Posted on: June 17, 2021
WI 712 | Wholesaling Success Mindset

 

The mindset you need to succeed in wholesale real estate combines respect, drive, and faith in yourself. Today’s guest is George Edwards. George spent 15 years working as a carrier for a logistics company, but he did not feel valued and respected enough. When he entered the wholesaling business, he finally got the appreciation he was seeking. However, he encountered a dilemma: how can he continuously get deals? Catch George in this episode with Brent Daniels as they talk about what happened after George’s first wholesaling deal. They also reveal what mindset you should have to become excellent at wholesaling and the key to consistently secure deals.

The Mindset You Need To Achieve Maximum Success As A Real Estate Wholesaler With George Edwards

George Edwards spent 15 years working as a carrier for a logistics company, but he did not feel valued and respected enough. When he entered the wholesaling business, he finally got the appreciation he was seeking.

Let me tell you something that’s interesting about this business. What’s interesting is sometimes you do a deal, you’re feeling great and you closed it. Now, you’ve crossed that bridge from faith that you can do this business to it becoming a fact. You made income in this business but then sometimes there is a big space of time between your first deal and your second deal. You have to work on your mindset. You got to work on your activities, your actions and what you’re going to do to get that next deal. We’re going to break that all down because that is the story of the gentleman, the professional wholesaler that I have out of Atlanta that is in the TTP show studio with me. It is George Edwards. Say hello to everybody.

How’s everybody doing?

You started out. You got a deal. It was a smaller deal but your background was being a real estate agent. For a few months, it wasn’t like a career. It wasn’t like your whole life was around this but you wanted to get into real estate. You got your license like a lot of us do. You did a deal and then it took ten months to get the next deal. Just so everybody understands this, ten months later, he got two deals worth almost $50,000. George, what is going on? What happened?

I honestly think it was a mindset shift. In the beginning, it was a lot of variables, learning the business. I got to give a lot of credit to your teaching program because it laid the foundation. I was a student. My first deal fell into my lap. It was a referral, so I didn’t use my marketing to get that deal. However, fast forward, it’s mindset. With all of the variables, I’m doubting myself not knowing if the business was real or not. Knowing that it is real, I’m having more confidence in myself.

Was it like, “I don’t know if this is real, so I don’t want to throw myself all the way into it?” Was it like you were looking at different things that you could be doing that you felt would bring more income based on your efforts? What was going through those ten months?

It was pretty much me coming into a new industry. In this industry, you see the hype. You hear a lot of things and you see a lot of things. When you actively do it for 1 month or 2 and nothing happens, it made me become a little stagnant. I’m looking around. I kept feeding myself information and being consistent. It was a mindset change. It’s all in your mindset if you asked me.

Let’s go back then. You’re coming into a new industry. What were you doing from eighteen years old to get into this business?

At the age of eighteen, I worked for a Fortune 500 company for fifteen years. I walked away from that job in 2019. I was working 70 hours a week. I was making okay money but that’s what I did for a living. I was a W-2 worker and a lot of people didn’t get away from it. Me having fifteen years in, I was a low guy on the totem pole. You got guys that had 30, 40 plus years because of the benefits and the pay was so great. That was them but it wasn’t me.

You started fresh out of high school with this. You’re doing the tough jobs. What industry is this?

It’s logistics. I was basically a carrier for a large company. The people at my station were on hip replacements, knee surgeries and back surgeries like it wasn’t a game.

You’re delivering things for fifteen years and you’re seeing the writing on the wall. I have this conversation with truck drivers, with the military and with people that are mechanics. These are people that maybe were seniors in high school when they were first and they’re seeing them starting to fall apart. There have to be some changes made. What sparked the interest in real estate?

If you’re in it for the right things, you become a real, genuine person who want to help the sellers and the buyers.

As a young boy, I always worked in the house with my mother. I would put up drywall. I would do all of the landscaping, electrical work and plumbing. Back then, I didn’t like to do it as a boy but I started to like to do it because I didn’t have a choice. I had to do it. With real estate, I always had a love for improving homes and making the neighborhood look better. That’s where I came back to real estate.

