Mike McLeish has been in the tribe for about six months and he’s recently closed some great deals. We’re going to look at the lessons and mistakes that helped Mike find success so that you can get going and start closing Wholesaling deals soon.
Closing the First Deal: Mindset Shifts
Mike had to make a few major mental shifts before he could close his first big deal.
- You have to be a deal finder, not a deal creator. You’re never going to convince someone to sell their home at a discount – you have to find the people who are willing to do that.
- Always have the seller convincing you, as opposed to you convincing the seller. If you chase the dog, it will run away.
- The seller should always make the offer, and you should reject the first offer.
- When you’re not afraid to lose a deal is when you get a deal.
- For the most part, it doesn’t matter where you live: you can make Wholesaling work if you follow the right process.
- ListSource – Our tribe members get the lowest rate possible
- Rhinoceros Success: The Secret to Charging Full Speed Toward Every Opportunity by Scott Alexander
- Profit First: A Simple System to Transform Any Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
- The Four Spiritual Laws of Prosperity: A Simple Guide to Unlimited Abundance by Edwene Gaines
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Welcome everybody to another awesome, amazing, outstanding, stupendous episode of Wholesaling Inc. My name is Tom Krol and I am America’s number one wholesaling coach and today I am excited to be speaking with Mike, now I want to make sure I’m pronouncing it Mike. It’s McLeish.
Mike Mcleish: That’s correct.
Tom Krol: McLeish. All right, terrific. Mike has been a student here in the tribe, but he’s been a rhino for a while and he’s had some success recently. We want to deep dive it. We want to pull his brain apart, figure out what works, what did it so that you can save time, make money, implement these strategies, and go out and get a deal today. In case, you don’t know what it is, wholesaling is the art of consistently finding discounted properties in your community or in another community. And, that’s what we do here at wholesaling inc. So, I’m super excited to be here with you guys today and we, you guys know me. I am going to, it’s no fluff, no BS. We are going to deep dive right into this stuff. We’re going to put Mike in the hot seat. We’re going to make sure that we pick his brain and get valuable information. No fluff, no BS. So, Mike, I hope you’re ready for the hot seat.
Mike Mcleish: I am. It’s an honor to be here, and on the podcast today. It’s exciting.
Tom Krol: It’s an honor to be on this journey with you. Brother. I am so happy to be able to serve you in this way. So, it’s a blessing. So, very, very cool. We’re going to get started right away. Before we get into your deals, if you can just give us a 32nd who you are, where you’re at and what you’ve been up to a little bit about yourself, that would be awesome.
Mike Mcleish: Excellent. Yeah, I started doing a little bit of wholesaling. I’ve always been kind of cautious in my approach with the different levels of increments of a commitment. At some point we decided that we’re going to go full time. I left my job, sold the house that we had some equity in left Denver. We moved to Greenville, South Carolina, last October, we’ve been full time into this business ever since. So, I came from an engineering background. So, analytics are both a blessing and a curse in my own mind. And, as Tom well knows.
Tom Krol: As a matter of fact, I remember one time we had a one-on-one call and I, now Mike, correct me if I’m wrong here, because I have a lot of student calls so sometimes I could be off here, but I do remember I was standing outside of my house, there’s a Magnolia tree there and I remember, I think it was one of our first one on one calls and you were talking and I was like, man, this guy reminds me of Joe McCall. I don’t know if I told you that or not, but I was like he’s an engineer.
Mike Mcleish: I think you did.
Tom Krol: Yeah, I did. I remember, I knew it. I love it. So, yeah, so he’s, it’s so funny. I have the worst memory, but I always remember exactly where I was and where I was standing when I’m on the phone with every student. But, it was awesome. And, we had, I remember thinking like, yeah, he reminds me of Joe. And, by the way, I love Joe McCall. He’s one of my best friends in the world, but he is very analytical. And, I remember, man, I’m like, man, this guy, he’s got to get it. He’s got to get, I don’t remember the context of the call. But, I remember thinking like, “oh, I’m going to make them do it.” So, that’s good to hear that you’re an engineer. That, makes sense. So, very, very cool. How long have you actually been in the tribe?
Mike Mcleish: I joined the very end of January of this year.
Tom Krol: Oh, January.
Mike Mcleish: Of 2017.
Tom Krol: Okay. Now it’s, I know, I always get yelled at for dating the podcast. Everyone’s like, “don’t say Merry Christmas. Don’t say good morning.” Never date and timestamp the podcast. And, we could use it anywhere. I’m like, “all right, well whenever,” so anyway, it’s July. So, it’s January, March, April, May, June, July. Okay, good. So, about six months or almost, yeah, we’ll five months. Right. So, all right, terrific. I want to deep dive your deals so that people who are listening can do deals right now.
Because, that’s what this podcast is all about. We want to keep it short to the point. No fluff, no BS, and a rinse and repeat deals. So, other people can go out there and start doing deals. I know you have a few deals, but what is you, pick, it’s your decision, it’s your show. Tell me what you think it’s, what deal would you like to discuss today? What, are we going to be talking about?
Mike Mcleish: Well, we can just kind of go through them in order. And, I think the one that has the most real value to everybody else’s is probably the first one because that was where I had to really make a few mental shifts to get it done. And, I think I had posted on the Facebook page a while back and we can definitely dig into that one. I think there’s a lot of good nuggets in there.
Tom Krol: Okay. Yeah, let’s do it. Yeah, I do remember kind of walking you through a few deals. I know Mike is famous for always being on every support call, which I love. I have no problem with that. But, I always, I say, oh, there’s In South Carolina. I know that it’s either Mike or Matt. It’s good stuff. So, all right, so what was, you know, so that’s a good idea actually. Let’s talk about that. What is the street address? What are not the house number, but what street house are we going to be talking about today?
