SWP: 103 The Deal Machine App: The New Way to Drive for Dollars

Today, we have with us our good friend, David Lecko. He is the CEO for the Deal Machine App that has quickly become one of our favorite new tools, which has basically changed the game completely when it comes to driving for dollars. He is a real estate investor himself and we are happy to have him on today.

Insight of the Week:

3 Skills to Help Master Dispositions
1.) Building Rapport
2.) Marketing
3.) Understanding Closing Procedures

Spiritual Foundations:

2 Corinthians 4:6

For God, who said, “Let light shine out of darkness,” made his light shine in our hearts to give us the light of the knowledge of God’s glory displayed in the face of Christ.

In the world of today it is so important to us as Christians to allow everyone we meet to see the face of Jesus in us. Christians are perceived as having to live through so many rules and regulations. But in reality, we are all sinners and we are just trying to live our best each and every day.

In this show, you’ll learn:

  • David’s origin story
  • How he came up with the app
  • The app he made
  • How the app works
  • His first deal and how it started
  • Where he’s at now in this process
  • The results that he’s seeing with this Deal Machine app
  • It has to be visually qualified with the characteristics
  • The next step he’s making
  • Recommendation on how someone can keep track of where they’ve been


“You really need to prioritise your time.”
“One of the biggest reasons why businesses fail is because of miscommunications with founders.”
“I personally would have a goal this year to be better at just the friend portion.”


Y Combinator


Rich Dad Poor Dad by Robert Kiyosaki
The Book on Estimating Rehab Costs by J. Scott

Profile: David Lecko

David’s Email Address: david@dealmachineapp.com
Deal Machine App

Thanks for Listening!



Brian: Hey, Brett. What is up? What are you doing today man?

Brett: You know, just going out, just Driving for Dollars.

Brian: What are you looking for?

Brett: Just looking at those with dilapidated assets with boards in the windows. Oh, I see one. I see one right there. Where is my notebook at? Where is my pen, where is my camera? I hate you Drive for Dollars, I hate you. This is the Simple Wholesaling podcast episode 103.

Welcome to Simple Wholesaling. A Christian podcast that supply simple yet effective content for real estate investors and business entrepreneurs. Get advice, tips, and tricks so that you can stay true to your values and achieve your dreams with real estate investing you can trust. Now, introducing your host, Brett Snodgrass.

Brett: What is going on all you simple wholesalers out there? Thank you for joining us again on another episode of the Simple Wholesaling podcast. I am your host, Brett Snodgrass, and I am with my lovely co-host, Brian Snider. What is up man?

Brian: Hello, hello. How are you doing today, Brett?

Brett: I am doing great. Just got back to the office, in this glorious Indiana weather, from Driving for Dollars.

Brian: Yes. How did that Driving for Dollars go?

Brett: I hate it, I hate. No, it is funny. I love Driving for Dollars guys. I wanted to explain the intro for you. If you have ever done Driving for Dollars which we are going to explain that in the show, if you have gone out looking for dilapidated houses with tall grass and you are looking for these deals, it can be a pain in the rear. We actually have a guest that we are interviewing today, David Lecko. He has invented an app that you guys are not going to want to miss because this app could change your life forever. It is changing our life here at Simple Wholesaling.

We have been using this app and it is just going to change everything for you if you are doing Driving for Dollars, makes everything super simple s stay tuned for that guys, it is pretty cool. But other than that, things are going well. Just to kind of give you guys a little bit of an update here at Simple Wholesaling and what we have got going on here at the podcast and in our business. If you are just tuning in for the very first time, we are out at Indianapolis, Indiana and we are a wholesaling business and we love it. We are building a team, we are scaling. We have had some transitions here within our company. Brian Snider has taken the place, if you have listened to some of the earlier episodes, he has taken the place of Jaren Barnes who was on our first 96 episodes and now Brian has stepped into our dispositions role and he is doing an amazing job. Give a round of applause for Brian, our studio audience. Yey.

Brian: Oh my gosh, I can hear it through the podcast. I can hear it through the radio.

Brett: Brian, you suck.

Brian: That seem alright.

Brett: I was just kidding. Man, you have been doing a great job. It is just awesome to rub shoulders with you and good friends for a long time now and so thanks for being the co-host man.

Brian: It is pretty fun. Like I enjoy this because I think when we first sat down and started talking about us actually working together, we are like is this a good idea or not? I am glad we did it. I think it is working pretty well. I think you and I actually complement each other very well the way we work in business.

Brett: Yes. I think we do too. It could be, if you are looking at going into business with one of your friends, it can be scary. A lot of fear coming in and David actually talks about this in the show because your relationship is going to change and that can be really scary. Yes, you are right, I think that we accompany each other well because I am kind of maybe the idea person and you really have a great follow through. I do not have to worry about you doing tasks or showing up every day and trying to create other things and managing and you are really doing all that stuff really well which I am not that good at, yes.

