You won’t believe this, but a clever wholesaler garnered $51,504 from just a $3 certified letter!
Productivity apps aren’t necessary when you yourself have the drive to stay focused. The key to every success is taking action, and McKlane Bobbitt is in the show today to prove to you a point. Let’s have a glimpse of how this fellow Landshark climbed his way up the ladder to generate wins and achieve success.
Case Study – How One Savvy Wholesaler Generated $51,504 Off A $3 Certified Letter With McKlane Bobbitt
I got a great episode for you. This guy is crushing it in his land business. He is going to share with you a unique way that he did a home run deal like a grand slam, how he did it, and how he found this seller. This seller was living in his car at the time. They ended up having to call the ex-wife from twenty years ago. You are going to get a great treat here. McKlane Bobbitt, I have been waiting for a long time to interview you. How are you?
I’m doing good. I get my morning routines in. I’m already done with that for the day. I will rock and roll this day.
Where have you been? We were talking about the show right before this. You got to say that again for the audience.
Before you hit the record button, you asked me, “Have you ever looked up the Wholesaling Inc. podcast?” I was like, “Yes.” I used to live off of that whenever I was working my W2, trying to get my first wholesale deal because I had an hour drive every day. I lived off Wholesaling Inc. for years, just constantly learning information like, “These guys are in my area. If they can do it, I can do it.”
That’s so inspiring. You also shared something about what you were going after when you were listening to Wholesaling Inc.
A few years ago, there was a group of guys out of Dallas. They were talking about infill lots. I was like, “What is this?” I was only looking for houses, and you get what you go looking for. If you are only looking for houses, that is all you are looking for. I heard one of the towns they have mentioned. It was near me. They were like, “We made $30,000 on four lots.” I was like, “Are you kidding me? I drive by that area all the time. I’m leaving the money on the table.” That got me into the infill lots. It led me to refine my processes, come to you, and make it where we were focusing on land.
I like what you said there, “You get what you go looking for.” I wrote that down. That is powerful. We got to talk about that. I want to talk to you about land but that is powerful. You get what you focus on or what you are looking for. I bought this black truck, one of those new black Chevys. I did not even know what the Trail Boss was. Now that I have got one of these things, I’m like, “These things are everywhere.” I guess my mind is looking for them now. I’m sure they were everywhere before I bought one. Is that the same experience for you?
Whenever I started seeing bigger deals, everyone sees $5,000 to $10,000 wholesale deals. You’re trying to meet your goals. Until you sit down and go, “I’m only looking for this. I’m going to go get this.” I wanted to be out of Corporate America. I was like, “I’m only going to focus on this and I’m going to find the guys who are where I want to be.” It is the same thing for my bigger deals. There was a point when I couldn’t get a $10,000 assignment. It was like, “I’m looking for a $50,000 deal,” and it was three of them back to back. I was like, “This is possible.”
I remember doing a phone call with you, and you told me that. You started looking for $50,000 deals and here they are. That is powerful. Are you still doing anything with houses or is it focused only on land?
The bread and butter of wholesaling is cold calling. At the end of the day, you are going to have to get on the phone.
We came across a good deal in December for a house. I do a flip a year just to remind me not to do houses again like a full remodel. If you ask my wife, she will be like, “He does not need to be flipping houses. He needs to go back to just focusing on land.” We have changed our marketing where we are focusing more on land. Before, it was 50/50 and whatever came our way. Now it is 75% land, 25% houses. If we come across the screaming house deal, I will take it down. My wife is like, “Do not touch another house.”
You got to stop bringing those conversations to the dinner table. If I complain about something for too long, my wife is like, “Why are you doing it? Let’s get rid of it.” “Because it is not selling.” “Sell it anyway.” I love that our wives are sometimes our sounding board, but you got to be careful about sounding too much to that board because sometimes the board will bounce one right back at you like, “What? I should have thought about that.” It sounds like you’re casting a huge net. You are catching all the good deals coming in and figuring out how to dispo them.
A disposition has been a learning process for me because I’m good on the acquisition side, finding deals, and underwriting. I had partnered up with one of the guys that learned how to wholesale from Wholesaling Inc. I’m like, “You have your disposition process. You helped me on this part.” I hate going and building the buyers list, everything like that, and going into new areas. I’m like, “Let me go find a deal and you offload it for me.”
You have told us a little bit about where you have been. What are things looking like now for you?
Operationally wise, I got an office. I got a junior acquisition and a part-time acquisitions guy. We are trying to get him over full-time. We got two VAs over in the Philippines. It is a pretty lean operation. We are marking overheads probably under $500 to $600 a month in marking because we just do cold calling. I have not done any mass SMS with all the regulations and everything. Our bread and butter is cold calling. At the end of the day, you are going to have to get on the phone. We rarely send out letters too.
How can you miss something as golden as sending out letters?
I don’t care if he can be in India. That is who goes through every one of my letters and prices it out. We show them how to figure out exactly what the land’s worth by the acreage and how to send the letter. Can your next hire please be someone that sends those letters out for you? I want you to compare them, split test them or AB test them, whatever you got to do. Focus on three different metrics, how much you send, how much you spend, and how much you make. I want you to compare those side by side to see where that goes.
