answer is no…. Why?
In this episode, Darrin Bentley interviews Tom Krol about the very beginning of his journey. We discuss all of the painful mistakes he made, how he ultimately made it to the finish line, and how truly anyone can make it in Wholesaling if they find their Why and follow instructions.
IN THIS EPISODE YOU’LL LEARN:
- How Tom automated his business and closed over 100 deals in just 18 months
- The art of delegation
- Why hustle alone isn’t enough to build a great business
Wholesaling is the Cornerstone of Real Estate Investing
Wholesaling is the act of finding an individual willing to sell their home at a discounted price, also called a motivated seller, and finding a cash buyer who wants to purchase the contract on that house.
Wholesaling supports every area of the real estate industry. If you want to be a successful rehabber, landlord, or just fill your own portfolio, Wholesaling is the best way to learn how to obtain the most discounted properties in your neighborhood.
Myths about Wholesaling
- “I’m not a good at sales so I can’t do Wholesaling.” You don’t have to be a salesperson to be a good Wholesaler – Tom was fired from five sales jobs before he started his Wholesaling business. It’s about finding those people who want to sell their house, not convincing them to sell.
- “People won’t sell property at a discount.” People sell their property for cents on the dollar every day, for a variety of reasons. These sellers are only concerned about closing the deal and getting cash.
Finding the Deals
Tom mostly markets with direct mail. You’re not concerned with the response rate – you want to make about five times as much revenue as you spend on marketing, and direct mail is a reliable, automatable way to accomplish that.
Automating the Business
In his first 18 months, Tom fully automated his business and closed over 100 deals. He was able to do this because he delegated.
The most important thing to know if you’re considering delegating is that you very well may be the best at whatever task you are assigning, and you may see a short-term dip in revenue. Your employee won’t be as good as you at first. You have to get comfortable with that because the volume, and your time, will make up the loss in revenue.
It’s also important that you don’t hire people for task-based positions. Make them project managers, give them commission, and give them ownership in what they’re doing.
Hustle isn’t Enough: Find Your Why & Follow Instructions
If you are truly motivated by an important Why, you will find out what you have to do and then take every action to accomplish it; you won’t be distracted by learning or what ifs.
What is your Why? Your kids, your wife, your legacy?
Find the one thing that you will do anything for and make that the heart of your business.
With your Why as motivation, find someone who is already successful and get instruction. Don’t get stuck in the learning phase. Just find someone who is making Wholesaling work, learn from them, and implement that process exactly.
- Listen to more great interviews with Darrin on BigWig Nation
- The Four Spiritual Laws of Prosperity: A Simple Guide to Unlimited Abundance by Edwene Gaines
- Rhinoceros Success: The Secret to Charging Full Speed Toward Every Opportunity by Scott Alexander & Dave Ramsey
- The Compound Effect by Darren Hardy
- Getting Things Done: The Art of Stress-Free Productivity by David Allen
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
Subscribe to Wholesaling Inc
Darrin Bentley: There are a lot of people listening to this podcast right now that want to wholesale real estate, but for some reason they just won’t do it. Maybe they just like the idea of it more than actually doing it I don’t know. But if you are one of these people, ask yourself this question, “Why am I not doing it? What is the reason, the real reason I am not doing it?”
Now there could be a ton of reasons why you’re not doing it I don’t know. But I think until you really have that why nailed down, all you’ll continue to be is a spectator. Just kind of watching from the sidelines and wishing things were different. So the question of why is a very important one. What is your why? I know you hear that all the time, but what is your why? Is your why strong enough?
If your why is to just make money, money can only motivate you so much. It’s just not a strong enough why. But if your why is maybe to send your kids to a great school or you just want to spend more time with the kids, maybe putting them on the school bus or something, those are much stronger whys. So if you are struggling, really think about why that is and focus on your why.
Now some people will convince themselves that they will never be able to do this. Like when they see someone who is really successful and they think that that person is just lucky and it can never happen for them. Well, I’m here to tell you that luck is something that you can manifest and create on your own. As far as I’m concerned, the only luck that exists, is the luck that we create for ourselves.
On today’s podcast, we’re going to go back in time with Tom Krol. We’re going to go back to a time when he was just starting out and he was just starting to explode with his own wholesaling business. He’s going to share everything that he learned, all the painful mistakes he made, and what ultimately led him to the finish line.
And I was the one who actually got to put Tom in the hot seat for this podcast on my own podcast, BigWig Nation, which you can check out on iTunes and Stitcher if you like. So I really hope you enjoy this episode as it is very near and dear to my heart, enjoy. Tom Krol, welcome to BigWig Nation. I am really, really happy to have you here with me today man.
Tom Krol: Darrin, it’s awesome. It’s my pleasure. I’m honored to be on the show. It’s awesome.
Darrin Bentley: Awesome man. I am so looking forward to this conversation because I know you have a ton of great stuff going on and we’re going to get into… this is just going to be a crazy conversation. So really excited about it man.
