How to Underwrite Deals - DAY TWO

So we are going to call this broker. I had this lead pop up from one of my sub two students. This is a lead. I'm actually calling a broker. So if I, the buyer am calling the broker directly, that means that this is not a bird dog deal and I'll explain that to you guys a little bit later. I know nothing about who I'm calling. I know. I don't even know the address of the lead. So you were going to learn a lot of stuff together here. Hey, is this Landon? Hey, brother. This is Pace. How you doing?

I'm doing good, good, good.

Hey, my. One of my partners I bought a bunch of real estate with Myron Briley said you guys were chatting about an RV park that you have for sale.

Yeah, I was supposed to talk to him like right now and I just called him. Yeah, we're talking about two, I think.

Okay, sweet. I think he was emailing me back and forth. I was on the river fishing today and I. So I. Maybe I miscommunicated that he was going to call you and then like three weigh me in. Did he say he was going to call you or. I was going to call you?

Just gonna have a call coming into seven, but we can chat.

Okay, cool. Let's just keep it with me and you. So catch me up to speed. What's going on? You. I think there's two RV parks, correct?

Yeah, there's two that are offering some interesting seller financing. Ones, you know, require a lot more creativity, but that's kind of your specialty. So. Okay, the first one, it's much better market. It's in Anna, Texas. It's called Cedar Meadow. It's got 108 spaces. Kind of a sad story why they're having to sell it. They've got some health issues and some unrealistic pricing expectations right now. Okay, it's a 75, which is want to say 70th space. Based on last year's numbers, it's at the ballpark of a five and a half cap. It should trade closer to a seven and a half. They are slowly coming to terms with reality of pricing. They're not sophisticated folks. They're not wheeler dealers. They're just mom and pop sweet people. And it's taken them getting a little bit beat up by the market to understand that the pricing expectations are not in line. So, okay, 30 days ago, if we were talking, they were only going to do a cash deal. We're not entertaining any seller financing. Just this last week they came back and said, okay, we'll do some seller financing. Here are the terms we'd like to see. They'd like to see 2 million down, 5 and a half percent interest, 5 year balloon. They didn't give me an amortization timeline, but I pushed for a 30. I still don't think it's going to pencil at the asking price of seven and a half, but that can get you pretty close. Truthfully, I think this one trades somewhere between six and a half and a seven depending on the financing terms you put together.

Okay.

I haven't. He literally got me looped in today via email. So I didn't even know the name of the RV parking toll right now, but which is fine the way, the way I typically operate anyways. I'm like, okay, does the structure work? Can I make it work financially? And then I kind of reverse engineer into the om, which is usually backwards. Like when we're doing our multi family deal in my fund, my acquisition manager will go into the OM first and then structure the deal. But this is, this would be for my personal portfolio. So I wouldn't raise capital, I wouldn't syndicate it. And so I would start with the structure, then reverse engineer into the om. Dude, I, first and foremost, I freaking love that you have all this information. Do you know many brokers do not have any of this information?

It's the only reason. So I've been in this business for 10 years and I jumped over into the RV and mobile home spark space because of how bad I thought all the brokers were.

Dude, you are gonna freaking clean house in that part of the industry. Dude, like every broker I talk to just does have, they have no clue what they're doing. This is awesome. I love talking to you. Okay, so here like the second you told me $2 million down, I immediately started thinking about doing it as what I, I call a mory method. I started doing it in the probably like the early 2000s where I come, I go to like a Marcus and Mill chap, I go secure a 2 million or a $3 million loan and then I ask the seller to carry the remaining balance. Is. That's basically what they're asking. They're saying give us two million dollars down, we'll carry the remaining five and a half million dollars. Is that correct?

That's correct. It's also worth noting that these guys have 3.2 in debt. So they're gonna have to come out of pocket under that structure. A million two to close, which is not really appealing. But it goes to show their motivation to get out of this.

Okay, so what if I come to the table with $3.2 million down and then they carry the remaining balance with no payments for like two or three years so I can stabilize, raise, raise the, the revenue, all that kind of stuff. Would they be interested in that if they didn't have to come out of pocket $1.2 million?

I can't speak for them. I'll put anything in front of them. As long as I understand the deal structure, I can explain it to them and get your feedback really quick.

Okay, cool. So here's what I. Here's what I would do in this structure. I would go to Jamie Litzler, my rep at Marcus and Mill Chap. I would send him all the numbers on the RV park. He'd go through the om. He'd go through everything, and then he would tell me what he would give me in terms of a loan. I would go and secure a loan. That loan essentially would be the down payment to your seller. What, Whatever my. Whatever Marcus and Millichaps wants me to bring to the table as a down payment. So let's say they want 7.5 million, right?

Yeah, seven.

Okay. So let's say that Marcus and Millichap will give me 4 million.

Okay.

I would come to the table with $4 million, and then I would go and raise transactional funding for the $3.5 million. And I would fund the transaction as a cash transaction, close it all the way out completely, and then I would ask the sellers to kick back that $3.5 million to my private money lenders and carry that 3.5 for like 24 to 36 months until I could stay, maybe get it at a higher cap, re. Refinance them all the way out in a couple of years. That's probably the structure I would throw at them for that particular deal. Interesting, because if they're. If they're not coming out of the pocket $1.2 million, let's say, to. Basically, let's say I give them $2 million upfront. They have 3.2 million in debt. They're currently under that structure, going to pay your commissions, and they're going to have to come out of pocket $1.2 million to pay off that remaining loan. I mean, hell, we could also just do a sub to deal. Why. Why don't they just let me take over the $3.2 million in debt?

You know, the terms of the loan. It might be construction debt. Okay, term makes sense, symmetry, but I'll check on that. Their goal and the reason I don't know that is their goal has always been to get out of that. So I haven't really explored it, but I can do that.

Okay, so let's say option one. Let's go. Let's say PACE wants to take over the $3.2 million subject to. And then I could even start making some payments on their remaining equity. I can pay your commissions out of my pocket and closing costs. So they basically walk away with no money out of pocket and your commissions are paid. Okay, that's. Let's say that's option one and I'll write this all down. Option two would be I go get a loan for 4 million. They carry the other remaining $3.5 million. And that carry would probably be a minimum of three years. And I would prefer no payments on that three years because they're going to actually pay off the 3.2 plus get $800,000 in their pocket under that structure. And if they could give me no payments, I could probably get up to a higher purchase price because. Pretty obvious, right? I'm not having to go and raise the full 7.5 million full payment in three years. I don't know the numbers on my loan yet, but let's just say between three to five years.

Five would be standard, right? Three would be preferable. These folks, it's health issues, so the sooner the better.

Totally makes sense.

Anybody? But if you can move any levers in one way or the other, shorter would be better for these guys.

Okay, cool. And so that's structure number one. That. That's the one on Cedar Meadow. What, what's the other one?

This is interesting. I think that I'm actually excited to get your thoughts on this one. So this is 104 space park in Kemp, Texas, which is just off of Cedar Creek Lake. Class A very nice, well amenitized concrete roads, asphalt pads. And it was kind of a. Just a pet project for this couple during COVID She's a very, very successful practicing attorney. He's a very successful custom home builder. They didn't have anything else to do. So they threw her money and his construction background towards a park on some land that they already own. They never had any intentions of operating the park and they didn't really even understand that that was going to be borderline detrimental to a cash sale when they were ready to sell it. So they've got this park. It's fully stable or it's fully built. It was finished last month, was sod everything. It's good to go and they have no management. They've got no management, they've got no operational history, they've got no, they've got no interest in doing any of that because again, she's a successful lawyer, he's a successful developer. Any amount of time they're investing in this from a management perspective, it's not their highest and best use. So they're not going to self manage. Option two would be they're going to hire and staff the park, which still requires some sort of management and oversight. They don't even have the bandwidth to do that. And they're not like they've got no debt. So they're not really motivated by the bank or motivated by needing to make money. Option three would be a third party management company but they don't want to sign up with any third party management agreements if they're trying to sell it, if the buyer is not going to be on board with a third party management contract. So right now they're sitting on it, they're saying, hey, we're not going to get our cash price that we wanted, which is 6.5. Just so you know, 6.5 in my opinion is closer to a fully stabilized value and aggressive cap rate. Say like a slightly more aggressive than market cap rate. I think it's a $6 million deal once it's stabilized. High stuff we've gotten cash rise right now is 3.8. They turned it down. They've got more into it than that. So they're looking at some creative structures or they're willing to look at some creative structures. They haven't really given me any guidance on what that means. I think they want to see what the market is going to bring forward to them. In my mind I'm thinking high LTV period of deferred payments since there's no revenue, probably an interest only type deal and then a payoff in five years. But that's just what I'm familiar with. If you've got something else that might be creative that gets them a higher eventual exit. That's what they care about. They don't need the money. They really don't. They want to get. They would rather get more money in the long term than less money in the short term. So I'll send you the OM on that one too. If you don't have.

What's the city, Brother Kemp?

Texas. K, E, M P. Okay, got it.

Okay. I was typing in K I, P, P, K E M P. Okay. Yeah.

If you type in Bigfoot Cedar Meadows on the map, it's going to take you to a pin that's not directly on the park, but if you look just a little.

So you're just outside of Dallas.

Yeah, 45 minutes from Dallas. Right on I75, or excuse me, 175. That goes between Dallas and a lot of those smaller east Texas towns like Lufkin, Palestine, etc.

Love it. Okay.

All right, so I like both of these deals. I. I mean, these are my favorite deals on the planet. A seller that doesn't need the money but wants to win on their sales price wants to make sure that not only do they get their investment back, but they also win on one, taxes, two, they get more money than they put in over time and they're willing to wait for whatever five to seven years type of thing to get the number that they want. I don't know why we couldn't structure a deal something like that.

And it's a higher importance to them to get the park operational and get it going. So they're looking for a shorter closing timeline and just to get somebody in there to actually manage and operate it so it's not sitting there falling into disrepair, which is not currently. But you don't have to fast forward too far to see grass getting overgrown, things falling out of repair, things getting vandalized, squatters, all that good stuff. So they definitely want to avoid that.

Okay, cool. Love it. The structure that you just said is actually a decent structure for me. We actually use third party management, actually. I'm sorry. We start with third party management usually for six months, and then we onboard our own internal team. We bring on park managers that just live on site and then they're on, they're on W2 payroll. And so we would start with a third party management company. We would infuse revenue, we'd start getting stuff going. I would probably do a deferred payment schedule something like six to 12 months so that we can get us operational. And then what I would do is I would probably go out. Here's what I would probably do in this situation. I'd say let us give you a couple hundred thousand dollars down. Let's just say hypothetically, get your commissions paid or, you know, what have you up front, get them some security, let me come in and stop, start operating it. Give me six months. I go out and secure a loan for let's say $3.5 million. They then carry the remaining two to $3 million for five years and they get their full $6.5 million. Okay. Love it. I have a girl named Heidi Silva, she's my prop. She's my property manager, asset manager. She will probably go out within like a week and go visit both that park and the Cedar Meadow park and we'll get eyeballs on it. But I can send you an LOI if you can do a little bit of homework with me on the Cedar Meadow deal, look at the underlying debt on that 3.25 million. Tell me what that is so I can send a full LOI over to you. And then on the kit on the Kemp deal, I'll send you an LOI probably within a couple of days. If you like those, Lois, I'll send Heidi out there to meet you or the sellers in person and we can build a relationship and see if we can go into a full purchase contract.

I'd like to win.

You're the freaking man, dude. Why, like how many of these are you representing? Can I buy like 4 to 6 a year from you?

