I'm officially in business - My Tale

I'm officially in business - My Tale

Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes

I've finally done it. My first batch of yellow letters went out yesterday. Whoever said that thinking doesn't cure fear but action does was spot on.

I know Greg Smith's thread is popular so I figure people might enjoy another. I'll never live up to Danny Johnson's weekly updates from his earlier days at Flipping Junkie of course.

I am 34 and I joined BP in March of 2011. I started reading and learning about wholesaling but never really gave it my all. I started attending a REIA back in RI where I lived and I knew I wanted to leave corporate America (been working at a mutual fund company for 12 years now) but I always had sub-conscious fears of the unknown,failure, etc. I also joined Sean Terry's Flip2Freedom academy because I love his podcasts. In my opinion, it's well worth it. He's a great guy and I was happy to shake his hand at his Dallas event.

In December of 2011 I moved to Texas as an optional move for work and I let that be a terrible excuse to not take action with real estate. I continued to learn and listen to podcasts and read books and I let that delude myself in to thinking I was doing something. I know now it's because reading another book was easier than getting out of my comfort zone.

noob tip #1 - Don't do that. You don't need to know everything about step #20 to start. You only need to know step #1. If you have a deal, there's plenty of smart people that will help you get it done for a slice.

noob tip #2 - Don't overcomplicate things. Wholesaling really is as simple as finding someone that needs to sell and someone else that wants to buy. The sooner you realize that, the sooner you'll take action.

noob tip #3 - There is NOTHING to be affraid of except perhaps the pain of regret of not ever getting started.

Now, about those books....reading Think and Grow Rich did probably set things in motion for me to really start taking action, but perhaps better than that is a 3 Disc audiobook by Brian Tracy called Goals: How to get everything you want faster than you ever thought possible. It was the best $10 I ever spent. I was also living in,getting out of, and getting over a tough relationship for the past year which was a real momentum killer.

I don't want to write a novel here so I'll end the first installment by thanking all the staff at BP and all the amazing people who give back by contributing and helping the little people. One of my goals is to do the same.

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Beaverton, OR · Member since 2012 · 41 posts · 23 votes
13y
Originally posted by David Tower:
Josh I know you're a podcast guy. Take a listen to episode #27 of REI Mastery with Joe Mccall if you have a few minutes.

Just got done listening to that episode, and I have to say, it drove me NUTS!

"I'm sure the house is sold already, right?"

"Surely the house isn't vacant is it?"

"I'm sure you must have good tenants in there?"

"The house can't be costing you any money, right?"

"How do you feel about this?"
--"That sounds good."
"What?"
--"That sounds good."
"What does that mean?"
--"Um, I'd be interested in getting more information"
"And then"
--"Yeah, I'd like to do that."
"I'm sorry, I couldn't hear you, my hearing aid fell out."
--"Yeah, I'd like to do that, yes"
"Oh, okay, great."

I was actually *annoyed* just by listening to this role play. As someone who's been in sales for quite a while, I am acutely aware of the techniques of using presumptive questions, and making the client repeat themselves. It's just so manipulative and slimy. Early in my sales career I tried these techniques for about a week before giving up. It always seemed to agitate my clients, and sometimes I got the impression that they felt like their intelligence was being insulted. And I feel the same way when others try it on me. But hey, your mileage may vary.

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  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    13y

    Congrats David. Hope you find much success. DFW is a great market, and sometimes seems a little crowded. Just stay persistent and you'll find the deals. Don't be such a stranger! Say hello sometimes neighbor...

  • Real Estate Investor · Dallas, TX · Member since 2012 · 19 posts · 0 votes
    13y

    Way to go David! Good luck, and lets us know how your yellow letter campaign goes

  • San Angelo, TX · Member since 2013 · 22 posts · 1 vote
    13y

    Way to go David! It is simple, but not easy. Get your phones, contracts, etc lined up and rolling. Get a system and you will keep your momentum. Best of luck

  • Investor · Upland, CA · Member since 2012 · 45 posts · 5 votes
    13y

    Awesome David!

    Way to go, I wish you success and remember:

    "Greatness from small beginnings "

    - Sir Francis Drake

  • Wholesaler · Orange County, CA · Member since 2012 · 53 posts · 9 votes
    13y

    Good Job David!

    What yellow letter did you end up using?

    Keep us updated! I always like to read about response & conversion rates after a mailing!

    Good Luck!

  • Beaverton, OR · Member since 2012 · 41 posts · 23 votes
    13y

    Right on David! Reading your post got me fired up. All the stuff for my yellow letters (envelopes, paper, pens) came in the mail yesterday and I'm sitting here writing them right now.

