Posted on: October 07, 2021
WI 792 | One Phone Call

 

Different marketing strategies like direct mailing, pay per click and SEO surely help boost up sales. It has been used in the market for years and has helped countless real estate investors close deals. But those strategies use up time, money, effort and there is a lot of competition in the market.

Doing daily phone calls is a good approach to growing your real estate business. It is an effective medium to communicate with prospects, leads, and potential clients. But not everyone likes calling, right? The idea of making a pitch and having to deal with countless rejections could be dreadful but that’s part of the game. Now, imagine earning $82,000 from one deal just because you mustered up your strength, picked up the phone and made the call. It may sound almost impossible as it seems but 2 amazing people proved that is doable.

In this episode, Brent Daniels had the chance to talk to the people who were the perfect personification of how their courage brought them wonderful opportunities. Both Malik Vaughn and Elijah Thompson are realtors from Dallas Forth Worth. They just started out in the industry but were successfully closing deals and a few more are lining up for them. Today, their wholesaling business continues to evolve because of their consistent efforts and innovative ideas.

How Two Wholesalers Who Started A Few Month Ago Netted $82,000 From One Phone Call With Malik Vaughn and Elijah Thompson

Episode Transcription

Let’s get started with $82,000 and some change. Getting a check that nets you $82,000 or a wire into your bank account of $82,000 and some change on one phone call. The seed that brought you the opportunity was picking up the phone, building up your courage, being brave, and calling up a distressed property owner and asking them if they would consider an offer on their property. It all starts from that.

Can you imagine sitting there in your house, standing up maybe in your living room, bedroom or kitchen? Maybe you’re working and making some calls out of your car during your lunch break, or when you’re driving, if you’re a truck driver, or if you’re on your commute home, you’re making calls and being proactive because you’ve got this dream. You’ve got this goal of being a successful real estate entrepreneur, owning many properties, and being a very strong, giving, loving real estate investor in your marketplace.

It all starts with that one phone call, that one seed, that one thing that’s planted that starts growing. All of a sudden, you start getting all of these different opportunities and your life or schedule starts opening up, but it starts with having that courage and making that call. To give you a perfect personification, an actual example of that is the two guys that I will be talking to on this episode. They are from Dallas, Fort Worth, DFW, in the house. It is my pleasure. I’m excited to bring to the show, Malik Vaughn and Elijah Thompson. Let’s break this all down and show people how to be successful at wholesaling real estate.

Welcome to the show. I alluded to and gave a little preview of some of the success that you are having, but it’s much more than that. Since you started closing deals, the stats show 11 closed and 6 pending in properties that you have sourced, up to 30 properties that you guys are actively marketing as JV partners, helping people sell their deals to your cash buyer database. You guys are out fast. Malik, I’m going to start with you because you’ve got the longest experience in wholesaling. Tell everybody about your background and how you apprenticed into starting your own company.

WI 792 | One Phone Call

One Phone Call: If you’re not loud about it and people aren’t used to opening it and communicating with you, you’re going to get less on every single deal.

 

I used to work at Academy Sports + Outdoors. I’ve made $16,000 a year. I was making $1,400 a month, $700 biweekly. I was like, “There’s got to be something else out there.” I’m 23. I live with my parents still. I’m like, “There’s got to a way to make some more money. I’m a man. I want to provide for my family that I see in the future. I want to set myself up for success.”

One day, I had an epiphany. I started to read books and watch YouTube. There were different things. There’s Amazon drop shipping, affiliate marketing, and all these different outlets that you can make money on. I came across real estate wholesaling. It was a Jerry Norton video or something like that. I started watching the man and then from there, I binge-watched. I went on a loophole and I fell in love. I was like, “You can make money without money. What do you mean? I don’t have any money. This works. I can do this.”

From there, I signed up for a real estate event, an REI group in Dallas and I went. I was listening to your show. It was Daniel and Will. I heard them. They were in Dallas. “They’re in Dallas. They’re doing what I’m doing.” I’ve only been researching about houses, but they said they only did land. I was like, “Land? Lots? What is that about?”

