Posted on: February 04, 2022
WI 878 | From Faith To Fact

 

People often think real estate is a “get rich quick scheme.” But in reality, it’s the opposite. People doing real estate don’t earn that pot of gold overnight. The business requires consistency and strong faith to attain remarkable results.

It’s a matter of trial and error. There are several ways you can do it, but the thing is, you must know which way works best for you. If you figure out your tactics, then rest assured you’ll secure a spot to financial freedom. Give yourself ample time and grab your earphones because this episode will teach you the highs and lows of the money-making process.

Also, don’t forget to pay this episode forward to everyone who needs it!

From Faith To Fact – The First Land Deal That Netted $19,680.40 In 3 Months

I have a great episode for you. I have got Daniel Morey out of Redmond, Washington on here with me. Before we get into this episode, I have a favor to ask you. I’m sure you have gotten so much value out of this show. Would you please pay that value forward and share this with someone in need, somebody you could think of that would benefit from this content?

I’m sure there’s a mother, brother, sister, friend, colleague or someone that would benefit from hearing this show. Would you please share the show with them? Thank you so much. I appreciate you for doing that from the bottom of my heart. It’s going to mean a lot to them. It means a lot to me and it will help someone else. Now let’s get into this episode.

How are you, Daniel?

I’m doing great.

I’m excited to be talking to you. We have been talking back and forth and strategizing. I have seen you grow since several months ago. You are crushing it out there. Tell me a little bit about yourself, family, wife, kids and job? What are the things looking like for you on your end?

It looks just like that, family, wife, kids, job, and lots of projects going on. I’m a carpenter by trade. I’ve got two teenagers. We live on a five-acre farm in Redmond, Washington. We board about twenty horses. That’s a family business. We are out here in the country. There’s always something to nail together. Between my actual full-time carpentry job and trying to help out around the farm here, squeezing in the real estate studies, and working on my business is always a challenge. What I found with you is that it fits perfectly into my already busy lifestyle. I’m slowly but surely trying to transition more time into marketing and talking to people about real estate.

You live on 5 acres, father, husband, two teenagers, raising horses and carpentry. You have a lot on your plate as well as land. You’ve told me that for many years, you are getting this off the ground. What have the struggles been? What are the successes? Tell me about that story because you mentioned real estate education.

When I was about nineteen, right out of high school, I went to a seminar. I learned about wholesaling.

What seminar was it?

Ponder why you should give a man a fish when you could teach the man to fish.

I don’t even remember the guy but he had a shady element to him. I remember him talking about how he could drive around and find a house. Whether the owner wanted to sell or not, he would figure out a way to buy it.

You are talking about Grant Cardone then?

He was older and shorter than Grant Cardone. I got the concept. The person and the personality would rub me the wrong way, but the concept of wholesaling fell into place. I remember trying to explain it to people around me and it very quickly got stamped out. That was many years ago. It’s always been in the back of my mind. I was a bartender and restaurant manager for years.

Several years ago, I needed to transition out of that to brighter bluer skies. Real estate was always in the back of my mind. I started poking around. I very quickly discovered Wholesaling Inc through guys like Brent Daniels and Max Maxwell. There’s a circle of coaches and it’s an amazing community. That’s just a couple of the names, but all of them always said start listening to the show. I started listening and it was a daily routine. I was well behind on the show, so I had plenty to catch up on. I started from the beginning and started listening.

That was a couple of years ago and I’m sure I’m the poster child for how not to do it. The first thing they say is to pick something and be consistent. I have got that shiny object syndrome and so I picked everything and dabbled a little bit here and there. I put my first bandit sign up about a few years ago. Right out of the gates, I got a call. I went to an appointment. I talked to the owner and engaged.

We did not quite settle on a number but we were close. I was driving down the street and I pulled over and I sent him a text and it said, “Thanks for letting me in your home. I know that I can’t quite come up to your number but my hands are tied. I would move mountains if I could.” I thanked him and kept driving. About 30 seconds later, he said, “We will do it for the number that you are asking.” I did a U-turn and ran back up to the house scrambling. I did not have the right contract. I had 3 or 4 different contracts to pick from. I did not know if any of them would work. I go back into the house and we were sitting at the signing table, and he starts asking me about earnest money.