    Sean Terry's podcast rocks, I started from episode 1 a few weeks ago and I'm currently plowing through all of the episodes, I'm about halfway through. He seems like a really good guy.

    Interestingly, I just listened to an episode of Matt Theriault's podcast "Epic Real Estate Investing" (episode 44), and in it he interviewed one of his coaching students who ALSO worked at a mutual fund company and is now wholesaling. I think he was from Seattle. That's another quality show if you haven't listened to it yet.

    Anyway, best of luck to you and please keep us posted on how things go with your first mailing! How many did you send?

  • Investor · Washington, Washington D.C. · Member since 2012 · 239 posts · 168 votes
    13y

    David, I don't even know you and I'm proud of you! You've surmounted some big obstacles. Go forward and thrive!

    I'm doing it via a different path: getting a real estate license, attending many REI meetings a month, meeting one-on-one with anyone who would talk to me. Have been amazed at how generously people share insights and ideas. I have a growing excel sheet of colleagues I can call for advice and help. Through these contacts I slowly developed an idea of how I want to focus my business.

    I formed an LLC, which is easy in Washington DC, and have put up a website, which we're still tweaking. My colleagues were very helpful in reviewing and critiquing it.

    Also sent out my first mailer. FWIW you were wise to stay away from Click2Mail, which is the frequent choice of RE agents. I've learned this the hard way. I'm getting a refund and working on a new one through a different mailing org. This is frustrating but not life-threatening.

    Thanks for mentioning the Sean Terry podcasts, which I'll tune into. But I have not found books to be helpful. Is it me, or are a lot of writers using their books to broadcast how overly impressed they are with themselves? I found interesting tidbits tucked into some books almost accidentally, but on the whole I have not found any I'd recommend.

    Oh, and with guidance from BP commenters, I hired a local mentor last month. He has no other students and is still working quite successfully in the business. His advice and support are very helpful.

    BP, as you've deduced, is a gold mine.

    Nancy Roth

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y

    Thanks for everyone's kind words of encouragement.

    Jerry Puckett One thing I forgot to mention is that I LOVE Texas. The people are super nice and the weather is just a tad better than New England. DFW does seem saturated, and sometimes I worry about competition, but I do try to keep an abundance mentality. If Sean can do 20+ deals a month in a market like Phoenix, I think I can do 2.

    Joshua S. I actually just listened to that episode yesterday. Check out Todd Toback's No Limits podcast. It's very good along with Joe Mccall/Alex Joungblood's REI Mastery.

    Nancy Roth Sounds great, keep it up!

    One thing I did to learn about wholesaling was to read every post of every thread in the wholesaling forum. I recommend anyone starting out to do the same. One thing that really annoyed me though, was the people who would suck me in with a story about a deal and then never post the final results! So, I promise not to do that.

    I'm starting small. I have a targeted list of about 600 names and I'm mailing 150 per week. My letter is the basic yellow letter that I am hand writing myself. Tip: use a sharpie, not a fat marker it's easier to read. It's really not "that" bad writing them myself. I get up early on the weekends and bang out 50 at Starbucks, write them while watching a game on TV, etc. My total cost is about 60 cents each all in.

    I put my google voice # on the letters and will call people back at lunch or after work. The number of calls/deals I get will dictate how soon I double my mailings. If I only get a few calls, I'll expand my list and if I get a deal I'll probably outsource the letters and do the same. I will continue to mail the same people each month.

    I'm also setting up a website for buyers in the next few days and I'm looking in to placing some classified ads. I may also cold call fsbo's and for rents.

    This weekend I worked on my phone scripts. I really like Claude Diamond's stuff. The REI Mastery episode with Claude was my inspiration. I watched a lot of his youtube clips and was able to get some other good tidbits. That, along with Sean's material from Flip2Freedom and suggestions from BP. I'll post it here for a critique tonight.

  • Landlord · Dallas, TX · Member since 2012 · 505 posts · 34 votes
    13y

    David Tower Grats on taking action, please do keep us updated on your progress.

    Also, would you mind clarifying, did you just start your mailing campaign or have you already closed on a deal or two?

    Good luck :)

  • Investor · NW Indiana · Member since 2012 · 833 posts · 197 votes
    13y

    David, that is great your are taking action. You sound very enthusiastic, don't lose that. Just keep moving forward.

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y
    Originally posted by Samantha M.:
    David Tower Grats on taking action, please do keep us updated on your progress.

    Also, would you mind clarifying, did you just start your mailing campaign or have you already closed on a deal or two?

