My Mentor Student Shares What It’s Like to be a Realtor© & a Successful Wholesaler at the Same Time

 

Dave – I’m Dave Dinkel and I am here tonight with Drew.  Drew’s a student for some time. And I want to talk about some of things that happened to him along way because they happen to a lot of people. He overcame them. He is doing extremely well. Now he’s a Realtor®. He’s licensed and he’s predominantly doing commercial property. Correct?

Drew – Commercial and land, yes sir.

Dave – Okay. One of the things that surprised me, and I didn’t know this about Drew for probably over a year / year and a half is that he also had a side business doing inspections.

Drew – Yes, sir.

Dave – And he told me, how many did you do in one year?

Drew – Gosh, 300 something. You get a certain amount on inspections.

Dave – It’s not a business where you make a lot of money on it, but it puts you out there and you know it filled in the cracks so to speak.

Drew – Right.

Dave – So one of the things that I think was interesting about Drew – he is a hybrid. In other words he has both a license and he is looking for wholesale deals. He started getting them and he was selling them very quickly and I said to him, “How much you making on these things?” It was always $5000, right?

Drew – Right, yes sir. Exactly right. About as I hate to say it, yes.

Dave – After two or three of these, I said to him, “Wait a minute, these have some pretty good spreads in them.” And of course what was happening is you didn’t have a big buyers’ list.

Drew – Very true. What I thought was a good buyers’ list was not a good buyers’ list and come to find out I was just selling them. I was making, you know, at the time I was making $5,000 in one pop and I would just pump them out and I was like, “This is ok.” Then slowly and surely, I started looking you know exactly at what this buyer, this investor, was making and I was like, “Holy Cow”. He was getting rich off of me. You know so I kind of threw him to the curb. Lo and behold Dave was right – like always – and that $5,000 turned into $20,000 – $30,000 – $40,000 – $50,000 a deal.

Dave – Every once and awhile I get a text from him that says 40 pounder, whatever, and that’s a $40,000 profit on a wholesale deal. Now one of things about strong buyers is that they don’t always buy. They may not have money all the time. So if you have a very short list coincidentally a couple of them don’t have money at that time, you don’t have a deal.

Drew – Right, exactly. You’re exactly right.

Dave – I am going to ask you a silly question here – how many do you have on your buyers list now?

Drew – I mean as far as my go-to’s from top to finish? Top to finish it’s 100 plus, 200 plus easy, but the funny thing is, you know, is if it’s a dumpy house I know I have a buyer for that. If it’s a good house that, you know, it’s in the 200’s I know the guy I am going to send that to. If it’s a house that has a tenant in it, it’s just to keep and hold, I know the guy for that, you know. So I know the people who I’m dealing with and who’s going to buy my deals now. You know it’s just, boom, send it to him, send it to him, send it to him type of a thing.

Dave – When I first asked you a couple of years ago I think it was, you said you had 2 or 3 people on your list so that’s significantly better.

Drew – Oh yeah, and it’s growing daily.

Dave – Okay.

Drew – I mean literally, I’m not kidding you. The wholesales are gone because the residential market you know is so good that a monkey could sell real estate right now. This market’s so hot. Yes, I mean when I put some new bandit signs out people are just calling me to add to my list. They’re literally begging for houses. It’s crazy.

Dave – So let me talk about that. Originally when you started one of the things you did a lot of was bandits signs.

Drew – Yes, I still do.

Dave – Do you? Ok. Now you’re in almost a rural area so that people understand that. It’s not like you’re in downtown Miami or Tampa.

Drew – We have 100,000 people in our county.

Dave – In the county?

Drew – Yes, sir.

Dave – There are subdivisions in Miami that have more than a 100,000 people.

Drew – Exactly. And I remember, I don’t know if you remember this but when I first entered your program that was one of my biggest concerns was that it wasn’t going to work because the county was too small, and I’ve lived here my entire life. I know everybody here and it does work. Definitely.

Dave – One of your other concerns I’m going to say is can you legally be a wholesaler and be licensed at the same time.

Drew – Yeah.

Dave – How long did it take you to get over that?