Brian: Yes, I mean pretty well. You are kind of the idea guy, I am the action guy, the follow through of like okay. By the way, he has these like huge big ideas of like then will change by week too so I kind of got to keep him grounded in that but then as well as okay this a good idea, how we are going to put this to work? How are we going to make this? How is this going to work for Simple Wholesaling?

Brett: Yes, that is a lot of fun. Actually, I was talking to my brother this past weekend and I said, ‘Hey, Nate. We should go do a vacation with all of our families. My mom and dad, my family, your family, we would take all the kids. We will rent a big house and let us just do it.’ He came up to me and this weekend and he said, ‘How are we going to do that? I just had triplets, they are almost two years old. You have a four year old, you have a two year old, and you are getting ready to have a baby. How are we going to do that?’ I said, ‘Nate, I am the idea man. You figure it out. You do all the logistics. I just think of the ideas, alright?’ That is kind of how I operate.

If you guys are going to go into business with one of your friends, make sure that if you are the idea man, pick someone who has good follow through and logistics and you can find out a lot about someone is by doing a DISC test or there is another personality test that we do at Kolbe. I forgot the website, we will find a website, we will put it in the show notes and it is called the Kolbe index. I remember Brian took that and he had great follow through. It was like a seven right out of ten and my follow through was like a three out ten. My quick start which is that I just get in really fast, I try to get it done, that was like a night out of ten.

That is a great test for you guys that are looking to hire someone else. Hire someone who is going to complement you, not someone who is exactly like you and that is hard to do because we always try to hire people that are exactly like us and that does not always happen.

Brian: Yes.

Brett: But hey, just want to send a shout out to you guys. If you guys love what we are doing at this podcast, if you love the Christianity part, because we have a section called the Spiritual Foundations that people really love or they hate and we do it anyways because we are a Christian company and we like to spread the gospel over the nations and that is what God calls to do. If you love that, you love the insight or you love the guest that we are having, please please please go to iTunes right now, leave us a review and we would love to build that out because we want to be noticed as one of the top real estate investing podcast out there.

Brett’s Insight of the Week

Now, simple tips and tricks that make real estate investing easier, faster, and better. Brett’s Insight of the Week.

Brett: In the insight of the week guys, we are going to be talking about the three skills to master the dispositions. If you do not know dispositions is which I did not know about a year ago, the dispositions is the sales and marketing team that sell your properties. There is basically two departments, there is the Acquisitions Department which they are the ones going out there trying to find deals, trying to get them in a contract and all that. Ten there is a Dispositions Department, they are the ones who are selling the properties to investors. Brian is our dispositions manager here at Simple Wholesaling. He is working with our cash investors, he is building relationships with them, he is sending our properties out to them on e-mails and talking on the phone constantly, building that relationship. Brian, I will let you take what are the three skills that people need to have to master at dispositions.

Brian: Disposition, we are disposing of our properties. We are getting rid of them and how do we do that? These three skills will definitely help you do that and the number one thing is building rapport. That is so huge and that is just across business in general. I think we talked about that in our last episode with the acquisitions team, it is so important to build rapport. Same thing here, if you need to know what your buyers are looking for and then be able to kind of build that relationship with them as well whether it is through e-mail or over the phone or going to have a coffee with them or grabbing a lunch or whatever, building that rapport within.

Find that common ground of something you can, even aside from the business, something that you can relate on whether it is sports, weather it is just vacation trips, anything. Find something to build that rapport with them and just once you have that then it is going to be a lot easier to know what they are looking for, to send them properties, to talk to them, just makes a lot easier. Number two, we are going to go with the marketing, super important. Have a website, have a place to put your properties out there. Website, social media, anything you need and do not be afraid to make up your own flyers or anything that you may need to be able to put your properties out there so you can send them to other people so they can visually see them, they can see the stats on them, they can see the details on them, anything you need to do that.

Then the third part there, the third skill they need to master at dispositions is going to be understanding the closing procedures. This was like kind of my downfall when I started. I just spend a lot of time working with our closing agent, Gary. He kind of sat me down and kind of went through all the stuff with me but making sure you understand your closing procedures. The documents, how it works, the language, all that stuff is super important. One of things I would highly recommend is getting in contact with maybe one or two title agencies that you know you are going to be working with and just seeing if you can set up just a quick little point to go down and just talk with them, let them kind of give you the lowdown on it.

I know all the title agencies that we worked with, they are great and they have actually offered like hey come in and sit down with us and let us help you understand all this stuff. The three things that definitely help you master your skills of being the dispositions, getting rid of your property, selling your properties, number one is building rapport, number two is marketing and number three is understanding the closing procedures.

Spiritual Foundations

Do you dream of a life that is purpose-driven and makes a difference? Spiritual Foundations.

