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The former marine I’m interviewing today is so full of gratitude. Sean Terry is grateful for his family. He’s grateful for the opportunity to do real estate deals. And he’s grateful for the freedom he’s earned through real estate investing.

Sean has been around the block a time or two, and he’s picked out not just the actions but the attitudes of real estate investors who succeed. If you’re wondering how to make it in real estate, Sean has the answers.

First, we explore the attitudes of successful real estate investors. What are their habits? How do they handle challenges? What is it that gets one investor all the leads with the exact same marketing strategy as the other investor who gets no leads? Sean calls this the triangle effect, and he’s seen it in action plenty of times.

Next, we talk about the four phases of freedom. About 30% of the attendees at Sean’s events haven’t gotten their first check. They’re still working on phase 1. And after a new investor gets that check, they work their way through phases 2 and 3, quit their full-time job, and build a predictable income. Then in phase 4 they make $100,000 a month. That’s when it’s time to start talking about not just cash flow but cash stick (excess income) and how to turn that cash stick into passive income.

Lastly, we explore some of the marketing techniques that are sure to help especially newbie investors to land their first deals. We explain the collection method mentality and give a few on-point resources for finding data on a property, thinking through your marketing strategy, and raising private capital.

Be prepared to do some self-reflection after listing to this one. And get ready to take notes—Sean is full of helpful tips and insider how-tos.

Listen and learn:

What’s inside:

  • Sean explains why he is so grateful to have found freedom in real estate.
  • Learn the four phases of financial freedom to earn $100,000 a month.
  • Explore the difference between cash flow and cash stick (excess income).
  • Pick up some tips on marketing in the current market to achieve cash stick.

Mentioned in this episode:

Transcription:

Download episode transcript in PDF format here…

Joe: Hey guys, welcome. This is the Real Estate Investing Mastery podcast. So glad you're here. Welcome. I've got a special guest today. His name is Sean Terry. He's in the house. I'm so glad he's here. Sean and I go way back. I got… I'll tell you about our story here in just a minute and I'm glad to have him on the show. I'm excited that he's here. And just a few quick housekeeping things here.

Joe: Okay guys, if you liked this show, go to iTunes, subscribe, leave a review. I am happy to say I have more reviews than Sean. Finally, on my podcast, Real Estate Investing Mastery podcast. Sean's podcast is Flip2Freedom. He's been doing it longer than I have, but I finally surpassed him in reviews. I think I do. I'm, I might not, I might've, he might've passed me up and he probably hit…

Sean: I think it's that little tuft that you have down here, that, that little thing right there. So, I got to grow it.

Joe: If you grow one like this, you'll get more reviews on your podcast.

Sean: Oh, that's the secret. I knew there was something!

Joe: And so, here's the other thing, guys, leave a review on the show, if you like the show, and go subscribe to Sean Terry's podcast, Flip2Freedom. Flip, the number two, freedom. He's been doing it forever. And one of the ways… When we first met, I heard his podcast and I called him on his cell phone. Don't ever do that.

Sean: I left my cell phone number on the podcast; “Yeah, give me a call. Here's my number!”

Joe: So, I called him up and I said, what's going on? And we talked for like an hour or two hours or something and just became friends and he gave me some great advice. Sean, I remember you told me to, I should name my podcast Real Estate Investing Wizards. Cause at the time you were, you had one of your books was The Stock Market Wizards. Do you remember that?

Sean: Yeah, I totally,

Joe: And he gave me… Sean was the guy before everybody else and their grandmother was interviewing people. Hardly anybody was doing that in podcasting. Sean gave me the idea; you should interview other successful real estate investors. And I thought that's a great idea. So, I said, I don't want to call it wizards. I called it Real Estate Investing Masters. And I thought, well mastery would be better. So then, and then, I bugged, I was bugging Sean like, Hey, how do I do this? How do I set it up? Libsyn, what is that? And he was telling me what mics to buy and how to set it up a Google FeedBurner I think is what we were using at the time.

Sean: Yeah, FeedBurner.

Joe: Yeah. So anyway, I'm glad you're here. Oh, one more thing, Sean, real quick. Y'all, just wrote a new book, guys called REI secrets and it's, it's going to be coming out in a few in week or two, “Daily nuggets of real estate investing wisdom to help you get more leads, close more deals”. Each chapter is like two or three pages long. It kind of reads like a devotional that you can actually just read one chapter a day to get some inspiration and ideas and motivation to actually get out there and start making some deals doing some deals. All right, so go to REIsecrets.com if you're interested in that. Cool. Cool.

Joe: All right, so guys, this is… I'm really glad and honored to have you here. Sean, you, I don't know if there's any many other people in the, in the industry that have impacted more people's lives and businesses than you. And, I wanted to get you on the podcast to talk about kind of what's going on in the market now. What are you seeing working; you've been doing some really, really cool things.

