Posted on: January 28, 2022
WI 873 | Wholesaling Success

 

In real estate market, the buying part always comes swiftly when you find a great deal. If you can find great deals, hard money lenders, investors and clients will throw money at you in no time. You can wholesale a property after spending at least ten hours of your time with zero risk. If you can find great deals that can be bought at a reasonable discount, then there’s plenty of meat on the bone to make income and achieve success.

Want to know how to get there? Then listen to today’s episode because this unstoppable wholesaler will spill the tea on how he cracked the code in wholesaling and dragged his way up!

Finding the Secret Sauce to Success in Real Estate Wholesaling

Episode Transcription

Mr. Brad, how are you?

I’m doing good. How about you?

It’s good to get on here with you, catch up and see what you’ve got going on. You’ve shared a win with me. Let’s get into it. How long have you been in real estate? You talked to me a little bit before we jumped on here about how the Wholesaling Inc. podcast was the education that allowed you to start. I want to hear about that. When did you start listening? How did you get involved in real estate? How long were you in real estate? You’re also a family man. What does that look like for you? Where are you in the country?

I’m in Asheville, North Carolina, which is western North Carolina, up in the mountains. I’m married and have three daughters. I always joke that the only guys in the house were me and the dog.

At least you got the guy dog. I messed up having a girl dog now.

I fell into real estate investing and wholesaling specifically by accident. My wife worked in real estate law for several years. When our youngest daughter was born in November of 2019, she decided to be a stay-at-home mom. During her time off, she got interested in the retail side of things and so she decided to go to real estate school and get her license to become an agent.

We had some friends that had come into town one weekend and we were out to eat with them. She was telling them what she was doing and about her plans. It was another couple and our friend started talking about flipping contracts and wholesaling. He’s explaining all this to my wife but it’s catching my attention so I’m asking him questions. He’s like, “It’s flipping contracts. It’s wholesaling.” I’m like, “I don’t have any idea what any of that is.”

He explains it a little bit. Over the next week or so I did what a lot of people do. I started going down the rabbit hole on YouTube, watching videos, soaking it in, and trying to learn as much as possible. It’s funny because one of the first guys or maybe the first guy that I came across was a guy named Max Maxwell. He is a pretty successful real estate investor among other things. He’s doing this video where he’s driving for dollars.

Wholesaling is great. It’s a great way to get a fast, big paycheck. But for me, the end goal is to generate streams of passive income.

I’m watching this video and he starts naming the street names. I’m like, “That’s familiar. I know that street name.” It turns out Max is from the same hometown as me, which is Winston Salem, North Carolina. We’re the same age. We went to different high schools but we got a lot of mutual friends and he is an Air Force veteran. I’m also an Air Force veteran. There was a lot that I could connect with him on and so I started following him.

Eventually, I came across Mr. TTP himself, Brent Daniels and started following some of his stuff. I eventually found the Wholesaling Inc. podcast. I was listening to the Wholesaling Inc. podcast every day. If I ran out of new episodes, I’d go back and listen to some old episodes. It gave me an education but it also motivated me because there were so many stories that were like mine of people getting into it.

My early education was Wholesaling Inc. That was back in August of 2020 and it took about eight months when I finally closed my first deal. The first two deals I did were houses. It was about this time in 2021 when I was watching the Wholesale Hotline that Brent does with Jamil Damji and Pace Morby. They had this guy on there talking about land and how to make passive income through land. That guy was you. That’s how I got introduced to the land side of things.

It’s about the same exact time as I got on board with Wholesaling Inc. Brent Daniels brought me right in and interviewed me. It’s funny because Brent Daniels does land as well. I remember many deals off of Brent Daniels at the beginning of his land progression. It’s always good to see someone else out there crushing it in land. I love that. I didn’t know that entire story. I knew we had met through the Wholesale Hotline and the Wholesaling Inc. Podcast. I didn’t realize you had been listening to it that long and pulling off house deals. Were you pulling off your house deals by listening to the podcast?

Yeah. That was how I got a lot of the early education and somewhere. I was doing everything. I was driving for dollars. A friend of mine, the same guy that introduced me to wholesaling, had a PropStream account. I was using his PropStream account to pull lists and I was cold calling. Somewhere along the way, I don’t know if it was a video or what, but somebody mentioned calling the county and getting a code violation list. That was where my first two deals came from. It was a couple of houses that were on the code violation list here in the county where I lived.

Let’s fast forward about a year. What are you doing more of now? I know you had a win and I was like, “Let’s do an episode and talk about this. I want to deep dive it.” Let’s fast forward now from that year to now. What has that looked like?