Brett: For today’s Spiritual Foundations guys, we are going to go to some scripture that I have really just really latched on to in my life when I came to Christ. I loved reading the book of Romans, it was written by Paul, and the New Testament. Romans 7 and Romans 8 really have related a lot to me because I have spent the majority of my life really going after things of the flesh. Like talk about the things of the flesh. I am talking about money, women, things that my human mystic desires have and I continuously go after those things and I always have to because, as a person, I am born a sinner and I just continuously go after these things and I have to when I do not have those things it is because I am going after God, I am pursuing the things of God, and I am pursuing what he wants, what he desires for my life. That is when I have the most joy and the most peace.

I was at church this last Sunday and we are actually going through Romans 8 and I just want to read some of this with you guys. I am going to Romans 8. I am going to start in verse five and basically says, ‘Those who live according to the flesh have their minds set on what the flesh desires but those who live in accordance to the Spirit have their mind set on what the Spirit desires. The mind that governed by the flesh is death but the mind governed by the Spirit is life and peace.’ That word peace really hit home with me because when my mind is concentrating on things of the flesh, trying to be the most successful that I can be, trying to get the most money that I can, trying to do something and have the huge ego out there just to promote myself and exalt myself, I do not have peace in my life. I really did not understand this until I read this.

He talks about if we go after what the flesh desires, it is death. It is death to ourselves, it is empty, it is not going anywhere. We are constantly trying to fill it with the worldly things and we end up falling short, we end up empty, right? It is death, it is death, and we all get to that. But when he talks about when our mind is governed by the Spirit, when we are going after things of God, when we are trying to pour into other people, when we are pursuing God with all of our heart, he not only says that it is life but he also says it is peace. That really hit home because I do not know about you guys but I totally get that. No matter what my circumstances are and where I am at in my life, whether this is a business podcast so I will just kind of relate it to money, whatever my bank account says it does not matter if I am going after worldly things and I am going after flesh things, right?

Because my bank account could say a dollar or it could say a million dollars and I still fall short, I still am empty and I do not have any peace in my life if that is my goal, if that is what I am going after. But at the same token, if I am going after Godly things and I am pursuing after God and I am going after the things the scripture says and I am going after his will, it does not matter what my bank account says either a dollar or a million dollars, I have peace. I really want to hit home with you guys because I know a lot of you guys are entrepreneurs out there and were trying to go after these big numbers or trying to be successful as you can and that is okay but make sure you have your priorities in check especially if you are believer, especially if you are a believer in Jesus Christ, especially that, makes sure you do not get your priorities mixed up.

It is so easy to do, so easy to wake up and just go through the motions and not go after anything godly just to go after what our flesh desires and it ends up what the scripture tells us. You can read it right here in Romans 8. It tells us it is death, it is empty. If you go after Godly things, it is peace. We all want that fruits of the spirit, right? We all want that peace in our lives and it is so easy but we all forget because it is free. We forget it and we think we have to work so hard to get this peace and once we reach a certain level then we will have it but it is right here, we have the living word of God right here telling us just go after Him. Just go after Him. Describe for him that he is enough. Hope this really hits home with you guys today. It is a struggle for me just to be real. Some weeks when it comes Wednesday or Thursday, I am struggling because what am I going after? It is because I got my priorities mixed up, I am going after flesh and this is just a good reminder.

I hope this helps you guys out today and as we get into our episode in our interview of David Lecko. He is just a young kid and he has developed this app. You guys are not going to want to miss this. If you have not heard of the deal machine app, this can literally change your business. We are using it and we have gotten three deals from it in the last week from using this app direct to seller marketing. We used to hate Driving for Dollars because it was a nuisance. We have to train people and go through all these different processes and we leave a notebook sitting on our car and we have to go in. He has changed the game for all that so stay tuned for this interview with David Lecko.


Brett: Alright, guys. We are so excited for today’s guests. We have the opportunity to interview David Lecko from Indianapolis, Indiana. If you have not heard of David before, he is the CEO of the blazing deal machine app that you guys have to get your hands on because it is changing the way you find deals and buy properties. He is going to go all into what the deal machine app is and it is one of our favorite tools here. He is also investing in real estate himself and he has a software engineering background so he loves the data and he loves who invent thinks like the deal machine app. Thank you for being on the show today, David. How are you?

David: I am really really good. Thanks so much for having me.

Brian: Yes. We are excited to have you on here today and we have had the privilege of kind of get to know him a little bit, he came to our last meet up. We are just kind of seeing him in different events around here. It has been cool to get to know you a little bit but let us just start off with our listeners. Let us talk a little bit about your background. I know you graduated in software developing, how did you get into doing real estate and kind of what is your kind of your origin story here?

David: Yes, absolutely. I graduated and had some traditional jobs and in the last few years, I have really enjoyed doing some cool stuff outside of work like [inaudible][17:05], I got to visit my cousin in South Korea, and I like to get out to the west coast and do some surfing when I can. I am also really excited though about my career and working on the business. I found this like quite where it is really hard to try to do both and like being nomad really does not land itself well to focusing on career essentially. Real estate was like a vehicle for me to have some of that freedom.

