From Shedding EVERYTHING within the Final Crash to $9M Wealth

David:
That is the BiggerPockets Podcast present 731.

Brent:
I believe lots of people simply maintain on to leads an excessive amount of as a result of they’re like, “Oh, it’s a lead. I really like this lead. I’m going to coddle it and I’m going to maintain it right here and I’m not going to push them too exhausting and I’m going to be very nice and I’m going to carry them sweets and I’m going to cease by and I’m not going to pre-qualify them an excessive amount of. After they’re prepared, they’ll inform me their worth and we’ll make a deal.” And that by no means occurs. It is advisable have a dialog of what’s the situation, timeline, motivation, worth, and the timeline is crucial factor in that as a result of in the event that they’ve made the choice that they’re going to promote that property, that’s who you actually get in entrance of.

David:
What’s happening everybody? That is David Inexperienced, your host of the BiggerPockets Actual Property Podcast, the perfect, the largest, and the baddest actual property investing podcast on this planet. Right here at the moment with my co-host, Henry Washington, the place we carry you one other wonderful interview at the moment with Brent Daniels. Brent runs a wholesaling enterprise that could be very profitable, talks to lots of people, and continuously places offers collectively that different individuals would let die. And in at the moment’s present, we hear about his rags to riches story and a whole lot of different info. Henry, first off, good morning and second, what have been a few of your favourite components of at the moment’s interview?

Henry:
Hey, man, good morning. Glad to be right here. Man, what an unimaginable story. I believe all of us love to listen to a rags to riches story, as a result of it reveals us all what we’re able to, what’s attainable. And what I really like about Brent’s story is, man, he went by way of some lows, didn’t he? And so it’s an exquisite story about learn how to put together your self for what might be the unknown, learn how to pivot your enterprise if it is advisable to, after which how not to surrender however rebuild in a better manner and leveraging the entire expertise. As a result of all Brett did was leverage the talents that he had constructed previous to the whole lot falling aside. He simply leveraged them otherwise to rebuild himself larger and higher than ever.

David:
Yeah, that’s precisely proper. And in the event you’re following what’s happening within the financial system, then it is best to acknowledge it’s very seemingly, I don’t know we’ll see it to the dimensions of what we noticed in ’08 by way of 2010, however it’s very seemingly we’re going to see related issues taking place to what occurred to Brent. So, you higher begin getting ready your self now for what to do after they occur and learn how to play these playing cards, as a result of there’s lots of people that might be going by way of very related circumstances to what at the moment’s visitor went by way of himself. Additionally, you need to be sure you hear all the best way to the top on this one, as a result of you’re going to get to see what a wedding between Henry and I’d appear like in an alternate universe. Right this moment’s fast tip is delivered to you by Henry Washington.

Henry:
Sure, at the moment’s fast tip is to recollect to remain grounded. We discuss on this episode, epiphany factors, epiphany moments. And you could have already had your epiphany second while you’re listening to this. It might be why you’re listening to this. Tough occasions occur, challenges will occur, however in the event you can keep in mind again to that second while you knew you needed to make a change, otherwise you knew you have been at your lowest and you’ll see that you just’re not there anymore and also you is probably not the place you need to be, however you’re not the place you have been while you had that epiphany second, it’s going to provide help to understand that issues are higher than you suppose they’re, and also you’re transferring in the precise course. So, be sure you write down these epiphany moments. Be sure you reference them usually.

David:
Nice level, Henry. Thanks for that. Let’s usher in Brent. Right this moment’s visitor on the podcast is Brent Daniels. Brent is a wholesaler who runs a wholesaling enterprise. He’s been grossing over one million {dollars} for the final six years, has hacked chilly calling, and is right here to inform you how one can too. And as a enjoyable reality, he was a Corridor of Fame soccer participant at his faculty, and I believed he was an expert wrestler. Brent, welcome to the present.

Brent:
Nicely, I’m excited. Pay attention, that is the best enterprise of all time, that is the best actual property podcast of all time, so I believe we’re going to have a whole lot of enjoyable. I really like you, David. I really like Henry. I’m honored to be right here and excited to share my story and hopefully give some ways for those who are listening.

David:
Yeah, I admire you saying that. Certainly one of my favourite components about your story that I’ve heard to this point is the rags to riches factor of it. I imply, you went from the bottom of low’s. No offense, it simply seems like horrible, horrible scenario, and simply fought your manner out of that factor to be at a degree the place so many individuals try to get to proper now. And I really like these tales, as a result of while you get from a degree you don’t need to be to some extent you do, breadcrumbs get left, after which different individuals can comply with that path.
And as extra individuals make it out of the underside and get to the highest, it makes the trail that rather more clear for everybody who’s coming behind. So, we’re going to do our greatest to attempt to determine these breadcrumbs at the moment so our listeners can comply with your journey. Earlier than we get into it, is there something particular about the way you had it and also you misplaced it and you bought it again that you’d say type of highlights what your journey has been like? Any lesson or factor or motto that you just took or was shaped throughout these occasions?

Brent:
Yeah, I keep in mind I used to be driving and my son was perhaps 16 months previous, that is 2013, and he was crying. He had his fifth ear an infection, and people are simply horrible, horrible. And so I used to be making an attempt to take heed to the Audible of Dale Carnegie, the man that wrote Suppose and Develop Wealthy. He had one other guide known as How one can Cease Worrying and Begin Dwelling. And I’m listening to this guide, I’ve received a crying child, and I’m like I’ve mirrored loads, I’ve carried out a whole lot of self-work. So, I must exit and do one thing. I must exit and discover some option to flip this entire factor round.
And I believe it was that second proper there that was like, “Okay, I want to simply exit and I want to enter the streets. I want to seek out property house owners which have these older rundown beat up homes and I want to speak to them.” And that’s what modified the whole lot for me. And up till that time, it was only a catastrophe. I imply I screwed up the whole lot that I might financially and emotionally I believe. It’s this walnut measurement factor in my mind that I’m going again to each time I believe I’m actually cool, or I’ve made a bunch, or I attempt to recover from my skis a bit of bit, I’m going again to that day listening to that Audible guide and be like, “What? Oh my gosh, life is so a lot better now.”