Tom Krol: Yeah, this is awesome. I have kind of stuff I want to share and some really exciting information. So yeah. Let’s do it. Absolutely.
Darrin Bentley: Awesome man. So let’s jump right into it. For the people out there that don’t know you, who is Tom Krol?
Tom Krol: Who is Tom Krol? Well, here’s the deal. Tom Krol two years ago, was a lawn care guy selling lawn care service door to door in Florida in the heat, 90 degrees, 25 pounds overweight, sweating in June and July and absolutely miserable, failing, bankrupt, literally bankrupt. Bank came and took the house, foreclosed on and all kinds of problems. And in the last two years, I’m happy to say I was introduced into a little investing niche in real estate and have been able to just do a complete 180 in a very short amount of time.
Darrin Bentley: And you were doing this two years ago, you’re saying.
Tom Krol: Two years. Two months.
Darrin Bentley: Wow. Wow.
Tom Krol: Yes, I was actually not making any sales. I’m a horrible, horrible, horrible salesman. That’s what I learned from selling lawn care service. And what happens when you don’t make any sales and you’re responsible for sales is, the manager and the district manager come in and they say, “Hey, you haven’t sold enough lawn care service. You’re out.”
Darrin Bentley: Ouch. Ouch. So, you got into this little niche, right? It’s in real estate. It’s real estate wholesaling.
Tom Krol: Yes.
Darrin Bentley: So for the people listening out there, talk about what is it and why should they care?
Tom Krol: Wholesaling is the cornerstone of all real estate investing. Quite simply, that’s what wholesaling is. Wholesaling will allow you to buy the most discounted properties in your neighborhood. So for instance, if you’re going to just be a rehabber or a landlord and you want to buy the most discounted properties in your neighborhood, the wholesaling teaches you how to do that. Wholesaling. Also, you can get into without any cash or any credit. And you can just make an absolute fortune, just an absolute fortune in a very, very short amount of time.
Darrin Bentley: As you did in two and a half years. What have you done in two and a half years? Where is your business today?
Tom Krol: Well, my business, I am happy to say is 100% automated. It totally runs without me. I mean that sincerely meaning 100%. It is 100% on autopilot. I have a report that I get on Wednesday and on Friday that just tells me where my numbers are. It runs 100% without me.
I was able to do within my first year with a little bit of hustle and drive and grit and determination, I was able to do over a hundred deals. Actually my first year and a half, in my first 18 months I did over a hundred deals. And it’s been amazing. It’s been an amazing journey and I started off at the worst possible place you could ever start.
Darrin Bentley: Wow. That’s incredible, man. That is incredible. You’re talking about… first off, the fact that this is automated. Wait, let’s just step back for a second. In two and a half years, what you’ve accomplished is crazy. You’re making now multiple six figures, and two and a half years ago you didn’t even know what the hell this was.
Tom Krol: Yeah, that’s exactly right.
Darrin Bentley: But it’s now fully automated? Talk about that a little bit. How do you fully automate something like this? Man.
Tom Krol: When I first got started, I had lost my job. It was actually my 13th year wedding anniversary. I’m 36 years old, but I got married when I was young and it was my 13th wedding anniversary. And I was sitting in my little cubicle about to start my day and go out and sell lawn care service. And I was online looking for places to go out to dinner that night with my wife that were affordable because we were dead broke. So I said, “Where could I take my wife?” And I’ll stop at Publix, the local grocery store chain in Florida that any of your Florida listeners know I’m sure.
Darrin Bentley: Mm-hmm (affirmative).
Tom Krol: And we’ll get some flowers. I’ll go out there. And while that was happening, the district manager and the vice president of sales came in and said, “Tom, you’re fired.” Which was crazy because I was wearing my lucky Tommy Bahama socks that day. So I couldn’t believe it.
Darrin Bentley: Oh, man.
Tom Krol: Which ended up being very lucky by the way.
Darrin Bentley: They are lucky, right?
Tom Krol: They are still lucky.
Darrin Bentley: Yeah. Great.
Tom Krol: So we got fired and I had to come home and tell my wife on our anniversary, on my 13th year anniversary. “Sweetie, I got fired today.” And no surprise because I had five jobs, all in sales before that. And I had gotten fired from every one. So she was luckily very supportive. Julie as usual.
Darrin Bentley: Mm-hmm (affirmative).
Tom Krol: I started putting my resume together and I was looking for a job. I live in a little town called Port St. Lucie, Florida. And I started putting my resume together. And I was nervous. There’s not a lot of good jobs here. And the economy wasn’t very good two years ago. So, I called my brother Todd and I had told him what had happened. And he said, “Tom, you got to get into wholesaling right away. It’s the only thing you can do and it’s your fastest path to income.” And I said, “Todd, you live in a big city of San Diego. I live in a little tiny town and it’s not going to work.” And I fought him the whole way, kicking and screaming. He dragged me into wholesaling and I did one deal.