You’re thinking about it, what’s your first step? Are you getting into books, podcasts or YouTube? Are you finding people that are in the business? You go to real estate school. You’re doing this job for fifteen years. You’re seeing that, “My body’s going to break down at some point.” You’re like, “How do I transition?” What’s the next action step that you take on your real estate journey?

It starts with education. It has to do with some bit of exposure. You got to have that wandering mind to be curious and start digging for information. This may sound a bit cliche but this show was the first piece of information that I came across. It’s over 700 and some episodes. There are so many of them. It’s education. While I was out there working on my route, I would listen to podcasts and books. Fast forward, that’s what got me looking elsewhere.

Why did you decide to get your real estate license? This is a question a lot of people have. As wholesaling becomes more of a normal word and vernacular in our business, more states are going to want to get a piece of it, which means they’re going to want you to be licensed. This has happened in a few different states. I encourage people that if they see that this is going to be coming up, to not be afraid of getting their license. It’s going to be fine and just business as usual.

I decided to get my license because I’m the type of person who likes to cross my T’s and dot my I’s. I looked at it as a supplement. I went into being an agent, knowing that I wouldn’t want to be an agent permanently. I did it for any information that I can get but I come to find out, it’s like formal education. Sometimes when you get out here in the real world, only certain things apply. That’s why I got it. I wanted to get the lingo and all of the words of real estate as my foundation.

I read Rich Dad Poor Dad. I was getting my license while I was in college. I’m going through all the classes, taking all the tests and getting all this stuff done. I get done and my dad’s like, “That is great. What did they teach you about finding the listings, the buyers and everything?” I was like, “They didn’t teach me anything about that.” It was interesting that the whole business, real estate in a lot of ways is 80% sales skills, rapport building, trust-building, relationship building and none of that is taught. That’s why shows exist truly. If every area or state did a good job of helping people to discover how to find, how to generate leads, we wouldn’t exist but we do because they don’t teach it. You went through that. You saw that. You still went into the podcast. You’re starting to piece these things together. How did you get the first deal that you got? It’s from a referral. Were you talking to a lot of people and letting them know that you work in real estate?

It was a close, good friend of mine. It happened to be a virtual deal. The piece of land that I wholesale was in Jacksonville, Florida. It was a piece of land that he inherited from his parents. He was paying taxes on it. I say, “Are you going to continue to pay taxes on this? Why not make some money off of it?” The next thing you know, we did a contract.

That is the single best question that you can ask somebody that owns vacant land. That one happened. I know you and I were introduced to each other in the program. Walk through that process from that first deal to getting going and generating the leads. What took so long in your market to go from that deal with a second deal?

It was a few different factors that took me that long. Once I closed that deal, I joined the program. Once I got that wholesale deal, I’m like, “This is real. I can make a living off of this.” The problem was when I left the big company that I was with for fifteen years, I had some savings to get me by. That was one of the biggest things sitting on a lump sum of money. I don’t think my drive and my focus was where it should have been. I was comfortable. I felt like I don’t need to have a deal this month. Nobody says that but bills weren’t coming past due. Everything was still fine and dandy but it was more so me having those reserves. Once those reserves started trickling down, the temperature started rising.

It’s tough to be hungry when you’re full. When you start getting it, that hunger starts coming back and that’s what ramped up there.

WI 712 | Wholesaling Success Mindset Wholesaling Success Mindset: One thing you need to keep in mind when you talk with sellers or buyers: they’re the hero and you’re the guy who will be their guide.

 

It sounds like money is the motivation but it’s not. Money is just a by-product. Once I got into the business and having quality conversations, if you’re in it for the right things, you become a real genuine person. You want to help the sellers and the buyers connect, revitalize neighborhoods and put value back into the community. That’s what I do it for. That’s why the deals are starting to come in because I’m no longer focused on an assignment fee or a check. It’s more about how can I help someone solve their problem and get them to the next chapter in their life.

That is the most important thing. If you come from that, it’s the law of cause and effect. The cause is, “I don’t want to get rejected. I don’t want to talk to so many people. I don’t want to lose out on these deals. I want all these things.” The effect is if you’re out there being proactive and following up with these people, sometimes it feels like you’re trying to help them out as much as possible and they’re either ghosting you, stiff-arming you or whatever else. Finally, they then make that decision. The weight that is lifted off of distressed properties, chest, shoulders or whatever else is phenomenal.