Joe: A lot of people already know your story, how you got started in real estate. You were in the Marines and one of my favorite stories you tell is a guy named, a friend of yours named Joe. And I was just wondering if you could just retell that story real quickly here. It gets people to kind of know who you are a little bit and also why you're so passionate about this business and life in general. Will you talk about Joe for just a minute?

Sean: Yeah. Interesting. It's sad, it's a sad story, but I spent, you know, I spent four years in the Marine Corps. I joined in 1988, I was 18 years old from Vermont of all places and I wanted to get out of Vermont because Vermont was, you know, the small town. I wanted to go see the world. I felt trapped there.

Sean: So, I was in the Marine Corps, got on the bus, got in downwind, I went and I took off and I'm off to bootcamp, did the whole thing there. And then it was about, it was 1991, 1992, I was 21 years old. I was on ship in the middle East. And it was, I remember it was January 14th, was my birthday. January 14th, 1970 is my birthday. But January 14th, 1991, President Bush Senior got on the airwaves just to the military and said that we are going to announce, we're essentially going to war.

Sean: And I remember felt a ripple effect. The whole place was all quiet. And the Marine Corps, it's like a band of brothers, right? You have all these guys you hang out with. I remember I was hanging out with, my roommate was Grant, he was from Atlanta, great guy. And another guy, McCollum, he's from Alabama. And then a couple of, another guy from Miami and other guys. So, we're all, we're all like from all over the planet and we're all hanging out and we all, you know, we sleep, you know, in pod, take showers together. We were all hanging out, we party together. So, you get really close with these group of guys.

Joe: One guy, his name was Joe and he's from Iowa and he had, he was this like prototypical Iowan boy, had his like, you know, rosy cheeks and stuff. He was young, young kid. But anyways, so, we were all real close and I remember we were on ship and we're about to go into Bahrain where we were going to a port and then get off and then go on a caravan into Kuwait where essentially there was combat that was happening there.

Sean: And we had to fight off the Republican Guard, which is essentially the Iraqi army that we were going to basically go into combat with. Right. So, we didn't know what to expect. We didn't know really what was going on. We just knew that, you know, Hey, listen, we're going to war now. So we got on, we were on the USS New Orleans at the time and the USS New Orleans is a helo carrier, um, and we're sitting on the top of the deck, you know, with these helos and the deck is pretty big and we're up there with our commander and he was speaking to everybody.

Sean: So, we're all up there and at the time we're about to basically get on the helicopter. They're going to take us, or I think we're ported. They're gonna take us into Bahrain and then we're gonna basically get on the convoys there. So, at the time, I mean, I had on all my flight gear on I had, we had all of our weaponry, M16A2, all of our ammunition… and we were just completely ready to go.

Sean: And I'm sitting there looking at all my buddies and I remember thinking, Holy cow, man, we're drinking with these guys. And you know, he's got, you know, grenades and, you know, we're locked in, he had all his, you know, M16A2's and he's got his saw weapon over his shoulder and stuff, and we're like, we're going into war. I mean, this was pretty insane, you know, and I was at the time, I'd just turned 21 years old. I was like, this is, this is crazy. I'm turning 21 and I'm actually going to war.

Sean: So, what happened was, I remember the commander in chief there was talking to all of us on the ship over kind of like a loudspeaker, basically saying, listen, you know, we're going to war. You know, we don't really know what to expect, what the bottom line is. You have a choice. You can die a hero or you can die a nobody. But the bottom line is there's a good chance you're not coming back. So, you can have a choice. You can die a hero or you can die a nobody but the choice is yours.

Sean: And I remember thinking at the time, and as a Marine, you're going, “I'm gonna die a hero!” Right? It's all pumped up. We're like, come on; Like, let's go. We're chomping at the bit to just get in there. Right? So, we go off, we go to a caravan. I remember where, you know, as we're driving through the desert in Kuwait, they had the, like the smoke was coming up from the oil wells and it was literally black around my lips and around my eyes. I should show you a picture of it; it's crazy.

Sean: But the bottom line is we came to this airfield that we had to secure. And I remember walking this airfield, this is an old Kuwaiti airfield. The Republican Guard literally just left. And as we went in there, we could see human feces of this Republican Guard that was in there. And we basically had to create a perimeter and secure this area around this area. So, we did that.

Sean: Everything all set up and basically, we slept for the night, woke up in the morning early, you know, four o'clock, five o'clock in the morning. And we had these… for food we have these things called MRE's: meals ready to eat, right? And we are sitting out there, you know, eating our MREs, which you literally, it's, you take fruit and you put it in water and it expands and it's disgusting, right? And everybody wants the hot sauce to cover up the eggs because the eggs are terrible. So anyways, we're sitting there outside, right? And in these, in this like air field that was just taken, you know, kind of taken over by these Republican guards were signs of their stuff.

