Posted on: February 23, 2021
WI 632 | Optimizing Earnings

 

Real estate wholesaling offers many profitable opportunities, and there’s no stopping you from going after bigger things if you want. Adrian Lozano will share in this episode about optimizing earnings in wholesaling deals through dealing the property, doing the rehab himself, and getting his commission as a licensed real estate agent. He previously graced the WIP 217th episode in 2019 with his story of transitioning from being a firefighter to a wholesaling beast. Now, he will share about the multiple streams of income in wholesaling by expounding on his Fix, Flip, Wholesale, and Repeat cycle. Learn from Adrian how to be wise, get the most out of a wholesaling deal, and maximize your extraordinary beliefs. Do not miss this episode.

The Secret To Getting Paid 3 Different Ways On Every Wholesaling Deal With Adrian Lozano

Let’s open up this blog with this quote. This is coming from a book called The Millionaire Fastlane by MJ DeMarco. It says, “Extraordinary wealth will require you to have extraordinary beliefs.” This dovetails perfectly in the conversation that we’re going to have on the show because this is the second time on the show that I am bringing to the show, from Sarasota, Florida, Adrian Lozano. Adrian, say hello to everybody.

What’s going on everybody, TTP.

I’m excited to have you back on here. If you guys haven’t read the first episode, check that out. You’re going to get the whole story of how Adrian was struck by lightning and turned into a superhero. He’s in Sarasota, Florida and the whole theme of this blog is multiple streams of income. Adrian has figured out a way that he can get paid three times on every single wholesale deal or at least the ones that he chooses to do this with. He finds ways to get paid three different ways. Adrian, how do you get paid three times on one deal? Why don’t we break that down and then we’ll dig into it?

If you read the last blog, you guys know that I’m a real estate agent as well. I hold my license and before I started TTP, I was doing full rehabs. I’m an investor in fix and flip. That’s all I was. I know how to do the rehab as well. The three ways that I got that I’m getting paid is to wholesale it, one, then I turn around and tell my investors while I’m wholesaling it is, “I can do the rehab as well and list the property for you.” I get my wholesale fee, my rehab project manager, I do the whole thing, then I list the property and I get paid my real estate commission as well.

Let’s dig into this a little bit because it’s important. There is a question on a lot of people’s minds on whether or not to get a real estate license and for me, when I was 22, I thought that you had to get a real estate license to understand real estate, to understand how to speak the language, how to understand the process, the paperwork and all these things. I came to find out that it’s a pretty simple process if you let other people do most of the work like you’re a closing attorney and your escrow officer, and you have good cash buyers. You don’t necessarily need a license. I want you to give me the pros and cons of getting a real estate license.

I tell everybody that asked me, “Should I get my license?” I say, “You’re going to learn a lot more jumping into it and learning the process as long as you get the good team, your real estate attorney, your title company, even real estate agents.” They’re going to show you pretty much the way to go. The reason why I got my license was I got tired of finding an agent to list my properties. That’s the only reason. It wasn’t, “I’m going to get it because I got to learn more.” When I went to get my license and I became an agent, I realized fast that I knew a lot more than agents did, which was funny. They’re the go-to, but you have your listing agent, you have your buyer’s agent. Those two are different breeds and they help you. They can help you in your business as a real estate investor.

When I went in there, I learned a little bit more of the paperwork, which is great, but on the turnaround, it was red tape everywhere. Now I had to tread lightly through my contracts and everything because I have to pretty much let them know, “I’m a real estate agent as well.” For those that jump in, I suggest that you do it just as an investor. Unless you want to list your properties, go into that realm as well, which is great. Talk to a professional or an attorney and say, “This is what I want to do. What can I do? What can’t I do?” We can have several shows and say pros and cons about being an agent and an investor if that’s what you want to do.

I do it the last few deals that I did and I stumbled into this and it was great. I got the property wholesale to my investor and he knew that I did rehabs as well. He knew the homes that I flipped and he was like, “Do this for me and get the listing as well.” I thought about it. I sat back. I was like, “Why haven’t I done this?” It happened that we started doing multiple deals like that.

