In this episode, we’re getting even more awesome info from wholesaler, Tom Krol. (Alex Joungblood also jumps in, yay!) Tom is so knowledgeable that we had to break up his session into 2 podcasts. I thought Part 1 was loaded with goods… well, in Part 2, Tom spills tons of super helpful REI tips that we can use in own business – including the 5 different ways a seller call should end.
Look, in this non-stop REI industry, you are inundated every day with calls, contracts, paperwork, postings ads, generating leads… on and on… and you know what? It can be exhausting and may cause you to burn out. I know loads of investors who have felt frustrated because of that. Tom’s genius solution – outsource.
You’ve gotta automate your business and use Virtual Assistants so you can focus on the deals and keep the profits coming in. Tom gives us the questions to ask ourselves so we can break free from the time-consuming tasks and pass them on to a VA. He also tells us how he finds VAs and what exactly he outsources to them that’s had a huge impact on his wholesaling business – all you have to do is listen and follow his advice.
And, as in our previous podcast episode with Tom, we have two more freebies. Who doesn’t love free, right?! These goodies will definitely help your REI business. You’ve gotta listen to get the goods…
Listen and enjoy:
- 08:29 – Why you need to let go of some of the day-to-day operations tasks
- 12:20 – Why database systems may be hurting instead of helping and what to do about it
- 15:06 – The difference between branded and non-branded outgoing marketing messages
- 18:00 – Why you may not even have to open your database system again, thanks to your VA
- 23:45 – How to properly use a mobile notary
- 27:58 – 5 different ways a seller call should end
- 28:48 – How your VA can send a time-sensitive written offer letter on your behalf
- 34:45 – How to use What’s App to interact with your VA
- 38:07 – Why I’m so frickin’ excited to get awesome info from Tom
- 42:38 – All the steps your VA can do once the contract is signed
- 46:16 – My quick and easy way to come up with the offer price
- 50:42 – Why Tom doesn’t put sellers in an automated email series
- 55:43 – How your VA can prioritize for you and keep you on track
- 57:54 – One of the tasks that Tom chooses to do instead of his VA
- 60:23 – Why Tom is looking at Subject 2s
Mentioned in this episode:
- Genius Fax
- Mail Chimp
- Click to Mail
- O Desk
- Real Quest Express
- 1 2 3 Notary
- High Rise
- Freedom Soft
Joe McCall: Welcome. This is the real estate investing mastery podcast.Hey everybody, Joe McCall here. You’re in for a special treat with this podcast. I just wanted to do a quick little introduction here so … I want to make sure that you understand exactly what we’re offering here. In this podcast itself we’re offering two really cool free bonuses that you could get if you go to the show notes, realestateinvestingmastery.com. Click on the link that’s going to be in the show notes there and you can get this stuff. One of them is a video that I just created on how you can have your virtual assistant in the Philippines, or even just you yourself if you want, but you can have your virtual assistant in the Philippines send letters for you through Google Docs using click to mail, or through click to mail using Google docs. Does that make sense?
It’s a really cool video I did on how to create, with Google docs, the spreadsheet and the document … How to create the merge fields and then how you can have your virtual assistant, from the Philippines or Brazil, wherever, send these letters for you through click to mail. It’s pretty amazing. It’s something that Google Docs just came out with. It’s called an add-on. It’s really really cool. For years I’ve been trying to figure out how can I get my VA’s to send letter for me. This is something that now allows you to do it, it’s really cool. We talk about in this podcast how every seller should get a letter, a follow up contract, or something. You should make an offer on every house that you get, every lead that comes in. In the podcast we talked about that and how Tom and I do it. In the podcast I promised that we could create a special bonus video that you could get.
The other cool thing is, my assistant Becky has created a checklist for this podcast. Tom covered some really really good points in here. This is going to be one of the best podcasts that we’ve ever done. I am excited about it. My assistant Becky has put together a checklist, step by step, of what we talked about in this podcast. That’s just a simple PDF probably one page long, maybe two max. That will be available for you to download and view as well. You’ll get what I mean, how cool this really is, once you start listening to it. Enjoy the podcast. Check out these free bonuses. Go to our website, realestateinvestingmastery.com. Look at the show notes and you will see that stuff in there. Okay? Thanks.
Joe McCall: Hey everybody, welcome back. This is the real estate investing mastery podcast and we’re here with part 2 with Tom. I’m excited about this because we’re going to dive more deeply into how he uses virtual assistants and how he set up his business. He’s doing a lot of deals and what Tom has done is he has dialed in to what his strengths are and what he’s weak at. I think this is so …
Tom Krol: Novel Idea.
Joe McCall: Really novel. Alex, how are you doing?
Alex: I’m doing good.
Joe McCall: People go to realestateinvestingmastery.com, what can they get?
Alex: They can get some free stuff. In fact it would be called our fast cash survival kit where we do go through using a lot of virtual assistants and understanding how to automate the business, and understanding the business in general. If you’re brand new and you know nothing about what we’re talking about, you go there. We’ll give you our crash course and break it down on how we go about making this business work and how everything falls into place. Getting a contract, securing your equitable interest in that property, and then being able to sell your equitable interest in that property for some decent numbers. Really being able to say goodbye to your job because if you could just do one a month and make $10,000 a pop, you’ve then really replaced your income with a dream job that people wished they had. Even if it was only $5,000 a month you still could replace your income and really ramp it up from there. It all starts with understanding the game and you can do that at realestateinvestingmastery.com, checking out our fast cash survival kit, and getting going. It is free and we will give you your money back if you don’t like it.
Joe McCall: That’s right. We will if you ask nicely. We’ve also got some really good podcast reviews that I want to read here. Burnt Tater Tot says, “great podcast. 5 stars. I love this podcast. Joe and Alex are very genuine and I appreciate you. They lay out everything in an easy way to understand. Thanks for the podcast guys”. Misha says, “Freaking best podcast ever. 5 stars”. All caps, I love this. “Joe and Alex you guys rock. I can’t believe you don’t charge big bucks for all of this content. You guys are like the good Samaritans of real estate investing. Keep making it rain guys. Thank you and God bless.” Roy says, “Great podcast. When are you guys going to do another one?” This is a review. I love it. That was way back when we were not releasing them regularly. We are releasing them more regularly now as you’ve probably noticed. We just released, before this one, part 1 with Tom Krol. Listen guys, if you like this show please leave us a review on iTunes. Let us know. Let us know that you like it. I jokingly say if you start leaving us reviews we wont have to buy any reviews on fiver. Just kidding, we don’t do that. Please leave us a review in iTunes, we appreciate it.
Now Tom, Tom, Tom, Tom, that last podcast we did was so good. We gave away a lot of good freebie information too to people. If anybody is interested in going to check that out you’ve got to go check out the last interview we just did with Tom and talk about the marketing that works. In the show notes we actually gave away the post card and the yellow letter that Tom is using, and his secret list source, the place where he’s getting his leads from. You have to go to the show notes. I think I’m also going to have a coupon code. Don’t quote me on that. I have one that used to work. I want to talk to Michael at yellowletters.com to see if it would still let me use that coupon code. Anyway, Tom, how are you doing man?