Mike Mcleish: This one’s on Loop street.
Tom Krol: Loop Street. Okay. So, and, you’re in Greenville, South Carolina. So, the first question is, and I want to get through, so as we’re going through, when you had your hurdles. Because, on this podcast, what we’re always doing is we’re always talking to people who are successful, who have had wins, but what I really want to focus on is, I know you really struggled on some of these deals to get through to your first few. I want to talk about that. So, as we’re going through this process, if this is a point where you’re like, “hey, right in this stage, this is where I really had, I would have did things differently, or this is where I overcame a huge hurdle” Make sure you stop me and we’ll kind of deep dive that a little bit. Cool?
Mike Mcleish: Absolutely. Okay.
Tom Krol: So, first of all, how did you find this seller who wanted to sell at a discount?
Mike Mcleish: Right. So I got a call from this seller on May 3rd and this was from the high equity absentee list.
Tom Krol: Okay. Got it.
Mike Mcleish: And, I had actually, I looked it up here this morning. I mailed them the first week in March.
Tom Krol: So, let me just say this, that list comes from a company called ListSource. One of the major, major, major benefits of being a tribe member of being in this coaching program is that we have negotiated the lowest rate in the entire country for ListSource. Our tribe members, as you know, Mike only pay 3 cents a name. So, that is a massive, massive savings. It is unheard of. It’s the lowest discount in the entire country. The reason it’s so low is because we do not take an affiliate commission for getting, for recommending their product.
So, they gave us the lowest rate out there, which is awesome. All of the benefit goes to our tribe members and just to, not to pitch our coaching, but if you are interested in learning about wholesaling and you come into Wholesaling Inc you get a massive, massive discount, on your lists, find your list, which is awesome. So, so it’s ListSource is you got the high equity absentee owner list. That’s awesome. Okay, so you sent the postcard and you sent our standard postcard or did you send something?
Mike Mcleish: Yes.
Tom Krol: Okay.
Mike Mcleish: Yeah.
Tom Krol: Okay, so you get the phone call May 3rd. And, what did that phone call sound like? Now do the phone calls go to voicemail or do you blind answer, or what does that look like?
Mike Mcleish: Yeah, at this point everything goes to voicemail. Just the kind of standard process that is taught in the tribe right now is, it goes to voicemail. I try to get back to everybody within as soon as possible, within minutes if possible. And, on this particular one, I think it was pretty quick and I don’t, I think they even answered right away. I left him a message, but we did connect within the first day at some point. Yeah. Okay. Something I want to bring up though that I think is important on this particular one, I’m looking at it right here. My, schedule was, this was mailed the first week in March.
That was my first mailing in joining the tribe. And, as you know, I struggled for that first three months. Once the mail was starting to go out, or two months and I was like, I can’t get a deal to stick. So, they sat on that postcard for, I don’t know how, what is that? Two months before they finally picked up the phone and called. So, don’t be discouraged if your first mailing doesn’t get you that deal right away. They’re going to hold onto that postcard and then when the time is right, they’re just going to look at it and say, “okay, it’s time. Let’s make a call and see what this guy’s all about.”
Tom Krol: Absolutely. One thing that Todd always tells me is that the hottest deals, and I find this to be very true in my own business, is that the hottest deals always come in, at the tail end of a marketing campaign. Because those are the people who’ve been holding onto your postcard, and now they’re really ready to sell right away. They’ve kind of been thinking about it, so good. Good. Okay. Now why was the seller selling the property? What was their motivation?
Mike Mcleish: So, they live out of state. I believe in New York, this was a rental, an investment property gone bad, and it had been sitting vacant for I think on the order of two years. And, they just came to the conclusion we’re tired of paying taxes on it. We, want to get this thing out of our lives and free up our minds a little bit there. So, they picked up the phone and just said, “hey, somebody wants to buy her house, let’s get rid of this thing.”
Tom Krol: So, motivated landlords. The house has been sitting vacant for two years. I love it. So, we don’t have to deep dive that guys, but just so all the listeners know it basically, why would anybody ever sell their home for 40, 50, 60 cents on the dollar? There are reasons those deals are out there. You’re surrounded by them. Everybody is, we do deals every day in this tribe. So, this is very important to know that a motivated landlords, or unhappy landlords are one of those sources of motivated sellers. People who are out of state, and they’re out of time, and they’re out of patience and they just want you to take that property and they just, remember guys, all sellers only have, they can only have two of the three pieces of criteria when they sell their house. They can have the price, the convenience or the speed.
That’s it. And, the sellers that we’re always looking for are willing to sacrifice price for convenience and speed. That’s who we’re looking for. Those people are out there. So, awesome, awesome job. And, always remember the definition of motivation is I have to sell by X or Y is going to happen. And, in this case it sounds like they were running out of patience. Unless there were some other impending events there.
Mike Mcleish: Yes.
Tom Krol: But, okay. So, yeah, so go ahead. I just wanted to make sure everybody, some of our listeners are brand new listeners as it might be their first show that they’re listening to. So, we appreciate that, but we just want to make sure that they’re able to keep up and understand the jargon that we’re using. So, go ahead. I’m sorry.
Mike Mcleish: Excellent. No problem. Yeah, well, I’m looking for the motivated seller. But, what was happening in this time and me being impatient with my own process, is I was becoming a motivated buyer. And, there’s so many analogies you can put to that. But, I think one is, I started, chasing the dog and the dog started running away from me. And, not to call the seller a dog, but that analogy is very fitting. I started chasing the deal and the deals started running away.
Tom Krol: I remember coaching you through this.
Mike Mcleish: And, we talked about, this yeah. And, in this particular case, they, I was like, how can I bring value? How can I make this as easy as possible? And, I offered them, I said, “look, this is right down the street from my house. I can drive in there, I can set up a locksmith, I’ll go in there, I’ll take some pictures for you, and then we can figure out what to do.” And, this is completely opposite of everything that I’ve been told to do, but my hunger and my motivation for getting a deal was getting in the way of doing it, right.
