Real Estate Podcast

Episode 160: $12,000 Wholesale Case Study Episode

brrrr method david dodge discount property investor michael slane podcast real estate 101 real estate coaching real estate investing real estate investor real estate tips wholesaling wholesaling real estate Sep 22, 2022

Show Notes

In this episode is going to be an awesome episode, it is going to be a case study on a property that they just purchased recently. David and Mike shares with you some of their wholesale deals. They Closed a Deal worth $12,000. Know how they got this lead! Check this out!

Things that cover in this episode:

  • Shares the Deal they closed recently
  • What Discount Property Investors do?
  • How they got this lead
  • Talks about the BatchLeads Staker software
  • List Stacking in

Services mentioned in this episode:

Episode Transcripts

Mike: Hey, you want me to try and pull it up real quick, you said?

David: Welcome back to the Discount Property Investor podcast. I am your host, David Dodge, joined by my co-host Mike Slane today. Mike, what's up dude? What is--

Mike: What's up Dave?! How are you, man? I'm--

David: I'm good buddy.

Mike: - living the dream. Living the dream here.

David: Living the dream. So our acquisition manager just texted us last night and said that, he just wholesaled a deal up in North City. It's not a huge deal, I think it's about a 12K profit. But the funny thing is, is I, he sent me up there to go do a walkthrough of the property and I didn't even get out of my car. It was in--  a really bad part of town that I don't buy houses in normally. And we, it was a, it was a big house - I mean this thing was like 3 storeys, all brick-- let me pull it up here so I can give you guys the real deal, holy feel around this one.

Mike: Let's go ahead and let's take a step back to you for a second Dave, while you doing that. So, let's talk first, what do we do here? We're Discount Property Investors, we wholesale residential real-estate, that's our-- our first passion I guess you'd say when it comes to real-estate investing. It's how Dave and I met. How we connected as partners, and why, you know, part of the big reason why we're still together, is because we like wholesaling properties. It' fun, it's easy to do and it's profitable. So we built the rest of our business around--.

David: Hey Mike, do you have a-- you needed to click the "Noise Reduction" thing on the E-cam. I'm picking up two mics from you right now.

Mike: Well, I'm only using Zoom, buddy.

David: Oh, you are?

Mike: Yeah.

David: Okay, well--.

Mike: What you're picking up, can you hear a whirl in the background? Or?

David: Maybe, yeah.

Mike: – something like that? So my computer, so I'm using the Mac Book. When I'm at home, it works really hard when I use all the peripherals. So like, I plug in the good mic, or an extra camera and you can hear it just buzzing in the background. So what I will try to do--.

David: Oh it's not that big of a deal. No worries, man. So, hey this house was 3,800sq ft. It's huge. It's a big ass house and I didn't get outta the car because it's not the best part of town, I didn't have any, you know, sort of weapon with me, nor do I wanna ever have to put myself in that situation. I got outta my car and walked - Actually I did get out of my car and I walked, basically around the back yard just to get some outside pics, but I did not go inside the house. And the reason that I even did go there, Mike, is because in order for us to do the wholesale, we had to fund it, we had to buy it. Now luckily, this house was only like $5,600 or something like that. You know, so a little over five grand, but we were very confident that, you know with the property in the condition that it was, that it was, it had a value closer to, you know, 15 to 20 thousand. And the plan was really to just buy it and list it. I guess you could say this was more of a wholetail, really, I mean we didn't touch anything. We didn't even go in it, right? And it hasn't closed yet, so I don't wanna speak too soon but I can tell you the projections of what we just did and we've done this about 50 times, probably in the last, you know, three years, with this exact same type of deal. So again, we found a motivated seller. They we're probably asking 15 or 20 grand. I don't know if you have it pulled up or not, Mike? We basically got it, we basically got it locked up at 5,600 and we closed, we did pay that much money to the title company, plus the closing cost. So we took ownership and all we did was just pay 250 bucks to get some insurance on it, in case it burned down, because the cost of that thing burning down and having to go in and haul it all out and then fill in the ditch would be more than what we paid. So, it's just worth it getting insurance on it, right guys? Even if you're only gonna own it for a week or two. And that's factored into the 5,600 I believe and then we listed it. It's been listed for four or five days. Yesterday evening, last night, Travis said that he has a £12,500 spread on a buyer that just sent over an offer, so we signed that. So it hasn't closed quite yet, but it makes for a really great deal. Very little work. Travis closed em over the phone. I went there, only because we were gonna invest £5,000 plus so you know I like to look at where my money's going to if I can, but again, I wasn't even worried enough to get outta the car. I did get outta the car but like, to go in the property, right? I didn't care, I just wanted to make sure that there was a house there that, you know, was in the photo that we were looking at. And it was this real. So, that should close in like a week or two. It makes for a great little case study, ya know? It was a lead that we got from 'Driving for Dollars', so we used the Deal Machine app to Drive for Dollars for the lead and then we exported that information over into Batch Leads, and we skiptraced it and we texted the seller. That's exactly how we found this, this lead. Driving for Dollars, mixed with skiptracing and texting. So Driving for Dollars - 'Deal Machine' is what we used for that, and the, and the skiptracing and texting we used 'Batch Leads' and it's the best way to go about finding leads right now. Everyone is on their phones due to Covid - I mean it's been really successful for us, for the last probably 8 - 12 months. But right now, especially, we are having tremendous amounts of success skiptracing and cold-texting, Mike, it's awesome.