Tom Krol: Come on, come on. Open light. My call fire calls are coming in, boom, boom, boom, boom, boom. 13 this morning. I love it.
Joe McCall: So we need to hurry up. We need to hurry up. Tom I was in San Francisco when we talked. Those of you that know I just got back from an epic, and awesome, 10-week RV trip around the country. We took an RV trip, went to about 11 different national parks, 15 different states … Whatever it was. Took an Alaskan cruise. We were in San Francisco and Tom called me. “Hey man how you doing?”, he was all excited. I’m doing awesome. How can you not get … It’s infectious, his enthusiasm. One of the things I talked about, I think in the past Tom, was looking at your entire list of all the things you have to do and asking yourself, how can I do none of this? How can I get someone else to do it all for me? I’ve talked about that a lot. Developing the systems where you can get the work done for you, in spite of you. You’ve wholesaled over 200 deals in the last 2 years. You’re just crushing it. You were telling me, Tom, that you really took an inventory of where your bottlenecks are, right? Can you talk a little bit about that? Can we talk about your journey on finding out what you’re good at, what you’re not good at, and some of the changes you made.
Tom Krol: That’s exactly what it came down to. I really … I’m doing a lot of deals and the money is great, but I was really bogged down. I don’t want to say I was starting to get burnt out but the problem was I am really really good at locking up a property when I get in front of a motivated seller, but I’m handling everything that happens before that and everything that happens after that from the marketing, to selling the property to cash buyers and agents with cash buyers … That part got a little frustrating. I got this idea, actually, from talking to you, Joe, a while back. You were the one who told me about what you do, is you write down everything you do on a daily basis and then you look at that and you say what can I automate and what can be outsourced? I think that is awesome. I wanted to do some of that myself. I’ve gone through some VAs. It never really worked out. I really just realized it was my fault. I wasn’t really asking the right questions and outsourcing the right activities.
Joe McCall: Nice. So talk about that. Did you do an inventory where you went, this is what I’m good at? Obviously it is meeting with sellers. You told me 8 out of 10, if you can get them at a kitchen table, build a rapport, you’re doing phenomenally well right?
Tom Krol: Yeah. It came down to what am I good at. A lot of time the question is … What can I outsource? Really it’s how do I use the highest and best use of my time? When you do that and you take that inventory you really have to know … This is where the business gets very personal and can serve you. You really have to know what you’re good at and what you’re not good at, and what you don’t enjoy, and all those sorts of questions. You have to have really an honest conversation with yourself. I’ll give you a perfect example. One thing for me is I am not an organized person. I don’t like taking notes. If I do take a note I’ll lose it. This became apparent with High Rise. The database I use is High Rise. What I do there is I would have to set time aside in my day to say, okay I have these calls coming in. How do I make these calls?
I always say … You don’t do this. You make a call when you’re sitting in the care and put it on a piece of paper. The paper falls in between the seat and now you just lost a deal. I was very strict about having a certain number of hours a day where I was working from my home office and I was calling back voice mails of motivated sellers. The problem with that system is that it tied me to my desk. There was a delay. If a seller called in I felt like I should wait to make my phone calls until I was back at my desk. That was just one small example of how I really wasn’t free from my business for that exact reason.
Joe McCall: So obviously you’re good at building rapport and talking to sellers, right?
Tom Krol: I think so, yeah. I know there’s a lot of different aspects to this business but when I get in front of the right seller … I always say this, you have to be a deal finder not a deal creator. I think if anyone is in front of the right seller … Something that Todd and I always say is you really can’t mess up a motivated seller lead. If you’re there in person you can usually get the deal. It’s not like I’m any kind of a great sales person, but I would say it’s the part that I enjoy. Because I enjoy it, I am most effective at that rather than putting data into a database.
Joe McCall: Right. Now a database is supposed to make your job easier, right?
Tom Krol: Right.
Joe McCall: It wasn’t for you.
Tom Krol: Not at all. Not at all. As a matter of fact, my argument as the house buyer and the company, I don’t care what database you use you really shouldn’t be using it. The database should be providing you with the next thing that you have to do. I really took a close look at that and I said how can I automate a system? It started with that small seed and now I’m happy to tell you that there’s so much of my business that is automated. You asked me a question on the last podcast that we did, about which service I was using for a texting app. I didn’t even really know which one it was because I don’t do that. That’s incredible because that would have never happened a few months ago.
Joe McCall: That is so key what you just said. A database, whether you are using Podio or High Rise or FreedomSoft, whatever … A database should only be providing you with the next thing that you have to do. I think that is fantastic. Maybe expand on that a little bit more Tom, would you? What does that look like for you?
Tom Krol: Sure. So here’s the way … This is just one example. What I’ve really done, Joe, is I’ve taken my VA … Before when I was trying to hire VAs I would have conversations with people. I would sit there and I would say, what can a VA do because if I’m going to hire somebody what are the list of things that I can think of that they can do so I can fill their time. It was almost like an obligation for me to invent different things for them to do so that I could keep them busy. That is not a good strategy. This is just one example. This is what my day looks like today, with turning my VA into what I say is a PA, which is a personal assistant. This is somebody who is really helping me throughout my day.
We started with the premise that the database should be allowing me to have the highest and best use of my time. That is not entering data into a database. I am not good at that. It’s not my cup of tea. What I did is said let’s come up with a system where I can be most effective, even if I’m not in front of my database. That started with the tasks. For instance, someone calls in, they leave a voice mail, they need a phone call back, there is a task scheduled. The first step is that my assistant now takes the phone call in, not the phone call … What she does is she takes the voice mail. She will enter the voice mail and all the data from the voice mail directly into my database.
Joe McCall: Let me clarify something too here. If a lead comes in you are only calling back the people who leave a voice mail, right?
Tom Krol: I personally don’t call back anyone who doesn’t leave a voice mail, correct.
Joe McCall: Okay. Is your outgoing message just short and sweet or is it a prerecorded message?
Tom Krol: I actually have about 12 lines, marketing lines. Some of them are what I call branded. They’re branded and there’s a long voice mail about PSL home buyers. Others are more personal. They’re unbranded, or Tom the local friendly investor. Those are, hey this is Tom leave me a message. Short and sweet. Or it will say something like, Hey this is Tom. If you’re calling about a house you are selling I am looking for a house. Please give me your name, your phone number, and the address of the property you would like to purchase.
Joe McCall: You mix it up. You are always testing different things, right?
Tom Krol: I’m constantly testing and measuring different voice mails. I also have a small list of sellers in my territory, so I will circulate them through a sequence of different mail pieces with different voice mails.
Joe McCall: Awesome.
Tom Krol: So typically what happens is the voice mail comes in. My assistant, my VA who lives in the Philippines who works my hours, will immediately put that into High Rise. She will then schedule a task to happen immediately if this person left a voice mail. She will take that information and she will send me … I have a specific email address that is hooked up directly to my iPhone, that is called tasks. Well it has an email address specifically for tasks for me. It will be a task for right now to call this person and take the phone call. So now instead of having to wait until I’m sitting at my desk, I can be on the road going to see a motivated seller and I can take a phone call immediately.