It is funny you mentioned that because I was moving some boxes and I found a box of envelopes. I was like, “I will use these later.” I’m tossing this on the side. I was walking out the door with them. I was like, “I don’t need those yet.”
Cold calling works for land. I do not do it with my company because it is a lot of management. I had three cold callers at one time, which is nothing compared to some people’s operations. I’m in the lifestyle business. I want these letters to go out. My marketing director is on vacation now. Elisia over at Supercharged Offers still sent my letters. We are not sending all the time. We average about 500 a week. It is passive. At the end of the day, I want the mail to go out, whether I’m dead or alive.
I did not realize we were jumping on here to do a coaching call but let’s cave with the show. I digressed a little bit. You were telling me a story over on Facebook. I’m super fascinated with it. I want to say that I have never heard of anybody else doing it. It sounds basic. However, it is brilliant because I think there are two types of genius in this world. There is like Einstein’s E=MC2, and then there are guys that keep it simple. They see the simplicity of things and act on it. That is more of my thing. I’m not calling myself a genius. I just say I love simple things. Can you explain what you are talking to me about over on Facebook? The whole deal.
I was telling you about the deal and I spent less than $5 to get this deal. We normally target specific stuff. Messy title issues are something we come across very common for land. We target specific stuff like tax-delinquent with code violations. I had stacked this list, pulled it, and I was looking through it. I normally know my areas pretty well.
We were very hyper-focused and I was like, “This guy owns five properties on the same street. He is eighteen years behind on taxes. Let me dig a little further.” I saw he had liens going back all the way to 2000. He is not doing anything with it. I try to cold call him. I was like, “Let’s cold call him. You Skip Genie. Pull up the county records.” His home address was across the street. I was like, “I’m going to go door knock this guy. This is too good of a deal for me to let slide by.” I did this on the same day. I was like, “I’m finding this guy. I’m going to go door knock his house and kick in the door if I need to.” I went to the house and I showed up.
That’s like rhinoceros determination in you right there, just charging.
I showed up and it’s like, “He sold us his house 20, 15 years ago. We have not heard from him since.” I was like, “We got to find this guy.” I reached out to a friend of mine who has TLO. She could not get to any of the phone numbers but there was a new address. I was like, “Okay.”
I also came to find out that this gentleman had three other brothers. They all had the same name, just different initials and middle names. I shot in the dark and said, “I’m going to go send a letter.” I went to the post office and said, “I need a certified letter. I need to make sure that they sign for it whenever they get it. I need the receipt back.”
I sent that off on Wednesday. Monday afternoon, I got a text, “This is James. You sent a letter to my brother. It is about my five properties on this street. I’m ready to sell.” I was like, “This is a miracle. Let’s run with this.” I have the text still where he was like, “I’m ready to sell.” We did not mention anything about the price. I said, “What is your email?” I remember vividly because I sent him the contract. I was on my way to my in-laws and it was ten minutes to get to their house. By the time I pulled into their driveway, it was a DocuSign. I was like, “Are you kidding me?” I locked these up for $7,500 each, all five on the same street, all beside each other.
I texted the gentleman. I was like, “Do you know about the property?” He was like, “I’m 15 years behind on taxes. I do not have the money. I know there are fines. I do not have the money for that. I barely have enough money for my phone or to keep the utilities on.” I was like, “This is found money for you.” The guy ended up owing $27,000 in liens between the five properties and $18,000 on taxes. He was like, “I do not have the money for that. If I make anything off it, I’m happy.” I locked them up and send them over. Our work was pretty clear and I assigned those five lots for $105,000.
If it is cold calling or working after your 9:00 to 5:00, you have to do whatever it takes when you have people counting on you.
I’m over here doing math. I got the calculator coming out. You assign them for $105,000. You bought them for $37,500, so $7,500 times 5. What did the numbers look like on that? What did the net profit look like on that?
We covered his taxes. He made $7,500. Between the taxes, the liens and the difference there on the assignment, we ended up netting $51,504 off a $3 certified letter, so mailing works.
I can’t hate on you too much because at least you are mailing. How often are you mailing these certified letters? I hope every day now. Four dollars a day will keep the bill collectors away for you.
I will be honest. We have been cold call heavy, which I’m kicking myself whenever I go back and I have that check hanging in my office at my house. I’m like, “You are leaving money on the table mailing.” I’m the guy who was like, “Let’s go find this deal now. Let’s cold call them now. How can we get in touch with them now?” If anything, that is a key moment right there for me to take action on mailing more consistently.
I will do some more math. I’m going to take $51,504 in profit. I’m no mathematician but I’m going to divide that by how much did you spend on that certified letter?
$3.20 plus your gas to get there. It is $5 a gallon now. Unless you have a diesel truck, it is even more. Let’s say it costs you $3.20 plus the $10 to get there. How much time did it take you to do that?
Probably 30 minutes of drive time to the property where his house was and back. I sent the letter the same day. Maybe two hours combined.
You pretty much made $25,000 an hour to mail. I like to break it down to be simple like that because many people are afraid to mail. Not you. You got a cold calling operation. If you can cold call, that is serious rhino stuff right there. I do not even teach cold calling because that is scary. I do not want to get beat up on the phone.