Something to point out here, Adrian, and you can give me your experience in Florida, but in Arizona. If I pull up ten flip properties that have sold, on the market, or under contract on the MLS, 8 out of 10 of them are owner agents. The flippers are the actual investors, but they have their license and the only reason they got their license was to list their own properties because you look at the spreadsheet and you look at how much you net on every single deal. You realize, “I can save 1.5% to 3% on every single deal. If I’m going to do multiple deals this year, I’m going to save tens of thousands of dollars. If I list them myself.”

Extraordinary wealth will require you to have extraordinary beliefs.” – The Millionaire Fastlane by M.J. DeMarco

The reason to bring this up, not for some long boring drawn out what a real estate agents do but the reason I bring that up is everybody should be reaching out to the listing agent on flip properties and see if they’re the actual investor. They typically are. These are incredible buyers. They make quick decisions. They understand how to comp. They don’t have to get other parties involved to figure out and make a decision on these things. They make a decision quickly and they’re great cash buyers. Is it the same in Florida?

Correct. You bring up a good point, too. You don’t have to hold their hand. They already know. You send them the property and some wholesalers, they want to go through the whole thing and show them, “Here’s the rehab. Here’s how much the cost,” and give them a book. I don’t do that. “Here’s the property. Here’s the address. This is the price. You do it. I’m a rehabber. My costs might be different than yours. Go look at it.” Those owner agents, they know what’s going on. You don’t have to go back and forth. “Here’s the price, here it is. Let’s go make the deal happen.”

It’s interesting, Adrian, what’s going on throughout the country, where they are requiring people to get a real estate license. There’s a couple of different reasons for that. One is they see the amount of money that we make and they want a piece of it. The brokerages want it. The broker just talked to an organization called NAR, National Association of Realtors. It’s one of the biggest lobbying groups in the country. You can’t even get into an MLS. I am telling you, 99.999% of real estate licensed people are part of NAR because that’s the only way that you get access to the MLS. You have to join an association and you have to pay your dues. Those dues go to lobbying so that realtors always have a job.

You used to be able to do being an “Assistant” under an agent, which investors did all the time. They would find a friend and be an assistant, be able to log into the MLS. They have cut that off now. Now you have to be licensed to even become an assistant as well.

Here’s the thing. If you’re reading this, the beautiful thing about this is it creates a market and the market that’s going to happen is you’re going to get more investor-friendly, real estate brokerages opening up or existing brokerages having open arms to wholesale transactions. Don’t run for the hills. The sky’s not falling. If you need to get a license, get a license, find a broker and a brokerage that understands wholesaling properties and investors and that will encourage and nurture you. There are people. We have Steve Trang here that does real estate disruptors as a brokerage. I hang my license with Steve Trang’s brokerage and it’s phenomenal. It couldn’t be better. Anybody in Arizona, if you need that Stunning Homes Realty, that’s where you want to go but I assume you found one yourself.

It’s one of my partners. He opened up the brokerage so we can do our properties. We were going through the MLS’s finding properties on there. Cut out the agent off of it. We became our own.

Let’s give people the nitty-gritty on what this looks like on how you make three different checks on one lead because you’re still out there, being proactive, and getting a ton of leads. You’re converting these leads. You’re on another level. You’re doing incredible things, but let’s break down a specific deal so that we can dissect how to get paid three ways.

Let’s start with there was a multifamily property. For those that didn’t read the last blog, I had agents. When I first started before becoming an agent myself, I would call and market to agents and let them know, “I’m an investor. If you have anything off-market you don’t want to list, turn it over to me, I’ll pay cash.” It’s done me very well. I had an agent give me a call. I haven’t done bins with her for a while. She’s like, “Adrian, do you still do it?” I said, “Yes.” She sent me the lead. I went and talked to the owner. We settled on a price. Here’s another thing as well. When you guys do a contract, you have your inspection date. Usually, the goal is about fifteen days for the inspection. That gives you the time to market, find the buyer, get all the inspections done, and do it right.