And, we had that coaching call and you said, “no, you blew it. That deal’s gone. Just move on.” And, I said, “no, I’m getting this one back.” And, so from there I called them and I said, “look, I’d love to help you out, but before I take up any more of my time and yours, we need to make sure that we’re in the right ballpark. And, frankly we need to get this thing on paper, and make sure it makes sense for everybody involved.” That’s when they said, “okay, let’s get serious.”
Tom Krol: Okay. I want to really just pause here for a minute because Mike just brought up some really good points. Here are the takeaways from what Mike just said. Number one is there is the clarity in setting expectations. We always say this in the tribe. You want to be a truth teller and a truth seeker. Sometimes people think they have a deal and there is actually no deal. So, until you realize that, the question is when you pretend with yourself that people will say this, I have like how many deals do you have in your pipeline? And, say, well, I have three deals that have potential. The problem is those three deals will be killing you because you think that their deals, and they’re really not. So, what you have to do is you’ve got to hold the sellers feet to the fire and find out do you really have a deal or are you just wasting everybody’s time?
So, that’s number one. Number two is Mike brought up this dog analogy, something times what we do in the tribe is we, say with the sellers, you always want to have the seller convincing you that you should give them your money. You shouldn’t be trying to give in to the seller that they should be giving you their house. So, one thing we do is we use an analogy. We say, if you want to catch the dog, you, if you chase the dog, the dog will run away from you. And, sometimes what Mike was referring to is being desperate to get a deal. You start chasing the sellers, and when you do that, they smell it and they don’t want anything to do with you. You have to have them chasing you. So, if you run away, which is exactly what Mike did in this situation, is he stopped the process and he started backing away from the deal.
Then it sounds like the seller started chasing him. This is crucial. This is one of the most important things you have to remember as a wholesaler. We’re looking for discounted properties. You will never convince anybody to sell their home at a discount. You have to be a deal finder, not try to be a deal creator. There’s no such thing as a deal creator. You’re not going to convince anybody to sell their home at a discount. You have to find the people who are willing to do that, but sometimes you get in your own way if you’re chasing deals because then you turn everybody off and nobody wants to sell you their home. So, that Mike has got, he just very quickly went through a few different things that I just wanted to pause and make sure everybody understands is number one, be a deal finder, not a deal creator. Number two is always have the seller convincing you rather than you convincing the seller. And, I think those are the two biggest takeaways. So, go ahead Mike. I’m sorry.
Mike Mcleish: Yeah, yeah. And, we’re going to see that once again in even a better way here shortly. So, yeah, this one, this one gets, there’s so many ups and downs in this one, but it’s so much learned on it. So, we got back together and I said, look, “what do you really want to do?” And, they said, well, we definitely want to sell it. We went through the process where you could, you could fix it up, you could rent it again. No, I don’t want to do that. We’ve been down that road. We’re in New York. I don’t want to drive all the way down here and try to find contractors. Okay, great. And, ultimately this same scenario, why don’t you list it? Same thing. We don’t want to do that. So, definitely we want to sell it.
Tom Krol: Okay, so hold on. Mike, I got to just interrupt again because I want everybody to understand the power of what you just did. One thing that I learned from my brother Todd Toe back right away was that; you want to eliminate every other option except for the seller doing business with you. You have to do that by making it their idea. This is how we back out of the deal. So, what Mike just said is he said to the seller, “hey, Mr. Seller, this is a really nice property. Why don’t you just put it on MLS listed with an agent? Sure, you might have to fix it up a little bit. Sure. It might take a few more months than you want, but why don’t you just sell it through an agent?” And, the seller had to tell Mike, “no, I don’t want to do that. I want to sell to you.” Then Mike said, “well, Mr. seller, this is a nice home in a nice neighborhood. Why don’t you rent this home out, become a landlord and get new tenants.”
And they said, “no, we’ve already done that. We don’t want to deal with tenants anymore. We want to sell the property to you, Mike.” Great. So, this is what Mike is talking about. This is one of the most important things we teach in the tribe is you always want to be backing out of the deal. Have the seller convince you and make it their idea. Let them this. These are the hard questions. These are the awkward questions where you have awkward silence on the phone, but these are the questions that get results. These are the guys and girls who come into the tribe who are making 20, 40, 60, $80,000 a month every month. How are they doing it? They’re asking the right questions. They’re making them, they’re not afraid to ask the difficult questions, the hard questions, the ones that might quote on quote kill a deal, that’s not even a deal. So, anyway, Mike, I’m glad that you did that. So, good man. All right. I love it. Great, job. So, okay, so, they answer those in the affirmative and they picked you.
Mike Mcleish: Yeah.
Tom Krol: So, go ahead.
Mike Mcleish: Yeah. So, we said, “let’s get some numbers together, finally.” So, they started off and I got them to name a price a first. They wanted 45,000 this was in a, probably one of the nicer, it’s a brick house in a, it was one of the nicer size houses and style of houses in one of the harder neighborhoods. I guess it’s definitely a low end rental type neighborhood. So, 45 wasn’t completely unreasonable if it didn’t need any work for my market. As, far as a rental in that area.
Tom Krol: Did you have an idea of what you wanted to pay for the property?
Mike Mcleish: Yes, I knew I wanted to be probably closer to 30 if not, under that.
Tom Krol: Okay.
Mike Mcleish: But, we went back and forth and they said, “well, we really don’t know the condition, but we did a lot of fix ups on it. And, we just, we kicked the tenants out a while back and I don’t think the repairs are too bad.” So, we ended up, I had it under contract for 33,000 initially. So, at that point
Tom Krol: Did they say 33, when you asked them, they said, because I want to know how that negotiation went [inaudible 00:18:36].
