Like a Boss! This episode is a little different as the hosts share a bit more about how the Discount Property Investor Empire is being Built. Each of us has been investing successfully for a time on our own and we came together with the idea to make something much bigger together. Today Mike and Dave talk about how the business is structured and how it is evolving and continues to grow and evolve.
David: Alright guys welcome back to the Discount Property Investor podcast. We are happy to be with you here today. My name is David Dodge I am one of your hosts, also sitting with Mr. Mike Slane.
Mike: Hey guys, welcome to the show.
David: Co-host. Mike, how are you doing today buddy?
Mike: Doing pretty good. You know… I am really excited to be talking about what we are talking about today. We are talking about…
David: I am just really excited to talk.
Mike: That is a true story isn’t it?
David: It is.
Mike: I guess at home you are not allowed to? I don’t know. Get shut down by the wife or whatever it is?
David: That’s right. What are we talking about today, man?
Mike: We are going to talk about business structure.
David: Business structure.
Mike: This is something… honestly I still feel we are in the thick of as company which is why I am excited to talk about it. So anyways, thank you guys for joining us. Let’s do a little bit of the housekeeping first; if it’s your first time joining us I would encourage you guys to go check out the first ten episodes. There you are going to learn the most about how to get started in wholesaling. It is really the outline to get started. We put together a whole free course on it at freewholesalecourse.com. Like we said, you can get all the documents and everything you are going to need to get started in wholesaling.
David: It’s a full blown course guys, it’s awesome.
Mike: So go check that out for free. Yeah let’s dive into the topic today. So we titled the episode ‘Like a boss’.
David: Like a boss!
Mike: Because we are talking about business structure. Dave and I… some days I feel like a boss, some days I feel like I am lost.
David: I feel like I am lost all the time, but I try to be a boss.
Mike: Yeah. So let’s talk about your business, then we will talk about when you are getting started in real estate, when do you go full time? From my personal experience; I probably would not follow what I did, because I literally just quit my job and said screw it, I have money, I am done, I am just going to learn how to wholesale real estate.
David: You had saved up a little bit of money to cover your bills for a few months.
Mike: Honestly I would not recommend that.
David: Okay, why not?
Mike: What I would recommend…
David: Why not, Mike? I just want to ask.
Mike: Okay, so… the main reason is that I believe losing that W2 income prior to… buying the 10 or 15 rentals slowed me down I would say several years. If I would have kept the job and… learned to wholesale on the weekends and then applied for loans, and used that to leverage out the money…
David: W2 income helps tremendously.
Mike: Exactly, I would be several years ahead in my investing career.
Mike: Again, it is not a huge deal but I think it is very important because you are not bankable. Until you prove that your company is making money… banks don’t want to loan to you. So…
David: They are not interested in loaning.
Mike: Exactly, they are not interested in loaning. So I would recommend keeping it until you can show that your side hustle is profitable and maybe making at least as much as your day job… for at least two years tax returns. Then I would make the jump to full time because you are still probably bankable at that point. So that would be my recommendation for most guys. So Dave, what do you think?
David: You brought up a really good point that I don’t even think that I had considered at least recently. So that’s a great point. However, Jimmy in one of our recent episodes; he talks about your strike price. I don’t even know if I like that terminology. Essentially I like to call it your freedom number. It is the same thing, strike price/freedom number. But essentially what that means is… how much money do you need to live off of? We are not talking about taking vacations and living above your means, but what are your means? Your mortgage, your car payment, your insurance, food, small entertainment budget, so and so forth. How much do you need to live? Is that number two grand? Is it 3500, is it five grand? What’s your number? Once you can get to a point… not even wholesaling, but any business that is generating that amount of money… that to me is when you should go full time. Essentially you have created… financial freedom in terms of passive income or generating income via business.
