On today’s episode, Bret and Jaren answered some questions from the members of their meet-up group and those sent online. These are some of the most asked questions from Simple Wholesaling Community. You may be wondering the same things so don’t miss this episode!
On today’s Spiritual Foundations, Jaren shared his encounter with God recently.
Jaren shared how God recently woke him up and talked to him about some things. He shared how he had been wanting to take his time with God to the next level so he has been putting pressure to himself to do various things. Jaren realized that it does not work that way.
God highlighted to him that He just wants to hang out with him. God reminded him the time when he just wanted to talk and get to know Him without any agenda.
Sometimes, in our pursuit of always leveling up our lives in every aspects we complicate things and forget our real intention. It is all a matter of your heart posture behind your actions.
In this show, you’ll learn:
- Financing your first real estate deal
- Deciding when to quit a 9-5 job and to focus just on wholesaling
- Finding an ARV (After Repair Value)
- Best marketing campaign for new investors
- Tax benefits that come with real estate investing
- Things you need to know as a first-time home buyer
“If you want to be truly successful, you are not gonna be able to do it without Jesus.”
Thanks for Listening!
Jaren: Knock knock.
Brett: Who’s there?
Jaren: Boo hoo.
Brett: Boo hoo who?
Jaren: Don’t cry, you little baby. You baby. Baby.
Brett: This is the Simple Wholesaling podcast, Episode 93.
Welcome to Simple Wholesaling, a Christian podcast that supplies 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’s up all you Simple Wholesalers out there, thank you for joining us again on another episode of the Simple Wholesaling podcast and I’m your host, Brett Snodgrass and I’m with my co-host, JB in Hizzy, Jaren Barnes. What’s up, man?
Jaren: What’s up, man? How are ya?
Brett: I’m doing good, doing good. It has been a long week.
Jaren: Yeah, man. It’s only Tuesday.
Brett: I know. It’s not even hump day yet. This weekend, it was so funny, me and my wife, Karen—Christmas is always so crazy, you know. Christmastime, obviously this is coming after Christmas but like we had three parties to go to and it’s been a lot of fun but we served hot chocolate in our local town, Cicero, Indiana. We served 700 people and that was pretty cool. But then we went to one of our friend’s house that night and we got in the car and we looked at each other and we said, it’s like one o’clock in the morning and I actually don’t remember when my wife and I got home past like 11:00. So it was like crazy late.
Jaren: Did you have fun at least?
Brett: Yeah, it was good. Yeah. Good times, man. Good times. How about you? What’s new with you?
Jaren: It’s my wife’s birthday tomorrow.
Brett: Are you going to say her age?
Jaren: Yeah, she’s going to be 30. The big 3-0.
Brett: Really? Wow. That’s a big year. 30 is the new 20.
Jaren: That’s what they say. I don’t know what that means, but.
Brett: Yeah, man. That’s awesome. Congratulations. Tell her happy birthday.
Jaren: Yeah, will do. By the time this recording actually comes out, it’s going to be like a month after her birthday, but when you guys hear this, go ahead and send her an e-mail at Sia@SimpleWholesaling.com to say happy birthday.
Brett: Yeah. Happy birthday, Sia.
Jaren: Happy birthday. We love you.
Brett: But yeah, we’ve got a great show for you guys today. Jaren and I are going to get to hang out a little bit and we’re going to—we host a local Meetup. If you guys haven’t been to our local Meetup and you live here in Indy, please check out Meetup.com. It’s actually going to be on our website sometime, hopefully praying that it is on our website by now and check out Meetup.com. Search for the Simple Wholesaling Meetup.
It is the fourth Wednesday of the month and we’re actually looking for a bigger space. We are in Fisher’s right now at a good friend of mine’s office. He runs an engineering firm. It’s called Flexware Innovation and they have this awesome room downstairs but last month, we had 61 people and that’s not including our team so probably 67, 68 people or something like that and the room actually holds like 40. It was pretty packed.
Yeah, so it was pretty cool. So check it out but on today’s episode, we’re going to be answering a lot of questions from our Meetup that people e-mail us about all the time and we’re going to be going through some of that.
