BP Podcast 176: How to Close 100+ Deals In Your First 18 Months with Tom Krol

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Everyone knows it’s tough to find deals in today’s real estate market — but somehow our guest today, Tom Krol, didn’t get that memo! In his first 18 months, Tom closed over one hundred wholesale deals and has continued to dominate his market. In this explosive and highly entertaining episode, Tom goes into incredible detail on the exact methods he used to build out a highly automated real estate acquisition machine. And don’t miss the in-depth discussion on nine specific lists that Tom mails to; it just might change your business forever. Hang on tight — this show is about to rock your world!

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In This Episode We Cover:

  • How Tom got started in real estate
  • Why he had to sell his golf cart
  • The biggest mistakes he made when starting out
  • How he closed 100 deals in the first 18 months
  • The attitude successful wholesalers have
  • How to avoid “shiny object syndrome
  • How he finds real estate deals
  • What “the list” is
  • What a motivated seller really looks like
  • Tips for buying owner-occupied deals
  • How Tom became successful in this kind of investing
  • What you should know about “the rule of 5
  • Tips for using a virtual assistant
  • Why the money is in the database
  • How much he spends on direct mail
  • How many mailings per month he sends out
  • A discussion on bandit signs
  • How to get comfortable with making mistakes
  • How many hours he works per week
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “Progress not perfection.” (Tweet This!)
  • “Imperfect action instead of perfect planning.” (Tweet This!)
  • “Every single real estate deal, no matter what you do, starts with a good deal.” (Tweet This!)
  • “You’re going to make mistakes whether you have 4 years of education in real estate or none.” (Tweet This!)

Connect with Tom

About Author

Thanks for checking out the BiggerPockets Real Estate Investing & Wealth Building Podcast. Hosts Joshua Dorkin & Brandon Turner strive to bring top-notch educational content and interviews to our listeners -- without the non-stop pitch prevalent around the industry. With over 80,000 listeners per show, the BiggerPockets Podcast has become the biggest real estate podcast in the world. But don’t take our word for it. We’re the top-rated and reviewed real estate show on iTunes — check it out, read the reviews on iTunes, and get busy listening and learning!

49 Comments

  1. Andy Cross

    Awesome podcast. Lot of useful marketing information. As a newbie, 10 marketing tactics is a little overwhelming. But I’m thinking I could perhaps take on three of those with the limited amount of time I have in a day.

    • Tom Krol

      I totally agree with you Andy. When starting out, just keep it simple. The key is to pick “one” marketing channel…and just DOMINATE that channel! I talked about some of my favorite lists on the Podcast, but all of those lists fall under one marketing channel, direct mail.

  2. Don’t believe this Tom for a minute. 100 deals in 18 months,that’s a deal every 5 days,starting with no knowledge and no experience. I did approx. 2500 deals over 40 years and lending currently 10’s of millions of my own funds on hard money deals. You need to know the whole business from title searching to repair costs to real estate values to management. A couple of old quotes for all you want to be investors. “A fool and his money will soon be parted” and ” those who know how to, do. Those who don’t, teach.” I’m confident Tom has something he wants from you or to sell you. Check out John Schaub. Took his and his partner Jack Miller (now deceased) class 35 years ago for 300.00 for 3 days. Two totally honest, common sense guys. This stuff today is unbelievable. People who know nothing really about the business telling everybody how to do it and get rich in a year. It just doesn’t happen that way. Earl Minnis

    • Cody Barrett

      Hmm.. You seem to be judging a man’s work after an hour long interview? There was nothing trying to be sold here just like every other podcast delivered by BP. It is for educational and motivational purposes for people looking to open their minds up to how things are done in REI. He mentioned his brother was an investor based in California who taught him the ropes. “Kicking and screaming as my brother dragged me through all the highs and lows” His first statement was how he got crushed… This guy is simply showing how he wholesales, acquires deals, and grows his business.
      Not taking any credibility away from you but because your experiences have brought you one thing does not mean other people’s experiences in the same business won’t bring them larger success or less success, whatever the case. This site thoroughly explains that real estate investing is the farthest thing from get rich quick. Not one interviewee in the 176 podcasts has promoted get rich quick or that this is a walk in a park… I listened to them all. Take care though!

      • Julie Laskey

        I agree Cody. I didn’t hear, smell, or sense a sales pitch or feel like whipping out my wallet to buy anything once. He’s just an energetic guy talking about the past few years and what he’s gone through to be successful. He did claim he’s not perfect, and that he had no idea what pre-probate even meant ha ha!! He kept it real. Nobody needs to know it all before they begin, they just gotta start.
        Great interview guys! I want more like it – and women investor interviews please!!