Mike Mcleish: Yeah, I’m trying to remember. I know initially they wanted 45. That was the first number that was mentioned by them.
Tom Krol: And, what did you say, to the people?
Mike Mcleish: And I said, “I can’t do 45, just I can tell you right now, no way.”
Tom Krol: I love it. So, here’s the deal, guys. Always reject the first offer. Okay. I just want that to stick with everybody. Always reject the first offer. So, no matter what the seller says, immediately you should have, you should feel like somebody just punched you in the gut. Number one, the seller should always make the offer. And, number two, always reject it. No matter what it is, no matter what that number is always say, no, I can’t do that. And, just end it. And, then as soon as you say, “no, I can’t do that.” Don’t say anything. Let them speak next. Okay, go ahead Mike. I’m sorry. I just wanted to make sure that no matter how that negotiation went, it sounded like you did it the right way, but I want to make sure that’s the thing that everybody picks up on.
Mike Mcleish: Perfect. Yeah, yeah, exactly. So, that’s exactly what I had mentioned and finally I think they, got me to say a number as like, I went pretty low. I was like, I need to be probably in that 20, 25 ballpark for this to work. And, we went back and forth and finally I agreed on 33, so that was where we went under contract. So, at that point, we were able to get a key and get inside and I went in there and it was definitely in worse condition than I think we all expected it for various reasons. So, I already knew I was going to probably have to renegotiate it, but I wanted to make sure I had a solid deal. And, so this is where some of my own insecurities came in. But, at the same time I just wanted to get my first deal done.
I didn’t want to do it perfectly. I didn’t want to learn a new process and I’d already been speaking with, one of my buyers about deals like this cause I knew he liked, kind of the tougher neighborhoods, houses in really bad condition. And, so I brought him in. I said, “look, go take a look at it and just tell me where you would need to be to buy this thing.” Because I already know I probably might have to renegotiate it anyway. And, he did that for me. So, he came back and said, “look, I’ll buy this thing for 22, if you can get it anywhere below that, that’s for you.” So, I said, “good, let me see what I can do.”
Tom Krol: Okay.
Mike Mcleish: And, at that point I knew I didn’t have a deal at 33, and I called the seller. I said, “look, I need to cancel this contract that the house is in way worse condition. Than we both realized and there’s just nothing I can do with it at this.”
Tom Krol: Okay. So, essentially, so just to kind of just summarize what happened. So, you went in, you took a look at the property, you realized that the price was way too high, and you needed to get it for a lower number. So, I want everyone to hear what happened was that the point here is that when Mike went to negotiate the contract, he didn’t call up and say, “hello, Mr. Seller. I’m not really happy and we have to talk about the price.” The reason he didn’t do that is because then the seller will automatically put on their negotiating hat, which is not a good place to be because sellers don’t like to negotiate. Nobody likes to negotiate, except for hardcore entrepreneurs. And, it’s uncomfortable. But, what he did do is in order to get the reduction that he wanted is he canceled the contract.
Hi “Mr. Seller, this is Mike. I took a look at the property. It’s in much worse condition than you had portrayed. I’m canceling the contract. Where should I send the cancellation agreement to your property or to your mailing address in New York or to the property address, in Greenville.” And, when he did that, the seller never put on their negotiating hat. That’s the key. I want everybody to hear this. The seller didn’t put on a negotiation hat. So, when you said that, Mike, what happened, what did the seller do?
Mike Mcleish: Yeah, this is one of the things I really wanted to get into the podcast. So, I called it exactly what you said. Where should I send the cancellation notice? And, they said, “oh, you don’t want to buy it.” And, I was like, “no, I can’t. I can’t. It’s just, it’s a wreck. I can’t do that.”
Tom Krol: Liquid gold guys. Everybody who, if you’re in a car right now, you should pull over it. This is liquid gold. This is how you negotiate. You grab a, well, let’s not say that you grab the steering wheel, you pull over and you grab your gut and you say, I am just going to do this and cancel the contract. I know it feels better and warm and cozy to negotiate and say, “oh, I just want to negotiate. I don’t want to lose the deal.” It’s when you’re not afraid to lose a deal, that’s when you get a deal. So, you go ahead, you cancel the contract, you say, where should I send the cancellation and what did they say?
Mike Mcleish: They said okay. And, then I internally wanted to panic, but they said, “okay, fine.” That sucks, but whatever. And, I thought, okay, this one’s gone onto the next, and I’ll just follow up with them in a few days and just see if they’ve had a change of heart. And, I even started to type up an email and I was going to say, listen to this audio. What did I do wrong in this cancellation? In fact, I did it exactly right. The next morning, first thing, I think eight in the morning I get on my computer and there’s a text from them saying “oh, I’m so sorry it didn’t work out. What do we need to do to do business with you?”
Tom Krol: Hold on for one second. I have to do something really important. I love when things work out exactly like that. That is awesome.
Mike Mcleish: Yeah.
Tom Krol: This always works. I’m telling you it works 99% of the time and that’s just the guess. I haven’t measured that number, but this tactic of negotiating the price works almost every single time. It’s incredible. I love it. I love it. I love it. So, they reached back out and they said, what do we need to do to make it work? All right, so here’s the deal. We’re, into a lot of time in the show, so, but go ahead. So, what happened from there?
Mike Mcleish: Let’s, yeah, let me get to the good stuff. So, we went back and forth again. I actually ended up getting it back under contract for $15,000. And, this is another part, what I wanted to make sure I was conveyed in this, podcast is went back to my, I decided I just didn’t want to keep this one for myself, even though it was a good price for a rental, I decided to again, put this back out to the buyer that that said he would buy it for such and such price. I said, look, I don’t want it. Okay. If you want to buy it, let’s, put an agreement in place and after closing you can buy it from me.