I never reached out to them. They gave the contact information at the end of your show, but I didn’t reach out to them. I decided to sign up for that event. I decided to go that day and I didn’t feel like going, but I got up that morning. My spirit was like, “You need to go here.” I ran into them. Will was answering all the questions that the lady was asking. I was like, “That guy is intelligent. Let me introduce myself.” I went up to him and I introduced myself. I told him what I was trying to do.

From there, he started to mentor me, William Herron. He invited me to his office. I remember it was like the day before Christmas. I texted, “Can you teach me about this land I was hearing about?” He started to invite me to his office. Almost every day, I would go up there and he was showing me different things that he was doing. It started from there.

Sooner or later, he hired me full-time because I didn’t like this job and thought I was a sharp young man. I started with them. That’s my introduction to wholesaling. I worked for a company. I was a junior acquisition manager. They already had an acquisition manager who was their first hire, Brian. I was under him. Soon, I moved to a dispositions manager. That’s how I learned how to do acquisitions and disposition.

Credibility is everything when building a database of people to send properties you need to sell.

Before we get to Elijah, Malik, you mentioned something there that is interesting. You said you woke up and you did not want to go. Why didn’t you want to go? Were you nervous? Were you scared? Was there apprehension? I’ve been there. I’m curious to see if we’re the same.

I want to lie to you, but I’m not a morning person. I didn’t want to get up. I still go through this. I own a company. Elijah said, “You need to be here at 9:00.” Sometimes I’m a little late, but I’m working on it. I’m getting better. I’m working on our downfalls. I’m not a morning person, but I was like, “I got to get up. I can’t be lazy. Laziness is not an option.” I went and it was the best choice I ever made. It changed my life.

I love that you said that you have that nagging or something pulling you to get there. Those are special mornings when you wake up and it feels different. Something feels different about the day. There’s some excitement in the air. It’s electricity in your brain already. You’re like, “I’m going to get going on this.” That’s cool. Elijah, talk to me. How did you guys meet? How did you find wholesaling?

I’ve been a contractor for a while, from 2019 to 2020. Around September, I’m knocking on doors to get business. I started roofing. I hit up a good friend of mine. I was like, “I needed some entrepreneur spirits or people willing to talk to people to go knock on doors with me to make some more money.” He said, “You need to hit up my friend, Malik.” He gave me his phone number. We got on the phone and we talked for like 45 minutes. He’s cool to talk to. We went and knocked on some doors and I got one lead that day.

After that, we hung out a few more times, not knocking on doors. We were just hanging out. He mentioned something about learning about real estate. I was like, “I hate this company I’m working with. I’m tired of knocking on doors. Tell me about real estate.” I remember it was October 11th. We went and got sushi. We were like, “We can do this.” Hence, we did some more research. We’re watching TTP videos. Ryan Pineda was doing stuff then and Max Maxwell stuff, and we watched it all. We got our LLC and then it’s this.

I want to dig into something that I mentioned before because it’s important and it’s unique. The amount of JV deals that you guys are doing, how do you generate leads to sell other people’s deals? Why don’t they just sell them themselves, Malik?

I wish I knew that too. I was like, “Their buyer’s list is not big.” I’ve been going to these real estate meetups and these people are telling me they get these leads and they love houses, but they’re like, “Land deals? I throw them away. You can do something with this?” I won’t call it ignorance, but they’re misinformed. They don’t know what they can do with it. I’m like, “You’re throwing away money. Please call me. Please send your leads to me. I’ll underwrite and analyze everything. I’ll let you know what you need to lock it up for. I will provide the buyer. We can JV all day. I love to create relationships.”

