Posted on: September 24, 2021
WI 783 | Real Estate Networking

 

Learning how to network effectively is a must if you work in real estate. After all, networking is fundamental to the success of any business. Not only is it a shortcut to success, it also helps build long-term relationships that could give you opportunities to strategically develop your business and have better lead generation.

In this episode, Miesha Purnell will discuss how she builds her portfolio by engaging with many people in her area. She will then talk about the tenacity she needed to get out of her difficult situation as a single mother living in a shelter to building a successful wholesaling business. She will also go into how her business taught her to juggle time between work and family.

Episode 783: How a Busy Mom Found the Time to Become a Successful Real Estate Wholesaler

We are sitting down with Miesha Purnell. She has been proactive every single day. You can see it in the amount of steel and pipeline that she’s generating and the overall development of how things went from being a hustle into more of a systematic approach to the business development of the whole thing. We’re going to break all that stuff down. We’ll talk about some deals here and put you under the spotlight, Miesha. Welcome to the show. Thanks for being here.

Thanks for having me. I started in real estate in 2018. My prior life was as a CNA. When I first found out about real estate, the kids and I were in the shelter at that time. We were listening to The Breakfast Club and this guy was talking about how you could buy a property with no money out of your pocket and sell it for a profit. I’m like, “Here we go with this. This could happen.” Something told me to look a little bit deeper into it. Sean Terry was one of the people that I followed a lot.

I said, “Let me shut off this first and get me and my kids settled. We’ll reverse back to it.” Fast forward to January 2018, I deleted my old Facebook page and added a brand-new page, which was my business page. That was my personal and I added all investors in my area. I put in investor and got the ad and people that were in my area. I believe I have met almost everybody from that page that I started in 2018. We’re actually making money now.

That’s taking the network to the next level. It goes to show it’s not that difficult to tap into the space if you can get a little bit resourceful.

Also, what I did was I went on the page one of the guys that are over the WiscoREIA and added a lot of his people. Me and him got half and half mutual friends. It’s not because we know everybody. It’s because when I first started, I went on his page and added a bunch of people. I did that for a few people. That’s pretty much how I got started. I became one of the hosts for the National Investors Association WiscoREIA .

That gave me a lot of exposure as far as getting my buyers’ list up. My buyers’ list skyrocketed from being a part of WiscoREIA. One step and day at a time, I started with driving for dollars for one. I called bandit signs and let them know, “If you can’t get a deal off, shoot it my way. I may be able to help you out in some way. I’m also a licensed realtor. I’ll pay you a marketing fee.” I took it from there and my business spurred.

There are a couple of things that you mentioned that are pretty big. One of them, you said you were listening to podcasts and information back in 2018. You were at a shelter. That’s a tough situation to be in, a single mom type of scenario with kids and looking forward to something else. First off, that goes to show the type of tenacity and grit that you got to have to deal with a situation like that. Second, to have the optimism to look forward and want something else. A big kudos on that.

Every deal is completely different. It depends on what we’re doing in this deal of how we split that up.

It’s interesting. I also started with listening to Sean Terry way back in the day. The first few deals were because I listened to his podcast and started playing the same stuff. I love the guy. He’s one of my first mentors. You did something. We do it now and use it as a strategy. You tapped into the network that was in place and went in almost in the reverse format that everybody goes. People try to market, find a seller and worry about the buyers later. You went the other way around.

It seemed strange. They’ll say, “Go find a cash buyer that has $90,000.” Mind you, we don’t have that type of money. I’m like, “Who in the F has $90,000 sitting around?” I need to make them my friends.” To me, that was more important than finding a house because I thought that it was farfetched to find somebody. Looking back, I realized I was in a completely different world. Knowing somebody has that type of money in the account, it was important for me to meet those people first. Also, what I found was once I met and got around them, it went from looking at this guy on YouTube and saying, “He’s lucky. It’s just him,” but then I got this guy in my face doing the same exact thing. I’m like, “It has to be a me problem. It has to be something I’m doing wrong if everybody in this room is doing the same strategy.”