Joe McCall: You were telling me too that she’s only sending you a certain number of tasks at a time, is that right?
Tom Krol: Absolutely. The other problem is, what we found when we first tested this system, if I just said to you okay Joe, here are your 80 tasks for today, you may get to them you may not. What happens is we keep a cue of 3. She’ll send me my first 3 tasks when she starts in the morning, and as I go through tasks there’s constantly 3 tasks that I have to do. If I go through a task she’ll send another, and she’ll send another. At the end of the day I wrap up the 3 last tasks and they stop coming in.
Joe McCall: I love that.
Tom Krol: Yeah, I love it.
Joe McCall: You’re only looking at the next thing you have to do. You’re not completely overwhelmed with this huge list of all these sellers you’ve got to call and all the stuff you’ve got to do, right?
Tom Krol: Absolutely. I’ve really made her … I don’t want to say made her. I’ve had a conversation with Lorena about how do we prioritize those. For instance, if 10 voice mails come in who should be called back first? She’ll know that we always ask typically for 3 pieces of information. If someone leaves 3 pieces of information, the name, the phone number, and the address, and the other person only leaves 2 pieces of information without the address … The person with all 3 pieces of information will have higher priority.
Joe McCall: Okay so she’ll create a task … So if you went into High Rise you would see all 80 of your tasks, right?
Tom Krol: I would but I literally have not opened High Rise for over 2 months.
Joe McCall: Guys you can see why I’m so excited about interviewing Tom for this podcast. You’re not even looking at High Rise anymore. It’s not because High Rise is a bad database, although I would say that Podio is better in my opinion. One of these days I will convince you to convert like I have to your brother.
Tom Krol: I know. He tells me about it all the time. He loves it. I know it’s a more powerful … I know Podio is more powerful, and I also know I think the guys at 37 singles have stopped supporting High Rise and they’ve moved on the Base Camp. That makes me a little bit nervous.
Joe McCall: Still, what you’re saying applies to both. It doesn’t matter. If you’re using tablets, stone tablets, with carrier pigeons it doesn’t matter.
Tom Krol: The bottom line is you are not a data entry employee. If you’re the house buyer you shouldn’t be the data entry person. This is applicable to all sales people in all industries. Sales people are notoriously not very well organized. When they’re in front of the prospect they are very good. They’re not good at reports and all that other stuff. This kind of answers that question. I don’t really care what is in the background. To me, I just want to know who do I need to speak to next.
Joe McCall: Okay, so you’re VA listens to the voice mail. She puts the information into High Rise so she’s tracking the stuff in High Rise, right?
Tom Krol: Yes. Everything gets tracked in High Rise.
Joe McCall: Does she pull up any property information on the property or look up any kind of property records?
Tom Krol: So this is the next part of the deal. She will send me … She’ll create the task and now she’ll send me the task. When I get the email it goes to a specific email address that I keep open all day. It’s the only email address that I keep open. My phone will buzz and it will say I have a task. That email will contain the person’s address, their name, all the telephones that they left to call on either the number they called in at and the number they left to call back to … It will also contain the voice mail if I want to listen to it, which I usually do not. It will also contain the information from the websites that I need in order to properly comp the property just on a basic comp of where I approximately need to be. So she’ll me the information that I need so I know, okay this home I should pay approximately $100,000 for. It kind of just gives me a few basics of the property.
Joe McCall: All right. Now where do you get that information? I’m curious.
Tom Krol: For me it comes from different places depending on the county. Sometimes it comes from MLS. Sometimes it comes from Zillow. Sometimes it comes directly from the county website, the property appraiser page.
Joe McCall: Okay.
Tom Krol: We’re very fortunate in one county where we work. If we can buy properties at a very certain percentage of the appraisal number, then we know it’s a deal.
Joe McCall: I would recommend people listening to that, that’s really really important. I am a big fan of real quest express, believe it or not.
Tom Krol: Okay.
Joe McCall: I normally don’t like the big daddy companies, like we talked a little bit about in the last episode. They’re really good. What they can do is they can give you all the detailed property information on a 2 or 3 page report. You can get it by county. I actually have an account for the nation, the whole country. It’s $150 a month for the whole country. If you pick just one country it would be like $40 or $50 a month. What your VA could do then, is put in the address, get all the mortgage information, last sale date, tax records and stuff like that … They give you their estimate of value. I’ve found it’s better than Zillow. It’s still not perfect but better than Zillow. There’s also a report that you can get of comps, of solds. This is where the most value of it comes in from. It will show you all the properties within the last 6 months, within 15% of the square footage that are the same type of home. If it’s a house … whatever it is. If it’s within a half mile you can set up this criteria so all your VA has to do … They don’t have to think about it. They just click a button, it brings up all the comps, and they print a report. It doesn’t force your VA to think about anything.
The other thing I’d recommend that you consider, Tom, is have your VA send you the 3 lowest actives in the neighborhood. You can get that from Zillow.
Tom Krol: I love that.
Joe McCall: Or Red fin. Many times when I’m talking to a seller, I really look at the actives pretty closely. I can tell that seller, look, I know you want 70 for your house but I can buy these 3 homes within a half mile for 50. Why would I want to buy yours?
Tom Krol: I love that.
Joe McCall: It helps them see what their competition is. Anyway, now you have … Excuse me, your VA listens to the voice mail, transcribes it, gives you the information, sends it to a specific email that you have … You know when you get that email that it’s a new lead.
Tom Krol: Exactly.
Joe McCall: Okay it has information about the property, then what do you do? You call the seller?
Tom Krol: Okay so at that point I take a quick look at the email. I make a phone call. I am very very strict about my phone calls. Every single phone call with the seller can only end in 1 of 5 ways. It is either that it’s a motivated seller, which means that there’s distress with the timeline. In that case, if they’re local, I’ll go and meet with them and book an appointment immediately. I’ll tell you how we do that in a second here. That’s the first scenario. If they’re remote, Lorena will automatically send them … She’ll set up a purchase agreement based on what we agreed upon. She’ll use a mobile notary to get that contract signed ASAP.
Joe McCall: Okay, whoa, whoa, whoa.
Tom Krol: Okay.
Joe McCall: That’s awesome. Okay so if they’re motivated they go into the motivated bucket category and you’re going to set up an appointment to meet with them as soon as possible, right?
Tom Krol: Absolutely. I’ll try to get there that day.
Joe McCall: Okay, that day. Then if they’re father away you’re still going to negotiate a price over the phone, but you’re going to send in a contract via … with a local notary, right?
Tom Krol: I use 123 mobile notary, or 123 notary I think it’s called. What we’ll do is if we can agree on a price and get the deal under … Sometimes that is some back and forth. Once we do that we very quickly will send a mobile notary with the purchase agreement and have them sign the purchase agreement.
Joe McCall: Okay, I know the answer to why you do this but you tell me. Why do you do that? Why don’t you just email it to them? Why do you have a notary go to their house and do it?
