David:
That is the BiggerPockets Podcast present 731.

Brent:
I feel 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 arduous and I’m going to be very nice and I’m going to deliver 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 value and we’ll make a deal.” And that by no means occurs. You have to have a dialog of what’s the situation, timeline, motivation, value, and the timeline is an important 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 most effective, the largest, and the baddest actual property investing podcast on the earth. Right here immediately with my co-host, Henry Washington, the place we deliver you one other wonderful interview immediately with Brent Daniels. Brent runs a wholesaling enterprise that may be very profitable, talks to lots of people, and often places offers collectively that different individuals would let die. And in immediately’s present, we hear about his rags to riches story and numerous different data. Henry, first off, good morning and second, what had been a few of your favourite elements of immediately’s interview?

Henry:
Hey, man, good morning. Blissful to be right here. Man, what an unbelievable story. I feel 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 doable. And what I really like about Brent’s story is, man, he went via some lows, didn’t he? And so it’s an exquisite story about learn how to put together your self for what could possibly be the unknown, learn how to pivot your online business if you’ll want to, after which how not to surrender however rebuild in a better approach and leveraging all the abilities. As a result of all Brett did was leverage the abilities that he had constructed previous to every part falling aside. He simply leveraged them another way to rebuild himself greater and higher than ever.

David:
Yeah, that’s precisely proper. And if you happen to’re following what’s happening within the financial system, then you must acknowledge it’s very probably, I don’t know we’ll see it to the dimensions of what we noticed in ’08 via 2010, but it surely’s very probably 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 once they occur and learn how to play these playing cards, as a result of there’s lots of people that could possibly be going via very related circumstances to what immediately’s visitor went via himself. Additionally, you wish to be sure you pay attention all the best way to the top on this one, as a result of you’ll get to see what a wedding between Henry and I’d appear like in another universe. At this time’s fast tip is dropped at you by Henry Washington.

Henry:
Sure, immediately’s fast tip is to recollect to remain grounded. We speak about on this episode, epiphany factors, epiphany moments. And you could have already had your epiphany second whenever you’re listening to this. It could be why you’re listening to this. Troublesome occasions occur, challenges will occur, however if you happen to can bear in mind again to that second whenever you knew you needed to make a change, otherwise you knew you had been at your lowest and you’ll see that you just’re not there anymore and also you is probably not the place you wish to be, however you’re not the place you had been whenever you had that epiphany second, it’s going to enable you to notice that issues are higher than you suppose they’re, and also you’re transferring in the suitable path. So, be sure you write down these epiphany moments. Ensure you reference them typically.

David:
Nice level, Henry. Thanks for that. Let’s usher in Brent. At this time’s visitor on the podcast is Brent Daniels. Brent is a wholesaler who runs a wholesaling enterprise. He’s been grossing over 1,000,000 {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 truth, he was a Corridor of Fame soccer participant at his school, and I assumed he was knowledgeable wrestler. Brent, welcome to the present.

Brent:
Effectively, 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 feel we’re going to have numerous 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 that are listening.

David:
Yeah, I recognize you saying that. Considered one of my favourite elements about your story that I’ve heard thus far is the rags to riches ingredient of it. I imply, you went from the bottom of low’s. No offense, it simply appears like horrible, horrible state of affairs, and simply fought your approach out of that factor to be at some extent the place so many individuals try to get to proper now. And I really like these tales, as a result of whenever you get from some extent you don’t wish to be to a degree you do, breadcrumbs get left, after which different individuals can observe 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 immediately so our listeners can observe 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 kind of highlights what your journey has been like? Any lesson or ingredient or motto that you just took or was shaped throughout these occasions?

Brent:
Yeah, I bear in mind I used to be driving and my son was possibly 16 months outdated, 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 referred to as Easy methods to Cease Worrying and Begin Residing. And I’m listening to this guide, I’ve bought a crying child, and I’m like I’ve mirrored so much, I’ve accomplished numerous 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 feel it was that second proper there that was like, “Okay, I would like to simply exit and I would like to enter the streets. I would like to search out property house owners which have these older rundown beat up homes and I would like to speak to them.” And that’s what modified every part for me. And up till that time, it was only a catastrophe. I imply I screwed up every part that I may financially and emotionally I feel. It’s this walnut measurement factor in my mind that I am going again to every time I feel I’m actually cool, or I’ve made a bunch, or I attempt to recover from my skis slightly bit, I am going again to that day listening to that Audible guide and be like, “What? Oh my gosh, life is so significantly 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, but it surely’s a panic assault that modified my life. And I at all times look again at that as this sort of place marker in my life the place every part began to show round. And so I really like that you just share that. You mentioned this was about 2013?

