REI Mentor Program Student Testimonial – Getting Bigger Profits
Dave Dinkel: I’m Dave Dinkel and this is Omir. Omir is a student. How long have you been in the program?
Omir: Since– I was supposed to do the class in August but then we had a baby so I came to the class in November.
Dave Dinkel: Oh OK. So that’s roughly four months?
Dave Dinkel: OK. So what’s interesting is that Omir here had done about 20 deals prior to coming into the program. When I interviewed with him, I said to him, “Why are you coming into the program?” Why did you?
Omir: My profits were very small. And from what I’ve heard from other students, my friends specifically that were in the program the profits were much bigger and he was getting quite a lot of deals. I wanted to do more deals for bigger profit.
Dave Dinkel: How, on average, your profits beforehand how big were they?
Omir: Average 3,000 to 5,000.
Dave Dinkel: Which sounds like a good number. [Laughter] But if you can do 20,000 you may have to do one quarter as many deals.
Dave Dinkel: So you came in in November, how long– one of the interesting aspects to this is when Omir came in, he said, “I have some deals in the pipeline.” And I suggested give us a list of them and if you do them then we won’t count them because we’re splitting deals with you. And he gave us a list of how many? 30?
Omir: I think something like 20 or something like that.
Dave Dinkel: A pretty good list. How many of those closed? Do you have any idea?
Omir: About 10, something like that.
Dave Dinkel: OK.
Omir: Some were short sales.
Dave Dinkel: All right. So are you using the basic program that we train the people for now where you make your calls on daily basis, you do your follow up.
Dave Dinkel: And you see if what happens after that, correct?
Omir: Yeah. I’ve been using Reifax. Most of my deals were from Reifax. In the past few months I’ve been doing more marketing, a lot of them are off market.
Dave Dinkel: Direct.
Omir: Direct sales.
Dave Dinkel: You’re doing direct marketing to non-listed properties.
Dave Dinkel: OK. And that’s working out pretty well.
Dave Dinkel: Now, what would you say is your average profit these days? Got any and that’s…
Omir: The past, yeah, the past three months it was about 20,000 or 22,000.
Dave Dinkel: OK, so significant difference from before.
Dave Dinkel: And what did we do differently? You know why are the profits four times as large on average?
Omir: It’s just I think mainly it was a change in mindset because I saw that it’s possible to do those deals and it’s just negotiating better on the buying side and negotiating better on the selling side.
Dave Dinkel: And before that you were told by the community that don’t be greedy, $3,000 to $5,000 is plenty of money, right?
Dave Dinkel: Well, that’s good for them.
Dave Dinkel: That’s typically somebody that has a license that’s getting 6% before you do your deal. What was the most challenging part of becoming a student in terms of getting started or whatever else?
Omir: It was just more challenging to start really being more organized in my day to day routine and that I still have work to do on that. But it pays off.
Dave Dinkel: Are you doing any virtual assistant work for some of your day to day stuff?
Omir: Yeah, yeah. Yeah, I have virtual assistant that does like some of the lists that I’m mailing to…
Dave Dinkel: Prospecting to and stuff.
Dave Dinkel: OK. What would you tell somebody possibly that’s going to come into the program? Well, what to expect or how it worked for you?
Omir: It works. It just takes some time to get it started and I guess for everybody it’s different. I hear from students that I talk to at some takes very short time, some a little longer but if you know it takes work but it pays off.
Dave Dinkel: It’s a matter of commitment.
Dave Dinkel: Have you– you want to– one of the things that he wanted to do was accumulate some passive income. Have you actually done that yet? Have you gotten to a point where you purchase to hold?
Omir: Not yet.
Dave Dinkel: OK. You haven’t done anything..
Omir: It’s too tempting to make a flip on it..
Dave Dinkel: It is. What he’s saying is when we flipped the wholesale properties that are multi-families, you take out like two to three years worth of income at the closing table.
Dave Dinkel: No tenants, no toilets, no headaches, so what he says is true when you go to sell them. It’s tempting just not to bother with the passive income aspect of it. And the other thing is if interest rates rise again, you’re going to get stuck in the passive income vehicles because the cap rates are going to be required to be higher when you go to sell them which a lot of people don’t understand. But that’s OK. All right, thanks very much. I appreciate it.
Omir: Thank you, Dave. Thanks for all your help and patience.
Dave Dinkel: Thank you.
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