That is why I mail people. They do not know where I live and who my voice is. Sometimes they yell at me over the mail, and they tell me it’s a garbage offer. We say, “Our calculation was off. What would you take?” That happens all the time and we make a profit. Many people are afraid to invest in themselves and in their businesses with something that is going to serve them, their families and eventually others. You are living proof of taking the time to do the little extra work.
If you do not have a friend like McKlane that has TLO, that stuff is expensive to have. You have BatchLeads.io. If you use my link TLS, you are going to get a lot of records that you could search for free and they are awesome. They work. That is BatchLeads.io/tls or go out there like McKlane and network and find someone who has got TLO. BatchLeads is easier because I can do it at 4:00 AM in my underwear. I guess you could call your friends at 4:00 AM in your underwear as well.
Do you have any other advice for the audience? I know that you are a seasoned business owner. You guys are doing all the right things. What would you say to those just starting out that maybe do not have a cold calling operation or they are thinking about getting started, they are not sure what to say, or maybe their wife or husband does not agree with it. What advice would you have for that person?
I was in that situation. When I first started, we were newly married. We barely had any money and I heard this thing called wholesaling. I told my wife, “I’m going to go try and do this.” I was driving an hour to work every day, working eight hours, and we did not have any money to spare. I was DoorDashing and Ubering to make $50 a month for marketing. For seven months, my wife said, “This is stupid. You are wasting your time. You are driving on weekends looking at properties. This is dumb. It is not worth it.” Seven months later, I got my first deal closed. I got my second deal right after that like ten days later. She saw that first check and she was like, “Go do it again.”
This is my favorite part right here. If I could tell anybody who is starting out, look at your family, whether it is your kids, your wife or whoever you got, and go do what you need to do for that day. If it is making the cold calls, if it is working after your 9:00 to 5:00, do whatever it takes because they are counting on you.
My wife and I had fertility issues. I remember sitting in the doctor’s office. They were like, “You are going to have to do in vitro.” That is expensive. That is $25,000 for a 50/50 shot. My wife was crying. She was like, “We will never be able to afford that.” That was my turning point. I was like, “I’m going all-in on this or this is not happening.” That’s when I started getting my deals consistently. I was starting to see $30,000 deals or $10,000 deals. I was like, “If I stay in my corporate job, I’m losing money. I’m doing my family a disservice. I’m going all in.”
We have a lot of Wholesaling Inc. Land Sharks students that I will get calls. It is like, “I got to go on this mission. I got to go to the field.” We have a lot of military in the Land Sharks course. They say, “I’m losing money.” I’m like, “The military is still paying you.” That is powerful. That is a huge why. No wonder why you are successful.
When I first started, I used to tell myself, “If you can’t go and tell yourself in the mirror that you did everything for that day, you are letting yourself down.”
There are some days when I feel like I could have done more. That is powerful. I’m going to write that down.
If someone wants to take it up a step further, go tell that to your wife or your kids. See how many days that last. You are like, “We are getting this done today.”
You do not need those productivity apps, get Facebook off your phone, turn the chime off on your email or silence your phone when you have got that accountability riding on your shoulders. You are not going to screw around. If you are reading this, I’m hoping you are reflecting on this because if you did what McKlane has said one day a week, that is beyond. You will be way more productive and probably in the 1% of the 1%. Once a week, try that. I’m going to put that as a goal on my shoulders.
You look like you workout. What do they say about that last rep? You always got 3 or 4 more in you, and you do not even realize it unless someone is pushing you there. They are there to pull it off your neck if you drop it. You can usually go 3, 4 or 5 more times. It is the last rep that you grow. There is a book called Acres of Diamonds. He was right there, just go a little further type of thing.
If you know someone that needs to hear what McKlane is saying, please share this episode with them, brother-in-law, sister-in-law, that friend that needs that kick over the ledge. Share this episode with someone in need. If you have not done so already, please rate and review us. The algorithms love that. That allows us to expand our message and find more people like McKlane that can inspire you as he did here. Thank you so much, McKlane, for jumping on. Any last parting words of wisdom that you have so much of?
If I could part with a simple message, it would be, do not focus on the big stuff, focus on what you can do right now, today.
Where can people find out more about you as well as get in touch with you?
You can find me on Facebook. It is McKlane Bobbitt. Find me on Facebook and Instagram. It’s the same handle, McKlane.Bobbitt, and shoot me a message. Sometimes it takes me a day to get back to everybody because I have 30 to 40 messages. Those are the best two places to get ahold of me.
If you are interested in seeing if land is a fit for you, head on over to WholesalingInc.com/land. Schedule a call with us and the Wholesaling Inc. team will see what your goals are. If we feel like you are a great fit, I would be honored to coach you. Thanks so much for jumping on, McKlane.
Thank you for having me.
- McKlane Bobbitt – Facebook
- Acres of Diamonds
- McKlane.Bobbitt – Instagram
- The Landsharks Program
- Be sure to join the Wholesaling Inc Facebook group
About Brent Bowers
Brent 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.