Posted on: July 07, 2022
WI 989 | Newbie Investor

 

Our guest today, Dave King, spoke with thousands of property owners before closing his first deal. He had several false real estate starts and dealt with many setbacks before closing his first deal. TTP member Dave King joins Brent Daniels to speak about his journey and how he overcame early struggles by creating systems that worked for him. Today Dave has a robust pipeline of deals and serves as motivation for any struggling newcomers looking for inspiration.

To access the same community and coaching Dave received, consider applying for our TTP program. We’re running a very special 4th of July discount until July 7th, so don’t miss out.

How This Struggling Newbie Investor Turned It Around – And You Can Too With Dave King

Episode Transcription

I want to tell you about our very special Independence Day discount. This is a very special discount happening from the time you’re reading this to 12:00 AM, July 7th, 2022. This discount is going to apply to any of our coaching courses or programs. Go ahead and pull the trigger. I want you to go to WholesalingInc.com, fill out the form and schedule the call. If we like what you have to say, we might even invite you to the tribe. Here’s the thing. It’s going to be at a discount for the Independence Day special. Do it. Head on over to WholesalingInc.com. Go ahead and schedule that call and join the tribe for the discount. We’ll see you soon.

Let’s talk about circumstances. Let’s talk about when you go out there and you’re being proactive in reaching out to distressed property owners. I’m talking about the ugliest properties on the street in your community. You’re having conversations with these property owners but something isn’t happening. It’s not connecting.

You’re talking to a lot of people but that hot deal that you always hear about on this show, other shows, on YouTube, at Meetups, from your friends or heroes in this business is not popping for you. You have an option of your responses. What is your response going to be here? That’s the interesting thing because between circumstance and response is choice. You have a choice on how you’re going to respond.

Are you going to let all of the rejection, work or the people telling you that maybe this isn’t the right thing for you or maybe you should try out this other thing? Are you going to stick to the plan and stay consistent? It’s extremely challenging because when we get started in this business, we have this blissful ignorance. We don’t know what can be accomplished and what it’s going to take. All of a sudden, we get into it and then we realize what it’s going to take. A lot of people step away at this point but not the man that I’m interviewing and having a conversation with on this episode.

This guy talked to thousands of property owners before he closed his first deal and tasted the fact that he could close a deal and bring in income for himself and his family. He made the efforts that he was making every single day, calling upon these ugly houses and asking them if they would consider an offer. In Riverside, California, it is my pleasure to introduce Dave King to the show.

What’s going on? How’s everybody doing?

I’m excited since you came by my office in September 2021. We’re not too far away, Phoenix and Riverside. You were getting into it. It was your first month and you were sinking your teeth into it. You were ready to take action. You were already in the process of pulling your lists, getting the phone numbers and making some calls. You kept going. Tell me what that process looked like. Tell me what your first six months in this business look like because it’s important to get perspective for everybody.

In my first six months, I had a lot of trial and error in figuring out what the business is or the nature of the beast. My main thing was going back and figuring out what my schedule should be. It was calling from 9:00 AM to 12:00 PM, going out and driving for dollars between 12:00 PM and 3:00 PM. I’d come back and do follow-ups every day between usually 3:00 PM to 5:00 PM or 3:00 PM to 6:00 PM. Throughout all of that after the first six months, I was able to find some traction and get a deal done. Those were tireless nights, waking up and wondering what was going on with the sellers and why a lot of the deals that were almost at the finish point didn’t work. The list goes on and on but I was able to figure it out.

I was looking back through all of our past texts and it was like, “Check out this deal.” True to form, you were there. Some leads couldn’t get past the finish line. What do you think was happening there? Educate everybody. Maybe they’re going through this. Maybe they are heartbroken because something fell out or somebody else swooped in and got the deal. Talk about some of those reasons why they didn’t get closed if you can go back that far.

I had deals. For example, I had a seller who chose at the last minute to go with the real estate agent. $340,000 was what I was willing to offer them for a property that he was able to end up selling on the market for $515,000. He entertained the offer at the time because he was moving to Tennessee where he’s from. He had a son that was 40 years old that still lives with him. He was trying to figure out what to do with him before he could move back to Tennessee. He was like, “I need to get this thing sold.” I was telling him, “We can do it.” I had an interested buyer. I was like, “We’ll do it within 2 to 3 days.”

After speaking with him, Christmas happened. I still remember because you were telling me at the time, “Keep pushing. We have until about December the 16th to get those deals in.” He was like, “I’m going to do it with the real estate agent.” That was one deal. I had a situation where I came out and looked at a property. The seller and his wife were thinking to move to Texas. It was a great deal. I was able to get the numbers close to what they wanted. At the last minute, they were like, “We don’t want to sell the house after all. We’re going to stay.” That took about 30 to 40 days to figure that out. I kept moving. I wasn’t sitting on these deals and trying to figure out how I can close each one of them.