Sean: We're sitting and we're talking and then there's Joe, we're talking in the morning and stuff and he's telling about his girlfriend in Hawaii that he's so excited to go back and see and they're going to get married and they can't wait to have a family and he's like all in love. And he had this picture he would carry around of his girlfriend from Hawaii and so excited to go back and hang out with her, right?

Sean: So what happens was he gets up and he is going to go to the bathroom, but he goes out and he kind of goes over this, you know, walks out and there's really, there's no restrooms, there's no, you know, porta-potties or anything like that. So, he's literally going up and he's going over this, you know, mound of, you know, sand, you know, just like a sand dune, whatever. He steps over and he gets on the other side and he kind of goes out of sight. We hear BOOM, right? And it's loud. It's like what the heck? We hit the deck because we were like; we think we're under attack or something.

Sean: Next thing you know, we find out that Joe is literally been blown to smithereens because he stepped on a, essentially a landmine or stepped on something that was buried there, blew him, blew him up and it, we all were absolutely in shock. We, you know, that was a kind of first time we've ever experienced from being a civilian life to going through the Marine Corps boot camp to getting on a ship to actually now we're in a combat situation where now we have a casualty and we're freaking out.

Sean: And I, part of the story about it is that I remember my daughter, you know, saying recently, probably about a year or so ago actually. I mean, I mean, she'd been singing like crazy, doing amazing things now. But about a year or so ago, she's sang at the Diamondbacks game in front of 55,000 people, the New York Yankees and the Diamondbacks. It was nationally televised; we had a huge suite. We had tons of people there and I was freaking out, man. She gets up to the, you know, up to the plate, she has her ear buds in, cause the echo is just amazing. And she's, you know, 14 years old at the time and she steps up, to the home plate, 55,000 people all standing and they go “Here to sing the national anthem anthem anthem… is Ava Terry!”

Sean: And, you know, she's singing, she gets up there and she belts out the national anthem like you've never seen. She crushed it. She was amazing. Literally, I'm sitting there shaking, holding that, you know, hold the camera and stuff and she's amazing. And she turns around and she literally runs to me, gives me this huge hug and she's like, oh my gosh, I want to do that again. And I'm like, man, this gets crazy, man. It's like, you know… like, she has like the confidence of, of that. She's just, when she's in her element, she's amazing.

Sean: But I, you know, I look back at that situation, I look back, you know, Joe, you know, died, you know, for our freedom for us to have the ability to do wholesaling lease options or wholesaling houses or have a business, you know… And he'll never experience having married his, you know, Hawaiian girlfriend, you know, potential wife and having a daughter of his own, you know, do something that amazing and turn around and hugging you in a situation like that. You know, and I think back and I'm like, wow, this just like, you know, you know, look at all the people that have joined the military and sacrificed their lives, you know, so we could have the opportunity of success and freedom and live a lifestyle.

Sean: We take it for granted. And then we look at and we make excuses and we complain about what we don't have, what is going wrong or what's not going right. Instead of looking at the opportunity and saying, Hey, I live in America's the greatest country in the world. I have the ability now to go out and look at an incredible business, which wholesaling is the best business in the world. It's amazing. 

So, you're in the best country in the world. You're in wholesaling and the best industry, real estate, the world where now you can go out and you can turn around and build a life of whatever you want. Guess what! You want to turn around… We're in escrow right now buying a 356-unit apartment complex. That's, you know, an $11 million purchase that will produce $300,000 to $400,000 year a year cashflow for partners, and that will put me up to about seven, close to 700, 800 units. Right?

Sean: So, look at that right there. Where can you go…? I don't have college education. I spent all my time in the Marine Corps, right? Where can I go as non-college education, learn how to wholesale houses, broke when I got started, 580 credit score, living month to month and I can flip the house, I can make $11,000 right? It gave me the hope, the proof of concept and then parlay it into something that can be worth, you know, $100 million. It's amazing of what this opportunity is and people always tend to look at what they don't have or what's not working for them or what someone else is doing better, how they are, you know, competing against everybody else instead of looking at being grateful for what they have. Grateful for the opportunity, grateful that they live in this great country and grateful that they can go out and do whatever they want to accomplish.

Joe: Man, I just love that story. I get goosebumps every time you tell it because it really puts things in perspective. We need to stop complaining and belly aching. You know, we have so many things to be grateful for. Yeah, it's such a good story. And it just reminds me…

Sean: I mean I think you know, gratitude… And I know you are very much like this Joe, because I know you personally, I know who you are and who you are as a person. But I think having gratitude in your life on a daily basis, in a ritual format where you're doing it first thing in the morning, I think is absolutely critical because gratitude opens doors, right? Complaining doesn't, you know, so if y'all, if you look at everything that's going great in your life, everything that's awesome and you focus on that, guess what? You will have more of that. More great things will come in your life. And it's the whole saying, “The better it gets, the better it gets.” But then if you complain and you look at what you don't have and look at what sucks, then that saying happens too: when it rains, it pours… Right?