Tom Krol: Okay. So, you decided that you were going to buy it and then resell it. And, you had another real estate investor who had expressed some interest in buying it and what was he interested in buying it at?
Mike Mcleish: Right. So, he wanted it for 22, and so we agreed to do that.
Tom Krol: Okay.
Mike Mcleish: And, so I had, virtually a $7,000 assignment in there. Or, profit if you will. So, I drew up the paperwork, and I sent it to him and I said, “here you go. It’s just like we discussed, you’ve already seen it, you’ve agreed to this.” And, he called me and said, “okay, I have filled out your paperwork, but I made a few changes.”
Tom Krol: Got it.
Mike Mcleish: I said what changes did you make? Well, first of all, I’m going to only do a $1,000 earnest money, not 3000 we’re not doing that.
Tom Krol: Okay.
Mike Mcleish: So, what other changes did you make? Well, I’m going to make your agreement assignable, because I don’t know what entity I’m going to put it in. Okay. What other changes did you make? Well I’m going to use my attorney, not your attorney. I said, okay. Duly noted that you want to do those things, but we’re not going to do that on my deal.
Tom Krol: Right. Beautiful.
Mike Mcleish: So, and he complained about it and said, no, we’re not going to do that. And, it took about 30 seconds and he said, “I’m so glad we got this worked out today and never call me again.” And, he hung up the phone.
Tom Krol: I love it, Mike is not a CBE. What is a CBE? I won’t, let’s not tell anybody what a CBE is. Let them just figure it out on their own. That’s one acronym we’re not going to share the definition of. So, all right, I love it. So, okay, so you are getting ready to buy the house and now you’re starting to look at people who are maybe interested in buying it after you own it. And, this particular guy wanted it and it turned out he wasn’t really a real investor. He was probably just trying to put your property under contract and then assign it to somebody it sounds like. So, okay. So, then, ultimately you end up selling it. So, you buy the property. How did you end up finding this? The buyer who ultimately ended up purchasing the property?
Mike Mcleish: Right. So, I ended up emailing my entire buyers list and said, I have this deal. I’m looking at the possibility of reselling it. And, if anybody is interested, there’s an inspection on a certain date and you can come out and take a look. And, so I did that and I had again, it was a rougher neighborhood. I had three parties came out and looked at it, had an inspection. And, two of them said, “no way, this thing is a wreck. Even at that price, we can’t do it.” And, one said, “I was about to make an offer and then the train went by and we decided not to.” So, again, “I’m, thinking, man, I’ve lost this deal again.” But, I knew there was a buyer in my database from talking to them, when I first started putting my buyer’s list together, this is exactly the type of deal that they want.
So, I picked up the phone, I said, “look, I emailed you and I sent you a text. Why didn’t you come out and take a look at this place at the inspection?” And, they said, “oh, we just didn’t see it, we’re busy.” I said, this is exactly what you’re looking for. So, they went in there and looked at it. Later that day, he goes, “I’ll give you your asking price.” In fact, coincidentally, my dad actually owned the property right next to it, and he’s like all nostalgic about it. He said, “you’ve got to get this place.”
Tom Krol: That’s, awesome.
Mike Mcleish: So, it was great because they had this also an emotional investment into it. They wanted it. And, so, long story short, we did end up closing on that one, and I cleared a, I think about a $6,000 profit in the end.
Tom Krol: I love it. Woo. I would bring that victory bill again, but it’s so far from my treadmill desk. All right, so you bought the property, you, you brought it to your real estate investor friend. You sold it to him, you made a $6,000. That’s $6,000 net profit?
Mike Mcleish: Yes.
Tom Krol: Okay. So, it sounds like you negotiated there some closing fees or things like that. So, that’s totally-
Mike Mcleish: Yeah I incurred some closing costs in the between. Yeah.
Tom Krol: So, you mailed in March, but you got the phone call on May 3rd right. So, when did you actually close on the deal? Or when did you sell the deal I should say?
Mike Mcleish: Yeah, let me see if I can give you the date here on, let’s see, May 17th.
Tom Krol: May 17th so that is 14 days.
Mike Mcleish: Two weeks.
Tom Krol: Yeah. So, let’s just see. So, that’s $6,000 divided in 14 yeah. So, that’s 428 that is awesome. So, that would be, yeah, so that’s on pace to do. If you did that every day, that would be 150K a year. I love it. That is so awesome. I mean, it’s so funny because as tribe members and as rhinos, and I know now you’ve had more success since then. And, you’ve done other deals. But, it’s amazing because we’re, I’m always talking to rhinos and they’re always talking about how much money they’re making. And, you hear 6,000 and it’s like, it’s easy to say, “oh well, you know, 6,000 is nice, but you know what about 20 or 40 and 80?” But, it’s amazing, because I know there’s a lot of people listening right now and I know you’re, you can hear me and I’m going to tell you that I know $6,000 can change your life. I know it, but what’s so amazing is that when you start wholesaling $6,000, it’s, I mean Mike, you tell me, is it easy to reproduce that money
Mike Mcleish: Yes. In this process? Absolutely.
Tom Krol: Absolutely. Yeah. It’s just amazing guy. So, all right. Awesome. So, that is phenomenal. Congratulations. $6,000 is phenomenal. I love it I know you’ve had some other deals. I know you did one, you did a deal where you actually rehabbed in Colorado that you didn’t even see.
Mike Mcleish: That’s correct.
Tom Krol: That’s awesome. Can you just give us a brief little, because I don’t know anything about rehabbing all these listeners don’t. Anybody who’s listening to this, I don’t know the first thing about granite and tile and electrical, forget it. But, anyway, so, yeah, so just like in like what is like a 62nd reader’s digest version of that deal?
