We’re talking about massive deals today, folks!
Have you heard the news that you can make a six-figure salary with just dedication and commitment as your capital? In real estate wholesaling, that’s pretty much possible. If you know what you’re doing, you can make tons of money in real estate, even if you’re still in the starting line.
Join us in this podcast as we dissect the ins and outs of how this excellent wholesaler skyrocketed his way to $770,000 in profits—teaching you how to build long-term —wealth out of distressed properties. Curious? Then tune in to this episode to find out more!
From Working Two Jobs To $770,000 In Profits In 36 Months With Noah Pruett
Imagine in 36 months, you go from working two jobs, 9:00 to 5:00, plus working for somebody else but you still have that sparkle in your eye, fire in your belly, electricity in your feet to be an entrepreneur. You want to go out and do something special. You find out about wholesaling real estate and investing in real estate. You see this as the most proven path to financial freedom and you take serious action, then 36 months later, you’ve closed $770,000 in profits to you and your family business. That is the story, the discussion and the conversation that we’re going to have in this episode. I’ve got Noah Pruett from Minneapolis. This is an incredible story because this is a story that a lot of people have. First of all, welcome to the show. Second, congratulations on all the success. I’m sure everybody wants to know how you find out about and start your wholesaling business.
First of all, thanks for having me on the show. I wouldn’t be here if it wasn’t for you. Ever since I started and google how to make money working from home, I found you on YouTube and went deep into YouTube university. Honestly, you have been the guy since day one. I’ve tried to model my business after yours and stay lean. I want to thank you. It’s an honor to be here. I told my wife years ago, “I’m going to be on that show one day,” and here we are.
We all know that you did all the hard work. Let’s get into this. What was your background? What were you doing before you became a full-time real estate investor?
I’ve watched a guy that used to work for you. Who is the guy that plays Madden?
He’s the man. I had a similar story to him. I wasn’t an ex-bartender and a car salesman. I have been used to talking to customers and building rapport. That’s how I started. I was a bartender for nine years. After that, I needed to change. I went into car sales. I was making six figures a year selling cars but something about it didn’t feel right. It didn’t give me the fulfillment and time freedom that I was looking for. I knew that I always wanted to be an entrepreneur and a boss. That’s always been in me since I was in high school. I knew I wasn’t made out to be an employee.
I think a lot about when you have that fire in your belly but maybe there are certain things that you are responsible for, whether it be a family, bills, parents, siblings or whatever it is. We all have different situations but we find ourselves, “I’ll go and do this for a while to make some good income so that I can make sure I can take care of all these responsibilities,” like you were doing selling cars. In the back of your mind and heart, you know, “I want to own my own business. I want to have control.”
You get into something like that for nine years, but then you start side-eyeing different things, how to make money from home, looking into wholesaling real estate, and the incredible opportunity. That is finding discounted properties, and then matching those up with buyers in the marketplace, and making an incredible income. I love that you went from selling cars and making drinks to doing this business. It’s a beautiful example that you can do it. How long did it take you? Did it take you 3 years, 6 months or 1 year? Set expectations for people that are hungry out there for what they can do in this business.
I completely agree with you that this is the greatest business ever. There’s no other business like it. There’s no other business where you can go from nothing essentially to making six figures. You can do that in one year. For me, it was about three months until I got my first deal but we were going after it hard. I was calling morning on my way to work and during my lunch breaks. I don’t know if most people don’t know this or not but you can use the Mojo Dialer app on your phone. I was calling while I was driving. It was bananas. It was about three months from when I pulled my first list to when I locked up my first contract, and then it was about another 30 days after that. It’s about four months from pulling the list to closing the deal.
After you closed your first deal, was it big enough to where you could go into this business full-time? Did it take a while longer to get some more deals and checks coming in to be able to replace your current income?
You can start researching how to make money from working from home through real estate deals. You can also listen to podcasts to learn.
