Any good strategy without consistent effort will only be excellent in theory. Transforming your words into action is the only way to clear the path towards success. Brent Daniels sits down with Dhancon Desroches, who shares how he left door-to-door sales in favor of virtual wholesaling. He explains how he made more than $150,000 in just a few months by dedicating at least 20 hours a week to being a real estate entrepreneur. Dhancon also delves into his cold calling tactics, strong work ethic, and effective negotiation techniques.
How Consistent Daily Efforts Helped One Wholesaler Generate $158k in Just a Few Short Months With Dhancon Desroches
Dhancon Desroches did door-to-door sales for 5 years, switched to wholesaling, and got his very first deal in January 2020. Now, he does business virtually and, just 4 months into 2021, he has made $158,000! He’s proof that if you dedicate at least 20 hours a week to being a real estate entrepreneur, you are going to win.
Here are the facts that I tell everybody that’s starting out with this business. If you dedicate twenty hours a week to your wholesaling business, to being a real estate entrepreneur, you are going to win. This is going to blow everybody’s mind. I have on this show an incredible wholesaler that lives in Orlando and does business virtually in Indianapolis. There were some weeks that he spends 45 hours prospecting on the phone, making calls and talking to property owners. I am excited to share his journey because in his first year in the business, he does $120,000. Only four months into 2021, he’s at $158,000. It is my pleasure, Dhançon Desroches. I’m excited to have you on here. Let’s rock and roll. You were doing door-to-door sales for how many years?
At what point in your professional life do you discover, “There are these real estate and wholesaling things that I’ve heard about?” How does this enter into your life? You’re out there knocking doors. Are you thinking maybe there’s something bigger or better? How does this happen?
I’m always looking for something better than where I am at already and wanting to improve. I found out about wholesaling probably after 4.5 years of me knocking on doors. What I have found out about is there was a guy, and Alex G. is his name. He did door-to-door with us. He was not very good at doing it yet. You got to put a lot of consistent effort every single day. You’re knocking in the cold or rain. It doesn’t matter. He was not the best. Then I found out from one of my other friends that this guy living in Columbia is doing wholesale deals virtually. He had a month where he did almost $70,000. I’m thinking to myself, “If this guy could do $70,000, I have way more work ethic than this guy. There’s no way.” He’s a great guy too but that’s how I found out about it.
When you find out about it, internally you hear about this and like, “I work harder than this guy. I know that I can do better than this guy.” You’re probably beating him in sales and what you were doing with door-to-door security every time. You have that confidence that, “If he can do it, so can I.” That’s what opened the door.
Even though I knew the opportunity was there, I wasn’t forced into it until after that summer had ended. We’re expecting to have my daughter. At the job that I was at, we couldn’t do the traveling anymore. Every six months or during the summer, we would go from one location to another, work that market and then go back to Florida, back in our hometown. I didn’t want to be traveling with a newborn. I told the company that I was with, “I can’t do it anymore.” They basically flatted out and told me, “Sorry, you can’t do it.” The only way they had allowed me to do it is if I took a year off with no work and no pay. Having a new kid, I can do that. I can rejoin, then stay in Florida year-round and not have to travel. I’m like, “Let me see what I can do.” I found out about wholesaling and your program. I got that, then I got my first deal in January of 2020.
You were putting in so much work. It is hard. When anybody comes in, I tell them, “If they call for fifteen hours a week, usually it’s about twenty hours of calls to get a deal but it takes 90 days. You have to have consistency.” It’s like, “I did 1, 2 or 3 hours.” You’re doing eight hours a day starting out pure grit, “I’m going to make these calls from the morning until evening and until I start getting deals.”
In the very beginning, it wasn’t quite like that. I started doing that for months. We were living in Michigan at my wife-to-be, in her dad’s mother-in-law suite. We were staying there in Michigan until we found a place in Florida to move back into. It was a little bit tough for me to work nonstop without having some kind of incorporation of family time. It felt a little guilty that way. I didn’t have that consistent amount of work ethic then but since we moved to Florida, then on the house we bought, I have a separate space for my office. For me, that’s important to be able to leave the house and be separated away from the family so I can work and not have those tempting distractions with my daughter. Since we moved back to Florida, I’ve had some days where I’m waking up in the morning. All the calls that I’m making between 8:00 to about 9:00 PM are all people on the East Coast. Once it hits past 8:00 or 9:00 in the evening, I switch who I’m calling to people over on the West Coast because for them, it’s still 7:00. On my time, I’m calling until 11:00 at night but on their time, it’s 9:00. People aren’t yelling at me and saying I’m crazy. In their time zone, it’s a different time.