Henry:
That’s humorous, man, as a result of for me their epiphany moments. I had a really related epiphany second in my life. Mine sadly was a panic assault, however it’s a panic assault that modified my life. And I at all times look again at that as this type of place marker in my life the place the whole lot began to show round. And so I really like that you just share that. You stated this was about 2013?

Brent:
Yeah.

Henry:
And also you had by no means carried out a deal then?

Brent:
No, I had been in actual property since 2004, so I had learn Wealthy Dad Poor Dad in 2003, and I used to be like, that was it, proper? I imply I really feel like there’s two paths there. You learn it and also you’re like, “Oh, actual property’s going to be my life.” Otherwise you learn it and also you’re like, “I don’t care about this.” I actually suppose that. And so I received an actual property license. There wasn’t YouTube, there wasn’t podcasts, there wasn’t BiggerPockets, there wasn’t something on the market to actually give me course. So, I didn’t know the vocabulary, I didn’t know what was happening. All I knew was that I needed to find out about actual property and there was actual property faculty, so I’ll simply go to that and get a license. So, I did that and it was nice. It was nice. It was 2004, you realize what I imply?
The market was going bananas. Every little thing was thrilling. I used to be studying learn how to assist individuals purchase and promote, and I’ve a whole lot of household right here in Phoenix. And they also needed to maneuver and make the most of their appreciation. So, while you’re 22, 23 years previous and also you make $100,000 hundred, you’re like, “I’m the best actual property entrepreneur of all time. The great occasions are going to go on endlessly. That is going to be unimaginable.” And I began the pure development, that’s I needed to open up a brokerage that will be an funding/actual property brokerage. And I used to be informed, “Nicely, you could possibly purchase properties and these loans, I imply, you don’t even should put a lot down. They usually begin at 1% or 2%, they usually keep there that manner for some time. And after they alter,” and I had no concept what adjustable price mortgages have been, “after they alter, you simply promote the properties and life’s good.”
And that’s what I did. And in 2007/’08, I purchased 5 properties in 2009, 10. Misplaced all of them. Had a very nice Mercedes, had a very nice Vary Rover. These received repoed. Nothing is crazier than seeing some burly dude with flashing yellow lights, pull your automobile that you just put all of your pleasure and ego into, out of your driveway and simply go away. So, that was actually tough. That was powerful, however the harder half was proper earlier than it modified in January of 2008, I signed an workplace lease for 10 years with a private assure for 9,000 sq. toes for this brokerage that I used to be constructing. And October of 2008, financial world melted, no offers would promote historically available on the market, quick gross sales nonetheless couldn’t be negotiated. And in Phoenix, we dropped 67% in worth.

Henry:
Wow, man. That’s intense, as a result of it seems like what you probably did was you realized about actual property, determined this was going to be your life, you went all in, you had some success, and you then constructed this crew. A brokerage is a giant deal. It’s not one thing small. Discuss to us a bit of bit about what that brokerage seemed like. How many individuals did you’ve? What did you place in to construct that?

Brent:
Yeah, we had 80 individuals and I had 4 different companions. We had workplace workers and we had the whole lot. And when revenue shouldn’t be coming in and also you’ve received enormous bills, it goes down quick. And everyone seemed to me and the opposite house owners as leaders, and we’re scrambling. We’re 29 years previous, we’re 28 years previous, I don’t know what’s happening. I’ve by no means gone by way of something like this. So, that was the toughest factor. That was the toughest factor, Henry, was trying individuals within the eye and telling them, “We are able to’t hold you round anymore,” and having to let everyone go. And that’s actually influenced my enterprise rules to today. Massive time.

Henry:
I imply that’s a giant, for lack of a greater time period, that’s a giant intestine punch, proper? Not simply to your private, seeing your automobiles get taken out of your driveway, however we talked a bit of bit about this per week in the past. What was it like or what essentially the most painful half? You needed to let how many individuals go? After which what was the turning level in that downturn that made you go, “Okay, this isn’t the top for me?”

Brent:
Yeah, that took a very long time. There was a giant hangover after that have, however we had 5 workers members full-time and we had 70 brokers on the time that each one needed to scatter to different brokerages or get out of the enterprise. And that workplace lease that I signed as a private assure, the attention-grabbing factor is, in case anyone didn’t know this, however in the event you don’t pay that, they sue you. So, right here I’m, I’ve by no means been close to a lawsuit earlier than and the attorneys coming and saying, “You owe $742,000 to this property proprietor.” And I used to be like, “There’s nothing I can do.”
After which my enterprise companions left, went to California, took the books, so I couldn’t file taxes on time, so I couldn’t do a chapter. So, this factor dragged out and it was like a weight on my shoulders. And one, it was massively embarrassing since you construct up a status in the true property enterprise. It’s not an enormous group. And so that each one went down and shedding all of the funding properties and having nothing within the accounts. After which my spouse on the time was like, “That is bananas. You’ve received an anchor round your neck. I’m out of right here.” So, you throw a divorce in on high of that, and it turned actual ugly internally. Actually, actually, actually ugly.