Jaren: So Brett’s telling me to try to keep it short so expect an hour and a half of an episode.
Brett: It’s going to be a marathon. Hang in there, guys.
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: Today’s Insight of the Week, you guys, is basically there is not going to be an Insight because we’re going to be answering some questions so it’s going to be really the meat and potatoes of the show but if I could give any insight, let me just kind of think.
I’m actually trying this new thing and we always talk about reading books and how important it is to read and how wealthy people, they love to talk about books like poor people or people that are not entrepreneurs talk about movies. But they talk about books and the characters in the books and all that stuff and I go through these phases. I’ll read like two or three books in a month and then I won’t read anything for like six months. I’m trying to like build consistency with it so I’m going to try to read a chapter a day. If I can read a chapter a day in a book, that means if a book has normally 12 to 15 chapters, you can read two books in a month.
So I think that’s pretty good. If you guys like this idea, I challenge you right now. If you want to start reading, don’t think about the whole book. Just think about, I just need to read a chapter a day and hit that because it seems like every time you read or listen to a book on Audible.com, I always learn something and I come out and I’m like, oh my gosh, I was in this funk but now the lightbulb’s gone off and I can think clearly and everything’s so good.
Jaren: If you guys are familiar with Michael Hyatt, he’s a really cool leadership in business guy. He has a new podcast related to it but it’s like, go to his website. I forget the exact name of it but you can subscribe and pay a certain amount per month and he’ll actually ship you two books a month. So essentially, the service he provides is there’s tons and tons and tons of business books out there.
How do you know which one is worth reading versus one that’s a piece of crap? Well, he takes that decision factor out of it because he knows entrepreneurs are busy and he reads a ton and he’s a leader. If you haven’t heard of him, he’s like the CEO of one of the largest Christian book publishing company for a number of years and then he branched out on his own and he has like a platform university and a bunch of stuff. He’s a really cool guy.
But that would be a really cool service, I think, to sign up for because he will send you books that are worth reading and he’s like a trusted source so it definitely won’t waste your time. I’ll link it in the Show Notes. For whatever reason, my computer froze as we’re doing this so unfortunately, I’m not going to be able to tell you. But it will be in the Show Notes at www.SimpleWholesaling.com/Episode93.
Brett: Cool. Yeah, that’s a great tip right there. One book I’m reading right now is Never Split the Difference and it’s a really good book. I think the author’s name is Voss. I think his first name is Chris. Sometimes, I forget authors. But anyways, it’s a pretty cool book because in the real estate world, we’re always talking about hey, can you meet me in the middle? Can you split the difference? Or whatever those terms are, and he actually comes from an FBI background—
Jaren: Sorry, guys.
Brett: Where he has to negotiate with kidnappers and people that are being held hostage and he uses a lot of the same tactics he had to do when negotiating with kidnappers in the business world because he could never split the difference. You know, you can’t just—if you have four hostages, you can’t just say, why don’t you give me two? And I’ll meet you in the middle. You have to get everything. And you have to get them to agree to everything you want.
So it’s a pretty cool book and it uses a lot of amazing tactics about asking questions and getting around to splitting the difference and getting to really the point of getting your offer accepted. So that’s a cool book I’ve been reading right now.
Jaren: That’s awesome. You know, I haven’t been reading much lately which is unusual for me but a book that I think is worth reading, probably looking back, one of the most impactful books I’ve ever read in my life was The Richest Man in Babylon. I don’t know if you’ve ever read that book but—
Brett: I started listening to that, yeah. That’s pretty cool.
Jaren: It’s a really short book. You can finish it in like an hour. But it’s just a very simple old school way of how to give context to money in your mind and investing and it’s just like, it’s really, really good. You guys should go and check that out.
Do you dream of a life that is purpose-driven and makes a difference? Spiritual Foundations.
Jaren: So today on the Spiritual Foundations section of the show, I’m actually going to be taking charge and sharing something that I just thought was really, really interesting. I don’t know. Brett’s doing a lasso thing on my camera. I don’t know.
Brett: Taking charge. You’re like a cowboy.
Jaren: Oh. Yeah, I like cowboys. Except I’m vegan. Cowboys can be vegan.
Brett: No they can’t.