Mike: I shared that thought when I quit my job because that’s what I did. I basically paid off a lot of my debt, and had a little bit of income coming in and I was a bachelor… so my freedom number was low. $1000 a month I could live off of it. It is literally… a couple of rental properties, it’s no big deal.
David: You bring up a really good point though Mike…
Mike: Like I said, had I… had to do it over again I would have kept the job… muttered through it and did do it part time. Maybe it would have taken me a full year before I learned to wholesale more successfully.
Mike: But again, it is that hindsight 20:20. So my recommendation is… maybe hang on to that day job or cut it back to part time, because that W2 income is an asset that you may not realize.
David: The only downside though to not jumping in full time… is it is going to take you a lot longer to become a pro and become and expert at it. It can be discouraging. So there is definitely that fine line where you need to balance… I always say consistent persistent action. If you have consistent persistent action… anything that you do you are going to be successful, you just can’t give up on it. By jumping in full time… I did the same thing, Mike. We both jumped in. It took us several months to do our first deal, both of us. We were alone; we didn’t know what to do…
Mike: How long did it take you?
David: At least three months.
Mike: Bringing the average down, I am bringing it up, it’s all good.
David: Maybe three and a half but I hired a coach. Within hiring that coach within… two or two and a half weeks of hiring that coach I did a deal and I did another deal the next week, another deal the next week, did a deal every week since then. So hiring a coach is super important.
Mike: Let’s get back on topic… I am really excited to talk about business structure and how we have our company set up and would love to share some of that. Some different topics..
David: Going full time we covered that… taxes are a big part of business structure. If you are not aware of this I would like to make you aware of this. The single largest expense in your life is taxes like it or not, and that is for every single human on the planet.
Mike: That’s not true, mine is my wife.
David: That’s funny.
Mike: Just kidding.
David: But honestly though, taxes are the biggest expense that you will pay and you may or may not know that. But look at your paychecks; if you are a W2 employee, look at how much money is taken out of your check every month without your control.
Mike: Yeah, then you get a refund at the end of the year which is some of that money back.
David: Not even a portion.
Mike: It has been a long time since I looked at it because it just drives me crazy but… your actual tax rate is like 50%. When you look at your sales tax on any…
David: All of the taxes, not just the taxes that come out of your paycheck; there are a ton of taxes… you have…
Mike: So there is income tax, then there is sales tax, personal property tax, real estate tax.
David: Inflation which is hidden tax.
Mike: Hidden taxes, yeah. Reading ‘The creature from Jekyll Island’ I am assume?
David: I sure am. Essentially your effective tax rate… when you consider all things considered, it is almost half if not half.
Mike: Is that what it is?
David: Yeah. I mean think about it; you go the store and buy a coffee… coffee is a dollar, you don’t pay a dollar, you pay a dollar seven. You pay seven cents on top of that dollar to buy that coffee. That’s seven cents you don’t get back and… not only did you pay a dollar seven, but you had to earn a dollar fifty to get the dollar. It’s crazy.
Mike: So think about the coffee person as well, that business had to pay taxes on all their stuff. So they have to mark that into their… costs as well. It is crazy. I was talking about alcohol and tobacco, they just sneak them in.
David: Fuel tax.
Mike: Yeah, just sneak it in there.
David: There are taxes on everything, it’s crazy.
Mike: We love taxes.
David: But one of the advantages of real estate is and or are taxes.
David: Did I say that right? Did I confuse you? I was trying to confuse you.
Mike: Close enough we will just move on. So that is the other advantage to owning a business to is that there are ways to…
David: That’s true, business ownership and real estate; two great tax shelters, tax avoidance… tax benefits.
Mike: There are ways to minimize your taxes. So we are not experts on that and every State is different… so don’t necessarily want to get to in-depth on that other than consult with a CPA…
David: Just be aware that taxes are your biggest expense. If you are not aware of it; now you are. It is crazy, but as Mike said… we are not tax or financial planners or advisers. Consult with your CPA but… one of the best business advantages, or one of the best advantages of being a business owner… especially one that deals with real estate is that you can cut your effective tax rate in half if not down into a third or even a quarter… of what you would typically pay with your 9-5 job.