Tom Krol: Sure, great question. My seller’s brother-in-law is a real estate expert and will pay them cash on the spot, more than what I’m willing to give them, when he sees the contract on the dining room table. That’s the number one reason I do it. The second reason I do it is it’s more efficient. The problem I find is I don’t want to wait on the seller’s timeline. I can’t tell you how many deals I didn’t get because of that. With a mobile notary somebody comes over, a professional, they don’t even really read the contract they just sign it. We get it the same day.
Joe McCall: They can’t even really ask the notary or negotiate with the notary, right?
Tom Krol: Absolutely. Absolutely.
Joe McCall: So you give the seller the two options, right? Can I have my notary come by today at 5 or 8?
Tom Krol: Yeah. Essentially what we do is … I usually just say, well, I have a mobile notary in town and I can be there at 3:00, whatever.
Joe McCall: Let me ask you just a philosophical question then, when you’re making these offers do you … What’s your philosophy on … You just get it under contract, right? Even if it’s marginal you still want to get it under contract because the chances of you being able to negotiate a lower price are going to be higher once it’s under contract. Does that make sense?
Tom Krol: Joe, I’m so glad that you asked me that because I cannot tell you how many people get stuck on valuations. Here’s the bottom line, if you send an appraiser, a professionally trained certified licensed appraiser … If you find 5 of those guys and you send them to the same house every single one is going to come back with a different number. If the person’s motivated, that’s all I really care about. As long as there’s equity in the price that I’m offering based on what they owe, I just want to get that house under contract. That’s all I care about. I don’t care about the house. I don’t really care about the price. I will know instantaneously when I send that email to my cash buyers, or I start texting my buyers about that property, if my price is wrong or right.
I don’t use this as a tactic to give people haircuts at the last minute, but if I need to readjust my number I readjust my number. I don’t allow valuations to stand in my way. We just crush them. They come up and we just get the house under contract. If it’s wrong, we renegotiate. If it’s right we do the deal.
Joe McCall: Get it under contract.
Tom Krol: Absolutely.
Joe McCall: Get it under contract while you have them on the phone.
Tom Krol: Absolutely.
Joe McCall: Let me take a guess, when you’re talking to a seller you don’t tell them … All right well let me look at some comps and sharpen my pencil and call you back tomorrow with an offer or something, right?
Tom Krol: I try not to do that. Sometimes the person is not emotionally ready so we’re getting married and sometimes that takes 1 or 2 calls. If I can lock it up on the first call, I will.
Joe McCall: All right.
Tom Krol: Basically there’s 5 different ways a call can end. That would be the first way. What I want to stress is all of this is automated. This is what makes my life so much easier. All of these processes happen without my interaction. They all happen in a sequence without me having to do anything.
Joe McCall: Right.
Tom Krol: The second way is that there is no motivation or distress. They’ll say something like, well I was just calling you to see how much my house is worth. In that case we will automatically send a written offer that is time sensitive. That goes out automatically and then we have a 3 month follow up task on that call.
Joe McCall: All right. I’m glad you’re going through this step by step but I want to slow down a little bit. You send a written offer automatic … How does your VA in the Philippines send that?
Tom Krol: We have a few different ways we can do that now. What I was doing up until just recently is I had a local assistant who would actually receive an email and then print it. It was 7 business days time sensitive. She would sign it with my signature and then she would actually physically put it in the mail.
Joe McCall: Okay.
Tom Krol: Now I know … I’ve been talking to Todd and there’s other ways to do that. You can actually use click to mail, I think it is, and they’ll do it for you automatically. There’s a few other options. If you’re on a budget you can just do it yourself or have a spouse or relative do it for you.
Joe McCall: I’ll tell you what I’m going to do for those of you listening to the podcast, is I’ll do a video, a quick little bonus video to put into the podcast. If you go to the show notes. There’s a way you can send letters through Google Docs, through click to mail, really quickly and easily. If you have an account with click to mail, you can have your VA in the Philippines just real quickly create a letter in Google Docs and send it through click to mail right from Google Docs, from the Philippines. Click to mail will send a letter for 85 cents. It’s ridiculous how cheap it is.
Tom Krol: Awesome.
Joe McCall: Yeah that works really really well. I’ll do a bonus video about that.
Tom Krol: I love it.
Joe McCall: All right, so that’s number 2. There’s no motivation but you still send an offer. Why do you do that?
Tom Krol: Everyone gets an offer. I’m looking at a sign and it’s above my desk. It has 3 exclamation points. Everyone gets an offer for a lot of reasons. First of all, when you talk to your sellers a lot of them are embarrassed about their situation and they don’t really want to open up to you and they’re a little bit angry. It has nothing to do with you, but they just are a little bit angry about the situation they’re in. You can’t get any headway on the phone. They know they need help but they just don’t want to admit it. I can tell you I get multiple deals every year from people who have said absolutely not. They gave me some sky high price out of sarcasm. I sent them the time sensitive offer and I got the deal. Some of them just sign it and send it back. Others will call you and try to negotiate. It is definitely a marketing channel that you do not want to ignore.
Joe McCall: Yeah, for sure. Everybody gets an offer. All right, what’s the other 2 or 3 things?
Tom Krol: Sure. The third phone call is you actually hit a person who is either an agent, a cash buyer, a rehab-er, a landlord, somebody like that. You have an investor. In that scenario, we take down their information. We put their email into our mail temp account for cash buyers, or agents with cash buyers. Then we have the telephone number and that goes into our text blasting account so when we do get a property under contract we send them a little text message that says, hey did you see the house I just emailed you?
Joe McCall: Awesome.
Tom Krol: So that’s number 3. Number 4 is voice mail. If we get a voice mail we will leave a voice mail. Hi this is Tom. I was calling you about the house that you have available. They will also automatically receive a text message from my assistant, so I don’t have to sit there with my big thumbs trying to type out a message on a small iPhone screen. It will say, I was calling about the house. Is it still available?
Joe McCall: You’re the one who leaves the voice mail, right?
Tom Krol: I do leave a voice mail, yeah.
Joe McCall: So if it goes to voice mail you just reply to that email, back to the VA, hey I left a voice mail. Send them a text message.
Tom Krol: Yes.
Joe McCall: Does the VA create a new task then for you to call them again the next day or a couple days later?
Tom Krol: Yes. We call voice mails 3 times in a week, in a 7 day period. We only text them the first time. We don’t text them every time. We’ll leave up to 3 voice mails. If we don’t hear back from them at that point, they get a 3 month follow up task.
Joe McCall: Okay.
Tom Krol: Actually I think that might be 6 weeks, I don’t know. It might be 6 weeks or 3 months, I’d have to look at my manual. I want to say 3 months though. That’s number 4. Number 5 is the opt out. They call in just to say stop sending me mail. What we do with those people is we will take them out of the database entirely. They will completely come out of the database. The reason we do that on the opt outs, is because we do send a voice mail blast to everyone, every seller who has ever called in, every 4 or 5 months just to say hey this is Tom. I called you a few months ago about your property. If it is still available call me at this number. If you’re not interested in selling, no reason to call me back.