This is the point where I had no idea what I was doing. I had even brought my personal check. I had a handful of personal checks from the bank when you start your account. I thought that I needed to write him a check for $100 because you hear the whole thing like $10, $1 does not matter. Escrow does not matter but it mattered to this guy. As soon as I started fumbling and telling him that I was about to write him a $100 personal check, it became apparent that I was a bit out of my depth. I watched his energy leave his body and I lost it, but I left that night with the biggest smile on my face.

I was crushed because I had blown this deal up at the signing table back when you could meet people in person. On one level it was crushing but I swear, for the rest of that day, I had a grin ear to ear because I had gotten so close and it worked. Cody Hofheinz did a set of videos way back in the day. I sat there, watched him and followed what he was doing. I even froze the screen and copied his script and used it. I went out and did it. That would be the closest I got to a deal for a couple of years because after that, I started dabbling with mailers next.

I always hear about cold calling and would go in very short bursts trying to do some cold calling. Time, money, and mindset prevented me from buckling down, getting into a groove, and finding that consistency that would produce results. It was a rough couple of years. You create this business and extra pressure on top of all the other pressures that are going on. I spent a lot of time laying in bed next to my wife feeling foolish.

WI 878 | From Faith To Fact

From Faith To Fact: Find that consistency that would ultimately produce results.

 

She has always been supportive and amazing. That’s not coming from her. That’s coming from me. She’s the fool who married me. I was saying, “This is what I’m doing. I’m going to steer some of our needed funds towards this thing that neither of us quite understand at this point.” I spent a lot of time questioning whether or not I was going to be able to continue to justify steering funds towards something that neither of us completely understand or understood at that point. It weighs on you, and what weighed on me more was the fact that I created this.

Nobody in my life was pressuring me to go out and try my hand at a venture like this. It’s almost this beast that you have created that you have to feed now and who knows. My faith in real estate, the process, and the coaches that I have been exposed to were never not there. My belief was always pretty solid. It was that question of whether I was going to be the one that would be able to produce results.

“I see this working for everybody else. I’m hearing all the success. Do I deserve this? Maybe I can’t do it in my market. Maybe I’m not smart enough. I don’t have the right things.” It’s all these things so you are not the only one. I feel like our audience is relating to you so much because we all have these feelings. They creep up even when we are doing well. I love that you are sharing this. I appreciate your vulnerability here.

I even had to take breaks from Wholesaling Inc every once in a while. You would try your hand and things would not go your way. You would get close to a deal and it would fall through. I was hearing the next guy the next day on the show talking about how everything fell into place and it was magical. Sometimes I would have to take 1 or 2 weeks off and listen to a standup comedy or something, but I would always come back. One day you popped up and here we are.

That’s why we do this show. You have no idea who you can encourage on the path with you as well. Let’s get into the successes that you are having. You had reached out around April 2021 and told me about a deal you had going on. You now have a couple of contracts. Talk to me about those deals and contracts. What do you have to do? What are the hurdles you had to jump through to get those?

First things first, after a lot of other trials and no success, you started popping up on the show. You came in to another group that I’m a part of and spoke to us over there. You are on the show and all of a sudden Brent Bowers was here. It was your episode with Tracy Krol, Do or Die Podcast. I took a step back and started listening because the land was pretty new and the idea of not having to spend so much time evaluating houses clicked with me.

I have followed your path to that podcast and all the links in that podcast, whether your offer letter, the fax, the mailer, and I have been using PropStream a little bit. All the links that you’ve provided in that podcast, I’ve put them together one by one, as you said, in that order. I sent out about 1,000 letters. After that 1,000 letters, I decided to try and put out a postcard mailer somewhere else. I had already decided that I have not seen anything. This is embarrassing. This is how it went. I was already on to another mailer but I got an email. I had set up an email along with my fax and phone. It was a guy who did not want my offer but he was close. He said, “Let’s talk,” and so we started talking. It was two 40-acre parcels up in Whatcom County, so up north in Washington.