My first deal was a total disaster. I had to actually follow the person home to collect my $2,000, which was not a lot of deals. I’ve gotten a lot of money. And then I did my second deal for 7,000, and then it was just off to the races. Once I saw the kind of cash you could make doing this, I just absolutely went full force hustle, grit, drive and all that good stuff and we just went 110% in one direction. It’s been an amazing journey.
Darrin Bentley: Yeah, it sounds it. And a couple of weeks ago, I had Dean Graziosi on. And it’s funny because the way he was breaking it down, I was listening and I was thinking like, wow, this does sound like some powerful stuff. Because you instantly are walking into the situation with leverage and you don’t have to use any of your own money, which is great. So, I’m sure that there are a lot of people listening to this right now probably thinking automatically just disqualifying themselves from saying, “I’m not a salesperson. I’m afraid to talk to people.” Et cetera, et cetera.
Walk me through a typical conversation that you might be having with a seller. Because again, this is all about finding motivated sellers and kind of be in the middle man to make that money. So walk me through a typical conversation you might have with one of those people.
Tom Krol: Sure, Darrin. So here’s the key to wholesaling. First of all, just to give you a brief overview of like what is wholesaling. Wholesaling means that, you find a seller who is willing to sell their home at a discounted price, which is very easy to do. It happens every day.
There are tons of homes that are selling right onto your feet in your neighborhood that are selling for 40, 50, and 60 cents on the dollar. And that’s usually because that’s a seller who we call motivated. For instance, they’ll say, “Tom, I have a home in Florida. I just got a job offer in California. I need to sell my home immediately. I’m getting a huge pay raise. I don’t care about this house. I just need the convenience of a fast sales. I’m willing to sell it at a discount.” That’s what wholesaling is.
What wholesaling is to be clear, is you put a home under contractor. You get a contract to buy a home, and then you sell the piece of paper. So that’s what you’re doing. You would say, “Mary, your home is worth 100,000 I can give you $50,000 right now.” They signed the piece of paper that says, “okay, I’ll sell my home for 50,000 for a fast sale.” You then take that piece of paper, you bring it to your cash buyer investors, and you say, “Hey, cash buyer investors, you can buy Mary’s house for 50,000 if you give me $10,000 for this piece of paper.” They take the piece of paper and they buy the house.
So as a wholesaler, you are never actually buying the home. So you don’t need cash. You don’t need credit. There’s no deposit or very, very, very little deposit, like a dollar or $100 or something like that. And quite frankly you will just leave that at the escrow company. So you’ll really have to put that down.
So it’s an amazing way to secure property at a deeply discounted price and then leverage it however you want. You can buy it If you’re a rehabber, you can buy it if you’re a landlord, you can flip the piece of paper if you’re a wholesaler. And that’s what wholesaling is. As far as being a salesperson, I can tell you right now, I am not a salesperson. I have literally been fired from six sales jobs.
Darrin Bentley: Yes did say that.
Tom Krol: Yeah, it is crazy. The best way to explain that Darrin is very simple. If for instance, if I’m going out of town and I said, “Hey Darrin, my neighbor has a minivan. They just bought it for 20,000 but they have to go back to Cuba because there’s a family crisis and they’re not going to come back and they just need some fast cash for the car. I’m going out of town. They agreed to the price of 10,000. Can you come over and just buy the minivan for 10,000? The thing is that you wouldn’t need any training for that because you don’t have to be a salesperson. They’ve already decided to sell that van for a discount.
Darrin Bentley: Right. You’re not trying to convince them to do anything, they’re trying to really probably convince you, I would think.
Tom Krol: Absolutely. And that’s one thing that we always talk about, is you always want to make sure that they’re trying to convince you to sell you the house or for you to give them your money rather than you trying to convince them to give them the house. And we call it being a deal finder instead of a deal creator. And it just makes everything so much easier.
Darrin Bentley: Makes total sense too.
Tom Krol: Yeah.
Darrin Bentley: Interesting. So again, just give me a basic idea of how one of these conversations might take place.
Tom Krol: Sure. So what we do is we send out some marketing and the seller will call us back and they’ll indicate that they’re interested in selling their home in a discounted rate for a whole range of reasons. Some of the benefits that we have is that we can buy a house as is. So the homeowner doesn’t have to put in money or we can buy a quickly or there’s other numbers of reasons.
So for instance, a typical call will say something like, “Hey Tom, this is Mike. I have a home. It’s a second home. It’s down in Florida. I live in Michigan and I really need to sell it right away. The home has a hole in the roof and I need to sell it right away. I can’t afford to fix the hole. It’s damaged. Some of the inside of the home there’s a little bit of mold. Can I sell it to you? I’m going to be down in Florida next week.” We’ll say, “Great, let’s meet.”
So we go to meet with Mike, and what we do during that conversation, we really just build some rapport with Mike. We just want to have a basic understanding of this situation. The real estate Darrin, really is totally inconsequential. I get a basic idea of what the house is worth and we typically want to pay anywhere from 40, 50 or 60 cents on the dollar for the current market value.
Darrin Bentley: Right.