Yeah, you could easily. So we're just in Texas right now. I started my company in January. I was again 10 years, but I was doing national retail. Kind of discovered this little niche, hired some guys to go focus on it, Ended up doing really well. We've got a really attractive back end thing. So actually let me tell you about this because I think it might help you get some future deals down the road. So we got into this space not because I'm passionate about RV parks, I am now, but I wasn't at the time, but because I'd done probably more 1031 exchanges into single tenant retail than anybody else in the country. The whole pitch there is if there's the old school mom and pop operator who's got multi family project, industrial project, parks obviously that they've owned for 20 plus years, guess what? The things appreciated and it's depreciated. The capital gains are insane. I can walk in there, show them how we can exchange them into a Starbucks, a Dollar General, a cvs, etc, they don't lose any of their equity. They can maintain their cash flow with corporate credit tax and get rid of their management.

And a triple net lease type of situation.

Exactly. So if you've got that deal on your whiteboard or something, that's the old school guy who says I want to sell. I just don't know what I would do with the money. Call me. But yeah, we can get you.

Are you guys an intermediary?

Uh, we're working on that right now. That's become a pretty high demand thing for us. We're trying to navigate around Some conflict of interest things which I need, just need to do some more research on. But we've got great intermediary.

Literally, you and I are going to make so much money together over the next 10 years.

Let's go, man.

Freaking awesome, man. This is so great. Okay, awesome. Do some homework for me on the 3.2 million. Shoot me a text message and I'll have somebody on my team, probably Jade or Molly, will send an LOI over to you. We'll get on another call and maybe schedule a time for our, our girl to go out and visit the property in person.

Sounds like a plan.

You're the man.

Get started on this once I get back from dinner.

Thank you.

Thank you. Appreciate you.

Thank you. Talk soon.

Okay. See ya.

Wow. Phenomenal. I don't think you guys knew you're in for such an. Did anybody learn anything? Do you see how fast, like when you, when you get to a point in this business, you know your stuff, you can just zoom through a call. You see how fast. It's like how many people heard words you've never heard before or like five words in a row you've never heard before. Okay, that doesn't take that long to get to that level. But it does highlight to you that that's not where you should start. How many people are like, that is above my pay grade? I immediately know right away that that is above my freaking pay grade right now. By the way, guys, welcome to the show. I will tell you right now, today is day number two of the bird dog challenge. We did day number one yesterday. We. One thing I want you to remember about me is I am a guy that doesn't dilly dally. I start our trainings right on time and I jump right into the action. Today I just talked to a broker on two RV parks in Texas totaling $12 million in real estate that I can walk into with no money out of pocket, no credit check, no credentials, no license. I can buy 11 $12 million of real estate right now from that one broker. That one relationship will bring me four to six more RV parks every year for the rest of my year. I. Or for the rest of my life. I could buy $40 million of real estate from that one guy. Okay, but did you ever dilly dally? Yeah, I, I used to. I, I dilly dally every once in a while. I went fishing this morning. I think that's all I did was dilly dally on the lake this morning. So I wanted to start off with that call number one. That lead Came from one of my students, a student named Myron Briley who I've done 70 plus deals with. Myron's like, hey, I'm not an RV park guy. I did single family and multi family. But now I'm venturing into RV parks and obviously you're my mentor and we've partnered on deals. Will you handle this lead for me? That is not a bird dog deal and I wanted to start out by explaining that to you guys because I actually got an email today that will help you understand what a bird dog deal is not. Because people, a lot of people will confuse things if I the buyer. Okay, we'll. We'll do this on a whiteboard session. By the way, how many people came here for the nationwide buyers list? You want me to give that away right now so you can just leave Some people like me? Yeah, let me give you that list. We're gonna put on side chat on pause. 2,000 people on Zoom right now. And let's see how many people we got on YouTube. We got couple hundred people on YouTube. Guys, thank you so much. We love doing this. I was hanging out with you guys yesterday for two and a half, almost three hours. Today I'm going to do the same thing. We will be back here tomorrow and we will be back here Thursday. This is a four day training. I do a new training every single month so that the training is never the same. This training is all about one of the easiest ways to get started in real estate which is bird dogging. And for those of you guys that missed yesterday, which is obviously a couple of hundred people, I am going to explain to you what bird dogging is for probably the first 10 minutes. Yesterday explained it for two hours. Today I'm going to do it in 10 minutes. Just to recap and then we're going to get into the rest of the training today. But one thing I promise to a lot of people is a nationwide buyer's list. So let me explain to you what that actually means. The buyer's list that we're going to be giving away. I'm going to put the side chat on pause. By the way, have you guys ever seen anybody online talk crap about me? Like oh, he must not even do the business after you watch me make a call like that. Do you go, there's like why would anybody say that that guy doesn't do the business?

Okay.

Like it's so crazy. The, the bigger you get and the more you help people. There is guaranteed on this 2, 000 person training right now, guaranteed, there's people that hate me because I do stuff that they can't do. I get attention that they can't get. I train in a way that they can't educate, and they have nothing but jealousy and envy in their hearts. And so what they do is they come on my training just to watch me me. Guaranteed, out of 2,000 people today, there's people on here that do that. Welcome to life, guys. If you ever want to do something cool, plan on the freaking haters just drooling all over everything that you do. And you know what? You might as well give them a show. And you might as well remind them every single day why they can never freaking be you.

Okay.

All right. So the thing that I promised yesterday, we did deliver this, by the way, yesterday. But we're going to deliver it again because there's some people that missed it. The thing that I did is yesterday Saravi on my team went to a website and she pulled a list of the top 16,000 cash buyers in the United States. A cash buyer is somebody like me, somebody who's buying RV parks, mobile home parks, multi family. They're doing Section 8. They're doing everything that you can imagine. We pulled the top 16,000 people. Now, how do I know that these are actual buyers and they're not wholesalers or daisy chainers or people lying that they're not a buyer? Because the data that we pulled is actually from the county recorder's office, which means your government, your local municipality, wherever you are in the country, has given us proof that these people, with their LLC or even in their personal name, have closed on at least 25 properties in the last 12 months. How many people want those 16,000 people as a gift? Now, that cost me $4,000. So I want to give you that 14,000 per 16,000 person list. You just need to understand this did cost real money. It's not something that I downloaded for free. It's not something I got from a va. This is something we really spent money on. So I want you to treasure this and understand that we are here to give you the resources that you need and obliterate all of your excuses of, I can't do this. Pace is too smart. I don't have the things he has. So the 16,000 person list, we're going to put that in the side chat right now. Just say, guys, say thank you to Carly and Sarabi in the side chat, if you don't mind, for me. Let them know, because I do all sorts of wild, crazy things and I spend the company's money, and when you say thank you to them, it makes them want to do the same thing. We attract bees with honey, not with vinegar. Right. We always say thank you, and we come from an attitude of gratitude. The more you say thank you, the more doors will open up to you. I think we already all know that. All right, I'm going to pause the side chat over here on Zoom so I can give you guys the link. Let's see here. The link. Sarabi sent it to me yesterday. Let me just pull it up one more time, guys. Okay, here it is. This is the nationwide buyers list. Cost us 16, 16, 000 buyers. Cost us about $4,000. This is their phone numbers, their email addresses for, like 80 of them. Not all of them got. We got their emails, but we got everybody's cell phone number and for some people, multiple phone numbers. Now, I want to give you an expectation. I'm going to push enter here on my computer, and it's going to pop that in the side chat for the Zoom. We have over 2, 000 people on the live right now. Pretty awesome. But what happens is everybody's going to click on this Google Drive link and everybody's going to go to the sheet.

Okay.

And when you go to the sheet, what you're going to find is here. I'll even do a screen share right now. There are currently already from yesterday because I gave it away yesterday. There are currently 46 people on this list.

Okay.

Give me a heart emoji. If you're on Zoom, let the team know. Now what I'm going to do is I'll put that link in YouTube as well. For you knuckleheads that are over on YouTube and don't realize that we're over here on Zoom, I will put that as a pinned message for you guys right there, okay? American home buyer Az says, Do we get it on YouTube? Yes. There you go. All right. Awesome. So that buyer's list is what I promised yesterday. That is not part of today's training, is just for the people that missed yesterday. What I'm not doing with these four days of training, today is day two. What I'm not doing is sending out replays. We are not sending out replays. I learned a couple of months ago through a data scientist is he says nobody watches replays, and when they watch replays, they don't really pay attention. And so I just prefer to create content that people watch. And that is typically a live Zoom. So today, guys, it is live. It is Tuesday, the 15th of July. It is 6:26pm here in Montana. I live here in Montana in the summertime. Here's my backyard and my view. This is just another camera I got set up and I'm in Arizona nine months out of the year. Right now it's 120 degrees in Arizona. So last thing I want to do is be there. All right, let's jump into the training. The reason why I started with that call this morning, or, I'm sorry, this afternoon, is because I got an email this this morning. And that email I'm gonna. I'm not sending and sharing this email to pick on anybody. Please get that out of your head. But I want transparency, and I don't really want to be one of these guys is like, well, one day, five years ago, this one person did this thing. I want to give you guys real examples of things that are going on in my Life right now. 1. It shows credibility, right? Shows you that I'm not just some guru. It shows you that I'm actively doing deals and I'm actively buying real estate. It shows you that you should be listening to somebody that's buying real estate even in a market that seems like a crazy market. By the way, guys, there's never been a time in real estate ever. Ever. There's never been a time in real estate where everybody was like, wow, the real estate market's really stable. It seems like a really good time to buy. Never has that happened. It's always something going on with interest rates. There's always something going on with politics. There's always a war going on. There's always job loss and this and that. Guys, just buy real estate. There's no perfect time to buy real estate. There's no perfect time to buy Bitcoin. There's no perfect time to invest other than just right now.

Okay?

So today I get an email, and this email came from somebody named Emika. I don't know Amica personally. They're not one of my students, but they watch a lot of my YouTube content. So Amica today sends me an email and I want to show you this email, not because I'm picking on Amica, but because I want to show you what is not the way to do this business is to just send a bunch of email or just send an email with no context. Okay, so Amica has watched training of mine and we talked about bird dogging, we've talked about wedge method, we've talked about all sorts of things. And we're going to talk about more today, the theme, the three things I'm going to talk about today are going to be number one, See if I can get this to draw for me. Of course it doesn't want to. Let's do a new one. Okay. There we go.

Perfect.

One of the things that we're going to cover today is we are going to recover what a bird dog is.

Okay?

So bird dog, this is the focal point of the training for the next four days. We are then going to talk about Wedge method. And then we are going to talk about the orbit program.

Okay.

Orbit program that I do for my sub two members. And I want to tell you the difference between these things and the responsibility of the person that's trying to get into the business and how they can participate on each one of these things. Bird dogging, okay? Bird dogging is where you are finding a deal that's already under contract, meaning it's ready to be sold.

Okay?

Meaning somebody else has already called the real estate agent. Somebody has already negotiated with real estate agent. Somebody's already done the call that I just did. Somebody's got that deal under contract. They've done the due diligence, they've done the comping, they've done the underwriting, and they got that property under contract. They then bring that contract to you. So let's talk about this. Every deal, my friends, as we've talked about a hundred times, every deal starts with a seller. Every deal that you will ever do starts with a seller. And as you heard me talking to that real estate broker right before, you know, maybe some of you guys just trickled in here, but I just had a 14 minute call with an incredible broker talking about two RV parks on seller finance. Now this seller, I didn't talk to the seller. I talked to the broker. Right? So here's the broker. His name is Landon. Landon's awesome. As you guys can hear, educated on seller finance and creative finance, which is awesome. I am the buyer talking to that person directly.