How do you stay that focused? How do you keep hunting for opportunities and making those calls hour after hour? What’s going on? Are you distracting yourself with watching something? Some people play video games, read books, doodle on there and draw, watching movies or sports. What do you do? Are you just focused on the calls? How do you go for that long and not get bored?
In the beginning, I would watch YouTube videos on different screens and then make calls. Even doing that, I saw that my productivity wasn’t the best because it would go down to the YouTube rabbit hole of whatever it is I was watching. I have a little mini-trampoline where I’m making calls. I’ll get on there, start making calls and jumping. When I get someone on the line, I’ll jump off real quick and start talking. I’m walking around, keeping the energy, put my phone on mute and have music blasting. I’ll take little minutes. I did a few Tony Robbins events. One of the big things in his events is, he blasts music. You’re jumping. It looks cheesy but the whole idea behind it is you don’t feel tired. 2:00 in the morning and I’m still up, “If I could do that there, let me apply that doing this.” All throughout the day, I don’t feel tired because I’m doing all these things and keeping my body active.
I remember I would be making calls from 9:00 to 12:00 every single day and stood the whole time. You’ve got to move around. I would pace and move. I had my prospecting cockpit up where it was like a presentation board like a kid would have in elementary school for the planets. I would buy one of those at Walgreens. I would put my scripts, objection handlers and almost the vision of what I wanted to do on that. I wrote, “I’m going to make $10,000 on it.” I have it there on the board. I have everything in front of me and that helped. The movement helped all that energy that you can bring to the phone.
I wrote down a lot of the goals that I want for 2021. My wife is a stay-at-home mom and I want to be able to keep that lifestyle going. If she’s going to work, it’s not going to be because we need the money. I want it to be for other or whatever reason it is. That’s one of my goals. It’s to get us in a better financial situation so we can help out her family and my family. I’m saying these things as I’m jumping around in between calls. Sometimes, someone will answer the phone and they hear the music playing. I got to stop that real quick and say, “I’m in the car. Let me turn off the radio so I can hear you better.” It’s funny.
You’re in Orlando and doing these deals in Indianapolis.
Almost all of them have been in Indianapolis and Fort Wayne. Everything has been virtual.
This is a perfect example. You can live anywhere and still do these deals if you’re being proactive. I’m going to use you as the blueprint on how to do this. If you’re picking up and having a conversation, the fact is most of the time that we’re talking to these distressed property owners is over the phone. A very small percentage of it is face-to-face. You can do a lot of the work. You can do almost all the work by being effective at communicating on the phone and in any market that you want to go into. That’s the beauty of this. You can scale anywhere that you want to. You can be focused in some markets where you feel a little bit better than where you live and do some special things. What are your boots on the ground? What does that look like in Indianapolis?
I have a JV partner. We do a split of 70/30 because of how much I’m spending on the marketing and how consistent I am with the deals that I bring to him. That was one of the things I negotiated and began. I’m like, “I’ll pay you a little bit less than the commissions. It won’t be 50/50 but I can guarantee that I’ll be able to bring in this amount of deals every single month.” In June 2021, we did fourteen deals that closed. It wasn’t all virtual. When I was living in Michigan, I would drive 3.5 hours to Indianapolis to do everything myself. I car camped basically to get my first deal because I didn’t want to pay for a hotel. I was going back and forth. I’m like, “This is a three-hour drive. Do I want to drive three hours back and forth?” It wasn’t until I moved back to Florida when I finally went completely virtual because I was forced to. I couldn’t go to the house and take the photos myself, “Let me see how I could figure that out.” I was forced, so I did.
How do you find the right person? How do you make sure that they’re going to stay motivated by that 30%? How do you keep that relationship healthy and strong? Consistency of deals is the big thing. How do you find the right person, you think?