Tom Krol: And the service that we provide for that homeowner is, it’s a fast sale. Once we put it under contract, we always buy it. Or one of our partners are cash buyers buy it. So they don’t have to be worried or have anxiety about that. We cover all the closing costs. So that’s another huge advantage for them. So really to get very specific, what we’re doing is, we’re providing a service where we can buy a home quickly and the homeowner can get out of that property very quickly.
And one thing that we always say… a lot of people say there’s no such thing as a dumb question. Well, that is true, but you don’t want to sit there the whole time. And when you’re starting to get into wholesaling, just continue to ask this question of, “Who would sell their property at a discount?”
Here’s what I can tell you as an experienced wholesaler, investor and now landlord, which is insane that I now own multiple properties that I’m a landlord of. That is, I can’t believe I’m telling you that from where I was two years ago.
Darrin Bentley: Wow. Wow.
Tom Krol: But, what I can tell you is, it happens every single day for whatever reason. And there’s a plethora of reasons. Sellers are willing and wanting to sell their homes at massive, tremendous discounts for a fast deal. And that’s where we come in and then we just handle business and that’s it. It’s easy.
Darrin Bentley: Wow. It sounds like a very powerful model. It really does. So talk to me about finding these deals. How do we go about finding these deals? Somebody wants to get into this and they say, “I don’t know how we’re going to do this.” Let’s say somebody wants to start looking like, “This sounds really interesting.” How can they find deals like that where you’re talking about 50, 60 cents on the dollar?
Tom Krol: It’s a great question. I can tell you that my bread and butter for marketing is direct mail. A lot of people are negative about direct mail. They’ll say things like, “Oh, you get three phone calls” or 3% response rate or 1% response rate or whatever it is, and they knock it and that’s great because there’s more for me. So I have no problem with that.
Darrin Bentley: Yeah, I believe in direct mail too. As a matter of fact, I was having a conversation with a good friend of mine this morning who runs a lot of direct mail campaigns. And I think, when you know how to speak exactly to that target, direct mail can be massively powerful. As you witness because you’ve built your business on it practically, right?
Tom Krol: Absolutely. You can take away my other marketing channels, but without direct mail I would be dead in the water.
Darrin Bentley: Yeah.
Tom Krol: So direct mail is my bread and butter.
Darrin Bentley: Wow. That is powerful right there.
Tom Krol: Absolutely. And it’s the truth. And I’ll tell you that the direct mail, what I love about it is, instead of looking, one thing I always tell my clients is don’t look at response rate. Look at money and money out. And what you want to do with wholesaling is you want to do five times your money.
So for instance, if you put in 5,000, you want to get 25,000 back, net 20. That’s a good healthy ratio. Now if you do three times money in money out, that’s great too, that’s acceptable. But you really want to shoot for five. And direct mail really allows you to have that consistency, that scalability and that automation. And that’s what’s really so wonderful about direct mail. So direct mail is how we do it. That’s how we, that’s how we get our sellers to call us.
Darrin Bentley: Right. Right. Powerful man. Powerful.
Tom Krol: Yeah.
Darrin Bentley: So for the people that are listening out there, starting a wholesaling business from scratch two and a half years ago. You knew nothing pretty much about wholesaling and now you’re doing really, really well. How fast can a person just start to make money with this thing?
Tom Krol: Yeah, absolutely. I would say, a lot of our clients Darrin, they start off and they’re doing their first deal in about four to six weeks. Yeah. The bottom line with wholesaling is, it takes hustle. But the one thing that everybody forgets about hustle. And a lot of people, you’ll see them on Facebook, “Oh, I’ve got hustle, hustle, hustle.”
But a lot of people forget about hustle is that, without a clearly defined goal and objective or target, hustle is totally dead. As a matter of fact, it’ll make you spiral out of control even faster. So I think the key is with wholesaling. And I was very fortunate to have my brother who got me into it, who knew what he was doing. Is one, you need clear instruction, step-by-step instruction on what to do and how to do it.
So one thing I always say is education is a cancer. Because when you’re in that learning mode…
Darrin Bentley: [crosstalk 00:19:29] analysis paralysis, right?
Tom Krol: Analysis paralysis, information overload. It’s an absolute killer. All these people who say, “Oh, I want to know before I go.” Wholesaling is not for you. You really have got to be willing to look like an idiot in front of the seller, look like an idiot in front of the buyer and just keep moving forward. Not be a perfectionist. And that is the key to wholesaling is knowing exactly what you want to do, which is getting your first deal.
And then knowing what is the first step I need to do? And then having hustle about that first step. And that’s the key to wholesaling is really taking a massive action on the first step and then the next step and getting right to your goal and not worrying about interesting domain names and fancy business cards and all that stuff.
Darrin Bentley: Yeah. All that stuff. Just basically get your ass out there and do it is what you…[crosstalk 00:20:24]
Tom Krol: Exactly, I love it. get out there. Let’s go right down.
Darrin Bentley: You mentioned a minute ago about clearly defined goals and I know that having goals is very, very important. But talk to me a little bit about your goal setting process. Like how did you do it?