Okay?

I'm the buyer. So I'm negotiating with Landon. I'm working on loi. That's letter of intent. Letter of intent just means let me send you a soft offer. That's what an Eloi is, a soft offer. I know there's a lot of things to learn here, which is why bird dogging is actually a preferred method of getting into the business. Because you don't have to learn anything. I'm. I just did on that call. You don't have to learn anything about landing. You don't have to learn about contracts, you don't have to learn about those things as the bird dog. But what happened on that call is that Myon, one of my students, brought that lead to me. Okay, so let's go through and explain this. Okay, so here's the seller again. Seller is trying to b sell his RV park. That seller is being represented by an agent. You guys just saw that call with that agent. Myron, my student says, man, I'm, I don't know how to comp the RV park, but I've done 70 plus deals in my lifetime. I know how to talk to agents, I know how to set appointments, but I don't know how to comp and look at RV parks. So what I'm going to do is I'm going to do what is called the wedge method, which means Myron is going to make the call, Myron is going to set the appointment. Myron is going to do some upfront digging and figure out what the heck is going on and ask questions to make my job a little bit easier as the buyer on the back end. This is not bird dogging. This is wedge method, which means Myron's going to find an opportunity for me. He has cold call. He knows how to set appointments. He knows the questions to ask up front. He knows how to set the expectation and make sure that I have the information that I need so I can jump on the call and have a more successful call with this agent.

Okay?

That is called wedge method. Why is it called wedge method? It's called wedge method because as I pace, I go and buy this RV park, I will allow Myron to wedge himself into ownership with me in this park. Okay? This is something I only do with my sub 2 members. I will let them bring opportunities like this to me. I will close them like I just did on the call. I will negotiate. I will send out my property manager, I will do all the paperwork, I will do all the work. But did Myron just simply send me an address and say, here you go, do you want to buy this or did Myron do some upfront work in the very beginning? Let's hear it in the side chat. What did Myron do? Did he just send me a bunch of addresses or did he do some upfront work? Okay, that is not a bird dog.

Okay?

A bird dog is sending me houses that are already under contract. They're copying and pasting. We'll go back to that in a little bit. Myron is actually doing some work. Myron sends me an email. He sets the Appointment for me to talk to Landon. There. There's. It's not perfect, but did I have to cold call as the buyer? Did I have to do any upfront due diligence? Did I have to set the appointment? Did I have to set the expectation? Did I ask the first 10 or 15 questions? No. Myron did the legwork. And so I will carve him into my deal. I will either wedge him into ownership or I will wedge him into a finder's fee. So I call it the wedge method. Okay, give me a yes. That you guys understand that Myron actually communicated with a property that is not currently under contract. Do we understand that this property is currently not under contract? There's still negotiating, has to be done. There still has to be due diligence. There has to be all sorts of things that have to be done. The contract is not done. So Myron is doing a lot of upfront work in order for him to deserve ownership or a large fee. Give me one more yes. That you understand the difference. Okay, so that's Myron. Now, that property is not under contract, but Myron's not sending me an address. Let me ask you a question. If Myron just sent me an address, let's say off a website, it's represented by an agent, so it's not under contract. It's just being represented and saying, hey, we're open to selling. If somebody sends me an address and just sends it to my email with no context, is that what we should be doing in this business? No, because one, I don't know why you're sending me the address. I get this all the time. I saved a couple of them in the this morning so I can show them to you. This is the most common misunderstanding people have is they just copy an address offline. They have no context of what the heck is going on. It's not even under contract. The real estate agent's never been spoken to. The. They don't know what's going on with the seller. They know nothing, and they just take the link and send it to me. Now, this happens all the time, like, so frequently that I go, man, maybe there's something in my training that I'm not doing a good job of.

Okay?

No, James, we are not doing a replay. I'm going to say that a second time. We are not doing a replay for any of these four days. I'm not doing a replay. Why? Pace, you always do replays. I don't anymore. And I've learned the reason why is because when we Send out the replay. People watch it in like 3x and then they just don't understand it. You're either watching it live or you're not watching it at all. I've just learned. Okay, so we're not sending out replays, period. End of story. Done. You're either here, you're watching it, or you are watching Netflix and hanging out and mowing your lawn. I don't know. Okay, so here's what's interesting. If you listen to my training and you want to do bird dogging, you need to understand that the property you are going to bird dog needs to already be under contract. Please write that down. Let's talk about this. And let me explain this to you because I'm going to show you a couple of emails that I got this morning to help you understand what the heck I'm talking about just a little bit more. Okay, so let's go back to the drawing board. Every deal, as we already know, starts with a seller. Seller selling a property. He hires a real estate agent. Sometimes they do, sometimes they don't. But let's just say in this story they do. Wholesaler comes along, okay, Somebody that knows how to find these deals. Wholesaler comes along and says, hey, real estate agent, I'm interested in selling, buying this property. They strike a price, let's say of $200,000, and they get this under contract for $200,000. And there's a contract that says that this wholesaler has the ability to buy this property for $200,000. Now, this contract is going to have a couple of things in it. It's going to have coe. That means close of escrow. That means the day you're going to buy the property, the day that the seller receives their $200,000.

Right?

Close of escrow, finalization of the transaction. It's going to have the purchase price. It's going to have the due diligence period. It's going to have due diligence, just means inspection period, all that kind of stuff. It's going to have earnest money. Earnest money is like the down payment to the transaction. It's going to have all of these things in the contract. We all are. We all understand this, correct? Guys, I'm going to put the side chat on pause so you guys can just focus. Some of you guys ask questions so far off base that it's obvious you're not paying attention. Can we type in the side chat today? Patience. Just type in patience. Let's drown out all the people that are throwing out questions. That have nothing to do with anything that we're talking about. Have patience. If you showed up yesterday, you. You were One of the 2100 people that showed up yesterday. For the three hours. Give me a rating on how good the training was yesterday in the side chat. Give me a rating. A four, a six, an eleven. Okay, cool. Did I miss anything? Did I skip over anything? Or did I cover everything that needed to be done chronologically? Cool. So just be patient. If you guys are showing up for the first time, I promise I'll cover it. I'm going to put the side chat on pause. Even though I like the side chat. I like seeing your guys names, I like getting to know you guys. But sadly, people ask questions that are so far out of context. Okay, so give me an emoji. Give me a heart emoji on zoom right now. If you guys understand that this wholesaler got this property under contract. Cool. So what work did they do? Well, they found the lead, they comped the lead. Comp means figured out the value, they contracted the deal, but the contract is really actually challenging you. They followed up, right? They followed up multiple, multiple, multiple times. In fact, pay attention to this. 70% of all of our deals require 13 follow ups or more. 70% of our deals require 13 follow ups OR more. So we can agree that this wholesaler has been working their butt off. They're calling this agent at least 13 times. 70% of the deals that we do require 13 follow ups or more. So this wholesaler has done a lot of work. They've learned sales skills, right? They've learned negotiation. They've learned human behavior. They've learned how to comp. They've done so much up front before that deal even makes it its way to me. If I was given that phone call. I'm the buyer. By the way, if I was given the phone call to negotiate with that buyer agent directly, that means Myon, my student, did not get that under contract. Why? Because that relationship with that broker is probably a little bit over his head because he's not into RV parks quite yet. This is how I teach a lot of my students is I just go set the appointment for me. I'll close the deal. I'll wed you in on a finder's fee or ownership in the park with me. That is not a bird dog deal. Because that deal that Myron set up for me is not under contract. I, of course, Myron did some upfront work. He set the appointment, did all of that. But Myron didn't do the Follow up, didn't do the contract, didn't do the comping. He doesn't know that yet. He's in the process of learning that. I have to step in as the buyer and do a lot more work. I'm basically doing the wholesaler's job and getting the contract, doing the follow up, doing all of those types of things. That is not a bird dog deal. A bird dog deal in this situation. Okay, let's go back to the drawing board. Let's say the seller has a property trying to sell. So here's the seller, here is the real estate agent representing the seller. The wholesaler comes along, they go under contract for $200,000. I, the buyer am over here, right? I'm the buyer. A bird dog is the liaison between the two of us.

Okay?

I'm going to call it BD Bird dog. The bird dog goes to the buyer first. This is step one of being a bird dog, is you go to a buyer like me. So that 16,000 person list that I just gave you is 16,000 buyers that are buying deals just like I am. 16,000 buyers. I gave that to you guys today. You go, step number one. You are going to get a buyer and you're going to say, hey, buyer, my name is Pace. I'm brand new to the real estate business and I would love for the opportunity to send you properties that are already under contract. So what's cool about this is the wholesaler's already done all that work for you. Okay, you, the bird dog go. All right, buyer, what do you want? The buyer says, well, I want a three bed, two bath, I want, you know, two car garage. I want to be in Tempe, Arizona, or I want to be in Tampa, Florida, or I want to be whatever, whatever their buy box is. Then you, the bird dog, go and find the wholesalers who have those types of opportunities already under contract. You copy those addresses and you paste them to your potential buyer. Your potential buyer gives you feedback. I'll tell you guys a couple of stories today. The bird dog never had to cold call. They never had to contract. They never had to comp. They never had to do any of those things. They never had to do any of the challenging things that you just watched me do on that call.

Okay?

So if I made the call as the buyer and Myron set the appointment for me, that property is obviously not under contract. So let me ask you a question. If a property is not under contract, are you bird dogging a deal or not? Okay, there you go. Everybody's Saying no means we're paying attention. Awesome. So let's go to what Myon was actually doing, which is called the wedge method.

Okay.

Thank you guys for paying attention. It's awesome. I love it. I love watching you guys pay attention and, like, totally get all this. This is so cool. Okay, so we've got a seller, right? The seller has an RV park. The seller obviously has a real estate agent right here. Okay, here's the agent. What Myron did is Myron, my student in sub 2. Myron says, Hey, I don't really know a lot about RV parks, so I'm not going to pretend like I do, but, man, I've done 70 plus deals. I know how to set appointments. I know how to do the legwork up front. I'm articulate on the phone. I'm like, totally not afraid of calling this broker. So Myron calls the broker, asks the questions. Dubs does the upfront work. So here's some questions he would ask. And we're not going to train on the wedge method. We might do. We might train on the wedge method next month. Give me an emoji, a thumbs up or a heart method. If you guys want me to talk about the wedge method next month in next month's training. But this right now, I'm just trying to highlight what wedge method is and why it's different. To lead into my point that is coming up in a couple of minutes. So Myron will ask questions like, hey, Landon, my name is Myron. I've done a lot of deals, but I'm really not up to speed on RV parks. I have a quality buyer that buys RV parks and would love to probably talk to you about these two RV parks you're currently representing. I saw them on Zillow or I saw them on Crexi or I saw them on LoopNet or I saw them on Land Watch. Whatever Myron said. I don't know where Myron saw these.

Links.

Because Myron did the upfront work. He kept me, the buyer, out of it and he made my life easy, which is where his value is provided. So Myron calls Landon and says, hey, I have a buyer. I don't know a lot about RV parks, but I want to ask a couple of questions. I know my buyer only buys deals on Creative Finance. Would your sellers be open to doing seller finance and taking no payments and no down payments? Would your sellers be interested in something like that? Landon? The broker says, yeah, absolutely. I'd love to have that conversation. I think my sellers are open to that. Conversation. Let me talk to your buyer, Myron. Saves me the time of the call, saves me the energy of making the thing. And guess what? The most amazing thing that Myron does for me is Myron sets an appointment for me to talk to this broker, which actually raises my status when I call that broker. Because now I'm the type of person that needed an appointment to be set to talk to me. So I am postured in a higher level conversation. Give me a yes in the comments if you understand the value that a wedge method brings to me, the buyer, okay, the bird dog will never do any of these activities. If you are doing this activity, you are doing the wedge method.