It does change your perspective. If you will change your environment, your perspective is going to change along with that. You get exposed to the way these people talk and think. The one thing that I learned when I started hanging out with higher-net-worth individuals was that they’re not any different than somebody who makes less money. To them, it’s easier. Their financial thermostat is higher. It’s almost like an expectancy, “It’s where I’m at. That’s the amount of money that I make. That’s normal.” It’s a different type of normal.

When you’re not exposed to those numbers or that level, it may very well be on a different planet. It’s going to be the same thing. Not until the point where you get exposed to that thing or environment, that’s when your thinking expands a little bit and you start to see the possibilities a little clearer. That’s exactly the same thing that happened to me. Coming from a humble background, everything is like, “People make this many deals and make this much money?” To me, it was insane.

It’s hard to believe at the beginning, but that’s what it is. It’s a different reality that we can choose to opt into. What you did there, it’s a strategy that we use now. On the Wholesaling Business Blueprint, we begin by doing market research. One of the first things that we do is make sure that we have enough buyers. We tap into the buyer database for whatever area you’re looking at and build up the sellers list from that. Everything is run by the numbers, which is exactly what you did back in 2018 and now you’re fine-tuning the whole thing.

I ended up joining the tribe because I was getting good deals, traction, and stuff. I reverse-engineered. I had all these people and data but no method. I just got a bunch of stuff, deals and files everywhere. I’m like, “It’s time for me to put this money into a mentor so that I could fine-tune that stuff and be able to scale it.”

You’ve done wonderfully. Every time we talk, you take the information, implement it and take that action. At the end of the day, nothing means anything unless you apply action to it. You’re good with taking it to the next level. The reason I know that is because you come back with higher-level questions. Every time we have a conversation, do something or break something down at the coaching calls, you come back with something higher from the next one.

I have seen it time and time again. I was like, “That’s a level-up question. Let’s go.” Your progress has been amazing. You have done a couple of different things. We were breaking down a deal on something that you’re going to be coming to in wholesaling. We were looking at your buy box and having higher-level conversations outside of the traditional wholesaling. You have done wholesaling and flipping. Break one of those down for us.

WI 783 | Real Estate Networking

Real Estate Networking: Knowing somebody has that type of money in the account, it was important to meet those people first.

 

The deal that I am most proud of, this one came from me. I was driving with the kids and I see this new bandit sign that I had never called before. I gave the guy a call, “My name is Miesha. I’m a realtor in this area. I also wholesale, flip and stuff like that. If you got a deal that you can’t get off for whatever reason, call me and we could work something out.” Four months later, I completely forgot about this phone call. This kid called me out of nowhere. He’s like, “I got something that you should look at.” It was two houses in one parcel.

It scared me because I was hearing all these freaky stories saying, “Those are hard to get appraised out. You may not be able to sell it.” This is in the middle of Allouez. It’s a perfect area. Every seller, landlord or investor wants to be in Allouez. I’m like, “I’m not about to pass this deal up.” We go see the properties. One of them is vacant. I’m talking straight  cosmetics. Next door, the tenant was a hoarder. She wasn’t behind on rent, but her rent was super small. It was a one-bedroom. One was 550 square feet, the other was 600 square feet and both of them are way out of my buy box. I’m usually 900 square feet and up.

I’m like, “This is Allouez. You cannot pass this up.” We meet with the seller and she’s like, “We were thinking about tearing this down. These houses are crappy. They’re not worth anything.” I’m like, “How much would you sell the land to me for? I have already written my numbers. It’s worth $180,000 on its best day.” She looks at me and says, “I need at least $60,000.” She said that it was assessed at $60,000 for the property. I’m like, “You’re saying that you’re going to knock it down. I completely agree with you. They’re not worth too much. How much would you sell it to me on the land?” She said that they would need to be around $30,000.

I ran my numbers and played around in my head. I’m like, “I need to be around $26,000 on this.” She said, “I don’t know if we could do $26,000.” I said, “You got the hoarder tenant next door. This is right in the middle of COVID. The ball is in her park. How about you take the tenant and all the trash and I’ll give you $35,000 all day long? I’ll even pay the closing costs.” She said, “How about I take the tenant, you keep the trash and you can do $30,000?” I said, “I can do that, but at that point, I would need you to pay closing costs.”