I am telling you. They go to that closing like they got done with a battle. They can take a breath. They can go and have happy hour or something and relax. They feel like they’re in a better position and that’s what’s incredible. The beautiful thing is people that who own a lot of properties in their rental portfolio or flip a lot of properties do not want to deal with the generation of leads, working with these people and following up with them. They’re not very good at sales. They’re not very good at relationship building, in that sense. They’re probably wonderful but in the sense of strangers, going after and having that whole machine to keep them fed, that’s why we exist. There are distressed property owners. There are people that don’t want to talk to distressed property owners. They bought the properties and we fit in the middle. It’s beautiful. That’s essentially what wholesaling is.

There’s one thing that I meant to add to what got me into real estate or to leave that company. I didn’t feel valued at my place of work. I would go into businesses and I would get overlooked. I would get put off. It’s not an empty feeling but I’m a man of respect. When you go places and people don’t show you any respect and they treat you any type of way, that’s where I’ve had that inner thought that my worth is more than this. Piggybacking off of what you said, how valuable we are to the sellers, the buyers, the community and the government. It’s a win-win. That’s why I love it.

You struck something there. What people don’t discover as they get into this is all those years that they’ve been seeing through, nobody’s paying attention and just a cog in the wheel, all of a sudden you become the most important thing for 30 days, 45 days or however long this transaction goes between two different parties. You get a lot of internal value from that. They need you to keep this thing together. You become important.

One thing that I keep in mind when I talk with a seller or buyer, they’re the hero, you’re the guy. You want to be their guy. The deal that I closed, I’m sure we may get into it. They’ve already set up a meeting, the sellers, her and her husband to talk to me about lending me private money because they want to invest the money that they’ve made off the sale of their home. Not even for one transaction. It can be for more.

Once you start raising funds from people, now you have a track record. All of a sudden, we’re talking about how development happens. We’re talking about how 100 to 300 flips to properties happen. You’re talking about hanging drywall with your mom. Imagine doing those hundreds of times. How rewarding is that? Let’s break that deal down. Talk to me about this deal.

The first deal came from an absentee high equity list. It was occupied. It had tenants in place. The tenant had been living there for years as a Section 8 tenant. I sent out a text campaign. It’s funny because this was right around the time that I joined TTP. I sent this text message out. I thought it was a lay down because the response I got out was like, “Sure. You want to go by and look at the property.” I’m like, “I have other texts I get.” I got on the phone with the seller and he was talking good but come to find out, he had a wife and she wasn’t with the program. They came to, “We’re going to do it next year.” It was a consistent follow-up. When I followed up with this gentleman, it wasn’t about the house. “How are you? How are things going? How’s the wife treating you?”

A little bit of the conversations that you’ve had previously, keeping them in your mind, being interested in them makes you an interesting person. It comes both ways.

When we’d be on the phone for about ten minutes and he’ll give me an update. I wouldn’t call him for an update. I was calling to see. Fast forward, the next year came. I checked in with them. “No. I had COVID vaccines. We’re sick.” I got pushed on. Finally, he got his wife to sign. He signed and we closed that deal.

Before we get into it, let me break this down for people that are finding this. There are people that are going to be reading this for the first time and you said a couple of words that I want to give some clarity because they’re industry-specific words. Absentee owner means that the owner of the property doesn’t live there. Typically, it is a tenant-occupied property. The owner doesn’t live there. These are rental properties. You said high equity. What high equity means is the amount that they owe on this property is way less than what the value is of this property. There’s a lot of room in there for negotiating.

Once you realize that this is a relationship business and you need to be the best at your relationship skills, you’ll succeed.

If you have low equity, it’s tough because they have liens on the property. If you have liens on the property, there are only certain things that you can do with that deal. With wholesale, we say that we need two things. We need equity and we need motivation. You said Section 8. The government was giving the tenant money to pay rent for this property. Were there any issues with the tenants finding a new place? Was the tenant cooperating, understanding that perhaps they have to move or whatever else? Whenever you have a tenant-occupied property, there’s going to be some interesting conversations.