A big catalyst of what has brought people to us is our marketing pieces. There’s Constant Contact and MailChimp, but we use something called ActiveCampaign. I want to provide as much value. I thought I was going to keep it a secret, but no, I love you guys. We use this software called ActiveCampaign. We have these beautiful flyers and this all neat and organized. Everything’s transparent. People have hit us up. For example, this multifamily guy called us and said, “I love all of your packets. I have a big portfolio. Can you sell everything for me?” I was like, “I’m going to give it to you on these deals and you go market it.” We have one pending right now, a multifamily unit. We’re not direct to seller on any multifamily units. It’s just our branding.

You do like flyers explaining that you have buyers or that you can help people sell their deals. What’s on the flyers?

It’s our packets of things we have under contract and they see how beautiful it looks. Our pieces are marketing to our buyers. They’re like, “That’s nice.” I feel like our packets are better than most people out there. People throw stuff on there and it’s not needed.

Do you mean it’s not just a text message with an address?

WI 792 | One Phone Call

One Phone Call: Filter through the pretenders and the amateurs. You must work with the real pros who will bring you solid deals and be committed to working with you.

 

We provide as much information as we can. We make it look as neat as possible.

We got going with that because we were taking turns at every real estate meetup or any event we could find. We’d take turns, go in or go together. Every other week pretty much, we were at an event and we were talking to people. I’m always saying, “We dispose things better than anybody else. If you have any land or anything in general, hit us up.”

How do people see that marketing piece? Are you bringing printout versions of, “Here are all the deals that we have available? If you want to buy this, let me know?” When you go to these meetups, what’s the approach to building a database of people that send you their properties that you need to get sold? How do you build that up?

Credibility is everything. Whatever you use, you can use MailChimp or Constant Contact. We use ActiveCampaign. All of our packets are on the website. I bring some form of technology and I show them what we can do and what our packets look like. They’re like, “Those are nice.” They don’t care too much about the packets. They don’t know how to move land deals. That’s why they give it to us. They’re willing to take a chance on us. I got a text and I posted it. He’s like, “You prove that you’re the real deal. You moved my deal. I’m going to come to you and it’s going to be a repeat business because I know you’re going to get the job done.” I was like, “That’s crazy.”

That’s how you build those big relationships. That’s how you get 3, 5, 10 deals a year from one person.

I’m like, “We don’t have to be direct to seller to make money in this business. It’s crazy.”

JV partnership is like a marriage. You must learn how to work and argue at all times.

As your wholesaling business evolves, you want to make sure that you are getting referrals. I talked to my disposition manager and we did a $50,000 deal that was of JV. It’s one of those things that as you start building up your business, you realize that it is very powerful to have an incredibly robust and hungry cash buyer database. With that, you have to feed them. If you want to keep this list or anything bigger, you got to be feeding it constantly.

They got to be thinking about you and opening up your emails, answering your calls, seeing your texts, all those things are important because you might have the best deal in the world. If you’re not being loud about it and people aren’t used to opening it and communicating with you, you’re going to get less on every single deal.

It’s critical to start building up your cash buyer database and feed them as often as possible. That’s a huge lesson for everybody on here, especially as they’re getting to the point where they’re doing a few deals. They’re building it up. They’re thinking, “Should I focus on building my cash buyer database more or going after the property owners?” The answer is both.

Learn from these guys that I’m here with on this show. They are doing it. They’re making more with the deals that they source themselves, but they’re doing more transactions. You’re sending so many deals to your cash buyers. When you do source those big ones, you will make way more per deal because they’re ready to buy. How do you guys work together? Who does what?

I do almost 100% of the dispositions. He does 100% of the title, but we took turns on the acquisition when we first started. It was like, “You’re going to take this shift. I don’t care if it’s 9:00 AM to 12:00 PM and then I’ll take 4:00 PM to 7:00 PM.” I told him I’m not a morning person. If I do 4:00 to 7:00, we’re going to get some deals.