Mike Mcleish: Yeah. So, I’ll break it into two parts. One is how did I get the deal and how did I complete it? Right. So, originally this was a deal that I actually wholesaled a house that was owned by the seller. So, we had done a deal in 2015. And, I knew she had other properties. And, we had built very good rapport in that first deal. And, I had emailed her, I don’t know, two, three times, I think in two years. And, maybe one or two phone calls, and it had probably been a year since I’d heard from her. And, I got an email out of the blue. She said, “I’ve got this townhouse in Westminster, Colorado. Would you like to buy it?” And, I said, “heck yes I would.” And, so again, we went to the same kind of rapport building process, but at the end of the day she gave me a number that was, I mean it was literally $30,000 under where I thought it needed to be.
And, I was like, that is an amazing deal right there. So, then I thought, well, this is a pretty good deal. I could wholesale it, but I think I have enough people in place that I can make this actually a fix and flip. So, what I did is we borrowed some money from family member and we closed on it. And, I have a really good friend who is a realtor in the Denver area. And, she said, I’ll tell you what, if you give me the listing, I like to do my own fix and flips. I’m already going to home Depot and I’m going to all these other places. I’ll take care of everything for you. We’ll find a handyman and we’ll put it all together. So, all I had to do was authorize some receipts at home Depot, or some credit card payments. And, they put some money into it and we put it on the market and we did really well with that one.
Tom Krol: Awesome. And, how, what was the profit on the margin on that one?
Mike Mcleish: After all expenses, and lending and everything, $63,000.
Tom Krol: $63,000, now that is worth a trip over to the victory bell. Hold on one second. All right. I love it brother. That’s awesome. And, you also have another wholesale deal that you did?
Mike Mcleish: Yes. And, just a, I think a week and a half ago we closed it.
Tom Krol: And, what was the margin on that one?
Mike Mcleish: That one 14,000, just a shade over 14,000.
Tom Krol: 14,000, 63,000, 6,000, so that’s what, that’s 20, 73, 83,000. Game changing number.
Mike Mcleish: Absolutely, absolutely.
Tom Krol: Now I want to say this in our tribe every, just so everybody knows, we are all tithers. We, the four spiritual laws of prosperity by Edwene Gaines who is now I can call her a friend is awesome. We believe in one of those rules is tithing. So, I want to ask you, I’m just giving you a thumbs up or thumbs down. Are we all good enough department?
Mike Mcleish: Absolutely, yes. Yep. First thing.
Tom Krol: That’s number one and number two so that’s, if there’s, you know, there’s a few books guys, the four spiritual laws of prosperity, The Go Giver, The Rhinoceros Success by Scott Alexander who’s also a good friend, and is going to be in our January event. I’m dating the podcast again for the second time. They’re going to kill me in January of 2018, which is coming up here in very, very shortly is going to be with us in Orlando. A ton of great people are going to be there. It’s a content event, not a sales event. So, tribe members only. But, if you are a tribe member, of course, make sure you get there. If you’re not a tribe member yet, go to Wholesaling Inc. wholesalinginc.com, make sure you sign up and make sure you get to that event.
There were people who went to our last one in salt Lake city and literally crying changed their life, made a fortune from just attending that event and implementing. So, that’s amazing. But, anyway, so all right, so that’s number one. Number two, the other thing that I want to just say is make sure that, I’m going to just give you a little coaching here. Make sure that you are a good steward of that money because that’s a lot of money and sometimes it can be like, a lot, a lot. So, what I would suggest is we are big fans of Mike [inaudible 00:35:39], and Profit First is the name of his book. So, make sure are, have you read that book yet, Mike, or no?
Mike Mcleish: I haven’t. No, it’s definitely one I want to read.
Tom Krol: Yeah, brother. I would say this, get that book and read it immediately because that 83,000, it could sometimes be like holding water and you don’t want to like all of a sudden you look and you’re like, what happened to all that money? So, I would strongly suggest profit first, which essentially says that, you pay yourself first at, that’s what your business, your business is a servant to you. You should not be a servant to the business or servant to debt. So, you pay yourself first. And, that’s why it’s called profit first because you profit first more before you do what most people do, which is expenses first. So, awesome. Congratulations. I love it. Very exciting. I can’t wait to see what else comes down the line in the future from you. And, I also know you are a tribe member, so my favorite thing in the whole world is to coach people to success in wholesaling. So, I know you said you had a few questions. So, what do you got for me?
Mike Mcleish: I was looking at making a shift.
Tom Krol: Okay.
Mike Mcleish: And, we’ve talked about this a little bit in a marketing strategy.
Tom Krol: Oh man. This is very scary, the [inaudible 00:36:49], to call. It’s just changed. I want everybody to hear this, because we’re going to do a coaching call, right? All right. So, what do we got and talk to me.
Mike Mcleish: Okay. Well I think you know where I’m coming from and this a little bit. We had talked about, shifting markets and a strategy a little bit and now I’ve kind of gotten overcome some things in this market and I think I want to stick with it, and I’ve now set myself up for the cold calling process.
Tom Krol: Okay.
Mike Mcleish: I guess where I’ve made a few mistakes since that I got busy. I wanted to get these deals done no matter what. I’m stopping everything and I’m going to bring them home right. And, so everything stopped. So, I’ve been about seven weeks without marketing, but I’m set up to do cold calling, but I didn’t know if I should actually go back into direct mail and combine that with cold calling or something else.
Tom Krol: Okay. So, this is a great question. So, what I want to do is I first want to just give you a little bit of clarity and I want to give our listeners a little bit of clarity, because this is my favorite thing. So, here’s the deal. The first thing what Mike is asking is Mike is asking about his territory. Now, one thing that I have learned as a coach is that no matter what I can coach, whatever you believe is true. So, for instance, if you believe that your car is red and everybody tells you it’s blue, and I tell you it’s blue. If you believe it’s red, it’s red, it’s red for you. We create our own reality. I really believe this. A lot of my, I’ve learned this from my mentors. I had nothing is original from Tom Krol. Everything comes from other men and they’re genius.