Joe McCall: Nice. You do that every 4 to 5 months? Maybe you should do it more than that.
Tom Krol: Yeah, we could. We could. I have no problem with that. I will tell you every single time we’ve done it we’ve gotten a deal, or multiple deals.
Joe McCall: Yeah, that’s awesome.
Tom Krol: So the question becomes … That’s still a lot of processes. How do I get that where I don’t have to do anything? I don’t want to send this information back to my VA. What I’ve come up with is … I wanted to develop a system where I was totally mobile and I didn’t have to type anything. Now what I do is while I’m in the car I will be on the phone with these people, and then I will use another application called What’s App. Actually now with IOS 8 on iPhone you could do it through there. I use What’s App and I will tell Lorena the next step on the account. That is the key.
For instance, if I’m on the phone with you and you are not at all motivated I’ll say … Lorena, with Joe McCall, can you send him a written offer for $89,000. So now I don’t even have to type anything back, which is fantastic.
Joe McCall: You use What’s App because your VA is in the Philippines and they may not have an iPhone.
Tom Krol: Right. Right. We still use What’s App. I think that Lorena actually did just buy an iPhone but we’re still using What’s App. It seems to work very well.
Joe McCall: Okay. So What’s App is free. You like doing it because you can just record your voice.
Tom Krol: Right.
Joe McCall: Now the new iPhone also has a way you can text or voice recording. Does it really matter? That voice recording can go to anybody, even with an Android right?
Tom Krol: Yes. Right. Absolutely. It’s 6 in one half dozen of another.
Joe McCall: I guess you’ve got to … I guess the question still is, Tom, can you send somebody in the Philippines a text message from your regular iPhone texting. I don’t know if you can do that or not.
Tom Krol: I don’t know.
Joe McCall: You can send a text message to their email. Anyway, there’s a hundred different options that you could do. The app called What’s App, that can go to anybody, regardless of what phone they’re using. Android of iPhone. I think you can even go to the What’s App website and maybe get your responses there. I don’t know.
Tom Krol: I’m not sure. Lorena uses the What’s App website. What I like about What’s App is as soon as I get off the phone I immediately send her a voice memo and she does all of the data entry. I don’t actually have to every pick up a pen or paper. I’m moving throughout my day and it’s very very smooth. For instance, if I’m going to go in and have some lunch, my tasks don’t start piling up. I still have 3 tasks. I just go through them at my leisure.
Joe McCall: So let’s look at the first option, the first thing that you do here. It’s a motivated seller and … Where are my notes? It’s a motivated seller. They’re motivated. They want an offer. You’re going to meet with them that day. You just schedule a time to go meet with them. You bring a contract with you, I imagine, right?
Tom Krol: I do. So the way it works … Let’s just say it’s 11:00 in the morning and I call you and I happen to be out. I say, Lorena, Joe McCall is highly motivated. I’m going to see him today at 3:00. Automatically that will set of a series of things that will allow me to go and see you. The first thing that will happen is Lorena will go and put that on my calender. I’ll get a half an hour notice.
Joe McCall: You’re not even putting it on your calender.
Tom Krol: No. I don’t want to do anything except talk to motivated sellers. That’s how this started.
Joe McCall: Okay.
Tom Krol: Yeah, it’s fantastic.
Joe McCall: Your VA is … I exactly remember where I was talking. I was walking my dog, Tom, we were at this trailer park, mobile RV park, whatever, in San Francisco. I had to go to the bathroom so bad, I remember, but I was so excited talking with you. Anyway, I had told my wife I was just going to be gone for a couple minutes. We talked for like 45 minutes.
Tom Krol: Right, right, I remember.
Joe McCall: I was walking the dog around this dog walking area. So this is what got me so excited. You literally said, all right, I don’t want to touch High Rise anymore. I don’t want to get on my computer anymore. You used to be so stressed out because you’re not organized. You could only get a certain amount of business done because you put yourself in a box. You could only work while you were on the computer in your desk. You were just getting buried with so much stuff and it was stressing you out. It finally reached a point where you said enough is enough.
Tom Krol: That’s exactly right. That’s exactly what happened. I just got to a point where I said I can’t do this anymore. I’ve got to stop coming up to find interesting ways for my VA to work and actually just get her to do what I need her to do. It was my fault that the system wasn’t in place. Now it’s fantastic. We can get into more conversation about all of the things that she’s outsourced, but I don’t even touch my email anymore. That was a huge game changer.
Joe McCall: Okay so now this VA is working 8-5 local time, right?
Tom Krol: Yes. She works my time, 8:30-4:30.
Joe McCall: How did you find this VA?
Tom Krol: On O-Desk. It was just somebody that I went through. I think I went through maybe 4 people until I found her. She just worked out very well.
Joe McCall: You wrote this stuff down. You’ve created your own process manual, right?
Tom Krol: Yes. So this is all a manual that basically allows me to go throughout my day … I can be at the gym, not that I go to the gym a lot Joe, I could be anywhere throughout the whole day and I am fully engaged. There’s not a single lead falling through the cracks. If there’s somebody who’s super motivated … For instance, we got one, the lady said I have to sell my house immediately. Lorena will send me an alert that says you have to do this one right now. I basically just go throughout my whole day, I spend time with the kids, I can at any time be totally fully engaged without a laptop in front of me, which is fantastic.
Joe McCall: Awesome. Okay so you get this motivated seller who says yeah I want it. You don’t even look at your calender but you get an appointment scheduled.
Tom Krol: So she scheduled the calender event. She also automatically will create the purchase agreement based on the address. She pulls all the information off of the county and she’ll automatically email me a purchase agreement. If I’m home I’ll print it off before I go. If I’m not home, I keep blank purchase agreement, subject to agreements, and assignment agreements in my car at all times. Quickly, I’ll go to the appointment. I’ll meet with you. I’ll say, hey Joe bah, bah, bah, bah, bah, here’s the price. Do you say yes? You say yes. Then I will pull out the purchase agreement. You sign it. I will automatically take a picture of it and send it over and fax it over to my title company who has a whole bunch of procedures that they do with it at that point. They start immediately pulling title.
Joe McCall: Okay.
Tom Krol: I developed a form on the Google Drive. I have a house form, which allows me to fill out all the information about the house so I can give Lorena all the information about the home. It will have a headline about why the seller is selling. It will give her the bedroom count, bathroom count, any of the special features which is a check off list on the house form online, so it’s all on my phone. It will say fireplace, pool, large corner lot … Based on all that information she will go into Mail Chimp. She’ll automatically create the Mail Chimp email and that will go out to all the buyers. The title company will start pulling title automatically. I never have to do anything with the property. All of the photos for the photo link for the email automatically come from my iPhone. We upload those onto dropbox. I think now she uses Google plus. She puts the link in there and that’s it. Literally from the minute you sign the contract … Within 20 minutes of me leaving the house it’s already sent out to all of my buyers and I’ve never had to do anything.