Tom Krol: So this is really interesting. When I started, I was a big fan of people like Gary Vaynerchuk and Rachel Ray. She never even went to culinary school. So I used to follow her because she just outworked everybody. And that was my attitude when I started. Is just outwork everybody. But what I realized about these individuals that I was following and they were mentoring me as I was learning from their books and their information is that, they all had crystal clear goals. So I am a maniac about my goals. I have annual goals, quarterly goals, monthly goals, weekly goals, and daily goals.
Darrin Bentley: Daily goals?
Tom Krol: Absolutely.
Darrin Bentley: Draw down, man.
Tom Krol: Yeah, and this is something that I learned from David Allen of GTD, Getting Things Done. Who am a huge fan of huge fan. One thing he talks about is he says, “When you are getting ready to take on a task or a project, what you have to do is you have to look at what is the very next item that needs to be done in order to accomplish this goal.” So not the general idea or direction, but what is the actual thing you’re going to drive to Disney world? First thing you’ve got to do is you’ve got to put the key in the ignition. Then you’ve got to start the car, then you’ve got to back out of the driveway.
So I break down to my goals literally in just very granular specific objectives. And then those become my daily, weekly and monthly goals to hit my 90 day goals. And that I think is a key for somebody who has a lot of hustle and wants to work hard and be a rhinoceros. You’ve got to have clear objectives.
Darrin Bentley: Yeah. Yeah. Now it makes total sense. But two and a half years ago, this was just not part of who you were. Is that right?
Tom Krol: I have had no training or experience in real estate.
Darrin Bentley: Not just the real estate thing. I’m talking about, clearly defined goals and just that mindset.
Tom Krol: Yeah.
Darrin Bentley: You didn’t have any of this, right?
Tom Krol: I had nothing. And I think what happened to me is, I will tell you not to give you a big, sad story, but it was a day or two after I gotten fired. And I came downstairs and I was making a cup of coffee and I didn’t see my wife anywhere. So I just went looking for her and I found her in the bathroom and she was crying. And she didn’t know where the money was going to come from. And she was literally worried about buying groceries because she wasn’t sure if she was going to be able to pay the mortgage. If there is a rock bottom. That was it for me.
Darrin Bentley: Yeah food.
Tom Krol: So yeah, food. Don’t take food away from me.
Darrin Bentley: Yeah, It’s definitely not overrated. That’s for sure.
Tom Krol: No. No. I said, “Julie, you pay the groceries, forget about the mortgage, get the groceries.” I think I called my brother when it happened and I was very fortunate to have him in my life and he just sent me on the right path. One thing I started doing was, I sold some things to get some of my first marketing dollars and I just started taking action. When I had gotten into wholesaling, I started listening to all of these coaches out there about how to wholesale and I was just taking notes and notes and notes, notes, and I wasn’t doing anything.
Darrin Bentley: Like a lot of people do.
Tom Krol: Like a lot of people. Yeah, because it makes you feel good. When you’re learning, you feel great. You feel accomplished. You wake up early, you go to Panera Bread, you put the course in and you start taking notes. You feel like you’re on your way and nothing could be further from the truth. We are not on your way.
Darrin Bentley: Many times it’s just a distraction. It’s to fill another void. You just convincing yourself that you’re actually doing things when, in reality, you’re not doing anything.
Tom Krol: Absolutely. I couldn’t agree with you more now. And I realized at that point I need to make money. So I stopped watching television. I started reading business books on the advice of some people that I met and my brother especially. And what I did was I sold my golf cart because we had no money. I had a little peat up golf cart that Julie would use to take the kids to school. And I sold it, which is a big deal in Florida. You don’t sell your golf cart unless you’re really serious here.
Darrin Bentley: Yeah. Yeah. Tell me about it, right?
Tom Krol: Yeah. So I sold my golf cart and I used it for my first mailing campaign and I will tell you that I acted a little prematurely and I forgot to put a very important piece of criteria in my marketing. So it was a complete loss. I lost every penny of that first campaign. I spent $2,000 on it.
Darrin Bentley: Two grand down the tubes.
Tom Krol: Yeah. And then I found two grand again, I did it again. And I think that that’s really the point is. I think people say they want it, they want it, they want it. But one thing that somebody told me… I heard analogy once. They said, “You’ve got to fight for your life. You’ve got to fight for it, you’ve got to fight, fight, fight. And they were talking about this. And then they use that analogy, which I always use now with my clients, which is, you’ve got to pretend you’re out at Starbucks. If you have children, you’ll be able to relate with us. And I know you do Darrin.
So if you have kids, you’re sitting out there with kids and a van pulls up, they throw your kids into the van and they drive off. And if they called you up and they said, “Darrin, you have to wholesale a deal in the next 72 hours in order to get your back.” I guarantee you 100%, you would wholesale a deal. And that’s how you really have to attack everything. And the key is you wouldn’t just be running around. You’d find out first, exactly what you have to do and then you would do it with the right attitude where you can be guaranteed success.