Mike: It is super important… so that said… lost my train of thought. Taxes, you don’t want to pay them. Well you want to pay them within the confines of the law.
David: Yeah but you want to avoid…
Mike: You want to pay as little as possible.
David: So here is a quick quote, I know we are expanding on this… the tax law is literally tens of thousands of pages. It is actually pretty crazy how much law there are in regards to taxes. But here is the point of this though, only between 1 and 2% of all the tax law tells you when and how much and where you have to pay your taxes to. The other 98-99% are ways to avoid taxes. Did you know that, Mike?
Mike: I did.
David: It is pretty amazing. So by having a good CPA… and again, we are not telling people to break the law and not pay your taxes, that is not the point here. But the point is if you know what you are doing with business and with taxes, especially with real estate; there are legal ways to avoid paying taxes, reduce your tax liability and essentially… if you have real estate and you pass away and you leave that to heirs… they don’t have to pay any taxes on it. So there are ways to essentially legally avoid taxes completely.
Mike: So it resets the basis… it is essentially not paying taxes.
David: You are avoiding it, yeah.
Mike: It is a great strategy to…
David: Moving on…
Mike: Let’s talk about structuring a business though…
Mike: So again, taxes are a huge part of it because it makes something that is not necessarily profitable profitable, because…
David: Vise versa.
Mike: Right, exactly so get a CPA to help you set it up and continue educating yourself on it as well. Be aware of all the benefits that are out there for someone who is investing in real estate. So that is another reason we love…
David: You are going to spend money on your CPA… spoiler alert! You are going to spend money on your CPA. I think last year I paid my CPA between 4 and 5 grand. You know what though? She probably saved me 20 grand if not 30 grand.
Mike: Yeah so let’s talk a little bit about…
David: You are going to spend a little bit of money on these people, but at the end of the day you are getting that back five times. So don’t be afraid to sit down with a CPA… especially if you are a business owner or a real estate owner… one more thing about this; if you are a real estate investor… find a CPA who is a real estate investor. Again, there is 10 thousand pages of tax code. If they are a real estate investor you can be pretty damn sure that they are really going to study those particular pages, and find all the loop holes that they can to avoid those taxes.
Mike: Let’s talk a little bit about or business then. So our business, how we are structured… and we don’t want to give too much information away…
David: Our IEN number is…
Mike: So basically we are an LC and we have elected to be taxed as an excorp. Again through the guidance of our CPA, we encourage you to do the same.
David: But there are different types of corps.
Mike: I am not familiar with all of them and I don’t know which one is right. What I wanted to talk about with ours though… as Dave said; he paid his tax person… we actually have an in-house bookkeeper, part time. But we have got someone who does all that stuff for us. Quite frankly we don’t want to be dealing with entering stuff into quick books or learning quick books for that matter. I don’t want to do that so we have a book keeper. Let’s talk a little bit about the rest of our team, how we have built it and how we structured it. Dave and I and the other two partners, so there are four partners in our operation, you met them in episode one. We came together and said we are all pretty much equals we are going to do some wholesaling and that is really how it started. What we have added to that dynamic since then is… first we added one virtual assistant. So somebody out in the Philippines answers all our phone calls for us, our incoming phone calls for us and books appointments for us. Our next… I guest hire you could say was somebody here locally; an office assistant and our closing coordinator, that was our next step.
David: Essentially she was just an office assistant to start and she morphed into being… I shouldn’t say assistant, office manager. Then she morphed into being our closing coordinator and she has been doing a fabulous job with it.
Mike: It was a full time job.
David: It was.
Mike: We were not treating it like it. We needed someone… what do we have closing today? How much do we need? All that stuff.
