In this episode, David and Mike talk about their Coaching Mastermind, share some of their experience while doing a Coaching, and giving tips on how to invest in real estate with a little or no money. Check this out!
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Mike: Talking about real estate.
Mike: Dave and I were chatting, we're saying hey what can we talk about today? and we said why don't we just talk about what's going on, we're doing a lot of stuff.
David: Yeah, we are doing a lot of stuff today.
Mike: Yeah, super busy. It feels good though man. Again, I'm super super happy to be back in action after the whole Covid lockdown. We're- you know, we were really slowed down for a bit. I mean, you know nobody really wanted to say that, but I mean we were. I mean everybody was a little panicked and I know that we didn't go into full panic mode here, we were definitely trying to be more prudent or just thoughtful about everything but you have to- you have to respect your lenders that you know, some of them may slow down on their lending so our acquisitions have to slow down with the marketing, you know, I mean, it's tougher to get into people's houses when they're scared about a virus. So I mean again, I mean everybody just slowed down a little.
David: That's right.
Mike: Now the market itself, though- I mean Dave we haven't seen much slow down on our rehab side, the properties that we get listed are selling really fast. I know I'd say everyone in our network is experiencing a pretty similar thing, wouldn't you say? I mean, people are able to sell their rehab property still so, I mean, that's a good thing. It's a good sign that banks are still lending to end buyers to owners. Yeah, so again, I'm optimistic about where the real estate market is and everything that we're doing. So, let's talk a little bit about our coaching. It's something I don't think that we mention very often on the show because we do give, you know, so much information away for free and we give- on both the show, our podcast, online, on our YouTube channel, on what else? the free wholesale course, the free landlord course. So, we give a lot of our stuff away for free, but we also offer a coaching program and it's evolved over time. We really pushed hard to do like one-on-one for a while and then we did some group stuff for a while and it's really evolved into a mastermind at this point. Right? I mean that's kind of what we call it now or we refer to it as is our mastermind and Dave, why do you think that is? I mean, why do you like to think of it as a mastermind and treat it more as a mastermind than really a coaching program?
David: Well, I think there's a couple things that make me feel that way towards it. One is that-
Mike: Or do you feel that way? I'm not sure-
David: Yeah, no, no, I do, I do. I like that it's a mastermind because it's you know, everybody in the group is interacting and sharing feedback, which I think is great cuz everybody can learn from those things. If it's just student and coach all the time, a lot of times there will be things that you know get overlooked or you just can learn a lot from listening to other people run through deals or trying to analyze deals or you know, struggling with certain things and other people may have recently had those same struggles and they can talk about you know, what maybe working for them or you know, what helped them get through it and then we can put those tactics into somebody else's play. So, I just like the fact that it's- there's more people involved and in the program now, and again it's more of a mastermind than it would be just a coaching program where we have on the phone with the student, you know, once or twice a week for you know, 30 minutes to an hour and go through certain topics.
Mike: Yeah, I mean so I think my thought process on that would be it's more of a mastermind because after a few weeks, maybe six weeks maybe- sure, maybe longer, most of the people that we take on are doing deals.
Mike: At that point, it's amazing what just- and it's not even- it's a confidence thing, it just clicks from- going from I don't know what I'm doing to you know, I need to find out more information, I need more information to *snaps* I'm a real estate investor. Like, something just clicks after a certain point and then you're really talking to another peer at that point, someone else who does what you do which is go and find deals.
David: Yeah, walk properties, meet sellers, run appointments, make offers.
Mike: No- and obviously.
David: All that stuff.
Mike: Obviously in the group setting we're the moderators or you know, the ones who answer more of the questions, but we do- we get feedback from everyone, we learn from everyone. I mean what's working from you guys and what isn't? and what's working for you and what isn't?
