You Can Wholesale Anything! Wholesaling Strategies With Shaun Young
Episode 426: You Can Wholesale Anything! Wholesaling Strategies With Shaun Young
Wholesaling is a good place to start when you’re new to real estate, but is it easy? There are a number of wholesaling strategies you can look into, but you definitely have to work with someone who has been there and done that several times a year. That person is Shaun Young, the brains behind Adventures in Wholesaling, a one-on-one coaching and mentorship program that teaches you how to take advantage of the several different ways you can structure deals. Shaun himself specializes in wholesaling lease options and sandwich lease options on top of your run of the mill wholesale deals. Introduced to real estate after being laid off from his corporate job, Shaun knows the value of good education as an essential element to success. He shares all of these with host, Mitch Stephen in this episode.
Watch the episode here
I’m here with Shaun Young and we’re going to be talking about strategies, but probably sub-tos, lease options, and maybe some buy and holds. One of the things I like to do before we get started is to pay homage to our sponsor, TaxFreeFuture.com. If you don’t have a tax-deferred or tax-free retirement plan, which to grow your finances, you are missing a huge tool in your tool belt. Please go to TaxFreeFuture.com and learn how you can rollover from your IRA or your 401(k) or your solo 401(k). It’s a non-taxable event called a rollover.
You can get into an environment where you can self-direct where you invest your funds and you can learn how to loan your money or to buy houses and use some of the strategies we’re talking about and all kinds of things. Watch the 37 little video vignettes, short, sweet to the point and you’ll see some amazing things that you can do to grow a little bit of money in your retirement plans to lots of money with a little bit of savvy. You won’t believe what your financial advisors are not telling you. Shaun, we paid the bills. How are you doing? Are you in Georgia, Atlanta?
I’m in Atlanta, Georgia. I’m doing awesome. It’s a great day here in Atlanta.
Tell us a little bit about your background so we can catch up with you.
I come from a sales executive background. I worked in corporate America for my whole career after leaving the Air Force and served our country for four years. In the Air Force, I went straight from that into the workforce, which was sales. I stumbled into that. I had no intention to do sales. It was something that happened after the military. I said, “I’m going to try to ride this thing out.” I happened to be good at it. I got caught up feeling good about being a good salesperson with my company. I got cut. My company was based in Sweden as an international company. They changed how they decided to do business in North America. They got rid of the CEO in North America and his whole team, which was me and 749 other people. I said, “I’m never going to be in this predicament again. I’m going to do everything in my power to try to figure out how to protect myself and my family to not let this happen.” That’s how I discovered real estate.
You got to a point where you’re like, “I’ve had enough of this BS. The meter was pegged over on the red,” and that’s when it starts to happen. That’s when you quit being safe or being conservative. You get out and you try to figure out, “How am I going to be my own guy?” That’s not easy, is it?
No, not at all. That BS meter, you can only take so much before you’re like, “I’m not going to be in this predicament.”
“Anything is better than this. I’ll take what is the other side.”
Once you get a taste of that freedom and a little bit of success, you don’t want to go back to that other lifestyle.
It is scary at first and can be a little daunting, but the fear is what motivates you. You got to have a little of that good solid fear or you’re not showing up for the game day.
It’s like getting ready for a game. We know what you can do, you know what you’ve got to do, but that adrenaline is still right there in your stomach. It’s not that you’re afraid, but you’re being aware so that you know what you can do and what you need to do to perform right.
You get it in a higher gear and get ready. The coach used to say right before the game, “It’s time to strap it on baby.” What’s your specialization?
I focus on doing wholesale deals, lease and sandwich lease options. Those are my investment specialties there.
Do you have a lot of buy and holds or is it constantly one-time cash strategies? Tell me about the different cash strategies that you exercise.
With the wholesale deals, those are our one-time cash strategies. However, with the lease options, I have two options for those. I do what’s called wholesaling lease options and I do sandwich lease options. If I wholesale that lease option, we’re going to do one transaction, but if it’s a sandwich lease option, there’s money in the end for me to make money. It’s an opportunity for a monthly spread, then I’ll stay in the middle. That’s what we call a sandwich lease option.
On the lease options, usually you’re doing these things sub-to. You got some underlying lender who maybe has a due-on-sale clause. Am I right?
I’ve never run into that. I don’t do these subject tos. They’re still keeping the deed. I’m dealt with controlling it without ownership, but without taking the deed as well. It’s not subject-to situation.
You get paid a fee to make it all work.
