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How You Start With Wholesaling With David Olds

Episode 509: How You Start With Wholesaling With David Olds

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REIS 509 | Starting With Wholesaling

 

There are so many ways to get into the real estate industry. What is the best way to jumpstart your career in this field? Mitch Stephen and David Olds discuss how you start with wholesaling business, innovations, and dispositions. David explains how you could be an expert in making cash offers and understanding cash buyers funding your business. Learn how you could build wealth in real estate in a way that you could quit your full-time job and achieve financial freedom! Tune into this episode to be fully equipped with the knowledge you need to scale your business.

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I’m here with David Olds. He’s in Tennessee somewhere. He’s a specialist in wholesaling. That’s interesting because almost everybody I know started out wholesaling to get their foot in the door, get some confidence and hush money in the bank. For those of you all who don’t know what hush money is, that’s enough money in the bank because sometimes, there’s a naysayer spouse and we got to satisfy that problem. It’s a great place to launch from. You can learn a lot about the business in those early stages and you can get good at a lot of things.

Wholesaling requires the same thing as almost every business marketing. That’s the key. Before we start off, I’d like to thank my sponsor, LiveComm.com. There’s a reason why my seller-financed houses only stay on the market for about an average of four days on the market. I’m using LiveComm to capture all the people calling my signs. I’m capturing all their cell phone numbers.

My sign says, “Seller finance homes for sale. Give me a call.” I capture their phone number. I can text them for $0.02 apiece every time I have a house for sale with seller financing and I can do it in 30 seconds. I now have 10,000 people that refuse to get off my list. I send out text messages that say, “Please, if you don’t want to own a finance home anymore, reply with stop and get off my list.”

I still got 10,000 people. I email out links to the next property. I don’t even use signs anymore and I didn’t even have to use signs after I got about 3,000 people. It was all I needed. Three thousand targeted people that I could hit with a message for $0.02. There’s so much more to do with LiveComm. Check it out. Watch the videos on the home screen and then let it run. It doesn’t have to be for real estate. It could be for any company that would like to be able to text their customers that have called their advertisements, signs, office, or any place. I paid the bills, David. Let’s do a little background. Where are you in Tennessee?

I’m in Chattanooga, Tennessee. Whenever I say that, people always ask me about the Chattanooga Choo Choo because that was a big song in the ’40s and ’50s. Chattanooga is at the bottom, the Southeast side of Tennessee. It’s exactly two hours North of Atlanta or an hour and a half to where my wife drops.

I want to know how far you are from Nashville?

Your life is just a series of trials and tribulations that you're overcoming. Click To Tweet

About two hours. My wife drives an hour and a half. She drives significantly faster than me.

I’ve been writing songs for 47 years. It’s one of the best-kept secrets in the world. You went through the crash in Florida and as you said, all hell broke up the end of the world. Did you move because of that crash or are you going to move anyways? Did you say, “I got to find a more stable climate?” What I mean is financial real estate climate that you can function in. Is that why you moved?

You headed exactly right. Initially, even though we were investing in rehabbing, I worked as a salesman for ProBuild and 84 Lumber. My wife was a purchasing agent for a large custom home builder. Not only did our real estate business take a dive but our business and our everyday jobs were there to be dived. Initially, we had some properties there and we were looking around the Southeast to find a place to invest in some small multifamilies that we could manage from Orlando.

We picked up 1 or 2 here in Chattanooga for duplex and managing that remotely was a little bit of a struggle. It’s 577 miles. I know because there was a Saturday where I had to race up here to deal with the property. Once the crash happened, we realized we needed to find a better place. A place where the market hadn’t been affected so drastically.

I want to take my hat off to you. I got to put it off here because that is what so many people need to do to find themselves in the finest business. Some people that I talked to were in the wrong place to do this business effectively. There are ways to do it but the barrier to entry is so high. A three-bedroom, two-bath house in California could be $600,000 or $700,000. It makes your ROI. It’s tiny, your risk is high and your return is low. I’ve known some people and I’ve coached a few people that finally got it.

I said, “You need to get the hell out of there. If you’re holding your head above the water where you’re at, you will kill it in another place.” A few of them went on to do that and they became multimillionaires in a short period of time because it’s like dragging around 100-pound weight and then all of a sudden, they cut it loose and you don’t have 100-pound weight anymore. You can run that sprint lot faster and easier.