David: And just talking with the buyers and the sellers. Mike, myself and our other partners; we are busy working on the business… as well as in the business. We are running appointments, it’s hard for us to run those appointments as well as follow up with the seller or the buyer on a deal, make sure they are going to be at the closing table.
Mike: How does that look for us?
David: A full time job to co-ordinate closings.
Mike: How that looks for us then… once we… have the contract in place with the seller, we basically hand it off to the closing coordinator who then calls them, introduces herself and says… hey I am taking over from here, I can be your liaison between the title company till we get it closed.
David: She also helps marketing to sell the deal to buyers to. She actually wears quite a few hats, but she is doing a really good job with it, very impressed with her.
Mike: Then our next kind of addition to the team… this was congruent as well… we have got what we call junior buyers or JV buyers. So we have a lot of leads coming in, we work as many appointments as we can, but we also send out other people, we send them leads and tell them if they get it under contract we will partner with you…
David: Back to the JV. We are often busy running appointments and sometimes we have more leads that come in than we can handle. So yeah, like Mike said, we have people in the field that will essentially go out and meet those people for us, determine the ARV, the will help negotiate those deals…
Mike: They do a lot of it.
David: They do all of it. Essentially they will bring us a contract. Then from there we will start marketing that property. If we are able to wholesale it or if we buy it… either way we pay them a commission… that’s the wrong word because…
Mike: We have a joint venture.
David: We have a joint venture agreement, and we will essentially pay them a marketing fee, or a finders fee. They invoice us and we pay them. So it is a win:win.
Mike: So again, that team… it is constantly being built because people come in… it is like a sales job, that is what wholesaling essentially is, it’s a sales job; you eat what you kill. So a lot of people come and go, we help train people… they are our partners essentially. Next step I guess we added a second V.A.
David: We added a third V.A recently, but the next step was we added a second V.A. Our first virtual assistant, he is a rock star, we love him… he has been with us I guess for two years now, or with me for two years. With the company for a year and a half or so. He is a rock star, he essentially handles all of the inbound seller, motivated seller calls and leads. We have actually taken it one step further in all of our direct mail… it doesn’t say ‘Call Dave’, or ‘Call Mike’, it says ‘Call Dennis’. Dennis is our point of contact… this number right here rings Dennis’s phone.
Mike: Please don’t call him.
David: Yeah if you are looking on YouTube, you are not going to be able to see this on audio, but… yeah that is our main…
Mike: He’s busy man, he’s a hustler.
David: He’s a hustler. But essentially Mike and I don’t answer the phones at this point because we have built a business, so… if you are new to the business answer the phone. We have said this before many times…
Mike: That can be a different capacity; so answer the phone to us means we have… an answering service 24 hours a day though…
David: Someone is answering the phone.
Mike: The phone’s get answered, it is very important.
David: But he takes all of the inbound calls, then in his free time he is essentially following up… because again… I have said this before and I am going to say it again; the money is in the follow up. So when the motivated seller calls in and says hey I got this property… it is worth 60 and I owe 58 on it… well that’s not a deal guys, you don’t have to be a rocket scientist to know that is not a deal. But… maybe that seller is willing to come to the table with some cash just to get rid of it. They are not willing to do it today but in 9 months from now… or 9 weeks from now they are. So you have to continue to follow up. So he is essentially dealing with the sellers and the follow ups.
Mike: Right, our second V.A… we hired with the intent to help with a lot of the office stuff. We eventually split him off and he now answers our buyers calls.
David: He is in charge of marketing the deals amongst our closing coordinator; they both kind of work that together. But he posts those properties to Craigslist every single day because I get the e-mails every day. He does a great job, he is becoming a rock star himself. He posts these properties to Facebook for us, he posts them to local websites, there are a couple of local websites in St Louis that investors will allow you to post properties to…
Mike: He actually edits our podcasts for us.
David: He edits the podcast for us to.
Mike: Thank you Daniel.