    Good luck :)

    Just started mailing over the weekend. I'm excited to have calls coming in soon but I'm also ready to face roadblocks.

    I'll paraphrase a great quote here "The best part about earning a million dollars is becoming the person you need to become to accomplish it" or something like that.

    All I know is something is different inside me now. Action begets more action. I'm looking forward to my 7:30-4 workday ending so I can go to work on real estate.

    I even went out and bought my dream car. I've always wanted a Volvo convertible and now I have it after using negotiation skills I didn't know I had to get a good deal on a used one. Not only do I love it, but it's also helping with my abundance mentality. "what, me worried? No way! I'll go buy a new car on a whim" ok...so there's a bit of exaggeration

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y

    Ok so here's my basic template for a phone script. In addition to this basic template I have a good "net sheet" and doomsday scenario to explain away listing with a realtor. I'm still working on how to work in talking about price and asking "is that the best you can do?" I'm basically going to follow Sean Terry's advice on that.

    Most of the script is from things I learned from Claude Diamond (G.U.T.S. sales mentor). I'm going to buy his course. He has a great podcast episode with Joe Mccall and some stuff on youtube. If some of it sounds silly, he fully explains the psychology behind it that I won't get in to here.

    1. Hi Dave Tower here is this Bob/555-1212?

    2. I'm sorry I'm a little embarrassed I got a voicemail but all I got was the number. Why am I calling?

    3. A. It's not about real estate is it? (if they don't tell you)
    B. Oh you got one of our letters? Great! I'm sorry for my lousy handwriting.

    How can I help?
    It's probably sold already right? (no)
    But you are ARE looking to sell? (If yes, continue)

    4. Do you have the house listed with a real estate agent? (If no, continue)

    5. Do you mind if I ask you a few questions to see if maybe we can do business today? It's ok to say no to me. I want you to feel comfortable so if something's not right with the deal, or whatever I propose it's ok to say no to me . You don't have to tell me you'll think about it or you'll get back to me you can just say no and we're still friends is that ok with you Bob? Great.

    6. Is this your own home or an investment property?
    a. They live there - Oh ok well what's the situation?
    b. Absentee - where do you live now if you don't mind me asking? California? Wow! How's that working out for you being so far away?

    7. The house isn't vacant though is it?
    a. yes it is - Yikes! You must own it free and clear then right? No? Oh my gosh how long has it been vacant?
    b. no - well i'll tell ya, I turned my house in Rhode Island in to a rental and it's been a nightmare. (true story)

    8. Who's living in the house now? Are they good tenants? How long have they lived there? Are they month-to-month or on a lease? And the lease is up when? How much does it rent for? Do they pay on time? Is there an HOA fee?

    9. Can you tell me about the house?

    beds/baths how's the foundation?
    year built HVAC?
    how's the roof any repairs needed?
    nice neighborhood?

    10. It sounds like a nice house, why not just fix it up and keep it as a rental?

    11. What about listing it with a realtor? If you can afford to wait 6-9 months that might be a better option for you.

    12. Why are you looking to sell? (if I don't know yet) But you probably don't need to sell right away do you?
    ----------------------------------------------------------------------------------------------------------

    what'ya think?

  • Beaverton, OR · Member since 2012 · 41 posts · 23 votes
    13y

    Looks like a pretty thorough script... but... it's so long!

    Personally, I'm going to go with Matt Theriault's strategy... find out if there's motivation, set the appointment, and get off the phone quickly. You'll have plenty of time to get all of the nitty-gritty details when you go to their house. Ultimately, I think this strategy would waste a little more time by going to meet with more dead-ends, but I don't think I'll mind that. Especially while I'm a beginner, needing experience. The more repetitions the better. His script was something like this:

    "Tell me about your situation," shut up and listen.
    "What do you want to have happen?" shut up and listen.
    "If we were able to come to an agreement, how soon would you want to sell?" --Listen for motivation!
    Set the appointment if it sounds like a winner.

    It cuts to the chase, should get most of the relevant info, and gets them to like you by building some subtle rapport (you're quietly listening to their sob story).

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y

    Josh I know you're a podcast guy. Take a listen to episode #27 of REI Mastery with Joe Mccall if you have a few minutes.

    *status update*

    I've written down my most important task to work on. They are:

    1. perfect and practice script and pitch to sellers
    2. improve deal analysis skills
    a. figuring ARVs
    b. determining max offer price, and calculating repair estimates.
    3. finalize plan to sell properties
    4. seller's page website
    5. biz cards

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y

    Boom baby. It's not much, but I just received my first call off my letters. I'll call them back after work

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y

    What a day!