      • rich urban

        @codybarret – I live in Tom Krol’s area & knew him when he started out.. Tom Krol is obviously a pathological liar if he claims that he completed 100 deals in 18 months. He drove to meet me at the Starbucks and asked me how i was able to do deals. On this day, he had expressed to me that he had only completed somewhere around three or four deals & earned a maximum of five thousand dollars. Normally I would discount this Earl fellow as a “hater”, but in this instance I know for a fact that Tom Krol is not being honest with his statements.

      • Cody, if your a pro why are you wasting your time watching 176 podcast ? Seems Rich has potentially confirmed my suspicions. Also seems Tom offers coaching. Another example of “he who knows how to ,does. He who doesn’t, teaches. Tom may get the Mr. Enthusiastic award but that’s it. Have some common sense guys. If it walks like a duck and quacks like a duck, it’s probably a duck. If you want to learn any business find a real pro to hang out with, work for him for nothing, educate yourself, get away from your computer and out in the community. These people on all these sites are ALL self serving. I’ve been buying and selling and lending my personal funds for 41 years now. Started with nothing when I was 20. Has been a ton of fun and hugely profitable. Use to be able to buy stuff 30 to 60 percent of value. Not now. The cat was let out of the bag 12 years or so ago. To much competition. There is always an uniformed person who will pay to much. I stay at home and lend money ,play with my 4 legged friends, travel.a quick word to the younger folks. Buy medium priced houses in good areas, manage them yourself, put them on 15 year loans, enjoy your family, get 10 or 20 and wait 15 years and your done. I’m technology challenged and it took me 30 minutes to type this,take care. Again, a word to the wise. Stay away from thes so called educators. EarlMinnis

    • Ronald Perich

      I’ve been following Tom since his brother, Todd Toback, took him on his “90 day challenge”. If you get a chance, you should find Toback’s podcast and listen to the series. Quite fascinating. And it gives you a better sense for where Tom started.

      Tom does have a coaching program, but he didn’t try to sell it here. You’ll notice at the end of the podcast how he sort of hesitates before going there, not wanting to “violate” the podcast.

      And if you are interested in Wholesaling (really marketing and negotiating in my opinion), you should listen to a couple of his podcasts. In this podcast, Tom was pretty specific about what he does. Some of his podcasts are even more detailed. Specific words. Exact marketing channels.

      I am not associated with Tom in any way. I don’t own anything he’s sold and I’m not coached by him. But I am thankful for his abundance mentality and how willing he’s been to put it all out there.

      And six deals a month a month doesn’t seem like a lot to me when you’re spending over $10K a month in direct mail and have built a network like he has.

      Maybe he’s a charlatan. If he is, he’s a pretty good one.

  3. Sachin Acharya

    Oh my God!!! This guy is ENERGY PERSONIFIED!!!!!

    I have been listening to Bigger Pockets Podcasts for the last few months.. And I’ve listened to every single one of them.. In terms of energy I think Grant Cardone, Hal Elrod, and this one are the top!!

    I love the part where he says if you want to do something as desperately as you would if your child was kidnapped, you would do it.

    Regards
    Sachin Acharya

  4. William Bans

    Hi, Tom!
    Listened to you on the Bigger Pockets podcast. Easily one of the best episodes.
    Question: I am a newbie, but could you elaborate on process on checking a property appraiser’s page? I’ve had my house appraised twice. I never knew she had a page.
    Thank you!

    –Will

  5. Kevin Schulte

    Loved it – definitely grabbing those books , I’m glad they’re doing these higher level shows but I’m left wondering, did Mr. Krol’s brother have all the info on the back end such as rehab estimates etc or did he teach himself that? it seems to me that if you know your market and have a good deal pipeline and a bunch of buyers that as long as you’re buying at the right price (60 cents on the dollar or what have you) you could do this as a newbie but maybe I’m being naive.

  6. Yes Kevin your being naive. In my opinion these are not high level shows. Did approx. 2500 deals over 30 plus years. Virtually all these people have very limited experience if any at all. They are attempting to be in the information selling business. Many are just outright liars. They are playing to the choir who has no money, no credit and no knowledge of this business and are being told they can make a lot of money quickly, retire rich or what have you with none of their own money and little work. The old saying “if it’s to good to be true than it probably is” is approperiate here.
    You mention the new age word “pipeline”. What is that? People calling you all the time with 60 percent of value deals? I don’t think so. Those are totally fluke deals today. I get 5 cards or letters almost every week on my rentals. The competition to buy wholesale deals is fierce. I lend to a few people that have been in this business for numerous years. Again it has gotten so competitive the margins have gotten fairly thin and if you stub your toe ,which does happen, you loose some money.
    Better to find an area in the country and buy 10 or 20 of the right houses in a small area. Hire your own property manager that only works for you. Put them on 15 year loans and wait 15 years.
    Another important item. This is a mortality game. In my opinion it should be started and the aquitition part completed before age 50 foresure.
    When I was buying I would get people who wanted me to teach them how to do it because they saw I was making some great money. That was in the days you could buy them for 30 to 65 percent. I never would do that for two reasons. Number one I was working 60 or more hours per week making my killing and why would I create my own competition ? Good luck, Earl Minnis