At this point, I’m messing around with her. I didn’t think that she’d take it. She said, “I’ll pay the closing costs.” This is interesting because this is a realtor. She does new builds and luxury houses. This is what she does, but these properties were so crappy. It was her husband’s grandma’s junk in her eyes. Who am I to come and tell you that you’re lying? We settled in on $30,000 and I ran the deal. This is brand-new investor starts to step in. I ended up wholesaling that out for $60,000 to another investor. It was gone in a day. It was contingent on getting the tenant out.

The tenant and the seller, I got that part done. I have to deal with the tenant and the seller to hate each other’s guts. I decided to put all three of us into a group chat. All three of us are talking, “Go ask the seller this thing. The seller is saying the tenant is saying this. The tenant is saying the seller is saying this.” It was a whole bunch of back and forth kids’ stuff. I put all of us on an even playing field, in one group chat.

I said, “We’re sitting in Linda’s stuff. Let her know if we found this and that.” She’s like, “You’re not going to put me out of my house.” She’s trying to push me away as the buyer so that the house doesn’t get sold. She figured that was going to solve her problem. I said, “Whether you’re in there or not, I’m still going to close on this house. The difference will be rather or not I’ll see you in eviction.”

“There are no shelters in Green Bay. There are shelters in here, but the waitlist is forever. Do you want you and your grandkids to be homeless or in the car? I’m trying to help you before closing. That’s your best bet. Either I help you now or evict you later. Either you let me help you or I got to evict you.” She said, “You’re such a sweetheart. I completely understand.” I got it to a point where it’s all of us against each other to, “We are going to help Linda get out of this house. You’re going to give her security pay and get her out.”

Don’t think that you have to do everything on your own because you’re going to lose a lot of deals. It’s going to be harder for you to get more traction if you try to do it on your own.

With their agreement for her getting her security deposit back, the seller decides to tell her, “You have to have it in broom-swept condition.” We’re talking about a hoarder’s house. I’m like, “I can get you one of those dump trailers,” which I would have had to get anyway because a part of my buyers’ contingency is, “I need it all cleaned out.”  I’m like, “I have to buy that anyway. It’s no sweat off my back. Linda, how about I send a dump truck over there and you start emptying it?”

My expenses went from $1,500 to $2,000 and all the way down to $400. I’m excited. I’m like, “I’ll give you the truck. Can you use  this thing out?” Linda gets everything emptied out right before closing. I did have to go over there and play sergeant with her and her kids because they started slowing down. It’s like, “I have to come out of my busy day. I’m coming over here and helping you out. We need to get this done. You got two days with me. We’re going to get this emptied down.”

I grabbed my kids, little cousins, and oldest son. We’re all over here emptying it out. We closed that deal on time. I wholesaled that off to my empire . He fixed it up, rehabbed it, and put it on the market for $180,000.  I could have kept that but this was way back in February 2020. I’ve closed a lot of deals since February 2020. While he’s stuck in the house and not getting his profit, I got my profit way back when and I want another deal. At the end of the day, I’m still happy with the wholesale decision.

It’s a $30,000 profit on something that didn’t even cost you marketing. Somebody brought that over to you. It’s connecting the dots and having the ability to structure a deal like that. The know-how is one thing and the tenacity to come in and think outside the box to see what the real problem is. Her problem wasn’t the property or the condition of the house. She was thinking land . Her problem was the tenant and helping them move out. You have another problem to solve. She came in and laid it out. I know a lot of people have had issues with tenants throughout the whole COVID thing. It makes it that much more of a difficult deal to work with. However, you got it done.

Honestly, my advantage is that I have been on both sides of the tracks. I know that, as a tenant, if I’m pissed off with my landlord, I’m going to do everything in my power to screw you over. As an investor, we need to like each other, at least on a business front. I don’t want you to be pissed at me. I’m not going to be pissed at you. I’m also able to speak her language in a way where she says that, “I need $500 for the security deposit.” The seller was like, “Show me proof.” All of a sudden, the tenant is hollering at her. She’s like, “Why is she yelling at me?” I’m like, “It’s because you basically said she was lying. You’re calling her a liar. That’s what she’s thinking.” Cash for Keys is my way to go now.

