Real Estate Broker Starts Wholesaling In Real Estate Mentor Program
Dave: Hi, I’m Dave Dinkel. I’m here today with Daryl. Daryl has been on the program a little over a year, sort of part-time and I say that because he has a very successful full-time business. We were talking a little bit before we did this video and I didn’t know this. Daryl has been a broker for 18 years. Amazing. And he has been very successful in the past when the market was great. How could you go wrong, right?
Daryl: Yeah, that’s right. That’s what I thought.
Dave: And he was referred to us originally by one of other students, Ray, who has had for the last three years the largest wholesale net profits. You know they’re all over $80,000 up to $104,000 and so you got to do some of those.
Daryl: I’ll get there.
Dave: But you haven’t been doing bad. What’s interesting, first time I met Daryl, is he had a driver. He was going around in a car with a driver and doing your work in the car. And what’s even more interesting is he trained his driver to do the scripts even though the driver didn’t understand what he was doing.
Dave: Is that fair to say?
Daryl: That’s fair to say.
Dave: So last year, you brought in a little over about $90,000 or so but that’s in addition to your regular business.
Dave: Let’s talk about the deal you just completed not long ago. Week or so or two weeks ago?
Daryl: It was about – it closed about a month ago.
Dave: OK. So, you netted about 31,000 bucks in a wholesale deal. Tell us about the deal. Is there anything different?
Daryl: Well, it came from the driver reading my script and I would field the phone call after a certain point but it actually was something that came from left field, from a relationship that was developed and an offer that was made that we actually stopped tracking because it had been so long. And I got a phone call from a Realtor® that a case just popped out of probate and wanted to confirm that I still want to be the buyer. And I ended up, I had ability to buy it and we flipped it the day that we were able to clear the title.
Dave: Yeah. So I think what’s really impactful about this is he had a virtual assistant except it was a real assistant in the car.
Daryl: Yeah, I was learning how to sign rules and responsibilities and being able to limit it and track what responsibilities people had and knowing what the limitations are of the people around them.
Dave: And because of the market in general, the stock market in general, one of the things you’re going to do this year is get back in more hands on and more full in.
Daryl: Yeah, put more – I will love to be holding some of the properties, improve and looking to increase the margins with the ability of money coming in to be able to spend some of that money and take advantage of making more money on the transactions.
Dave: Lipstick on a pig sort of thing, not full rehabs necessarily. One of the things that Daryl mentioned to me that was really impactful was the fact that very oftentimes, people say that I hate Realtors®. I go through this all the time. I don’t hate Realtors®. There are a few of them there interestingly different but they bring us a lot of money. And once you understand that and learn to work with them …
Daryl: Their relationships with the Realtors® are a huge horse power behind the engine.
Dave: Probably 35% or more of the deals we have wholesale are sold by Realtors® who bring a buyer.
Daryl: And all of the properties that I went and identified except for this one that we closed for probate were found through Realtors®.
Dave: OK. So the probate property, what did that thing look like?
Daryl: I have no idea. I never saw it. I never expected it. We had somebody take some pictures that happened to be in the area and never touched the property.
Dave: So when you guys come in to some sort of mentoring program elsewhere and the guy says, “You have to do an evaluation. You have to do all these calculations to figure out what it’s worth.” He doesn’t know it.
Daryl: No. If you can sell it, you can sell it. If you can’t, you walk away from it. And that was the best part of what I learned here.
Dave: And $31,000 later.
Dave: So what would you tell somebody that’s thinking about coming into program? What has been the biggest challenge for you, the biggest reward maybe?
Daryl: The biggest challenge is the time management because you have to be dedicated to it. I have a full-time job. I’m a financial planner. And the time management in order to follow up on the contract successfully, to be able to build the relationships, all of that comes back to you paid in spades but again, you have to carve out time for it because if you give up one side and then the other side gets weaker, so the time management has been a real critical component of this. But with proper time management and consistent effort, over the course of the year, we did five. I did five.
Dave: And one of the things you said to me was you’re used to taking no’s on your conversations. So this is no surprise. When you make ridiculously low offers and you get a no, it’s OK. It’s the beginning of the conversation, a shot across the bow so to speak.
Daryl: The person with the thin skin who gets easily offended, they got to push through it. They got to have a thick skin and knees to roll with it and laugh. But more importantly, in those conversations, there’s a lot of substance that you can use for other transactions.
Daryl: So even if there is a big no with a bunch of expletives after, “Why did you send me that offer?” There are things that can potentially come out of managing that conversation that I’ve been pleasantly surprised by it and other times, I’d hang up the phone and instead of getting upset, just laugh it out whatever somebody just called me.
Dave: I just had a student in Atlanta who had put out a bandit sign. I told him where to put the bandit signs and they were in abandoned properties. So he got a phone call from the owner, and the owner just kept screaming and screaming and screaming at him and he couldn’t get in any part of the conversation.
So he called me and said, “How often do you get?” And I said, “I don’t know. Not often enough. Just wait a few days. Have somebody else called him back and say, ‘I understand your property is for sale. I saw a sign in the yard.’” And the likelihood is because it’s abandoned and not kept up at all, he probably is going to sell it. So you just have to make the best out of what you get.
Daryl: Yeah. I mean if it was easy, everybody would do it. That’s part of …
Dave: We’ll make it easier for you. Don’t we?
Daryl: Absolutely. I’ve been in the real estate broker for 18 years and I’ve had a big real estate company. I no longer have that big real estate company because the market did change a while back. But I thought I knew everything. And I learned so much in one hour of listening to Dave that he opened my eyes and ripped open my ears because our opinion about Realtors® is the same.
Dave: We love you guys.
Daryl: Yeah, love you guys. But yeah, it was the fact that I had blinders in place and I have stepped over so many things over the past 18 years that the minimal investment in the course really has brought a maximum – I never imagined that I would learn that much or do that much with that course.
Dave: Yeah, and we do it. Well, Daryl, thank you.
Daryl: Thank you.
Dave: I appreciate it.
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