Okay?

You are finding opportunities for me, but you are not finding a deal for me.

Okay?

And I'll cover that in a couple of minutes as well.

Okay?

Myron did a great job doing upfront work. He knows what I'm looking for. But Myron wants to make a little bit more money, right? You want to make a little bit more money, you got to have a little bit more skill. You want to make a little bit more money, you got to do a little bit more upfront work. Save me, the buyer, the headache of having to do some of those boring things that I'm not excited about doing anymore. I did a lot of those for 10, 15 years. I'm not interested in doing that, those things anymore. This is why I have students. I teach them how to do it. They bring these opportunities to me. We make money together. That's how this works.

Okay?

But what happens is how many people right now, let's be honest, how many people right now, if I told you to go to Crexi, okay, I'll show you how to do this really easy. This is probably what Myron did. Okay, let's go to crexi.com.

Okay?

And Myron probably went to Crexi and he probably typed in owner finance, and he probably found a broker that's representing a property. By the way, these are not under contract. These are people that have opportunities that need to get under contract. So Myron probably went over here, called one of these brokers and set the appointment for me. How many people right now, Give me an honest answer. How many people right now would be comfortable setting an appointment and asking the proper questions? Actually, give me. How many people would not be. That's a better question. Say no. If you're the person that's like, I'm not comfortable with that. I need training. I need to understand more. I'm scared. Give me a no. In the comments. If you would not be willing to do that right now. Okay, cool. So you are a better fit for bird dogging because bird dogging doesn't require you to do any of those things. You are only going to people who have already gotten these under contract. The calls have been made, the negotiations have been done, the contracts have been written up, and everything's completely done. So can you upgrade from bird dogging to doing wedge method? Absolutely. It's one of the coolest things on the planet. But I need you to understand the difference because what happens is so many people, after these free trainings that I do on YouTube and all these cool zooms and we got 20, 100 people here, people will send me emails that just blow my mind. And this is again, do we all understand? I'm going to show you something. This is not me criticizing or beating anybody up. Can I get a yes?

Okay.

But I love showing you real examples that just help you highlight that it doesn't make sense to do this.

Okay.

And Amica, really nice person, I don't know if they're a boy, a girl. I don't know really anything about them other than they like to tell me. They like to send addresses but not explain themselves. So let's go to the email that I received. If I get this email right here.

Okay.

Amica sends me to my email underwriting at Pace Morby, that's my team. And Heidi Silva, somebody on my team. They say, please find below the list of the fifth batch of sub 2 deals. These bring the total to 85 offers. Okay. If I click on one of these.

Okay.

Hey, Chris Connor. Okay, this is an interesting thing. Chris Connor. I think maybe Chris Connor showed up just a little bit late, but Chris Connor, you just asked a question I would love to highlight. So we can just get everybody in alignment here. Chris Connor. How you doing, man? I'm unmuting you. I want to chat with you. Chris Connor, how you doing? Chris Connor, can you hear me? I can hear you now. How you doing, Chris?

I'm doing good, Chris.

Were you late and. Or did you hear the part where I said, hey, guys, just be patient. I promise you I'll go chronologically through everything. We got to build the right I, I, I did.

I, I.

Unfortunately, I had an emergency phone call, the beginning of your, your deal that I missed. I was sitting there and waiting for you to start 15 minutes in, and then for, and then, and then waited. So, yeah, I'm still waiting for that.

You're still waiting for me to Start.

No, no, I, I understand what you're saying. That it's, it's chronological, that it's a matter of having the patience.

And I love the question. I appreciate it because it helps me highlight. Guys, I promise you, I'm not going to leave you hanging. I'm going to show you how to do all of these things. But I understand when I teach, what happens is, are the common mistakes that people make. So I'm showing you a common mistake before I get to the thing so that when we get to the thing, you don't have any confusion.

Okay?

Please be patient. I will show you all the things. If you have a question, please raise your hand and I will get to it at the end of today's training, I promise you. I think I went through a dozen Q and A's yesterday. Just raise your hand. As long as it, as long as it pertains to the training that we're doing today, I will absolutely ask your question. And by the way, I love that you asked that question. Super helpful because it helps highlight the fact that I will get to it. So let's go back to this for a second.

Okay.

Yeah. Paul says. Yeah. The problem is some people hear you, but they don't listen. You are correct. That's why I have to repeat myself four or five, sometimes six times. Okay, so let's go back to this amica awesome person sends me a list of addresses.

Okay.

These are properties that are current, currently represented by real estate agents. So let me reshare the screen. I clicked on the first link so you guys can see where it goes. It goes to a public website, so I like.

Cool.

Thank you for sending this over to me. I could have pulled this up myself. Did you set an appointment for me to talk to Bellen Hughes, the real estate agent? Did you ask the real estate agent if they were open to sub to. What was the conversation like? Like that is all missing for me. And so what happens is people will literally just copy and paste addresses to me as if I don't know how to find those addresses. The value in this situation is either you're bringing me something already under contract or B, you are bringing me a lead that is interested in talking to me and you set the appointment for me to talk to them.

Okay.

If you just send me an email. And by the way, this happens all the time. People send me Zillow links in my Instagram dms. They send me like the weirdest emails. I get the weirdest emails. Amica's was actually really awesome. I'm not saying theirs was weird, but look at this. They sent me 85 addresses. Let me ask you a question. This is honest, honestly, do not make a joke about this. Let's, let's be real here. Let's think logically. What am I supposed to do? Or what is my team supposed to do with that email with 85 links? Let's not make a joke. Let's be serious. What does, what do you think amica thinks I'm going to do with those things? Call them interesting. So you want me to cold call something that's all public information. My question is, what do I need you for? Do we all understand, like, there's no reason for me to need you if you literally are just sending me Zillow links or cry links or LoopNet.link. do we all agree with that?

Can I.

And by the way, this is not being, being rude. I'm just highlighting something for everybody. If you're sending somebody a link to an agent's listing, is that property under contract? Has it been negotiated? Has it been talked down, followed up with sales process, human psychology? Contracts have been done. Escrow has been open. Has any of that work been done? It's pretty obvious. It's no.

Okay?

This is public information and these properties are for sale. But there's no. You either got to get it under contract for me or set an appointment for me to talk to them after you do some upfront work, like asking the right questions and leading in the right direction. If the agent says, absolutely not, we're not doing seller finance, then you know not to even send me that opportunity. I would never talk to somebody that's interested, not interested in seller finance.

Okay?

How could I even say yes to any of those? None of them are even under contract. So let's play this out real quick. Let's say I go, hey, am I like number 29? Yes. Now what am then goes, okay, will you call the agent and do all the work?

H H.

Lori says, how do we make an appointment? If you're a sub 2 member, you know how to make an appointment. If you're not a sub 2 member, there's. I'm not doing a deal with you, period. You should do a deal with the 16,000 people I gave you. I gave you those people. I'm just saying, in general, when you working with those 16,000 people, sending them a link to Crexy does not do them any help. Do we understand that? Okay, so the list doesn't help me. And so I, you know, this is like the 5th or 6th email am sent. And so I replied back today as I'm driving, by the way, I was at a stop sign and that's really the only time I had time to do. So I wrote an email back right here, as you can see. I said, amica, I'm not sure what you're trying to do. Sending us crazy links with zero context does not give me much to go off of. Can you please tell me what you're expecting us to do here? Maybe you should come to my training today.

Okay.

And of course I gave them the training and I said, come in and hang out. So amica could be in here today. I'm not sure. I'm not quite sure. Amica then says, a negative response is still a response from the honorable Mr. Morby. Interesting.

What?

What? I'm like, okay, so then, you know, they go over the thing and I said, hey, Am, what part of my email was negative? Can you please tell me what you expect to do? Is this emails email addresses you're sending? Are you wanting me to have. Have them call for you? Please help me understand. Then Am's response is this. I refuse to believe that I'm being gaslighted by my own mentor role model like the Christians do, quoting God's word back to him in prayers. I will say the pr. The answers to your questions are below in the following links. Okay, so can I by. By the way, Amica could be probably the nicest person on the planet. That's super trying because here's the cool thing. I'll give AM some, some kudos and some credit. There's a lot of people that don't even try. So first and foremost, Amica's awesome and I appreciate that person. But can we see that, like, there's no value would. You would never go to a buyer, somebody that has the ability to buy an apartment building, an RV park, a single family property. Do we all agree that just sending somebody a copy of an address with no context doesn't help the buyer? Okay, so all 2100 people here, please pay attention to me because I get you guys DMing me in my Instagram DMs and you say, hey, these buyers are not replying to me. When I was first in the business, I was like, man, these buyers are jerks. Why would these buyers not reply to you? That doesn't make any sense. Then. I've been in the business long enough to know that the reason why they're not replying to you is because you're sending them Literally addresses with no context, no communication. You're not introducing yourself, you're not saying, hey, I found this. What questions would you like me to ask this person? And. And what time could I set an appointment for you? It's very interesting that now I'm the culprit, I'm the bad person and I'm the gaslighter. Even though my email was very polite, did you guys see any rudeness or negativity in my email to Amica? Now giving justification to maybe AM is that maybe AM just read it as an email and emails come across, you know, bad context. That person am what strategy are they trying to follow? The. They're trying to follow what I would call the orbit program. Okay, the orbit program. Something that I do also for newer sub 2 members that are evolving into being like a bad mama jama. The orbit program is where a planet, somebody like me, like a big planet, allows an a newer person to orbit them and bring them value to some degree. Sometimes it's following up on leads, sometimes it's going on appointments, sometimes it's managing contractors, but basically orbiting somebody like myself. How many people would like to orbit somebody like me that's already in the business? I've got properties all over the country and you're like, I just want to be in your orbit. I would suggest to somebody like Amica to just send out an email and go, hey, I'd like to provide value to you. Whether it's following up with your leads, maybe setting appointments for you, you know, checking in on your contractors. I love to orbit you. I think the next step for somebody like Amica, who's obviously very new and maybe misunderstood the training, sending me an address of a property that I have to do all the work for you actually doesn't provide me any value. It actually let's make an argument it takes away from my life. I now have to reply to you, I have to coach you. I have to do all of these things and tell you what to do. Make sense? The reason why I do these free trainings is to help you guys get trained so that your buyers don't have to train you. So that when you come to the table with a buyer and you want to do your first deal with them, you already have momentum. You already understand what the heck the value is that you're trying to bring to the table. Going and telling people, here's the address and then no context. How many times do you think I get those emails? Every day I have another 1am and by, by the way, Amica could be, like, the coolest person on the planet. I don't know. Let's see. Okay, I want to find another one that came across today. Okay. Somebody sent me one today. And I, like, really need you guys to see this because it is very similar.

But.

But am did a really good job, like, replying back and forth. A lot of times people will send me an email that literally has nothing but an address in it and nothing else. And I'm going to pull that up so you guys can see that this is going on very frequently. And, Lori, I get like 300 emails every single day. So let me go through this. It popped up this morning. I deleted it, of course. But this is something you guys need to understand. If somebody's deleting you deleting your stuff, it's because you are sending them things not worthy of replying to, and that might hurt some people's feelings.

Okay?

Deal? Lead. Okay, cool. Here's an. Here's one that I got a couple of days ago. And Josh Sayer, I don't know you off the top of my head, so I apologize. But I'm going to show you an email that popped up from Josh Sayer. This is an email. It has no context. No email, no communication, no, hey, this is what's going on. It is literally just a screenshot of, hey, what do you think I did? I'm like, I don't know who you are, Josh. I don't know what you're trying to get me to do, so I just deleted the email. If you're not going to give me context. And I'm not trying to be rude. I'm. I'm busy.