In the beginning, I’ve JV’d a few deals with a few other different people first. I realized that this one guy that I’ve been partnering with have been the most consistent. He’s always bringing deals. There is a Facebook Group page that we’re a part of. He’s always the most consistent with posting about real estate deals. If it didn’t work out with him, I had some other JV partners that I could fall back on.
These are other wholesalers. Did you found them in a Facebook Group and Meetup?
Yes. The Meetup was one of the ways. There are a few different ways that I started, like writing down other wholesalers. When I drive by and I see those We Buy Houses signs, I would write those down. I would call those people and say, “I’m not looking to sell a house but I wholesale lot. If we ever get a deal, would you be open to doing a JV?” I found a few JV partners that way. Through the Facebook Group page, I search REI and whatever city you’re in. Real Estate Investment Association Indianapolis is what I searched for. I’m searching in Florida. I look on the Facebook Group page. You’ll see a lot of the wholesalers posting their deals there and I messaged those guys directly.
Are they selling your deals? They’re putting it out to their cash buyers. Are they going to the appointments if you need them to in getting the contract signed?
The guy that I had a consistent partnership with is for 30%.
On a daily basis, you’re hunting for these opportunities. You’re having these quality conversations with distressed property owners. Once you get them to the right timeline where they are ready to sign a contract, you send in your joint venture. Do you try to do it virtually first or electronic signature on the purchase agreement?
We’ve had two deals that he had to go and have the contract signed for me but everything else I do that virtual, through DocuSign. That’s the way that I do it because I want to keep my conversion rates high. What I’ve noticed is if I send the DocuSign document over to them and wait for them to sign, sometimes they’ll get cold feet. They just stand me up. They don’t answer my calls back when I try to call them back. What I’ll do is I’ll give them a call and say, “I’m getting ready to send this over to you. Before I do, I want to make sure everything looks right.” I have a one-page document that I send. I read it over to them before I send it. One of the parts on my contract is I put exact vesting to be determined at closing. I want to make sure they understand what that is.
For people who are reading, what does that mean? What is vesting to be determined?
The entity that you’re buying under will be determined at closing.
Hard work is not enough. Consistent hard work is more the direction you need to start thinking.
You’re not putting the buyer as you. You’re putting that it’s going to be determined in the escrow.
On the purchase agreement where it says Buyer, it’s my name and under terms. I have exact vesting to be determined at closing. This is how I would sell a seller. I would say, “Mr. Seller, the LLC that I have under here may change. I have some other partners. For tax purposes, it might be better to have it under them or we might have a different person come into it.” That’s a funding partner. It’s what I normally say and someone is buying it. When they hear that, they’re like, “That’s fine. That’s no big deal.” I explained that to them before I send the contract. Once I send the contract to them, I asked them to open their email up while I’m on the phone to make sure everything is okay.
For everybody reading this, if you send contracts over email, this is critical.
The way that I say it is, “I want to make sure that everything works properly because this is DocuSign. Technology isn’t always the most accurate. You could open it to make sure that looks good,” then they open it. They’re like, “This looks good.” I go over some of the main points with them to make it simple so they understand. 9 times out of 10, they sign right there while I’m on the phone with them.
That’s the best because then it’s done. Here’s the problem, most of the time, we’re talking to people that can’t make decisions about things, then you try to send them an email and say, “Go log into your email. Go read through this document. Go press the button. Sign and do all this.” They’re like, “That seems like a lot of stuff to go on. Maybe I’ll take my time with this or I’ll get to it when I can get to it.” These are people that typically, in their lifestyle, push things back, push decisions and actions back. They’re not excited about taking a lot of action. You got to make sure that you’re promoting and getting them in a position to take that action with your help.
The reason that they’re in that situation already is because, not every time but a lot of times, they push things off. That’s why they’re there. Having it right there, simple, over the phone while they have it pulled up and makes it so that they get it done right then and there.
Going into a virtual market, the first 180 days in a new market, the toughest part is this a deal or not a deal? How do I value this? Does this street match that street? Does this neighborhood value to this neighborhood? Did you lean on the support and expertise of the people already in that market and your joint venture partners to make sure that you were okay with your offer prices or were you confident in locking it up and seeing what happens?