So, one thing I’ve learned as a coach is I can’t change people’s belief system. So, when Mike was first coming into the program, I remember Mike distinctly, because he’s been on so many support calls and he really struggled in the beginning. So, that’s why he’s on the podcast. Because I love Mike. He’s awesome. He persisted, he scrappy. And, one thing he was saying is he kept doubting his territory. So, he was struggling and he would blame the territory and struggling and blame the territory. So, what I had suggested is to change territories. Now why would I have suggested that? Is it because there’s anything wrong with his little corner of the world? No, of course not. In his corner of the world, people inherit homes. People lose jobs. People, have to move quickly for their, for another job, out of state. There, are tons of people who are unhappy landlords, as we already heard about.
But if Mike believes that, and I’m sorry to talk to you, like in the third person here or about, you’re not at your but-
Mike Mcleish: No, problem.
Tom Krol: But if Mike believes that Greenville is not a good territory, then Greenville’s not a good territory. That is the reality. We’re, just the projector end of the reality. So, the reality is the screen, if we want to change the screen and we have to change the projector in internally. So, what happens is he and I have a, like a fist fight throw down about this conversation. I remember I was standing outside on my side yard under the Eureka pumps. So, now you’re associated with every tree in my yard or pretty much. But I was under my wind chime, in the wind chimes going and Mike is complaining about his territory and I’m like, “oh what is he talking about?”
But, instead I just said “okay, new territory.” And, what I did was I didn’t give him a lot of wiggle room. So, if you remember this Mike, because I remember it very distinctly when we were having that discussion, you were kind of fighting me a little bit, and you felt like I was being a little short with you. Is that accurate?
Mike Mcleish: Yes.
Tom Krol: Right.
Mike Mcleish: Yes.
Tom Krol: Right. So, it was like a little aggressive, a little blunt. And, I only asked him a few questions because I just wanted to know when he first got on the phone, what was his belief system. And, as soon as I knew I immediately jumped to virtual. Now what happened was when we jumped to making that switch to go virtual, what happened was that he had like a knee jerk reaction. I knew that this was going to happen. It’s either going to be, he’s going to go all in on one or all in on making Greenville work.
And, it sounds like he did the ladder, which is great. So, this is the key is that now what Mike is saying, he’s like, well Tom, you know, I know you’re my coach, but I really kind of like Greenville because I made it work. Beautiful. That was the point of the coaching. So, to answer your first question, Mike, you don’t have to sell me on staying in Greenville because there is no problem with Greenville, South Carolina. There’s no problem with Denver, Colorado, there’s no problem with San Diego, California, there’s no problem with Jackson, Mississippi. It doesn’t matter where you are with, the only exception is if you live in a town that has a very, very, very small population like a farm town where there’s 6,000 people. In that case, I would suggest virtual. But, that is the key. So, to answer your first question, absolutely. 100% stick in Greenville.
We don’t have to ever discuss it again. There’s obviously no problem with that location. Question number two was about marketing strategy. Now, the whole entire tribe is very, very excited about our, who was, we had a student who came in, his name was Brent. He came in, and he rocked the world. He had the most success of any student I think we’ve ever had. He made, I want to say just over $900,000 in his first year with us. And, he developed a new system that where actually, Brent is flying down, and we’re going to include in the course. So, if you’re thinking about becoming a rhino, get in here, and you’re going to have access to those modules. And, you’re going to see exactly how Brent did it, and we’re going to include those modules in the course.
So, what Brent, what Mike is asking now is, Tom, should I stay with direct mail? Should I go to or you know, he’s been thinking it sounds like about going to the cold calling system from Bret, or should I do a combination of both? Here is my coaching advice for you, Mike, on this one. 100% you don’t have enough traction yet to do two marketing channels. So, I want you to think of a marketing channel is you’re trying to start a fire with a magnifying glass and just think of Gary Keller the one thing or Mike McCollough, what’s the pumpkin plan, so Scott Alexander who says to focus on just the S, the power is in the singularity of the focus. The one thing. So, when you’re trying to start a fire with a magnifying glass, if you have two pieces of paper, and you go to one piece of paper, and it doesn’t quite catch fire, and then you move it to the next piece of paper and then you go back to the other one and then back to the other one, and then back to the other one.
What’s happening is those pieces of paper, when you take the light off of them, it’s not like they stay at the same heat temperature. They start to drop when they’re not focused on. So, what’s happening is you’re always restarting. If you go to a REIA meeting, and you speak to poor or struggling wholesalers, and you say, “well, what have you done to find a deal?” What you’ll notice is they always have had multiple ways to do it. So, they’ll say things like, well, first I do a little bit of driving for dollars. And, I also was called Colin Craigslist, I spoke to a few agents, I put up a few bandit signs, and I even hand wrote a few letters. No good. You want concentrated effort in one channel. So, here’s the deal. This comes back to your belief system. If you think that direct mail is not working in your territory or if you’re more excited about the potential of cold calling, what I would suggest is pick one or pick the other.
And, then once it’s up and running, and you’ve done, I would say what we always say in the tribe is 20 deals, and it’s automated. Meaning that you don’t have to send out the mail. Somebody else sends it out, or you don’t have to, whatever it is that keeps those leads, those phone calls coming in automatically without you having to do anything. Once that channel one channel at a time is dominated in your territory, it’s automated, it’s delegated, and it’s producing leads consistently. Once that’s happening, then move on to the next channel. Which one should you do first? Whichever, one you believe is going to be better. Can you find deals with direct mail? Of course, you can find deals with direct mail.