That’s what we found coming from Orlando, which is a very sophisticated investor market. We have the third-biggest REIA in the countries on Orlando, and then we came to Chattanooga and one small REIA that would have eight people there, not sophisticated at all. These guys had no idea what an assignment of the contract was. We had to educate title companies. We did some pretty innovative stuff back then, but we were the first people to be in town and doing any wholesaling on a big scale, and because of that, we were able to just dominate the market for a long time.

There are some affordable houses in that part of the country, and back when you moved, they were even more affordable. How I started my career in San Antonio, no one would give me a loan. I didn’t have any private money. I didn’t know about private money, but even if I did, I didn’t have the belief system. Who’s going to loan me money, which was a big mistake.

I didn’t have the belief system. I had a limiting belief system but I had good credit and I could get credit cards. I bought my first 100 houses on credit cards because, in 1996, houses in San Antonio were $8,000 to $12,000. In the lesser parts of town is $15,000. This is credit card money. Also, back then doesn’t work now, but I learned that if you had good credit, you applied for a card, they gave it to you with all the benefits and all the cash advance. As soon as I figured that out, I went out and applied for 75 credit cards. I got 55 of them, and then I bought 40 houses.

REIS 509 | Starting With Wholesaling

Starting With Wholesaling: We need to wholesale low because we’re in a recession, and we have to provide value to our buyers.

 

Mindset is so crucial and everybody has that. All of us, no matter what level we’re at. You have that day where you’re like, “There are no more houses to buy. Nobody else is going to buy a house from me.” You have to be able to shake that off and get through it. When we came to Chattanooga, we knew nobody. It’s the perfect story we rolled into town, we burned the boats, and we built a business, friends, connections, and life. I knew one realtor who I had talked to on the phone and I drove around with him one day when we were here on a visit. We came here to do real estate. We were very single-minded in that approach.

That takes some guts. That’s why I take my hat off to you. How much better is your life since you did that?

It’s fantastic now, but the night I got here, I cried myself to sleep. I’d tell my wife, my two boys and my three fat dogs. We moved and we bought this house on owner financing. It was worse than I thought. That person I had laying there, I’m like, “God, I made a terrible mistake. This is the worst thing ever.” People always hear these stories and they’re like, “Everything was just right.” I think it’s not. Your life is a series of trials and tribulations that you’re overcoming. It worked out great. I tell people I was too dumb to quit but sure. It’s hard. Anything worth achieving.

You go there to buy these apartments, but then the recession is continuing on. Nobody is loaning any money. It’s hard to borrow money for apartment complexes and stuff, which is, by the way, just so I can throw this in, my strategy of seller finance boomed in the recession. I was buying a house a day, but the key was I had, in previous years, built a ton of trust and a large level of cash reserves that I could reach from private lenders.

The banks were closed and the prices of the house were falling but I didn’t need a bank to buy the house. I was getting 8%, 9%, 10%, 5-year, 7-year, 10-year from private money. I was creating these lists selling the houses for 100% more because the rent said I could. We know we can buy a house. Everyone is a renter. I want to say I didn’t plan it that way. I just happened to be in a strategy that I learned and boomed in a recession, and then my buyers didn’t need a bank to buy my house because I was carrying the financing. It was the perfect storm. The banks had closed and the only way to buy a house was from Mitch Stephen because he’ll give me payments.

Our situation was pretty similar too. When we were in Orlando, we were doing a lot of pre-foreclosure marketing. We were so good at it. Sometimes, our letter was getting there before the Lis pendens was signed. We come to Chattanooga and we need to start wholesaling. I know that we need to wholesale low because we’re in a recession and we have to provide value to our buyers.

I love to say it was because I was so smart, but what I did is I’m like, “I don’t want to mess with anybody that’s in foreclosure. I’m not the short-sale guy. I don’t want to do any of that nonsense.” I started pulling lists of free and clear properties. That sounds great. Everybody is telling you to do that. I’m going out and I’m saying, “I’d love to buy your house.” “I’m at $40,000.” You’re like, “I need $60,000.” If I couldn’t turn it into a wholesale deal, I’d be like, “I bumbled my way into this. Mitch, do you need all the money at once?”