I know every day I’m going to wake up and I’m going to be successful because I’m attacking the day with that mindset. I’m never going to be in a situation again where I come down and I find my wife crying in a bathroom about, whether or not to buy groceries or pay the mortgage. I’m not going to let that happen because I take that tenacity to my day every day.
Darrin Bentley: Yeah. Yeah. And I think unfortunately most people, like you said, they like the idea of wanting it. They think that they want it, but they really don’t want it. They don’t want it bad enough.
Tom Krol: Right.
Darrin Bentley: And it’s a tough one. That’s a tough one because, you have to be willing to do the stuff whatever it takes. Just like that analogy, whatever it takes. I love that analogy by the white man. Great.
Tom Krol: Yeah. It is elementary, but if you really take it to heart and you really think about it, if you can’t be stopped and anything is possible, if you approach it with that attitude. And that’s why some people will say, “Well, if you hold someone’s head under water and they want it as bad as they want a breath of air.” That’s true. But that’s not strong enough because some people I find they love others more than they love themselves.
So that’s why I always say it’s your children. If you do it for your kids or your loved ones or your parents or your brothers and sisters and siblings whoever it is, I think that that’s a greater love and that really shows you right away where you have to be in your mindset. And although it’s elementary, I think it’s a great analogy that really show you what it takes. And then everything else kind of falls in line automatically.
Darrin Bentley: Yeah, absolutely. Absolutely. So you said a few minutes ago you were reading a lot of books, you started reading a lot of business books. What were some of the books that you read or I should ask what was, if there was one book that really just kind of just smacked you in the face and gave you a major shift in your thinking?
Tom Krol: Yeah. So I have a book that I’m going to recommend that is an absolute 100% game changer. It was recommended to me and I will tell you, let me just preface that by saying I now read a business book about every five days. So I am just on a tear with reading business books. I love them. I read them and I hardly watch any television at all. I watch your business with JJ Ramberg and I watch shark tank and the profit with Marcus Lemonis. That’s about all the TV I watch now. So I love it.
But the one book that I would say is going to give you an immediate impact in your future. And it happened me, it was recommended to me by three millionaires within a 48 hour period, just coincidentally, is The Four Spiritual Laws of Prosperity.
Darrin Bentley: Yes.
Tom Krol: I don’t want to beat a dead horse, but I can tell you that absolutely immediate, immediate results from that book. You got to follow it with pig headed discipline and you’ve got to implement it. And if you do, it’s a very easy read.
Darrin Bentley: Yes it is. And I’m not much of a reader, but that book, all I could say is it is a majorly, majorly powerful book. In fact Edwene Gaines, the author of that book, I want to have her on the show. I think she’s brilliant. I think that book was a fantastic book and I got to say I’ve implemented everything that I’ve learned in that book and it really is a game changer. It just makes you see things from a completely different vantage point.
Tom Krol: There’s no question. And I think one thing I heard a while back, which it really speaks to this book is that, everything you want is on the other side of your comfort zone. And that book, it gets you really uncomfortable because if you really are open to it and you do it, it really will get you out of your comfort zone and get you to do the things that you really don’t want to do. And you think like you’re second guessing yourself the whole time. But if you stick with it, Oh man. just an overflow. I can’t say enough about it. Amazing. Amazing. Amazing.
Darrin Bentley: Yeah. I couldn’t agree with you more, man. Trust the process. That’s it.
Tom Krol: Yeah.
Darrin Bentley: Trust the process. Now I know that you are a hustler, you are a grinder and you just love working. You work your butt off. How many hours a day are you working right now?
Tom Krol: Well, I’ll tell you, when I first started, I have a few great books I can recommend, but there’s another great book called Rhinoceros Success. And I think that whenever you start anything, when you start pushing that Boulder up the hill, you really have to have that rhinoceros attitude. So when I was first starting, I was working day and night. I will tell you that no one will outwork me. I will outwork anybody. If you have a degree, I don’t have a degree, but if you have one or whatever you have, I will do better by outworking you. That’s my attitude.
But I will tell you that that is not a very good longterm strategy and it took me a long time to realize that you really want to go from being a rhino to being more of an Eagle. Or what I like to say sometimes it’s going from like Maximus to being Caesar. So I think it’s great to be Maximus and be a leader, but I am much more interested at this stage of the game in hiring leaders and being Caesar who has the vision of my business and my now multiple businesses and where I want to go. But I think that that is the key. Is really leveraging other people’s time and other people’s leadership in order to lead teams and delegate teams to where your vision is.
So when I first started, the answer to your question is, I was working every hour of the waking day pretty much I would meet with sellers. I’ve actually met with sellers at 11:30 in the evening and I’ve met with them super, super early in the morning. I don’t know what the earliest time was, but very early.
Another great book is The Miracle Morning that I read it. I started waking up about 4:45 in the morning and I outwork everybody. At this point, the wholesaling business pretty much runs 100% without me. I spent a ton of time with my family and I would say on the wholesaling side, I would say realistically I put in about four hours a week, something like that. So very much Tim Ferriss model.