Absolutely. I get an upfront non-refundable option free from that qualified tenant-buyer. We then get the monthly spread over whatever the principal interest, taxes and insurance are for that seller that goes in our pocket. In the end, when we cash out, whatever we’ve got over the asking price based on what’s due on the mortgage, that’s our profit as well. We like to call those golden gooses.
Your buyer has an option and I guess he exercises options by getting a new loan sometimes.
What happens is when my tenant buyer comes in, usually, I only deal with people who are in predicaments, where they can qualify in the future. I don’t try to take people who’ve got money and take their payments. That sounds good, but I want my people to close on their deals and who have the intent on wanting to buy that property so that non-refundable option fee, it’s significant so that they have some skin in the game. They understand that this is an owner’s situation. They’re not coming in as a renter. In the end, we have a company that facilitates it for them. We’ll get them a lender. We’ll get them connected with that lender. The lender lets them know what they need and what they need to process that transaction. My coach and attorney close it out and everyone’s happy at the end. I do little to nothing except for setting things up at the beginning, my attorney and the company that I use to screen these tenant buyers, they’ll handle everything from the middle to the end.
The company you’re using to screen them is the mortgage company. They’ll tell you, “We think we can get this guy a loan or we’re not going to be able to get this guy a loan.”
The company is a nationwide company that works with a bunch of lenders out there and they have a relationship with a bunch of lenders. The lender will let them know what the criteria are upfront. They’ll tell that tenant-buyer, “You guys could buy within the next six months if you don’t change anything. If you guys want to follow our program, we can get you ready in the next 12 to 18 months. If you follow what we would like for you to do, we’ll get your loan.”
That company wouldn’t happen to be Lendly nor would it?
It would not. It’s called Screen The Tenant.
I think I’ve interviewed them before, but if I haven’t, I probably need to.
Jesse, over there is a great guy. I’ll connect you if you need me to, Jesse Mills.
I’ve talked to him. I met him through Ron LeGrand.Once you get a taste of freedom and a little bit of success, you don't want to go back to that other lifestyle. Click To Tweet
Ron LeGrand is my first mentor and Joe McCall is another gentleman I’ve worked closely with. He was like, “This is the company that we’re using.”
I had dinner with Jesse Mills and Lou Brown and that’s where I met Jesse with Ron LeGrand.
Lou is my good friend. He’s out here in Atlanta also.
I cut my teeth on this business many years ago. I’m sure Lou wouldn’t appreciate that. That’s how I learned how to do real estate was Lou Brown and Ron LeGrand. It’s a small world when you get in this pond. You studied a lot of people.
I studied a lot of people. Ron LeGrand was my first entrance into our business. Ron is like the godfather of us all. He’s related to us in some form or fashion.
I don’t have any trouble giving credit to people or talking about other people. I think that people need to find the person that they think they’re a good fit for. If that’s you or me, great. If that’s Lou or Ron LeGrand, great. I don’t care where you go. The whole point of this show is to help people find where they belong and get where they’re going so that they can become who they’re supposed to be. I’m interviewing as many successful entrepreneurs or real estate investors, maybe some people with a motivational or inspirational story that has nothing to do with real estate, but it’s inspiring. I’m trying to get people fired up to get in control of their destiny and be who they’re supposed to be and take some action. To me, always the first step is to replace your job with your own business because that’ll give you 2,600 hours a year to focus on yourself and to become good at something. That goes a long way towards getting your 10,000 hours.
It takes you a little over four years to get that 10,000 hours in. That’s at a 40-hour week pace and we know that most entrepreneurs, we’re not at 40 hours a week. We put in a little bit more.
That’s why I said 2,600 because if you do the math, it doesn’t come out 2,600. It comes out less, but if you’re going to be successful, you have to be the guy that puts in a little more hours than they ever have done. Tell me how much you think you’ve spent on education over how many years to get where you’re at.
I spent $20,000 out of the gate on a program. I’m not going to mention the name at all, but it’s one of these fancy guys at a hotel. I went to the hotel event and I just lost my job. I was laid off. I figured you got to spend money to make money. That slogan is true to an extent, you just got to know where to spend it. I didn’t know what I was doing. I went to the back of that meeting and put down $20,000. Six months later, I gave him another $5,000. I’d say on education, I’m about $30,000, $40,000, $50,000 in easily. Once I fumbled on that first education, I realized how important it was to have the proper education. I paid for mentors and continuous ongoing training. I’m in mastermind groups now that’s educational. I would definitely say at least $50,000.