“No.” “Cool. Maybe I can work something out. Let me work up a couple of different ways that we can buy this property.” We backed into the owner financing. Again, it was created because we were in a recession and people didn’t want their houses. You remember to like, “We have low equity. I’ve got to let this thing go back to the bank.” If we did get a mortgage person that could take it sub-to or it was a free and clear person off of our mailing list, we’re able to wholesale a property or if we couldn’t get it at the right number, we turn them into owner financing.

One thing bounces to another and you end up landing on wholesaling. It’s out of necessity because you got to do something fast and you got to get some money. This is what I always tell people too. If you don’t have any money, find a plan that works with no money. There are a lot of plans out there. There are all kinds of ways to get it done.

When you don’t have money, you’re a professional deal finder because if you’re a good deal finder, you’re worth money and those deals that you’re finding are worth money, then you go from there. We won’t go into the details of it but you’re a professional deal writer. That’s what I like to say because you are not really smart and good, you are the guy who has that contract and the right to close 30 to 45 days. You got a lot of power and tying up a lot of assets.

I use that example all the time. I say everything is in life and time if you have money. When we came to Chattanooga, we had $5,000 between the three of us. In 2009, not very impressive, but we found a way to make it work because we had no money, but we have all the time in the world. We woke up thinking about wholesaling. We did wholesaling during the day. We went to bed thinking about it. We’re driving for dollars, putting out signs, calling people, door knocking and we’re doing every single thing that we can to make it work. We literally bootstrapped the business up. Now I tell people I’ve got a little bit of money and less time so I’m able to do some different things.

That fear is a great motivator, isn’t it?

Yeah. It’s even when I was in sales and building materials. An older salesman taught me that. This guy is named John. I’m like, “John, you had a great month. You sold $400,000.” He’s like, “Yeah, but now is the first of the month, we all started zero.” I’m like, “Okay.” He really instilled that, and once you do a deal, you got to move on and get the next one. We can’t sit around and talk about that great deal I did months ago. I tell people like, “I have a wife, two boys and three fat dogs. My fat Petunia, the English bulldog, loves cookies. I got to go out and do some deals. I’ve got to find a way to keep generating that cash.”

What’s an average month look like for David Olds? What’s been done by the end of the month? What’s a decent month for you or an average month?

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$136,000 is what we’re averaging on assignment fees.

Is that net?

No. That’s our gross job. I’d like to be a little higher, but we’re only netting at about 30%. We went on a big expansion, so we put a bunch of money into pay-per-click.

That’s always the way and then you try things that don’t work. If you want to grow then you got to always have some R&D money. Some of it is going to work and some of it isn’t. Let me say this to the folks out there. How many people could live pretty good off of $30,000 a month? That’s about everybody out there, and there’s nobody that shouldn’t be able to. They might be below you because you do better but that’s a good chunk of change. That’s a far cry from $5,000 from among three people in a shanty somewhere. You latch onto this wholesaling and then you start to scale it.

It was myself, my wife, my brother and we had another partner at the beginning who was with us for a little bit. Scaling for us was doing more because this is before all the stuff. I sound like the old guy like, “You kids have all the greatest toys now. Back then, we had to put out more signs, do more driving, send more postcards and come up with different ways to innovate within those 3 or 4 different strategies.” Scaling was getting an extra person to drive for dollars. That was scaling back in those days. We’re doing that. We got really good at making cash offers. If that didn’t work, we immediately rolled into, “Looking at the deal. How else can we make money here?”

Can we buy the subject to? Can we do owner financing or seller financing? Can we get the seller to hold the note? I started a little bit late in life in wholesaling. I was 39. I always knew, “I’m 39. I’m not going to live forever. I don’t want to be on a 30-year note.” We tried to condense the amortization and be as aggressive with that as we could.

This comes from asking about cashflow and what we’re making every month. I have it set up so all of my properties will pay off within twenty years. Within the next eight years from 2021, we’re at the end now. By the time I’m 60, everything is paid off, it’s free and clear, and then I’ve got that $50,000 a month coming in forever.

One thing that I always liked and took note of this because it’s almost 100% true. When someone carries a note for you on a property, if you’ll ask them what discount they’ve taken to be paid off this year, you’re almost always going to buy that house for significantly less than what you got your note for. The minute that your note holder understands that they can get their hands on a big chunk of that money in advance for a discount, and that can be tremendous in your favor, then that note will never make it to twenty years. They’ll always find a reason that they need the cash now and they’ll be willing to take sometimes 40% or 30% discount, maybe more.