Sean: So, guess what? We have that decision to make every single day. We wake up every single morning and we can wake up and we can complain and look at what's bad. And look how the world sucks and people are crazy, or we can look at what we're grateful for and I guarantee more than anything else, any tactic we can give you, any strategy we can give you, that one thing alone will make a massive impact. Especially if you do it every single day for 90 days straight, you will be a different person and you'll have different circumstances and events, experiences in your life.

Joe: Yeah. Attitude of gratitude. That's the key to success. I don't know if there's anything else we need to talk about to be honest, because that's, that's all that matters. Really. Just having that right attitude. I mean, I always say this too: the best investment that you'll ever, the best real estate you'll ever invest in are the four inches here between your ears. Right? Investing in yourself, in your mind because, you know, I've been spending more and more time thinking, Sean, less time when I'm driving with the radio or podcasting or whatever. I mean, I listened to a lot of audio books and podcasts, but I've been spending more time intentionally just thinking, not listening to music, not listening to podcasts or whatever, and spending more time doing that.

Joe: And I've been finding that, you know, it's like, I think it was Abraham Lincoln that said, you know, give me eight hours to cut a tree down and I'll spend seven hours sharpening the saw and then one hour doing it. And I think we all need to spend more time doing that. I see so many people that know what they need to do, but don't do it. They have some kind of mental roadblock and it starts I think, I think it starts with, without a doubt, being grateful for what we have. Right.

Sean: You know, it's interesting, I heard we were at church on a Sunday and our pastor was talking about, he asked a question, it was a pretty impactful. He said, Hey, listen, how would you define your inner world? Right? Your inner world. How would you define it? Would you define it? A raging ocean, a babbling brook or a placid pond? Right? So how would you define it? Are you total chaos and turmoil inside? And it's like, you know, that's all this anxiety of all this, like a turmoil, like a raging ocean or like a babbling brook where you're just constantly just going. Or are you just a placid lake inside, right? 

And what creates that groundedness, that calmness, that poise is part of it is having a morning ritual, spending time alone, being quiet, and then listening, right? And listening to that internal voice and listening to that guidance and being quiet and meditating and say, and that will create, it will turn you from a babbling brook into a placid ocean.

Sean: But here's the thing, I'm going to got to tell you something absolutely true. And this is truth. And what I know is that you cannot be a raging ocean or a babbling brook and achieve the success that you want in your life. You can't do it. It will repel everything you're trying to accomplish. You can put all the energy and all the effort, but if you're a raging ocean, you're internally anxiety and worry and all that stuff. And it just worry and all this other stuff. You're just repelling everything your action, your outside actions are trying to accomplish.

Joe: That's deep. It's pretty deep. So, Sean, you've got Extreme Freedom coming up. Why did you decide to do another event? It's been about a year or two I think since you did your last one, a couple of years. Right? Why did you decide to do a new one?

Sean: Well, this was our seventh event, I've done one every single year over the last seven years except last year, 2018 was the year that I didn't, I did not hold an Extreme Freedom event because 2017 was a rough year when it came to the event. Literally I found out about three weeks prior to the event…

Joe: Oh, I remember this.

Sean: Yeah, I know prior to the event—I think you were there—prior to the event they changed the venues on us three weeks before the event, meaning they put us in a complete different room that did not work. So we literally had to move hotels three weeks and it was an absolute scramble. The event turned out great, but literally we lost probably half the attendees in the whole mix up and it's very difficult to do. So I just said, you know what? And it was a lot of stress on my team to be able to do it and everything. So I said, you know what, I'm just gonna take a year off. Last year was that year off… this year we're back in it.

Sean: I love doing events because number one, I love meeting people. I love delivering amazing information and I love hearing the impact. I mean there's people today that if I said who they were and the names of who they were and said they've attended previous events that I put on in the past, and that has been the dot in their life that had made the massive impact in their career and life. So it's great to be able to do that. So…

Joe: Guys, listen, there's people that are making $400,000 or $500,000 a month that started from Sean Terry's events. It's insane. The people, the caliber, and I love the events because you get to network with a lot of cool people, right? When you pick up a lot of good tidbits and things like what's working for you, what resources are you using for this? And just the networking involved is phenomenal. Talk about some of the, is there a theme for the event that you're doing this year? What is the kind of order, agenda?