I want to clear up. You, a ton of people I know and I signed up for things that I wasn’t sure that I got my money’s worth. It’s unclear if it was because they didn’t have the right program or I wasn’t ready. Maybe I wasn’t even smart enough to keep up with what they were talking about because I needed a much lower caliber education before I can understand what they’re talking about. What’s important is understanding. To be successful at these things that they teach, you got to own the concept in your heart. I can tell you all day long. You don’t need money to be successful in real estate. If you’re not ready to receive that, it sounds like bullshit. Do you agree that you don’t need money to be in real estate?
I would agree, 100%. The only money that you need is enough to pay your bill for your phone if you can make phone calls.
There’s nothing that doesn’t cost money. If you want to split hairs, you can’t even sleep at night for free because you’re burning energy. At some point, you got to get up and eat something. As an overall general rule, don’t take much to go out and put a deal together. When you’re a novice, an amateur or you’re starting out, you’re a professional deal finder and a negotiator deal writer upper. You may not have any money to close on that deal, but you got something of value in your hands. If you did a good deal, you should be able to find the money or find the partner or sell the paper to someone else. That’s how everyone starts. Did you start that way?
I did. What I did was I went out there and try to figure out how to do this business. I went through Ron LeGrand after I fumbled through that year of spending almost $30,000 getting nowhere, asking myself, “Am I the dumbest rock on the block? Is this something not for me? Is this stuff real?” I took a second leap of faith and that was with Ron LeGrand. He had a dollar course out there. It was a course for $1 and 30 days of access to his materials. I took advantage of that. Within two weeks, I was finished with this course. I made eight phone calls and got my deal on the eighth-call. Six of those calls didn’t answer. The seventh was a realtor. The eighth one was my interest in our business.
How much did you made on that deal?
I made $62,000 on that deal.
It’s almost a curse to make that much money on your first deal.
It was a curse. Right out of the gate, I had a lot of success weirdly and oddly enough. I had eleven properties under contract by the end of my first month in the business. I figured out, “This is easy.” Those were wholesale deals. My first deal was a lease option. I didn’t even understand the difference. I didn’t know.
It was a curse because you thought it was that easy.
I thought it is easy lemon squeezy. The next thing you know, I only ended up closing 3 or 4 of those deals, but it taught me that you got to work the process. Everything is not a deal. You learn a lot. You fail your way forward, as they say.
That’s the name of my first book, Failing Forward to Financial Freedom. Many years later. I’m still learning because nothing stays the same. How many years you’ve been in the business?
I’m in my four years now, in 2020. I’m headed into my fifth year.
What are you averaging? What’s a year look like for you?
We’re looking at about 67 deals in 2020, but this is honestly been our best year. COVID has been my best year. This summer has been my best summer by far. We are riding on that momentum and keeping that going.
You offer some courses and stuff. Tell us the different levels and what you teach.
I do have a course out there. It is a toll selling course. It’s a course for people who are wanting to get into our business, who maybe feel like, “I’m not fully super advanced. I’m not a realtor. I don’t know.” This book will walk you through everything you guys need to enter into our business. The first chapter is all about mindset, which as Mitch mentioned. If you don’t believe you can do this, or if you believe this is BS, then it’s going to be BS.
I had brain screwed myself to thinking that I couldn’t automate my house flipping business. I tried about 3 or 4 times and failed. I was about to retire and live off my mini storage income. I have fourteen facilities, about 1,300 doors, only $100 every month. I was burned out because I was wearing every hat and I couldn’t do it anymore. It was a shame to throw away $1 million a year. Can I give away half of it to some good people and keep $500 and not walk away from the whole thing? Long story short, I decided I was going to make one more run at it. This time, I was going to get someone who had already done it. I ended up getting in a mastermind with a whole bunch of people who had already done it. I got to see how each one of them did it. I then got to pick the pieces out of the ones and make my own way, I was going to do it.