When we’re pitching the idea, I’m like, “Mitch, I know you wanted $60,000, but here I’m going to show you how you can make $93,000 over the course of 10 to 12 years, even though it’s $300 a month or whatever the number is.” You’re 100% right. You get a big wholesale deal, you crack a $40,000 fee, take that and pay off one of those properties if you can.

It’s worked every time, except once. I tried it in 2020. I had some money and a little house in North Chattanooga and I sent Sally or Sandra an email. I think I offered her $21,000. I said, “I had another property sale. I got $16,000. If you’d like, I could pay off your note early and get to clear it up if you’ll take $16,000.” Within five minutes, she emails me back with the exact dollar to the penny of what I order. This is what you notice to pay off and this is what I would expect if you want to pay it off early. I’m like, “We’ll keep going with what we’ve got.”

I said it almost 100% of the time. You found that’s the one. That’s the lady and she doesn’t need money and doesn’t have circumstances, so why should she?

In most people, you’re right because they’ve been taking that $300, $400 or $500 a month and you’re like, “I’m going to give you $15,000.” “Let me be done with this. Let me get that money and be done.”

You offer to train people. You guys have a course on wholesaling. Tell me about that.

I’m an anti-guru person. I worked for big coaching companies years ago and I got out of that. I just wanted to focus on wholesaling and because we’re a high-volume wholesaler, I get a lot of people that always like, “Can I call you and pick your brain? Can I come to the office? Let me see how you’re doing it. What are you doing? What software? All that kind of stuff.”

Honestly, because I was getting so many of those calls, I set up a course mainly focusing on dispositions because anybody that’s in the wholesale real estate side of the world, there are a million courses out there for that. I run my own business, I’m always out there scouring the internet looking for new videos, new things and new technologies or new things that work, and there’s nothing out there on dispositions. It’s always the last page of somebody’s book or the last three minutes of a video. What they always say, “If you have a good deal, it will sell.” That drives me crazy because I’ve had a ton of good deals but that good deal sitting in a contract on my desk is not selling to anybody.

In dispositions, you’re talking about sales. You’ve acquired the property, and now you need to dispose of it. Even if that’s true, if it’s a good deal, it’s going to sell. The question is, how do you sell it for the most money and how do you sell it the fastest?

REIS 509 | Starting With Wholesaling

Starting With Wholesaling: If you succeed in wholesaling business, you can become what you need to become in your life, figure out where you belong, and become the expert you need to be in.

 

If you’re only doing one deal a month, it’s probably not that big of a deal, but if you’re trying to scale and grow your business a little bit, now you’ve got 4, 6 or 10 deals. The way I explain it to people is it’s like produce. You’re like Walmart with milk. You’ve got to get those first deals out because you got ten more coming. You have to come up with a system to get these deals so quickly. That was the thing I’ve found. It seemed very second nature to me because we do it all the time, and then I started my business. I really focused on the dispo side but so many people needed help with that. That’s why we came up with that course.

I’m going to let everybody go to 1000Houses.com/Dodeals. Do you have a giveaway for the people out there or is there something you can give them to introduce them to you or show a few little insider tricks?

Let me do this. How about if I give them my buying and selling contract? It’s a two one-page contract and very simple. I get a lot of contracts from wholesalers that want to JV with us and there are these crazy four-page contracts. We have a one-page buying and a one-page selling contract, the same contract that we use all over the country. We use it with our students. It’s all been vetted by the biggest title companies in the country. It’s very simple and straightforward. I tell people it’s so easy. I’d love to give that away.

Go to 1000Houses.com/Dodeals. You can get a copy of those two one-page contracts, one-page to sell and one-page to buy. Very cool stuff and then you can also learn all the bullet points and an in-depth of what you might receive and learn from David if you decide to take him up on his course offer. I like the fact that it doesn’t sound like, to me, David Olds is a mill house.

I get the impression that you’ve got to put your heart and soul into this product and you want to get some people down the road to where they’re going because that’s how I am. Sometimes, people want to give me $25,000 for one-on-one coaching. It’s like, “You’re not ready. I’m not in it for the money. I’m in it for the victory. I want to be a part of a winning team.” I don’t want to take this with two cents. If I made another $1 million right now, it’s not going to change my life. What I need is an emotional reward and that’s why people like you and me teach this is you want to be able to look back and say, “I helped some people really changed the course of their life.”