It took a while longer. Honestly, after watching your videos, I knew that it wasn’t going to be the best situation to quit your job. I knew I was going to be better off spending that money on marketing. My first deal was a $16,000 deal. The deal was $32,000 with an elderly lady. She was moving into a retirement home. She needed to sell her house but she couldn’t show a profit from the sale of her house. Otherwise, she wasn’t going to qualify for the retirement home. Her son and I made an agreement where I would get the net proceeds and then I cut him a check as well for $16,000. They got the $16,000. I got a $16,000 assignment fee. They were able to sell their house and everybody was happy. I sold it to a realtor and he was happy as he can be too. It was a win-win-win for all three of us.
If you break down the number of people that benefit from us going out and being proactive, it is at a minimum of 50 people in this transaction that are affected on average every single time that we do a wholesale deal, which is incredible. There are lenders, private money, buyers, buyer’s family, escrow, title, and the seller. There are so many other people that you wouldn’t expect to be affected by that, all the contractors and specialists. All these people have an opportunity to make income from the distressed property because you decided to get on your phone on the way to work and make calls, be proactive and solve the problem of this property owner. That’s what we’re talking about. For $16,000, did you get a check or a wire?
I got a check. I wanted a check.
It’s something tangible that you could hold in your hands. It’s exciting. You get this $16,000 check. Time travel a little bit with me. What did that feel like? For everybody that is working, have called and talked to 5 or 10 people, they have done some postcards or internet leads and are getting some calls coming in but they still haven’t closed that deal, tell them how that felt when you got that check.
It will break your mind. Your brain does not think the same after that. It goes from maybe being a possibility to “I can do this. How do I pour gas on this and take this to the next level?” It’s the best feeling. It was two months of salary that I was making in selling cars for one phone call.
Once it’s proven and you pull this out of thin air, it’s exciting because then you know you can do it again and it’s just a matter of time. If you keep taking these actions and providing this value to the community, neighborhoods, market, then you are going to be successful, do bigger checks and do more of these things. Noah, you can break this down. You find a list of distressed properties of which 6% to 10% of the real estate market is in distress at all times.
There are more opportunities than there are real estate investors to go after them. Whether you’re driving down the street and you see ugly properties, you can get the phone number of that owner, call them up, have a conversation with them, solve their problem, put that property under contract, sell that contract to a cash buyer and it is $16,000. That’s the simplified version. The only nuance in there is the emotions in what’s going on with that property owner. It is making sure that the best option for them at the time is a cash as-is offer. That’s the whole layout of this thing. If there’s a mystery to wholesaling and finding these opportunities, let me get rid of that mystery. That’s all it is.
It’s all about being consistent. It’s as easy as driving and finding a house that needs some work or pulling a list, you pick up the phone, call the list, and the most important part is following up. Once you finally get that lead, you got to follow up with them. That’s where all of your money is going to come from. I learned that in car sales. Our manager was on us every single day. We have got a CRM there too. They could see exactly how many people we had to follow up with. If we weren’t following up, we’re gone. We learned it from the beginning and it’s true. Ninety percent of these people aren’t just going to say, “I’m ready. Come on over. I’ll sign the contract.”
A lot of these take nurturing. You have got to build relationships with them and be there when they decide to make the decision. You want to be that person at the top of your mind. It is not always calling to say, “Are you ready for your offer?” Sometimes you’re just calling to say, “I have a realtor that I thought you might like. You said you wanted to fix some stuff up. Here’s my painter’s phone number.” You always want to lead with value. It gives you an excuse to call and it keeps them picking up the phone too.
I love that you said that because a lot of people are nervous about lead follow-up. They are worried that they’re going to tell you, “I don’t want to sell anymore.” They don’t pick up or they’ll say that they already sold it to somebody else, and that breaks your heart. You get emotional damage from that. You’re like, “I don’t want to go through that. I’m not going to do this lead follow-up.” The fact is if you’re constantly bringing new people into your world, your pipeline of leads and opportunities, you’re not worried about that one that made the decision that was best for them. You focus on the people that will do business with you. That’s what’s key. There shouldn’t be any fear of lead follow-up. Lead follow-up should be your best friend. That’s where all your income is made.