That was part of the motivation too from the seller. He had been in and out of court with this particular tenant. They ran the property down. I’ve seen the before and after pictures. They did a number on a seller’s property. That was mostly his pain. We knew what those indications were. This tenant would give us some pushback but all we did was we did the 30-day notice. We contacted the tenant, asked if she needed assistance, how we can help and offer her cash to get to her next place. The seller is still there. Fingers crossed, we’re going to do the best we can to help her to get to her next place.

Once the cash buyer closes on it, how long did she have to get out?

We put the notice in maybe five days before we did the close on it. The original seller did the notice to the tenant.

Do they have 30 days in Georgia?

We gave them a 30-day notice but we’ll see.

Let’s break down the numbers in this thing. What did you put it under contract for? What did you sell to your cash buyer?

I put it under contract for $95,000. You had a buyer up. I gave it to him for $135,000.

You’ve got $40,000 but you don’t have all that yet. You have $37,000 of that because $3,000 of that is tied up. Explain that.

It was the whole bag. The buyer wanted to protect his interest while he has full interest but partially because there’s a tenant in place month-to-month. We put capital up to help with the process. What if he does have to pay money to do extra things to get the tenant to their next place? We held $3,000 in escrow if they leave in the allotted amount of time.

WI 712 | Wholesaling Success Mindset Wholesaling Success Mindset: If you have a 9 to 5, that’s cool. But if you want to get serious and reap the benefits of financial and time freedom, you have to dedicate everything to this.

 

It’s $3,000 from your assignment fee?

Yes.

To let everybody know, typically what happens in this is to sell these tenant-occupied properties to the cash buyer, the seller typically does an escrow hold back. In our business here in Phoenix, our typical amount is $10,000 kept in escrow, which means the title company holds these funds. There’s paperwork that says when the tenant vacates the property when they move out, then this $10,000 is released to the seller, they get it all and everybody’s good. If they go over that certain timeline, then all of a sudden, that $10,000 starts reducing. Ours is typical $100 a day. It motivates those sellers to make sure that those tenants are moving out, even after they close or we do that for the homeowner themselves. If they lived there, we would do an escrow hold back for them to move. A lot of people need the funds if they live in the property to buy the next property, move, get a lease or something somewhere else.

In this case, you didn’t want to bother the seller. You were like, “We’ve had a wonderful relationship. This is going to be a great opportunity for me. I’m going to take this. I’m going to risk my $3,000, put it here and make everything smooth.” This is a beautiful example of how to do what’s best for the seller. If this seller is not comfortable with anything like that, you’ve built this great relationship, they understand that they’re selling their property to you and you’re going to make a profit on this deal. It’s not something that you’re making $5,000 on. You’re making $40,000 on. You’re saying, “I don’t mind.” In my mind, what I would do is say, “That’s already gone. Maybe I’ll lose that. I’m going to expect to lose it. If I get it, it’s going to be a bonus but I’ll do everything that I can to get that money and make it smooth so that cash buyer on the other side is happy.” That cash buyer wants the property and they want it vacated. Is this a fix and flip?

I believe so. They might do a buy and hold because it was a pretty nice decent property in a nice area.

With the absentee high equity list, where did you pull it from?

It’s from PropStream.

What were you using to text? Is it BatchLeads.io?

Yes.

You got the address. You put it into BatchLeads. That skip traced it. It got you the phone number. Also, you were able to text on that platform. You got it out there. They responded. You built this relationship and closed this $40,000.

That’s what it’s about. It’s relationships. When I came to that crossroad of holding back that money, the relationship was more important for me. Once you realize that this is a relationship business and you need to be the best at your relationship skills, you’ll succeed.

If you want to excel in a business, you need to make it your focus. Try not to do two things at once.

I also think it’s internal with you. You’re secure. When you enter somebody’s life, they’re better for it. That means that you can feel good building that relationship. Some people, unfortunately, have an interesting self-image or self-esteem of themselves that they say, “I’m a drag. I’m not that great. I don’t want to get too close to people because I’m going to bring them down.” In essence, if you release all that, realize that you’re a human, these are humans, everybody’s a community, we can all love each other, support each other, have respect and love then you could go confidently and have that kind of relationship. All of a sudden, life gets so much better and so much richer.