Right?

You want something done, hire a busy person. You guys want to work with busy people, I imagine. And so if you're going to be sending stuff, make sure it's going to be one of two things. One, it's a property that's already under contract, and I'll show you an example of that in a second. And I'll show you where to get the properties that are already under contract. I will show you that today. Or two, ask the buyer, hey, I'd like to set appointments for you. I'd like to find leads and opportunities for you. What are you looking for? I'll set these up for you on your calendar. Okay, no, these people are not sub 2 students. These are people that get my email from. If you guys Google my email, you'll find my email and I will delete it if you do not give me the context of what the heck is going on? So, no, These are not sub 2 students. My sub 2 students are trained. They would never. They would never do that. Okay, I gotta find this one. I. The one popped up this morning. That's just mindboggling to me. Dang it. I don't want to waste your guys's time. I know people want to be basically, you know, educated and educated and entertained. So this kind of stuff pops up all the time. Can we all be in agreement? 2100 people. You are never going to send an address to any buyer unless that address is going to be one of two things. One, it's already under contract and it's ready to purchase, or two, you are asking them, hey, can I do some fact finding for you? And can I set an appointment for you? And can I do the wedge method with you? I do not have time to teach you guys the wedge method this month. I will teach it to you guys next month. In next month's challenge. Are we all on the same page?

Okay.

Cool. Very, very cool. I'm not going to answer anything about wedge method this week. That will be next month. We'll talk about that next month. All right, so where can I find a property under contract? If I want to be a bird dog, where do I find a property under contract? Okay, let's go through and talk about that. Everybody ready to take some notes? We're going to answer this question of where do I find the deals that are already under contract? You find them from wholesalers, Pace. Where do I find wholesalers? I. We will talk about that as well.

Okay.

Cool. Here's one of the fastest ways to find a wholesaler. I'll show you guys really, really fast. I've shown the multiple people this, but I'll show it to you fast because some people don't want to hear a story. They want just the tactical stuff. So I'll show you some tactical stuff right now. Something very easy you can do right now where you're listening to me today. So we can go in here and we can type in cash buyer, Tennessee. Cash buyers in Tennessee. There you go. We buy homes in any condition. Genuine Property Brothers, Landmark Home Solutions. All of these people are wholesalers. These are actually not buyers. They are all liars. They are lying to homeowners. And that's perfectly all fine. It's legal. They are lying and marketing themselves so that homeowners will Google cash buyer in Tennessee. Or let's say real estate investors. Okay. Real estate investor in Tennessee. Okay, so what it's going to do is it's going to pull up ads, okay? There's always going to be an ad at the top. So property investors, sell dot fast. All of these people are wholesalers. Look, there's one right here. Real estate investors, Nashville. These are the people that are going out and finding deals. They're sending out letters, they're doing billboards, radio, tv, everything you can imagine. They're trying to get homeowners attention so that they can negotiate with those homeowners and get those houses under contract. Once they get those under contract, they turn around and they sell them to people like me, buyers.

Okay?

One of the largest wholesalers in the country. I will give you guys this list tomorrow. I'm going to give you the largest wholesaler list in the country tomorrow. It's 1100 wholesalers. How many people have seen? Give me a yes in the comments. If you guys have seen we buy ugly houses, okay? There are, I think right now, 1200 of them. So let's just type in we buy ugly houses.

Okay?

You guys have seen Ugg. That's the name of their, their mascot, Ugg. You've seen the billboards, you've seen the tv, radio, advertisement, you've seen this stuff. Everybody, you've seen this, correct? I was, this is how I started in the business. I was one of these franchise owners for six years. I was the top three franchises in the country. I was one of the we buy ugly houses people. So what are we doing? Okay, there you go. Somebody, Heidi, Heidi says I worked with them for five years. What are these people? These guys are wholesalers. What are they doing? I was spending when I was in 200 and let's see, 20, 12, 13, 14, 15, 16, 17 and 18. So roughly eight years, I spent $20,000 a month. And that $20,000 went to billboards, mailers, postcards, Facebook advertisements, everything you can IM to get homeowners attention. And what I would do is I would go to home owners houses, I would negotiate with them, I would try and get their house under contract. And once I get them under contract, what did I then do? I sold those contracts and wholesaled them to cash buyers, people that were fixing and flipping, and I made a wholesale fee. So if I gave you think about this. If I gave you a list of 1200 of those people that are all spending 20, $30,000 a month trying to get homeowners attention and get those contracts, do you think that would be valuable for you? Do you think that would be helpful for you to just be like, oh my gosh Pace just gave me the 20 people in Phoenix. He gave me the 15 people in Tennessee. He gave me their cell phone and their email address. How did I get all their contact information? Because I was the. I was the top three franchise owner in the country. I have all their information.

Okay.

I will give you guys that list tomorrow. I don't currently have it organized, so I gotta have Sarabi or somebody on my team organize it.

Okay.

Does everybody. Does this make sense to everybody? Where I can give you, like a big list, I can save you a lot of work. Now that's the biggest brand in wholesaling is we buy ugly houses. Or it's actually the name of the company is homevestors. You guys know who owns homevestors? Subway Sandwich Company owns homevestors. Freaking crazy. Freaking weird. I know it's weird, but it's like a franchise model. So Subway came in and bought it. Freaking funny how It's a big company. So think about it. Subway franchise bought. We buy ugly houses. And some people in here had no idea. These are big organizations going out and spending literally hundreds of millions of dollars advertising to homeowners. They're going directly to the homeowner. They're bypassing the real estate agent, and they're going into the homeowner's living room and they're buying houses in person.

Okay.

Another person that does this model, there's a lot of people that do that model. They just are not called we buy ugly houses. They're just copying the model. Okay, so the way you would find these people in your town is do exactly what we just talked about, which is Cash Buyer and then your city. So let's do Cash Buyer Miami. What city are you guys in that. You guys want me to type this in? Okay, so there you go. This is the same thing. You just go to go to all. And you're going to go down here and you're going to see all of these people that are marketing. They are spending money right now to get homeowners attention to buy their houses.

Okay?

These are the people you're going to get the deals from. So let's talk about that just for. Again, again. If somebody's spending $20,000 a month to get their phone to ring with homeowners that are in distress, homeowners that are having problems, they're going into the living room. They're scheduling a time to go into the living room. This is how I started in the business, doing this exact thing for eight years. I stopped doing that full time in 2018. 19. And I started building my portfolio, and I got away from going into the living room. I miss it a lot, but that's what I did in my business. So do I have a lot of time if I'm going on a couple of appointments a day and I'm following up in the meantime and I'm calling people and I'm trying to negotiate, I'm doing. Do I have a lot of time to be fixing and flipping? Do I have a lot of time to be going out and also building a portfolio? Not really. Okay, so these people are typically wholesaling their contracts and making a finder's fee. They also don't have the most consistent buyer pool, and so they're constantly looking for new buyers. And so in the country, there's a role that helps both the buyer and the person that's going in the living room, which is the wholesaler, and that person is the bird dog. It's the intermediary between the two parties. So let me explain to you a recent deal that I've done so you guys can understand a very, very recent deal and how a bird dog deal works. Okay, look, El, Eldrica, that's a very interesting name. Eldrika says, hi. I'm a wholesaler. Here's my number. With several properties under contract, such as. Okay, so cool. Let's. Let's talk to Eldrica so you guys can understand how this works. I think that's how you spell your name. That's freaking crazy. Eldrica sounds like a woman's name, but I'm not sure. Eldrika, is that your name? Elrica?

Yes. Do you hear me?

What an interesting name. Where did that come from? Eldrica, I could hear you for a second and you went away. What happened? I'm going to disable your speaking again and then allow you to talk one more time. Oh, wait, that's the wrong person. Eldrica, where'd you go? Gosh. I want to talk to you.

You.

She. So she actually has properties under contract. She's a wholesaler.

Okay.

Eldrica, you there? We could hear you for, like, a second. There you are.

Can you hear me?

Yes, I can hear you.

Okay, thank you.

Okay, so, El, you are going out talking to sellers or talking to real estate agents, and you are getting properties under contract. Is that correct?

Yes, the most of them, I have the lock or the blessing that they approach me. I have my Facebook page and everybody is approaching me to work together with them, say, hey, I have such and such from property on the contract property to offer. Can you take it over and say, okay, yes, no problem? I have. How it started with me is one time I saw.

Okay, so Eldritch, you. It sounds like you are actually not a wholesaler. It sounds like you are actually a bird dog.

Yes and no. Because I just linked up with the lady, like a few months ago, and she has sending me a lot of properties all the way in Texas, nationwide, Florida.

So, guys, this is. By the way, this is very important for you to understand the roles that we all play in real estate. Help you guys if you are brand new. When you start understanding what people are doing. You can understand what. You can understand how to provide value to somebody when you understand their role. So what I'm trying to do right now with Eldrica is I'm actually trying to. Hey, Kayla Arena. Guys, can I get. Can I just put the buyer's list in one last time and we can be done with the buyer's list? Can I get a. Yes, we're done with the buyer's list. Everybody that shows up late, you freaking chuckleheads. You freaking chucklehead knuckleheads. Show up on time, you knuckleheads. There's the list in the side chat. We're done with it. Please, guys, when you show up late, you mess up the whole entire show, Please. Okay, so, Eldrika, it doesn't sound like you are negotiating with the sellers, and it doesn't sound like you're negotiating with the brokers or the real estate agents. That is a wholesaler, somebody who is communicating and negotiating and getting these properties under contract. That does not sound like what you're doing. It sounds like wholesalers are coming to you, Eldrica, and saying, hey, will you help me sell my deal? Is that correct?

I will say yes and no. Yes.

Because the answer. The answer is very clearly yes. You are not marketing. You are not going in people's living rooms. You are not negotiating and following up with sellers directly. You are not doing that. People are bringing you properties that are under contract. Is that correct? Yes or no?

Correct. Yes.

Okay, great. You are not a wholesaler. When you are doing that, you are a bird dog or a dispo wholesaler. You are selling other people's deals. Is that correct?

Yes, with my partner, yes. Sure.

Okay. You don't need to add all the context of. With my partners, either. Yes or no. I'm just trying to prove a point to everybody.

Okay, okay.

You just. You're just trying to make things confusing for people. Remember that. Everybody listening right now. Just needs to understand your role. Whether it's you and your partner does not matter. Let's keep it very simple. Yes, no, all that kind of stuff because people that are newer, that kind of over. Over stimulates. Wait, do I need to have a partner? Literally, somebody that's brand new will have that thought.

Okay, okay.

You are not a wholesaler. You are your role. If you told me you're a wholesaler, I go, I immediately in my mind, this is how I think of you. I go, oh, she's spending money on marketing. It doesn't mean you also don't have a wholesale business. But when you say I have a website and people come to me and they ask me to sell their deal, you are doing dispo, not acquisition. Is that correct?

Okay, no, I'm. I'm confusing now.

So you are telling me, okay, disposition means you're selling other people's deals, meaning you are not negotiating with the seller. You are not negotiating with a broker. You are not using follow up techniques. You're not lowballing and sending in offers. People have already done all of that work for you. That's called acquisition.

Okay, okay.

You are doing disposition, which means somebody has already done the acquisition. They've done the marketing. They've met with the seller, They've talked to the agent. They've done the follow up. They've lowballed an offer. They've been told to stop sending lowball offers. They've gone through all of that stuff to get a contract. They bring that contract to you, Eldrica, and you go, okay, great, I'll try and find a buyer for you. Is that correct? Yes or no?