WI 873 | Wholesaling Success

Wholesaling Success: The Wholesaling, Inc. podcast not only gave me an education, but it also motivated me because there were so many stories that were just like mine.

 

I’m following your lead. I’m sending out mailers and land offer letters. I’m giving these people a blind offer. It’s a lot easier than cold calling because in cold calling, you’re picking up the phone and you’re calling somebody who probably gets these calls all the time. They get annoyed. With letters, it’s so much easier because, for the most part, you’re only dealing with people who are motivated to sell. I’m sending out mailers and I’m waiting for the responses to come in.

I love it too because we’ve done the cold calling and we’ve sent the postcards. Postcards get a tremendous amount of calls into our system. They’re talking to my acquisition managers but our acquisition managers make hundreds of dollars per hour, and a lot of times these landowners just want us to comp their land. They want to know what the land is worth, but we’re not land appraisers.

We are land buyers. We purchase land, turn around, flip or sign our contract, or seller-financed it and get a passive income. That’s why I love the land offer letters or as you said, the blind offer. It’s an offer that you’ve sent without even seeing the land. How does that look? How many blind offers have to send to get a deal in this market where land is exploding right now?

I don’t have my numbers in front of me but I think I’ve sent about 4,500 letters in six months. That turned into two deals. For both of those, we did a contract assignment. I wholesaled it. The goal as I’m gearing up for my next mailer would be to start buying these parcels of land, and then selling them on owner finance. What got my attention with land in the first place was the passive income aspect. Wholesaling is a great way to get a fast big paycheck. For me, the end goal is to generate some streams of passive income.

There’s nothing wrong with wholesaling. I still wholesale or flip them from time to time even though my goal is the passive income, to turn around and seller finance that thing at retail value and charge an interest rate. That way, we’re getting monthly payments for 6, 7, sometimes 30 years. I have to still flip some and wholesale some to build up my cash reserves to be able to buy that land. Even though we’re buying it for $0.30, $0.40 on the dollar, if it’s a $100,000 piece of land, we’re going to pay $33,000. I need that money to come somewhere. That’s how we built up over 115 notes with no debt whatsoever on them. Hold your head high. I can’t tell you how many I would wholesale and flip. I looked back and I’m like, “What will we have made if we seller finance that thing?”

It’s a good feeling. Regardless of what the exit strategy is.

Let’s deep dive into both of those. In six months, 4,500 letters to do two deals. Let’s talk about the first one.

They overlap in a weird way. The first piece of land I got under contract took longer to close. That one was a wooded lot. It was about 4.5 acres. It had been passed down through several generations. The owner was an older woman. She lives right in the middle of New York City. She got a letter and for the first probably 2 or 3 weeks, I didn’t even talk to her. I was dealing with her niece. She wanted to sell so I got it locked up under contract and marketed it on Facebook Marketplace.

Do your homework. Know all the details of the land and what the story was.

I found a buyer. The title was an absolute mess. It took forever for them to go through the title search, and then they needed all these birth certificates for the current owners like siblings and husbands. That took forever to get because she’s an older woman. These people had been gone for a year so it took forever to get death certificates. We finally got it closed and it was a nice $10,000 payday for me.

The other one was a little more interesting. When I’m sending mail, if somebody owns more than one parcel, they’re not going to get multiple letters. They’ll get one letter. This lady gets a letter for one parcel of land and she calls me. She’s like, “We definitely want to sell but I don’t have just one. I’ve got thirteen lots.” She said that they bought them as part of a corporation years ago. They had plans to build on them and sell the houses and they never did. She’s got these thirteen lots in a subdivision in a mountain lake community about an hour from here where I live.

It’s a beautiful area. It’s a beautiful lake. There was a paved road going through there. There was electricity. They didn’t have access to water and sewer so all the lots needed well and septic, but it was a great area. She had walked away from the corporation and from the land so she hadn’t paid taxes on them. She hadn’t paid her fees to keep the corporation active with the state and she just walked away. She was like, “We’d like to get rid of all of these lots if you’re interested.” I’m like, “Yeah. Sure. We can do some with this.” It’s funny because I got all thirteen lots locked up for cheaper than the original offer on one lot. The way I structured the deal was she owed $5,000 in back taxes. I’m like, “I’ll see what I can do and maybe get those covered for you.”