That’s self-work. If people don’t have that, then you get into it. You stop putting in the negative things. You start reading to amazing motivational podcasts or Audibles and hanging out with great people. All the external that you can bring internal surrounding yourself with all this positivity, especially if you have a goal. The fact is you and I was built different. Everybody reading this that has any interest in real estate investing and wholesaling, we’re built different. Our brains are different. There are millions and billions of people that will never read, never watch, never have any interest in this. We do. We’re freaks. It’s a small niche of people. I want everybody to feel confident that they can be something special in stranger’s lives, especially strangers that have distressed property and have all the stress.

This business has changed me and who I am as a person. With any interaction that I have, my mindset is how can I help this person? How can I add value to this person? It’s not about me. Once you have that type of mindset, your rapport building is different. You listen better. You’re able to guide people better. When I talk to sellers, I’m not coming in on the phone saying that I’m their buyer. My buyer’s hat is in the back seat. I’m coming to listen to what you have to say and try to provide a solution for you. I’ll decide if I want to be a buyer at the end of the call or depending on the information you give me but my priority is to solve your problem if you have one.

I can’t tell you how many countless times I’ve been like, “You need to list this property. Put it on the market. It’s too nice. You’re going to make way more money doing this than working with me. I get it. You like me. You like my company. You want to do something here but I’m telling you. Here are the numbers. You’re going to make $40,000 more if you put this on the market. What do you want to do?” “We’ll put it on the market.” They’re happy or they say, “I don’t care. It’s not about the money. I want to work with you. I want to get this done. I want it to be smooth and easy.” That’s the thing. It’s a no loss. You can go into any situation and help them out. It’s incredible.

It’s been a few times that I’ve told sellers because, in some markets, Zillow honors their buy price, their Zestimate. I will educate the seller. “Why not just sell with Zillow?” They honor the price that they show online. They would be blown away like, “I did not know that.” I’m not looking at it as my loss. I’m looking at it trying to help the seller.

You have to understand, are you the best option for this person’s situation. If you are, then go hard, work with them and get them to commit to you in the process but if not, let them know about the others. Nobody’s living under a rock. Nobody doesn’t know that there are other things, other people that would buy it, putting it on the market or taking one of these iBuyer or cash offers. The fact is if they want to work with you, the numbers make sense, the timing makes sense and they want to trade potential equity in their property for speed and convenience, that’s our sweet spot. That’s where we do deals. Everybody reading here that is feeling you and would like to be around you or at least tell you congratulations, how can they contact you? How do they find you?

I do have a line set up where you can contact me because I’m not on social media as much as I probably should be. A number you can get in contact with me is 770-863-0863.

If you’re in Atlanta, you want to squat up, if you want to reach out, please do. To anybody that it’s their first show they’ve been reading and they haven’t taken action yet, what advice would you give them?

This advice that I’m going to give is probably going to be subjective to some people but I would say, if you want to excel in this business, you need to make it your focus. Meaning, try not to do two things at once. If he got a 9:00 to 5:00, that’s cool. You can make money but if you want to get serious and you want to reap the benefits of financial freedom and time freedom, you got to dedicate everything to this. You’ll be better off that way. That’s my advice. Also your mindset, never stops working on self-education every day. You need to be reading a book, listening to something that’s going to make you a better person for tomorrow.

Thank you so much. I got a couple of resources. Pulling the absolute best-motivated seller list is PropStream. You can get that at TTPData.com. If you’re looking for a dialer, it’s BatchDialer.com and BatchLeads.io. Make sure that you use the coupon code TTP there. You get 5,000 free records from Batch Leads as well. George, thank you so much for being here. Everybody out there reading, if you are interested in joining the most proactive group in real estate investing like George, it is the TTP family. It is the TTP program. Go to WholesalingInc.com/TTP. Check it out. Scroll all the way down. Check out all the testimonials. Check out what the program is about. If it feels good in your gut, sign up for a strategy call. We look forward to talking to you. I look forward to working with you personally. For everybody out there, I will sign off. As always, I’m encouraging you to talk to people. Until next time. I love you. Bye.

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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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