Beginner, Experimentation, and Future Reviews! + Adwords Nerds

13 Replies

Hey, Everyone! 

      I'm excited to join the forums. I've been reading posts for a couple months now as well as listening to different podcasts, and I wanted to join in now that I have started my market methods and committed to the endeavor! I'm going to give a short bio on me and why I got into wholesaling, how I'm going about it, and my goals for the next year. I will also be doing a continual review on my success (in detail) with my two main marketing methods - direct mail and online marketing. 

      I met a gentleman at my church who has been doing wholesaling, rehabbing, short-sales, etc for 15+ years and is also a licensed broker. I didn't have any interest in the business at first but I have come into a great deal of interest after regularly talking with him about it for the last year or so. I actually became the most interested due to him and his wife's hospitality - they rented the second floor of their home out to my wife and me just a couple months after they got to know us. We were approaching our finals weeks at our University and our lease was coming to an end - so to save us the stress of trying to find an apartment in the middle of that (we had a very limited budget,) they offered for us to stay with them for a month or two for free. Two months later, they came to us and said, "We love having you guys around! You are welcome to stay if you would like." (Note: the top floor is a completely separate apartment, so we only have to interact as much as we want. They also love dogs, so we were able to get a puppy like we had been hoping to get for about a year.) We ended up starting to pay rate three or four months later, which even that was severely discounted from typical prices in the area. 

      After spending a night with them every couple of weeks having dinner and playing board games, I became more and more interested in the business. Important note: I would NEVER have trusted anyone as a coach because of all the BS out there if I didn't have a personal relationship with them. But they offered me to join their class about six weeks ago to get a feel for free. At the same time as this was happening, I was actually in the process of changing majors in college (I'm a junior at JMU in Virginia,) and had dropped a few courses, so I felt I had some time to commit to the endeavor until my next semester starts. I signed on with them for two years and will be splitting profits 50:50. Though this is a steep commitment, they don't charge anything up front, and they have 15+ years in the business, have a license, and are part of an East Coast Mastermind Group that does continual market analysis research. I also have 2 years of construction experience from high school and absolutely no knowledge of this business before recently, so I could use a mentor for awhile getting up and running - especially with details like taxes and different types of contracts other than traditional assignable and buy then sell. All of those factors, PLUS AND MAINLY BECAUSE OF the personal relationship, I felt was enough for me to commit to a partnership for a little while. I know their character and truly trust them - which is not something I could replace with any other factor. 

      I currently have about $1,500 dollars of expenses in my personal budget and make about $2,000 a month between both my wife and me working (I work in an emergency room, she as a lay helper at a counseling center,) so I am budgeting about $500 a month to marketing methods aside from Adwords Nerds, which I will talk more about late in this post. We have paid cash for our education up until now, so we have zero debt and will graduate with our degrees next year debt free. We have both of our cars paid off as well and keep monthly payments uber low on everything from groceries to insurance. 

      Here is where I am now: I am mailing out my first direct mail marketing campaign this week. I have signed up for Buyers on Fire (back-office management program with sweet spot locator, lead capture numbers, pipeline management, and comps calculator.) I am sending out 130 hand-written yellow letters to absentee owners and tax-delinquent (multiple levels of motivation,) as well as approximately 500 handwritten notecards to individuals from inheritance, divorce, and a couple other lists (that I got from Listability.) I have about $350 into this marketing strategy so far including the program (monthly,) lists, marketing supplies (envelopes, stamps, yellow paper, pens, etc.) I intend to automate this marketing strategy ASAP with income derived from it's deals using something like yellowletters.com. Mainly because my hand hurts from all that writing! 

      My second marketing strategy is online. I know this is where I may get some newbie criticisms for spending quite a bit of money already, and I hear that. I felt okay about it, and I am hoping that if signing up for a program doesn't turn out well, I can at least benefit others by helping them to avoid doing the same. I signed up for the AdWords Nerds boot camp today. It is a 3-day seminar for people to start pulling in leads and managing them efficiently. I heard of them on Investor Grit's podcast and spent a week or so trying to find reviews and additional info on them as well as communicating via email. I wasn't feeling great about it, until today. I had set up one of their "strategy meetings," and actually spoke to a representative of the company today. I felt weird that there were virtually no comprehensive reviews by individuals anywhere out there, so I wanted to put a freshly updated one out as I go through the process. 