Joe McCall: Do you have a website you put the properties on or do you normally sell them pretty quickly just from your emails and text messages?
Tom Krol: They usually sell same day or next day. There’s almost no inventory. For me, there’s not a reason for it.
Joe McCall: Awesome. So she puts the information together, you’re filling out some kind of form that lists the bedrooms and features … You’re obviously telling her what price to advertise it for. She gets that information, she puts that together in an email, and she probably puts a link to all the pictures like a dropbox link or something, right?
Tom Krol: Exactly.
Joe McCall: It includes that in the email and sends it out to everybody. Does she also send the text blast to your buyers?
Tom Krol: Yes, absolutely. We just were talking about it but that for me has been the real game changer. That has really allowed me to consistently now be in a situation where I am getting highest and best offer on all of my properties because I have so many people who now are aware of the property. Whereas before the email … Like I said, I don’t want to say email is dead, but email compared to texting is a dinosaur.
Joe McCall: Yeah.
Tom Krol: The texting is just phenomenal. Yeah and that’s it. So the entire process is completely done. Even up to the point where we sell the property, we will have the assignment agreement automatically created by Lorena so when I go off to show the property with the buyer who’s going to purchase that, it’s all done automatically. Again, I don’t have to go to the title company. I just use … I think it’s called Genius Fax. I take a picture of the document in my car and it goes right to the fax company, to the title company. The entire process from front to back is completely automated.
Joe McCall: Awesome.
Tom Krol: I have never had to really type anything. The only time I type anything into my phone is when I’m filling out what I call the house order form, which is just the details of the property for Lorena.
Joe McCall: Okay good. So now when the seller’s not motivated and you’re offering 50, they want 150 … You’re going to just record a voice message and send it through What’s App, or whatever, to your VA and say, all right the seller at 123 Main Street, I just talked to them. What kind of instructions do you give your VA for that not motivated lead?
Tom Krol: Sure. Lorena, 123 Main Street has no motivation. Send a written offer and let’s call back in 3 months.
Joe McCall: You’ll tell her what to make the written offer for?
Tom Krol: Sometimes. It depends on the county. If it’s in my St. Lucy county, it’s automatically based on a price which is a percentage of the county number that we use.
Joe McCall: You’re not even calculating the number yourself.
Tom Krol: No. She does the evaluation and the comps.
Joe McCall: She just takes something like the Zillow value and the appraisal value and the county records times 70% or something, right?
Tom Krol: Yeah and I just had this conversation with a student. This particular student was really hung up on evaluations. We going back and forth, back and forth … I said, this is what I want you to do. I want you to take the last 10 deals you’ve done and I want you to see what you locked them up for. I’m sorry, what you sold them to your buyers for based on the Zillow number. It turned out that in almost all 10 deals it was just a percentage of that Zillow number. He ended up actually selling at about 68% of the Zillow number to his end buyer. I said great, the next property you go on, just take 68%. That’s what your buyer’s going to pay. Minus of $20,000. In his territory he does 20k per deal. You minus $20,000 from that number and that’s where you need to lock it up at. That’s it. If there’s motivation you’ll get the deal. That’s so much more important that evaluation.
Joe McCall: I love it. One of the things that I did a few months ago is I looked at all of the cash transactions in my county, investor purchases, in my county. I had my VA go through and look at the sold price and then pull up the square footage, the Zillow estimate for rent, and the Zillow value. I had 3 ratios. I took the average price per square foot, by zip code, the average price as a ratio of the rent … I took the price divided by the monthly rent and I also did the average price as a percent of the Zillow value.
Tom Krol: Got it.
Joe McCall: So now I have 3 numbers. When I get a property … If I know the Zillow estimate for rent, for square footage, and the Zillow’s value, I know the average price investors are buying properties for in that zip code based on those 3 numbers.
Tom Krol: I love it.
Joe McCall: Then, that’s what you make your offer for. So what we did is we actually, in one of our mail campaigns, we just sent off … instead of sending a postcard or yellow letter, hey I want to buy your house … We actually sent contracts. Turns out it didn’t work that well but we did get a couple deals out of it. It was just too much work. We’d get the same number of deals with a postcard and it was a lot cheaper. That’s why I stopped doing it. The point is, you could come up with those numbers really easily, the average numbers for your zip code, and just have your VAs make offers based on those numbers. Let’s say you haven’t done 10 deals yet … My point is you can look at what investors, in the last 6 months, have bought homes for in these zip codes. Then have a VA … Maybe it’s just a percent of Zillow, or maybe it’s just an average price per square foot, or maybe it’s a percentage of the rent. That’s something that you could easily get an average for each zip code. It’s awesome.
Now, there’s no motivation you just send them an offer automatically. You’re not even giving your VA a number. She’s just calculating that number herself and sending that letter.
Tom Krol: Exactly. That letter has a cover letter that has my contact information. Very very low response rate on that, extremely high conversion rate. As a matter of fact, I don’t think I’ve ever had a call back that we didn’t buy and resale, or wholesale.
Joe McCall: That’s huge.
Tom Krol: Yeah, it’s almost 100% conversion rate on when you get a call back from the offer. I will say I do get some offers. I get some offers back in the mail. They have a lot of interesting verbiage on them with a big red pen.
Joe McCall: Oh I know. Last podcast I was just telling you, we got one sent back to us and they signed it. My step procedure is … My wholesaler is taking these leads, these calls, he just creates a task for the VA. Send an offer for 13k. The VA sends it. We use click to mail. Yeah, the seller 3 months later just signs it and mails it back. We get this piece in the mail …
Tom Krol: I just started doing that, actually, with subject 2’s. I’m waiting to see what kind of response I get back on that. I’m interested to see if the subject 2 deals fair well as well.
Joe McCall: I’m interested to know more about your subject 2’s. Maybe we can talk about that later. Does your VA create a task to follow up with that seller again in 3 months, or something like that?
Tom Krol: Yes. Although I will tell you the follow up calls from the written offers that we send out does not do very well. We usually … I don’t remember ever asking you for anything. That kind of … They’re not the hottest calls. I really can’t tell you if whether or not I’ve had any success with actually locking up a property because I haven’t measured that. I’m starting to think that the best way to do it is just send the written offer. Once they’re in the database they’re going to get blasted with a voice mail anyway eventually. I’m considering not even calling those guys back at all.
Joe McCall: Okay. Anything else happens with that lead that your VA does? Or just puts them in the follow up sequence?
Tom Krol: That’s the end of the sequence at that point.
Joe McCall: You put sellers in an automated email series?
Tom Krol: I don’t. I’ve had this conversation. I don’t get a lot of emails. I’ve got a little bit of an older crowd here in Florida, especially in my territory. It’s an extremely high retirement community. I don’t. I would say maybe not even 50% of the time we even get the seller’s email. If we do get the email we will email the offer rather than send it via mail. No I haven’t. I do have some of them. Are you finding good results with an email campaign for the sellers?