Brent:
Yeah.

Henry:
And also you had by no means accomplished 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 bought an actual property license. There wasn’t YouTube, there wasn’t podcasts, there wasn’t BiggerPockets, there wasn’t something on the market to essentially give me path. 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 college, 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 recognize what I imply?
The market was going bananas. All the pieces was thrilling. I used to be studying learn how to assist individuals purchase and promote, and I’ve numerous household right here in Phoenix. And they also needed to maneuver and benefit from their appreciation. So, whenever you’re 22, 23 years outdated 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 perpetually. That is going to be unbelievable.” And I began the pure development, that’s I needed to open up a brokerage that may be an funding/actual property brokerage. And I used to be instructed, “Effectively, you possibly can 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 approach for some time. And once they modify,” and I had no thought what adjustable fee mortgages had been, “once they modify, 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 bought repoed. Nothing is crazier than seeing some burly dude with flashing yellow lights, pull your automobile that you just put all of your satisfaction and ego into, out of your driveway and simply go away. So, that was actually tough. That was powerful, however the more durable 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, brief 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 appears 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 then you definately constructed this crew. A brokerage is an enormous deal. It’s not one thing small. Speak to us slightly bit about what that brokerage seemed like. How many individuals did you’ve got? What did you set in to construct that?

Brent:
Yeah, we had 80 individuals and I had 4 different companions. We had workplace workers and we had every part. And when earnings is just not coming in and also you’ve bought big bills, it goes down quick. And all people seemed to me and the opposite house owners as leaders, and we’re scrambling. We’re 29 years outdated, we’re 28 years outdated, I don’t know what’s happening. I’ve by no means gone via 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 preserve you round anymore,” and having to let all people go. And that’s actually influenced my enterprise rules to today. Massive time.

Henry:
I imply that’s an enormous, for lack of a greater time period, that’s an enormous intestine punch, proper? Not simply to your private, seeing your automobiles get taken out of your driveway, however we talked slightly bit about this every week in the past. What was it like or what probably 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 an enormous hangover after that have, however we had 5 workers members full-time and we had 70 brokers on the time that every 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 fascinating factor is, in case anyone didn’t know this, however if you happen to 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 vastly embarrassing since you construct up a popularity in the actual property enterprise. It’s not an enormous group. And so that every 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 bought an anchor round your neck. I’m out of right here.” So, you throw a divorce in on prime of that, and it turned actual ugly internally. Actually, actually, actually ugly.

David:
Yeah, that’s one thing I feel we should always take a second to spotlight, as a result of that occurred to you, but it surely doesn’t sound such as you made any big errors. It wasn’t such as you made an apparent unhealthy resolution. You didn’t get into medication, you didn’t go purchase fully silly issues. I imply you probably did what most individuals do once they’re making first rate cash. It’s very simple, very simple to do that, and it’s simple for this to occur to anyone. That’s the primary level I simply wish to spotlight for everyone listening. The second is that’s why pivoting is so vital. You’ve bought 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 one knew when September eleventh was going to hit. One thing may occur the day that this podcast drops. We don’t know. It’s this capacity to have the ability to take a look at the knowledge and adapt that makes you profitable, versus simply give me a blueprint, inform me what to do. I simply wish to take 4 steps and I wish to construct up some cash. So, as you’re on this state of affairs the place issues are very ugly internally in addition to your private life, I imply to now have your companion 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 successful. You flip to the one who’s presupposed to be within the trenches with you and there’s nothing there. They’re like, “Peace. I’m searching for greener pastures some other place.” It’s simply you. What sort of ideas had been going via your thoughts? Once you would get up within the day, what was your day like?