When I’m speaking to the seller, initially, I get a good idea. I run some comps beforehand to make sure I’m at least in the range before I send my JV partner to go over there and take the photos of the property. I always want to make sure that he doesn’t feel like his time is being wasted. When I tell him to go look at a property, he knows 9 times out of 10, it’s one that we’re going to lock up and it’s going to be a good price. Once he gets there, he takes photos of the property. He is a contractor himself so he can tell me, “This property is going to need this amount of work.” Once he tells me all that information, then I go back over to the seller like, “We had a property that we closed or I sold and we made $10,000 on. Initially, we were only going to make probably $2,500 on it,” but the reason we were able to get that drop is because he walked through it and said it needs this. I was able to then go back to the seller and say, “This property needs this. On top of that, lumber price is there going up so it’s going to cost more to renovate.” He was like, “That does make sense.” We dropped it down to $15,000 and made some more money on it.
You need that relationship if you’re going to do it virtually. That’s so critical to be able to have somebody that can go out there knee-to-knee, face-to-face, belly-to-belly with those sellers and be able to find out those things so that you know that you’re getting the best out of every deal and you’re not disappointing the seller with offering too much and having to either heavily renegotiate or cancel it altogether.
The thing that I do too to negotiate the prices is I look at what other properties have sold for on Zillow. I look for the lowest price properties. Most of the time, those are the ugly ducklings and beat-up properties that investors are buying. I’ll say, “Mr. Seller, it looks like this property here is sold for $30,000 and the other one is $45,000. Your price of $67,000 is a little bit high compared to those. Is there any way we can get down to somewhere around that ballpark of what they’re selling it for?” Most of the time, those photos are still up from those other sold properties. They can go on there themselves and look at what kind of condition those properties were in.
Where is your support system for your real estate business? Are you connected with a lot of other investors? Do you have family that is in the business? Is it internal between you and your wife? What does that look like?
She supports me. It’s tough for her because sometimes I’ll go in. When you see the 45-hour time on mojo, that’s the time calling. That’s not including the time going through leads. There’s a lot of other things going on in the backend. Even though I’m only calling for 40 hours, sometimes I’m working a lot more than that. I feel a little guilty when I’m working so much and she’s out taking care of our daughter. She does a good job of making sure that I feel like I have space and the time to do what I need to do because she sees the bigger vision at the end of the day, which I can’t ask for anything better than that.
You flew into Orlando for my team meeting, we go through our scoreboard and look at everything. I meet my team, we’re going to have a fantastic lunch and get into the business but on your Excel, you have a goal of $1.6 million in 2021. You, me and the audience know that wholesaling is like a cash machine. Wholesaling is bringing in the money so that we can do things with it. We can fix and flip, develop, become the bank, buy rental portfolios and be Airbnb masters all these different strategies. Where do you see it? What’s your vision for the next years when it comes to your real estate business? What do you want to do with this income that’s coming in?
Part of why I was able to do so well with this, I attribute a lot of it to my wife-to-be. Her dad let us stay in his house basically for a year while I learn how to do this. He didn’t ask for any rent or anything like that at all. It was the biggest weight lifted off my shoulders. I can go full force, learn how to do this and replace what I was doing with the last company that I was with, so I wouldn’t be able to give back to him and give back to my immediate family as well too. That’s what drives and pushes me. I’m from Haiti, initially. We came to the US when I was four. We still have some family over there that I want to be able to help out and some family here in the US.
Are you going to do flips and rentals? Are you looking for passive cashflow? I know that you’ve got goals and an idea of which path you want to go.
Here’s a funny story. I got a short course, then Jamil’s course. Right after then, I bought Pace’s course. In the beginning, I had information overload and then I focused on one of the courses that I bought. It was basically TTP. They got me the most immediate results. I’m going to be working on some of the creative finance stuff and then the micro flip stuff. The creative finance stuff is the most I’m excited about because that’s going to help me create some of the long-term work that I’m wanting. For a few of the deals that my partner Richard and I have sold, we were running some numbers and thinking to ourselves, “If we hold onto this ourselves and flip it, we would have made an extra $40,000 or $50,000 on it.” He has expertise in flipping already on the contracting side. In the next months, we’ll be closing a deal on ourselves, flipping it ourselves and making some extra funds off.