    I sent out 160 letters on Saturday. Today while at work I got 3 calls, 2 of whom left a VM and another call after work. Four calls on day one seems pretty good to me.

    I spoke to 3 of them and couldn't reach the one who didn't leave a VM.

    Man that was stressful. At least each one got easier and easier.

    call #1 - I completely and totally blew this one. I pulled the house up on redfin and it was immaculate. Picture perfect. I had it in my head going in that there's no reason they couldn't get top dollar listing it and so I basically called them and told them that in so many words. My one regret is that I didn't even ask what they'd take for a cash offer. dumb dumb dumb

    funny story though is when they left me a VM, they didn't hang up so i could hear them talking for 2 minutes after. They were curious about the letter and I heard the husband say "they'll probably make a lowball offer" I was saying to myself "please talk to your lovely wife about what you'd take for the place"

    call#2 there was definite motivation, but only about a 4 or 5 out of 10. man in Louisiana has his daughter living in the house. After telling me about the house I got him to tell me his reason for interest was the distance and that he could use the money. not bad right? But, his ballpark number was high and he wasn't opposed to listing it. I got his info and he's ok with me following up

    call#3 Nice woman from CA. Early in the conversation she said she talked to a realtor who told her she could get 100k but she wasn't in a rush. I told her based on what I'm seeing in her neighborhood that seemed high but there was no motivation no need to drag it out.

    I tried to pitch seller financing (all were free and clear) but botched that also. Call #2 guy was interested enough to ask "how much would I be financing?" I said depending on the deal we could probably get you a few thousand down but the rest would be financed. I probably should have said "what would work for you?" or something like that

    I also completely forgot to think about referrals for my realtor friend.

    My script from my previous post went straight out the window but that's fine. I need to simplify it for now.

    some will, some won't, so what...someone's waiting.

  • Real Estate Investor · Gilbert, AZ · Member since 2009 · 21 posts · 2 votes
    13y

    Keep it up!!! You are on the right track. The gold is in the follow up, so don't throw any lead away. Especially the one where you told them they would get top dollar. You planted that in their heads and now when you call back and "Claude" them by saying something along the lines of how embarrassed you are to call them because it has surely sold by now, they may feel doubt in their price. Then you offer cash or seller financing.

    You are on the road I was this time last year. I almost had one deal that would have been a home run. Easily a 20k+ deal, but it fell through and I made the mistake of letting work take over my life again. I got two promotions but now I am 400 miles from home on a business trip. I am making more money now but my goal is to be home more for my kids. Funny how easy it is to lose sight. Learn from my mistakes and push through.

  • Wholesaler · San Francisco, CA · Member since 2012 · 259 posts · 147 votes
    13y

    David Tower What an awesome thread you started here! My first two jobs out of college involved cold-calling 50 - 75 people a day, so take it from someone who has been there - it only gets easier as time goes on. At first you'll be super nervous with sweaty palms and a palpitating heart. After about 25 calls or so you'll be comfortable. After about 50 you'll be checking ESPN while fielding these calls. Practice makes perfect, I guess.

    Glad to read that your script went out the window when talking with these people. One thing I've learned is that it's immediately apparent to the person on the other end of the phone if you're using a script - everything sounds so forced and the conversations suffers because of it. And I can't tell you how many times I've heard co-workers keep going with their pitch and completely ignore what the prospect said because they are too busy sticking to their script. Listening is key is any sales environment! However, with that said, I think a checklist to make sure you've asked all your questions/got all the information needed is important, especially when beginning. There is nothing worse than calling a prospect back because you forgot to ask a basic question.

    I'm waiting on my printer to be delivered tomorrow and then I'll be sending out my first batch of yellow letters and probate mailings. You've given me some inspiration to post about my results as well. Keep on updating us and let everyone know how things are progressing. Best of luck!

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y

    Brandon Foken the funny thing is, I am the guy at my current job that takes the "escalated" or manager calls. When someone is fired up and they want to talk to a supervisor they talk to me.

    Of course, I started at the bottom 12 years ago and I took more than my share of calls back in the day. Sometimes when we're busy I take some calls and it's like riding a bike.

    I'm sure someday that skill will translate over to REI when I get more comfortable.

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y

    4 more calls today for a total of 9 in two days.

    3 tire kickers but one of them is pretty interesting. A gentleman in Los Angeles called and initially said he'd take 70k for house that "could" be worth 85k. After talking with him more I asked if he'd consider something around 60k and he said maybe.

