Student Case Study #3:
Marc and Julie live in a very competitive market in southern California.
Marc has been a General Contractor (GC) for 30 years and has done 100’s of flips for others and now, he and his wife Julie, want to be on the other side of this.
They wanted to make larger profits as real estate investors.
When I flew out to train them one-on-one, I asked them what obstacles they have run into.
“Finding realtors to send us properties and finding deals with enough margins!” Marc said in frustration.
“I will help with both of these during this training and we will make strong solid offers. I promise you that” I replied.
And that is exactly what we did.
I broke down each day what we would do to find the best markets and how to build their teams in ANY market with confidence.
They loved this!!
After helping them find the right markets for their needs, I showed them some great techniques that work in today’s market to find hungry, teachable, and investor friendly realtors.
This, in turn, would lead them in finding great deals.
I have heard too many “gurus” teach things that may sound great but any investor that is in the trenches will poke holes in their “proven” methods all day long.
My students want to know what works and what doesn’t, and how we can do the steps together, hand in hand to get the WIN.
Many times when I am coaching, I refer to the students and myself as “us”, and not because I am doing the deals with them and they have to split the profits with me.
I say “us” because we are a team and I treat students like they are my business partners or like family. This is a big key to my success. They trust me and I trust them.
Back to Marc and Julie. After we found 6-10 realtors in each of their three markets, we covered the scripts on what to say and what not to say. [It is important that you instill confidence in your realtors and each power team member through the way you speak to them.]
I reinforced every phone call you make, you either build credibility or lose credibility. This is a KEY principal
I showed them our system to keep track of all of their team members. There are a lot of moving pieces and they will waste a ton of time if they are not organized.
The best time to create these habits is when you start. I see too many investors waste time, which leads to a couple of negative things:
1. It doesn’t make your team feel confident in your leadership when you can’t find or miss items.
2. I have seen investors miss deals and overlook key details that cost them money because they were not organized.
When calling realtors I tell all my students that I hope we get some “tough” calls.
I hope realtors ask about exclusivity agreements, or how many deals you've done, or if you are working with other agents.
This way I can help navigate through the hard questions and they can hear what I say and how I say.
Coaching remotely, we will accomplish the same experience on calls together or using video LIVE.
Students ALWAYS love this and are elated that I was there demonstrate how to avoid the pitfalls that they would have fallen into.
I always start by calling the first realtor. I have my student pick which one they want me to call and we work our way down the list calling as many as we can.
Back to our story: we call a new realtor that none of us had spoken with- one we found on day one online using the techniques that I had taught.
They picked a realtor in an out-of-state market.
The room was quiet except for the cell phone ringing on the speaker phone. You can hear them swallow as their mouths were dry and their heart rate picked up. The realtor answered….and I spoke:
“Hello Suzie, my name is Jeremy and I am looking to buy a house. I was wondering if you could help me?”
“Absolutely!” Suzie replied enthusiastically.
“Where are you looking to buy?” She inquired.
“By the way, I have you on speaker phone with my two partners, Mark and Julie.” I paused so they can all say hi to each other. “We are real estate investors and we are looking for properties that we can buy, fix, and resale.” I informed her.
“You asked which area we are looking to buy. As long as it is not a high crime area, we are not as concerned about the area as long as it has a good spread AND good comps to support it.”
“Great! I can definitely help you with this.” Suzie responded.
I continued to provide the realtor the criteria we would need, fielded her questions, then requested her email address so we could email her our criteria.
I asked her “When should we expect the properties?”
“I can have 2-3 for you by this evening” she responded with hope.
“Perfect. We look forward to receiving those properties and if you could please send remodeled comps with them? We will not know if they have a good spread unless we have great comps. And as you know, we will need to act fast in this competitive market.”
“Absolutely, I will be glad to” she said with a smile in her voice.
Mark and Julie were on their way. We had those properties and many more coming to their email inbox on day one.
Day two and day three we made offers and called general contractors and hard money lenders together.
One of the offers that we made together during their one-on-one training was accepted, closed, and is in the middle of rehab right now!!
They closed on their first deal with none of their own money.
I helped them line up a hard money lender and cash partner to fund the deal and reimburse them their earnest money deposit.
They are off and running full speed ahead.
Since Mark had 30 years experience being a general contractor, I did not spend as much time with the construction part of the training. This allowed us to spend more time on the other areas they needed more help with.
That is why it is great to do one-on-one. We will customize it to fit your strengths and weaknesses.
Initially, they were both nervous, skeptical, and afraid.
NOW, they are trained, prepared, ready, overcoming fears, and Taking Action.