They’re doing you a favor by saying no. Your job doing follow-up is to disqualify these people. You want to get those junk leads out of there as soon as possible and get to the people that are going to do business with you. I’d rather somebody tell me no and beat it right up front than bring you along for 6 to 8 and then list it on the MLS. I want to talk to the people that I want to do business with.
When you were starting, what lists were you calling?
I started out doing pre-foreclosures and absentee owners. I was trying to go after as much distress as possible since I didn’t have much money, to begin with, and I didn’t know what I was doing. The first two deals that I got, one was an absentee owner and the other one was pre-foreclosure.
That first deal was a tired landlord, somebody that owned the property but they don’t live there. Was it vacant or occupied?
The first deal was the pre-foreclosure, and the second was a tired landlord.
The pre-foreclosure was vacant or occupied?
That was occupied. That was the elderly lady that had to go to a nursing home.
The absentee owner was vacant?
I find that interesting. I look at these properties and it’s 50/50 for us. Fifty percent of the time, they’re occupied by a tenant or the owner. The other half of the time, they’re vacant. With the vacant properties, when somebody moves out of those and they are ready, they are motivated to make a decision quickly. With the owner-occupied or especially the tenant occupied, it takes more time of follow-up for the property owners to have confidence that we can buy their property and help take care of the tenants to move on to another property. Were you working with a lot of tenant-owned properties or owner-occupied properties where you have to build that relationship and trust with the property owners so that they feel comfortable moving forward with the deal?
Start by talking to potential customers and building rapport.
Absolutely, especially when the tenant is paying rent and they’re on time. At that time, it was not a problem for the landlord. They were cashflowing every single month. They’re not in a hurry. A lot of times, they might even want to wait until the lease is up. It’s easier for us when they have a problem and the tenant isn’t paying rent. We can do it when the tenants are involved. I find that the landlords aren’t very motivated when everything is going great.
Sometimes, it’s at that point where they’re done with the property. They’ve owned it forever and squeezed everything that they wanted out of it. They haven’t renovated the property or fixed it up. The tenants are okay but they have had the same monthly rental payment that they have to pay for the last 10 or 15 years or something like that. They are like, “I want to move on.” That’s when we step in. We find a lot of opportunities that way.
They passed rent control in Saint Paul. Minneapolis didn’t pass rent control but they’ve passed the ability to do rent control in the future. It’s in the works. Saint Paul made it where you can only raise the rent 3% a year. We have got a ton of landlord leads because a lot of these guys in Minneapolis and Saint Paul are moving out to the suburbs. Nobody wants to be told how much they can rent their property for.
It’s great advice there. Anybody in that market, you better be calling your tired landlords as soon as possible or no one is going to take all of them. There are too many for you to take all of them. This is a family business for you. Talk to me about that. How does that work out? It’s you and your wife. You are running this thing. Do you have more people on your team? Talk to me about your team and business.
When we first started, my wife was a key part of this business. I wouldn’t be where I am without her. She was right there side by side with me while we were doing cold calling on our lunch breaks. I’d get home for lunch. She’d have a sandwich made, we’d pull up Mojo and start calling together. Since we’ve gotten to the point where we’re doing a few deals a month, she has taken less of a role in the business and focused more on the kids. Everything that I do in this business is for her and my two little boys, Jackson and Charlie. It’s remarkable. It’s given me the ability to spend time with them.
I’m taking them on a trip to Florida and we’re going on a cruise. It’s all things that then we’re able to do because of this business. On the rehab side of things, they love to get involved with that. My wife will pick out the finishes and stuff like that. The kids will get in there with the hammers, drills and they will be in there helping me do demo work and fix stuff. They love that side of it more.
When you found wholesaling on YouTube, you wanted to test it out and try it. What was that conversation like with your wife? Were you both watching videos? Were you both investigating? Was it you being like, “Check this out?” It is a challenge in some relationships where you have got that fire in your belly and you’re like, “I want to try this.” You’ve got somebody that’s very security-based like, “You have a job. You have things going on here. Let’s not rock the boat here.” What was that conversation like?