When you are calling, do you have a favorite list that you’re like, “I like this list?” What is it? Is it the Driving For Dollars list?
I get all my big deals from the driving for dollars list. By far, I have two drivers in Indianapolis that I have.
How do you get drivers?
I went to Indeed.com and I posted an ad.
Do you pay him hourly?
I pay him $20 an hour.
Are they using an app? Are they using something to get the info?
They’re using DealMachine. I follow a lot of David stuff. I basically followed his step-by-step post ad. He has some videos on it on YouTube too.
DealMachine is the app that we use. It’s the one that I push out and negotiated a discount on. For everybody in the Rhino Tribe, if you are interested in that DealMachine.com, make sure that you use the coupon code TTP when you check out. You can go to DealMachine.com/TTP and there are some extra bonuses there. Check that out. It saves so much. It’s phenomenal. You’ve got two guys out of your DealMachine app running around, getting the ugliest and the worst properties in the neighborhoods and communities. They send it to you, you call and asked them if they consider an offer. It’s a simple business. It’s just not easy.
I have a few friends that I’ll show them my checks with because they’re still doing the last job that I was doing. I’ll tell them, “There’s so much more opportunity out there. Look into it.” They’ll tell me, “I want to start doing what you’re doing. This looks easy.” I’m like, “It’s simple, but it’s not easy.” There’s a big difference. Simple and easy are not the same thing.
Most of the time, ugly duckling properties beat those being bought by investors.
Let’s break down a deal. The one that is $30,000, the one that’s $29,000 and some change. It’s about to close. When we break down these deals, people are going to want to know everything, like the condition of the property. Every time that we are looking at a lead, we’re looking at four things. This is for everybody. Condition of the property, timeline to sell, their motivation to sell and price. First, what list was it on?
It was a multifamily list from PropStream.
When you’re pulling entire multifamily, what you want is a year built 1990 or older and ownership of at least seven years. You want to make sure that it’s typically between a 2 and 4-plex, “This one is bigger. This one is eleven.” You want bigger but you can go bigger with these properties in certain areas that people are buying. That’s what you filter through PropStream. You can get it at TTPData.comYou pull that list, skip trace and called it.
We went back and forth quite a bit. I wanted to make sure that he felt confident that I’d be able to move forward on it so I sent my JV partner to go over there, meet with him, walk through the property, get some photos and he sent everything back to me. At first, he wants somewhere around $340,000, which was crazy to me because we ended up bringing them down to $310,000. I didn’t think we’re going to get them down that low. After my JV partner did the walk-through, I had a lot more ammo to hit him back with. He ended up taking a lot less.
What was the condition?
Most of the units were not in bad shape but he’s not making very much money on it because he rents it out for a lot of the guys that work for him. He’s doing it more of a labor of love. He’s at a point where he’s not making any money on the property. With a lot of the units, a good amount of them needs some work. He just doesn’t want to do it.
At some point, that flips to being a burden. You’ve got to keep fixing up properties. If you own a house, you’re doing all sorts of different things. Whether it’d be landscaping, the roof, air conditioner or water heater, all these different things are updating. Every ten years, everything in your house looks like it’s older. It’s crazy.
On top of that, he was self-managing everything. That was eleven units and self-managing. You’re barely breaking even. When I looked at his tax records, he had got it back in 2012 for $305,000. He’s not making a ton on it. He was happy to take $310,000 just to get it off his hands.
The condition is okay. The rental condition probably needs some upgrades or updating. With his timeline, did you call him and he was ready?
He wants to make sure the guys that are living there are taken care of, have time to move out and everything. He wanted to wait until May 18, 2021.
When you called him, mentally, he was ready to sell. It wasn’t like he stiff-armed you flex for 6, 9 months of follow-up?
No. He was ready to sign.
He signs it up right away. You know as well as I do. You talked to a lot of people. Not a lot of people are like, “I’m ready right now.” A lot of them take 90 days minimum to follow up. What about his motivation? Was it a burden?