We do Cash for Keys all the time. Sometimes, they’ll want to leverage that and strong-arm you into a higher amount or do whatever. At the end of the day, it comes down to it. It’s going to happen one way or another. We try to come in and help them throughout that process or the Sheriff’s Office is not going to be that friendly. It comes down to that, sadly, but sometimes it does come down to that and things have to get a little bit more complicated than they need to be. It is what it is. It’s the nature of the beast. That was a free lead. You got $30,000. How did you split that deal? Was that a 50/50 split?

WI 783 | Real Estate Networking

Real Estate Networking: As a tenant, if you’re pissed off with your landlord, you’re going to do everything in your power to screw them over. As an investor, we need to like each other, at least on a business front.

 

It wasn’t a 50/50 because I busted my ass with that deal. He ended up walking away with $11,000. I paid off the workers that helped us, which was the kids. I paid the money for the dump trailer and all that stuff, plus the time I put into it. I ended up walking away with $19,000 and he walked away with $11,000. That was his first deal. He was an eighteen-year-old kid and didn’t know anything about real estate. He gave me a call because a lot of the other guys were paying him no mind and didn’t take him as anything serious.

It’s their loss. I got the buyer base and the will and tenacity to get it done.

I look at every deal as being completely different. For example, when my father passed away and I got a whole bunch of leads coming my way, if I’m shooting you the lead, even if they’re qualified and I’m not doing anything with it, I’m okay with taking 20% to 30%. I still got to come in and you’re working the whole thing. I got deals where I’m 50/50. Every deal and JV I do is not always 50/50, more my way or their way. It depends on what we’re doing in this deal of how we split that up.

You’re doing wonderfully as far as putting everything together and being more systematic in the approach that you take. We talk about it all the time. I do have a couple of questions. This is something that’s often challenged. You have a single mom situation with kids, trying to build a business, doing all these things, kicking tenants out who are not cooperating, making deals work, structuring and all that stuff. How do you put it all together?

How do I run my business and live my life?

How do you find, for example, time to prioritize adequately? What do you prioritize as you go through the day?

Especially with us getting ready to buy a 5-bedroom, 2-bath house, my kids have been there from the assets, properties, and all the way into they’re fixed up . They’re very active in my business. When I say I’m on the phone with the seller, everybody knows to shut up. If I’m on the phone, in general, they know to shut up. If the baby gets to making noise, the older ones snatch her up like, “You’re about to get it. You need to chill out.” I have become a lot more aware of all the time that I have given to my business. My business became where it was everything about my business.

Don’t get into a deal with one strategy. You need to be able to cut it in a few ways.

It didn’t come to fruition until my father passed that kids don’t care about materials. They care about time. With me partnering with them in my business, I’m able to buy my time back by hiring out VAs and doing all this other stuff. That way, I’m able to level it out. Anytime after 4:00 or 5:00, I’m out on my computer. I’m not talking to anybody unless somebody says, “This guy is looking to sell this house. Will you come? I’ll put the kids in the backseat and leave the car off. You’re right. I’m coming.” Other than that, there’s no reason to let those two overflows.

That’s big. I understand how it can be seen as a barrier or a challenge. That can be almost impossible to overcome being a single parent and trying to build a business with kids running around, school and all kinds of stuff. If the intention is there, the method will appear. You’ll find a way to work around your schedule, get things done and get help. You’re good with partnering up with people to help you out in the areas that you don’t want to deal with or bring you new opportunities, which is huge.

Also, when you were talking about negotiating with the seller pushing back, they gave you a number that was fairly low. That was $35,000 on this one deal. Automatically, you always push back. If you always say yes to the initial number they gave you. This is a side note for the audience out there and for the tribe. If you always say yes right out of the gate, sellers tend to get cold feet and start thinking, “I should have gotten more. I don’t want to sell. I’m not going to sell it to this guy. I’m going to talk to the next one and tell the number that I was thinking.”

You always push back. There’s got to be like a conversation. You called it messing around with them. At the end of the day, is that negotiation taking place? That’s a very important thing to do. It’s always pushed back a little bit, even if you like the initial number. You may end up there and back in the same number, but you push back and don’t just take it.

