Posted on: July 21, 2022
WI 999 | Closing Real Estate Deals

 

Do you remember what you were doing at 14? You likely weren’t a bona fide real estate investor like today’s guest. At just 14 years old, Joshua Smith has already closed wholesale deals and is eyeing a lot more. He joins Brent Daniels to discuss how he got started so young, how he is able to pull off negotiating and closing deals, as well as his big ambitions for the future.

Joshua is living proof that folks of any background and of any age can start in real estate today. But, as Joshua did, you can accelerate your growth by learning from someone who has the experience. Consider investing in yourself by applying to Brent’s TTP training program today.

 

Show notes:

  • (0:54) – Beginning of today’s episode.
  • (1:55) – How Joshua discovered wholesaling.
  • (3:53) – Finding and negotiating deals as a 14-year-old.
  • (14:30) – Joshua breaks down his first deal.
  • (18:08) – Joshua’s real estate dreams.

 

Resources:

  • Want to learn more? Check out our TTP training program.
  • To speak with Brent or one of our other expert coaches call (281) 835-4201 or schedule here.

How A 14-Year-Old Investor Is Closing Deals With Joshua Smith

Episode Transcription

I am going to blow your mind with this conversation that I’m going to have on this show because I have a young man out of Louisburg, North Carolina, that closed his first deal and is working on getting some more. We are going to break down all that deal but the most important thing that I want to hook you with in the beginning is he started at twelve years old. He started right at the beginning of the lockdowns. At fourteen years old, he has closed a deal and is building his business. It is my pleasure to bring onto this show an incredible young man, Joshua Smith. I am excited. You are fourteen years old. How did you even find real estate investing and/or wholesaling properties?

I found it through TikTok. I was scrolling on TikTok like any other kid when quarantine first started. I discovered wholesaling and started going with it.

Why even be on TikTok and not just be entertained? Anytime that we are looking at any social media, it’s either education, instruction or entertainment. Most of the time, when we are on there, we are looking for entertainment. You are going there. Did you stumble upon it? Was it something that you had been thinking about? Why, at twelve years old, are you thinking about being an entrepreneur?

Honestly, pretty much since I was young, I have always wanted to be a millionaire like any other kid. I saw the opportunity. You could make money by flipping contracts, getting the house under contract for a certain price, assigning it to an investor, and making the middle profit. I felt like it was easy to do. When I saw it, I clicked on the dude’s page. His name was Cashflow Key. I went to his page. I saw that he did wholesaling.

I went through a few of his videos and watched them. I was like, “I feel like this is pretty easy. I can do this.” I went to YouTube to do some more research into it. Pretty much like anybody else, the first person I found was you and Jerry Norton or Flipping Mastery TV. I started watching you and Jerry Norton and getting all the information and knowledge. I eventually started taking action.

Weren’t you scared or intimidated? These are adult conversations. These are people’s biggest assets that they own. I have 40, 50, and 60-year-olds that are frightened of picking up the phone, taking action, and having a quality conversation with a distressed property owner or a real estate agent about investments. Did you have any of that fear? Was there apprehension? Were you like, “I’m not exactly sure how this conversation is going to go but I’m going to try?” Walk me through your first few conversations that you were having to get leads.

In the first three, I got rejected hard. I called one agent, and then he said my offer was way too low. The seller would never accept that. It was disrespectful and stuff like that. After that, I pretty much brushed it off but I never had any hesitation or any of that about making offers and calling agents.

Let’s talk about your strategy. Did you start reaching out to real estate agents to see if they have any properties that need some renovation and love?

Yes. Originally, I saw Jerry Norton’s YouTube. I saw that he wholesaled houses on the market. I started with Redfin. I would go and do a random city and put in filters that could find fixer-uppers of houses that need renovation. I would put in keywords like TLC, flip, fixer, investor or investment. It would go through the houses and start looking at some comps, seeing how much work it needed, running numbers, calling up the agents, and making offers.

You are calling them up. What did you say to them?

Pretty much, I would say, “I saw your property on 123 Main Street. I’m an investor interested in it.” Most of the time, I would say it’s for fix and flip, “Can you give me some more information on it?” I will ask maybe about the roof, “Why does the seller plan on selling it?” Most of the time, all the houses that I will find would have been on the market for twenty-plus days. I didn’t look at much new stuff because most of the time, that type of stuff goes over the listing price. It’s the stuff that’s new.

Most of the time, most buyers are like, “Why am I paying over listing prices for this one? Why am I looking to pay $190,000 if it’s listed at $175,000 and somebody has the contract at $180,000 or right down the middle?” I would say, “I see it has been on the market for 20-plus days or a month or 2. Have you had any offers on it? Why has it been sitting and stuff like that?”

I have so many questions for you. This is going to be incredible. How did you know what to say? How did you know what questions to ask? How did you know how to feel out the real estate agents and build those relationships? How did you learn that?

After watching videos all day and binge-watching your channel and Jerry Norton’s channel, I would take in all the knowledge and then go for it.