       I spoke with a gentleman named Louis DeMedici, who is one of the 14 core employees at the company (minus virtual assistants and admin personnel) according to Lou. He was personable, transparent, and super helpful - everything a good marketer should be but also someone you can trust with your business. I asked them several questions I thought might be helpful for Bigger Pockets. Louis stated they bring on about 30 individuals at a time for the boot camp, and they regularly are coaching between 8 and 16 individuals outside of that. This is their normal COACHING client load. I asked this because I was really nervous about investing in some giant corporate company that was all cloak and dagger, so I tried to get a peg on the character of the company. The initial cost is $1,500 dollars up front and $2,000 after your first deal. I asked them, "what do you do if the first deal is only $2,000 in total? (Not because I expect that, but because I wanted to get an idea of the character of their business.) Louis stated, "we would find a way to work with you so that you can make some money and pay us the rest later, we would figure it out on a deal to deal basis." I asked him several more somewhat probing questions, and he was super helpful with all of it. By the end of the conversation, and knowing a lot more about the company, I felt better about trusting them. Maybe I'm just a gullible newbie to the field, but I do truly believe there are some good companies out there that will be helpful and want the best for people. I just hope I found the right one.

       My goals for the next month or two are to pull in three deals by Christmas. I have access to around 950 buyers in the area through my partner, so I'm not too concerned about that side of it - he will also be going on the first couple deals with me to help me get my bearings with the sales part. I'm in this to help people, and very much agree with the philosophy I have heard on the Investor Grit Wholesaling podcast which is only trying to help people find the right option - if that is me, great. If not, help them to list the home if that's the best option, etc.       

      Year-goals are to double both my wife's income and mine (34k gross together) within 6 months, and average 4 deals a month by the end of next year. The average deal in my area is doing between 5k and 10k, so bringing our income to 60k by the end of next year with 20% of the take home (50% to my partner, 25% to reinvest in marketing and automation, and 5% in donating) would require about 4 deals a month. That's the start I'm hoping for. 


      This is all new to me, and I welcome your feedback! Check back in for periodic updates on my experiences, success and working with Adwords Nerds. Please try to be constructive with criticism if you must, but definitely help me any way you think I might need some insight :) I value your experience and wisdom as a newbie!

Sincerely, 
Matthew

Hey Matthew,

I very much appreciate the review of your call with Lou.

I want you to know - you can reach out to me any time, directly - whether on FB, Bigger Pockets, or elsewhere - if you ever want to talk. I'm here to make sure you have an amazing experience, and if for any reason we don't live up to your expectations, I want to know about it.

Cheers.


Dan (from adwords nerds)

I do not know who "Lou" is. (Not that I should...) As a preface to what is to follow, Lou may be a decent guy.   While I have yet to meet a truly honest "Coach"... Lou may be.    My distrust of "coaches" is not derived from any conversation I have had with any, but solely on the premise of their business model.  My rationale is this:

KFC will sell its "Secret Recipe" when no one is buying their chicken.  

i will expand on that.... Some people/ entrepreneurs will work side gigs for additional income after they have exhausted all available, and profitable hours that can be devoted to their primary gig.  Primary gig keeps the lights on...aka pays more. But No one, and I mean no one, nurtures a new business venture with the intention of exchanging more profitable "primary gig hours for less profitable "side gig" hours.   Imagine taking unpaid time off from the ER so you could work at Wendy's...     If you are thinking that I was equating Wendy's to coaching...nope, Wendy's is the opposite of coaching in my example. 

I believe that people usually turn into "coaches" when they are no longer making money doing what they are now considering teaching.  When entirely assembled, the question that I have not yet heard a valid answer for, looks like this...   If  a "coach" conducts business so profitably within their industry,why start teaching the competition all about their "secret reipe"?