I’ll tell you the after and before. She thought I was crazy and it was too good to be true. At the time, when I told her, she was 100% supportive and said, “I believe in you. You can do anything you set your mind to. Anything I can do to help, let me know.” She was always there from day one, even though she thought I was crazy. I tried a couple of other things first. I tried Forex trading and being a loan broker. It’s not like I started wholesaling and it was successful. I failed on multiple different things before I finally found something where my skills would work.
No knock to those other income-generating businesses but look at the long-term ability to make incredible income and build your wealth with real estate. This is Wealth Building 101. We don’t know how we find these opportunities until we go out there and have these conversations with property owners that are in distress that want to trade potential equity in their property for speed and convenience. That’s where it starts.
You start your real estate investing business by creating a machine that sources discounted properties, that goes out and tries to find the properties that need the most love in your community and start there. Once you build up and you can do this business full-time, then you are off the chain. You can run, sprint, do this business full-time, put a lot of effort into it, and then you build a business and a machine around it. You then start investing in assets. You start buying these properties, holding them and getting that cashflow. That’s the plan.
With some of these other business opportunities that are out there, how long are they going to be around? What’s going to replace them? What’s going to happen to it? It’s wild. How many people can do that business at the same time? We know in real estate, there are over twelve million vacant single-family houses in the United States. We’ve got a lot of runway in this business. I’m selling everybody on this business because this business has changed my life and Noah’s life. It’s bananas. It’s incredible. I want to scream it from the rooftops, “Don’t waste your time with something else. Get into real estate.” It’s a personal choice. Let’s get into the hot seat here. Let’s break down a deal. I’m going to pull out all the little details on whatever deal you want to talk about. Go for it.
One that comes to mind right off the bat, her name was Mary. It was a deal that we did in Saint Paul. It was in the Mac-Groveland neighborhood, which is an up-and-coming neighborhood. Everybody wants to be there. This was what I was talking about consistency and follow-up. She had been a lead that was in our system for six months before she made the decision. She had some things happen in her life where she shut down, got depressed and stopped paying her bills. I found out later that she had the money to pay her bills. She was depressed and stopped doing everything. It became a hoarder situation where the house was completely trashed and it needed a lot of TLC.
She was in pre-foreclosure. She calls me one day before the Sheriff’s Auction expires. In Minnesota, where you can redeem it six months later. She calls me one day before it’s too late. We were able to get in there. I called the bank and was able to shut it down before they put it under contract. I felt amazing. I get home and get a call from her son. He says, “I don’t know what you did. I don’t know what you said but we’re not selling the house. We need to cancel the contract.” I was shattered. I didn’t know what to do. I said, “I’m trying to help. Your mom’s got a bunch of equity in this house. If you guys don’t do something, you’re going to lose all that money.”
He set up an appointment with me and all of the siblings. I went back to the house and I was in the hot seat. There was the seller and then about seven other people surrounding me. I’m sitting there and they are firing questions one after one. I answered all their questions. I went over all their options. At the end of the day, they still decided to move forward and do business with us. This one had a little bit of meat on the bone. We decided to take it down ourselves. It was my first time partnering with a hard money lender. We got a hard money loan. He looked at the deal and was like, “I’ll fund the whole thing.” He gave us all the money to do the purchase and the rehab. I had $0 out of pocket.
Have you ever worked with him before?
There’s money out in the market?
Yeah. Guess where I found the hard money lender? It was from my title company. They said, “Talk to this guy. He’s doing a ton of business.” I called him up and it was one of the easiest processes I have ever had to do. There are no draw requests. You just send pictures and walk them through. He’ll wire the money into your account the next day. I spent $8,000 cleaning that house, getting all of the stuff out of it. It’s in the middle of winter so you couldn’t put a dumpster on the street. We had to do a 1-800-GOT-JUNK. We went in, rehabbed it, very lightly cosmetic, paint and then I staged it. We listed it on the market. We had something like 50 showings and 8 offers. It ended up going for $50,000 over the asking price.
What list was it on? Was it on a pre-foreclosure list?