Were they away from where you live?

From where I am, it’s not too far. It’s about an hour and a half drive.

Turn your faith into a fact. It would change your mindset and business.

Most of my students that do well right out of the gate are within a two-hour radius of where they live. That’s where I started as well back in 2015. For our readers, anybody that’s not familiar with it, I did a twelve-week Do or Die Episode with Tracy Krol. This is Tom Krol’s sister. I walked her through a live podcast. I have never done anything like this before and neither had she. It was intimidating but we got her a deal on a live podcast. She’s gotten a few more. The buyer that bought that piece of land has already paid it off, so it’s cool. If anybody wants to refer back to that, that was the Do or Die Episode with Tracy Krol, the 90-day Do or Die.

Anybody who asked me how it happened, I point them right in that direction. I started talking to this fellow about his property and that clicked. Once again, things are falling into place. I thought, “Maybe it will be a good idea to check my PO box.” It had been about three weeks that this letter had been sitting there.

The United States Postal Service has a free service. They will email you with a scanned copy of what you have in there.

I did end up getting that first deal under contract, the 80 acres in Whatcom County, Washington. We ended up going into a contract but title issues came up on that one. We are still in talks. It’s on the back burner. It’s reservation land. The reservation and the county don’t communicate very well, so things came up and that fell through.

Meanwhile, I get to my PO box and there was a signed letter in there. I had called him up and he signed it at the price that was on the letter and had no concerns. It was a little buffer piece of property that he had when he lived up there to keep his neighbors at a distance. It’s this little buildable lot between two other houses. It’s $3,600 and he signed the paperwork. There were some HOA dues and some back taxes, which is why he was ready to give it up. Those ended up bumping my actual price up to about $5,400 after all was said and done.

We put it out about 45 days. It was on our contract and my due diligence period because from my position, I’m a beginner and I wanted as much time as possible to figure things out. About 30 days or maybe 20 days, I went up there and I put a for-sale sign on the property. I had been trying to reach out to the neighbor. That was my first move. I could not get ahold of them but when I went up and put that sign up there, within 24 hours, I got a call from the neighbor saying, “I want to buy it.” There were builders in the neighborhood building down the street. I knew and he knew because I was also reaching out to those guys, that somebody was going to buy that and build up next to him. He wanted to avoid that.

That’s so funny you say that because when I first started out in the land business, I have had people come to me like, “What about all the land? Do you want to see it all get built on? If you are selling it to people, they are going to build on it.” I have a lot of people buy land for me to stop the building so they can leave it for the deer, turkey and the wild animals to roam, or they want an acre between them and their neighbor. That’s a great point. I see that all the time. That’s awesome.

He reached out to me pretty quick. He was pretty serious. After our conversation, he was ready to pull the trigger so I had someone go on and take my signs down. He was pretty relieved. A few weeks later, we were closing on an almost quarter acre buildable lot up at Sedro-Woolley, Washington, up on your way to the other properties. It is still about 1.5 or 2 hours away like you said and we closed on it. That’s the long and short of it.

He was a little nervous. I signed this contract. At a certain point, he said, “Are you buying and selling it at the same time?” I said, “That’s exactly what I’m doing.” I had a good title company behind me that could explain things to him and calm his nerves. They explained some things to me and helped me through the process.

WI 878 | From Faith To Fact

From Faith To Fact: When the money acts, when the wire transfer actually hits the account, and you can see that balance, that’s very unforgettable as a wholesaler.

 

I liked how you did not try and explain the whole process. You just said, “Exactly.” You kept it simple. You were confident about it and that instills confidence in him. People who are just starting out try and explain the entire process that they don’t completely understand. If you don’t understand it and you are explaining it to someone else, they will not understand it. A confused mind makes no decisions and takes no action. I like how you did that.

I had flashbacks. I’m trying to explain escrow at the signing table to the seller. I was a little more ready this time.

Before we get into what you made for this thing, what you have sold this contract for, and what you signed this contract for, you did it in 30 days almost. You got this property and you sent out 1,000 land offer letters. You have got one that came back, and this guy signed it for $3,600. You are going to have about $5,400 into it after you paid the back taxes and the HOA fees. You did not have a buyers list. Did you have 1,000 buyers waiting for your land? You found a buyer from one sign, is that what you are telling me?