David:
Yeah, that’s one thing I believe we must always take a second to spotlight, as a result of that occurred to you, however it doesn’t sound such as you made any enormous errors. It wasn’t such as you made an apparent unhealthy determination. You didn’t get into medicine, you didn’t go purchase utterly silly issues. I imply you probably did what most individuals do after they’re making first rate cash. It’s very straightforward, very straightforward to do that, and it’s straightforward for this to occur to anyone. That’s the primary level I simply need to spotlight for everyone listening. The second is that’s why pivoting is so essential. You’ve received to be okay constructing it, shedding it, and constructing it once more, since you don’t know what’s going to occur within the surroundings round you. You don’t know what the federal government’s going to do. You don’t know what macroeconomic insurance policies are going to do. We don’t know if we’re going to be going to struggle.
This stuff occurred fast. Nobody knew that COVID was coming. No person knew when September eleventh was going to hit. One thing might occur the day that this podcast drops. We don’t know. It’s this skill to have the ability to have a look at the data and adapt that makes you profitable, versus simply give me a blueprint, inform me what to do. I simply need to take 4 steps and I need to construct up some cash. So, as you’re on this scenario the place issues are very ugly internally in addition to your private life, I imply to now have your accomplice leaving you at your lowest, I can’t solely think about what that’s like.
You already really feel like crap. Your shallowness is taking a success. You flip to the one that’s imagined to be within the trenches with you and there’s nothing there. They’re like, “Peace. I’m on the lookout for greener pastures someplace else.” It’s simply you. What sort of ideas have been going by way of your thoughts? Whenever you would get up within the day, what was your day like?

Brent:
I used to be paralyzed, I’ll be sincere with you. It’s not like I used to be like, “Oh, you realize what? I learn this guide and I met this individual and the whole lot simply circled and I received again on the saddle and I used to be driving.” It was like 5 years of simply determining learn how to get by. A very good buddy of mine, Dustin Monger, who’s an unimaginable actual property investor, he let me keep. He had a rental property that he was in, and it was simply him and his canine. So, he let me keep in his room there. It wasn’t a sofa. It’s not that sofa story that appears so in style. However I moved all my stuff out of my 4,000 sq. foot home and I used to be left with just some packing containers and my mattress and I moved in there.
And I used to be capable of get a chance with a Remax brokerage that was promoting all of the REOs, the financial institution owned properties, and the market went manner down in Phoenix and these properties have been like 40,000, 50,000. And I used to be the man that was answering the signal calls. So, individuals would name up simply on the streets, “Hey, I need to see this home.” And so all day, day-after-day I’d should drive round city on this beat up previous Lexus that my dad gave me a 2000 ES 300 Lexus that was like sand coloured, you realize what I imply? That had simply had horrible hail injury. And I’m driving round on this factor and displaying properties and making perhaps like 500 bucks, 1,000 bucks after splits making an attempt to try this.
After which as quickly as I’d get my head above water a bit of bit, I’d get a name from the man’s legal professional they usually’d be like, “Okay, we’re going to do a monetary assessment. Are available and provides us no matter extra that you’ve got.” And it felt like I used to be going nowhere. After which that’s the place it led as much as 2013 the place I’m listening to How one can Cease Worrying and Begin Dwelling. I nonetheless have it on my Audible. I imply I haven’t listened to it since then. And I made a decision, you realize what, I’m going to simply exit and I’m going to knock doorways. I’m going to simply exit. I do know there’s areas, I do know this pocket right here of properties there’s a whole lot of fixing and flippers that love this space. It’s nonetheless actually in style.
So, I’m going to simply go see if I can discover some alternatives and hope that if I carry it to an investor, they’ll give me a 3% fee. And that’s what I began doing. And that’s how I discovered my first deal was I knocked on a home and Margie answered. She didn’t need to promote her home, however Carol, the gal down the road, she was a caretaker for it, it was a vacant property they usually lived in New York and it was full of stuff they usually didn’t know what they needed to do. And she or he gave me an identify. She goes, “Let me name her and get the permission so that you can name her.” And I stated, “Okay.”
She gave me a reputation, deal with and cellphone quantity. I put that deal collectively and earned the fee on that. And I noticed at that second, in the event you give me a reputation, deal with and cellphone variety of any individual that owns an unsightly home or is in an unsightly scenario, I can get myself out of this factor. I might do something. I might actually construct a profitable enterprise. This enterprise and wholesaling and having conversations with property house owners that don’t have their properties available on the market modified my life. I imply completely modified my life. Now we’ve carried out nearly $10 million in revenue from that, a whole lot of which I’ve stored as a result of I didn’t construct an enormous crew. Once more, I stored it actually small.

David:
You went the jet ski mannequin there, however a strong jet ski it seems like. So, as soon as you bought uncovered to wholesaling and also you noticed what the revenue margins appear like and the way you could possibly do that with out the entire baggage that comes from working a conventional brokerage, what have been your subsequent steps for choosing up steam and constructing momentum in that enterprise?

Brent:
So, I noticed that door knocking in Phoenix was nice for my tan and for my waistline, however I used to be melting on the market. It was actually scorching. Door knocking in August in Arizona is brutal. And I used to be like, “I want to seek out air con. I want to have the ability to get the cellphone numbers.” And the brokerage that I had joined after Remax had skip tracing. They’d this account known as LexusNexus. And so we might simply put in addresses they usually’d give us the cellphone numbers after which we’d simply name them up.
And so I’d simply drive round city and discover the ugliest properties and write down their deal with. I’d simply write them down on a pad of paper and a pen, and I’d return and I’d pull their cellphone quantity and I’d simply name them and fumble and stumble at first after which type of found out script that was efficient to make individuals not too afraid to speak to a stranger. After which that’s what actually led to the success, as a result of it didn’t price me something.

Henry:
No, man, I believe that’s phenomenal, as a result of I actually have this identical dialog with individuals about all of actual property is that what you realized is that this isn’t an actual property enterprise, it’s a individuals enterprise. It wasn’t that you just have been going out and also you have been discovering homes, you have been going out and also you have been discovering conditions that have been connected to homes after which determining learn how to clear up these issues. However what’s tremendous cool is that you just didn’t have this formal coaching, you didn’t have some grand plan laid out. You simply went and knocked on doorways and talked to individuals. And that appears extraordinarily intimidating for lots of people for lots of causes.
So, what gave you the boldness to simply go knock on a door and have these conversations? After which discuss to us a bit of bit about among the myths that you just’ve found about knocking on a door and having a dialog about this and the way you overcome? Since you stated you developed the script, however I’m certain you developed that script since you knocked on a whole lot of doorways and talked to lots of people. So, what did that course of appear like of you going from knocking on a door and fumbling a dialog, to growing a script and understanding learn how to have these conversations with individuals?