Follow-up is to disqualify people. You want to get those junk leads out of there as soon as possible and get to the people that are actually going to do business with you.
Where do you get your pre-foreclosure list?
That one was pulled for PropStream.
Did you then SkipTraced it and called them?
If anybody is not familiar with that language, skip tracing is you upload an address online to batch, SkipTracing.com. They send you back the phone number instantly and you’re able to reach out to that property owner. You called her. Did she answer the first time?
Yeah. I SkipTraced it with Batch. I used my code TTP and got fourteen SkipTracing on there. I called her once a month for six months. I’m just saying hi and she wasn’t ready to do anything. I finally got to that point where she had no choice and had to do something.
In six months, how many times do you think you called her?
In the first week, we probably called there 3 or 4 times. After that, it was about once a month.
It’s over 10 or 12, probably. That’s usually what it is. To everybody out there, that’s 12 to 14 times. You have to call, text message, voicemail or whatever it is, all of them to either get a yes or a no. That’s typical for lead follow-up. In your mind, you don’t think, “I have called this person 3 or 4 times.” Listen to Noah. This is real life.
This was all pre-appointment. Had I seen the house and known the condition it was in, I would have called her twice as much as that. I hadn’t even been to the house until one day before it was going to be sold.
Isn’t that incredible? That’s not uncommon. People wait until the very last moment to make a decision. There was something emotional going on there. There’s something that had stopped her, some depression that had set in. When people are in that situation, they close up. They put themselves into a little cocoon, hideaway, and try to not bring their drama to other people. That usually leads them to make a decision very close to the time when they’re going to lose the property. You got in there. Were you able to postpone the foreclosure?
For everybody, if you have somebody that is in pre-foreclosure and it’s getting close, if you have a purchase contract, you can reach out to whoever is responsible for that auction or reach out to the bank directly and get that postponed. The bank doesn’t want to foreclose. They don’t want to have the liability. They don’t want to have that on their books. Trust me, they will work with you if you communicate effectively with them and show them that you’ve got a valid purchase contract.
If it is a good title company, they’ll do that for you. You give them the purchase agreement and tell them, “We need this thing.” They took care of all of that for me.
What did you buy it for? What did you sell it for? What was your net profit on this deal?
We ended up buying it for $130,000. I had some hard money cost into it for about $20,000, which put us around $150. We put around $20,000 into it.
$8,000 just cleaning it out.
We ended up selling it for $300,000.
What did you net on this?
We netted $104,000.
Believe in yourself. You can do anything you set your mind to.
It all started with pulling a list, getting the pre-foreclosures, calling up, having a conversation, following up 12 to 14 times, having an appointment, signing a contract with that property owner, then having to go back and prove that you can solve this problem in front of seven loved ones, family members. I love that they did that because the worst situation is when it’s going all the way to when it’s about to close or even when it closes and the family doesn’t know about it. Thank goodness that they knew about it early on and you can solve that problem early as opposed to the fist-fight that could happen later. I love that you went there, sat down and didn’t play hardball with them. You didn’t say, “She signed the contract. It’s binding,” and all this other aggressive language.
You don’t need that. You can win with the kindness and empathy that you have for the property owner’s situation and the property owner’s family. You won on every single level there and it was a huge deal. It’s a well-deserved $104,000. We’re talking massive deals with Noah Pruett. That is bananas. When you said $300,000, I got goosebumps. I love this business so much. It’s like that. If you have a kind servant’s heart to go out there and make an impact in the community, you’re going to be paid well to the tune of $770,000 over the last years. As we look back on that, how did it feel? What do the next five years look like?
I feel amazing but I’m still at the beginning of this journey. I’m still even struggling with consistency. In one month, you’ll do four deals or one deal. I want to take it to that next level.
Do you have an acquisition manager?
I don’t. I have tried it. I’ve had two different acquisition managers with whom we are friends and it’s tough.