David: Thank you Daniel, Daniel is killing it. But also the most important thing he does is… we have two different phone numbers, we have a phone number for the motivated sellers, then we have number we use to market the properties to our cash buyers or our buyers. When those buyers are interested in a new property that we have; they call a different number that he answers… essentially he goes into our system, looks up the property, tells… hey Mr. and Mrs. Cash buyer… this property is still available… we are asking this price for it, however it is always negotiable, make us an offer. Would you like to see the property? Great, we have a lock box on it. All I need from you is your name, number and e-mail address… or whatever information he can capture from them. He gives them the lockbox…
Mike: If they are not in our system already. If they are then…
David: Most of them will be.
Mike: … into our system, who is interested in a property.
David: One thing I do want to mention is by logging in… everybody that either calls in our e-mails about a property is super important. If you do a price drop… let’s say you have a property, doesn’t even mater what you paid for it or what you are asking for… but let’s say you have a $12,000 mark up on it and… you are marketing it for a week or two and you just don’t have any offers and very little interest, let’s say a couple of people called… but you are just really motivated to sell it, you drop the price to where your spread goes from 12 to 6. So you essentially you are saying… $6,000 price drop. Well instead of having to re-do all those efforts of marketing that property… you can have… in our case Daniel our virtual assistant just call the people that were already interested in the property and just say, hey… what do you think? Well guess what? We are really motivated to sell, we just lowered the price by $6,000. I don’t know, 40-50% of the time when he does that he gets a contract on the property.
Mike: And we are happy to share these ideas. I feel like… you mentioned on one of the previous episodes, lets’ co-wholesale… go do that in your market absolutely. It is one of the things I feel like we come up with a lot of ideas in our market and I see a lot of people follow us. Which I think is a great thing to be one of the industry leaders here. Like watermarking pictures, I was doing that for anybody. That lets co-wholesale thing… we did that and we have got a lot of people that are mimicking that. Same thing, I have never heard anyone mention this is that you need to log every buyer… for that reason. You have to log it, just in addition to know who is going in and out of your properties if something were to happen.
David: That’s another great point to. If someone vandalizes the property and you have only had four people who you have given the lockbox code or one… it is going to be very simple to determine who did it. They could have obviously given that code to somebody else… but if you have only given that person that code, one person or two people; it is going to be very easy for you to determine who is responsible. Great point.
Mike: So let’s… back to our team. So we have got two V.S’s at this point… the next person we hired was another local person, so we hired another person here locally to help with one of our partners… one of his side projects; he really needed…
David: And she has pivoted… he brought her on essentially to be an assistant as well as she was doing some joint ventures… she was kind of bird dogging in a way. Finding deals, we were giving her leads that she was working.
Mike: We have got an awesome team.
David: We do.
Mike: Everyone on our team is a hustler and she’s one of them.
David: Now she is a salaried employee and she is helping out with closing co-ordinations, she is helping out with our funding business… we do a little bit of lending to cash buyers essentially, and or students. But yeah she is doing really, really well.
Mike: Recently we added another V.A.
David: Yeah we have a third V.A now.
Mike: Let’s keep the pace moving though, so that is kind of our team, the way our team is set up, it has kind of grown and evolved. We have got a lot of people… it feels like a lot of people. We have got a lot of JV partners that definitely…
David: So Mike back to business structure though… on your list here, you have to be an agent or not to be an agent.
Mike: Right so quick conversation about that.
David: Let’s talk about that real quick.
Mike: So you a wholesale real estate investor, you are building your business up…. that is really the question is… do you want to be an agent or not?
David: I am not an agent, Mike is. So there are obviously advantages to being an agent and not being an agent.
Mike: So here’s where I came from. So solopreneur perspective… you have got to be able to pull comps. An active jobiest. So that is… jobby is one of my jokes about being a real estate investor. So solopreneur though… I needed to pull comps and one of the ways… the only way you can pull comps is… the best way is to pull them from the MLS. So without being an agent you can’t do that unless you want to call an agent every time and ask them to pull the comps for a property. It becomes a bit of a headache, so I became an agent… solely for the purpose of being able to pull comps. As a wholesaler that was almost 100% intention behind becoming an agent. So I did… again it made sense for me.