Brent:
Yeah, I adore it. They are saying all-time low is unimaginable as a result of it’s a powerful basis. I imply it actually is. What I realized is there’s solely a specific amount of distressed property house owners in a market. And I talked to Steve Trang about this, and I’ve checked out among the census and it says 6% to 10% of the true property market is in misery always. So, I didn’t give attention to the 94%, I centered on the 6% that have been both in misery due to the situation of the property, emotional or monetary misery. These are the three type of buckets. And so at first, I simply seemed for ugly homes, simply primary, simply not even considering, simply seemed for ugly homes and finally they should promote to any individual. They’re simply not financeable for essentially the most half as a result of they’re simply in tough situation.
So, they should take a money as is supply. And so what I realized first was actually laser give attention to properties which might be in misery. That was primary, as a result of you’ll be able to waste a whole lot of time making an attempt to persuade any individual that has a gorgeous home to promote their property at a reduction. It’s a waste of time. You’re by no means going to persuade anyone to do something, and also you’re going to undergo a whole lot of heartache having conversations that don’t actually go wherever as a result of individuals ought to promote them retail. So, that’s not what I’m speaking about. So, you need to filter that down.
The second factor that I came upon was in a distressed scenario, they’re on Hell Island, they usually need to get to Heaven Island, and there’s sure bridges to cross to have the ability to get there. And I needed to undergo all these bridges and break down these bridges earlier than it got here to my supply. “So, why don’t you listing this property?” “Nicely, I hate realtors and I’m embarrassed and my canines will chew them and issues will occur, and I don’t need to listing my property.” “Proper. Okay, nicely, why don’t you hire it out?” “Nicely, I don’t like tenants.” “Why don’t you repair it up your self?” “I don’t have cash.” “Why doesn’t the household use this as a household rental?” “Nicely, all of the household hates one another and we don’t need to do it.”
So, you undergo all these completely different bridges that will cross them over to eliminating this misery, till you get to that money as is supply that we provide as a wholesale supply.

Henry:
I really like that. As a result of what you’re doing, basically, while you’re having these kinds of conversations, it’s not simply that you just’re displaying them that your possibility is an efficient possibility for them, however you’re constructing belief alongside the best way. As a result of each possibility you’re displaying them really entails any individual aside from you creating wealth in that transaction. Would you say that a part of your skill to have the ability to construct belief with the sellers in misery conditions had something to do with the truth that you could have gone by way of some misery conditions again while you had the repossessions and a whole lot of the problems you have been having?

Brent:
100%. And hear, if there’s a greater possibility for them, I would like them to go together with that higher possibility, as a result of they’re going to do it anyway, proper? I imply any individual’s going to speak to them, they’re going to speak to a buddy or an legal professional or an agent or any individual that’s going to present them a greater choice to make extra. You already know what I imply? So, sure, it’s, as a result of I went by way of that and I perceive and may have empathy from an actual life, actual expertise, however there’s no trickery on this enterprise. You already know what I imply? It must be the best choice for them, or they’re going to cancel the deal, or they’re simply not going to signal the deed to switch title to any individual. So, after I have a look at it, and what I found is there’s three issues. There’s pace, comfort, and worth.
And the sellers solely get to choose two of them. So, if they need pace and comfort, then they’ve to return down on that worth as a result of that’s the way you do it. That’s how do inspections and don’t do value determinations and purchase it as is and there’s not any repairs. So, after we’re speaking to individuals, speaking to those property house owners, we go, “Okay, hear, do you need to commerce potential fairness on this property for pace and comfort? If not, go listing the property. Go listing it. Go hire it out once more, go do no matter else you need.” And it shocks individuals, that individuals go, “No, no one would ever do this.”
It occurs each single second of each minute of each hour of day-after-day in the true property enterprise, is any individual is buying and selling potential fairness for pace and comfort.

David:
That could be a good technique when speaking to the vendor. And I do know lots of people can be afraid to carry it up as a result of their ideas can be, “Nicely, I don’t need to tempt them with the concept they may take this to an actual property agent, as a result of then they’re going to.” The fact is that they know that that’s an possibility. There’s this unstated battle happening when there’s a negotiation, there’s at all times unstated issues. Now what the individual with the property is considering is, “I would like all three. I would like pace, I would like comfort, and I would like worth.”
They usually’re making an attempt to navigate this relationship with you or whoever the individual is that they’re negotiating with, into getting all three issues they usually’re naive. It’s not going to occur. You perceive, nicely, there’s three issues right here, and this rule of three, no matter that’s, it comes up on a regular basis. It’s like that with contractors. It’s like that with lenders. Is that this one thing that you just realized from another person or is that this one thing that simply 1000’s of repetitions of those conversations led you to realizing that is the best way to get to the conclusion?

Brent:
To begin with, I realized that from Todd Toback and Tom Krol, they usually’re implausible. I imply after they informed me that, it completely made sense. So, it’s not authentic in any respect, however from a scaffolding of any dialog with a property proprietor, if anyone’s nervous as a result of they haven’t talked to a whole lot of them they usually simply don’t really feel like they know the precise inquiries to ask, it actually comes right down to pre-qualifying based mostly on the 4 pillars, which is what’s the situation of the property? What’s their timeline to promote this property? What’s the motivation? And what worth do they need? So, the extra that I can ask questions round these 4 issues and pull these out of this property proprietor, the extra certified lead I’ve. And the extra certified lead I’ve, the extra that I can give attention to these individuals that really have potential of doing enterprise with me.
And in the event that they don’t have potential of doing enterprise with me, I do away with them. I transfer on with my life. However since you discuss to so many individuals on the market while you’re being proactive, you get all of those unbelievable people who filter by way of, and people are the offers that you just really do. So, I believe lots of people simply maintain on to leads an excessive amount of as a result of they’re like, “Oh, it’s a lead. I really like this lead. I’m going to coddle it and I’m going to maintain it right here, and I’m not going to push them too exhausting and I’m going to be very nice and I’m going to carry them sweets and I’m going to cease by and I’m not going to pre-qualify them an excessive amount of. After they’re prepared, they’ll inform me their worth and we’ll make a deal. And that by no means occurs.
It is advisable have the dialog of what’s the situation, timeline, motivation, worth, and the timeline is crucial factor in that, as a result of in the event that they’ve made the choice that they’re going to promote that property, that’s who you actually get in entrance of. That’s who you actually dig in and discover out what their scenario is and how one can assist clear up no matter drawback that they’ve. After which that retains you actually centered on the most well liked leads that you’ve got in your enterprise. And that’s the way you get the consistency to shut these offers and get actually large offers.