I would hire a junior acquisition manager. I’d pay him a base of $2,500. I’d give him 3% of the deal. This is what I do in my business. The impact that this has was incredible. All that he does in our business is do lead follow-ups every single day. My main acquisition manager, which will be you, Noah, only starts the conversation and start working with that lead once the timeline is short and they’re ready to go. That’s where you need to spend your time, build the systems, get somebody in there, get somebody with a sales background, some door-to-door sales, get on LinkedIn, look for anybody that’s working for solar companies, pest control or whatever it is in Minnesota.
I don’t know people who go around that are proactive, but it’s somebody that has that and is interested in real estate, somebody that wants to walk in your footsteps and see what’s going on. That’s what you’re looking for. If you get that, that’s going to make a huge impact on your business because then you could get more leads at the top of the funnel. They’re filtering them all. You’re focusing on closing those deals and it’s going to be a huge impact. Let everybody know how to reach out to you. What an incredible story. There are going to be plenty of people that want to squat up, connect and network with you. How do people reach out, even if they just want to say congratulations?
I’m going to give you my phone number. Especially in the Twin Cities, anywhere in Minnesota, I have 12,000 or 13,000 people on the buyer’s list. The best way to reach me is (612) 430-5630. The other best way to reach me if you’re looking to do any kind of private lending or anything like that is on Instagram. That’s @RealNoahPruett.
Reach out to Noah, even if it’s a text or a call. He loves talking to people. Noah, give some advice to anybody starting in this business that’s trying to get their first deal. Give them something that is impact and tactical, something that they can implement in their business right away.
One thing that’s working for us, especially here in Minnesota and I don’t know if Arizona is the same way, but don’t underestimate the power of going to the city for your list. I’m not talking about the county. I’m talking about the city. A lot of people will go to the county, get their pre-foreclosures and all that. Our best list is the water shut-off list. You can go to Minneapolis. That’s one list. I got all the surrounding cities. In each one of these cities, you’re looking at about 1,000 addresses on there. These are lists that people are not pulling. You’re not getting them off of your standard list source.
That’s one thing that I can say, code violations and water shut off. I noticed when I was pulling these code violations, we also do some driving for dollars. Almost all of those driving for dollars houses were already on the code violation list. I went straight to the source. Go straight to the city, pull the code violations list and you can reach a lot more people. Otherwise, be consistent. You got to get those leads coming in and then follow up with those leads as much as you can. If you can do that, you’ll be able to do deals. There’s no magic sauce. You got to be consistent and talk to people.
Congratulations to you and your family, your two boys, Jackson and Charlie. They are incredible. They get to see you in action and swing a hammer. This business is rewarding on every level if you let it be. The next 5, 10 years are going to be bananas for you. I’m excited to watch that, see how you progress, and grow this business into something incredible but get your junior acquisition manager.
Thank you. I wouldn’t be here without you. I appreciate it.
Everybody out there, you can do this business if you focus. That’s my mantra and it should be yours too. If it’s your first twelve months in your real estate business, the word is focus. Focus on ugly properties and big checks. Don’t get bogged down with all the other things, all the incredible other opportunities that you can have in real estate like creative finance, building your portfolio, fixing and flipping, developing the land, and all these other things that you can do. Focus on ugly properties, big checks for your first year, and watch your business blossom, explode and do amazing things for you financially.
If you are interested in joining the most proactive group in real estate investing, it is the TTP family and TTP Coaching Program. Go to WholesalingInc.com/TTP. Check out what it’s all about and everything that you get. Over 100 hours of support calls that you’re going to have access to every step of this process, all lined out for you so that you can skip to the front of the line and be as successful as fast as possible. Go check out all the testimonials and the successes that people have had and keep scrolling. If it feels good in your gut, make sure that you sign up for a call. We look forward to working with you. I look forward to working with you. Congratulations to Noah and his family. What an incredible story. I’d love to share your story sometime too. Go out there. I encourage you as always to go and talk to people. I love you, guys. See you.
- Noah Pruett
- YouTube – Brent Daniels – Real Estate Coach
- Mojo Dialer
- @RealNoahPruett – Instagram
- Be sure to join the Wholesaling Inc Facebook group
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!