Yes. He called me after I put the sign-up. I did drive around that neighborhood and I mentioned the builders. I left a couple of notes at a couple of different construction sites, just a quick tip. Those guys got back to me. One of them I’m still in communications with. I’m looking for land for him. I found a decent buyer in that area by leaving notes on active construction sites. We were up there on the weekend when nobody was working. I left a note and they got back to me. At the end of the day, I had two serious buyers lined up but I had nothing going into it.

People ask me all the time, “Do I build a buyers list before I start sending out my LOLs?” You could but here’s the thing. Every time you get a parcel of land, you have two objections. The first is to sell that piece of land. The second is not everyone that inquires about that land is going to pull the trigger and purchase it, but they will be interested in the later land like those builders that say, “I’m looking for a quarter-acre on the same street.”

You add that person’s email and phone number, so you get the digits and you are constantly building a buyers list. You are building a waiting list for what you have got to offer. Before you know it, you have got tens of thousands of buyers on every piece of land. What you put out there is going to go very quickly, so it goes faster and faster.

I have got a shortlist at this point but it’s getting bigger every day. I have three more lots under contract and another one that should be coming in. I sent out a contract to get signed. Brent Daniels says it all the time, that faith to fact. That first deal and turning faith into fact has been a huge pivotal change in my business and mindset.

Faith to fact, that’s such a good saying. Let’s give the readers what they want. What have you signed this thing for? What did you make off of this thing? How long was it total from the time you sent out your mail to the time you got that money in your bank account?

From the time I sent out the mail, embarrassingly, it sat there for three weeks. I put out my due diligence and my contract feasibility study. I had that for 45 days.

You could enjoy renovating houses as a long-term goal.

In 90 days, what are we looking at there?

All was well within 90 days, I sent out the mail, got the contract, found the buyer, and signed the contract. The buyer had brought $25,000 to the table. After paying all of the liens and HOA dues, which ended up saving this guy from foreclosure, it turns out, my profit was $19,680.40.

That’s $19,680.40 net profit all in 90 days. Divide that by three months. Does it change your life to make an extra $6,500 a month?

It sure does. I think a lot about giving the man a fish versus teaching a man to fish. That $28,000 represents the ability to go out and continue to pursue life-changing goals. I have to talk about Wholesaling Inc coaches from Tom, Cody to Brent Daniels, Brent Bowers, and the rest of the crew. There is such a community. I want to mention Pace Morby who is a fellow tribe member. He’s a TTP student. When you came into that group which I’m a part of, that thing clicked for me.

The time that it takes to sit down and run the numbers on a single-family residence, even as a carpenter, trying to figure out rehab costs, and all of these little things that take up so much time, land just fit. Seattle is hugely competitive. Getting up and out of Seattle where people are not getting hammered with marketing constantly was the key for me. Taking out the structure element of it is so much simpler. I enjoy carpentry and intend to pursue renovating houses as a long-term goal. In the short-term, just to get this engine started up and running down the road, the land is where it’s at. I could not be happier at the turn that my journey has taken.

I want to get into something even more important. It’s not about land, mailers or LOLs. It’s about how did you feel. You mentioned laying in bed with your wife thinking about, “I got into this. I’m not successful,” and having those limiting doubts. I don’t even want to imagine what went through your mind at midnight some nights because that happens to us. We are tired. We are doubting everything. We are doubting ourselves.

We wake up the next morning, get out of bed, and we feel better. How did it feel walking into the house that night with that check for $19,680.40 and you know it to the penny? How did that feel showing your wife, “This is real. I made it happen. I did this. You stuck with me. Thank you for having faith in me.” I want to know about the celebration. Did you go out to dinner? What did you do to celebrate that type of thing? How did that feel and what did you do to celebrate?

It’s hard to describe. My wife was not bawling or anything, but there were tears. It was a long road and we both knew it was coming. We would come close a handful of times and so we both knew that it was in the stars, but when faith becomes fact, those little questions in the back of your mind and doubts have been squashed and those questions have been answered. This is real and it’s viable. It’s a part of our life and future now. It was an emotional day.