Darrin Bentley: That’s incredible, man. That is incredible. Talk to me a little bit about outsourcing the power of outsourcing. Because, a lot of entrepreneurs out there, they know that they shouldn’t be doing everything but they try and it kills you, it really kills you. And you now have a business that is essentially running fully automated. So talk about outsourcing and how you are able to do that.
Tom Krol: So outsourcing, I made a ton of mistakes, a ton of mistakes. But here’s the most important thing I can tell anybody or share with anybody about outsourcing and delegating and hiring people. The most important thing is that, you have to realize when you’re thinking to yourself, “I don’t want to hire a salesperson because I’m the best person to speak to my clients.” That may be true.
You may be the best, but the problem is you have to outsource knowing that you’re going to have a dip in revenue. So I think that that’s the major pivot that you have to make. That’s the major mind shift. Is you have to understand that when you outsource or hire or bring somebody else on board, they’re not going to do as well as you at first. And that’s okay. So we now typically say, “We outsource a position or a role, it’s going to be about a six to eight week dip in revenue, especially in the sales side.”
You have to get really comfortable with that. You have to get comfortable with that because here’s the thing, the volume is going to make up the difference in the loss of revenue. So yes, nobody might be as passionate. And all of that is garbage because you ultimately do end up finding really awesome people who are much more passionate and much better at selling than you are. Because if you’re an entrepreneur, you’re not the best sales person in the company.
There are people who are proven sales company people who will come in and be professional salespeople and you could hire virtually or locally depending on what you’re doing. I prefer virtually. But that’s really the number one keys. First and foremost, realize that it’s going to take some ramp up time and they may not be as good as you and that’s okay. That’s number one.
Number two is that, you have to make sure that you don’t task-based your hires. You need to give them ownership in what they’re doing. So what I mean by that is, don’t hire people specifically for one task. Hire them more generally as a project manager, put them in charge, make them responsible, make them part of the team. Everyone on my team gets commissioned in some way from how well the company does. So I’m a big believer in ownership over just task-based hiring.
Darrin Bentley: Nice man. I’m taking notes as I’m having this conversation with you. I know I’m going to listen to it a bunch of times myself, man. But you’re just a wealth of knowledge and all this within two and a half years. That’s mind boggling to me, man. So, kudos to you, man. You’re really doing some great things out there, buddy.
Tom Krol: Yeah, well, I appreciate it. It’s amazing. I can’t believe in the top amount of time myself, but I’ll tell you there’s so much good stuff out there if you want it. And if you know how to receive, and it really does start with the four spiritual laws of prosperity. But then if you just look out there I just recently gone through some Close The Deal by Sandler. Amazing. It’s like you’re sitting down with a guy. The Compound Effect by Darren Hardy. These books are available to everybody no matter what your income level is. The knowledge if you implement and take massive action as you read each chapter in these books. The Secrets of the Millionaire Mind.
There’s so much good information out there. Changing who you hang out with and who you spend time with. Yeah, if you could just make some small shifts, life is so abundant. There’s so much out there for you and I just love it. Everyday I wake up and there’s no alarm clock. I’m up first thing and I just love every day. It’s so exciting to just be on this journey and be on this great adventure. And it’s really just a complete blessing.
Darrin Bentley: I love it man. I love it. I could hear the passion in your voice, man. You are your juice, man. To do the things that you do and I really, really love that. What is the first thing you do when you wake up in the morning?
Tom Krol: The first thing I do is, I do a journal entry. And what I like to start with is, first of all, anything that made me feel down the day before, I like to just keep a note of it. I will give you a perfect example. I had a meeting with somebody. I won’t say who it was, but I had a meeting with someone who is in my network and they were just exploding their business. I felt a little bit inadequate in that meeting and I made a note of that.
So one thing I like to do is I like to just keep a journal. I like to start off with some of the things that have gone wrong the day before and what can I do to them. So I make mistakes all the time and I think that when you have those feelings of not feeling inadequate or you feel like you can’t get something done or something’s in your way, I think it’s important to be mindful of it and then put it in its right place and kind of meditate on it. And why do you feel that way? And then try to find resources to help you get your mind shift in the right direction. Because that’s really the key. Is that your business is not going to outgrow you. You have to fix you in order to have a successful business. So I think that that is the key is really recognizing that.
Darrin Bentley: Yeah, absolutely, man. I think you nailed it right there. That is so, so true. Definitely. You know what, I just want to go back for a second. When you were talking about goals, and I’m still kind of my head spinning when you’re talking about daily goals. And I know that there’s a huge difference between goals and a to do list. Give me an example of just some of the goals that you are putting down on a daily basis. So I could get a handle on this myself.
Tom Krol: So let me start with this. I’m going to say there is a resource available to you by David Allen called Getting Things Done. This is not just a book that you just read and it gives you some good pointers. This is a religion. Getting Things Done, is a whole entire new way. So none of my ideas Darrin are original right? Everything is coming from someone else who has succeeded in this area.