I really set out to acquire enough rentals to have $3000 a month in passive income and that is what I thought would be able to cover my expenses to kind of have the best of both worlds. I will stay here in Indiana, I will set up like a home base maybe somewhere on the West Coast and that $3000 a month from rental income would allow me to do that and kind of travel back and forth between the two so I could travel and also stay focus.

Brett: Wow. That is speaking of a true millennial, David. Just trying to cover your bases.

David: I guess so, looks great.

Brett: So you can go surf on the West Coast and go to Korea.

David: I guess that is a high quality problem just trying to solve.

Brett: No, that is cool man. You decided you are in Indi and talk to us about where this whole idea… I know you have the software engineering background and then what happened in your mind to come up with this app that we are really going to dive into today?

David: Yes. I was putting together a timeline, it started I guess December of 2015. When I graduated high school many years before that, my high school band director gave me Rich Dad Poor Dad. I did not read it until the end of 2015. When I did, that is what turned me on to what real estate can do for you in terms of freeing up your time. There is this cash flow game and I played that. Like that whole year I was just trying to find friends to play the cash flow game with me. You basically try to escape the rat race by acquiring investments. I really geeked out about that at a young age.

Brett: Just real quick, I have heard a lot of people read the book, the Rich Dad Poor Dad. I have never had anyone on the show talk about how they geeked out about the casual game. That is pretty cool though. Instead of asking friends to come over and play euchre cards, you say, ‘Hey. You guys want to come over and play the cash flow game?’

David: Exactly, that is exactly right. I was a total nerd.

Brett: No, that is cool man. Keep going, I am sorry I interrupted you.

David: Yes. No, there is definitely a fun point of the story. I am still down to play it with anybody who wants to but I started looking on meetup.com for a real state meet up. I went to the first one. I do not think you guys have your meet up back then yet but the one I did go to is called INreia and then they talked about Driving for Dollars which was finding properties. I thought if I am going to acquire rentals, would it not be great to just find it at the lowest cost possible? I started looking for properties that were run down that I could acquire then as a rental.

I mean do some fix up and then find a tenant. I spent the next six months just driving around. I remember one session, I had 40 properties that I taken a picture of in Indianapolis. They were all in my phone and I had a tablet of paper with the addresses and then when I came home I was pretty tired so I had dinner and then went to bed. Then like three weeks passed by and I did not even reach out to the owners yet because, well reasoned, just busy with the full time job and stuff. Then I remember three weeks later I drove by this house that I remember seeing and then somebody else was renovating it and it was right there on college between like 28th and 48th street. I meant so somebody else was renovating it.

Meanwhile, I looked down in my passenger seat, my list of addresses was still there. I had not reached out to anybody yet. That was a moment of frustration. I think right there is if I would identify it. I just basically built an app that would you all that legwork for you right when you are in front of the house. That way I would stop procrastinating and then I could also just get data and send out the postcard without having to have a large five of mail to send out. I just do it one at a time and because I was a software developer, I put something just really really basic together to do that in about a week.

Brett: Wow.

Brian: I do not even know what to say. That is awesome.

Brett: Yes. Like I went to play golf this weekend, no I built an app that changes real estate forever.

Brian: Yes. Listen man, that is so cool. Let us go ahead and jump into that app though. Just tell us whatever you can about it. What is it called, what does it do, how much does it cost? Like how do I do it, all that stuff.

David: Yes. It is called Deal Machine. If you guys are searching for that in your Android or your iPhone store, be sure to put in the promo code simple to get some extra mail and the moment you sign up with that simple promo code, you are going to get like a 14 day free trial and then you are going to get $15 mail credit so that you can basically start driving around that same day and then you can just take a picture of the house and then you can send out some freemail just kind of get yourself going. Does that answer your question?

Brett: Yes. We really want to dive into kind of what the app does. Obviously, I just want to explain to anybody out there right now. Driving for Dollars and what Dave was talking about was Driving for Dollars is a huge strategy when you are looking for deals, looking for leads. We are doing a lot of direct mail ourselves so we can buy a list, we can create a list, but the best is when someone can actually go out physically and go around to the neighborhoods and find a dilapidated house that has boards on the windows, tall grass, or whatever. It just looks nasty sometimes and you take a picture of the house and you mail them a letter. That is exactly what this app does. David, why don’t you dive into what does the app do and how do you use it? You go on your phone, you search for the Deal Machine app, make sure to put in the promo code ‘simple’ to get some free money there and how does it work from there?

David: Yes, alright. Basically, you can do a little test on your own house if you want to but it starts by just taking a photograph of the house then step two is to confirm the address. The process in the app works very similar to using Uber. If you have ever used Uber to call a cab, call somebody to come pick you up. It has a map and that it has a little pin and then you just move the map so that the pin is over the house that you took a picture of. Then it will auto populate the address, you do not have to type it in and then you confirm it. Within a couple of seconds, you are going to start to see who is the owner of that house, where does the owner live?