That’s what I looked back at and one of the things that hit me in my soul. I do remember when I was new. I do remember going to the real estate club in Orlando. I tell people this and they never believe it. Rich Dad Poor Dad I read that, he said, “Go find a REIA and all that stuff.” It was July 2003 or 2004. I told my wife, “I’m going down to this REIA meeting. I’m going to go learn about real estate.” I got in there and I drove into this parking lot. It felt like 1,000 cars. We bought houses and all the stuff, and I was too afraid to stop.

I drove through the parking lot and went home to my wife. “I couldn’t find it. I’ll try again next time.” Even when I was brave enough to go in, I do remember those days where I’m like, “I saw the guy over there in the corner who was doing all the deals. I wanted to go talk to him and I didn’t.” That’s one of the reasons we started REIA here and I want to do some coaching. It’s absolutely to help people.

It’s the same thing. A couple of grand is not changing my life at all but I’m probably like you. I’m at a point where like, “If it all stops tomorrow, we’re good.” I do enjoy bringing some younger people on that are aggressive and want to do some stuff, partnering with them and helping them do some deals. Of course, it benefits me.

The problem is if you don’t charge anything for it, you won’t ever find any of the winners because the tire kickers will bleed you dry. When I say bleed you dry, it’s your energy. They’ll suck all the energy out of you and no one will do anything. I know because I did that. I used to give my time away, but I said, “It’s not working. No one is doing anything.” He said, “You’re not finding the right caliber of person. The person that you’re getting doesn’t give a damn.”

They’ve got to have some buy-in, and they’re fine. All the gurus that are on the circuit of every town were like, “Go find a wholesaler that’s doing a lot of business and go talk to him.” I’ve had countless people come into my office and I sit them all at the end of the table. I’ll talk to them for 15 or 20 minutes. I don’t do it as much now.

I would tell them all the same thing. “You can make a bunch of money in real estate.” “I want to do it.” “Here’s what I want you to do. It’s very simple. I want you to go out this afternoon and drive around. Make a list of 100 vacant houses. Can you do that? Look for places where there’s nothing inside, tall grass and in newspapers. Do that, come back, and we’ll go to the next step.” I probably had 150 of those, and three people have ever come back. All that time and energy, people aren’t serious, which is too bad.

Dale Ramsey do the primal scream when people get debt-free. Dale Ramsey would hate me. I made payments on $26 million of private money, but the point is he has a goal. When people reach that goal, they do the primal scream. When we ring the bell at my office, people can tell their boss that they no longer need their services. To me, that’s important because the first step is to replace your job. Whatever you’re making at your job and for once in your life, not making a lot of money might be your greatest asset. If you only make $2,000 a month, the wholesaling business will get you out of your job pretty fast.

Why is this important? It’s because I believe that the first step, if wealth is in the cards for you, is to get out of a job because it’s going to free up 2,600 hours a year that you can become what you need to become in your life and figure out where you belong and become the expert that you need to be in whatever it is you choose so that you can make a living or beyond.

That’s what I say. The first step is always whether you use whatever strategy in real estate. There are a lot of strategies in there. It doesn’t matter which one you use. If you can become an expert with one of them and get good enough at it that you don’t need a job anymore because you’re going to free up 2,600 hours a year.

We do the same thing. We do 1 or 2 deals. Don’t start LLCs. Just do some deals. Generate some cash and get some money in the bank so that you can afford to go 2 or 3 weeks without a check while you get this business up and running.

In life, you have to choose between time or money. Click To Tweet

I needed to make $35,000 a year. That the most, so I could be pretty comfortable. That’s not a lot of money.

Isn’t it crazy looking back to that?

When I got $35,000 in the bank, I quit my job. I wanted to see what this world looked like when I didn’t have anything else to do with that, and it changed my life.

That’s a tough thing for some people because all of a sudden, they have that freedom and they don’t know how to structure their time. I had that problem. I went to a private Catholic school in high school and then I got out of there. In high school, it’s very structured. Every single thing you do has got to be like you’re here. When I got to college, it was like, “We don’t really care if you show up or not. It doesn’t matter.” That was something that I had to learn and I know a lot of people struggle with that. That’s why I feel like I’m an old guy. I have to have an office because if I sat at home, it would be me and fat Petunia, the bulldog, watching Netflix all day. I have to have a place where I get up and go to.