Brent:
I used to be paralyzed, I’ll be trustworthy with you. It’s not like I used to be like, “Oh, you recognize what? I learn this guide and I met this particular person and every part simply rotated and I bought again on the saddle and I used to be driving.” It was like 5 years of simply determining learn how to get by. An excellent good friend of mine, Dustin Monger, who’s an unbelievable 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 common. However I moved all my stuff out of my 4,000 sq. foot home and I used to be left with just some bins and my mattress and I moved in there.
And I used to be capable of get a possibility with a Remax brokerage that was promoting all of the REOs, the financial institution owned properties, and the market went approach down in Phoenix and these properties had 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 wish to see this home.” And so all day, each day I’d should drive round city on this beat up outdated Lexus that my dad gave me a 2000 ES 300 Lexus that was like sand coloured, you recognize what I imply? That had simply had horrible hail harm. And I’m driving round on this factor and exhibiting properties and making possibly like 500 bucks, 1,000 bucks after splits making an attempt to do this.
After which as quickly as I’d get my head above water slightly bit, I’d get a name from the man’s lawyer they usually’d be like, “Okay, we’re going to do a monetary assessment. Are available in 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 Easy methods to Cease Worrying and Begin Residing. I nonetheless have it on my Audible. I imply I haven’t listened to it since then. And I made a decision, you recognize 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 numerous fixing and flippers that love this space. It’s nonetheless actually common.
So, I’m going to simply go see if I can discover some alternatives and hope that if I deliver 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 wish 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 crammed with 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 mentioned, “Okay.”
She gave me a reputation, tackle and telephone quantity. I put that deal collectively and earned the fee on that. And I spotted at that second, if you happen to give me a reputation, tackle and telephone variety of any individual that owns an unsightly home or is in an unsightly state of affairs, I can get myself out of this factor. I may do something. I may 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 accomplished virtually $10 million in earnings from that, numerous 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 appears like. So, as soon as you bought uncovered to wholesaling and also you noticed what the revenue margins appear like and the way you possibly can do that with out all the baggage that comes from working a conventional brokerage, what had been your subsequent steps for selecting up steam and constructing momentum in that enterprise?

Brent:
So, I spotted 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 sizzling. Door knocking in August in Arizona is brutal. And I used to be like, “I would like to search out air-con. I would like to have the ability to get the telephone numbers.” And the brokerage that I had joined after Remax had skip tracing. That they had this account referred to as LexusNexus. And so we may simply put in addresses they usually’d give us the telephone 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 tackle. I’d simply write them down on a pad of paper and a pen, and I’d return and I’d pull their telephone quantity and I’d simply name them and fumble and stumble at first after which type of discovered a very good 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 value me something.

Henry:
No, man, I feel 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 had been going out and also you had been discovering homes, you had been going out and also you had been discovering conditions that had 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 slightly bit about a few of 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 mentioned you developed the script, however I’m certain you developed that script since you knocked on numerous 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 creating a script and understanding learn how to have these conversations with individuals?

Brent:
Yeah, I adore it. They are saying all-time low is unbelievable as a result of it’s a robust basis. I imply it really is. What I realized is there’s solely a certain quantity of distressed property house owners in a market. And I talked to Steve Trang about this, and I’ve checked out a few of the census and it says 6% to 10% of the actual property market is in misery always. So, I didn’t give attention to the 94%, I targeted on the 6% that had 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 ultimately they should promote to any individual. They’re simply not financeable for probably 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 can be in misery. That was primary, as a result of you possibly can waste numerous time making an attempt to persuade any individual that has a fantastic 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 numerous 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 state of affairs, they’re on Hell Island, they usually wish 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 checklist this property?” “Effectively, I hate realtors and I’m embarrassed and my canine will chunk them and issues will occur, and I don’t wish to checklist my property.” “Proper. Okay, effectively, why don’t you hire it out?” “Effectively, 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?” “Effectively, all of the household hates one another and we don’t wish to do it.”
So, you undergo all these totally different bridges that may 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, primarily, whenever you’re having these kinds of conversations, it’s not simply that you just’re exhibiting 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 exhibiting them really entails any individual aside from you earning money in that transaction. Would you say that a part of your capacity 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 via some misery conditions again whenever you had the repossessions and numerous the problems you had been having?