For anybody that is not familiar, when you put a property under contract, that starts day one of your inspection period, then you have a certain amount, whatever is agreed on in the contract, whether it be ten now during the pandemic, we’ve been trying to extend inspection period to accommodate everybody but fifteen days. You have a fifteen-day window there to do exactly what Adrian’s talking about to do the due diligence, to get the pictures out there, to make sure that the numbers are right, to get it in front of your cash buyers, to show them the property, and assign the deal.

WI 632 | Optimizing Earnings

Optimizing Earnings: Do not do rehabbing if you are not familiar with it. If you are not there yet, find someone who can mentor you.

 

One thing that a lot of people do is they try to lowball the house right off the bat and they lose out on the deal. What I do is I get somewhere in the middle or the seller myself that’s comfortable that we can still make a deal because I’m not going to let a deal fall through because of price. I’ll go ahead and put it under contract. Within the inspection date is now I start finding stuff, “Mr. Seller, I found this and that.” Now I start picking at it and I tell them right off the bat, “I do my own homes. I know I don’t need a full inspector, but I’m going to bring my contractors by to look at it as well, give me their opinion.” Once I did that, I was able to lower another $20,000 off of the asking price. That’s what got me my wholesale deal.

Once I did that, I did my band, science, and my market and found my investor. I sent them all the information and we got another contract within 24, 30 hours. I blasted it off and I had other agents and everyone giving me a call as well. Once I had that done, we sold it. The deposit was made within 30 hours. That was a $20,000 hit a double-close. After the fees, I believe it was under $19,000. It was an ABC close, then it started the construction.

What do you mean by an ABC close? Explain that.

ABC close is I’m closing, A is a seller, B is myself, I closed that part of the transaction and now I close with a C, which is my buyer, the investor. What happens is you have to find the right company, the right real estate attorneys to do this because now you’re not going to go into an average title company and they’re going to do a double close. A lot of people now shy away from that and they want a clean transaction where it’s just your closing or not. You’re using your own funds and you can find it a transactional funder to do that for you if you don’t have the funds to do it, but they won’t use your seller’s money to close the first deal.

Are you double closing or double escrow?

It’s double close.

Are you bringing in the money yourself? You are transactional.

Yes and no. I use their money as well. If I don’t have it, they fund it for me. My attorney always gave me a call and asked me what type of transaction we’re doing and that gets him where he’s going to step around. Usually, our investors don’t care if it’s an assignment under $10,000. If we’re doing anything above, we’ll do a double close.

Here’s the thing, guys, if in the back of your mind, you’re like, “How do I find an escrow officer that is familiar with this and do this,” simply go into Facebook groups, any real estate investing Facebook groups on Facebook and ask the question who is the best closing attorney, who is the best escrow officer to do double escrow or double closing in Sarasota, in Phoenix, in Dallas, anywhere that you’re at, then get a response from there, then reach out to them. Explain to them what you’re trying to do, make sure that they’re on board and that they can do it. That’s the easiest way to do it or get a referral from a mentor or somebody else that’s doing business in the area.

Becoming a licensed real estate agent makes you far more knowledgeable than unlicensed ones.

If you’ve got some people that you respect, maybe you’re following, maybe you’ve met at a meetup, ask them and get a referral. Referrals are the best. Don’t just go around calling title companies and asking. You’re going to feel defeated quickly. You double-close this thing, $19,000 first check. I’m not ringing the bell until we go through all three. The second one is you get paid to run the construction crew?

I wouldn’t advise someone that’s just starting out to run the rehab. Do a few or help somebody out. Start learning it yourself. If you’re not there yet, find someone that can mentor you that sit and say, “Can I shadow you? Let’s see how it’s done.” I did the rehab and the rehab was a light rehab. It was painted clean landscape, very simple. I made $6,000 off of that.

Do you have a base fee that you charge or is it a percentage? Is it baked into the cost of the rehab?

The cost of the rehab.

You have your own tradesmen that do all these things.

I did that and then within two weeks, we were able to list the property on the MLS. I did the listing and again, we sold it within the weekend. It was an investor special because it still needed some work, but we hotel it. For those that don’t know what hotel is, it’s one that is in a pretty bad situation. We go in there and we close on it. We clean it up. We dress it up. We paint, just to lipstick, but we also disclose, “It still needs work.” Others come in, there’s still work that needs to be done, but there’s enough equity there to make some money.