Sean: We always cover the what's called the four phases of freedom. So the four phases of freedom is essentially… phase one is the process of getting your first check. And those are for people that basically come in, they haven't got their first check. So if I usually ask the crowd, how many people haven't got your first check? A good 25% to 30% of the room have not got their first check.

Sean: So we have people kind of stand up and tell their first check stories. It creates belief in people. But then we talk about what is working right now to get someone from no check to a check, hyper fast, right? Of the best strategies, the best marketing techniques, the best way to talk and close sellers, the best way to get contracts, that is all done. Phase one is typically done the first half of the day. So usually the first half of day one people are going, Oh my gosh, I got more than my money's worth. That's amazing. We actually do have breakthrough stuff too, which is kind of… but really breakthrough for people to break through barriers of internal barriers, especially when it comes to talking to sellers, making offers.

Sean: So phase two is where you accumulate one year's worth of income. We call it the escape plan. So now what happens is you're in a job and you want to go full time. What does that transition look like? How do you make that happen? How do you prioritize your time? What tools can you use?

Sean: And then phase three is when now you take the option, you quit your job and you transition from an employee to an entrepreneur. So now you have to manage your time different. It's different when, I know maybe you remember the day, Joe, the day you quit your job and you went full time as an entrepreneur, that's scary. You don't have a guaranteed paycheck, you don't have your insurance covered. You know if you don't make a check, you don't eat and you know what I mean? So there's that transition. So how can you effectively and efficiently create repetitive and consistent income that's predictable, right? That's all phase three.

Sean: Phase four is where now you're scaling it to $100,000 a month. So that's when we're now going to reinvest 15% to 25% back into the marketing. We're going to hire a team of people. We're going to have an organizational chart, a blueprint of who we're going to hire, what the roles, responsibilities are, how do we pay them, what's the payroll structure and what did they report on for KPIs. Then we're going to have meetings, we're going to have a scorecard and it's all laid out and you get all the tools, everything we talk about in the tools all along with it through the whole process. So now once you get to that point, then you're going to have what we call cash stick. Cashflow is cash money that goes in and out. Cash stick is where you have excess money.

Sean: So, if your overhead is $10,000 a month, but you make $50,000 month, you got $40,000 cash thick, what do you do with that cash stick to create additional income? You reinvest that in what I believe is through apartment syndication. So now we're going to syndicate apartments and we have Corey Peterson's going to talk about that process of syndicating. Yeah, great guy.

Sean: So now think about this. What if your ultimate goal was to make $250,000 a year passive, right? See, what happens is people look at wholesaling or wholesaling lease options as an end all be all. That's not the end all be all. That is just a means to get you enough cash to keep your lifestyle the same… Enough cash to pour it into cash flow assets. So guess what? Maybe your number is $250,000 a year and you want to make $250,000 a year passive. Well, you can do that through apartment syndication. So you own that $250,000 a year passive. Imagine that, right?

Sean: So now you don't have to wake up and you don't, you're not working… You don't have to get a deal to make money. So what would you do with your time? Spend more time with your kids, take more vacations, travel the world. And that's money coming in. And the cool thing is, because you have a permanent syndication, you're getting depreciation. So you can write off the income, which is even better. So now your not paying taxes, you know? So that's the whole process. And then we couple it and pretty much wrap the entire thing around what's called the law of attraction, not the law of attraction, but we call it the triangle effect.

Sean: So the triangle effect essentially is your mental, spiritual, right? And tied in with the law of attraction. How does that all, you as a person, tie in to all these four phases? Meaning, I've seen people and talk to people all the time during the same market, sending the same postcard to the same list and one investor gets all the leads and the other investors going, why can I get anything? What's wrong with me? What am I doing wrong? I'm doing everything. And they blame the marketing even though the marketing's the same.

Sean: So there has to be something different, right? What's different? And that difference is what we call the triangle effect. And once you understand that, once you understand how that all ties… spiritual laws, mental, chronic thoughts tied with law of attraction, we put that all together and it's going to make that whole four phases of freedom tie in and it's going to start pulling your goals toward you versus chasing your goals.

Joe: Yeah, I love that. The three… I'm looking at your website right now, extremefreedomlive.com. Is this a three day event?

Sean: Yeah. We have a VIP Day that is a one day mastermind and we're going to Top Golf on Friday night with the whole VIP group and we're going to have some fun.

Joe: Love it. Love it.

Sean: We got a concert on Saturday night open to everybody. It's going to be an awesome concert. We're going to have bars and food and stuff like that. It's going to be awesome. Dance, a little dance stuff. And we got out, we hired a band that's going to come. Actually it's Chelsea's band. Chelsea has one of the best bands in Phoenix and yup. Yup. They're going to put on a kicking concert.