With this one specifically, I had the intuition where, “If I can get this number, I know I can get it off. There’s no way in the world I can’t make a lot of money on this.” That was my number in the $30,000s, but I didn’t know that I was going to be able to wholesale that off for $60,000-something. I didn’t even know what I was going to do with it, but I did know the area and what the ARV was. It was weird because it was two houses. I have to completely rehab two houses inside and out. Those are two completely different expenses.

That’s not for me to think about anyway, but that’s how I kept myself going like, “For one, this is the ARV. This is in a prime area. If we get it at this price, even if we got to throw it on the market, there’s no way in hell that I’m not going to make plenty of money on it.” That’s why I was doing a lot of the negotiation upfront as well so that I could stay right where I needed to be.

Miesha, thank you so much for the time. Give me the top three pieces of advice that you would tell somebody who’s jumping into real estate or real estate wholesaling. They’re fresh, coming new and wondering about stuff. What would you tell that person?

For one, don’t be afraid to reach out to people in your area. We want to talk to you as bad as you want to talk to us. Our marketing only goes so far. Your marketing only goes so far. The first couple of deals where I was partnering, when I sent a seller a text and didn’t know what to say because they asked me something, I will screenshot it and send it to the person I’m going to partner with like, “What am I supposed to say to this?”

Don’t think that you have to do everything on your own because you’re going to lose a lot of deals. It’s going to be harder for you to get more traction if you try to do it on your own. Another big thing is don’t be afraid to talk to sellers. If they’re truly motivated, you’re like their saving grace. They want you to buy it. In my best deals, the sellers sold me the house. They structured the deal themselves.

WI 783 | Real Estate Networking

Real Estate Networking: Don’t be afraid to talk to sellers. If they’re truly motivated, you’re like their saving grace. They want you to buy it.

 

Believe it or not, that happens.

In my wholesale, the seller wouldn’t put a $7,000 lien on his car so that we could buy the house. These people are in position. You do have some that are high on their high horse and they want the highest. Those are not the people that we’re looking for. I go off of Rafael and that self-talk when he’s saying, “This is practice.” I’m looking for somebody very specific. If this person is going to slick mouth me, you’re not the one I’m looking for. I’m going to keep on digging until I find that piece of gold because that seems to work for me too. Three, don’t get into a deal with one strategy. You need to be able to cut it in a few ways, “I need to be able to flip this thing, wholesale it, and do a few things with it, even if you have to bring somebody on.” Those are my top three. Partner with somebody, don’t be afraid to talk to sellers and have multiple exit strategies.

The exit strategy comes down to the deal structure. If you lock it upright on the front end, whatever structure you use there, you can also leverage that on the back end. There are ways of working deals that go beyond the traditional wholesale offer. You’re doing amazing with that stuff. Miesha, if somebody wants to get ahold of you, send you deals, partner up with you, and pick your brain on stuff, where can they reach you?

You can find me on Facebook at Miesha Purnell. You can call or text me at (920) 600-7555. My phone is always ringing. Shoot me a text. If I don’t answer, text me because I’m constantly blocking those spam callers, which is counterintuitive because I cold call too, but I don’t want to be cold-called. Always shoot me a text and let me know where you’re calling from. I’ll get back to you.

Miesha, thank you so much. It has been a blast having you. I’m proud of the progress you’ve made. I’m excited to see what you come up with next. If you are interested in finding more about wholesaling and the overall process of Wholesale Business Blueprint, go to the WholesalingInc.com/WBB. Take a look, have a conversation, set up an appointment, talk to our guys, go through the whole questionnaire and process and see if it works for you. If it works for you and for us, I look forward to working with you. Until then, stay focused. You got this.

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About Rafael Cortez

Rafael is an Organizational Psychologist and real estate professional holding ownership in multiple companies in various verticals. He has profitably invested in wholesale real estate over the last decade, runs an active business doing an average of 15 deals per month and is now passionate about using his investment knowledge, entrepreneurial experience and training as an organizational psychologist to help others learn about real estate investing through the Wholesaling Business Blueprint Coaching program with Wholesaling Inc.

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