The owner may live there or they may live in California or somewhere else and they just maybe an out of state investor but either way you are going to see that right in the app. Then you can press a button to send a postcard to that owner essentially. The postcards are pretty unique because it has a picture of the house that you took actually on it. In terms of how your mail going to look, it is probably going to stand out more than any other mail this owner is getting because it will have that picture that you took uniquely with your Smartphone.

Brett: Yes, definitely. We have realized that if you could not put a picture of their house on your direct mail piece, it gets a lot higher response rate. We have sent out pieces with Google image on it but as you guys know, people Google image of all the houses you get a big tree in the way or it is just an ugly picture and you can tell it was from Google Earth, right? This is a very physical. They knew that you were at their house and you actually took the pictures so it is really neat.

Brian: I mean this app is highly recommended by us. This is something that kind of just changed the game for us the last two months. We just really started using it, loving it, I think it gets brought up in every meeting now and how we are using this and just it is really helping us out and stuff. Yes, thanks a lot for creating this app David. We appreciate it.

David: You are welcome. Yes, I like hearing my success stories.

Brian: Yes. Let us go ahead and talk this through. I think I just saw on Facebook, kind of a couple weeks ago, you were starting to demo your first deal and stuff. Why don’t you kind of talk us through how your first deal is going and how it got started and all that stuff?

David: Yes, absolutely. We have had a lot of success stories with the app. I got my first success story with the app not too long ago. It was a house that I bought for $4,782, if you can believe that. The guy was living in the house, if you can believe that.

Brett: Wow. Yes. I cannot believe either of those actually. Yes, I cannot.

David: The way it went down was I was driving around in Indianapolis near Iupui and Eskenazi Health. I liked that neighborhood a lot. They have got this project that is going on down there is going to be like a new biotech research center so that is why I like that neighborhood. Then I saw this house. That address was like 1433 Rembrandt Street. It had a tarp on the roof and not just the part of the roof, like the whole roof. I was like I will definitely get and take a picture of this house and that was in August of 2017. I had the app automatically send another piece of mail every 21 days. The owner ended up calling me on November 15th 2017.

He had received three or four pieces of mail from me at the time. Basically, he just gave me a call. He is like, ‘I would like an offer on my house.’ I said how much would you think your house is worth? He said, ‘I do not know, I was hoping you would tell me that.’ I said okay and I went down there to meet him at six o’clock and then I said I am going to take some pictures and then this is going to really help me determine an offer and I will come back in two days and give you an offer.

He said okay and so I thought wow, it is right next to Iupui, I think students would rent a house, your bedroom house like this for maybe $800 or $1000 a month if it was in good shape. Then I kind of put together my repair estimates which I thought would be about $30,000 at the time. I have never done this before so rough estimate.

Brett: Just pull it out your rear. About $30,000.

David: There is this book called The Book on Estimating Rehab Cost actually by J. Scott. That is what I used to kind of price things up. Anyway, I was like okay, well if I got to put in $30,000, I could probably pay $10,000 for this house and then it is going to work great as a rental. I almost offered him $10,000 but then I went to list source.com and then I pulled the data for 800 houses nearby and I was like whoa the average price for these homes is like $7 a sq ft. This house is 590 sq ft, that brought my offer like $4200. I guess I am pretty analytical with that.

Brian: Yes, we can tell. It is alright.

David: That is what I actually showed him when I made the offer. There is this feeling. I was like man I feel bad, he has lived here for 40 years and I am offering him such a low price for his house but whenever I show him the data, that really took the emotion out of it and I felt good about it. It is right in line with the market and then he had bought a new water heater I noticed so I added $500 to that man. He said okay and then he accepted it two days later which was I did not believe it, I was just so excited but then yet I guess to finish the story, he needed to move into a low income housing which takes an approval process. I said totally fine, I am not in a hurry. I would rather you just stay here as long as you need.

I said would you pick what closing date you think you might want, we can do it earlier if you need. He said February 1st and so I said okay. We draft the contract and he signed it. Then I was like man I just do not want him to forget we had this deal. The next two months I gave him a phone call or visit him in person like every Saturday. We can we actually became pretty good friends and he recently called me and invited me to come see his new place which I am excited about doing but I think one of the cool things to me was…His name is Henry and although I bought his house for a pretty low price, he showed me his electric bill was like $450 a month.

I think he just did not have the knowhow to maybe know that was too expensive or how to insulate his house or whatever it may be. But I think in his new place with subsidized housing and like a properly built building, his utility bills have to be much much lower. I just think we are both in a really good position having done that deal.

Brett: No, I think that is awesome. I love that story. Because yes, $450 electric bill for a five hundred square foot house, that is really high. I am just trying to picture you David every Saturday just going out and grilling out with Henry and you are watching the football game.

David: That is exactly what he is always doing when I came over. He is watching football.

Brett: That is cool man, that is awesome. That is a great story. How is it going now? Your demo one and where are you at in this whole process.

David: Yes, okay. I estimated this is so bad. I estimated like $400 or $500 for my demo and then I think I spent maybe $1500 just through learning. I did not get a big enough dumpster. Like one dumpster costs $350 and then like you can get a much bigger dumpster for maybe $50 more but yes I had to get two dumpsters which was total like $700. I learned there always get a bigger size you need.