Joe: Wow. How about that? Yeah. I'm looking at the agenda here. It's crazy. You're speaking, Don Grasiozi is speaking, super motivational. Corey Peterson. He's going to talk about apartments syndication. Right? Oh, by the way, just talk real briefly about apartments, cause that intimidates a lot of people, Sean. And they're like, ah, how do I even get started with that?

Sean: Oh, well first off, I would, I would look into Corey Peterson. There's two people I would highly recommend. Corey Peterson, obviously he's amazing. He's wrote a book on specifically cashflow that would, I would definitely download or recommend you get or buy however you got to get it. I think it's on Amazon. You can get it. So, Corey Peterson and he talks about the process of raising capital. So, I believe, in my opinion, the highest evolution of a real estate investor is the ability to raise capital. Right?

Sean: So, if we're going to talk about market shift, we might talk about, I don't know if we're going to talk about it, but if we're going to talk about a market shift, you know, generational wealth is made through market shifts. The previous market shifts. I wasn't smart enough in understanding a market shift and I got hurt, right? I don't know if you did, but I know I did.

Sean: But now I know what I know and I studied what I've studied and learned what I've learned that to make sure it never happens again is that… And also understanding people made fortunes during the last correction and there's people that got hurt. Maybe you got hurt right during that time and, but there are people that made fortunes that they were buying houses, thousands of them for $20,000 a piece that are now worth $280,000 apiece. That's, those are generational fortunes that are made. So, if the highest evolution is raising capital, learning to be able to raise capital now when we're in a good market, right? That when the market does correct because it will correct. Who knows when? It could be 12 months, 1824 months. Who knows?

Sean: The bottom line is, is that when it does correct and you have the ability in the relationships with people to raise capital, now you can turn around the apartment buildings or real estate that you're buying. Now you can buy it at 50 cents on the dollar. So that's number one. Number one, having the ability to raise capital, I think is, is a huge deal that must be learned and applied number one.

Sean: Number two is that when it comes to apartment, apartment syndication, it's a lot of people doing a little bit. So, in a deal we're doing right now, 356 units, $11.2 million, they have a $7 million loan. We're raising about three and a half million. So basically, we need 35 investors for $100,000. Well, if I looked at the stock market this afternoon, I mean I think I can't, I don't see what, I can't see what it closed at. But it closed at 494 points down. It was over 300 points yesterday. That's over seven, almost 800 points in a matter of 24 to 48 hours. Right? So that's going down. So, someone has their money in the stock market, they're probably want to put some, put it in someplace else.

Sean: They have money in a 401k or, or if they have money in a Roth IRA, they're gonna want to put it somewhere else. Right? So, what is the alternate? Real estate. Real estate is the best way to be able to do it. So, if you have 35 people that put in a $100,000, well essentially you can buy an $11 million apartment complex that produces close to $400,000 a year cashflow. And you as a general partner can get a piece of that by being able to put it together. So, it's not scary. It's a different strategy.

Sean: Second person I would highly recommend is Joe Fairless. He wrote a highly detailed book called… I think it's the best ever apartment syndication book and it's on Amazon. It's like a Bible. It's thick. It's quite a read but you will learn everything you know between those two books about raising capital and understanding the process of apartment syndication that you'd be well versed enough to give you the confidence to go into the market and start looking at deals.

Joe: That's, that's really good. And you guys are going to be inspired by hearing Corey Peterson's story and you want to look him up on Amazon or Google him. I think it's Kahuna Investments, but Corey is C O R E Y. But raising private money may sound intimidating to you, but it's really not that hard. And if you've got a good deal and you've got, just, if you understand the, there's the skill and art and science of the flap your lips method, it's really that easy. It's not that hard. So, it's… Come again?

Sean: No, I said people, people want to be part of something. They want to be part. Yeah. They want to be included in part of something. So…

Joe: You also got Max Maxwell. I had him on my podcast yesterday. Yeah. Super cool guy. He's hard to get on a podcast… have you had him on yours?

Sean: Well actually I'm going to be interviewing him tomorrow. I was supposed to interview him yesterday, but then he said he was booked with some other guy.

Joe: Aha! Yeah, a good guy. What's your recommended book to learning how to raise private money?

Sean: Yeah, I think, Corey Peterson, C O R E Y Peterson's book. He specifically talks about how he raises capital. I love the way he does it because he definitely has a unique method different than I've learned from other people. So, I'd get his book on… I can't, I think it's, I think it's actually Raising Our Cashflow, but just look up, look up or go to his website and I think he'll have the book and buy it or download it or something. That's a great book. Also, too, that other book I was talking about from best ever real estate, he has a whole section on raising capital.

Joe: I've not bought that book. I've never even met Joe Fairless. I'd love to. A really good book I read once by Susan Lassiter-Lyons. Does that name ring a bell? Getting the Money, I think is what the book's called. That's a really, really good book.