That’s the whole point. You need to learn it yourself. You have to figure out what works for you, and nobody is the same. Even when you take anybody’s course, your course or my course, it doesn’t matter. You got to morph it to you. You can’t preclude it so much that it doesn’t work anymore, but you also got to fine-tune it and get it to fit into who you are. Everyone is different.

I got off a coaching call with my students just before this. They were asking me some things, and I’m like, “Do this.” You got to make it sound like it’s coming from you. You can’t just pair with me. Even when I’m in a room with 50 of the top wholesalers in the country, we all do it a little bit differently. Everybody’s got things that they’re better at. Definitely, mold it to you.

Tell me more about this course then I’m going to wrap it up here. Today is September the 16th, 2021. The man has the right to change his price anytime he wants to, but right now, this is what we’re talking about.

What we focus on in our course and it’s the one thing that I see that’s neglected is people start out with, “Let me go get a bunch of contracts.” Anybody that I can get with a pulse to sign a contract, that’s great. Again, I see the same problem over and over. People get contracts and they can’t get them sold. The first thing that I do in our course and when I’m doing training for people on my team is we draw a timeline on the whiteboard and we start with the end in mind. What is the end? Cashing a check. Not one thing we do here matters. We have company shirts and cashing checks, but let’s be clear, that’s what matters. We cashed checks. Who’s basically writing those checks? Cash buyers.

We have to understand that cash buyers are funding our business. I know that sounds dumb but there are a lot of acquisitions people who have no idea what that means. What that means is they’ve got to get a property that’s under contract with us at a number that makes sense that we could sell to that cash buyer and it’s still a deal.

What then do cash buyers want? They want functional properties where they can make money. they don’t want one of those houses. They’ve been added onto 90 times and they’re functionally obsolete. Even within our dispo, we train that but that goes all the way back to our lead generation and our acquisitions people. We don’t spend a bunch of time marketing in towns with 800 people because, what am I going to do when I get a contract there?

Sell it to one of the other 799 people? It’s very hard to do any work there, be successful and get the prices that you want. We build everything off of that. Start with the end in mind, then you’re getting contracts and you’re getting them in the right places. We talked to you about negotiating with sellers and setting the stage for what’s to come.

We deal with all aspects of marketing. The two things that I specialize in are systems and marketing. In systems, simplification is scalable. I’ve got friends who were really smart real estate investors, and when they’re done talking and writing on the whiteboard, it looks like that simple mind. Where there’s so much stuff up there and it’s so freaking complicated, and that’s awesome.

I’m not taking anything away from that, but only that guy can do that. He can’t train five people and go out and do deals like that. Simplification is scalable. I have to have a system that anybody can follow all the way through with our marketing, buyers, how to talk and negotiate. How to get your deal closed and get through transactions dealing with title companies? We talk about everything from soup to nuts all the way through.

I want you guys to go to 1000Houses.com/Dodeals. If you’re interested in maybe your career, starting out or you’re doing wholesaling, but you think you need some help, get over there and take a look at what he’s got to offer. Believe me. You’ve got to put some money into yourself if you’re going to get any better. It doesn’t work any other way.

No matter what level you’re at, whenever you plateau and it stops growing or it’s not working, then you got to put some money to find a coach, a different method, or another strategy to get you to whatever it is you want. Be it buyers, sellers, private money, or whatever it is. There’ll be everything you need to get in contact with him. Maybe you want to ask David some questions himself. If you have some questions about what’s in there and I’m sure he’ll be able to talk to you. Make sure that you’re the right fit. Nobody wants anyone to buy something if they’re not the right fit. I think it’s a great thing that you offer. Thanks for taking the time.

Thank you for having me.

It’s been great. What would you like to add to those new guys that are going through the debacle right now and need to make a change? What do you want to say to that guy?

It’s one thing that I’ve learned in the last couple of years. Being an entrepreneur is hard. When you’re starting out and you haven’t had a lot of success yet, you’re a man or woman on an island, your head is down, you’re working and you’re doing everything you can. Sometimes, it works and sometimes, it doesn’t. You’re hitting off some roadblocks.

What I tell people is to get around other people. If there’s a REIA in your area, a meetup group, or if there’s not one, start one. Get around other investors. We say like, “Be around the campfire,” because there are days when it can be hard and there are days when it’s discouraging. Being around other people and feeling that energy of, “Sally closed this deal and Bob is doing this cool deal. Mitch is doing gazillion dollars in seller finance stuff.” That can be inspiring and you can use that to fuel you through the downtimes.