Henry:
Superior. So, it sounds such as you found wholesaling while you did a deal. You realized that discovering misery, speaking to individuals, helps you discover these offers. You discovered the individuals who have been going to take the offers off of your palms, generate the revenue. And so like every good enterprise at this level, it then turns into a query of scale, repeatability. How do I discover a option to repeat this? After which actually type of get again to the place you have been previous to ’08, which is constructing a enterprise and a crew round it. So, you’ve completely carried out that. So discuss to us about that transition. What does your enterprise appear like at the moment? How did you go from the place you have been at this level and scale to the place you might be? After which discuss to us a bit of bit about a few of these numbers. What’s it that this enterprise is producing for you and the way is it completely different from your enterprise in ’08?

Brent:
I adore it. So, as soon as I did that first deal, I’m going to dedicate my skilled life to this, truthfully, and so from 9 to midday each single day, I’d simply name owners. 9 to midday each single day and attempt to have as many conversations as attainable and discover as many alternatives as attainable. After which that led to doing a bunch of offers, which really I used to be capable of have a wholesome checking account. Truly, BiggerPockets was an enormous a part of this, as a result of there was a BiggerPockets meetup group at Dave & Buster’s at Tempe Market that I went to. And I invited everyone to return to a Tremendous Saturday, as a result of I used to be bored with individuals simply type of being round and simply getting idea and staying in an schooling mode. I used to be like, “Guys, I need to invite everyone to my workplace to make calls with me on Saturday morning and we’ll simply have a good time.”
And that led to me hiring my first acquisition supervisor, Billy Bell, as a result of he was doing a part-time and he got here in and his third name, he received a $12,000 deal. And I used to be like, “Okay, that is going to be…” And by the best way, that isn’t frequent. It takes some time. That’s only a timing factor there. However he was capable of get it, and so I began constructing my enterprise. One of the best return on funding that I had was making calls and hiring actually nice callers to make calls after I might afford actually nice callers. After which that actually sped up the method of rising the enterprise. And 1.7 million was the best that we’ve carried out, and that was with 4 individuals.
And that was with a operator, a lead supervisor, Jackie, she’s phenomenal. Two acquisition managers, Ryan and Chad. They’re absolute savages. And Jeremy, who’s my disposition supervisor. And now I work two hours within the enterprise per week.

Henry:
So, I’m making an attempt to zoom out right here in my psychological mind and get the timeline. So, previous to ’08, rockstar, doing it large, brokerage, 80 individuals. ’08, right down to nothing, proper? Downhill. 5 years handed. 2013, you’re within the automobile listening to self-help books, growth, epiphany, discuss to individuals. You go begin speaking to individuals, you do your first deal 2013. The place is it from 2013 to the place you’re hiring these first couple workers. What yr is that the place you’re having your conferences?

Brent:
Yeah, 2016 was the large yr.

Henry:
So, you simply did offers by yourself for 3 years, knocking it out of the park after which stated, “All proper, time to scale this factor.”

David:
So, in the event you have been to present us a rundown of what number of properties you’ve, how a lot they’re making in a yr, what your web value has grown to, what would you say?

Brent:
So, I’ve a special technique price. I purchase my properties money as a result of I foreclosed on them. So, I’ve received two rental properties, and this isn’t going to sound wonderful, however I’ve received two rental properties. I’ve received a wonderful workplace business house right here in Phoenix. I’ve received a cabin within the woods in Flagstaff, I’ve received my home. I invested 260,000 into ATM machines, which is a very attention-grabbing tax saving technique. Not like I’m going out placing ATM machines. It’s a fund. You guys had an interviewed Andrew Abernathy who builds Class A storage. I’m an investor in that. Invelo is a accomplice with BiggerPockets, an unimaginable know-how that I’m an investor in that. And I’ve received my teaching and coaching companies and all that. To not make it a pitch, however I’m at like $8 million in web value at this level.

David:
I don’t suppose there’s something improper with that in any respect. It makes good sense to me, since you expertise the bitter style of proudly owning a bunch of rental properties, watching how rapidly that will get turned the wrong way up and sinks, and recognizing, “I really like actual property. I don’t essentially love the publicity and the mortgages and this facet.” And also you simply determined for you, it’s type of like meals poisoning. You don’t simply cease consuming meals, however you cease consuming that meals. You don’t need to get entangled in that.
You don’t need to eat oysters anymore after you’ve some unhealthy oysters. So, you’re like, “I’m simply going to get into rooster and into steak. And so now you’re investing in different individuals’s corporations, you’re letting them tackle the headache of that. You’re taking all of the information that you just’ve collected and your enterprise sense and your love of actual property, and also you’re simply creating wealth by way of it. After which to not point out, how nicely is your wholesaling enterprise doing?

Brent:
Nicely, that’s it. I imply, guys, I work two to 3 hours within the enterprise, and that’s totally on crew conferences on Friday. And I get 40 to 60,000 relying on the month and the season and the yr passively basically. And so I believe it’s only a completely different manner to have a look at this business and a special option to perceive that you could possibly construct an actual enterprise that goes on the market and solves the issues of distressed property house owners and brings funding into a few of these areas and streets. Henry had a dialog the opposite day in regards to the be ok with fixing any individual’s drawback. The opposite really feel good is the six S’s which might be elevated with property taxes while you carry buyers onto a avenue or right into a group, proper? You’re speaking streets and security and sanitation, colleges, providers and areas. It’s wildly rewarding. It’s wildly rewarding.