Sean: Now let me give you, let me give you someone… if people right now want to create consistent deals every single week and every single month, what do you do? Right? So that's on Instagram or I know we have a lot of people ask like how do I, how do I market? What's the best lead source? What's the best lead channel? How do I get leads? How do I get motivated sellers? How do I do that? And that seems like the biggest thing for people, whether they're doing two or three deals a month, whether doing five to 10 deals a month, where they have no deals a month, right? That becomes, even talking to some, even Carlos and talking to them, listen, how can they create more consistent leads on a basis?

Sean: So, if you go into REI Automator, you can get a pre foreclosure list. So, you want to hit the distressed lists, right? The distress lists. So, number one hit, you can go to… You can go there, but you can get the pre foreclosure lists. You can get absentee owners with equity liens; you can get property or property tax default and you can get like the inherited list. Those are all great distress lists you can target, right? So distressed lists.

Sean: Now you take that distress list and you send them what's called a street view postcard. Now you can do that with, who do you use? I use Yellow Letter Mail. It works really well. There are some others… Yellow Letter HQ. Yellow Letter HQ works great. So, send them a street view postcard. It's essentially pulling a picture from Google of their houses saying, Hey, is this your house? If it is, I want to buy it.

Sean: What it does, it gets an increased response of curiosity and they're like, wow. And they call. So, the response is great. So, number one, you get all those distress lists and number one, you send them a postcard, but not just once. We'll get that to a second. Now you skip trace the list inside of REI Automator, you can actually skip trace. Once you skip trace lists, it's going to give you landlines. It's going to give you cell phones, going to give you email address. Now you're going to take, you're going to ringless voicemail them, right? There are similar ringless voicemails. You can do like RVM Lead Machine if you want ringless voicemail or Skipio or one of the other ones. Then you're going to send them a text, a text message, right? And then you're going to cold call them, right? You're going to cold call them.

Sean: So, in text you can, I wouldn't do a bulk text, I wouldn't do that. But I would do individually, you can like do Sherpa, you can do individual out of there or just pick up your cell phone and just start texting away. I mean that's, we have just go ahead and text. So the bottom line is, so now you have essentially the distress list and now you've surrounded the seller by multiple different channels or touchpoints. They're getting a direct mail piece, they're getting a cold call, they're getting a text and they're getting an email. And you can use a service like GMass, Gmass.com. It's like 30 bucks and you can send out bulk emails to the seller.

Joe: That comes from your own personal domain. So, it doesn't come with like the unsubscribed link stuff at the bottom.

Sean: Yeah. So yeah. So now you can have, now you surround your seller with your message. So that's, that's called omni-channel marketing. So now the next question becomes frequency. How many times do you hit with a… Do you do a postcard once a month, you cold call them once a week, you send a text once every two weeks? Frequency is the next question.

Sean: So, the collection method mentality essentially means that, have you ever, I know I have maybe missed a payment on a credit card anytime in your life right now. If you ever missed a payment on your credit card and raise your hand, say yes, I've missed a payment on my credit card. Anytime in your life, do they call you once a month or they call you more than that? Do they call you once a week? No. If you ever missed a payment on a credit card, they call you literally every day, three times a day.

Sean: So, collection method mentality tied in with the omnichannel marketing is your frequency is, guess what? You send them a postcard every week. You call them every single day. You text them every single day, you email them every single day. Use the collection method mentality to go that. So then my question becomes this, if you have two investors and one is going to do essentially omnichannel marketing, or maybe they're not even to do omnichannel marketing, they're just gonna send a postcard out and then they're going to send a text and they're going to send, you know, maybe a cold call or maybe they're just doing cold calling or just doing texting and they do it and they do it once or twice a month. And then you have you, it's going to do this omnichannel marketing with the connect collection method mentality, and you're going to surround that seller with your message and you're going to inundate them with your message. Who do you think? Right? Who do you think will get the most deals?

Joe: The inundator.

Sean: Yeah, the guy that's literally been there. Because if you look in, you think of the distressed situations, right? You've got pre-foreclosure, you got, you got high equity liens. We got property tax default. There were clues, right? They're hiding. They're like in their hole, right? So the only way you're going to get someone's attention, especially in this day and age when attention, you have to fight for attention with all the different mediums that people are being able to be distracted by that, if you can do that right and you do that effectively, you can create that frequency with someone I think is what you're going to get their attention. You're going to get that deal and you're going to get more deals with and doing… You're going to have to take massive action to be able to do it.

Sean: We call it beast mode action to be able to make it happen, but if you do that correctly in a fashion, you will get more deals than anybody else. Now that is a core marketing method of our, that's what we do with all of our distressed lists and then we move into non-owner occupants and owner occupants and then our frequency is not going to be as intense when it comes to distress. But because we don't want to blow everybody up. 