When I went to that mastermind meeting and I was supposed to go to four quarterly meetings for the year for $30,000.I told myself, I’m going to go there. I’m not going to talk. I’m going to listen. I’m going to go there with one goal in mind, I’m going to drink all this Kool-Aid until my eyes are red or purple or whatever color that Kool-Aid is they’re selling. I’m going to let them unwind me and then let them wind me back up as long as I believe in the basics of it. I only bought 30 houses that year because I had to slow down and back up and give myself time to build this organization.Rock bottom is a solid foundation. Don't give yourselves any excuses. Start where you stand and fail your way forward. Click To Tweet
The reason why I failed the first times was that I wasn’t giving myself permission not to buy 100 houses a year. I was trying to fix my office with what was leftover of me after 100 deals and there was nothing left of me. I slowed down. I took some major steps backward for one year. I concentrate on the problem and I’m proud to say because I hired the right people and went with the right mindset and drank the Kool-Aid, I have not seen the last 400 houses I bought, nor have I spoken to nor met the last 400 people that have bought my houses.
That’s a true business.
That was always what I was trying to do. For the beginners out there, the man’s done about 60 plus wholesale deals a year. If you do ten of those, you can replace your income. It depends on which ten you pick. You never know which one you’re getting. Life is a box of chocolates. If you want to learn wholesaling, I’ll even raise my hand. I’m not the guy to go to because that’s not my niche inside the niche. This is this man’s niche. If you want to learn how to wholesale, this is what the man focuses on. I would say, he’s a better choice than me. Go to 1000Houses.com/Shauny. I’m sure there’s a direct line to you somewhere in some way to get to Shaun. If they’ve got questions or they want to talk to you and clear some things up before they commit and all the pricing and over there.
I’ve seen your prices. You are very reasonable. They don’t take a lot of savvy to get back what you’re asking on that stuff. It’s a good price. If you can’t figure it out at that price level, you can go pay $30,000 to figure it out if you want to. It’s not that complicated, but at the end of the day, there’s a lot of minutia in some fine points that if you don’t get them, you’re going to miss a lot of deals and waste a lot of advertising money.
It’s affordable and reasonable for people who are out there wanting to enter our business and get into our industry. It leaves no excuses on the table for you. It’s easy to understand the book. It’s like they say a wholesaling for dummies almost. We’re not dummies out there, but I want to make it in layman’s terms that you would not have complications on saying, “What do I do next?” It’s a step-by-step instructional guide. As Mitch said, you head over to his site there and you guys can get me personally, for one-on-one mentorship as well.
Is there any other strategy that you specialize in? Do you do lease options?
Those are my two strategies there. I would love to add some more to my arsenal, but as you said, sometimes, when you’re trying to build your business, you’ve got to figure out when is that good point to stop to figure out how to add that new niche into your business.
We need to have a conversation because I can put you a great tool in your tool belt. My personal phone number is (210) 669-4020. Let’s talk because I’m sure I can up your game. The reason why I’m saying this is Texas law and Georgia law in foreclosure and eviction are all the same. We got some of the fastest foreclosure laws in the world. That means that the seller finance strategy will work for you. Two things, let me show you how I’m raising private money, how you talk to these people, how you get $26 million out. I didn’t get on here to sell you anything, but when I know I can help someone, I know I can help someone.
I’m looking forward to it. Guys who are reading out there, I’m a guest on his show, but he still sees that there’s something he can do to help. That’s what we want to do guys is to pay it forward. Any way you can give is going to come back to you ten times.
That’s written in the big book. We’d all be better off if we could live by those ten rules. I want to thank you for being on. I know we could talk forever. Again, go to 1000Houses.com/Shauny. Check it out. I don’t know how you plan to go from zero and get in this game for any more affordable and from anyone who’s tightly focused because I think everyone starts out wholesaling. I just don’t know anyone who didn’t.
It’s a good foundation. It’s having your arsenal because you can wholesale anything.
You could wholesale cars, lots or mobile homes. You can move it all over the place. The paperwork, get the understanding of the concept, which is to tie something up for a certain amount of days, and then sell your position to someone. The price this guy is charging, you shouldn’t even do a deal, but unless it doesn’t pay back what you paid him five times. Their first deal out to get you your money back, you get your money back plus a good profit. Let’s not get confused on swinging for the fence on the first deal though. In the first deal, make any amount of money. It doesn’t matter, just close one because that’s when the concept gets ingrained into the heart. I don’t care if people say, “I did my first deal, but it wasn’t very big.” I don’t care if you only made $1,500 or if you only make $500, that’s not the point. The first deal is to start with zero and come home and show mama some money and I could do it.
It’s a proven concept. I’ll walk you through your first three deals. I’m right there with you the entire time for three deals and to make sure that we get it. I believe in my course. I believe in my ability to help you guys get these deals done and we’ll get it done.