David:
The issue as I see it, is there’s too many individuals which might be working off of a blueprint that was bought 10 years in the past. “Purchase 4 duplexes and retire and stay on the seaside and have your greatest life since you labored exhausting for a yr and a half.” They usually’re making an attempt to squeeze that spherical peg into the sq. gap of what we’ve got proper now, they usually’re getting pissed off. And it spills over into the feedback the place they’re pissed off or discouragement or it turns into disgrace. Like, “That individual might do it, however I couldn’t do it. I’m simply not ok.” And there’s this host of destructive feelings that’s related to a technique that labored when nobody knew about actual property. There wasn’t a whole lot of podcasts, there weren’t books being written. Should you didn’t know the previous man on the town that owned all of the offers, that’s was going to point out you the best way, you simply thought actual property investing was not possible.
When everybody on this planet thought that each mortgage was 20% down, these methods labored. The cat’s out of the bag, it’s sophisticated now. And I’m continually telling individuals it doesn’t should be work a job you hate or purchase sufficient properties to have passive revenue to retire. There’s a spectrum of choices within the center. And Brent, you’ve highlighted very clearly how one can mix a bit of little bit of enterprise, a bit of little bit of speaking, a bit of little bit of a service-based method, a bit of little bit of dedication and a bit of little bit of actual property collectively. I simply love that you just’re giving an instance of how one can make it give you the results you want. Henry, you’ve something you need to say about that?

Henry:
Completely, man. I believe that there are one million methods to make one million {dollars} and much more so inside actual property. And what I really like that you just’ve highlighted, Brent, is that it’s not nearly making the cash, however it’s about the way you shield your self. And so I admire that you just’re sharing a narrative that is probably not as conventional in the true property house, however so far as enterprise and studying and being proactive with the way you construct a enterprise, I believe that you just’ve given us some phenomenal info.

Brent:
Thanks. Can I say one thing controversial? I believe it is best to you’ve a license to purchase rental properties, and to get that license, you need to discuss to 1,000 property house owners. One, you’ll be capable to discover unbelievable offers, unbelievable offers, little question about it. However two, you’re going to grasp what technique goes to give you the results you want. How are you going to have the ability to have a look at the entire completely different conditions that these individuals have gone by way of since you’ve had conversations with them, and know what to keep away from in your particular market. And I believe in the event you do this, it’s going to save lots of you a ton of the, “I had all of it and misplaced in any respect,” tales. You already know what I imply? As a result of if it may be prevented, I actually hope that it’s. However I believe that it is best to discuss to 1,00 individuals before you purchase a rental property. And I believe that it is best to think about wholesaling a property earlier than you do a repair and flip, for certain.

David:
All proper. That’s implausible. We’re going to maneuver on to the subsequent section of our present, and this can be a distinctive section. We’re going to name this, Don’t Let the Deal Die. On this section, Brent and I are going to position play. I’m going to be a vendor right here, and Brent goes to attempt to discuss with me to get this deal throughout the road. On this instance, I’m going to be somebody who needs to maneuver out of state and I’ve to promote my major residence, and it’s going to be Brent’s job to determine my motivation and my ache level and hold this deal alive. So, I assume, Brent, we might simply begin it off with you doing the everyday ring ring. Yep.

Brent:
Ring ring.

David:
Good day.

Brent:
Hello, I’m on the lookout for David.

David:
That is David Cass, who’s calling?

Brent:
Yeah. Hello David. My identify is Brent Daniels. I do know that that is utterly random, however I used to be really calling a few property that I imagine you personal on 1212 Banana Avenue.

David:
Oh yeah. How do you know that I personal that?

Brent:
Yeah, I’m trying to purchase a property in that space, so I simply put it on the web and it got here again together with your identify and quantity, and typically I get fortunate and I’m capable of discuss to you.

David:
Oh, that’s attention-grabbing.

Brent:
Have you considered promoting that property?

David:
I don’t know the way you heard, however I even have been fascinated by promoting, as a matter of reality. It’s so loopy that you just known as.

Brent:
That’s wonderful. And simply to let you realize, the best way that we buy properties is we purchase them utterly money. It’s as is, so that you don’t should put one other dime into the property. There’s no actual property brokers, any prices there. We pay the title and escrow charges. So, it’s only a clear web supply to you. So, for a suggestion like that, did you’ve a worth in thoughts?

David:
Nicely, I’ve been trying on Zillow and I’ve been type of fascinated by speaking to an actual property agent additionally. I don’t need to give it away, however on the identical time, I must get it bought. I need to go away. This property’s been type of hanging over my head. You already know Banana Avenue, it’s type of hit and miss. I’m not likely certain. What do you suppose it’s value?

Brent:
The situation performs an enormous position, and I need to ensure that I may give you as a lot in your property as attainable. So, are you able to inform me, have you ever carried out any reworking to your kitchen and loos within the final 5 years?

David:
Nicely, I’ve a reasonably in depth sense of style. I’ve received a big assortment of roosters that I hold all through the kitchen. Some are on the fridge, some are on the counter tops. I’m unsure if I’m going to incorporate these within the sale but. It type of relies on if I need to carry them with me or not. After which additionally my fridge has been embellished with completely different magnets I’ve collected all through the years. However I imply, aside from that, if I’m simply being sincere with you, Brent, you appear to be an sincere man. It hasn’t been reworked since we purchased it, however it’s received to received that traditional really feel to it.

Brent:
Positive. And I’m taking a look at this, it seems to be prefer it was in-built 1974. It’s about 1,500 sq. toes, is that proper?

David:
Yeah, that’s proper. My spouse and I continuously talked about making some additions. We have been going so as to add on to it. We by no means really did that. So, it’s in its authentic state.

Brent:
Any points mechanically? Every little thing’s working advantageous. Any points that I would wish to know? Plumbing, electrical, roof, furnace?