@Gavin D. , Thanks for the input!

I am also very skeptical of "coaches" for much the same reason you are. That's why I mentioned the only reason I started working with the gentleman I am now (NOT Lou) is because I have had a relationship with him for two years at this point (non-business related,) and he has truly used his resources to help a lot of people. 

As far as Lou goes, if you read my post, he is my POC at Adwords Nerds, which is a company I'm trying out for learning online marketing. The way I see it is that I'm paying on average $500-$700 per course at my University to learn broad, generalized information that doesn't directly teach me anything useful in terms of making money. So I'm willing to pay some cash to learn a valuable tool in an area I know nothing about. He's not my coach - and I stated that in my post. My "coach" is my friend I know in real life, and I consider him more of a mentor in both business and life.

I am curious - how did you get into real estate investing? Did anyone teach you? Did you do it totally alone? How did you learn things that are a bit more nuanced, like tax laws, etc? How is your business doing? Most of the (successful) people I meet or talk to so far either had a mentor or have some pretty decent background in either construction, real estate, etc before they jump into this. So it makes sense that I might have to put some money into some streamlined education in it to me, anyway. 

As far as the secret recipe, I didn't claim anything about them having one or marketing one to me. I just said I was paying for some education. I don't expect them to have one - but they do solely work with real estate investors, which tells me they are probably experts on the subject. I would dare to assume you, being a data-guy, would agree that when you spend years and years in a specific field you're most likely to have a leg up on the competition when they "specialize" in everything like most marketers do? Again, I'm a newbie, and I may eat my words in a couple of months after not having done any deals - we will find out together soon, I suppose :) 

Thank you for your input!

@Matthew Rescott
Actually, I'm not a real estate investor.  The odds are too low.  Well,... for my personality type at least.  I went to school for physics and computer science, then did what most do.... got into a field that was as far from my education as possible.  I became a mortgage broker. I did that until i realized that until the market crashed, which was conveniently synchronized with the crash of my tolerance for speaking with people.  Computers tend to communicate with far more relevant context, and appreciate bluntness a bit more than people.   

I found biggerpockets when I was looking for my primary residence.  I used it, along with my experience in real estate, and programming skills for a "one and done" deal.  I looked at houses for 4 months.  I could not tell you how many. Probably 3 everyday.  Then when a shady Fannie Mae realtor slipped up, I leveraged her misstep for the opportunity to conduct business on a "fair" playing field with Fannie Mae. 

I spent quite literally every cent I had, to pay for a house in cash.  Then borrowed against my old 401k for the funds to renovate it. (well, nearly completely renovate it...lol.. It never ends..) .    I had 3 contractors out for bids, which was enough to make me hate speaking with people again.  So during the days for over 1 year, I destroyed myself re-wiring, re-plumbing, ripping out floor joists, tiling, hanging drywall, installing new HVAC units..etc..  Then coding at night.  All said and done.  50k for the house, 35k in renovations costs, worked out to about 2800sqft of hell valued at roughly 220k.

I know... sounds crazy... It is.  And trust me, the reality, most which my wife tells me I have blacked out, is even crazier.  Black mold, coal dust, asbestos, you name it, I fought it here.  I now have ABSOLUTELY no fear of crawling underneath a 2 story 1900's house and having to exhale to fit under a floor joist. The neighbors think I'm nuts.  Standing on a roof sledging bricks from a chimney will do that.  A little nugget of advice for those who would be so inclined to knock down a chimney... Once you have knocked down what is above the roof and working in the attic, you can no longer use a full size sledge hammer if you like having ceilings.  Make sure to tether the mini-sledge to yourself as to prevent it from falling down the chimney which you are knocking down... I ran to Ace Hardware twice before figuring that one out. But on the bright side, now I have 3 mini-sledgehammers.