Mike: Yeah, I think, I think a lot of that has to do with like you said, the Covid thing yeah. It's happening, it's out there, but it's because more people are, they have their phones on them. They're paying more attention. They're thinking about their money. They're thinking about "hey, this property that's sitting there, this guy is selling it for four or five grand to us". He's thinking "Man, I should cash out of this thing." And that's exactly it, so being able to text people when they're, they're wanting money, being able to liquidate, or cash them out of a property, you know, put some - give them some liquidity, is a huge value. So, yeah wholesaling still happening. We're still very big on it and again we're kinda pushing a little bit harder on it now actually. And one of the things we're doing, like Dave said, is we're texting people and texting people big time, using - what's it? Batch leads?

David: Yeah. Batch Leads

Mike: It's awesome.

David: It's Batch Leads Stacker is the name of the company, but the website is I just did a podcast yesterday Mike, with Jesse. He is one of the owners and founder of-- I think, I think THE, I shouldn't say 'one of' - THE. And he is really trying to grow the platform right now. They're having tremendous success. He gave us a special offer to offer the listeners and the viewers, so I don't wanna turn this into a pitch by any means, however this is an amazing offer, so I, I would be stupid to not tell you guys. And you guys would be stupid to not at least not look, like look it up and check it out-- and basically he's offering for just $1, you can try the service for 14 days and he's gonna give you 500 text messages!

Mike: Nice!

David: -- for that $1. So you basically get, you know, a trial for a dollar for two weeks and then he's gonna throw 15-- I'm sorry - 500 free text messages into the platform, so if you wanna go in and you wanna test out some skiptracing, or if you already have some phone numbers, you can go in there and you can text from the platform, you know, for, for basically a one-dollar trial. Check that out guys. He just gave me access to this like, 10 - 12 hours ago, last night. Yeah and it’s a dollar right. So D-A-V-E. So Check it out, one dollar. Even if you guys aren't interested in doing this type of marketing long term, check it out, because it's so much more efficient to use technology to get your message in front of motivated sellers, than it is to trade your time and or send mail, right? Technology just makes it so much simpler. You can reach like 15x as many people for the same amount of dollars spent doing text messaging. These guys were telling me last night-- now this isn't launched yet, the, these new features-- but Mike, they were telling me they're gonna be adding a dialing system and an RVM system built in.

Mike: Nice! Get a little spin--.

David: So already its cool, because they skiptrace-- oh yeah man, it's great. Already it's cool, because they skiptrace and they do the texting. But then they're gonna add in the RVM system, they're gonna add in a cold-calling dialer, then eventually said they're gonna get to listen in the next couple of months. But here's one thing that is super cool that we haven't really utilized a whole lot in the past, Mike either, over at Batch Leads-- they, they do "list stacking" and you know, I've never really thought that list stacking was that cool. Until recently, you know, I've been talking to a lot of investors and some of their biggest deals are deals that are highly targeted. So how do you do that? And what is "list stacking"? Well, let's talk about this for a second. So, you know, if you go out and pull a list of, you know, vacant houses right and let’s say you get 2000 people on that list-- and a week or two later you're like "okay cool, now I wanna do a marketing campaign to people that have had a-- you know-- have gone through a divorce in the last 24-36 months" --and then you get another list and that list has, you know, 2000 people in it, let's say. And then finally, month later you go in a certain neighborhood, you're like "I really like this part of town, this zip code. I wanna find all the high equity people in this zip-code -", you know, in-- let's say that they have to have equity of, you know, 35 or 40% or greater right in that--. So now you have three lists, bought at three different times. Now when you import these lists into Batch Lead Stacker - - they will show you if they are on other lists and you can sort by the contacts that are on the most lists, or see which lists they're on. So, what the really means though is that if you have somebody that has a vacant property, it's absentee owned and it's got high equity, right, you are simplifying your search to find motivated sellers. So imagine if you only marketed-- and I'm not saying to only market, but-- imagine if you did, or another way to look at it would be, what if you started marketing more heavily to these people that are on two, three, four lists? Maybe they have tax delinquencies? They're out of state owner - and it's vacant, with high equity? Like, you know, what are THEY waiting for? What are YOU waiting for? So the list stacking Mike, is actually one of the coolest features that I like about it--.