David: Yeah, I absolutely love the fact that we're doing the mastermind now and we've pivoted a little bit away from one-on-one. You know, I just feel like there's more value that we can share with the individual when it's more than just us, it's other people that are doing the same things that we're doing and some people are struggling with those things, other people are being- are actually having more success in certain areas than we are, but it's okay, you know, it just goes to show you that they're doing what needs to be done. They're marketing and they're making offers and they're getting them locked up and-
Mike: Getting them sold.
David: Getting them sold and that's the basics of this business you know. You gotta start with your marketing, you got to make a lot of offers and from there, you'll have some inventory and then you can get out and you can sell those and you can make money and you know, I really like taking on new students and you know, sitting down with them on the, you know, the first call and going through and putting together that marketing budget, you know, or that marketing-
Mike: The plan for it.
David: Plan, yeah cuz it might not be a big budget which is okay. It certainly helps but sometimes it'll just be you know, two or three-hour periods of time that they plan on doing some cold calling or some cold texting or they want to do some direct mail or whatever it is but putting that plan together, running- you know doing some market analysis on their market, and figuring out you know what the best plan is for marketing. I had a couple people reach out to me over the weekend and they said they're looking to get started and they asked me what would be the first thing that I would do, and I said well, start doing some marketing or figure out who your buyers are going to be and figure out what they want and then do some marketing in those areas. You know, figure out- and if you don't have you know, certain software’s to do market analysis, then that's fine. You can go to REIA's and you can meet those people, but I like to make it simple. I'm kind of lazy so I like to just you know, use some of the software's that we use to do market analysis and figure out where the sweet spots are and where the cash buyers are buying and then just focus our efforts that way. Yeah, put together that plan with those people and then, you know, make sure that they're sticking to it. You know, that's a lot of it is just really the accountability and I'm not one to come down on anybody, Mike you're not either but it helps when you have somebody that you're accountable to stay focused and you know, stay on that plan.
Mike: 100 percent. Yeah no, I think, two thoughts on that when you mentioned- well, I guess it was just the way that you say something, so the benefit of having other groups or other people in the group say something. I was just thinking back to- it was like an analogy, it was like I've told my wife to do this- and this is not me but like somebody saying yeah, I told my wife to do this a hundred times, a hundred times, but she won't listen, or she doesn't listen cuz again, it depends on who it's delivered from like the message may not be received. When I say something, it may not be the way that you understand it but if Dave says the similar thing just in a slightly different way or however he presents it, it's something you understand. So again, there's a real benefit like you said to having the mastermind with the different people, cuz it is, it's everyone digests information differently so some people can listen and pick up on it very well, other people are visual, stuff like that. So, again it's very good to have you know, different people presenting material in different ways. I think it helps.
Mike: So yeah, the mastermind's very cool.
David: So, this month man we had 2 first deals and a second deal.
Mike: Before we do that, let's talk about so if somebody's interested in our group, where would they go?
David: They can book a call with us Mike. That'd be the easiest way to find that and I'm gonna give you guys a link. I got to look it up because-
Mike: Yeah, we got links to links to links. I think DPI podcast.com if you check out the toolkit up on the top menu bar is going to be probably the fastest way and it should be right there, right? So, click that and then go to work tool kit, which I think is you have to click on the second one now and then you should have 'book a call'.
David: Oh yeah, down at the bottom there. That's right.
Mike: Yeah, so DPIpodcast.com, go to the toolkit and then scroll to the bottom and it just says 'book a call' and we'll find out yeah, if that's something that might be working for you guys.
David: Yeah, we'd love to talk with you guys. We are taking on a few students here and there and I like that our group isn't like a massive group because it allows everybody to have time to talk and ask their questions. That's something that Mike and I do on purpose, you know, we don't take people on that a) don't have either a time budget or a marketing budget because this is the real estate business however, it's also the marketing business, right? Real estate's the product that we're buying and selling but really you know, if you look ten thousand foot view as wholesalers, we're in the marketing business and we don't really become investors or real estate investors until we start taking on some risk and we start buying them to fix and flip or add to our rental portfolio but as a wholesaler, we're really in the marketing business so you have to have a marketing budget and we really like people that are you know, super motivated, they're ready to take action and there's you know, just gung-ho. People that are just kind of testing the waters, you know, we tell them we strongly suggest that you don't get into this business if you don't have the time and the dedication to put towards it.