Brett: You should have measured all the stuff you are going to be dumping, David, and said I need 4.3 cubic yard of dump.

David: I should have but actually I did not realize there were three layers of dry wall in this house.

Brett: Wow.

David: I do not know why. Yes, there is like at least one layer dry wall and at least one layer paneling and then a third layer of like wood/drywall on some other areas too. I just do not know how I would have known that. I guess maybe just break a wall open before ordering the dumpster.

Brett: Hey, it makes sense you know. They got paneling up and instead of ripping it off, just put up a new layer of drywall.

Brian: No insulation but a panel. Yes, it works.

Brett: You would think that there will be actually be a lot lower with those all those layers.

David: You would, you would. Actually, part of the house was like cinder brick on the walls and concrete floors. Yes, I was just like maybe I could have put a fourth layer of drywall up here but then the 590 sq ft house was slowly been getting smaller.

Brett: That is funny. That is awesome. Well, hey man, thanks for sharing that story. Hopefully that goes well for you and your thirty thousand estimate does not turn in like your 500 estimate did of your dumping.

David: I hope so.

Brett: A big expensive 500 sq house. But let us talk about the deal machine app again. I know a lot of our listeners really want to know… We know how it works. You go out and you take a picture of a house, you click a button and it sends that person a postcard and then it also sends them a repeat postcard every month, every 21 days, whatever you want it to do. The postcard has a picture of the house on it. I know it does all of that. What are the results that you are seeing with this deal machine app because at the end of the day we can all go do this but if we are not getting any better results than if we just bought a list off of the list source or whatever, what are the results that you are seeing compared to maybe the rest of the just mass direct mails?

David: Yes. I think for mass direct mails, if you want to find a deal, somebody would probably buy a thousand leads from a place like ListSource.com and then they would send mail to them three times. The cost of doing that would be probably a $125 bucks for the lease from a place like ListSource and then like .79 cents for mailing if you are doing something like yellowletters.com. The total cost would be almost $2500 to do that in order to get one deal. If you are doing a wholesale deal, that could be $5000 to $10000 profit on a low end depending on your market.

Brett: That sounds about right, $2500 per deal, about right.

David: Yes, okay. Okay, good. That is what you guys are seeing on your end. Basically on the Deal Machine side, I think the cost is $600 just to get that same $5000 to $10000 wholesale profit. Here is how those numbers break down. We see that if you add 200 properties in the Deal Machine and then send mail three times, that is what it takes to get a deal. The most important take away from this would be set a goal to get to 200 properties as quickly as possible. Then the cost in Deal Machine instead of .79 cents versus .99 cents to send out each mailing.

When you that three times that is how you come up with the $600 cost. You get like a free trial and $49 for a month access fee on top of that. I really just think when you get the Deal Machine app within your first month, aim to get to 200 hundred properties as quickly as possible and that makes it the most cost efficient and that will help you really analyze how the driving is going to work for you in your market.

Brett: When they are out taken 200 properties, these need to be pin-pointed kind of really qualified properties, right?

David: Really good question. Yes, they have to be visually qualified with some of the characteristics that you mentioned before like use the word dilapidated which made me smile. But yes, after they have got like a tarp on the roof or tall grass, a lot of times I see a mailbox with a lot of mail just kind of overflowing and a couple other indicators maybe. Maybe it has a handicap ramp, that is probably somebody who is older and nearing retirement age and like kind of approaching the time that they want to move out to a facility or if it even has like window unit air conditioners. Sometimes like in my experience that is not a whole lot of cost but it could be expensive for a homeowner and they have been living there for a while in that situation. Those are some of the things that I look for. I mean that is exactly what I mean. Those types of houses.

Brian: That is great. Yes, thanks for helping out with that and hopefully our listeners are going to gravitate towards that understanding what they are looking for as to run out using Driving or Dollars or using the Deal Machine app, that is great. Do you guys have anything like on the horizon? What is next for… I know you guys just kind of developed this app and kind of worked on it. Is there anything you guys have your eyes set on and like hey what can we do next or what else can we develop?

David: Yes. What I have been focused on lately, and you can already do this in the app, is getting a team on boarded. If you have got a five or ten person team wholesaling, you can probably hire somebody in a traditional full time position to go do some driving. But I think whenever you are a one to three person team, a lot of people look for bird dogs or deal finders on Craigslist and then to pay them per lead. I was just doing some experimenting in Indianapolis, I think that is a really big potential that is just a huge pain. We want to really just streamline that on-boarding process and that training process because usually people from Craigslist will have a lot of turn.

I had 18 people on Craigslist to tell me they want to drive and they want to get paid $2 per lead that they add to my app. I am personally like talking through the process with each one of them and they either do not ever drive or they just drive for a couple of days and then they kind of fizzle out. This is a lot of personal time wasted on my end because I train them and on-boarded them but then they do not continue to perform.