Mike: What's funny--.

David: – and-- go ahead.

Mike: - Dave, this is, this is something I wanted or like, tried to do on my own, five years ago, six years ago or whenever I was starting. And it is so hard to take to multiple lists and--

David: Oh, give it a rest!

Mike: - and make it---

David: Bro, it's impossible!--

Mike: - and run the data against it--

David: – unless you go to school for that

Mike: Yeah, it's--

David: Yeah, I mean, I've always wanted to do this--

Mike: – It's so hard to do--

David: – so, the cool thing is they're-- and then-- dude, they just made it so easy. The templates are like, whenever you go to add data, there's no template. I can't stand it whenever I have to download a list and then go clean it up--.

Mike: Mmmhmm!

David: – and then go copy and paste it and screw it up and do the whole concat feature to get the address in one line. None of that. None of that. You - any list you buy from anywhere you upload it and you just pick the columns that line up and it imports the way that it imports. Mike, this is crazy too. This kinda does sound like we're selling it because we like it so might, right? But that's not the case. This is-- I'm just having a conversation with you. Check this out. So I've only been using them for maybe two months at this point, maybe a little longer, but not-- not long-- the point is, not long and I've done skiptracing in there maybe six or eight times at this point. And the first couple I did were like three or four thousand contacts, right? I did a skiptrace the other day with like five or six hundred contacts in it, so it's a smaller list--

Mike: Right?

David: - And it's so it doesn't skiptrace the same contact again, if you've already done it in the past. So it saves you money on the matches and I saved more money on the match of my last single skiptrace batch, than the monthly cost of the service. I'm--

Mike: Yeah, that's crazy

David: – dude, I'm two months in to using it. So imagine after you've used this for two or three years, when we go to skiptrace a crazy big list, it may filter out 80%, saving us thousands of dollars, because we've already contacted those individuals or have them in a follow up system already-- it's only the new ones. So it's amazing. I love it.

Mike: Yeah, not-- starting, starting wholesaling now or even wholesaling now, I mean we're benefiting from this, all this technology as well. It’s just so much different, it's so much easier to get big data, manipulate the big data, to your advantage. So, yeah, something like this is kind of a game changer and definitely again for a-- for a trial, for a dollar, go in there and play with a texting software that is compliant, again you have to have, you know compliance issues, you wanna follow up with all that stuff and play by the rules. I mean, it is, for a for a dollar to try out, it's definitely worth checking out so--.

David: Oh yeah, man!

Mike: Yeah.

David: It's awesome. I had some people online last night that were-- that were in a group, a Facebook group, a real estate group and they were talking about, you know, the services that you don't have monthly fees on. Like, you don't have a membership to and there's pros and cons, right? Like those typically, you're gonna be paying three or four times more, per message versus buying a membership, or bulk and getting your messages cheaper, but then having a fee. And it really just depends on, you know, what service, or what level you're gonna wanna do it. But that's the beautiful thing about technology, is it’s so cheap, you know. Like, imagine trying to send a letter to 10,000 people, right? I mean, how much is that gonna cost you? You're looking at 54 cents, give or take right?

Mike: Mmmhmm

David: Something along that lines here. Looking at, you know, 10,000 people, you're looking at, you know, four to five grand and you could essentially, you know, send 10,000 people a text message after you skip trace them, for, you know, I'd say, let's see what that equals--.

Mike: [00:15:04.11 - inaudible]

David: --1,500 bucks. So a third, yeah I mean it's just-- it's just the way to go. Very cool. So yeah that - we'll keep you guys updated on the-- on the deal that we just got sold the B to C - signed with the £12,500 spread.

Mike: That pays for this service for us for the next 15 years, essentially. So were--.

David: That is very true. 15 years of-- yeah very cool.

Mike: Making notes.

David: Guys, go check it out! 500 text messages for one dollar. It's a 14-day trial. Mike, I'm gonna go jump in and start doing some cold-texting, because I wanna go do some more of these deals and make 12 grand.

Mike: Let's see if you will.

David: This is so incredibly easy. Guys, wholesaling is nothing more than being a expert at marketing, so find the ways to market that work the best for you, that are the most convenient and of course the most cost effective. Anything you wanna sign off with Mike?

Mike: Nope. Thanks for listening guys. Talk to you next time.

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