Mike: The thing is we don't wanna- we don't want someone to pay us money to help them do something that they're not going to be able to do, that they're not actually dedicated to do.
David: And that's exactly right.
Mike: So again, there's plenty of other people that will and that's fine. It's just, it's not fun for us to see people spend the money and then not do deals.
Mike: And again, I'm always happy when students get their first deal done and it's paid for our coaching program, you know, tenfold.
Mike: You know, like that's what is fun for me. I mean, that's what's neat cuz again, we win, they win big-time, you know, that's the neat part. So yeah Dave, our business though, so again a little bit about coaching, we're kind of having fun with that, playing around with the formatting. The deals that we're doing though, we have a- had a busy month despite everything that's going on, right? So, we've got- how many wholesale deals? I know we just closed a couple last week, think three or four?
David: Yeah, I think we closed 3 last week. We got another one or two this week. I think two, maybe even three and then we've had 3 deals from our students just recently.
Mike: Yeah, awesome.
David: 2 first deals and then this one that we just got done this morning.
Mike: We're buying from.
David: We're buying from one of our students cuz he found us a deal that is perfect to line up with our BRRRR strategy and we're paying him 7 grand on that one, which is awesome. I was really hoping that he was going to make 5-7 and not 2.
David: Because the offer was 42 and I didn't know where he was at. He originally was asking 48 and you know, I just- the rehab was a little higher than we had estimated, but it was totally understandable, and we walked through it and I said, I'd love to buy this deal from you cuz I'd hate for you to wholesale it with somebody else. I was very frank with him though, and I said, you know, you are probably going to get someone to pay you more than me.
Mike: Good, I'm glad.
David: However, the seller was only really wanting to let him in once or twice, wasn't willing to put a lockbox on the front door, so I just said, you know, we can make it easy for you, but I can pay you this, but somebody would probably pay a little more, not a lot more but a little more, a couple grand. 4, 5, 6 grand more than what I'm willing to pay but it's not going to be easy because you have to get them back out here in this- and I met the owner, he was an older gentleman that could barely get around, didn't have a cane or nothing but like, you know, he was older, and he only wanted to show it once or twice. Whenever we were in the front yard with our sewer scope guy cuz I coordinated him to get out there at the exact time that I looked at it, he was saying that- or I asked him you know, can we get back in cuz I wanted you to come see it and he looked at the you know, at our student and said I thought you only needed to get in once or twice? and I said it's all good man, you know, we shouldn't actually need to get back in but just in case if we do, are you able to meet back out here and he's like, well, I guess one more time maybe. So, you know at that point I was just like hey, I'd love to just make this easy for you, right? Again, if you want to do some marketing to get someone else out, you could probably make more money but there's risks there.
Mike: So two things on that, so Dave is very candid which again, I think that's one of our things that we reiterate over and over, so I was gonna be candid with people and that's awesome. Just treat our students fairly cuz we are easy, but the second thing is, oh I forgot what it was. One is candid, two is-
David: Just convenience man.
Mike: Yeah, I don't know. I lost my train of thought.
David: Hahaha, it's okay. No problem but anyway, I was really happy to hear that he had it under contract at 35 because I had mentioned in our text, when we were texting back and forth, I said, hey man, I don't know what you're at, but I'd love for you to have a good wholesale and I think 7's a great wholesale, you know.
Mike: Yeah, I think that's around the average here in St. Louis.
David: Yeah, that's about the average, right. But I was just saying, you know, if you can maybe get that seller down a couple grand, that's just extra money in your pocket, it's not going to affect my offer any and he said oh I'd rather not mess with this old guy, you know, he was nice enough to give me a good deal from going in and I'm completely happy with 7, so I said cool, that's great. Again, I was really hoping that it was going to be more than just a two or three k wholesale for him because you know, that covered the cost of you know, the program. This is his second deal and we're going to actually assign it.