Brent:
100%. And pay attention, if there’s a greater possibility for them, I would like them to go along 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 good friend or an lawyer or an agent or any individual that’s going to offer them a greater choice to make extra. You recognize what I imply? So, sure, it’s, as a result of I went via that and I perceive and might have empathy from an actual life, actual expertise, however there’s no trickery on this enterprise. You recognize what I imply? It must be the most suitable 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 take a look at it, and what I found is there’s three issues. There’s pace, comfort, and value.
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 value 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, once we’re speaking to individuals, speaking to those property house owners, we go, “Okay, pay attention, do you wish to commerce potential fairness on this property for pace and comfort? If not, go checklist the property. Go checklist it. Go hire it out once more, go do no matter else you need.” And it shocks individuals, that individuals go, “No, no person would ever do this.”
It occurs each single second of each minute of each hour of each day in the actual property enterprise, is any individual is buying and selling potential fairness for pace and comfort.

David:
That could be a sensible technique when speaking to the vendor. And I do know lots of people could be afraid to deliver it up as a result of their ideas could be, “Effectively, I don’t wish to tempt them with the concept that 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 particular person with the property is considering is, “I would like all three. I would like pace, I would like comfort, and I would like value.”
They usually’re making an attempt to navigate this relationship with you or whoever the particular person is that they’re negotiating with, into getting all three issues they usually’re naive. It’s not going to occur. You perceive, effectively, 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 hundreds of repetitions of those conversations led you to realizing that is the best way to get to the conclusion?

Brent:
To start with, I realized that from Todd Toback and Tom Krol, they usually’re unbelievable. I imply once they instructed me that, it completely made sense. So, it’s not unique 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 numerous them they usually simply don’t really feel like they know the suitable 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 value 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 truly 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 whenever you’re being proactive, you get all of those unbelievable those who filter via, and people are the offers that you just really do. So, I feel 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 arduous and I’m going to be very nice and I’m going to deliver 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 value and we’ll make a deal. And that by no means occurs.
You have to have the dialog of what’s the situation, timeline, motivation, value, and the timeline is an important 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 state of affairs is and how one can assist clear up no matter downside that they’ve. After which that retains you actually targeted on the most popular leads that you’ve got in your online business. And that’s the way you get the consistency to shut these offers and get actually huge offers.

Henry:
Superior. So, it sounds such as you found wholesaling whenever you did a deal. You realized that discovering misery, speaking to individuals, helps you discover these offers. You discovered the individuals who had been going to take the offers off of your arms, generate the earnings. And so like several 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 had been previous to ’08, which is constructing a enterprise and a crew round it. So, you’ve completely accomplished that. So discuss to us about that transition. What does your online business appear like immediately? How did you go from the place you had been at this level and scale to the place you might be? After which discuss to us slightly bit about a few of these numbers. What’s it that this enterprise is producing for you and the way is it totally different from your online business 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 householders. 9 to midday each single day and attempt to have as many conversations as doable and discover as many alternatives as doable. After which that led to doing a bunch of offers, which really I used to be capable of have a wholesome checking account. Really, 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 all people to return to a Tremendous Saturday, as a result of I used to be uninterested in individuals simply type of being round and simply getting concept and staying in an training mode. I used to be like, “Guys, I wish to invite all people 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 bought a $12,000 deal. And I used to be like, “Okay, that is going to be…” And by the best way, that isn’t widespread. 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. The most effective return on funding that I had was making calls and hiring actually nice callers to make calls after I may 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 accomplished, 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 every 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 huge, 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 12 months is that the place you’re having your conferences?

Brent:
Yeah, 2016 was the massive 12 months.

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

David:
So, if you happen to had been to offer us a rundown of what number of properties you’ve got, how a lot they’re making in a 12 months, what your web value has grown to, what would you say?

Brent:
So, I’ve a special technique fee. I purchase my properties money as a result of I foreclosed on them. So, I’ve bought two rental properties, and this isn’t going to sound wonderful, however I’ve bought two rental properties. I’ve bought a wonderful workplace business house right here in Phoenix. I’ve bought a cabin within the woods in Flagstaff, I’ve bought my home. I invested 260,000 into ATM machines, which is a extremely fascinating 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 companion with BiggerPockets, an unbelievable expertise that I’m an investor in that. And I’ve bought 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 fallacious 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 shortly 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 aspect.” 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 wish to get entangled in that.
You don’t wish to eat oysters anymore after you’ve got some unhealthy oysters. So, you’re like, “I’m simply going to get into hen and into steak. And so now you’re investing in different individuals’s firms, you’re letting them tackle the headache of that. You’re taking all of the data that you just’ve collected and your online business sense and your love of actual property, and also you’re simply earning money via it. After which to not point out, how effectively is your wholesaling enterprise doing?