Get a tribe or a group of friends. They don’t have to be people in your area. Maybe there are people around the country. There are plenty of Facebook groups. Find some people that resonate with you, interested in the same things, and have the same goals as you. You’re just together. There are days I call my buddy and I’m bringing him up, there are days they’re calling me and picking me up off the ground because no matter how successful you are, you have good days and you have bad days. If you’re not hitting obstacles, you’re not trying and you’re not moving forward.

REIS 509 | Starting With Wholesaling

Starting With Wholesaling: We have to start with the end in mind. Let’s be clear on what matters.

 

I couldn’t have said it better. This is Mitch Stephen. We’ve been talking with David Olds. He’s over in Chattanooga, Tennessee and he’s really refined the fine art of wholesaling. Doing a great job, making a great living and setting himself up, he’s already wealthy. To become as wealthy as he was, it’s a matter of how far you want to go.

Not everybody wants to fly and be a $1 billion Learjet guy, and that’s fine too. I’m certainly not one of those guys. I don’t need a Learjet and entourage. I’m really content. One of the reasons I do these podcasts, though is because it keeps me around people. We have a common thought process and I’ve made a lot of friends through this endeavor podcasting. I’ve also learned a lot from the people that I talked to. Also, I try to give as much as I can but I learned too. I can’t keep up with everything. I can’t keep up with technology, all the new laws and everything that’s going on. It’s hard and sometimes you just need one nugget to change the whole year.

You’d be amazed. That’s why I had to go to as many conferences, masterminds and things like that. Being around other guys who are doing the same thing or even something that’s slightly different, it’s amazing a guy who maybe is selling everything on a lease option and he’ll tell me something about marketing that I never thought like you’re texting. I promise you. I’m going to be looking that up the minute I’m done as I get away from this computer.

It looks like building a cash buyers’ list. You go out and you put up a sign that says, $150,000 house for sale for $70,000 cash. The recording says that the deal is already shut down, but I will text you the next time I have one because I captured the guy’s phone number if he called from a cell phone. How to build a cash buyers’ list in a town you’ve never been in before if you can’t find any other way? Put up 300 or 400 bandit signs with that message on it with a no-brainer deal.

While you’re sleeping, the phone numbers in your list are going to be racking up. We’re going to assume that anyone who called that number based on what that bandit sign said, that they either had the cash to buy a $70,000 house or they knew how to get their hands on the cash to buy a $70,000 house, and that’s a cash buyer’s list.

In LiveComm, you would label that phone number cash buyers and you could do all kinds of things to drive people to that phone number, but at the end of the day, that list is just cash buyers. You would label everything cash buyer and everything that you did to find cash buyers. You would use that phone number so that when someone called it, they have, in essence, raise their hand, identify themselves and give you their phone number as a potential cash buyer. For $0.02 apiece, you can hit them with your message.

I absolutely love that and that’s brilliant. I used to have to do it the old school way. If somebody would call me, I would store them in my phone. I try to keep track of it that way, but I love that it goes in there and it’s automatically recorded. I think of how much money that saves you from having to have somebody to answer that call.

I’m going to tell you this and I’m going to tell everyone. My phone number is (210) 669-4020. I’m telling you, David. Do you want to write this down or get to my office and collect it? If you want to talk about how I’m using LiveComm to further my business, call me because that’s the tip of the iceberg.

I’m going to tell you in a month or so. Maybe I’ll pop by your office.

If you want to call, it’s (210) 669-4020. I want to say this out loud. It works for all kinds of businesses. If you’re a part-time wholesaler right now trying to replace your job, but then you think about whatever your job is, maybe you’re a salesman for swimming pools, this will work for swimming pools. I get seventeen calls in one minute and they’re all bumping in. I appreciate your time. It never fails. Guys, this is Mitch Stephen. I like to thank my sponsor LiveComm. I like to thank David Olds and go to 1000Houses.com/Dodeals and check out what David has to offer. If you’re the right person, it could be the right thing for you. We’re out of here.

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About David Olds

REIS 509 | Starting With WholesalingDavid Olds, Coach for Nationwide Property Liquidators, discusses strategy for wholesaling properties, strategy for evaluating new real estate investment deals that cross your desk, how to choose a wholesaling market, and developing a buyer pool of wholesalers.

 

 

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