We have to learn about each other and how he loves enneagram. We know what makes him tick, turns him off and what makes me tick and turns me off. We had to learn. It’s like a marriage. We argue and we’re together all the time. We have to learn how to work together. Now, we have acquisitions and dispositions in-house, but I was doing more dispositions from the beginning. He was doing more title. We took turns on acquisitions to answer your question.

With that, now we’ve got a team of four guys in the office making calls. We have a few acquisitions and dispositions.

Four VAs in the Philippines.

We’re working on hiring a transaction coordinator because once you get all your stress out in there, it stresses you out.

You told me before you had 33 on the board to sell.

Some of these people will sell their deal and then we’ll call them back and say, “We sold the deal,” then they’re like, “We already sold it,” or they don’t pick up. I’m thinking I want to start doing options because I’m like, “I’m all about using my time more efficiently.”

As you’re building this thing up, you’re going to filter through the pretenders and the amateurs. You’re going to work with the real pros that are going to communicate with you. They’re going to bring you solid deals and going to be committed to working with you. That’s part of the process. You’re going to run through that either way. Make sure that it’s open and inviting so that people can bring you deals and not put too many obstacles up because it will bite you on the backend.

I would rather you get as many as possible in and filter through the good ones and know who the bad actors are or at least the pretenders. That’s fantastic. You guys are already building that up on a daily basis. What about social media? Are you guys getting loud and telling people? What does that look like?

I watched your video and you said, “Get loud. You need to be out there. You don’t need to care what people think.” I used to be like that. I’m like, “I don’t want to post too much. There are people in my business and stuff like that.” We made a TikTok. We have a calendar. I said, “We’re going to make our first TikTok. We’re going to make one and we’re going to shoot a video.”

We made it. We got like 600 views in a week or something. It was pretty good. Your show made me post for the first time. I’ve never posted on social media before. I’m mostly on my Instagram, one picture.

WI 792 | One Phone Call

One Phone Call: The louder you go and the more pride you have in what you’re doing, the more people are going to rally around you.

 

You take that pride in the service and value you are providing to the community and your market. Be loud about what you’re doing and what you’re trying to do. The people that know you and like you are going to rally around that. It’s a big magnet for getting great talent for your company but also getting referrals.

The louder you guys go out there and the more pride you have in what you’re doing and the more you’re showing that you are providing that service, the more people will rally around you. That’s why I encourage everybody. Don’t be a secret. Don’t be shy. You’ve got enough. You’ve got so much incredible value that you can put out there. Just be loud. Try it out and build it up. You did one TikTok, now do two a day.

I’m always posting on Facebook. What helps with that is people see that we can sell deals because I’m always posting, “If you have JV deals or deals that you need to move, please send them to me,” and they do, so that helps. Someone sent us their resume. He was like, “I love what you guys are doing,” because we post the company culture every day and they sent their resume. “I’d love to work with you guys.” Stuff like that is like, “We built this.”

We got our first deal from Facebook. Someone says, “I have this land. I don’t know what to do with it.”

The fact that this phone with a microphone and a camera on it can get you exposure to your entire marketplace and beyond is incredible. It’s something that we have to take seriously and put in our schedule to get loud about. Let’s get back to breaking down. Let’s get into the nitty-gritty. Let’s talk about a big massive deal that you guys closed from Elijah. You had originally called. Is this right?

I remember the day. She is the sweetest woman ever. I liked this woman. I called her, but I had no idea what the land was worth. I was like, “I want to buy your property.” Same old thing. We’ve been using your script since the beginning. I called her the next day. I’m trying to comp it using PropStream. I got it under contract for $20,000 and I can sell for $40,000. That was amazing. I was like, “We’re going to make $20,000.”

We were excited.

We hit up our friends who lives around the corner. He’s like, “You can sell this for $120,000, no big deal.” I was like, “There’s no way.” It’s a piece of land. It’s 2 acres, covered in trees, a little pond in the middle. It doesn’t look like it’s worth anything. We were working on that deal and title for around two months. I’m letting the seller and the buyer know everything. We had a buyer within 48 hours.