Brent:
Effectively, that’s it. I imply, guys, I work two to a few 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 12 months passively primarily. And so I feel it’s only a totally different approach to take a look at this business and a special option to perceive that you possibly can 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 concerning the be ok with fixing any individual’s downside. The opposite really feel good is the six S’s which can be elevated with property taxes whenever you deliver buyers onto a avenue or right into a group, proper? You’re speaking streets and security and sanitation, faculties, 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 can be working off of a blueprint that was offered 10 years in the past. “Purchase 4 duplexes and retire and stay on the seashore and have your greatest life since you labored arduous for a 12 months and a half.” They usually’re making an attempt to squeeze that spherical peg into the sq. gap of what we have now 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 particular person may do it, however I couldn’t do it. I’m simply not adequate.” And there’s this host of unfavourable feelings that’s related to a technique that labored when nobody knew about actual property. There wasn’t numerous podcasts, there weren’t books being written. Should you didn’t know the outdated man on the town that owned all of the offers, that’s was going to indicate you the best way, you simply thought actual property investing was not possible.
When everybody on the earth thought that each mortgage was 20% down, these methods labored. The cat’s out of the bag, it’s difficult now. And I’m continuously telling individuals it doesn’t should be work a job you hate or purchase sufficient properties to have passive earnings to retire. There’s a spectrum of choices within the center. And Brent, you’ve got highlighted very clearly how one can mix slightly little bit of enterprise, slightly little bit of speaking, slightly little bit of a service-based method, slightly little bit of dedication and slightly little bit of actual property collectively. I simply love that you just’re giving an instance of how one can make it be just right for you. Henry, you’ve got something you wish to say about that?

Henry:
Completely, man. I feel that there are 1,000,000 methods to make 1,000,000 {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, but it surely’s about the way you shield your self. And so I recognize that you just’re sharing a narrative that is probably not as conventional in the actual property house, however so far as enterprise and studying and being proactive with the way you construct a enterprise, I feel that you just’ve given us some phenomenal data.

Brent:
Thanks. Can I say one thing controversial? I feel you must you’ve got a license to purchase rental properties, and to get that license, you need to discuss to 1,000 property house owners. One, you’ll have the ability to discover unbelievable offers, unbelievable offers, little question about it. However two, you’re going to know what technique goes to be just right for you. How are you going to have the ability to take a look at all the totally different conditions that these individuals have gone via since you’ve had conversations with them, and know what to keep away from in your particular market. And I feel if you happen to 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 recognize what I imply? As a result of if it may be prevented, I actually hope that it’s. However I feel that you must discuss to 1,00 individuals before you purchase a rental property. And I feel that you must take into account wholesaling a property earlier than you do a repair and flip, for certain.

David:
All proper. That’s unbelievable. We’re going to maneuver on to the subsequent phase of our present, and it is a distinctive phase. We’re going to name this, Don’t Let the Deal Die. On this phase, 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 preserve this deal alive. So, I assume, Brent, we may simply begin it off with you doing the everyday ring ring. Yep.

Brent:
Ring ring.

David:
Good day.

Brent:
Hello, I’m searching 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 fully random, however I used to be really calling a couple of property that I consider 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 generally I get fortunate and I’m capable of discuss to you.

David:
Oh, that’s fascinating.

Brent:
Have you considered promoting that property?

David:
I don’t understand how you heard, however I even have been enthusiastic about promoting, as a matter of truth. It’s so loopy that you just referred to as.

Brent:
That’s wonderful. And simply to let you recognize, the best way that we buy properties is we purchase them fully 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 proposal like that, did you’ve got a value in thoughts?

David:
Effectively, I’ve been trying on Zillow and I’ve been type of enthusiastic about speaking to an actual property agent additionally. I don’t wish to give it away, however on the identical time, I must get it offered. I wish to go away. This property’s been type of hanging over my head. You recognize Banana Avenue, it’s type of hit and miss. I’m probably not certain. What do you suppose it’s value?