Henry:
David, inform him in regards to the air conditioner. You by no means let me put the air conditioner beneath 60.

David:
Shh, Henry. Give me a minute. We’re speaking enterprise over right here.

Brent:
Nicely, hi there, Mrs. David, how are you?

Henry:
Oh, I’m advantageous. I’m simply listening in.

Brent:
Nicely, that’s nice. I’m glad that I’ve each you guys on the road. I’m going to provide the greatest money supply that I can in your property, as a result of I actually need to spend money on your neighborhood. Usually, we will shut these offers, simply to present you an concept of timeline, we will shut these offers in two weeks to 30 days. Do you suppose that that’ll be sufficient for you guys to have the ability to pack the whole lot up and transfer?

David:
Wow, two weeks to 30? That sounds actually quick. I imply we have been anticipating it to take about 90 days or so available on the market. And what I believe that we had needed to go have a look at homes out of state, however we have been going to promote this one first. What do you suppose, Brent? Do you suppose it’s higher to promote your home first, or do you suppose it’s higher to begin on the lookout for the subsequent one?

Brent:
It’s at all times nice to have a plan on the place you’re going to go subsequent so that you just’re actually snug with the choice that you just make and the timing by which you make that call. So, I believe that’s a fantastic concept. Should you have been to promote this, the place are you going to maneuver to subsequent?

David:
Nicely, we’re in Phoenix proper now, however it will get actually scorching within the summertime, and as you heard, I don’t like my spouse touching the thermostat. It’s inflicting some issues in our marriage. We’re combating about it on a regular basis. The grandkids come over they usually’re sweating inside the home. I believe it’s good for them as a result of it builds character, however my spouse received’t get off my again about it. We actually want to maneuver someplace the place air con’s not wanted. So, we’re fascinated by Fargo most likely. We expect our cash’s going to go a bit of bit additional there may be type of what we had in thoughts. Did you need to simply write us a suggestion and we’ll type of discuss it and see what we predict?

Brent:
You should buy a mansion in Fargo. That’s going to be actually thrilling. I imply it’s a giant change, however that’s actually, actually, actually thrilling. Yeah, I completely can put collectively a suggestion. I simply must know the place you guys are at in worth?

David:
Nicely, Zillow has it at about 350,000. So, we have been fascinated by itemizing it at perhaps like 345. We’ve heard that the market’s turning round. I heard some discuss rates of interest being up, so we don’t need to be grasping, however I used to be type of fascinated by itemizing in at 345 after which seeing the place it goes. However in the event you make me a suggestion, I’d take a bit of bit much less.

Brent:
Positive. That’s implausible. I’m on my pc proper now. I’m taking a look at properties in your space in related situation which might be related measurement, they usually’re really going for round 220,000. Is that one thing that you’d think about?

David:
Oh, I don’t suppose I noticed that. That’s a bit of bit to abdomen right here. Let’s see. Nicely, the stuff in Fargo’s solely about 150,000, so I suppose that’s not likely the top of the world. Nicely, what are you going to need me to do to the home? Otherwise you don’t need us to improve it? Do you want me to repair that jiggly deal with in the bathroom that we informed you about?

Brent:
That’s the perfect half, David. We take it utterly as is. I’ve received my crews prepared. They’re going to return in they usually’re going to make that home look completely unimaginable and simply replace it. I’m certain it already seems to be unimaginable, however simply replace it and put it as much as 2023 requirements. But when we could be round 220,000, that will be a web supply in your pocket. There’s nothing popping out of that. So, I’m not going to return again to you and hit you with a bunch of inspection objects.

Henry:
David, we might have 220,000 in two weeks?

David:
Nicely, hold on a second, hun. Nicely, let me ask you, Brent, are you pre-approved? As a result of I’ve been informed to solely cope with pre-approved critical patrons.

Brent:
And that’s actually good recommendation. However hear, you don’t want pre-approval while you’re shopping for it money. That is money within the financial institution prepared to present it to you. I’m prepared to present it to you as quickly as you guys are able to make the choice to while you need to shut, while you need to get your cash. So, I believe it sounds to me that you just’ve received some plan to maneuver. You bought to discover a new place, you’ve received to pack up your stuff. Why don’t we set this for 30 days? We are able to shut in 30 days at a worth of 220,000 and you then guys can simply be off to Fargo and having fun with that lovely brisk climate.

David:
We have been really fascinated by taking a visit on the market fairly quickly. Is there any likelihood that you just would possibly be capable to shut in 21 days, so if we discover one other property we like, we will use your cash to purchase it?

Brent:
Completely. Completely. I’ll inform you what, I’m going to be in your neighborhood this afternoon at three o’clock. Why don’t I come by and I can go over the settlement, just remember to guys are snug with each a part of the method, and we will transfer ahead and we will open up escrow and get this as carried out as clean as attainable.

David:
Okay. Wait one second, Brent. Hun, are you able to just remember to get the Lysol out and clear down the chickens and the roosters which might be on the fridge? We’re going to have firm.

Henry:
Not my chickens.

David:
Yeah, simply get them in them glistening. We need to make impression right here. All proper, Brett, I do suppose that that may work. Should you might be right here at three, we’ll be comfortable to satisfy you.

Brent:
Wonderful. And so after I come out, is there something that will forestall you guys from transferring ahead after I come out? If the whole lot, the value and the phrases, and also you guys like working with me, if the whole lot is in line there, is there something stopping you guys from transferring ahead at the moment?

David:
Nicely, we don’t need to make any repairs. That is one thing we simply need to be carried out with.

Brent:
As is.

David:
We need to transfer on. Yeah. So, if we don’t should do something and you’ll put $220,000 in our checking account in 21 days, I believe this is sensible for us and it’s most likely a blessing.

Brent:
Implausible. I’m so excited to satisfy you, Mr. And Mrs. David. That is going to be nice. I’ll see you at three o’clock.

David:
Okay. Thanks for calling.

Brent:
All proper. See you.