Drew – I’m not going to lie. It took me some time. Now I was actually just talking with this student agent the other day about it and I kind of used to just beat around the bush and tell my people that I was buying the home from, putting it under contract that it wasn’t me, it was my “partner”. But now it’s just I say, “Listen, this is the deal. I’m going to buy it or hey, the other thing is I’m a Realtor®. If you want to try and get top dollar, it is going to be the 6% commission. You know you are going to have an appraisal. You going to have inspections. You going to have this, and this, and this. Or B, I’m a cash buyer. I’m an investor. I look for income producing properties. I can close in two weeks. Here’s your money. Take it or leave it.” And I have come find out the that has helped me a lot doing it that way.

Dave – Wearing both hats, you always come away with something – most often commission or a wholesale deal.

Drew – Exactly. As long as I am transparent with them. I think it’s okay.

Dave – Yeah. You’ve done some rehabs too?

Drew – Yes, I actually just bought one today. We’re going to do that.

Dave – How have the rehabs gone for you?

Drew – They’re good. I don’t, you know, I’ll be honest, I would prefer wholesaling all day long, you know. But they’re good. I did one this week, this year. We got it for $80k and we sold it for – it was a lipstick on a pig. We sold it for $165k. You know that kind of deal.

Dave – So, lipstick on a pig was like 10 or 15,000?

Drew – No like $2200. I think we painted it, cleaned it up, had to pay the attorney fees to get the tenant out, and it wasn’t anything crazy by any means and the tenant stayed for a couple of months. I let him stay for rent free for two months just to keep him happy because he had a lease. We broke the lease and that was pretty much it. I think I painted it and cleaned it up.

Dave – One of the things you told me about that, that I really liked was when you were driving for dollars also.

Drew – Yeah, a lot.

Dave – That you had two boys and you’d take the boys. They’d sit in the backseats, and they would use their iPads to keep track of…

Drew – Yes.

Dave – You still do that?

Drew – Oh yeah. Oh yeah. I do drive for dollars. I just got a new thing of envelopes right here – 500.

Dave – Ok.

Drew – I try to do 25 a night. I hand write them which I know is stupid that I still do that, but it really does work.

Dave – Well look, you shouldn’t be embarrassed. You’re a mid-six figure guy in terms of your real estate business and that’s pretty darn good especially for a guy with a 100,000 people in the entire county. So you’re doing very well.

Drew – Thank you.

Dave – Anything else that’s of interest that I haven’t heard about since I don’t talk to you as often as I should?

Drew – No, I mean the market is literally on fire here. It’s crazy how it really is. I could work 24 hours a day, seven days a week I mean just as much as I could get. It’s really good. A lot of people coming up from Miami looking, cash buyers. It’s almost like our county has turned into a funnel and it’s just boom non-stop honestly. It’s a lot.

Dave – One of the things – he’s on the West Coast of Florida almost, kind of more central. But one of the things for years I’ve always said is you can take a home from Dade County or Broward County, you truck it across I-75, drop it over there, it used to be worth about a third, but you got a lot more land. You got an acre instead of a ¼ acre or something like that. Now it’s worth 2/3 of what is in Miami. So the market has really changed. Is that fair to say?

Drew – Yes, sir. I do take that back as far as the wholesaling, I am beefing up my direct mail campaign. I don’t hardly do any direct mail. I have two VA’s now. They strictly cold call, you know, twenty-four/seven. That’s all they do is cold call and just do a drip campaign on them, but I am beefing up my mailer list. And I’m putting some pretty serious money into it, for me anyway, that I call serious money. And this guy hits some zip codes and they’re just going to automatically ping to my software.

Dave – So do you when you do that are you looking for listings or you’ll take anything you can get?

Drew – I take anything I can get. I mean really and truly, yes.

Dave – Why not?

Drew – The mailer campaign is for wholesales, yes, but if I can turn it into a listing, absolutely.

Dave – Now is the one guy that I worked with you originally, you said to me how does he sound on the phone and he and I role played a little? He’s still with you?

Drew – Yes, he is. He has come a long way.

Dave – For you guys that are listening especially – now that was your first VA?

Drew – Yes

Dave – And he was experienced, and I listened to him, and I thought it was really, now look, he felt very good about what he was saying.

Drew – It was bad. I mean even my wife that has never cold called before in her life she even said, “Wow, this is not good.”