Joe McCall: I have never had success with it but I’ve never tried it really that hard to ask for the emails from the seller. I did talk to a guy, what he does I thought was really fantastic. He’ll tell the seller, can we email you some information about your property? We’ll email you some comps and email you some information about our company, is that okay? 8 out of 10 sellers will say yes, that’s fine. He gets their email address and he will tell them … He’s using a double optic. He’s using a Weber. He’ll tell them, I’m going to put your email into our system and you’re going to get an automated email that says click this link to allow us permission to send you email in the future. Just make sure you click that link. After you do that, then we’ll send you the comps on your property. He’s creating some kind of a free report that has the comps on the property along with a flier he has about his company.
Tom Krol: Wow.
Joe McCall: So it’s as simple as asking that question. Do you mind if we send you some comps on your property, what your house is worth, along with some information about us and our company?
Tom Krol: I’m just looking at my script. On my script, number 14, which is the last question is do you have an email address so that I can send you a written offer? I don’t even … To be honest with you, I very rarely even ask that question. I do need to do a better job, actually, on that.
Joe McCall: You can get emails in an auto-responder series and that’s just another thing, another touch, right?
Tom Krol: Absolutely.
Joe McCall: Okay so now it’s an agent cash buyer. You talked to this seller, whatever this lead, and it turns out they are not a motivated seller. Again, you just record some information. What do you say to your VA?
Tom Krol: What I’ll typically do is if it turns out it’s an agent who’s just calling out of curiosity, I’ll explain to them exactly what I do. If it’s a cash buyer of some sort I’ll explain what I do. Then I will ask that individual … I’ll say, hey Joe do me a favor, if you text me your best email address and your first name and your phone number, I will send it to my assistant and I will actually add you to my cash buyer list. Is that okay? They’ll say okay and I’ll say, did you want me to send you a text message next time I lock up a hot deal? They’ll say okay, so I’ll say okay to that, and then I’ll say great send me that. I will forward that text message to Lorena. Otherwise, I have to sit there and type it out which is a nightmare.
Joe McCall: Come on now. You could send a voice message to your VA. Hey, add Tom to our buyer’s list. His phone number is 555 … You could do that.
Tom Krol: The problem really is not the phone number it’s the email. Everyone’s email is … Oh this is Bob Parsley at 12314hotmail … It’s too much.
Joe McCall: I agree. Anymore I don’t care about having my buyer’s email address. I just want their phone numbers, you know?
Tom Krol: I hear you brother, I hear you.
Joe McCall: If it’s a voice mail, you call the seller back you get their voice mail … What message do you send to your VA with that?
Tom Krol: Sure. That’s all I say. Lorena, on 123 Main Street we left a voice mail. She’ll automatically send a text message and then she will reschedule it within a 48 hour time frame with a counter, meaning that she’ll put it in High Rise … Voice mail 1, Voice mail 2, Voice mail 3 … The key there is what would happen is the task list kept building. What we found that the reason is was building and we could never get to the point where we had 0 tasks is we were in this forever cycle of leaving voice mails. What we decided is every 3 voice mails stop calling and just leave it. We’re going to leave a voice mail anyway with the voice mail blast so it doesn’t really make a difference. We just made a decision, after 3 voice mails stop calling. We only text on the first voice mail.
Joe McCall: Okay, awesome. So you’re just basically … As soon as you get a task done your VA sends you another task. She’s keeping track of, in High Rise … She marks the tasks complete. She also has a way … She has a system to prioritize which tasks to send you, right?
Tom Krol: Exactly. Exactly. The whole point is you want to get to zero tasks. If you have tasks sitting out there … I will say typically if I’m not in the middle of a campaign … Today I’m in the middle of a campaign. I’m not going to get through all my tasks today. When you’re not in the middle of a campaign you should be zeroing out your tasks by 2:00. You don’t want to keep these things in the cue. That’s the game plan. This is just one example of using a VA properly, in my opinion, and turning them into a personal assistance. You have to know what you really want your day to look like and work backwards from there to say why does my day not look like that. That is kind of where we started. It is a game changer, Joe. It’s a game changer because I could be anywhere and I can choose to be fully engaged or not engaged at all. There’s no middle ground. There’s no, oh I’ll kind of dip my toe in the water. This call, I’ll take but then I’ll write down a note and put it in my pocket. The worst. You can’t do that.
Joe McCall: I love it. I’m writing this down. I like what you said. What do you want your day to look like and then work backwards from there.
Tom Krol: Be honest with yourself about what you’re not good at. I’m okay with the fact that I’m not a good data entry person. That’s okay with me. I love the book Strength Finder. Work at what you’re good at. Don’t try to improve what you’re not good at. Just accept what you’re not good at and outsource it. It’s fantastic. This is one example with High Rise, or with my database, and with my task schedule. This same theory now has been extrapolated out all the way to all of my entire day. Even things like email or … All this stuff that I’m working on, the only thing that is not really in that system is my marketing. That’s sensitive information so that I do myself still.
Joe McCall: Alex does the same thing. By the way, Alex had to go. He always does the postcards himself. Me personally, I have a local assistant who I’ve taught to do all of our direct mail. She’s phenomenal. I love that though. Figuring out what I want my day to look like. What am I not good at? Then getting a personal assistant to manage that for you. You’re hardly ever even opening your laptop, you’re just communicating with her back and forth. You’ve made her your gate. I only want to see 3 things at once. That’s huge. Awesome.
Tom Krol: She’s fully engaged the whole day. So at a moment’s notice if I need her, I just say hey Lorena and she says hey Tom. So right at the tip of my finger. I got the idea when I was watching with my middle daughter, she’s 5 years old, Lacey. We were watching Mr. Popper’s Penguins, with Jim Carey. There’s a scene in there, all throughout the movie he has a personal assistant who is intuitive, knows what he’s going to say before he says it, and has everything done for him. He just moves out throughout his day. It’s like the old fashioned secretary or assistant from the 1940s or 1950s. That is a dream for me because now I’m most effective throughout my whole day in that scenario because I can just do what I do, and everything else happens based on my activities, which is just fantastic.I think it’s also important … I’m getting closer now to hiring, or trying to hire, another house buyer for my team. This system now is going to be a better system for them. That’s really what’s taking my time now is having to meet with the homeowner. If I can eliminate that … I’ve had countless conversations with Todd and other people about that. You and I were just talking about it just today. I think that really is going to make that system a whole heck of a lot easier as well.
Joe McCall: One thing … we’ve got to get going here. Subject 2, Tom talk real quick, why are you looking at subject 2’s? What are you trying to do there?
Tom Krol: Sure. I had been talking to a lot of people about subject 2’s. Really this started with a person I met. One of my cash buyers who is a very very wealthy individual. He said, yeah I like what you’re doing but you’re like a drug dealer. I said okay, why am I like a drug dealer? He said well, here’s the problem. Wholesaling is great but long term wealth is going to be in your subject 2’s. I don’t know if I agree with him 100%. I think there’s ways to scale wholesaling. He was particularly worried about the fact that the business of wholesaling is really completely unregulated. He is anticipating that’s going to change relatively soon. He said to me, with the subject 2 deals, which is how he made his money, you get a deal which is minus 40% of the cost. If you can clear $100 a month you’re in good shape. I had some conversations at that point with my brother Todd, and some other guys. It just seems like it makes a whole lot of sense. I will tell you, Joe, I’ve missed out a lot. I’ve been so laser focused on wholesaling. I definitely had motivated sellers with little equity but with a month to month low payment that I could have put a renter into. I feel like it’s just another tool in my arsenal, to build some long term assets, some long term equity, and to start generating some cash flow.