Mike: Yeah man, I hope he's-
David: Which is great because then he'll keep all of it, he won't have to pay any fees, and then the closing on that one was something I was going to discuss with you, is until the end of the month, but there's really no reason that we would, we'd wait.
Mike: Yeah, no well-
David: We could scoot it up at least a week or two.
Mike: Sure, the only thing I wish we could get in again so I could get our contractors in so we can get a bid.
David: We got a ton of pictures though.
Mike: Cuz we're probably going third-party on this one. Yeah, I probably should just try to take a look at the pictures and send it over, be that way. But yeah, it is, it's nice to be able to go back and yeah. So household easy is our acquisition brand and we definitely mean that. I mean, we want to make it easy on people. The lockbox is it's so funny how some sellers are about them, just don't want people going in the property.
Mike: And it's funny cuz this one too- we don't need to talk about the address or anything, but it's- I mean, it's almost a shell of a house like you know, it needs drywall everywhere.
David: Yeah, it needs drywall everywhere on the inside.
Mike: Like, what do you care if somebody goes in there? What are they gonna do?
David: I know, I know.
Mike: But you know, whatever.
David: Yeah, I don't know and it's one of these things where he's buying this thing at like $0.35 on the dollar give or take, actually less than that. It needs a lot of work.
Mike: Well, I mean it needs 40 grand though, so not really. He's buying at 50% offer.
David: Well, it's got an ARV of 120 though.
Mike: Right, so it needs-
David: Half of 120, 60, he's paying less than that. That's what I'm saying, he's paying less than-
Mike: No but it needs- no it doesn't. No Dave, you're thinking like a seller man.
David: I'm thinking rule of thumb though Mike. Didn't we just talk about this last week? If you can buy a property at 50% of its ARV-
Mike: You can make it work.
David: You typically can make it work and this is less than that. That's my point. The rehab's high, I get it.
David: But we're less- we're closer to 35% of the total amount versus 50, cuz typically at 50, you can make it work, you know.
David: But again, I like it because he was able to make 7 but he still left enough meat on the bone for us to be able to buy it and use the BRRRR strategy, which is awesome. So, we'll get a private loan for the purchase and the rehab, we won't have any of our money in it. We'll rehab it, this one will take a little longer to rehab than our typical one, but probably not more than maybe like a month, 5, 6 weeks.
Mike: Yeah, an extra month.
David: 6 weeks, call it.
Mike: Probably call it- yeah, it's probably 2-month rehab.
David: You think 2 months? okay, call it 2 months. Yeah, that makes sense. It's a big rehab yup, you know 40-45k and then-, but we'll be able to get a loan and we'll be able to refinance our lenders out and at the end of the day we shouldn't have any of our own money in it. We'll be cash flow-
Mike: Oh, we’ll absolutely walk away with this one.
David: Yeah. We'll have all of our money back=, we'll be cash flowing. Somebody else will be paying off the mortgage and we'll have a freshly rehabbed house. So, like that's the kind of rentals I love taking on. I love taking on ones that have new floors, you know, new this, new that, new cabinets, new countertops, new plumbing fixtures because you can alleviate and prevent a lot of maintenance later with this one. Anyway, not to dive down that rabbit-hole too much but a lot of success in the coaching group lately, which is awesome, and I want to keep that going. Guys, if you want to book a call and talk to us about how we can help you, reach out, we are here to help. Go to DPIpodcast.com and at the top in the navigation bar, you'll see toolkit. Click on tool kit, and there in the bottom of that page, there's a link to where you can book a call and talk to us, you know about how we can help you get out there and maybe do some wholesale deals, buy rental properties, learn the BRRRR strategy. There's really a lot of things that we're coaching people on right now, it's not- it doesn't have to just be wholesaling but if that's what you're interested into, that's totally fine. So yeah, we're looking forward to talking with you guys. Reach out, book a call and we hope we can work with you soon. Signing off.
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