    Not having MLS is killing me here in TX. I'm still not completely sure what an end buyer is going to want to pay based on a ballpark price I can figure from current and recently sold comps from redfin. I know recently sold means recent list price here, but I also know that north texas had a 94% sale to list price ratio last month.

    So, I called a buyer I know who likes that area and told him about the deal. We did a conference call and he was able to uncover some things that raises new questions. There's a slight language barrier and my buyer knows spanish. I'm waiting to get the property manager's phone number to follow up with him.

  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    13y

    Try Investway.com for running comps. Next best thing to MLS in north Texas. I used it exclusively before having my own MLS access.

  • Residential Real Estate Agent · Fort Worth , TX · Member since 2012 · 211 posts · 152 votes
    13y

    In addition to what Jerry recommended, you could also take a look at Property Analyzer Pro. The comps all come from the major North Texas MLS, NTREIS. These are the same comps I would have available to me using my real estate license.

    Access to the web based software is $49.50 per month, but I do believe they offer additional discounts if you do an annual subscription.

    Link: http://www.4closure.info/property-analyzer-pro.aspx

    Do not use programs such as redfin, trulia or zillow to run comps. They are based on an algorithm. Its a decent assessment to gauge how the area or subdivision is performing, but not for pricing individual comps. Do a search here on bigger pockets for more in depth discussions.

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    13y

    well my first potential deal is fizzling out. The seller isn't returning my calls.

    BUT...lucky call number 13 could be a super sweet deal. This is the type of deal that the gurus pitch to make wholesaling sound easy.

    I got a call at work and I wasn't going to call back until tonight but then they called again. I tried at lunch because that screamed motivation and got voicemail.

    I spoke to the woman who's husband is overseas and she lives out of state. She needs to get rid of the house here and has no interest in using a realtor. Wow...it's downright easy to talk to a seller who's actually motivated.

    Now here comes the catch. She spoke to her husband and the person living in the house is a relative that he wants to give two weeks time to see if they can purchase the house with a VA loan. She doesn't think it will happen and is calling me back in a week.

    I was really digging to see how I might be able to help the tenant. They don't want to move before school year is over so I was trying to make it clear that I can work with the tenant to stay until then and maybe even give them cash to move or find them a more affordable house to buy. There's emotion there and I think that If I can find a solution for the tenant I can get the deal.

    13 calls in 4 days off 160 yellow letters. Yeah I'd say they work. I'm finishing up next week's batch and will mail them no later than monday.

  • Beaverton, OR · Member since 2012 · 41 posts · 23 votes
    13y
    Originally posted by David Tower:
    Josh I know you're a podcast guy. Take a listen to episode #27 of REI Mastery with Joe Mccall if you have a few minutes.

    Just got done listening to that episode, and I have to say, it drove me NUTS!

    "I'm sure the house is sold already, right?"

    "Surely the house isn't vacant is it?"

    "I'm sure you must have good tenants in there?"

    "The house can't be costing you any money, right?"

    "How do you feel about this?"
    --"That sounds good."
    "What?"
    --"That sounds good."
    "What does that mean?"
    --"Um, I'd be interested in getting more information"
    "And then"
    --"Yeah, I'd like to do that."
    "I'm sorry, I couldn't hear you, my hearing aid fell out."
    --"Yeah, I'd like to do that, yes"
    "Oh, okay, great."

    I was actually *annoyed* just by listening to this role play. As someone who's been in sales for quite a while, I am acutely aware of the techniques of using presumptive questions, and making the client repeat themselves. It's just so manipulative and slimy. Early in my sales career I tried these techniques for about a week before giving up. It always seemed to agitate my clients, and sometimes I got the impression that they felt like their intelligence was being insulted. And I feel the same way when others try it on me. But hey, your mileage may vary.

  • Wholesaler · Mandeville, LA · Member since 2013 · 15 posts · 0 votes
    13y

    This is an awesome thread David.

    It sounds like we are on the exact same path when it comes to our investing. I have listened to the same podcasts and I'm just finishing up Think and Grow Rich. I will be starting with bandit signs in the next few weeks along with getting an absentee and pre foreclosure list from list source which I will use to start my yellow letter campaign.

    I love listening to the flip2freedom podcast. He seems like a genuine guy. I don't know if he would be considered a guru but even gurus have beneficial advice sprinkled into their sales pitch. I don't think this is the case with Sean Terry but I could be wrong.

    Definitely keep us posted with your progress as will I with mine.

    P.S. How is the Flip 2 Freedom Academy? Would you recommend it?

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