To take over, I’ll do dispositions. I reached out to my friend because I wanted to make sure I was going to bust it for $40,000 because I know what I’m doing. I’ve done it for a while. I hit $40,000, $20,00 we’re in there. He told me like, “You can get a lot more out of this because you can subdivide it.” We didn’t see that value there because we didn’t have our eyes trained for that yet. He trained our eyes to see that value. Now, we know how to look for that, but we shot it out for $120,000. We got an offer at $116,000, locked it up for $20,000. I almost peed on myself.

The biggest goal is wholesaling is to keep creating relationships. Talk to people every day, not just sellers but also buyers and wholesalers.

Your brain chemistry changes. You start thinking bigger. Let me ask you this. Let’s go back to the property owner. You call about a piece of land, Elijah. Why did they want to sell it? What was going on with it?

She’s like, “I owe $15,000 of taxes on it and I bought this in 2013.” The person she bought it from took out a loan on the property and they did a quick deed. She didn’t even know that until much later. She owes $15,000. She’s like, “I want $25,000.” I was like, “I’ll give you 20,000. That’s all it’s worth. It’s worth $18,000, but I’ll give you $20,000.”

She said, “That’s fine. I’m not expecting to make a lot of money. It’s going to tax auction in a few weeks. I want to get this taken care of and make a little bit of money back.” With that, we sent out the two-page agreement. I sent it to my title company and they said, “No, we owe around $25,000 in taxes.” After that, we renegotiated the contract for $27,000. We’re at $27,000 so that she can have a little bit left in her pocket. We had a buyer at $116,000.

It sounds simple, but the title work was crazy. There’s a lot of hurdles.

That’s what I wanted to ask about because you mentioned a loan was on the property.

Yes, the previous owner took out a loan and used the property as collateral. There was still around $25,000 owed on the property.

It is wild because it has to be some private loan or something that’s tied. Conventional banks don’t loan on land unless you’re developing it and that’s a whole different thing. For everybody out there going after land, land is owned, free and clear, for the most part, now that property taxes play a little bit differently, but there are not a lot of loans or mortgages on vacant land. It’s something you don’t have to worry about. I wanted to ask you guys when you guys are pulling your lists of land, is there something specific? How do you pull your lists?

I’m the integrator and I’m the data guy in the company. ListSource, PropStream, vacant land, agriculture, residential, commercial, multifamily, off-market, not on the MLS. We want some years of ownership, maybe five years-plus and some equity on there.

You’re pulling all of those. You’re scraping through. Are you looking for the length of ownership, Malik? Are you looking at these people who own it?

I’m looking for five years-plus.

Are you putting anything in for property value or what they bought it for or anything like that or are you just looking at an area?

My thing was, I wanted everything I could get. I wanted to pull everything. I did not use the five-year ownership on this lead that I pulled. I didn’t put any ownership. It was a blank slate. I wanted everything.

We used PropStream leads and we put vacant land.

She owned it for two years. If I would’ve put five years, we would’ve missed it.

WI 792 | One Phone Call

One Phone Call: Wholesaling essentially is the foundation of your real estate investing business. Once you figure that out, all the doors open to you.

 

Sometimes it pays to not filter as much, especially if you’re making a lot of calls or you have people that are making calls for you. You got to open up those lists and you can find some great opportunities. Do you approve that you closed the deal? Push it all the way up. What was the net?

$82,000.

Congratulations on breaking your brain and building up that new brain chemistry. The sky’s the limit. You know as well as I do, when you get $82,000 from a deal, the next thought is, “We got to do six figures. We got to do $250,000, $500,000 or $1 million deal.” This is how you grow and repot yourself. When we start out, we’re in these little pots and you can only grow big, and then you pull yourself out. Put yourself in a much bigger pot and you keep growing.