Dave – We said that to him. I said that to you. You said that to him, and he fixed it.

Drew – Yes.

Dave – But now he does a good job.

Drew – Yeah, we role play a lot, him and I. You know, we still role play to this day. I have hired another lady that works with me and she’s doing better. She’s aggressive. My VA is actually turned into a shark because I give him bonuses. I put him on a very good bonus structure and if he sets an appointment, it’s $25. If I sign a contract, it’s another $25. If I sell the deal, I give him a percentage of the deal. I mean I just gave him a $1500 bonus the other day and he was ecstatic.

Dave – What country is he in?

Drew – Philippines.

Dave – And his English is 90% or more, right?

Drew – It’s much, much, much better, yes.

Dave – All right. Anything else that somebody might want to hear if they were listening?

Drew – As far as new wholesalers or your new students?

Dave – New wholesalers – people who are thinking about getting in the business. What was your adventure like when you started? Before you came to our program did you try something else?

Drew – I didn’t know. I started from you. I would say don’t give up. I gave up the first year. I said I am not going to be able to do this and then literally I’m not kidding you, that January 1 of the next year I said, “I’m going to get me a deal.” I think it was March I got my first deal and I’d just get another one, then another one. It works. I look back I split a deal a month ago and I think it was a big one. I think it was a 30 pounder. And I look back in my database and I had been following up with this guy for over two, almost a year and a half and he was finally ready. He had liens. He needed some cash. He needed out quick. He said you know you’ve been following up with me forever. He flew down here. We signed a contract and we closed in five days. It was easy peasy.

Dave – You still generate your call lists and your mailing lists from what should be motivated sellers? You do stacked filters and presumably in this case, for example, he should have been motivated but he wasn’t that motivated for a long time, then suddenly he’s ready to go.

Drew – Right, correct. I do absentee owners, out-of-state owners, high equity. I like the high equity ones. Those are my main focus on those – ones with high equity.

Dave – I called Drew for another reason tonight and I didn’t want to ambush him with this little talk we had. But I sent him a fourth section of the new course I have.

Drew – Yes, I was watching it whenever you called.

Dave – I heard it.

Drew – Oh did you?

Dave – I heard part of it. But what I am going to do is I am going to say goodbye but don’t hang up because what I am going to do is I want to talk to him. There’s an investor Realtor® who wears two hats, and he closes 29 deals a day, not a week, not a month, a day.

Drew – Wow.

Dave – We’re going to talk about what he does.

Drew – That’s incredible.

Dave – Any last comments you want to say to new investors?

Drew – You know I’m just going to keep beating a dead horse. Just follow Dave’s program. I mean it works. I promise you. I mean it does work.

Dave – That’s nice. I appreciate that. And it does work if you work it.

Drew – You have to work it.

Dave – You have to work it, yeah.

Drew – If you are just starting off as a wholesaler, I would highly recommended driving for dollars. It’s cheap, it’s easy and it works.

Dave – And you don’t need a babysitter if you take the kids with you.

Drew – No. You get them an iPad. Tell them to sit down and be quiet. I have an 11-year-old that’s going to be starting up writing letters real soon.

Dave – What’s your biggest wholesale deal to date?

Drew – $80k.

Dave – $80k, ok, all right.

Drew – It was a triplex. I’ll never forget it. I can take you it to you right now. I wish I would’ve bought the stupid thing, but I got it under contract for $40k. Yea, it was really good. It was a good one. Even the guy who bought it, he’s like, “Wow, ok, yeah I want another one.”

Dave – You haven’t done any rental properties for yourself at all?

Drew – No rentals, but it’s definitely on me and my wife’s plan this year. We did our taxes back this year and it was it was not fun. So we are definitely trying to buy some rentals this year. We want to at least try to get five under our belt this year.

Dave – You know they don’t have to be multi-families. They can be single families. What I am saying is you don’t have to have triplexes or duplexes. You can do single- family homes.

Drew – Oh yeah, right.

Dave – And keep them as rentals and stuff.

Drew – Yeah absolutely, and our rental market here in our county it’s bad. There are no rentals whatsoever which I am sure that’s everywhere right now.

Dave – Yeah. Well, I’m going to say goodbye and we’ll talk again.

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