But the bottom line is, and you can't do it financially, it doesn't make sense. But we're going to be able to then move into these other different lists to be able to target, to expand our universe and create more leads. So, what that will do is if you want to create consistency, predictable revenue, creating this omnichannel marketing with the collection method mentality, what happens is this is you'll get work deals with, you know, basically sending four postcards and the rest of it, it's on you.

Joe: That's awesome. We did 58 deals in Alabama last year in 2018 and we looked at our numbers of those 58 deals, 54 of them came from the follow-up. 54. Exactly. If you think you can do deals just by sending a letter and getting working the leads that come in, it's not gonna happen. We, if you were to look at our CRM, you can see note after note, after note, after note, after note of follow-up phone calls, text messages, and mainly phone calls. Really just calling people back all the time.,

Sean: It's a collection method mentality. It's like relentless pursuit of getting to a decision.

Joe: So, the thousands of leads that we got, only four of them could we get under contract on that first call… Can you imagine? If you weren't doing the follow-up, we would have only done four deals the entire year. And I haven't looked at our numbers in a while here, but it's similar, I mean the… we've got I think 12 or 13 properties under contract in the last three, four weeks. But it's all, almost all of them are from the follow-up. So important when you're just starting.

Sean: Yeah, same with us too. It's probably, we sit in our Monday morning meetings and we have, each rep has a certain amount of, they have 50 people in their book because that's what they can manage by new coming leads coming in; they're gonna, they're gonna basically put the leads that are essentially dead off into our company follow up sequence we have. So, they're going to have 50 people in the book and that's what they can manage effectively. And it's all done through, through their follow up. And they just follow up with that, those 50 and guess what? They just start popping. They start popping left and right.

Joe: Real quick, we're doing some vacant land flips now and my boys are 15 and 14 and they're helping us. They're just wanting to do it. And what we're doing is we're sending out neutral letters and vacant land is different. The response rates are much, much higher with vacant land. Right. But we're just saying, Hey, call this number, leave a voicemail. And the voicemail, it says there's a reference number on the letter. Right. So, reference the number. They do that. Now my boys take that voicemail. We don't even call the seller back. We send them an offer at like 15 cents on the dollar for what it's worth. Right? But even when we send the offer, we follow up with text messages, with voice messages. And then we send the contact an offer again with a new deadline 30 days later.

Joe: We just keep repeating that every single month. And we're contacting them, reaching out to them at least every week with this stuff. And then there's so many cool…

Sean: And the people are going, man, these guys want my property bad! They're hanging out with their friends, you know, on Friday night and cocktails going, you won't believe this guy wants my property. He sent me a contract, man, you know, he's like, you know…

Joe: Yeah, that's how it works. So, the deals come from the follow-up. Well good. You've been a good friend, Sean. I appreciate what you've done to the industry and what you've taught. You are the first guy that kind of just gave everything away on the farm. You know what I mean? I remember at the time you're coming out with your book, Flip2Freedom. You spelled how to do deals from beginning to end. Nobody else was giving that much away. And you set the, you set the standard pretty high for anybody coming after you with podcasts and books and education. So, congratulations. I appreciate…

Sean: I'm excited about your book!

Joe: Yes, I am too. Where'd it goes? Oh, check this out: REI Secrets. If you want to get it, go to REIsecrets.com. It will be available to, it's free by the way. Just pay shipping and handling.

Sean: Hey, congratulations. How long did it take you to write?

Joe: You know what it is? I did. I have a bunch of podcasts called REI in Your Car where I'm in my car and I'm doing my phone thing, you know, do you see that? Like the new phone there? So, I just took the best of those, got 'em transcribed, turned into a blog post and emails and I put it all together into a little book that people are going to really, really love. And you get it for free, REISecrets.com.

Joe: And as we wrap this up, guys, if you go to realestateinvestingmastery.com, you can actually get all the show notes, the transcriptions. We talked about a lot of links and books and stuff like that. If you're driving, you can go to realestateinvestingmastery.com. Get the show notes, transcriptions, it's all there. Just do a search for Sean Terry, and you'll find some previous episodes that I did with Sean that you can do.

Joe: And then go to the search bar. Do a search for Sean Terry. You'll see the other episodes I recorded with him. Go check out Sean's podcast, Flip2Freedom. Check him out on Instagram. He's always on there answering questions and… “What's up! This is…”, how do you say it? You say the same thing every time. I have to turn my volume down.

Sean: FLIP 2 FREEDOM!

Joe: Like that. Yeah. He says the same thing every time. All right, good.

Sean: Dieme is like, can you chill on the whole Flip 2 Freedom thing?

Joe: So, all right. Hey, thanks again, Sean. Appreciate it. Have a good one, man.

Sean: All right. Thank you. God bless.

Joe: See you guys.

 

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