To everybody that’s reading this, you should be so inspired and motivated. You should see the courage that Joshua has to go out there. You started at thirteen years old. Did you start making calls at fourteen?

One of the biggest challenges we face when getting started in real estate is figuring out if this is a deal or not. Usually, what that comes down to is the pricing.

I probably started calling at thirteen. My birthday passed in October 2021.

What grade are you in?

I’m in Eighth grade.

You are in eighth grade. You are fourteen years old. You’ve closed the deal. You watch my channel. You watch Jerry Norton’s. You learned how to communicate with the property owners and took action. You were calling these agents that had properties on Redfin that said as-is, investor special, fixer-upper or whatever it is. You filtered those out and called all those agents to put in offers. Did that cost you any money to get started?

A little bit. I used PropStream for a month or two. I spent around $170 or $180 on PropStream for those two months but that was pretty much about it. I got the subscription and never used it because I felt I could wholesale on-market deals and get those leads way easier.

One of the biggest challenges that we face when we are getting started in this business is, “Is this a deal or not a deal?” Usually, what that comes down to is the pricing. What is this property worth fixed up? It’s understanding the comparables and values there. Did you have somebody helping you out with that? Were you running your numbers based on some of the comparables that you saw in the neighborhood? How did you get past that point? This is a sticking point for a lot of people. They will go and lock up a deal but it will be too high because they don’t understand the numbers. How are you dealing with that? Is it something that’s affecting you?

The first house that I got under contract was too high. It was a house in Indianapolis, Indiana. It was close. It had a few comps but in that exact neighborhood, there weren’t any houses selling pretty much in 2021 in any perimeter of that house. The actual neighborhood only had maybe six houses in it. All of those had been owned for twenty-plus years.

It was close to a train track. There were some comps over on the other side of the train track but all of them were cash buyers. They were like, “This is on the other side. Most of the time, people don’t want to live on this side.” It was close to a highway. The value changed from neighborhood to neighborhood. Over the train tracks, it wasn’t the same value.

It threw you off. You ended up having to cancel, or get a price reduction or something.

I had to cancel the contract.

What are your parents thinking that you are making calls and offers on properties?

They are both happy and impressed by it. They pretty much knew since I was young that I had a good talent for anything I put my mind to. They are happy for me.

That is incredible. They are supportive because they are the ones signing for you, backing you on these offers, and helping you out here. Being under eighteen, you need to have that. To anybody reading this that is getting inspired by Joshua, you need to have somebody that’s over eighteen to be able to sign on the documents and get this through. Is that your dad? Is that your mom? Who is that for you?

It’s my dad.

Is he starting to do it at all? What is his background?

WI 999 | Closing Real Estate Deals

Closing Real Estate Deals: You can find cash buyers by squatting up with people with a ton of experience in the markets you’re working with.

 

He is looking into getting an expanded rental portfolio, Airbnb, getting tenants, and stuff like that to build cashflow. He’s possibly doing some fix and flips in the future.

Does he have a real estate background? Is this a legacy thing where your dad has been doing it forever, and he’s helping you out with this and being your mentor?

Not at all. He has looked into real estate maybe once or twice in the past but he never took any real action with it. After I found out about real estate and came to him about it, he was like, “I used to look up stuff about that,” but he never took any major action about it.

This is just you sitting there, having big dreams and goals in your head, and deciding, “I’m going to start this thing earlier than most people. I’m going to start this thing at twelve years old and get my education.” What do your friends think you do? Do you even tell them? Can you even explain to them what you are doing out there, or it’s over their heads?

It’s over their heads but I try to put in the easiest form to say what I do on wholesale real estate, “It’s flipping contracts and getting the middle part of it.”

Aren’t they like, “Why aren’t you scared? How do you know what to do and say? How do you know what properties to go after?” You are not even calling on properties that are down the street from you. You are calling on properties virtually. Are you in the whole United States?

I mainly try to look at stuff in Baltimore, Indianapolis, and Kansas City but my first two deals were in Indianapolis.

Why did you choose those markets?

I saw a few people doing Indianapolis. I like the way the market is out there. There are a lot of fix and flips out there. That’s about it. I pretty much choose a random market, honestly.

Are you still using the same strategy like go to Redfin, filter out the ones that are on the market over twenty days, say fixer-upper, call them up, and then start negotiating?

Yes. I was doing that a little bit.

Talk to me about that. What’s your schedule? You go to school. Do you have extracurricular? Is this what you do after school?

I’m homeschooled. I can pretty much do it throughout the day. Most of the time, I try to wake up around 8:00 to 9:00 but in reality, I wake up around 10:00 to 11:30. I will get up, probably get something to eat, take my dogs out, and get to it. I’m also a basketball player pretty much year-round. I have to go to practice and training, work out, and stuff like that daily. In any extra time that I get, I do my schoolwork and try to get some wholesaling in.

How many hours a week do you think you are putting into your real estate business?

At this point, it’s probably ten but when I was consistent in late 2021, it’s at least 30 to 35. I was going and going.

Certain people are blessed in a way that their brains think differently. They’re not as fearful and have a lot of courage. They have big ideas and take action. If you are like that, stay on that path.