Did you list as is condition?

All of the properties that we have are all as is. Even if it’s a full rehab, it still all as is and that’s for liability purposes. We listed the property, sold it, and that carried over, not knowing it was a cash deal transaction, but the investor was getting a hard money loan. It extended two weeks at the closing that we were supposed to do is extend it another two weeks. Regardless, I made another $8,500 on the listing. It was over $30,000, $33,000.

What percentage do you charge your investor?

WI 632 | Optimizing Earnings

Optimizing Earnings: Earn more by taking advantage of the investors who have other jobs. They have the money, and they need you to do the work for them.

 

It’s 3%, 6% total.

What was the total that you made on it?

It was just around $33,000 in total.

Here’s the beautiful thing, he could have made $19,000 on this and just been done, but he put it in the extra work. He provided more value to this investor. The question I have, Adrian, is what is the conversation with the investor that says, “I can do all these things for you. I’m going to make more money on it, but I can handle all this for you.” How do you convince a cash buyer not to do it themselves but to let you handle everything?

You have to understand that some of these investors have other jobs. They’re doctors and lawyers. They have the money they need to put it somewhere. They don’t have the time to do it. When I sell it to them or when I’m advertising, I send them my company website and I tell them, “This is what I do. This is my full-time job. I don’t do anything else. I eat, sleep, breathe, real estate, rehab, everything. I’m going to give you the top number that you can make off of the property and I’ll help you out doing so. You don’t want to deal with it, give it to me and I’ll run it and I’ll send you updates.” They get pictures. They have an invoice with pictures on it. Every step of the way, I’m showing them what’s going on. I made $33,000 off of it. The investor made $50,000, $55,000, $57,000 off of it. He was happy. He just signed a couple of forms and that was it. It was all e-document.

If you look at his return on investment because you said he got a hard money loan.

The investor that bought me was a cash buyer, the one that bought the end buyer.

What did your investor make?

He made $55,000.

If you want to succeed, you’ll find an excuse. If you want to make something happen, you will do it.

He bought this thing and got a $55,000 return. How fast was this start to finish?

This was about 50 days.

This is a very appealing return on investment for people out there that don’t have the time but need to put their money somewhere. They need to get a return on their money somewhere. They have that real estate investing itch, but they don’t know how to scratch. Let’s say tomorrow they wave a wand and everybody has to get a real estate license to do wholesale. Adrian gave you the blueprint on how to get paid at least two times and then if you get expertise on picking out your construction crew, you can get paid three times. There is always benefit when there is change. We just have to learn how to adapt, change, move, get in there, and understand that there is opportunity when things change.

That’s beautiful, Adrian. It’s not a hard sell. If you put it out there that this is what you do in the upfront messaging, when you’re blasting out your deals, you’re going to find opportunities like this. All you do is let people know when you blast out the property that you can do all these other things. Here’s a couple of things. The only thing you’re missing now is, one, you have to be the bank and start funding these guys, have them put it down on them. Two, you should probably buy a title company at some point and get paid there, too, and then you get paid all the way.

I say that in jest, but he could do this. There are so many paths. If you look at how many people get paid in a real estate transaction, yes, you can be wholesale and focus on that. As your business evolves, as that process gets into a rhythm where you’re consistently closing deals, there are other paths. There are multiple paths of income on every single deal. Look who gets paid and find a way to be able to provide that service and value and you can get paid double, triple what you typically would on every single deal. I have some of my great friends here pays more here in Phoenix. They own title companies. They make a ton off of it and they are now hard money lenders. That’s the progression. Have you thought about that, Adrian?

That’s going to be in the future, for sure. I keep doing this and I keep running into people that know the business. That’s exactly what you said, “Find that person that knows that’s a game in it.” That’s all they do and partner up with them. My businesses have grown because I’m not a person of greed. I bring a person on, I know their value, they know my value, and we make money that way. I don’t do it just by myself. I have a team.

