906 » Doing Deals While Playing Golf?

Hey, what’s going on, Joe McCall, REI In Your Car podcast. I’m actually driving right now to play golf. Yes, I haven’t played in about two weeks. My son got the Rona and he was only sick for one day, but we all quarantined. And so anyway, yeah, I get to play golf. Like none of us got sick. Nothing. And he only had a fever for 24 hours. Really more annoying than anything. And he felt bad because we all had to quarantine. But anyway, you know, it’s crazy.

The last two weeks have been really awesome because we’ve just been spending a lot of time together as a family, playing a lot of pickleball. We we’ve picked up pickleball. We we’ve got a couple of buckets filled in with dirt, put some sticks in it and tied some string and fabric stuff. My wife has a cross to make a net and we bought some pickleball paddles and balls from Amazon and I don’t know, we play an hour to a day. It’s good exercise. It’s fun and it’s cool if you guys haven’t done that yet or, you know, if you want to have some good quality time with your family. Go get a pickleball set.

And here’s my philosophy, too. Like, I want to be really good at all the old people’s games, because then when we’re old, we’ll be like the best of everybody. We’ll be like the most popular old people because we can beat that pickle and bridge and pinochle. And just kidding. Kind of. Wouldn’t that be cool? Like if you’re in your 80s and you’re beating all of the younger 60-yearolds at Pickleball because you’re so good at it and you’ve been playing even playing it for 30 years, 40 years.

Oh, anyway, what am I going to talk about today? Oh yeah. So I was going to talk about some things I got cooking and some things you’re going to be hearing about soon. If you’re on my email list and if you’re not on my email list, you should get on it. Three days a week, we send really good content teaching emails where I’ve taken some of my best stuff and I’ve turned them into written emails where I just teach things that I feel are important to share and more important to understand things that are easy to forget.

And I share these in these emails, you know, about, you know, the portions of making offers and negotiating tips and tricks and things that I’m seeing working in marketing today that are really good. So, you know, how do you get on my email list? I don’t know if you go to any of my Web sites like JoeMcCall.com or RealEstateInvestingMastery.com or those are the two main ones right now. You can just like download some of my free things and you get on my email list and then we’ll spam you for the rest of your life. No, I’m just kidding.

But we do send really good content emails. And if you want to kind of get a good daily digest of good nutritional, healthy information that will educate you and make you wealthy and get my email list. By the way, I wrote a book compiling a lot of the emails, about a third of them. I mean, it’s a book called REI Secrets, and you can get that just pay ship shipping and handling. It’s free. It’s called REISecrets.com. If you go to REISecrets.com, check it out. Somebody told me once that was the tool of Titans book for real estate investors. If you’re familiar with Tim Ferriss.

Now, I think maybe he was exaggerating a little bit. But it’s a really good book. Just daily nuggets of real estate investing wisdom to help you get more leads, close more deals, make more money. So go check that book out. I know you’ll love it. REIT secrets scum. I haven’t talked about it in a long time. OK, so what I know what I was going to talk about in the last three, two or three weeks, we’ve done some pretty big deals. It’s crazy.

Like if you know that when I’ve talked, you know, I used to have a course called Automated Wholesaling. It’s not available anymore, but an automated wholesaling. I I’d started doing this when I was in Prague, living with my family for three months. And then later, while we were traveling in an RV for three months, I created a program. I started doing deals and I started calling it Automated Wholesaling. And it’s a way of doing deals without doing any of the work.

And I stumbled across this strategy by, I was I had an acquisitions manager. I had a local assistant. We were doing a lot of deals. But I was frustrated cause I was working so much and I was still, at the end of the day, only netting forty, fifty percent of the deal. And I thought this is way too much work. I was always looking at my return on time. Right, my ROT, my return on time. So I made a list of all of the things you have to do in a wholesaling deal. And I said, how can I do none of this? So I started thinking, I got an assistant to do the marketing. I got a virtual assistant to take the calls live.

Then I got my main assistant in St. Louis that kind of manages everything. And then I started partnering with local wholesalers. And I started doing that, it must’ve been five, six years ago and I’ve never looked back. That’s like been the only way I do deals anymore. I do the marketing or I pay somebody to do the marketing. Right. And then I have a team that prescreened the leads. And then I send them to friends, local wholesalers. My two sons. And they do the work of flipping the deal. And then we split the profit.

And at the end of the day, I’m looking at my numbers saying, man, I’m still making the same amount of money, but I’m not doing any of the work. It’s pretty cool, right? Except managing the team. I call it automated wholesaling. So anyway, that’s in the last probably three weeks.

We’ve done three big deals. We did a huge land deal. My sons, who are 16 and 15, are working on this. We bought a piece of property somewhere out east in the mountains for ten thousand dollars and we sold it for thirty-three thousand dollars.

And I have some friends who used to do houses that go to my church, were interested in doing some land. And I said, hey, listen, maybe we can partner on land. And so I do the marketing, prescreen the leads, make the offers and then send it to them and they do all the work of selling it. So they helped us with that. We have a split that we’ve negotiated. And at the end of the day, after all of our costs, it’s a 50/50 split. But they’re putting in most of the labor. And I’m paying my boys, too, for their labor and a little bit of the profits I’m giving to them.