In the four months I spent looking for a house, I scraped 3 counties tax records and sent mailers to 4000 people. I met nearly every realtor/wholesaler/flipper/"so called" investor, in the area.     I only met 1 real real estate investor.  He bought up destroyed houses and renovated them. Even when he was done,no one WANTS these houses...they settle for these houses.  Renovated 800-1200sqft  in sketchy areas, for 30k.   He had 3 crews of meth heads and drunks working on 3 houses going on the same street.  The work was crap, and I he knew it.  I know he knew it... he told me.  "I don't think you are looking for the kind of house I could sell you, they are all crappy.",  Verbatim.  


So what did I learn?. Real estate is a numbers game, and success requires a pickup truck, and a willingness to get very very dirty.   The more dilapidated houses you look at, the more opportunities you will have to turn a profit renovating a  dilapidated houses.  The law of averages applies to everything in life.

Why am I here?  Everyone likes the sound of their own voice (or text). 

By the way.  I had a question for you.... I've been a programmer now for 12 years. I can not imagine how adwords and real estate investing are compatible.  Have you ever checked the county records  to see how many houses the "so called" investors that use that system are?   I've never used the adwordsnerds system, but I have researched some of  the people who claim to be successful investors in the past.  You seem like a smart guy.... save your money, look at a  lot of houses.  

Originally posted by @Dan Barrett :

Hey Matthew,

I very much appreciate the review of your call with Lou.

I want you to know - you can reach out to me any time, directly - whether on FB, Bigger Pockets, or elsewhere - if you ever want to talk. I'm here to make sure you have an amazing experience, and if for any reason we don't live up to your expectations, I want to know about it.

Cheers.


Dan (from adwords nerds)

 Dan, I am absolutely disgusted with your companies services and customers service.

Before I will make this horrible ordeal public I will give you a chance to call me in person and arrange for a refund.

What one of your workers did was completely unacceptable!

Hi Everyone!

I took the course and learned a lot! It did have a bit of an assembly line feel, with some of the questions people asked not being answered (ever.) I missed a video or two out of the boot camp, and while it was said they would be posted afterwards (they were live sessions,) they never were. That was pretty disappointing considering how much we paid for the class. 

It also gave me access to a curriculum which basically covered the SEO side of things which I went all the way through (it's pretty big,) and I learned a lot from that. Overall I don't think it was worth as much money as they were asking for by any means, and I wouldn't recommend taking it or take it again if I could reconsider. It wasn't different enough from a lot of the free resources out there to be worth it, to me. 

@Matthew Rescott Sorry you feel that way, but glad you got some value out of the course!

Just a heads up - all videos from the course and calls are posted, so if you missed any, or if there was a technical mix up, reach out in the FB group and let me know. I want to make sure you get access to everything you paid for.

Originally posted by @Dan Barrett :

Hey Matthew,

I very much appreciate the review of your call with Lou.

I want you to know - you can reach out to me any time, directly - whether on FB, Bigger Pockets, or elsewhere - if you ever want to talk. I'm here to make sure you have an amazing experience, and if for any reason we don't live up to your expectations, I want to know about it.

Cheers.


Dan (from adwords nerds)

This guy and his company has absolutely no integrity. Do Not work with them! They took my deposit  to start work, they never did any marketing campaigns. I asked for my money back and now they refuse. THEIFS!

I gave them $7500 to get our campaigns started, after months of back and forth the campaigns never started. I asked for my monthly back and for 6 months they tell me "sorry no refund". THEY NEVER PERFORMED SERVICES!!! THIS IS AGAINST THE LAW AND OUR AGREEMENT CLEARLY STATES THAT THEY DONT GET PAID UNTIL THEY RUN CAMPAIGNS.

@DAN BARRETT MAKE THIS RIGHT AND ISSUE MY REFUND PLEASE. I JUST WANT MY MONEY BACK THAT YOU STOLE

Originally posted by @Dan Barrett :

@Matthew Rescott Sorry you feel that way, but glad you got some value out of the course!

Just a heads up - all videos from the course and calls are posted, so if you missed any, or if there was a technical mix up, reach out in the FB group and let me know. I want to make sure you get access to everything you paid for.

DAN HOW ABOUT YOU GIVE MY MONEY BACK FOR THE WORK YOU DID NOT DO. DO THE RIGHT THING HERE 

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