What was going through your head when you’re going like, “I’m talking to people for three hours a day and getting these opportunities but they’re not closing. I’m not bringing in income.” Did you want to quit? Were you looking around for maybe some other opportunities? Did you stay laser-focused? Mentally, what was going through your head?

Stay consistent. Stay optimistic. Push through and get it done.

I knew it worked. I’m in TTP so having spoken with other people, it is working. People are closing deals in our group meetings. I got to a place of, “What do I need to do more of? What can I X out? How can I laser-focus in on certain things or money-making activities?” After a certain amount of time, I was talking to my family not necessarily about the business but like, “This is where I am with everything.” My mom invested a little money into the mentorship with me and everything. I knew I would be able to get it back. I since then paid her back. At the time, you want to give those progress updates like, “This is what’s going on.” I knew that it was not something that I was going to quit.

What were you doing before you got into real estate? What’s your background? How’d you find it?

I found wholesaling in 2016, believe it or not. It was not a mentorship but Cody Sperber, the Clever Investor, had a 30-day Get Your First Deal Done situation. I wasn’t able to get traction at the time because there wasn’t a lot of technology. If you were driving for dollars, you’d have to write the information down. I wasn’t as committed. I had a job at the time.

To give you my background before entering real estate, this time, I was working for Caltrans, which is highway maintenance. It was good. The money paid the bills but ever since having tried real estate, I knew it was something that I wanted to come back to. Based on philosophy, I’m not someone that I want to work for someone for the rest of my life. I know you can’t pass that on to your kids. You have to be able to build something, pick yourself up for the bootstraps and figure out your lane in whatever industry you’re going to be in. This was something that I knew you didn’t necessarily have to be the smartest person to do real estate.

I love that you say that because a lot of people talk about legacy and they’re like, “I’m going to leave this big portfolio of properties and all these connections that I have.” What you are leaving is an example. What is the model that they are going to look at and say, “This is somebody that has control of their life and schedule. They don’t have a boss. They’re doing their thing?” That’s the legacy. You hit it right on the head. It’s incredible. I have goosebumps because that’s the truth.

If you’re going to always be an employee, that’s what your kids are going to see and that’s fine if you’re fine with that. People with us have different brains. We don’t want to be a cog in somebody else’s wheel. We want to have control. Most of the people, if not all the people reading this, want that same kind of control or they wouldn’t be reading. Think about it. Are you setting the model for your kids in the future? That’s huge. I love that. You got out of that job and got into real estate. I remember they tried to pull you back into it.

Yes, because it’s intermittent. You go in for a season, six months or so at a time. They’re like, “We’re going to need anybody. Can you come back?” I had been in that job previously. This was the third time that I was going to work there. I know a lot of people get to a place where they’re like, “I’m running out of money.” It wasn’t that. It’s that I have a son and I felt as though it wouldn’t be responsible to use my savings on investing, especially since it wasn’t getting traction that quickly. That’s why I was willing to try new dollars and do these different things because I was willing to do something different to try to get a different result.

WI 994 | First Deals

Newbie Investor: You don’t necessarily have to be the smartest person to do real estate.

 

You were using Batch Dialer. It wasn’t working for you so you switched over to CallTools. Not only that but you switched from Riverside over to Florida. Where in Florida did you go?

Belleview, Gainesville area and Ocala. It was in Midwest, Florida.

As soon as you started in Florida, how did it go?

As soon as I started in Florida, I got a list from Moran. I dialed with that list. Every single day I woke up except Sundays, I was dialing out and talking to sellers. I was able to get a lot of leads quickly and sort through who was going to sell and who wasn’t. I got to a seller who at the time was going through a family probate situation. I met him at the right time. We got to a place where we were talking about the property. I understood his situation. He had previously, in the last couple of months before he sold the property to us, talk to other buyers. It wasn’t the right timing. The time that I met him was a time after the probate situation was coming to an end. I was able to close the deal with him by creating rapport.

Let me ask you this. Whenever somebody asks me about changing lists or they’re taking a lot of action but not getting a lot of traction, I look at three main things, which are skills, data and lists. Skills are how are you at communicating on the phone? What is your tone? What is your pacing? What words are you using? I look at that first because I want to see when you make a connection, are you able to get past the first five seconds? The first 5 seconds will get you the next 30 seconds when you’re talking to somebody new or a stranger about their property. That’s the first thing.

The second part is the data. Do you have the right phone number for these properties? Are you talking to enough people to find and build a lot of opportunities or a lead pipeline? The third part is the lists. Are you calling people? Are they constantly rejecting and saying no? Do they want retail or are they open to it? What do you think it was going from Riverside into the middle of Florida and having so much more and better conversations?