Brent:
The situation performs an enormous position, and I wish to guarantee that I can provide you as a lot in your property as doable. So, are you able to inform me, have you ever accomplished any reworking to your kitchen and bogs within the final 5 years?

David:
Effectively, I’ve a reasonably in depth sense of style. I’ve bought a big assortment of roosters that I preserve 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 wish to carry them with me or not. After which additionally my fridge has been embellished with totally different magnets I’ve collected all through the years. However I imply, aside from that, if I’m simply being trustworthy with you, Brent, you appear to be an trustworthy man. It hasn’t been reworked since we purchased it, but it surely’s bought to bought that basic really feel to it.

Brent:
Certain. And I’m this, it seems prefer it was inbuilt 1974. It’s about 1,500 sq. toes, is that proper?

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

Brent:
Any points mechanically? All the pieces’s working nice. Any points that I would want to know? Plumbing, electrical, roof, furnace?

Henry:
David, inform him concerning the air conditioner. You by no means let me put the air conditioner under 60.

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

Brent:
Effectively, hiya, Mrs. David, how are you?

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

Brent:
Effectively, 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 wish to spend money on your neighborhood. Sometimes, we will shut these offers, simply to offer you an thought 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 every part up and transfer?

David:
Wow, two weeks to 30? That sounds actually quick. I imply we had been anticipating it to take about 90 days or so available on the market. And what I feel that we had needed to go take a look at homes out of state, however we had been going to promote this one first. What do you suppose, Brent? Do you suppose it’s higher to promote your own home first, or do you suppose it’s higher to start out searching 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 during which you make that call. So, I feel that’s a terrific thought. Should you had been to promote this, the place are you going to maneuver to subsequent?

David:
Effectively, we’re in Phoenix proper now, but it surely will get actually sizzling 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 preventing about it on a regular basis. The grandkids come over they usually’re sweating inside the home. I feel it’s good for them as a result of it builds character, however my spouse gained’t get off my again about it. We actually want to maneuver someplace the place air-con’s not wanted. So, we’re enthusiastic about Fargo in all probability. We expect our cash’s going to go slightly bit additional there’s type of what we had in thoughts. Did you wish to simply write us a proposal and we’ll type of speak about it and see what we predict?

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

David:
Effectively, Zillow has it at about 350,000. So, we had been enthusiastic about itemizing it at possibly like 345. We’ve heard that the market’s turning round. I heard some speak about rates of interest being up, so we don’t wish to be grasping, however I used to be type of enthusiastic about itemizing in at 345 after which seeing the place it goes. However if you happen to make me a proposal, I’d take slightly bit much less.

Brent:
Certain. That’s unbelievable. I’m on my laptop proper now. I’m properties in your space in related situation which can be related measurement, they usually’re really going for round 220,000. Is that one thing that you’d take into account?

David:
Oh, I don’t suppose I spotted that. That’s slightly bit to abdomen right here. Let’s see. Effectively, the stuff in Fargo’s solely about 150,000, so I suppose that’s probably not the top of the world. Effectively, 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 instructed you about?

Brent:
That’s the most effective half, David. We take it fully as is. I’ve bought my crews prepared. They’re going to return in they usually’re going to make that home look completely unbelievable and simply replace it. I’m certain it already seems unbelievable, however simply replace it and put it as much as 2023 requirements. But when we might be round 220,000, that may 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 may have 220,000 in two weeks?

David:
Effectively, hold on a second, hun. Effectively, let me ask you, Brent, are you pre-approved? As a result of I’ve been instructed to solely take care of pre-approved severe consumers.

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

David:
We had been really enthusiastic about taking a visit on the market fairly quickly. Is there any likelihood that you just may have the ability 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 be sure you 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 accomplished as clean as doable.

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

Henry:
Not my chickens.

David:
Yeah, simply get them in them glistening. We wish to make a very good impression right here. All proper, Brett, I do suppose that that may work. Should you could possibly be right here at three, we’ll be glad to satisfy you.

Brent:
Glorious. And so after I come out, is there something that may forestall you guys from transferring ahead after I come out? If every part, the value and the phrases, and also you guys like working with me, if every part is in line there, is there something stopping you guys from transferring ahead immediately?