I found a buyer who is also an investor. She and her husband do a lot of fix and flips. They were looking to build a development in another part of western North Carolina, but the deal with the land that they were trying to buy fell through so they were looking for more land. She found my listing on Facebook and she was interested. They definitely wanted to do their homework. They wanted to know all the details of the land and what the story was. They were going to buy the whole corporation instead of buying the lots individually and keep everything simple. Long story short, I knew that I wanted to make a minimum of $10,000. I structured the deal with the buyer so that it would be $15,000 for me but I would take the $5,000 to cover the owner’s back taxes. That’s what I did.

Not just one victory bell ring, but two. I didn’t forget about it for the first $10,000 but I did not want to interrupt your train of thought. I was taking notes the whole time so here we go. That’s for our long time Wholesaling Inc. podcast listener who not only flipped a couple of houses, but a couple of lands as well, and not only a few parcels of land but thirteen lots. It’s not just thirteen lots, you assigned a corporation. That’s what it sounds like to me.

The reason we did it that way, for one thing, it made it easier. When the owner bought that corporation, there was no POA or Property Owners Association. They were grandfathered in to not have to pay those POA fees. In order for the end buyer to keep it that way until they could get these houses built, they had to buy it as the corporation.

I hope your ears are ringing on your end like they are mine. I hope that sound came through as loud as it was on me.

WI 873 | Wholesaling Success

Wholesaling Success: When you’re cold calling, you’re calling somebody who probably gets these calls all the time, so they get annoyed. With letters it’s so much easier because, for the most part, you’re only dealing with people who are motivated to sell.

 

Years ago, I had not even done my first deal. I was still listening to the podcast every day and I had no clue that a year later that bell would be rung for me so that’s pretty awesome.

I want to get your address as soon as we get off here. I’m going to send you one. You can hang it up right behind you there. Let’s not forget that. Let’s deep dive into this some more. I want to go back to that first $10,000. You made it so nonchalantly like $10,000 in six months by sending 4,500 letters. I wanted to know what that felt like. Was that proof of concept that lets you know it was believable and you can keep doing this? What did that feel like? What did the celebration look like? Was it like, “Honey, we’re going out to dinner. Call a babysitter for all three girls.”

What went through Brad Parks’ mind? Your wife is a stay-at-home mom now and a real estate attorney. She’s probably sitting biting her nails like, “What are you doing, Brad?” I want to know the backstory of that. The readers are probably, “Why does he want to know about that?” I remember the first deal I closed. I’ll never forget what that felt like.

It’s proof of concept. It proved that I could do it. Even going back to that first house that I did, that was a $7,500 assignment fee. There are bigger deals that are going on all the time. There are people that are blowing $7,500 out of the water. Somebody might say, “That’s not life-changing money,” but it is life-changing money because it’s proof of concept. It makes me hungry for the next deal. It’s motivation and it keeps us going.

You helped an older lady that had received this multiple times that her niece had to talk to you at first. It sounds like it was inherited down the line. There were probably breaks and chains in the title. You had to look at birth certificates, death certificates, affidavits of heirship, and all these things. She could have listed that on the MLS with a realtor. You solved a problem.

I don’t think it ever had even crossed her mind to do that.

If she would have, good luck. Most end buyers wouldn’t have ever dealt with that so you served her, and then you served your end buyer as well. It’s a win-win-win because your seller won, Brad won, as well as your end buyer. The whole thing with the corporation was funny because, in my fourth or fifth deal, I purchased the last remaining vacant lot in a mobile home park in Fountain, Colorado. It was the same situation. They owned all the lots in there at one time.

Her husband died and he was a builder. She left the corporation and go back, so the state took it and then the county was after the land. I was able to revamp that corporation. I had maybe $1,000 into the deal. I sold it for $36,000 on seller financing back in 2016. I’m still getting $534 a month on that piece of land. I couldn’t believe it. I replaced my wife’s car payment with that. I replaced my truck payment and before I knew it, we’d replaced our house payment, our grocery bill, and our electric bill. We’re then financially free. It doesn’t take as much money as most people think. You get one of these $10,000 deals a month going consistently like clockwork. How many more do you have to do after that?

It’s a good feeling to get a paycheck, but when you know that you can get somebody out of a bad situation, that’s a good feeling, too.

That was a good feeling to get that lady out of tax trouble. She had the state blowing her phone up. It’s a good feeling to get her out of that situation. Going back to the first deal I ever did, the owner of that house was facing foreclosure. She had a problem tenant living in the house who wasn’t paying rent. Every deal I’ve done has helped someone out in some way and that’s a good feeling. It’s a good feeling to get a paycheck, but when you can get somebody out of a bad situation, that’s a good feeling too.