Yes.

You are not a wholesaler.

But I have.

But you are now starting a wholesale business because you also want to start doing your own marketing. Is that correct?

Yes. Because I have received.

That is a different business. I need you to understand that that is a different business. Okay, Think about this, guys. Do. Do all landscapers do Christmas lights and snow removals? Do all landscapers do Christmas lights and snow removals? Yes or no? No. Do some of them do Christmas lights and snow removal?

Yes.

Those are two different businesses, my friend. And you're putting them together. They're not the same business. If you told me you're a landscaper, I immediately think lawns, edges, weeds, sprinklers.

Okay, you.

I don't know that you're. Do I. The way you defined yourself is very important in any business. Do we all understand how quickly this can be messed up? Even somebody that's doing it is literally confused by their title. So what's happening is if you are not explaining yourself properly, nobody knows how to interact with you. If you say, I'm a wholesaler, I go, perfect. And I think you're marketing, you're negotiating, you're going into appointments. Great. But if you say I do dispo mean disposition, getting rid of. I sell people's deals. That's what that means. I immediately go, oh, Eldrica, that's awesome. So you have a lot of leads or a lot of opportunities coming to you, and I could just buy deals from you. The way you describe yourself is very, very, very important in this business.

Okay. Okay.

So I'm a dispo seller.

Okay.

You are a dispo wholesaler or also known as a bird document. You are bird dogging for buyers. You are not doing any of the upfront conversations. You're not doing the negotiation. You're not lowballing the seller. You're not getting hung up on. You're not door knocking. You're not selling, sending out mailers. You're not doing billboards. You're not doing TV and radio advertisements. That is what a wholesaler does.

Okay, so one question that they have for you. So now actually the last three weeks, I have like direct sellers. So sellers have the property. They asking me to help them to sell that. So I have like four now that I am.

And are they. Are they under contract? Did you contract them?

Yes, I put them on the contract and everything because I was asking all.

The questions in that situation. In that situation, you are a wholesaler. You are direct to the contract. Does that make sense?

Yes.

Cool. When you are. When you are directly in charge of the contract. The first contract. So let's go through this and draw this out. This is great that we're covering this.

Okay. Okay.

Really, really good that we're covering all this because I think everybody needs to be either reminded of this or just need to hear it for the first time.

Okay?

So remember, every deal starts with a. What starts with a seller?

Okay.

If you are the person, let's say that you are Eldritch and Eldrica is talking to the seller directly. And then Eldrica goes out and sells this deal to a buyer who is going to go fix and flip the house. What is your job title in this? You are a wholesaler.

Wholesaler.

Okay. Directly in charge of this contract. You are the first contract. So this is party A right here. See this a right here, Party A. That's the first party. And this is Party B. If you are in control of the A to B contract, you are called a wholesaler.

Okay? Okay.

Now let's change this up a little bit.

Okay?

If here's the seller, here's Eldrica, then actually, let's reverse this. I'm sorry. Let's say that there's another wholesaler that then goes to you. Eldrica. Here's El right here.

Yes.

This is party A. This is party B. This is party what? C. C. Eldrica, are you directly in charge of the A to B contract? No. Okay, then you would not be considered the wholesaler. Okay. Do not call yourself a wholesaler when you are doing this job. The reason being is because when people are communicating with you and networking with you, they need to know what role you're playing in all of this. Okay, so, for example, you now are finding deals for buyers. Right? Your primary focus.

Okay.

Your primary business right now is your focal point is finding buyers. Is that correct? Correct.

Yes.

Okay, so this. Guys, please understand, this part of the business is called acquisition.

Okay?

Acquiring the deal. This part of the business is called disposition.

Okay?

We also call this dispo.

Okay. Okay.

Makes sense.

Yes.

Does everybody understand this? Give me a yes. Okay, so, Eldra, can. Eldrica, could you be both in your life, could you be both a wholesaler and a Disposition wholesaler? Yes.

Yes.

But when you're meeting me, this is what I would tell you. Okay? Listen to this. You and I meet at a real estate meetup.

Okay?

Okay.

And you come up to me and I go, hey, what do you. Eldrick, nice to meet you. What are you doing? You go, I'm a wholesaler. My first question I'm gonna ask you is, go, amazing. What marketing stream are you currently spending the most money on right now? You're going to go, oh, I, I, I don't. I'm not spending any money. I'll go, wait, I thought, I thought you were a wholesaler. Well, yeah, I am. I. Okay, but you're. You are not marketing. You're not communicating with the sellers. You're like, I'm confused. Are. You're a wholesaler, not a wholesaler. Now, if I met you and you said, oh, I do dispo, okay, I go, amazing. How many deals do you have? Can I look at some of your deals? Do you see how different this situation is?

Yes. Yes.

Okay.

So I'm so glad, I'm so glad that you explained that, because I had that confusion myself. So I say, I don't know what to call myself. Wholesaler. Or bird dogger? I don't know because I do the both of them.

Okay, so here's the biggest difference between a bird dog and a dispo wholesaler.

Okay?

Okay.

I want you guys to understand this is the biggest difference. Bird dog, people go, oh, bird dog is just jv. No, it's not. Kiss my grits. Oh, bird dog. That's just doing dispo wholesaler. No, it's not. You. Whoever thinks that has probably done four deals in your entire life, and you are on my training. Let me tell you how it actually is, okay? A bird dog is only working for one buyer. You start with the buyer, and you only work for one buyer. Can you please write that down? People go, oh, I'm a dispo wholesaler. What does that mean? That means that she is getting deals and she has no idea who the buyer is. And so you. No offense to you, I'm gonna say something that you might disagree with and tell me if you do. People send you deals and you go, oh, my gosh, I can. I need to find a buyer for these. And you have a really short time frame. Stress out about time, and you stress out about earnest money. You stress out about due diligence and inspection periods and getting people access to the properties. And then you. You stress about buyers communicating. You do stress out about all of those things, correct?

Yes and no.

Dude, is the name of your company. Yes and no. Llc. What the heck is up with the yes and nos?

No, because I'm not stressed. I have the deals. I just advertise them. And whenever I close them, I close them. I don't have, like, okay, cool.

So, guys, here's what she's. She's. She's basically saying, yes, Pace, I stress out about all of those things, but I don't want to say I stress out because that sounds a little bit too intense. Guys, she's getting deals from other wholesalers. Makes sense. She's not communicating with the seller. She's not communicating with the agents. Other wholesalers have already done that work and sending it to her. She does not have a buyer in mind right now. What she does is she has hundreds of buyers on an email list, and she sends out a list of the email, and then hopefully those buyer reply to her and say, hey, I'm interested in this deal. And she goes, oh, great, let's start communicating about the deal. Does this make sense?

Yes.

That is not a bird dog. That is a disposition wholesaler. Why is that so important? Because when you are in the very Beginning. How many people have watched my training videos or other people's training videos and you feel overwhelmed? Give me a me. How many people feel overwhelmed when you're first starting the business? I don't know where to start. I don't know what to do. Do I need credit? Do I need my license? How do I build a buyer's list? How do I email? What email system are you using? Eldrica, what do you use? All of the questions that you would even have right now about Eldritch bird dogging removes all of it. Because you start with the buyer, you only communicate with one buyer. You go deep on one buyer. So every time you get an opportunity, you send it to the buyer and that buyer says, yeah, I like that deal, but it needs to be lower. And you get educated by one buyer as you get started in the business. How many people would prefer to go that route in the very beginning, at least, like your first step? Do we understand the difference between what Eldrica is doing, which is disposition wholesaling, and bird docking? It is a different approach.

Okay.

It's basically like tennis and pickleball are really similar, right? Like, we could. They have a net, they have a thing, they have a ball. Similar. It's not the same. It does make a difference for you to understand it this way. Okay, Pace, if I bird dog and I become a top tier tc because I love to do paperwork and help people. Yes, of course. I have a lot of people that start out bird dogging and become top tier TCs. Okay. A bird dog is the simplest way to get started in real estate because you're only focusing on one buyer. You go, all right, I don't want to be confused with email systems, and I don't want to be worried about what deal this is and whether it's a deal or not. I don't want to be stressed out by 50 people on this side and 50 people on this side. Gosh dang it. I haven't even done a deal yet and I'm building CRMs and email system, dude, like what you're doing, Eldrica, if you're not doing a couple of deals a month, what you're doing right now as a disposition. Disposition wholesaler is very stressful for somebody that's brand, brand, brand, brand new. Okay, okay, so let's talk about what a bird dog deal does.

Okay.

Why can't a bird dog deal work with multiple buyers? Because then they would cease to be a buy a bird dog. Why can't a monogamous man Be married to more than one woman because it's a complete violation to the relationship that you set up. The relationship I set up is an intentional. I go. I want to keep it simple. I want to work with one buyer because I want to guarantee I can get a deal.

Okay.

The reason for that. Okay, the reason for this. A really great question. Elizabeth M. Ela, thank you for being an example for us today. That was super helpful, guys. Give Eldrica a little bit of love in the side chat, please, if you don't mind. That was really helpful and obviously not planned, which is awesome. Elizabeth M. How you doing? How can I help you today? Elizabeth M. You had made a good comment in the side chat. Unmute yourself. It takes a couple of seconds. Guys, sorry about this.

Oh, hi. Sorry. I'm sitting here with my 6 year old.

I love it. Great. You have a great question in the side chat. I just want to highlight. Why can't a bird dog have more than one buyer? I. I assume you did not show up to yesterday's training, correct?

No, no, I'm stay at home, mom. I'm with my son.

Okay.

So no, we couldn't make it. No problem. I get. I just want to make sure I don't need to give you the 45 minute explanation. I can give you the two minute explanation is all I'm trying to give.

Me the two minute explanation. I have a real estate background, but I missed what you said.

Okay, so the reason why a bird dog has been invented is because after all these years of watching thousands and thousands of thousands of people watching, watching my trainings, reading my books and like having massive success, right? I have 20,000 people. I've help helped quit their jobs. 20,000 people have helped quit their jobs. 20,001 people. I have hundreds of thousands of people that watch my YouTube content. Literally. I. I think my YouTube channel get like 5 million views this month. 6 million views this month. That's pretty cool. So why are those people not doing deals? Because they need a more simple approach. They might be a personality that's like, I need it simple, I need it distilled. I need to have less confusion. Can you just tell me the most basic way to get into business? Absolutely. It's called bird dogging and it removes all of the craziness of everything Eldrick is going through.

Okay.

Did you ex. Did you hear all the crazy stuff that Eldrick is going through? Yes. Cool. Do you want to do that when you first start? No. Then you should start with bird dogging and what you're now asking him is like, well, why do you call it bird dogging? Why can't a bird dog work with multiple buyers? Because you asked me to remove all the confusion. You want a strategy that removes all the confusion. And you only have one person. So you have a son, right?

Yes.

How old's your son? Six. Okay. At some point, is your son going to start dating? Yes. Okay. Should Your son Date 15 girls at the same exact time? No. Why not?

Because he's going to be committed to one.

Oh, so you just answered the question for me.

Yes.

Isn't if, isn't life easier if I just commit to one? I can go deeper into that relationship. I can learn more about that person. I can serve that person a lot better if I just commit to that one person. By the way, for my first deal you missed yesterday. I did not say as a bird dog, you only have one buyer. You start with one buyer until you get your first deal.