I’m excited for you, guys. By yourselves, in it since November 2020 and making a huge impact. What’s the goal? Are you guys the, “I want to own 1,000 doors. I want to develop commercial properties. I want to do land. I want to be the bank?” Where does it go from here? Wholesaling essentially is the foundation of your real estate investing business. Once you get that figured out, all the doors open to you guys. In your secret sushi meetings, what are you guys talking about? What’s the big dream?

With how far we’ve gone right now having an office and everything, we put a ten-year goal of making off this wholesale branch of our company. We’re expecting a net of $17.8 million a year. Those are the numbers that we worked up. After reading traction and putting together 5, 10-year goals and everything, talking about it, having team meetings, that’s our goal. We have each step broken down with how many people we hire, how many VAs for each one, what kind of lists they’re pulling, and everything like that broken down. That’s the wholesale side. We don’t want to be doing more builds. I’m looking into my first build now. We might be doing commercial.

That’s my goal. We’re doing a lot of land. Why not build on it? I want to keep some of the land. Also, we’re looking into Airbnb. We want to get into Airbnb as well. The biggest goal is to keep creating relationships. We talk to people every day. It’s not just sellers. Talk to people can mean buyers, wholesalers, or anybody. I’ve taught people from the ground up how to wholesale and they don’t have a buyers list, so they bring everything to me. You’re giving and you get it back. I read The Go-Giver and that’s how that works.

We have an amazing acquisition guy named Devin. I met him at church and he’s been in office and he’s quitting his job to work full-time for us. He’s been amazing on the phones. He has some good deals he is going to close.

Our disposition guy lived in Ohio. We hired him off Indeed and he drove fifteen hours to live here. He lives here now. He believed in us that much to drive fifteen hours to live here and to grow with us. It’s very humbling. It’s amazing to see what’s happening.

You guys are going up. You guys are on a rocket ship. Keep it going. Keep that momentum. How do people get ahold of you? How do people reach out if they want to squat up with you locally or tell you congratulations and share some love? How do people reach out?

For me, Facebook, Malik Vaughn, Instagram @Malik_Terrell. I’ll give out my number too, (214)-482-0444. I’m willing to help anybody. I’m all about giving.

Make sure that you reach out to Malik. Elijah, how do people reach out to you?

My Instagram, @Elijah.RenovateHoldings. I just made this so I can start telling people.

Also, email Malik.Renovate@Gmail.com

RenovateHoldings@Gmail.com. We see it and everyone sees it.

Bring us your land deals. We can move those. Bring us multifamily or anything that we can do to provide value.

Anywhere in America. For some of our JVs, we have three deals together. We package our deals together. We’re like, “I have these three houses. They’re going to be good flips and they’re all in the same area.” People love that. Put them all on the same packets and package deals with the numbers laid out. We can sell anything in America.

WI 792 | One Phone Call

One Phone Call: The Go-Giver: A Little Story About a Powerful Business Idea

 

They can sell anything in America and everybody has Malik’s phone number.

After midnight, don’t call me. I stay up late. That’s why I’m not a morning person because I stay up too late.

Thank you for coming on here, sharing your story, giving people a real example of what it takes to go out there. Be proactive and find those opportunities, being a go-giver, being out there, helping people move their properties. What’s not said here is yes, they’re selling these properties, but the people bringing them are getting paid as well. It’s a wonderful relationship and it’s a win-win.

If you guys have some properties that you’re having trouble with, make sure that you reach out to Malik and Elijah. Apparently, anywhere in the world. If you’re interested in joining the most proactive group in real estate investing, it is the TTP Coaching Program. Go to WholesalingInc.com/TTP, scroll down, check out what the program is about. Check out all the incredible people who have been through it who have had incredible success.

You’re going to have to scroll for a while and I’m very proud to say that because the testimonials are bananas. If it feels good in your gut, sign up for a call. I look forward to working with you personally. That’s it. Thank you, Malik and Elijah, for being on here. For everybody out there reading, I encourage you as always to go out and talk to people. Until next time.

Important Links:

About Brent Daniels

Brent 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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