Adrian, your top lead generation channel. What are you doing nowadays?

Driving for dollars and calling them.

Finding ugly houses and talking to the owners.

WI 632 | Optimizing Earnings

Optimizing Earnings: You can find homes as long as you are consistent in looking for them. Go online and look them up or drive around the area you are targeting to work on.

 

That is it. I say TTP all the way. You can do what everyone’s doing and go online and get a list, build the list. It’s great. You’re going to find those homes. Everyone does as long as you’re consistent, but you drive in your area. You’re targeting your area where you live. You’re going to find those homes and as long as you’re following up and you’re keep doing it, you’re going to get, that’s it.

Are you using an app for driving for dollars?

I use LandGlide.

Do you have property radar in Florida?

Yes.

Phenomenal resources there. We use DealMachine in our business. We do have a discount. We do have a relationship with DealMachine because I find them the easiest to use. Use TTP discount code. You get it’s a 20% off or $10 off a month. Check that up. Adrian, speak now. I want to know your dream, your goal, and where you’re going to be five years from now. What does that vision look like? I want you to be able to look back, see several year younger versions of yourself saying this. What does that look like?

I’ll have less gray on my chin. I don’t know if I’m going to dye it or not. We’re going to expand and cover much ground. I want to partner up with a few other investors and do what we’re doing and keep doubling it. Everyone’s worried about COVID, Corona. That’s not going away. Those that are scared and are going to buckle down, they’re not going to survive and do anything. I tell everybody that I talked to, “We’re going to keep going. We’re going to make money. If the market crashes, we’re still there. We’re providing a service. We’re helping people, sellers, and investors. It goes both ways. We’re still going to make money as long as you’re going.”

I closed the house when we were shut down. I closed one of my flip properties in six days. That was during the shutdown. No one was able to go to the house and able to preview. We got the contract and we closed. The same thing with that multifamily, it was during Corona. If you don’t want to succeed, you’ll find an excuse, plain and simple. If you want to make it happen, you’re going to do it. You have to breathe and that’s it.

If you want extraordinary wealth, you have to have extraordinary beliefs. That’s what we started this show and that’s the absolute truth. Adrian, how do people find you? How do they show you some love?

WI 632 | Optimizing Earnings

Optimizing Earnings: Nothing will happen if you simply buckle down and be scared because of the pandemic. Just keep going despite the many risks.

 

Not much on social media other than when I list my properties, but you can email me. There’s a website that I have. It’s a RapidHomeOffer.com. I have my email there, Adrian@RapidHomeOffer.com. For those that want to learn more in actual investing, showing investors. I have my website for investors that go there. That’s Adrian@PremierInternationalInvestments. It’s a little long, but PremierInternationalInvestments.com is the website. They can see that. @FixFlipWholesaleRepeat that’s my Instagram.

Adrian, thank you so much for being on here. If you come back onto the show, it’s because you were doing amazing things and you have an incredible heart for providing value and service. Everybody reading this, if this is stirring up some thoughts in your head and you’re thinking, “I can get paid a lot more in each and every deal,” you need to reach out to Adrian. He’s here to help. He’s an incredible rhino in this Rhino Tribe. Adrian, thank you.

Let me say one more thing. You are a giver. Brent Daniels is a giver, TTP, Wholesale Inc. You guys feed everybody information. If you’re living off of credit cards, your future is on you. If you want to do it, put it on a credit card because you’re going to learn much, you’re going to get much value. When I bought your mentoring program, it opened up a whole new chapter in my life and I use it every day. You’re a giver. You do this for free. You do the show and many people learn off of it. When you get the mentorship, it’s an eye-opener. It changes your life. I appreciate you.

Thank you, Adrian. That leads perfectly. If you are interested in joining the most proactive group in real estate investing, it is the TTP family, the TTP program. Go to WholesalingInc.com/TTP. Check it out, scroll down, and check out all the testimonials. If it feels good in your gut, sign up for a call. I’d love to work with you personally. Thank you, Adrian. For everybody out there, I love you guys. As always, encourage you to talk to people. Until next time.

Important links

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!

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