Got you. That's what I was wondering about because it's only until you get your first deal. Because I have a background in real estate and real estate marketing and I know a lot of different people, but I've been stay at home mom and homeschooler. So as I get back into it and I teach my son, I wanted to see if I could work with multiple buyers. If I have a deal that doesn't fit one buyer's buy box, I could work with multiple. Eventually.

Eventually, yes. And so, like a couple of stories I'll tell you today here shortly. I told everybody, I go, if you're going to bird dog for me, I'm the only person you're bird dogging for because I don't want you confusing yourself. I want you to learn through the process. The purpose of being a bird dog is to simplify the process of getting into the business right out of the gate. It does not require you to cold call, negotiate, go and worry about paperwork. It doesn't require you to do lead management, follow up CRMs. In fact, I've got a great question in the side chat by Paul Patricola. Paul, this lunatic who obviously either showed up late or is just teasing me. And he could be just very well teasing me. Paul Patricola, come up here on the side. Let's come on on, on the stage. Let's chat for a second.

Paul. Hey, Pace.

So Paul has a great question in the side chat. What's up, Paul? Paul says, pace, do you think Deal sauce is a great software for me to be a bird dog? Nowhere in Deal Sauce can you go get a property that's already under contract? You're pulling lists of sellers and pulling lists of real estate agents. None of those properties are under contract. That would be great software for who? Wholesalers. There you go. So it would actually be a horrible software for a bird dog because a bird dog should not need any software. Literally. I will never push you to get software as a bird dog, ever. When you say it that way, that makes sense. Yes, again, as a bird dog, you are my friends. So, Elizabeth, you're, you're still unmuted. I believe a bird dog is the simplest way to get in the business. You're not cold calling. You're not finding foreclosures. You're not door knocking, you're not sending out mailers. You're not negotiating. You're not doing any of the challenging things that is required to be a wholesaler, a fix and flipper, a developer. Any of those things. You're not buying and holding. You're literally just finding deals that are already under contract for buyers like me. So I will explain this to you in a couple of stories, especially for the people that maybe have been missed yesterday's training me. Okay, so Paul, thank you for the question. Guys, please write that down. Bird dog should never go get software. You should not have software if you have not done a deal. If you've not done a deal and you want to go be a wholesaler, then get software. If you want to go be a buy and holder, get software if you want. If you're like, man, I've tried everything else and I just need something really simple, something that's like almost foolproof. Bird dogging literally costs no money. There's no software, there's no CRM. There's nothing to spend money on. Zero, zilch, nada. Okay, Derek says, do you have multiple bird dogs sending you deals at the same time? Derek, let me ask you a question, my friend. What do you think the answer is? Derek, maybe that got misread. So you had mentioned you have multiple people bird dogging for you. Are these multiple bird dogs in the same area? How do you prevent these bird dogs from sending the same deal to you? Oh, you don't? Sometimes that does happen and the, and the way that happens. So I probably have, in one specific area, I probably have 50 bird dogs looking for deals for me. And let's say those 50 bird dogs and I'll go through some metrics with you guys here, so, so you guys can understand the, the numbers that are behind all of this. This, like, how many times do I need to do this? What's the average amount of money I can make? All of that kind of stuff. If I have 50 bird dogs bird dogging for me, I'd say that all of them are going to send me an average of probably 10 deals a month. So that's 500. And out of those 500, I would say that probably a hundred of them are duplicates. So 80% of the time, they're not duplicated. They're not sending me more than one address because they're talking to different wholesalers. Believe it or not. You guys have no freaking clue, but there's 500,000 wholesalers in this country. 500,000. We have 2,000 people on here right now, and probably 500 people will take action from it. You literally all could go and get a thousand wholesalers and never see the same deal.

Okay?

There are way more deals than you can comprehend in this business. It's bonkers. Is there overlap? Yes. How do I address that? That. In fact, I'll give you one of the. One of the stories today. I'll tell you the answer of this. Maddie, the homeless lady who just did a deal with me, like May 27th or something. Yeah, May 27th. So it's probably five, six weeks ago. She got her first contract. She sent me an address that was also sent to me three other times the same day. But guess who sent me the address first. Maddie. She literally sent it first. So the way I handle that is I always tell bird dogs, I will show you the timestamp. If you send me a deal that somebody else send me first, first come, first serve, I will literally give precedence over the person that sent it to me first. Does that make sense? Yeah, absolutely. So that's something that you would include in the conversation during the interview process. Like what you had discussed yesterday's training. Yes, sir.

Copy that.

Thank you. Really great question. Thank you for that. Really, really good question. Okay, so let's go through a story so you guys can understand, like, the cadence and the technical side of it. I'm going to give you guys some good metrics, some KPIs. KPI means key performance indicator, which means how many times do I need to do this in order for me to get a deal? On average? And if I do this thing, what's the average amount of money that I can make on a deal? Okay, we'll go through that next. Does that sound good for everybody? Some people are like, I have to go to bed. By the way, is this a Good time for me to start these because we're always guessing, like, what's the best time to start? And 5pm My time is 8pm Eastern time. But if I do it early, then east west coast people are still at work. If I do it too late, people on the east coast are like, you know, people are like, that's perfect. I think most people are going to be like, it's perfect. So we're just going to keep the time. Okay, so let's go through a couple of stories. You guys can see the. The methodology, the how this all kind of plays out.

Okay?

All right, so let's talk about a deal that was done with me just recently.

Okay?

A girl named Kelly. I talked about this a little bit yesterday. I'll talk about it again today. So there's a seller. Here's the seller. Obviously, they have a house. This seller has a water damage that happens to their house. So what they do is this seller goes and calls one of my students, okay? I have a student named Doug who is a wholesaler. And Doug sends a lot of mail and a lot of marketing. He spends a lot of money to do his thing. Does like 12, 15 deals every single month.

Okay?

So Doug goes and gets this property under contract. Sorry, guys, I was using the wrong pen. So Doug goes and gets this property under contract, but Doug is spending a lot of money on marketing to get in front of a lot of these people. Okay, so the seller and Doug go get into a contract, right? This is called the A to B contract. I will give you a copy of these contracts today.

Okay?

Everybody today gets a copy of these contracts. This is the A to B contract. And then tomorrow, I'm actually going to explain and walk through how to fill out these contracts tomorrow.

Okay?

So Doug goes and meets with the seller in the living room. This is a property on Mahogany. Let me see if I can pull up the address so you guys can see. Let's see here. Mahogany. I don't know the address off the top of my head. I just know it's Mahogany. Nothing.

Okay, cool.

Sorry, guys. I got to dig this up and pull the address up from my team. This is a house I currently own because obviously, I bought the deal. But this is just how this thing all kind of works. Mahogany. Mahogany. Mahogany.

Gosh dang it.

Okay, 2994 East Mahogany Place in Chandler. 2994 East Mahogany in Chandler, Arizona. Let me give you guys the link in the side chat. You guys can go. Go pull it up on Redfin.

Okay?

There's the Redfin link right there. So this property, 2994 Mahogany, the seller goes through pain, right? This is how we get deals under contract. This is how I teach my students that are wholesalers. I teach them how to go find these opportunities. So Doug goes and spends money. Most wholesalers are spending money to go find these opportunities. This seller had a leak on the house. They got an insurance check. They didn't want to fix it, so they decided, let's just sell it to an investor and get rid of the house. Doug goes in, buys the house, gets it under contract.

Okay?

Doug got it under contract for 520.

Okay?

So his contract was 520. I have a student in my community who is a full time bird dog, okay? So his name is Matt. And Matt goes to all the other students that are out there looking for deals. And he networks and he's like, hey, anytime you get a deal under contract, please let me show it to my buyers. Now Matt does in quarter one of this year, Matt. And you guys will see a YouTube video coming out about Matt in the next couple of weeks. Actually, Matt is a 24 year old kid. He made $380,000 between January, February and March only doing bird dogging. Only in Arizona. I'm going to say that again. January, February and March of this year. Matt, who's 24 years old only as a bird dog, made $380,000 only in Phoenix, Arizona. Can we get a heck yeah in the side chat that this is like bird dogging is a gangster strategy.

Okay?

So I taught Matt how to go out and be a bird dog. And Matt has been doing this for a couple years. In fact, Matt just sent me. You guys want to see what Matt looks like? He just sent me a text message. He got freaking engaged, dude. Here, I'll. Let me show this to you. This is cool. I always love this kind of stuff. This is, this is just freaking awesome. Here's Matt.

Okay?

Matt justice just got engaged. I tell him every time I see him, I've bought, I don't know, 50 deals from him. And Matt, I tell him every time I see him and his girl, I'm like, bro, marry her right now. Dude, what are you doing? Okay, so there's Matt. So Matt goes and talks to Doug and says, hey, anytime you get a deal under contract, let me present it to my buyers.

Okay?

Now Matt obviously has more than one buyer. If Matt has more than one buyer, why is that? Didn't I say only have one buyer? As a bird dog, why does Matt have More than one buyer, my friends, because Matt has a lot of. Of deals. He has done a lot of deals. So he's not over here complaining that his life is confusing. He has done a lot of deals and so he deserves to have a lot of buyers. Do we all understand that he is not on his first deal, therefore it's okay for him to have more than one buyer? Cool. Awesome. Awesome, awesome, awesome. I love that people are getting this in the side chat. Thank you guys so much. This is awesome that you guys are getting it.

It. Okay.

Awesome. What Would. Would that not make him a dispo wholesaler? No. Dispo wholesaler. All they're doing is blasting out emails and hoping people respond. It's very different, okay? He's working with a handful of buyers and he's looking for deals specifically for those buyers.

Okay.

All right. So Matt gets. He says, hey, Doug, I think I can sell this deal for you.

Okay?

So Matt then sends this deal to a couple of his buyers. His buyers all say no. So no, no, no. And I have a girl on my team. She actually is here in Montana with me right now. We're running an event. Kelly Humbarger. So she's a transaction coordinator. Okay. She joined the portion of my community that does the transactions and the paperwork for the people like Matt and people like me. They do the paperwork for us so we can go out and find deals. They're called transaction coordinators. They make really good money. So Kelly comes to me, she goes, I want to get chunks of money and I want to find deals, but I don't really have a lot of time to learn how to be a wholesaler. What's the best thing for me to go be a bird dog? She goes, well, what do I do? And I go watch my training. So she went and watched the training. She goes, is it really that simple? I go, kelly, it is so freaking simple. You are going to want to over complicate it. And I can train you how to do it in 45 minutes, but you'll want me to train you in four days because you'll feel like you're missing information and you're not. It's really that simple. Find people. Now she's in the sub2 community, so it's very easy for her to just find people doing deals. But I said, find people in the sub2 community that are doing deals and just say, hey, I have a really great buyer. If anybody has contracts, please let me know. She goes, there's no way it's that easy. I go, it's truly that easy. Stop over complicating it. You're going to try and over complicate it. Okay, so let me pull up a picture of Kelly actually at the house in Mahogany. If I can do a little search. Why does this do this to me? This silly thing? My iPad sucks. I use it so much that I melt it. It's just like, please give me a break. Basically. Let's go, Chandler. Okay, so here's me and Kelly at the house.

Okay.