Why did you pull back?

I got inconsistent with it. I have been going at it, calling a lot of houses, making a lot of offers, and talking to a lot of agents but my consistency has fallen off but I feel like it’s coming back.

I want to ring this victory bell. Let’s break down your first deal. Let’s talk about that. I want to know where you found it. If it’s Redfin, I want to know what it was listed for, what you got it for, and the condition timeline. We know the timeline is immediate. The motivation and the price break this down for me. How did you find it?

I found it off of Redfin in Indianapolis, Indiana. It was listed for $85,000. I did a few comps and looked at the neighborhood. There have been a few houses selling for around $160,000 to $170,000 ARV, all fixed up. After I did all the repairs and put in my wholesale fee, closing, commission, profit, and stuff like that, I came up with a buy price of $50,000. I offered $50,000, and then the seller came back at $55,000. I went up a little bit to $52,500, and they accepted it from an $85,000 list price.

This is $85,000. You hit them with $50,000. They are like, “$55,000 is the lowest.” You are like, “Why don’t we meet in the middle? Let’s go $52,500 on this.” You have this locked up. How do you find your buyers? You are living in Louisburg. They are in Indy. How are you finding cash buyers in the area?

I would go on Facebook groups and look at houses that have sold in those neighborhoods. I will call up the agent that has sold them and be like, “I see your investor flipped this house. Would you be interested in my house over here?” How I sold this deal, I had wholesaled it to another wholesaler like KeyGlee, and then they had gone on and wholesale it again.

You had it for $52,500. What did you sell it for?

I believe I sold it for $56,000.

That’s $3,500 from your efforts. That is incredible. It is bananas. I’ve got goosebumps. This is blueprint stuff. This is stuff that we talk about all the time in the channel about finding your cash buyers, communicating with them, squatting up with people that have a ton of experience in the markets, working with KeyGlee, going into the Facebook groups, finding these deals, negotiating them based on what you think the After Repair Value or the fixed up value is, getting them down to $52,500, and selling it for $56,000. It’s incredible. When that closed and you received the funds, what was going through your head?

I was excited as anybody would be. I told my parents, siblings, brother, and sister.

That’s $3,500. What do you do with it?

I blew it like any other kid but still have a little bit of it. I still probably have around 20% of it.

Let me ask you this. You close that you have another one locked up. It slipped through your fingers. You are working to get it back. Do you think you will get it?

I believe so.

What do you think you are going to make on that?

It’s probably around $11,000.

WI 999 | Closing Real Estate Deals

Closing Real Estate Deals: If you’re just starting in this business, do your research and go for it.

 

Is it in Indy?

Yes.

Let’s add a zero to those checks. $3,500 turns into $35,000 fast. What is your big goal with this? What do you see ten years from now? What is your plan? What is the vision that you have for your real estate business?

My goal is to expand it, build a team, build my rental portfolio, and invest in assets to bring in cashflow.

What do you want to buy? Are you going to buy single-families? Are you going to buy apartments? Are you going to develop or flip? What are you thinking?

It’s apartments, multifamilies, and stuff like that.

Do you have an idea of how many doors you want or how much you want to make in passive income?

I want to at least make $75,000 in passive income a month.

You are going to look back on this and be like, “I said it when I was fourteen. Look at me now. I’m twenty, and I’m there.” We are going to all be working for you someday. I believe it. You are a brilliant business owner. Certain people are blessed. Their brains think differently. They are not as fearful. They have a lot of courage, take action, and have big ideas. You are that. Stay on that path. It’s incredible. You are fourteen years old. I can’t even think about that. When you were born, I was four years in this business.

Here you are taking the time to put in the work to learn outside of school what you can do to create and have control over your future. That’s incredible. I encourage and support it. I love that you came here, we reached out, and we were able to connect because you have been on my live shows. What’s a way for people to get ahold of you and reach out to you if they are curious or if they are young and they want to be real estate entrepreneurs? You are going to inspire an incredible amount of people. If you are open to it, what’s the best way for people to connect with you?

You could contact me on my Instagram. My Instagram is @ImJoshuaSmith.

Give advice to anybody that is starting in this business.

Do your research and go for it.

That’s a simple plan. I love it. I am so happy for you. You’re doing incredible things. Keep up the momentum. Go out there, find as many opportunities as you can, and keep building up your experience. Remember, there are levels to this game. As you are talking to new cash buyers and networking, go out with the intention of understanding different strategies to add to your game. You will level up fast. Congratulations, Joshua. Congratulations to your parents. They raised an unbelievable kid.

We will call you a professional, not a kid. You’ve got that professional brain. Congratulations to you and your family. I appreciate it. For everybody out there who is interested in wholesaling, do your research, go online, check out the Brent Daniels YouTube channel, and see what it’s all about. If it feels good in your gut, get more involved with us and TTP. I would love to work with you. That’s it for the episode. I sign off as I always do, encouraging you to go out there and talk to people.

 

 Important Links

 

About Brent Daniels

WI 909 | Real Estate WholesalingBrent 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, and “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

 

 

 

 

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