    • Katie Rogers

      Earl, You say you get 5 cards or letters almost every week. Those would be “driving for dollars” letters where someone drove by an ugly house that clearly needs work, looked up the owner in at the recorder’s office, and sent you a letter. If your rentals were in better condition, you probably would not get those letters.

  7. Dan Graney

    So I am a bit confused. Should I start looking for a deal even though I have no idea how I would finance it or whether or not I could wholesale it? I agree with the concept of just get moving but would have a hard time sending out a mailer that reads something like “We buy houses”. I would not want to mislead or represent what I could do for a potential home seller when I am not really sure what I could do for them.

  8. rich urban

    @Tom Krol – Someone just forwarded this to me & I’m not happy about it. It’s a recording of you refusing someone a refund and then saying it’s because of the post that I made on here? Tom, I have no idea who that kid is. You’ve made many false claims against me & this is unacceptable. Please have one of your three attorneys contact me first thing Monday morning.
    Here’s the link that I’m referring to:
    iTunes:
    https://snar.ly/itunes-tom-krol-lawsuit
    Google Play:
    https://snar.ly/gp-tom-krol-lawsuit

    Kindest Regards,

    Rich

  9. @Rich Urban- Dude you’ve been ripping this guy all over WHFT and other groups on Facebook for months! If clowns like you and Polizi focused on your business instead of tearing succesful people down maybe you would actually make some money. U guys crack me up.

    • rich urban

      Rich Minnis – No I have not been bashing him for months. I have nothing to do with Mr. Polisi & I think that you’re confusing me with him. With that being said, if I see someone being deceptive or outright lying about something, of course I’m going to call it out. I see way too many new investors get suckered into these schemes and end up in financial ruin.

      In this instance, I know for a fact that Tom Krol did not close 100 deals in 18 months. As I had mentioned above, I live in Tom Krol’s area & knew him when he started out. He knew that I was one of the top investors in our area & wanted to learn from me. I agreed to meet him at the South Beach Miami Starbucks. On this day, he had expressed to me that he had only completed somewhere around three or four deals & earned a maximum of five thousand dollars. Just a few short months later I learned that he was taking on coaching clients. I found this to be appalling, but kept my mouth shut. I regret keeping my mouth shut because I witnessed several newbies lose a lot of money to him & his marketing strategy. You’re right Rich Minnis, I probably shouldn’t waste so much time responding to these posts. However, I feel morally responsible to tell the truth & regret not speaking up sooner.

  10. Christopher Cage

    The podcast mentions the database of leads holding all the value. Being able to contact leads repeatedly. I wonder if Tom has a recommendation for database or CRM software? Not sure if they mentioned anything specifically or not.

    Thank you.

  11. Julie Marquez

    Fun show! I’m inspired to just get moving! Experience is a great lesson, and it won’t kill me even if it doesn’t go well. I just might have to sell my golf cart. 🙂 Thanks for sharing all your knowledge with such high energy!

  12. Martin S.

    Watching the podcast gave me sooo much motivation. As I neared the end I had the exact same feeling that I had at all those Real Estate seminar ‘scams’, where there was soooo much success with no proof and fuzzy numbers and their info was directly taken from online forums. Then I did some research and its pretty obvious, just another ‘motivated’ scammer. Sad that BP would glorify this guy and put him on a podcast, even sadder is that the podcast is still up, along with the other scammers. I’ve watched maybe 6 podcasts, and 3 are definitely misleading ‘scammers’, one of the other ones is just a scammer who is bragging, the other 2 seem legit but they of course explain that this is not an easy thing to do… sad, very sad, bp….

  13. Steve Oxenreider

    I have to say this was a great podcast.

    Unfortunately, I also have to say if it sounds like a guru, smells like a guru… guess what it is.

    I figured if this one was good, his podcasts must be as good or better, right? His podcast shows 71 episodes, but the only one available is episode 71, which is a 10 minute sales pitch. It is completely devoid of any useful information. I honestly was shocked at how shamelessly he calls upon the listener to “join the tribe”, to visit this new website to learn the new strategy from the secret guy that will transform your business overnight.

    There are no shortcuts, if you’re foolish enough to believe that there are, by all means, take out a second mortgage and “join the tribe”

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