We are really working on just streamlining that whole on-boarding process so that the investor does not necessarily have to spend that time and it is somewhat automated. That is one thing I have been really focusing on, like I am really excited about, because if you can then delegate your time away from the driving and get somebody to do the string strategy for you, I think that just opens up the scaleability. Imagine spending $600 to get an extra $10000 deal every month instead of just in the first month. That is one thing that we are definitely working on.

Brett: With that, do you give anybody… Because we actually just sent out an e-mail yesterday and we are looking for a couple people. If you guys are interested, actually the Simple Wholesaling team, is looking for a couple of drivers. I was going to like make it open to anybody but I realized you know what, I do not want to do that because like what David said, it is a lot of time involved to train a bunch of people. I would rather just have two very efficient people. If you are interested in applying for that position here at Simple Wholesaling.

We are looking for drivers for probably the next 30 days. Be a full time, temporary, independent contractor position. E-mail us or check this out a simplewholesaling.com. Also check out all these links guys, these Deal Machine app and David’s info. Everything he is talking about is going to be in our show notes at simplewholesaling.com/episode103. That is a great idea, that is awesome. David, real quick, do you give any advice on when you are sending somebody out because I know in Indianapolis is very niche when it comes to neighborhoods or areas and I know people get turned around.

I used to go look at woods and look at these hundred acre parts of woods and I had have a compass because I had to get turned around, I go this way, I go that way, probably the same thing is going to happen in their car. They are going to go down in this street, they are going to go over here, they are going to forget oh did I already go down this street? Do you have any recommendations on how to someone can keep track of where they have been? Is there any other apps that you may be recommend? I do not know.

David: That is a good question. It has definitely happened to me too. Well, what I have been doing is actually sectioning off a neighborhood where I would want a driver to focus on and I do not have a technology solution out there. There may be one, I have not found one yet that totally solves this issue. I know in the app if you add a house twice, it will definitely tell you and prevent you from adding that duplicate but I think it can be even better. But right now is I actually just print off a map and give to my person who is doing the driving and taking that moment can help me stay oriented if I can see the streets on that map and not pull it up on my phone and the GPS.

Brett: Awesome. I do not even know, this is a question we have had and one of the guys in our team mentioned this. I do not know if this is legit or not but he was talking about an app called Stride. I guess it tracks where you have been. I do not know, it is like a bicycle app, I am not sure but something to check out. I am not sure if it even works, we have not looked at it but that could be something to alleviate some of that. That is something that you might invent too David in the future, on your app, something to think about. There you go.

David: Yes, that is a really good idea. I mean definitely a problem I have experienced too.

Brian: Alright. I think we are ready to move on to the next section, Brett? This is a little section that we like to kind of dive in a little bit and we like to call Going Deep.

Brett: Going Deep.

Going Deep

Brian: I kind of want to touch on this a little bit. I think you guys created this app, you guys are crushing it, doing well with it. How are you dealing with that newfound success? Your app is doing well, you have been on a lot of podcast, you kind of have been traveling around promoting it. Kind of how are you staying grounded and focused on what is important to you with the kind of this success popping up?

David: Well, one really practical thing that I learned from one of my mentors, his name is Ramit Sethi, he teaches this thing called time mapping. Just a very practical day to day thing that I try to do is before I go to bed I mapped out on my calendar how I am going to spend my time the following day. That is been really helpful especially as I am working from either my home or somewhere remote to make sure that I am dedicating the time to the important things that I need to be doing. It is just really easy to get distracted.

I think a good example is maybe just get distracted and an answering like a ton of e-mails and customer calls which we always like to do quickly but then I may go a whole day without actually working on the business. You might hear people say like working in the business as task oriented and then working on the business is like thinking about a bigger picture. Like what is our vision, what are we going to be working on next type of thing. I always try to time block a least a portion of every day to be doing some type of work on the business if that makes sense.

Brian: Yes.

Brett: Yes. I love that. I mean it is always nice to prioritize your days and time is our most valuable commodity. You really need to prioritize your time. We think about prioritizing our money and investing our money here in the stock market, in real estate, savings, tithing, whatever it is and we forget to prioritize and how are we going to invest our time. Is it with your wife or your kids or with friends or in your business and where that is? Sometimes we get unbalanced because we have something that sucks all of our time. That is a great way, time mapping, that is cool. Thanks for sharing that. Next question with this is you started this company with a couple of your friends, right?

David: Yes.

Brett: Okay. I know that sometimes that when you start a business with friends, your relationship changes. I have actually hired friends of mine.

Brian: I think I was wondering for the conversations of like when we are talking about working together like well we are friends, should we do this?

Brett: Yes, I know. Yes, it is like this is going to change our relationship because it just does, right? Now you are talking about work. Talk about that a little bit. If someone is listening and they are thinking about going into a real estate business or any business with one of their friends, what are some obstacles that they are going to come to and how do you guys deal with some of the challenges of separating that business and friendship and all that?