I would say from my experience talking to other wholesalers in California versus Florida in different things, there are a lot more people in California. A lot more people are buying in California. It’s tougher to find deals. It’s not necessarily that you can’t find a deal. You can get a deal but you got to dig deeper.

Live today. Do the work today.

I’ve heard you on the phone. You are excellent. You’re getting the right data because you’re connecting with a lot of the property owners. I’m assuming it’s the last part, which is who you are targeting or going after. I’m not going through this exercise for you. You understand all this. For everybody in the audience that’s reading, if you’re getting stuck in these situations but you still have the fire in your belly and know that it’s going to work as Dave did, you got to look at those three things. Is it your skills? Is it your phone numbers or the data? Is it the list? Is it the target that you’re going after? You can then start tweaking those things.

If you’re like, “I feel confident on the phone. I’m bringing a lot of kindness and optimism to them so that’s good. I’m talking to the right people but I’m not just getting leads,” it’s the lists. The list comes down to a lot of different things. If you’re in a market like California or specifically Riverside, you have to get niche-y with your cash buyers and what they’re looking for and then almost reverse engineer it to find the right opportunities. It’s not as much as a list that everybody can use in every market. You got to go niche-y. In Florida, it’s different. You went to Florida and got the list.

I’m talking about pulling lists. Driving for dollars is the best list. I heard this 1,000 times or you get an FU as soon as you do your spiel. In Florida, I didn’t have that. I feel like every person was touched. There was some type of marketing like, “Will you sell your house?” It’s harder for them because of the margins. That’s another thing. The margin here is $60,000 to $70,000 a deal. In Florida, the deal that I closed, which I’m 100% grateful for, is $16,000. It’s different.

Let’s go back over that. You went and got this deal locked up for how much?

$58,500.

You’re in a new market so it’s time to squad up with somebody that has buyers in that market. What did you do? Who’d you squat up with?

I teamed up with Moran. We were supposed to close the deal at the time. He had a lot on his plate and when he looked at it, he didn’t see that it was enough room. What ended up happening was I met someone out of Pace Morby’s group, sub-to on Facebook. I put out, “I have this property in the so-and-so area. I’m looking for buyers.”

WI 989 | Newbie Investor

Newbie Investor: Find these opportunities and learn what to do with them. That’s it. Just recognize potential in these properties. That’s how you level up in the real estate game.

 

They connected me with someone like, “This guy is the expert in that area,” which is David Mark. We got to know each other quickly. That wasn’t the first deal I sent him. I sent him another deal. This deal was right after because I met the person within the same week. I was like, “That first deal didn’t work.” He was like, “It’s all right.” I was like, “I got this one.” This is the one that we ended up closing. We got a buyer within two weeks.

Is that his main market?

It is.

This is a big thing. Moran does deals all over the country. He’s seeing everything everywhere. If at first, you’re bringing it to somebody that has buyers all over the place, even if they pass on it, make sure that you go to somebody that is market-specific. There’s going to be a little bit of nuance of what their buyers will pay for them in that market and that’s exactly what happened here.

I brought it to him. He looked at it and sent it out to a bunch of people in our groups. I’ve met a lot of people so I sent it out to a lot of people. They gave me what they thought. From that, I compared it to someone who’s out in the actual market. He was like, “There is a lot more room on this thing.” When we sat down, I pulled my comps and then showed him what I had. He pulled his comps and he showed me what he had. We contrasted and came to a place where we were like, “We can do something with this.” I forget what software he used but he blasted it out to his buyers. They came back and agreed to what we said number-wise like, “We’ll give you this for it.”

From there, the next thing was talking back to the seller and seeing this thing is for real. He was telling me that the whole time, “If there’s any point where you’re not comfortable and you want to back out, you can back out. I can always go back to the last buyers.” I told him, “It’s not going to happen. We’re going to make sure we figure out a solution for it.” After going back and forth, we got to the 58th FI. We were able to talk to the seller and in between there, we made $16,500 off of it.

You split it 50/50 but you made $16,500. Congratulations. You battled a lot. You told me you made 25,000 dials and had 3,000 conversations. You stuck with it and made some adjustments. You change which dialer you used and which market you were going after and you made $16,500. That’s what happens when that circumstance pops up. Instead of responding by hiding, running away or changing tracks, you made the choice to stay with it.

You stayed consistent, positive and optimistic. You pushed through and got it done. That is so powerful. Not only that but you did that early in your business and stuck it out. That first 6 months to 1 year is a whirlwind. You are in a tornado. You’re learning new things, meeting new people, going into different situations and into houses that you would never go into regularly because they’re boarded up or falling apart or they’ve got people that are closed off in there. You did it. You pushed through these first six months. You’ve seen light and you’re pushing. How is your pipeline of leads?

Comparison is the thief of joy. Don’t let it attack your joy.