That’s one of the differences though. I want people to pay attention. When you get to some of those big box gurus, I got nothing against them. I learned from them myself, but you’ve got to understand. You’re not going to be talking to the guy that’s doing it every day. You’re probably going to get subbed out to some underling that maybe did twenty deals in their whole life. I know some of the people that coach under these guys and I don’t understand why they’re even elected to do it. The point is here. You got to measure when you’re calculating who your coach would be. Are you going to get to talk to the guy that’s doing it?
If you get with Shaun, you’re going to talk to a guy who did it 67 times in 2019 and is doing it still. You get to talk to him directly and ask your questions to him. That’s different than if Shaun was subbing you out to someone who did their first three deals last week. This completely different. The same thing with me. You get on my weekly call. You’re talking to me or my partner. We’ve done hundreds of deals. I can tell by the tone of your voice, how your conversations going on with your buyer, what’s about to happen. I can tell by the way the conversation’s going because you’re talking to the guy that has all that experience.
This is what I will tell you, “This is what I want you to do, Shaun. I’ve heard your conversation with your buyer and something’s up. I want you to go buy a shovel. I want you to go the back left-hand corner and I want you to dig a hole, four foot deep, four foot wide, and call me back and tell me how the hell did you know that was buried back there.” I’ve dealt with these jerks before and I could smell it by the way the conversation was going.
You would only know that through experience.
The person who has done 10 or 20 deals in their life don’t know. I know that because I did 2,000 deals and a lot of things have happened that I couldn’t even make up. Go to 1000Houses.com/Shauny. Is there anything you want to say to the guy just starting out and don’t know if he can do it? Maybe he has his back pushed in a corner. They got to let go because of COVID. What do you get to say to him?
Rock bottom is a solid foundation. Don’t give yourselves any excuses. Start where you stand, fail your way forward. As Mitch says, we’re out here to help. If you’re going to come to me for help, help me help you, help us all. If the world operates like that, we’d be a much better place. I’ll do my part. Don’t be discouraged. You can do it. Believe that you can do it.
You’ve got to put out the effort. You could be sitting on a sofa. You’ve got to believe with your button gear.
You got to marry that effort with that belief and that’s how you get the results.
Good work, Shaun. It sounds like you’re doing good stuff and we’re going to help a lot of people.
That’s what it’s all about.
I want to thank Tax-Free Future for sponsoring this episode. Please go check out the 37 video vignettes. All that’s required is that you go to TaxFreeFuture.com, fill out the little microform with some phone number and email address and stuff. I promise they won’t beat you up with a bunch of crap. They want to know who you are. Maybe they’ll call you and ask you if you have any questions or something, but that’ll get you to the 37 little video vignettes, which may get you in a position that you want to ask some questions because we cover a lot of territories and some of it is amazing.
I’ve never opened up any of my IRAs with anything more than the minimum, which is at the time was $250 and I have grown those. Anyone would be proud to own my IRAs. They don’t care who you are. You’d be happy if you own any one of them. I never put any more of my money in until they became tax benefit wise, it paid to put it in. In my beginning years, in ten years, I never put any money out of my pocket. I made the money in there to make money. There are ways to take little bits of money and make big leaps. You got to know the strategies. You don’t know what you don’t know so check it out at TaxFreeFuture.com because you will not believe what your financial advisors are not telling you. Shaun, thank you. You’ve been a great guest. You have neat energy and you’ve been at four years. I think you’re going to do well.
I appreciate that, Mitch. I love your energy as well. I’m looking forward to our follow-up after this meeting here.
- Shaun Young
- Ron LeGrand
- Failing Forward to Financial Freedom
About Shaun Young
I started investing into Real Estate around 2016. I have always had an entrepreneurial spirit and heard that Real Estate could be a great, if not the best way, to secure financial freedom!
Real Estate allows me to be a problem solver and a solution for the families that I assist through my Real Estate business.
When I’m not involved with finding deals or coaching, I read, practice martial arts, and I love outdoor activities and spending as much time as possible with my family doing the things we love.
When I think about new investors, I think analysis paralysis is the biggest issue! Too many think they need to know all there is to know before taking action. In my opinion, you have to be willing to take action daily, though it may be imperfect, to see results.
Real Estate has Been a Game Changer.
That’s why I created this course. To Give Back!
To allow people just like yourself, to create the life you’ve always dreamed of.
No More Waiting to be hired onto a job. No 9-5 Job Period! No 4 Years of College needed. No $100,000 in Debt. Absolutely No Limits.
Help Me Help You Help Us All!