When the wire transfer hits the account and you show her that balance, it was unforgettable. What did we do to celebrate? We paid off some stuff first and foremost. We tightened up our budget and paid down some debts, but I don’t think that counts as a celebration. I kept it pretty modest. I wanted to buy a jet ski. We live in the land of lakes and rivers but nothing crazy. I’m being patient. I have successfully avoided that impulse buy, but I did get a new chop saw. I bought a couple of nice tools. That was beautiful. That’s my celebration.

WI 878 | From Faith To Fact

From Faith To Fact: Redundancy is boring, but sometimes boring is good. Boring is what we need. We need to hear things multiple times to actually digest them well.

 

You and your wife have kept the faith. At the end of the day, that’s worth more than money. You have proof of concept. You have done it once. You have three more under contract. I want you to go out and lookup for the greatest jet ski there is, and put two huge posters on the wall. You should get two jet skis, one for you and one for your wife. What would that cost, $9,000 a piece?

On the high-end brand, you can spend $15,000 to $20,000 per jet ski.

We want two $20,000 jet skis. You did a net profit of $19,000 on your first deal. Imagine if you had a buyers list. Now you can have a bidding war. You get this shark swimming in the water and now they are driving it up, and you get $50,000 for the next $3,600 piece of land. I want you to find the $20,000 jet skis and put two of them on your wall right in front of your computer. When you are sending your LOL and you hear about another marketing strategy or someone else is doing something with pay per click or clickbait, throw that out the window until you perfect your LOLs.

Get your LOLs going out consistently every single week. Whether you are chopping wood on the chop saw or you are on vacation riding your jet ski or riding your second jet ski because the first one got boring. Put that on your wall, so you work towards that and set up that marketing strategy to go out consistently.

I have coached hundreds of people and I see the things that they are doing to be successful. They are automating their mailing or LOLs and going out consistently. Number two, they are within about a two-hour timeframe. Number three, they are sticking with their county. They are not having analysis paralysis and shiny objects. They are sticking to the one thing that’s working. They are perfecting, automating, delegating and dominating their area. Keep that in mind. I’ll see you on a jet ski very soon.

I appreciate it. I will have to get some posters and put them up.

You could go to the dealership and say, “I’m thinking about buying that one, you got any posters of it?” They will probably give you one for free. You got to have some fun things too. Some people want a car, pay off their house, send their two teenagers to college, or whatever it is.

Travel is in our future. My wife and I have both been raising kids for quite some time now. For the many years that we have been together, we have left the state of Washington only a couple of times. We have some big travel plans down the road as well. One step at a time. Let’s get this dialed in and see where things go because it’s going to be exciting regardless.

We have given a lot of value to the readers. Thank you so much, Daniel, for getting on here with me. If you could go back a couple of years ago when Daniel Morey started getting into education and paying money for mentors if you can give yourself any advice, what would that be?

Find something that works for you and stick with that.

It might be redundant but it’s consistency. It takes some time to figure out what fits in with your life and lifestyle. It did for me because each one of us has different challenges. There is an answer for you. There is a situation that will work for you. If one thing does not work, find what does and then go for it, and stick to it. The sky is the limit. I can’t thank you enough. This is what clicked for me. I have been sending out 200 letters a week ever since, and things keep coming down the pipeline. Find what works and stick to it.

Redundancy is boring but sometimes boring is good and what we need. We need to hear things multiple times. Consistency, I love that. Thank you so much for all that you shared. You are going to help some people. It’s going to help a lot of people. Thanks for jumping on with me on the show.

No problem. Thank you for having me. It’s a trip to be here. After listening for so long, it’s an honor. I’m so glad you made it happen.

It’s an honor to be here with you. If you’re looking to get started in land and you think that it might be right for you, go ahead. Head on over to TheLandSharks.com or WholesalingInc.com/land. Book a call. See if this is right for you and if we can help you with your goals. I would be honored to coach you. Thank you so much, Daniel. Talk to you later.

Thanks.

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