David:
Effectively, we don’t wish to make any repairs. That is one thing we simply wish to be accomplished with.

Brent:
As is.

David:
We wish 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 feel this is smart for us and it’s in all probability a blessing.

Brent:
Improbable. 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 recognize what? He’s so good at this. I don’t suppose individuals realized numerous the intention behind the tone you had and the questions that you just requested. One which caught out to me as a extremely huge deal is the query you requested on the finish. Is there something stopping you from getting this deal accomplished primarily on the finish? That’s one thing I’ve not accomplished a very good job of doing. And as quickly as you mentioned it, I used to be like, “Oh, that’s a terrific thought.” Proper? So, I really like that you just had been talking with the top in thoughts.
Basically you had 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 assumed that was an outstanding, phenomenal query. What different intentional questions do you ask? And clearly you modified the phrases up for the state of affairs, but it surely appeared like there have been some very intentional questions you had been asking.

Brent:
Effectively, 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. Anyone’s not going to do enterprise with you, you progress on. So, that was actually cool that we may unfold this. However there’s seven elements to the right name. The primary 4 we talked about already is situation, timeline, motivation, value. So, that’s what I used to be asking about. What was the situation? What reworking have you ever accomplished to your kitchen and the bogs, something mechanical? And I do this as primary, as a result of individuals are snug speaking about their property earlier than their state of affairs or their feelings. And what sometimes occurs, and it occurred on this dialog, is when you get the situation and the timeline, they often, if you happen to do it proper, they provide the motivation.
“We wish to transfer, we don’t wish to do something. Fixing up issues is an enormous challenge for us. We don’t wish 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 mentioned was, “It seems like your neighbors in related situation, in related measurement, are promoting for 220,000.” And that’s just like the anchor. That’s saying, effectively, that’s what different individuals are promoting it for is that’s one thing that they’d take into account. And at that time they’re like, “No, I’d by no means promote for that. I would like at the very least this value.” After which you possibly can go on to totally different conversations there. So, we did the situation, timeline, motivation, value. It’s the primary 4. The subsequent three to essentially be nice on the telephone is verify and approve every part. Oh, roosters unbelievable. Oh, magnets, sure.
Oh, you need that value? Nice. Improbable. Don’t trigger friction within the dialog by telling them they’re fallacious. The opposite one is to actively pay attention. And it was type of powerful to do right here, as a result of we’re on display, but it surely’s like, “Uh-huh. Yeah, certain. Oh, nice. That’s nice. Uh-huh.” Don’t simply be silent whenever you ask a query as a result of it appears like an interrogation as an alternative of a dialog. After which the final one is every time they ask a query, reply the query after which ask a query. Simply don’t do this outdated 80 gross sales tactic the place they’re like, “Effectively, how a lot will you give me?”
“Effectively, how a lot would you like?” You recognize 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, verify and approve, lively listening, and reply query and ask a query.

Henry:
One other factor that you just did effectively that I feel is one thing to be highlighted is after I chimed in because the spouse, you instantly stopped and acknowledged that the spouse was there. Lots of the occasions individuals simply wish to discuss to the choice maker. They only wish to discuss to whoever answered the telephone. They don’t acknowledge any individual else, however you taking the time to indicate the respect, to acknowledge the vendor’s spouse and say, “Hey, I hear you, and I additionally wish to take into account 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 accomplished.

David:
That’s an excellent level. Many occasions as an actual property agent, I’ve offered one celebration 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 had 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 resolution makers there. And I feel Brent, you had been getting at that whenever 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 who’s an undercover saboteur. That does occur in these offers numerous the time.

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

David:
All proper. Effectively, Brent, thanks very a lot. That was enjoyable. Thanks for exhibiting us what it seems like in motion in addition to sharing the story. It’s a unbelievable story. I liked listening to it. For those who wish 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 numerous time and a focus and love into that. And wholesalinginc.com. Wholesalinginc.com. Now we have a ton of downloads and unbelievable issues you can 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 effectively, and in all places else on social media @DavidGreen24. You could find me on YouTube as effectively at youtube.com/@DavidGreen24. Brent, thanks once more for being right here. That is unbelievable. I extremely encourage all people to go be taught 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.