Henry:
Superior, Brent, that was a lot enjoyable. Thanks a lot. And you realize what? He’s so good at this. I don’t suppose individuals realized a whole lot of the intention behind the tone you had and the questions that you just requested. One which caught out to me as a very large deal is the query you requested on the finish. Is there something stopping you from getting this deal carried out basically on the finish? That’s one thing I’ve not carried out job of doing. And as quickly as you stated it, I used to be like, “Oh, that’s a fantastic concept.” Proper? So, I really like that you just have been talking with the top in thoughts.
Basically you have been saying, “I’m coming to get this deal signed. If there’s something that’s going to cease this factor from getting it signed, let me know what that’s now in order that I can attempt to take away that roadblock up entrance.” Man, I believed that was an exceptional, phenomenal query. What different intentional questions do you ask? And clearly you modified the phrases up for the scenario, however it appeared like there have been some very intentional questions you have been asking.

Brent:
Nicely, to begin with, thanks, David. Clearly on most position performs, individuals go actually, actually, actually brutal. And it’s like in actual life, if any individual’s going actual brutal, I simply transfer on. Any individual’s not going to do enterprise with you, you progress on. So, that was actually cool that we might unfold this. However there’s seven components to the proper name. The primary 4 we talked about already is situation, timeline, motivation, worth. So, that’s what I used to be asking about. What was the situation? What reworking have you ever carried out to your kitchen and the loos, something mechanical? And I do this as primary, as a result of individuals are snug speaking about their property earlier than their scenario or their feelings. And what sometimes occurs, and it occurred on this dialog, is when you get the situation and the timeline, they often, in the event you do it proper, they provide the motivation.
“We need to transfer, we don’t need to do something. Fixing up issues is a giant difficulty for us. We don’t need to do this.” After which on the value, what I do is I go searching and I don’t provide the supply of 220,000. What I stated was, “It seems to be like your neighbors in related situation, in related measurement, are promoting for 220,000.” And that’s just like the anchor. That’s saying, nicely, that’s what different individuals are promoting it for is that’s one thing that they’d think about. And at that time they’re like, “No, I’d by no means promote for that. I want not less than this worth.” After which you could possibly go on to completely different conversations there. So, we did the situation, timeline, motivation, worth. It’s the primary 4. The following three to actually be nice on the cellphone is affirm and approve the whole lot. Oh, roosters implausible. Oh, magnets, sure.
Oh, you need that worth? Nice. Implausible. Don’t trigger friction within the dialog by telling them they’re improper. The opposite one is to actively hear. And it was type of powerful to do right here, as a result of we’re on display, however it’s like, “Uh-huh. Yeah, certain. Oh, nice. That’s nice. Uh-huh.” Don’t simply be silent while you ask a query as a result of it seems like an interrogation as an alternative of a dialog. After which the final one is each time they ask a query, reply the query after which ask a query. Simply don’t do this previous 80 gross sales tactic the place they’re like, “Nicely, how a lot will you give me?”
“Nicely, how a lot would you like?” You already know what I imply? Don’t simply reply a query with a query. That’s old-fashioned and individuals are actually aggravated with that. So, reply the query, ask a query. So, that’s actually the seven steps, is the 4 prequel, affirm and approve, lively listening, and reply query and ask a query.

Henry:
One other factor that you just did nicely that I believe is one thing to be highlighted is after I chimed in because the spouse, you instantly stopped and acknowledged that the spouse was there. Numerous the occasions individuals simply need to discuss to the choice maker. They simply need to discuss to whoever answered the cellphone. They don’t acknowledge any individual else, however you taking the time to point out the respect, to acknowledge the vendor’s spouse and say, “Hey, I hear you, and I additionally need to think about your ideas, opinions, and emotions,” which is actually what we’re doing by doing that, additionally helps you construct that belief. And that belief helps you get offers carried out.

David:
That’s an excellent level. Many occasions as an actual property agent, I’ve bought one occasion within the marriage that I’ve been speaking to and thought I had a deal, after which the opposite one wasn’t acknowledged or didn’t get their objections dealt with or didn’t really feel like they have been included, they usually get within the ear of their partner they usually blow it up. And I’ve realized that lesson that you just at all times have to determine who’re the opposite determination makers there. And I believe Brent, you have been getting at that while you’re like, “Let me come to the home and meet each of you.” Construct rapport with each of you so I don’t find yourself with one one that’s an undercover saboteur. That does occur in these offers a whole lot of the time.

Brent:
And also you get superior agreements earlier than you go on the appointment so you’ll be able to pull… I’d relatively know what I’m up in opposition to earlier than I’m going on the market, than getting stunned. In the event that they’ve already confirmed that they need this they usually don’t need to make repairs they usually need to transfer fast, then that’s the proper match, and also you go and also you get that deal.

David:
All proper. Nicely, Brent, thanks very a lot. That was enjoyable. Thanks for displaying us what it seems to be like in motion in addition to sharing the story. It’s a implausible story. I cherished listening to it. For those who need to discover out extra about you, the place can they go?

Brent:
My YouTube channel is simply Brent Daniels. You may positively examine that out. We put a whole lot of time and a spotlight and love into that. And wholesalinginc.com. Wholesalinginc.com. We have now a ton of downloads and unimaginable issues which you could get there. And people are the 2 greatest methods.

David:
Superior. How about you, Henry?

Henry:
Yeah, as at all times, man, greatest place to succeed in me is Instagram. I’m @TheHenryWashington on Instagram.

David:
There you go. I’m on Instagram as nicely, and in all places else on social media @DavidGreen24. You could find me on YouTube as nicely at youtube.com/@DavidGreen24. Brent, thanks once more for being right here. That is implausible. I extremely encourage everyone to go study extra about gross sales, actual property, enterprise and psychology by following Brent. Brent, we’ll should have you ever on once more sooner or later. Thanks once more, man.

Brent:
It’s an honor. Thanks guys.

David:
That is David Inexperienced for Henry my boo Washington, signing off.