David: Really I recommend… anybody that is going… wanting to be serious in this business… to become an agent, because not only are you going to get access to the MLS but you are going to learn a lot about the technicalities and the specifics of real estate. Me personally; I have studied for the real estate agent test… three different times…
David: No… I went and took the test twice. I just never followed up to actually become an agent, i have no idea why.
Mike: That’s funny.
David: Call me lazy… but one of the things you can do is… if you are like me and is not an agent; you can find an agent like Mike here… and you can actually become and assistant to that agent. For a small fee… every MLS is going to be a little different, but maybe 150 bucks a year… to become an assistant and essentially you get your own MLS…
Mike: So if you have got a friend who is an agent, you can ask them if you can be their assistant… so they can gain access to the MLS and obviously…
David: It’s a lot cheaper though. What does it cost to be an agent? 1500 a year maybe?
Mike: About that.
David: Isn’t terrible, but over ten years that’s 15,000.
Mike: Again, I am going to drop my license relatively soon… at this point we have a brokerage, we have got agents in house, I will just be an assistant or not. I almost don’t even need it at this point. And… coming soon you are not going to need it either. We are developing a product that is going to launch… maybe when this is aired. Let’s drop the bomb. Easy ARV. So we are developing a product that is going to allow you to pull comps from the MLS. It is going to be awesome, it is going to give you data just like you need as an investor. I am super excited about that.
David: It’s really awesome. We have a product already up in the St Louis market right now, and essentially it scrapes the MLS and allows non-agents the ability to… pull comps as if you were an agent.
Mike: Absolutely awesome. You guys are going to love it once we get it launched.
David: Working on it hard though.
Mike: Hopefully when it publishes… anyway…
David: … something you guys need to determine on your end. Obviously there are pros and cons. One thing I do want to mention before we move on from this topic is… if you are an agent acting as an investor… just don’t forget that you need to disclose…
Mike: This is very important.
David: Let’s say that… this doesn’t effect me, but I just know this is a big rule; so let’s say that you are an agent, but you… you are wearing the investor hat that day. You are going out and looking at a property. Whenever you give that seller a contract… you need to make sure you disclose to them that you are agent, however you are not there to represent them, you are acting as a buyer and they are acting as a seller. Essentially it is just one sentence that you need to add into your sales contract that says I am an agent, however…
Mike: It is for this reason, as an agent you are held to a higher responsibility for [00:30:08.01 – inaudible] duty to your clients. So the thing is, if someone says I thought you were an agent, or you didn’t tell me you were an agent or whatever. I thought you were helping me or representing me, then they get upset about it. You could face some trouble.
David: Some legal action.
Mike: It’s not good, so again… that is extremely important.
David: It is very easy to avoid; just disclose to them, you could probably even do it verbally.
Mike: I would get it in writing.
David: Probably get it in writing. But say you are an agent; however you are not representing them. That’s it, it is that simple.
Mike: We put it on all of our marketing… it is very important.
David: Our marketing essentially says that we are agents and we have a brokerage, but we are not reaching out to you today to list your home; we couldn’t care less about that. We are reaching out today because we want to buy your home. Alright moving on, what have we got here?
Mike: See, I told you this was going to be a great episode.
David: Lots of good stuff in here.
Mike: Let’s talk a little bit about risk management and insurance. So when it comes to the business… again, when you are first starting out, probably not quite as important… I know I just carry an umbrella policy when I started. I think that is pretty much what we carry at this point to.
David: We have multiple insurances.
Mike: Multiple policies.