It’s robust. I always heard this from our meetings with people. You get to a place where once you get the deal, the flood gates open where you’re like, “I could see the concept. It worked. How many times can I do this? For how long can I do this?” I’m at that place. I’m creating systems. Some of the things I want to start touching base with you on. I feel more comfortable sharing on YouTube and starting to do different things. I feel like there’s a place where if you are trying things, you don’t want to necessarily bring it out until you have a finished product. That’s where I am. I’m going to start documenting more.

It’s the classic where when you have faith, the fact changes it. Once you have the fact, it opens everything up. It’s like Roger Bannister running under the four-minute mile. They ran the mile for 2,000 years until somebody finally ran it under 4 minutes. That’s the average. You have a Roger Bannister in your brain. Everybody does. Keep pushing. Keep the faith. That first deal is the sub-four-minute mile. All of a sudden, you can do it again and again.

I don’t know how far you scrolled back when I first started with you but I was like, “Do I need an LLC or any of these things?” You put me at a place where it was like, “Get a deal. Once you get some action and start talking to some people and got some things lined up, use the money you get to invest back into yourself.” That was it. I can say that truly works. Don’t worry too much about how you’re going to get the deal done. All these different things would do the work. Become in love with the process.

Ninety-five percent of this is that conversation with a distressed property owner. That’s it. When you’re starting, 95% of it is lead generation. You can know everything. There are probably people reading this who know way more about real estate than I do but millions of dollars are made in real estate because of being proactive and doing lead generation. Find these opportunities and learn what to do with them. That’s it. Recognize potential in these properties. That’s how you level up in the real estate game.

Don’t stay in paralysis by analysis or in the education loop. Go out and take action. Any mentor or coach that you have out there should be having you focused 100% on finding opportunities in the beginning. That’s the whole point. You have to find these opportunities to be able to convert them. Once you convert them, then you make the income. You break your brain and you can do it again.

It’s a process. I found a lot out by myself and about the business. How I can help others was a thing as far as getting the deal done in Florida. I’m not even in Florida. I’m able to get a deal done and do this for my house. As much as it took a long time to get everything done, I’m grateful for what happened along that process. I can look at it from a different lens and say, “I got the deal done. It took all that but we can shorten that time if we get better at these things.”

What’s the big goal? When you think about being a real estate investor, are you lending money, developing properties, flipping properties or holding a big portfolio? Tell everybody what the next 5 to 10 years are going to look like for Dave King.

WI 989 | Newbie Investor

Newbie Investor: If you’re starting, just enjoy the process. Don’t be too hard on yourself.

 

I believe in passive income. I follow Grant Cardone. He has these philosophies about passive income and having to not necessarily work every single day. I was also looking at syndication and different things. I don’t know about lending but I will say my rental portfolio would probably be wholesaling actively for income to be able to take in investment to my portfolio.

That’s a perfect plan. Use wholesaling as your ATM or cash machine and put it into assets that last forever. I love it. What’s the best way to get ahold of you if people want to squad up with you or say congratulations?

I’ll give you my Instagram. It’s @KingDave_TheGr8.

This was incredible. I am so happy for you. Seeing you at this point, you’ve cracked it wide open. It’s about staying focused. Ugly houses equal big checks. Get this thing up to a million-dollar business. Pull yourself out of the business, net $1 million in this business and then start building that portfolio and going real bananas on all of the exciting things that this industry brings us. I’m excited to watch you.

I’ll help anybody if you need help in calling or closing deals. I have people in the California area. If anybody’s in California, reach out to me.

Give some advice to somebody that is starting.

If you’re starting, enjoy the process. Don’t be too hard on yourself. I feel like in some places, you can start to have negative thoughts when things aren’t working the way you want them to. You’re like, “Can I do this business?” You have to affirm to yourself that you can do these things. Life isn’t that serious when you break it down because you’re here now and gone soon. It’s waking up every day with enthusiasm and having your go-tos, higher mantras or whatever you got set up. Drink a glass of water and get to work.

Thank you for being here. I appreciate it. What a story. As Dave was saying, the comparison is the thief of joy. It’s not the comparison that we have towards other people. It’s the comparison that we have of where we think we should already be. Stop it. Live. Do the work. Who are you going to help, have a quality conversation with and get a signed purchase agreement with? That’s the question to ask. Comparison is the thief of joy. Don’t let it attack your joy.

If you’re interested in joining the most proactive group in real estate investing, it is the TTP family or the TTP Coaching Program. Go to WholesalingInc.com/TTP. Check out what it’s all about. Check out the incredible people that we work with and the success that they’re having. Check out what the program involves. If it feels good in your gut, sign up for a call. I look forward to working with you. That’s it. I’ll wrap up this incredible episode with Dave King by telling everybody to go out there and talk to people. I love you. I’ll see you later.

 

Important Links

 

About Brent Daniels

483Brent 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!

 

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