Can you find deals with Brent’s new cold calling system? Of course, you can find deals with Brent’s new calling system. So, whichever one you think is better for whatever set of beliefs that you have, use that system. That’s my advice for you. Pick one and then be totally dedicated to it. Be totally married to it. Dominate it in your territory. Be number one. Don’t dip your toe in the water, jump all in into the deep end and make it work and automate it. And, then move onto your second channel. Whatever you do, the worst thing that you could do would be to do two or multiple channels, marketing channels to find motivated sellers at the same time. Does that make sense?
Mike Mcleish: Perfect decision made
Tom Krol: Decision made? I love it. Keep me posted in the next support call on Wednesday. We’ll, we have you guys, just so you know, we have a Wednesday support call and I do some of those calls. I think I’m on for this Wednesday or next Wednesday. I don’t know. But, yeah, so guys are, that’s Mike, you’re an all star brother. I can’t wait, I want a few piece of anybody who’s just starting off. Anybody who’s just starting off in wholesaling, what advice, I know you’re going to advise them to join the tribe. Because all tribe members always advise that first. So, everybody who’s out there join the tribe. If you haven’t joined it, it’s phenomenal. Fill out an application. If we like what you have to say, we might invite you in to be a tribe member. It’s awesome. But, besides joining our rhino tribe here, what would be some of the pieces of advice that you have for people who are just getting started in wholesaling real estate?
Mike Mcleish: I think it’s just about in any sense of it. It’s just being consistent. Me being the recovering engineer, it’s, don’t overthink it. Don’t scare yourself out of things. Don’t jump onto a different horse. It’s just be consistent, be consistent, be consistent. And, that’s how I was able to do these three deals in different elements. But, consistency was key. One was followup, one was just tenacity and not giving up. And, one was just sticking with the direct mail when, after two months it was like, I don’t have a deal. And, that deal came from the first mailing. So, I think consistency is got to be one of the number one things that I would say, aside from getting a good mentor and coach.
Tom Krol: I love it. And, belief system, right guys? I mean, Mike, are there deals in Greenville, South Carolina?
Mike Mcleish: Absolutely. They’re all over the place.
Tom Krol: They’re everywhere guys. The deals are everywhere. It’s just there’s only three types of sellers. We’re only looking for that one. And, also, Mike, I know you’re doing deals right? Number one piece of advice in the tribe is an attorney. Do you have a real estate attorney that you use?
Mike Mcleish: I do.
Tom Krol: Perfect. You heard that guys? So, there’s regulations that are different from state to state. The regulators are our friends. We love the regulators. They tell us exactly what we can do and exactly what we can’t do. The only people who know their information are real estate attorneys or the regulators themselves. So, if you’re thinking about getting into real estate before you do anything, real estate is risky. It’s, wholesaling it’s, it takes hard work and there’s, it’s regulated. Make sure you have a real estate attorney in the state where you’re going to be doing real estate transactions.
I have one, actually. I have multiple ones. Mike has one and all the successful tribe members have real estate attorneys. Tell them what you’re going to do, how you plan on doing it, on every single step. Talk about disclosures, what you can do, what you can’t do. Make sure that they know what wholesaling is and make sure that they are a good attorney. So, how do you do that? That’s a whole nother episode. But, Mike, I love your brother. It’s awesome to have you on. It’s an honor really. And, it really is. When I have a student, we have so much, we have a lot of people who come in and they’re just automatically successful right in the door. But, those people are like, whatever, right there. But, when people come in and they really learn and they really grow and they really have success, from that true sense of having a change.
I really, it’s what I live for men. Your success is my success, so I’m super happy for you. God bless. It’s been an awesome honor having you on the show and I can’t wait. What happens here in the next year I want to talk, we have to, I always say I want to have a followup show, but like it’s so rare that we have them. But, make sure get with our people, you know who to contact. I want to have another followup show with you in like six months, and I want to see where you’re at because I have no doubt that you are going to crush it. You’re going to be South Carolina’s number one real estate investor and I am looking forward to hearing that. So, awesome man. Thanks again for having, oh and by the way, one other thing, a book that you would recommend everybody reads?
Mike Mcleish: Oh man, so many good ones. Definitely a Rhinoceros Success is probably, if you haven’t read anything on business, that’s where I would start. Whether it’s this business or any other that’s got to be probably the one I would recommend and I find myself giving away the most right now.
Tom Krol: Brother. I could say, is it I was riding lawn mowers in Florida. I’ve got fired for not being able to make enough lawn care sales. And, now I’m friends with Scott Alexander. I love wholesaling. I love it. Scott Alexander guys, the author of Rhinoceros Success. It’s crazy. I can call him. I have his phone number. I mean, that’s insane. You guys. What are you waiting for? All right, everybody Mike. I appreciate it. Thank you very much brother.
Mike Mcleish: Thank you. Tom is very, just a humbling experience just to be on here. I can’t believe, you know, looking back six months ago, before I joined the tribe that I would actually be here on the podcast. So, it’s just been an incredible journey and I can’t wait to follow up with you again here in six months.
Tom Krol: Did you have a victory bell? Has somebody sent you a victory bell?
Mike Mcleish: I don’t have a victory bell.
Tom Krol: You’re getting a victory bell. I’m sending it right now. I’m sending you a victory bell. Mike awesome. All right guys. That was a Mike McLeish. He is in Greenville, South Carolina. He is a rhino. His horns are getting nice and shiny and big. It’s awesome to have him on. If you have not already joined the tribe, it’s Wholesaling Inc, wholesalinginc.com. Guys, come on in and if and fill out an application, if we like what you have to say, we might even invite you into be a tribe member. All right guys, talk to you next time. Enjoy. God bless. Talk to you soon. Bye. Bye.