So anyway, that was a twenty three-thousand-dollar deal. Is that right? Twenty-three-thousand-dollar deal. Pretty sweet. And then we did have a lease option deal in a little small town of 500 people. Nebraska, a little small town in Nebraska, 500 people.

This was a two-bedroom house, one bath, get this, 850 square feet. A hundred and forty one, I think, to be exact. And the seller, I can’t go into the details because it’s very personal and tragic, really sad. The seller, him and his wife, they had to leave and they yeah, it’s really, really sad. But the seller was super motivated. The funny thing is, when we first talked to him, he was like, I’m not motivated. You know, he didn’t say that. He said, I got plenty of time. I don’t need to sell it right away. I’m not I’m not going to give it away. But we found out, you know, his situation didn’t have much equity. He bought it for 75. It’s worth about 90 today.

So he only has, what, 15 grand in, quote unquote, equity, but he still couldn’t afford selling it through a realtor, and he would be lucky if he could sell it for that price. And it was a two-bedroom house and little small neighborhood. It’s about 45 minutes to an hour outside of a of a bigger city. But anyway, we did a lease option on it, a sandwich lease option. Here’s a cool thing, guys. It’s cash flowing three hundred and twenty five dollars a month. We pocketed three thousand dollars upfront. The difference between what we collected from a tenant buyer. We found a tenant buyer before we even signed the contract with the seller.

And then so we got three thousand dollars upfront. We’re getting 324 dollars a month in cash flow. And there is a like a 15th that we’re selling it for. I forget the numbers. Exactly. We’re selling it for like 95 on the back end in three years. And so we have an upfront profit of three grand. We’ve got cash flow of 320 a month for three years at least. And then we’ve got the back end spread of about thirteen or fifteen thousand dollars. I forget the exact number. So total profit on this deal is going to be about twenty-five thousand dollars.

Not a huge home run, but for a little one hundred-thousand-dollar house, three hundred twenty dollars a month, cash flow for zero money out of our pockets. Crazy. Like those are really good, solid numbers. So, yeah, we did that lease option deal. And then I just got a call the other day from the local wholesaler that I used to do, still do a lot of deals with in St. Louis.

Great guy. Stand up, guys. Integrity’s amazing. I love him. I just wish there were more wholesalers and investors like him. He called me up and said, hey, remember? Well, you don’t remember. But a year ago or so, we got this lead. I’ve been following up with them ever since. Finally got it under contract. I bought it. I put a little work into it.

I’m reselling it on the wholetailing it on the MLS. And yeah. So I’m going to send you a check. He had he title company. Send me a check. Gross. He made about 20 grand on that. And of the 20 I got about nine because he had, you know, more work and he used his own money and he put work into it. So I got less than 50 percent of the profits. A little bit. But I got a nice check for ninety-one hundred dollars. Ninety-one hundred dollars was my check. And I’m thinking, man, I love this automated wholesaling business.

Here’s the point I want to bring to you guys not to brag or not to say, you know, like if you do what I do, you’ll make a lot of money. Like I make a lot of money. I can’t make those kinds of claims. Most people, you know, and I say this. Webinar all the time. Most people who buy real estate information products fail, they don’t make any money. And that’s just the brutal, honest truth. Only maybe three to five percent of people who buy my course or who sign up for coaching in anybody’s program courses and coaching programs. That’s very small percentage of actually make any money doing this stuff. And that’s just the cold, hard, ugly truth.

And why? I don’t know. It’s not because the education is bad. It’s just people don’t take action. And for whatever reason, they’re afraid or sometimes people are afraid of success. What if this works? What if the seller says yes? What am I going to do?

So anyway, I’m not saying any of that to brag. I’m just telling you, this stuff works. It’s amazing. Right now, you have to invest time and money in your in marketing and your education. You have to take this seriously, treat it like a business.

You can’t treat it like a hobby, just like any other business. But it sure beats spending sixty thousand dollars in a four year college degree to learn how to make forty thousand a year. Instead with like three deals, you can make the same amount of money people most people make in a year after a four-year college degree and sixty thousand dollars in debt. You see what I’m saying?

So I believe in this stuff, man. I believe in it. So when you’re looking at your business and all the steps that you have to do to do a deal, just ask yourself bigger questions. All right. Ask yourself bigger questions. How can I do none of this stopped trying to fix your weaknesses. Instead outsource them if you’re not good at talking to sellers.

Partner with somebody who is. If you don’t have the money to invest in marketing, but you’re good at talking to sellers. Then find somebody who does have money to invest in marketing, doesn’t have the time to talk to sellers and partner with them. They can put the money into marketing. You can spend the time into talking to sellers and making offers and following up. Right.

So anyway, where there’s a will, there’s a way. How bad do you want it? Are you going to be just another statistic of somebody that’s, you know, a professor? Are you just gonna be another professional student that jumps from course to course to course and never takes any action, never does deals, you know, never implements what they learn? I don’t want that for you. That’s not who you are. You’re better than that. Okay, so get out there. Make it happen. Cool. All right. Go get my book. REISecrets.com? I talk a lot about things like this.

And I just got here to the golf course. I got to drop my bags off. And wish me luck and wish me luck. I haven’t played in a while. I’m a little rusty. And we’ll see you guys later. Bye. Got my book. REISecrets.com.