And without getting into it, David Allen has a very interesting story, but if you really understand getting things done, I can tell you that that is the methodology that I follow exactly to give you granular information. What that means is throughout my day, I have things that come at me that I have to do. So what I do is I literally have a list.
I use my iPhone and I’ll just say it to my iPhone, “Remind me to do X, Y, and Z.” Or if I see something or I think about something, I’ll say, Oh, this is a great point to bring up. So I’ll say, “Hey, remind me to do this.” The next day, that morning, I will then put everything in its place. Some of the items, anything that can be done in two minutes or less, I will do immediately. So, if I have an item that’s very tiny for instance, one thing I like to do with my day is I like to send out some love to somebody.
So I’ll write a friend or somebody I’ve been thinking about or a family member and just tell them how special they are to me, how much they mean to me, something that they’ve done to me and just remind them of a funny story of something we did growing up or whatever it is or maybe a new client who’s struggling I’ll spend some really quality time with them in the morning and just write him a note of encouragement.
So sometimes I’ll think on that through out my day, and that can be done in a relatively short amount of time. So I’ll do any two minute items immediately. That’s number one. Anything that is going to take more than a two minutes, I would either calendar it for another time to be done. Or I will put it into a someday folder. Or I’ll delegate it to someone else.
So the order delegation is really key. And once you learn how to trust other people and work with them properly and give them ownership of your time, and ownership of your schedule and your resources and your money and they can actually have the authority to do things for you. Delegating becomes part of your life. So, a lot of the things that I think of are actually done by somebody else. They are done by virtual assisted or somebody else. What I do is the goal every morning is to completely, and this comes directly from getting things done it is to completely empty your inbox.
So, nothing should be pressing during your day except for your number one priority and this is something I got from Darren Hardy, The Compound Effect. Except for your top priority for that day. So whatever you have to do for your day, that’s the only thing that I really work on a day-to-day basis. Yeah to give you some specifics, that’s really a snapshot as I really used getting things done every single morning, and actually the person who introduced me to Getting Things Done was one of my clients Clayton Morris. He is the host of Fox News, Fox and friends and he is the one who introduced me to GTD and I use it and he uses it and it’s an absolute game changer.
Darrin Bentley: Wow. I love that. And I also love the fact that, some of those little tasks that you are actually reaching to people just to tell them that you love them that you care about them. Just be present in their lives. I still love that, man I really love that about you.
Tom Krol: There is a great guy, his name is Dr. Wayne Dyer and he talks about starting each day by just doing that. And I can tell you don’t do it expecting anything back but sometimes you do that it’s just the right time with somebody and it just can really turn things around for them. I have just a shoebox just for letters and thank you notes and things that people have sent me and done for me for doing that.
And you wake up every day and you just fell so amazing by just saying, “Hey” whoever it is “Hey I just want to let you know I’m thinking about you I think you are a really incredible person and I remember when you helped me out. I always remember, I learnt this from you.” It could be something silly like, “Hey, don’t die.” I don’t know what it means. Somebody took their time to tell you not to text and drive. That’s a good thing.
Darrin Bentley: Yeah. Yeah. Sure, man. I love that. And I love Wayne Dyer too, man. Big, big fan of Wayne’s. I’m going to have him on the show closer to the end of the year.
Tom Krol: Wow. Amazing.
Darrin Bentley: Yeah. Really, really looking forward to that conversation.
Tom Krol: Love it.
Darrin Bentley: So, what kind of advice would you give to the people listening right now who are think about jumping into this. What kind of advice would you give them?
Tom Krol: Wholesaling is an absolute blessing. It could be a blessing in your life, it’s a little niche market it doesn’t require any licenses or anything like that and my advice to you is get crystal clear instruction, not education. So you want to treat somebody who knows how to wholesale as an instruction manual, as if you bought a piece of furniture from a furniture store, and now you want to put it together, that’s how you have to look at your mentor in wholesaling.
Get crystal clear instructions, and then just have pig headed discipline and hustle abut getting the instruction done and that’s it. Avoid education and just go 110% and you will be on this amazing journey that is just incredible. And the that’s it.
Darrin Bentley: I love it. Great, great advice. Awesome advice. For people who want to learn more about this and maybe possibly even work with you, where can they find you?
Tom Krol: I have a website, hotsitwholesaling.com and there’s ton of good information in there. I know it’s been a ton of time on the website but I have a lot of great pointers and there are some ways to reach out to me if they want to reach out. But yeah, hotsitwholesaling.com is a great resource and certainly a way to get a hold of me if they are interested.
Darrin Bentley: Awesome, man. Awesome. Listen Tom, I really, really want to thank you so much for spending your time and just sharing such incredible information today, man. I really had a blast and learned a lot today. So I really appreciate your time.
Tom Krol: Absolutely. It’s my pleasure, I’m so honored to be on the show. It’s amazing. It’s really a pleasure so thank you very much Derrin I appreciate that
Darrin Bentley: Awesome. And thank you again and we’ll catch up soon.
Tom Krol: Al right, looking forward to it, enjoy the day.
Darrin Bentley: Already.