Joe McCall: By the way, before I forget, I just thought of … There’s an app called Voxer. Like boxer, except a V for virtual. It’s like a walkie-talkie feature that you can send voice messages back and forth to anyone in the world with an Android or iPhone.
Tom Krol: I love it.
Joe McCall: It’s called Voxer. V-O-X-E-R. Check it out. Anyway, you’re right. You’re talking about the deals where there’s just not enough equity and you’ve been walking away from that. If it’s a deal that will still cash flow $100 a month after taking off 40% of the rent for expenses, that could be a deal that you could maybe keep long term in your portfolio. Is there a certain minimum equity that you’re looking for in those deals?
Tom Krol: No. As a matter of fact, I don’t really care if there’s any equity or even if they’re upside down. I was running the numbers … Todd and I were looking at this and we’re saying why do we care about equity if we’re not going to wholesale it to the owner occupant, or to an investor? We really don’t care if there’s much equity if it’s cash flowing. To a certain extent … I don’t want to be paying $400,000 for a $200,000 house, but to me I think it’s just another tool. I almost feel like a responsibility to learn more about it. I’m just scratching the surface now. We’re just getting started with this. I know for sure … I have done a few in the past but I’ve wholesaled them out. I know for sure that those deals are out there. There’s no question. As a matter of fact I literally just had a lady call me the other day and said, well the house is worth 115 I owe 115, but just give me $1000 and you can have the house. I want to get out.
Joe McCall: Wow.
Tom Krol: I didn’t do anything with it.
Joe McCall: I’ve done a lot of lease options in the past. I prefer, personally, a sandwich lease option rather than a subject 2. I don’t want to take over the mortgage. Just from my experience, if the deal goes bad I think it’s easier to get out of a lease option than it is a subject 2 deal. Just something to think about. It raises fewer red flags. You don’t have to try to convince the seller to deed you over the house. You still get the same control with a sandwich lease option as you do with a subject 2 contract. The only thing that you can’t do is you can’t borrow private money against any equity on a subject 2 deal, if you’re doing it as a lease option. I would say you don’t want to do that ever anyway. I love lease options because they allow you to control property without owning it. I’d prefer not to own the property. You do that when you take over the deed. you could go back and forth both ways. I just like it better. You still get the same control. It’s just easier to treat it more like a master lease, a sandwich lease option.
That’s something that I’m looking at more and more in my own business because prices are starting to come back up and there’s a lot of sellers. Before, I would just wholesale these as lease options. Now I’m thinking about maybe I should just keep them and start building up my portfolio.
Tom Krol: That’s exactly where I’m at. The particular guy I was looking at, he has 400 of them. To me it’s a no brainer. Whether it’s a sandwich lease or a subject 2. I am definitely interested in having that conversation with you because I am certainly … I’m getting ready actually to do a mailing specifically to those guys. I’m kind of new at this so I need to dial in some of the marketing and some of the scripting. So, yeah if we could have a conversation about that that would be fantastic because I am definitely game to start doing that.
Joe McCall: Well cool man. Tom, this is going to be going down in the annals of history as one of the best real estate investing mastery broadcasts.
Tom Krol: Thank you Joe, I appreciate that.
Joe McCall: There’s so much we didn’t even talk about. You’re coaching people as well, Tom. You have a new podcast coming out that’s called Hot seat Wholesaling, is that right?
Tom Krol: Yes. Hot-seat Wholesaling. The interrogation room. We are going to get you in the hot seat Joe, so don’t try to avoid me.
Joe McCall: It’s a really cool concept where you’re actually going to be interviewing people and you’re going to be only talking about real life case studies.
Tom Krol: Exactly.
Joe McCall: There’s a ton of us out there doing these podcast interviews now where we interview other people. You’re going to be specifically focused on let’s talk the deals.
Tom Krol: Right.
Joe McCall: Let’s talk a real deal that you recently did.
Tom Krol: Absolutely. I want to know how you found it and how you sold it, and exactly what you did. The reason, Joe, is there’s a lot of guys out there with a lot of philosophy. I think that’s great when you really start doing a lot of wholesaling. Just like you and I are talking about now subject 2’s or sandwich lease options … For the guys and girls who are just starting out, some of them have some cash and some of them don’t. They just want to know how do you do a wholesale deal and is it real. One thing we do is we ask for the address. I know we talked about that but the reason we do that is I want people to know, yes it’s real. It’s a wholesome, honest, great business.
It’s totally real and you can make a fortune doing it. I just told you about this the other day. I just recently did a deal, I made $2995 and I didn’t really take it too seriously. I let the check go. It sat on my desk. My wife reminded me, you know Tom, 2 years ago when you were working selling lawn care service you would have had 113 hours for that. Don’t get too … Yeah so it’s Hot seat wholesaling and we are going to be … Hopefully it’s going to be coming out here in about a week or two. We’ll have our first episodes up and we’ll have some great guests, including Joe McCall, right?
Joe McCall: Yes. We’re going to talk about this offline. We’ll get that scheduled. I’ve got a good deal for you.
Tom Krol: Awesome.
Joe McCall: We can talk about it. So guys, go to realestateinvestingmastery.com. I’m going to put together some really cool bonus. I’m going to put together a little video on how you can send documents through Google Docs and click to mail, and how you can have your VA now send letters for you through click to mail, even if they’re in the Philippines. They’re only like 90 cents. It’s pretty crazy cheap. I’m also going to put together … I was just thinking about this, Tom. I was thinking what’s a good bonus that I can give to people in the show notes. I was thinking I could write a checklist of everything that we talked about. Then I thought, whoa me? I’m not going to write a checklist. I actually have a new lady who’s working for me. She’s phenomenal. Her name is Becky. She is more my … I’m calling her my project manager. I’m going to have her go through this episode and write down these notes that we talked about as a checklist when these leads come in. We’ll have the checklist available for you guys. If you go to the show notes for realestateinvestingmastery.com, we’re going to take everything that Tom and I talked about and turn it into a checklist of what happens when the leads come in and where they go and what responses go out and things like that. We’ll put that in the show notes as well. Realestateinvestingmastery.com.
So, man this has been awesome. I’ve got a bunch of notes here. Tom I sure appreciate it. I’ve got to fly out of here and go to my dentist appointment.
Tom Krol: Good luck.
Joe McCall: I’m actually going to be late now.
Tom Krol: It’s always awesome spending time with you. You’re a great inspiration and I really appreciate it. Thanks for everything you do for our industry and it’s awesome. Go enjoy the dentist. Good luck and I’ll talk to you soon.
Joe McCall: All right, see you guys. Bye bye.
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