David: Yes. Well, actually I think it has definitely helped us be really aligned because my partner Dave and Josh and I have been friends since elementary school for me and Josh and then high school for Dave and I and Josh together. We have always been interested in business stuff. We have just had countless conversations about business stuff over many years and we kind of know how each other think. I think we just had a high level of trust there so that when Deal Machine became a thing, that it was easy for us to quickly align ourselves too and then continue to just move in the same direction together on this project. It is hard for me to picture going into business with somebody who is not a friend actually. One of the blogs that I read is Hacker News and there is a lot of essays by Paul Graham who started this business incubator called Y Combinator.

Basically, they find like a hundred businesses every quarter and they say one of the biggest reasons why the businesses fail is because of like miscommunications with founders. I feel like if I did not have that eye level of trust to start with, there could be just so many possibilities of where can this relationship go wrong and where my assuming that you are thinking this and I am thinking that and then the moment of truth comes and you do not agree on it so you kind of have to go separate ways. Anyway, I think that the friendship aspect is really good and then at the same time everything we talk about now is business related for the most part so I personally would have a goal this year to be better at just the friend portion if that makes sense.

Brett: Yes. I mean I have heard that time and time again. Couples that work together, they have to separate the business from their relationship. Friends, same thing. Yes, sometimes it can get… I think just really creating that vision in that communication because you might be still thinking, ‘Hey, I just want to make $3000 month,’ right? Then one of your partners or your friends might be thinking, ‘I want to make a $100000 a month.’ You had to be on the same page because the person that want to make this is just different. You might be saying, ‘Hey, I reached my goals. I am going to go to West Coast. See guys, I am going to go surfing.’ They are like, ‘Wait, wait. We got to grow this thing.’ It is just something to really communicate with.

David: Now that you actually pointed that out, I also want to mention I think at the very beginning we did go through that mission setting process but with like a third party that kind of made us think about those things ahead of time and the coach was… They were through the EMyth coaching program and it was based off the EMyth book which stands for the entrepreneurial myth. But I think that was one of the most valuable things that we ever did with them was like have this third party kind of mediate us thinking about those things, that we were on the same page.

Brett: Yes, definitely. I know you guys are killing it. Question, how many subscribers do you guys have right now?

David: We have over 500 like master account householders and then with all their team members combined, we have $7000 people that are using the app.

Brett: That is awesome, that is awesome. I know it is continuing to grow. We are getting ready to really implement it with our team. We are just kind of putting the structure in place. We have already had success. If you guys want to hear a success story, our property manager Nigel has been using the app and he is the one out in the field. He changes our lock boxes, puts our signs out and take pictures of our houses. He is out in the neighborhoods and he has been using the app. He has been doing it for a couple of months and he sent about 400 postcards and he got two deals. We closed on one yesterday and we are closing on one today out of 400 post card which is unbelievable. It is definitely working for us and we have done it very small scale so we are going to really ramp that absolute. Thank you, David, for just creating this and we wish you so much success.

Touch of Randomness

It is time for a Touch of Randomness.

Brett: We are going to ask you a couple of random questions as we leave here. David, number one, if you could go to the amusement park, what line are you getting in first?

David: I am getting in line for The Hulk Rollercoaster. I think that is an Orlando, like Universal Studios, but I am a big roller coaster fan.

Brett: Awesome. You are going to play cash flow in between on your breaks, cash flow.

Brian: Pass the time in line, I like it.

David: That is right.

Brian: Alright, our final question here, super super super important question. What do you prefer here? Pancakes, waffles or French toast?

David: Definitely waffles and I would for sure get the like the special waffle mix. It is like wheat instead of like the traditional white, like white flour. Just because I do not know if it is any healthier for me but I like to think that I eat healthy.

Brett: Yes. You always go wheat.

David: I was to make those choices.

Brett: My mom, she said never go white, you always go wheat. It has more substance to it.

David: Yes.

Brett: Cool man. Well, hey, thank you so much for joining us today. If someone wants to reach out to you, they want to get more information about the Deal Machine app, where is the best place for them to go?

David: Okay. My e-mail address is david@dealmachineapp.com Also, if you just go to our Website, dealmachineapp.com, there is a chat feature and then we are very active on that chat at all hours of the day so we can definitely talk with you there too. It will either be me, Josh, or Katie.

Brett: Awesome guys. Well that is going to be in our show notes so go there right now at simplewholesaling.com/episode103. We are with David Lecko with the Deal Machine app. You guys really need to get involved with this app. If you are Driving for Dollar, not using this app and you do it the old fashioned way, you need to get up with the technology folks and use this app. It is going to crush your business in a good way in the real estate world. Thank you, David, for being on the show. Wish you so much success man.

David: Thank you guys so much for having me. It has really been an honor.

Thank you for listening to Simple Wholesaling. If you enjoyed today’s show, please head over to iTunes, give us a rating and leave a review. Be sure to pick up a copy of our free e-book, This Simple Wholesaling System, by joining our community over at www.SimpleWholesaling.com/OurDashSystem.

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