We have to make a profit so we can keep the phone lines and the power on to be able to send these mailers and answer the phone type thing. If there’s no profit, we couldn’t keep doing this. That was one of the things I struggled with on the first couple of deals. It was like, “What gives me the right to make $10,000?” Now I’m realizing if I don’t do a $10,000 deal, we have bills to pay and things like that.

You mentioned some guys make the $7,500 assignment fee and they blow it out of the water, but you don’t look at their marketing expenses. They might be on TV, radio and have 3, 4 or 5 cold callers and their marketing expenses are $25,000 a month. How much did it cost for you to send 4,500 letters? You’ve got to look at what you spent, what you sent, and how much you made.

I’m operating as a one-man show so I know that’s something that you teach us to keep up with the numbers. I have not done a great job of it but that’s going to be part of my goals. I’m going to keep up with those numbers a little better.

Keep it super simple. If you send out 4,500 letters and you pay the mail house to do it, you probably spent $4,500 to make two $10,000 assignment fees so it’s $20,000. How often would you spend $4,500 to make $20,000? Brad, thanks so much for jumping on here. Thanks for sharing your wisdom, the story and the adventure. I’ve got two more questions. What’s next? The second question is if you could go back and talk to Brad Parks twelve months ago, what would you tell him?

I want to keep looking for good assignment deals but I want to start buying the land myself and creating that passive income through owner financing, By the end of the year, I would to scale it to more of a full-fledged business and maybe bring in some help onboard to help me with some of the stuff. I know there are great VAs out there. Eventually, I want to get to that point. As far as offering advice, more than a year ago today I had not done a single deal. I was still grinding it out. I was cold calling and I didn’t give up. I’m sure somebody is reading right now that’s in the same boat that I was in years ago. Don’t give up. Don’t be afraid to reach out and ask for help because I did that. I’d listen to the end of these episodes and wait for the contact information.

If it was somebody that I felt like I could connect with, I’d hit them up on social media or email them. Every single person that I ever reached out to helped in some way. Whether they answered questions over Instagram or picked up the phone and called me. Everybody helped, and that speaks to the spirit of this entire community. Everybody is willing to help whether you’re helping another investor, or whether you’re helping some little old lady that’s got 5 acres of land that she’s been holding on to forever and doesn’t know what to do with it. Don’t give up and don’t be afraid to reach out for help.

WI 873 | Wholesaling Success

Wholesaling Success: There are bigger deals that are going on all the time. There are people that are blowing $7,500 out of the water. You might say, that’s not life-changing money, but it is because it’s proof of concept and it makes you hungry for the next deal.

 

With that said, how can people get in touch with you, Brad?

You can email me at BradBuysLand@gmail.com or you can find me on Instagram @BParks115 and you can call me or text me at (828) 484-1517.

Thanks so much for being such a go-giver to our community. You hear it, Rhino Nation. That’s who we interview. That’s who we ring the bell with. That’s who we ring the bell for. Brad has done four deals, the two house deals, and the two land deals. We would probably say thirteen on that second one. He went from 1 land deal to 13 in a short amount of time.

What I kept hearing was resourcefulness. You stayed at the par. You said that the title company had all kinds of issues but you kept pushing forward and it’s not easy to sign in a corporation. You found that builder that had missed out on a piece of land and ultimately gave him another piece. For some reason, in my mind, your land was even better than the one that had fallen out of contract. Am I right?

Absolutely. Without a doubt.

There you go, Rhino Nation. If you’re interested in getting started in real estate as Brad did, give us a ring. Head on over to WholesalingInc.com/land, fill out the form, schedule the call, and we’ll see what your goals are in real estate. If we feel we’re a great fit, I’d be honored to coach you. My name is Brent Bower now signing off. Thanks so much, Brad Parks. Have a great day. I appreciate you being here.

Thanks. I appreciate it.

 

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About Brent Bowers

863Brent Bowers, is an investor and coach with a focus on buying and selling vacant land. As an Army Officer with over 8 years of service, Brent was spending a great deal of time away from his family, and he knew he needed to make some changes in order to be more present with his wife and children. In a short period of time, Brent was able to expand his business, hire a team, and (most importantly) spend quality time with his family while still working hard and helping others.

While Brent invests in many different types of real estate, his favorite investment strategy deals with buying and selling vacant land, and he enjoys sharing his expertise in this area with his coaching clients. Brent chooses to live his life based on Bob Burg’s quote, “Your influence is determined by how abundantly you place other people’s interests first.” He is passionate about helping other people find success in real estate investing, particularly in land investments.

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