David: We have an insurance policy like an umbrella on the business. But we also insure any property that we essentially purchase. We get a great rate because we are doing lots of volume. Essentially what we do is…. well for one if we get a loan on the property you have to have insurance period. They are not going to lend you without having insurance. But if we are just going to buy something for cash… even if we are just going to be holding it for a couple of days. Most of the time we will get insurance on it.
Mike: As a company we decided that if we are going to put up 50,000 or so; we don’t want to risk that.
David: Right. If we buy something for 10 or 15, and we know we are going to have it sold in a week… we may not get insurance on it. But as Mike said; if we are going to spend 40/50/60 grand, 200 grand whatever on a property, even if we only intend to hold it for week; we still ensure that property.
Mike: One step further; even if we buy a 10/12 thousand dollar house, or a $7500 house; we are going to get insurance on it if there is going to be someone living in it. It is extremely important.
David: For the liability issues.
Mike: So we almost always insure properties that we are holding, there would be very few exceptions to that.
David: Risk management is a very important principle to business structure, it is super important. One thing I think people… I guess you could look at this both ways, but I don’t look at insurance as… a downside or a negative or really even as an expense; I look… it is an expense of course… but I look at it like it is an asset, not a liability. Because in the event a catastrophe happens; you are covered. So yes it is an expense, I worded that wrong, but it is not a liability.
Mike: Insurance is what helps you sleep at night.
David: It’s an asset, and it is tax deductible. So every penny that you spend on insurance is that much less money you have to spend on taxes essentially.
Mike: Let’s talk a little bit about risk management and how we deal with that here. We do a lot of joint ventures and co-wholesales. One of the things that a lot of wholesalers, or want to be wholesalers do is they will go and market other people’s properties and they don’t have anything in writing, they don’t have any equitable interest in the property, and it just bugs me to no end. If you are going to do something you have to get stuff in writing with people. You have to have a contract on a property to market it. You have to have an equitable interest in that property. So risk management…
David: … a joker last week trying to market a property to us and he didn’t even have it under contract.
Mike: Yeah it is a waste of people’s time to. It’s… I don’t know. So risk management; make sure you get stuff in writing with anyone you are working with; joint venture partners, when you are using contractors. Spell out what they are doing for you, make it clear that they are an independent contractor… back to taxes again, you have to [00:34:24.24 – inaudible] so that you can… they will pay their tax at the end of the year, so you are not responsible for that. Yeah, I don’t know. That is pretty much all I have got.
David: No that’s great though. One more thing to sum all this up. Putting together the proper business structure essentially… to create an awesome wholesaling business; it is super important to prepare for this kind of stuff in advance, set all this stuff up properly because… if you want to have a successful wholesaling business; you want it to be a business. You don’t want it to necessarily be a job. Unless you have a team that is built out to handle certain things like we have… people who handle incoming calls from sellers, people who handle incoming calls from buyers… and somebody that is in charge of closing coordination, another person that is in change or funding the deals. So by having a team you… essentially become a business owner versus you trying to wear 15 hats and do all these different jobs. You are essentially creating yourself a job and… I hear this so often but a lot of people want to escape the 9-5 job to become an entrepreneur… because they want freedom. But the downside, or the side effect of that is… they quit their 9-5 job, they become and entrepreneur because they want the freedom, but they have no freedom because they are working 80-90 hours a week to make that entrepreneurial shift or jump a success. They are essentially trading something with an outcome they are hoping for that they get none of.
Mike: It happens all the time.
David: It happens all the time. So if you want to jump into being a wholesaler or being an entrepreneur… or owning any business. I don’t care if it’s a tanning salon… make sure you have your business structure set up properly, so that way you are not just creating yourself a job… you are creating yourself a business that you own and run. So that’s it so… Mike, let’s end it with a quotable quote.
Mike: Awesome, this one I think is kind of silly today. “If you did something like a boss, you probably just paid someone else to do it.”
David: I love it; it is about being a business owner though.
Mike: Alright, thanks for listening, guys.
David: Thanks, guys.