I'll pull it up. Just give me a second. This is me and Kelly at the house in Mahogany. This is after she got her first check for 10,000 bucks. What I did is I held a meet up here, and I let 60 people come to the house and meet me in the garage. And I drew this entire thing out on the garage wall. Okay, so here's how this works. Matt, who I just showed you, he gets a bunch of no's from his buyers. But Kelly, who just learned from me, she goes, so should I just tell people I want to see their deals? I go, yep. So she's going in the community and she's networking, and she runs into Matt. And Matt says, yeah, I have a bunch of deals. I have this one in Chandler. Does your buyer buy in Chandler? Kelly says, yeah, I do. My. My buyer will buy in Chandler. So what Kelly does is she then sends the address to my team. The person on my team that answers all these emails. Her name is Heidi. Heidi gets the email, and they try. This is what's funny. So Doug got the property under contract for 520. He sold it to Matt for 595. So Matt. I'm sorry, Doug on Mahogany made $75,000 roughly. He deserves to make $75,000 because he's the one that found the deal. He went and negotiated. He spent the money. So once you get into this business a little bit longer and you're ready to get going, you might want to learn how to be Doug. Because Doug makes bigger checks. Because Doug does more work, Doug provides more value.

Right?

So Matt sends this deal. He's trying to make like 60 grand on it. He sends it to Kelly. He says, I'll sell it to you guys for 640.

Okay?

So Kelly literally sends the address.

Okay.

The address of the property is. Again, pull it up. The address of the property. Wrong one. Gosh dang it. What happened? 2994 East Mahogany. So she literally sends the address to Kelly to Heidi, and she says, 2994 East Mahogany. They'll sell it to you for $640,000. That does not include my fee. Kelly is not saying I got it from Matt Justice. She's not saying where she got it from. She is literally just texting this. Some buyers want you to email it, but my team at the time was asking the text. Heidi then replied back and said it's not a deal for us unless we can buy it for 600 and then pay you a ten thousand dollar fee. So if you want, go and see if Matt or we didn't know who Matt was at the time. We, you never, you never know who the, the people involved in the transaction are until the transaction's over. But Heidi replies back to Kelly and says, see if you can ask your supplier if they'll sell it to you for 600. Matt replies back and says, yes, I'll sell it for 600. So here's what happens. Matt, he makes $5,000, bird dogging it to Kelly. Kelly brings it to us and she makes 10,000. Sometimes that's just how it works out. The person who found the deal originally, okay, he made $75,000. And then my team ended up buying it for $610,000 all in. And we currently have it listed for I think 9. 85, I think is our price. And after our renovation, I'll make like 75,000 bucks. Okay, so Kelly made $10,000. Did she have to cold call here? Let's do a little test in the side chat. Let's ask you some yes and no questions. Did she have to cold call the seller? Did she have to market to the seller? Did she have to comp the property? Did she have to do the follow up with the seller, negotiate low ball? Did she have to spend any money on marketing? Did she have to worry about what the price was? Did you have to go hire contractors, raise money, close the deal, go and fix and flip it, manage contractors, get a permit? Did you have to do any of those things that confuse and overwhelm people? Or did she literally just copy and paste an address and say, hey Heidi, I can get this property at 640, not including my, my fee for finding it. What would you buy it at? Did Kelly get coached on what price was the appropriate price? Yes or no? Okay, so you're telling me that if you save your buyer a bunch of time and you go provide some value, you can make 5, 10, $15,000 and in the process you can get coached. So here's the part that I got to tell you. So Kelly did not get a yes, immediately. She sent us one house, two house, three house, four house, five, six, seven, and eight. She got a no but on all of these. Okay, no but would be no, that's not a good price for us. But we would buy it at this price. So imagine being a bird dog. You didn't have to cold call. You didn't have to do any of those things. And then you're getting a buyer that's coaching you along going, hey, I like the house, I like the area, but the price is a little bit high, and here's why. Then after your buyer buys the property, you get to stop by the property and see what finishes they're doing and what grout they're doing and what landscape they're doing and how fast they're doing the project. Then you get to ask them the question of like, wait, hold on a second. I just got educated on where you got your money, how you manage your contractor. And I got paid for literally just copying and pasting stuff. Yes. There's been actually the homeless lady that got her first deal with me. There were three bird dogs involved in the same transaction. Okay, so how many people feel like bird do is like the thing that I need? I need to just focus on one buyer. I don't want a cold call. I don't have a lot of time. And honestly, I'm stressed out thinking about all the things I have to learn. I'd love to get paid to learn on the job. Okay, do we all understand why I gave you a 16,000 person buyers list? Do you understand why that's so valuable? Now that you understand, you start with one buyer in your local area.

Okay?

Now, it's 8 o' clock here in Montana, but tomorrow I'll probably call a couple of buyers for you and show you how to do this. I was planning on doing it today, but I had to catch a lot of people up. Okay, do we understand why me giving you a bunch of wholesalers, people like Matt or people like Doug? If I give you a lot of wholesalers in the country, why that provides a lot of value to you as well. Yes or no? Cool. Now, pretty simple, right? In fact, you will try and over complicate this. So let me explain that part to you as well. So I love doing meetups. I love meeting people in person. It's part of my personality. I just love people. I love helping people. I love talking about this business. I feel like every day that I've been in this business has been like a vacation for me. Being a contractor, which is what I was before I jumped into this business. So with Kelly, I text Kelly. I love her. She's one of my good friends now. We've done a bunch of deals together. I told Kelly, I said, hey, Kelly, let's do a meetup at Mahogany and let's invite a bunch of the sub two members, the people that are in our community, and let's show them how simple this transaction was. And let's break it all down on a whiteboard in person. And you can do some Q A because some people want to listen to me, because I can communicate it better than most and I can keep people entertained, but they're going to be like, oh, he's a. He's selling me on how to. How easy this is. And of course, Pace is going to say, it's easy. It'd be really nice if you were at this meetup with me. So she says, okay, great. By the way, this is like maybe March of this year, I think so a couple months ago. So here's the meetup. Does everybody see this nice black lady with dreads and she's got her phone on record? You guys all see this lady right here on the screen? Cool. So this girl, her name is D. Okay. By the way, how many people would like to go to a meetup like this where you actually go to the property that I bought? It's not just a YouTube video. You could actually go to the meetup. You could actually see how this all works.

Right.

I just think. I feel like it adds a lot of gravity to the situation.

Right.

So these are all sub two members. I can't this private to only sub two members. There's Jared Morrison. He just bought his third assisted living facility. All these guys are. A lot of these people are just crushing it. Cool. So my meetups, families are welcome, all that kind of stuff, which is cool. So D, who had just joined the community, like maybe a week or two before this, she, of course, this is at the meetup. She says, can I get a photo of you? Can I. Can we get a photo of. Of course. Then she starts asking me questions. So here's the photo of Daje. This leads into my next story.

Okay.

So this is Daje right here. So Dajay meets me for the first time at this property. Okay, this is back. Okay. It's February 8th. Sorry, I thought it was March. It's February 8th of this year, as you guys can see right here. So she meets me in person and she says, pace, there's no way it's this simple like what? What are we missing? I go, no, it's really that simple. I said, well, the problem is Kelly really stuck to my buy box. She didn't send me multi family deals. She didn't send me stuff. She sent me exactly what I was asking for. Every house was overpriced. That's not my problem. I don't care if the price is. It's overpriced. I'll coach you and tell you here's the price I'll pay. But I don't want you sending me stuff in, you know, Tuscaloosa, Alabama. When I'm not buying in Tuscaloosa, Alabama. I we have members in sub 2 that are buying there, but I'm not buying there. I can't buy everywhere. I can't fix and flip houses everywhere. That's not a sound business model. I only buy where my crews are located, right? So I tell her, go and talk to Kelly. So she goes and talks to Kelly who obviously is in the sub2 community. And you can see Kelly in this photo getting swarmed by everybody going, there's no way it's this easy, Kelly. Is it really that easy? And she goes, no, no, it really is. Let me help you guys. So Daje. She goes, okay, I think I can do this. So how many houses did it take for Kelly to get her first bird dog deal with me? How many houses? Okay, took her eight. Okay, we talked about this. I'm just testing your memory. If you can remember, I wrote it right down here. Some of you people smoking weed or whatever you're doing are saying 10 in the side chat, you lunatics. Okay, now for D D, same thing. She goes inside the sub 2 community. She finds a wholesaler. That wholesaler sends her multiple deals. Okay, this is Daje. Daje. It took her six houses. Took her six houses for me to give her a yes. I gave her five. No buts. No, that's. I say yes, I like the price, but no, because it or sorry, yes, the house is great, but we're not buying it because the price is over overdone. So Daje goes and does her first deal. And that first deal was on. We're about to list that property. We're about to. We're about to finish. I think the house is done. Daj. Daje, are you in here today? Give me a yes if you're in the side chat. Oh, Daje is here. Awesome.

Cool.

That's cool. Thank you. Daj, I didn't know you were going to be in here today. She is a sub 2 member. So, of course, this is not a training only for sub 2 members. This is a training primarily for other people. Daj, what up, homie? How you doing? I can't hear you.

You can't hear me?

There you are. I can hear you now.

Oh, okay.

Okay. So, D, when you first met Kelly and you met me at the house in Mahogany where you're like, there's no way it's as simple.

Yeah, I definitely said that a few times.

Then you copied and pasted how many houses before you got a deal to my team?

Six houses. Yes.

Okay, six houses. You. How fast did we close you. We said yes to the deal. How fast did you get a check?

In a week.

Okay, so everybody's gonna ask, how fast can this be done? It can be done in a week. Now can I tell you guys what D did wrong? So this is what Daj did wrong. Immediately she gets this deal. She gets her check. She's like, holy crap, I just got my first deal. You know what she started doing? She started going and trying becoming a wholesaler right out of the gate. And all of a sudden, she. And then what did you do? I got to go back to basics.

Yep. When I saw you for when you was training Maddie.

Yeah.

I was like. I was like, pace, Like, I don't know, maybe. I thought I told you. I said, hey, Pace. I thought I needed to do more.

Yeah.

But it was really simple. I think you went and did a couple more deals right after that, right?

Yeah, I did. I. I'm on. I just finished up my third deal. So, yeah.

Boom. Freaking amazing. Just in a couple of months. That's awesome. And, Daje, how much real estate experience did you have before you joined the sub2 community?

None.

And what do you do? What were you doing? What are you doing for a job? You're a truck driver, right?

Yes. And shout out to all the truckers.

That's right, Those mother truckers. Dajay, you come from a family. I think you take care of your siblings. Is that correct?

Yeah. I grew up with a single mom, and I have younger siblings. She eventually got married, but since I was the oldest, because my mom had me as a teenager, I had to watch my siblings a lot.

Love it. And so you don't have a lot of extra time, Correct?

No.

Okay, awesome. So, guys, give Daje some freaking love. By the way, she did get derailed. This is what happens with a lot of people who do Bird Dog. It's so simple that they get their first check and they go, let me over complicate it. And they went. She went over complicated. Correct?

Yes.

Then you went back to basics and you went back and you did a couple of deals. You just wrapped up your third one.

Yeah. Take Pace's advice. Stick to the. He told me that I broke the rules. That I broke a rule. He told me he took my name and he said I. I dodged.

Yeah. It was like we were in a. We were in a room training Maddie, our homeless friend, and Daje. I told Everybody in the sub 2 community, I go, hey, if you guys want to hang out, I'm going to train Daje in the office. Daje came in. I was like, Daje started dajing all of her responsibility on bird dogging. She's dodged the strategy and she tried to overcomplicate. And then you were like, lowered your head. You're like, oh, my gosh, you're so right.

Yeah, I remember that. I sat in the back and you were like, get up here.

Yeah.

I picked on you. I'm. Because I'm a good. I'm a good big brother and I will love on you and give you a little nudge, a little bit to get you back on track.

Yeah. But you giving me that advice allowed me to go back and be like, hey, there's nothing wrong with keeping it simp. Keeping it simple for a little bit longer. And like, you told me, don't throw out. You gave me an analogy of, like, Dairy Queen, and you said, don't throw out the ice cream.