He wasn’t making money on it and there were some of the units that needed some work. He was weighing out, “Do I keep this?” He’s getting older and getting to the point where he’s ready to retire. Does he want to fix it and still continue making no money on it or does he want to let it go and getting out from underneath that was a better option for him?
He originally wanted $340,000 and you got it down to $310,000.
I was surprised about that. After we did the walk-through, my partner mentioned a few things. When I spoke to my partner, he was like, “I’m pretty sure this guy will take around $290,000 and maybe low $300,000.” I was like, “Let’s go for $305,000 and let’s see what happens.” He said no to $305,000. He would take $310,000. I was like, “I’ll deal.”
You put it out to your JV partner’s buyers to the cash buyers in the market and you sold it for how much?
It’s for $330,000.
You made $20,000 on it.
On my side, I’m making $20,000 on it.
What was the total price that you sold it for?
It’s $29,000 and you net $20,000.
I’m making $20,000 on it. My JV partner is making $10,000. It still blows my mind even now. That’s what happened. That’s crazy.
You’re at $158,000 for 2021, pushing hard, closing over ten deals a month, you build and keep that momentum. Here is the big error that I see in our industry. People go, “Cold calling works but I don’t want to do it. I’m going to hire ten Filipinos to do it. They’re going to call. I’m going to get deals and that’s going to be great.” What happens is they don’t get deals, spend a bunch of money, burn through a lot of data and don’t make that connection. I always encourage people, before you hire anybody, talk to 1,000 homeowners yourself because that builds your skill of being, “Talking to strangers about real estate. That’s a skill that will last for a lifetime.” People want to jump past that and hire people right away. You did it the right way, in my opinion. You’re in the TTP Hall of Fame with the amount of work you’ve done and the amount of success that you’ve had. Are you going to keep making the calls? Are you going to start hiring people to make the calls? What is your suggestion? As your coach, I would say you could do either one. I would highly encourage you to keep making the calls but you can start hiring as well.
At some point, I will start hiring. Our goal in 2021 is $1.6 million. I haven’t mapped out exactly what we need to do to get there. My partner and I talked about it a few times. We’re competing with a lot of big companies with big budgets, which we don’t have. The only competitive advantage that we have over them is the work ethic. These people aren’t talking to someone from the Philippines. They’re talking to me personally. That’s the only way that I could see that I could compete with those bigger budgets because I don’t have the money to hire ten other cold callers. In 2022, I want to be able to remove myself from doing a lot of the work and get out of the rat race myself, which is why I want to focus on creative financing and then hire some people out to leverage my work. To answer your question, no. I’m going to be calling at least for 2021 and then in 2022, I’ll be hiring out.
Real estate may involve simple processes, but not everything is easy as it seems.
How do people get ahold of you? How do they reach out? I know that you’re not too much on social media. Is there an email maybe that people could send if they want to squat up with you in Orlando or India, want to help selling their deals or be in your world?
Get on Facebook. It’s @DhanconDesroches. Find me there. I’m always there.
Speaking to somebody that was you years ago, hearing about wholesaling or reading this show, they’ve stumbled onto the YouTube channel. What advice would you give to them?
Hard work is not enough. Consistent hard work is more the direction that we need to start thinking. It’s consistency. That’s the big thing.
Thank you. That was incredible. I appreciate you being on here and sharing that. It’s an inspiration to somebody that spends as much time and effort doing this and starting from nowhere. You would never have experienced in real estate. You were door-knocking, selling security and showing an example that if you do the work, this business will be successful. Thank you for being on here. A couple of resources, DealMachine.com. Make sure you use the TTP coupon code. That gets you the biggest discount that they offer. Don’t mess around. Get a TTP code there. TTPData.com is powered by PropStream. That’s where you go to pull all your lists, get all the information that you need and be able to comp your property so that you know that you’re getting good deals. If you’re interested in joining the most proactive group and family in real estate investing, it is the TTP family and TTP program. Go to WholesalingInc.com/TTP. If it feels good in your gut, sign up for a strategy call. I look forward to working with you personally. That is it. Thank you so much for being on here. For everybody out there, I encourage you as always to talk to people. Until next time. I love you. See you.
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 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!