Jaren: Anyway, the vegan cowboy. If you’re out there, you should start a YouTube channel. But anyway, what I wanted to just highlight was something very simple, very straightforward. The other day, God kind of woke me up and started talking to me about some things and recently and my—like, I’m sure we all do in my like spiritual disciplines and stuff but I’ve been wanting to take my time with God to the next level.
So I had been putting all this pressure on myself to be like, read x amount of chapters in the Bible and try to start doing like Christian meditation and like this and that and like try to like level up my life because let’s face it, we’re entrepreneurs, right? We’re extreme personalities and we want to be better than everybody else. So like when we apply that to our spiritual life, I’ve noticed it doesn’t really work that well.
Something that God, He highlighted it to me was it was all my fault and all of the crazy things that I do and that I’ve been going through, he just actually just wants to hang out with me. And He reminded me like when I first got born again in high school, I would spend like an hour, an hour and a half with God every morning. As a high schooler, I’d wake up at like five o’clock in the morning and get super excited with like Jesus on my brain. I would just have these crazy encounters and have no context in terms of charismatic stuff or any of that.
I came into faith in a contemporary United Methodist church so I had no grit for what experiences I was having but what was the driving force behind my quiet time was just wanting to get to know God. It was completely relational. It was like I didn’t want to be super spiritual. I didn’t want to like pray for hours to be the elite spiritual guy. I just wanted to spend time with Jesus because he was real and I wanted to get to know Him. So God reminded me of all that and I had one of the most sweetest times with God just talking to Him, just sharing my heart with Him, not making it complicated and not having any agenda. I just put on some worship music and shared my heart with Him and just listen to His heart and all that, you know?
And so I just wanted to encourage you guys with that. You know, sometimes in our pursuit of always leveling up our life in every aspect as entrepreneurs, sometimes we just need to like go back to simple things that, they’re not necessarily the most easiest things but they’re simple. They’re not complicated and they work if you just do them. Especially when it comes to God, like He told me, Jaren, you’re not a monk. That’s what God spoke to me. He said, you’re not a monk. You’re not called to be a monk. I’m not calling you to pray for hours a day. I’ve called you to business.
And He said, if you have the right heart posture, reading business books and listening to podcasts is just as holy and just as impactful as if you were to spend three hours praying and seeking my faith. It’s just a matter of your heart posture. It’s like if you have a heart posture of worship and doing what you’re doing as unto the Lord, then when you’re answering e-mails and when you’re doing business stuff, if this is what God has called you to do, it looks completely different than a monk but it’s just as holy.
It’s just a matter of the heart posture behind what your actions are and what you do. So your distance from God, if you feel distance from the busyness and all of that, it’s because you have like this—you’re keeping God over there and keeping the business stuff that you do over here. But if you incorporate God in the midst of it, it can be very simple. It can just be like, God, what do you think about this deal? God, what do you think about this? Just having a conversation, an ongoing conversation and all that.
So that just really helped me a lot. I hope it helps you guys. It was really, really freeing because I just know now that like as long as I spend like, whether it’s 20 minutes or an hour or whatever, just wake up. I read some Scripture and then I just talk to God and just let God talk to me. Hope that helps.
I got a thumbs up from Brett. I’m super excited.
Brett: I like. I’m going to press like.
Jaren: Like button. Facebook.
Brett: Today guys, you know, with that, we’re just going to hang out. We’re just going to hang out today and answer some questions from our Meetup group. If you guys have any questions, please e-mail us. You can e-mail me at BrettSnodgrass@SimpleWholesaling.com or e-mail Jaren.
Brett: Yep. Yeah, feel free to e-mail us any questions that you guys have. We just want to help you guys out here but we have about a list of ten questions here from our Meetups. So the first question is how do I finance my very first real estate deal? That’s a good question.
Jaren: Yeah I think you go to the Simple Wholesaling Meetups and you just go, hey what’s up, Brett? What’s up, buddy?
Brett: You know a lot of times people ask us how we wholesale properties. We do things a little bit different where we close on them, we take the deals down, which means we actually buy the deals and then we sell the deals. And that’s how we wholesale property. So we actually buy the property so we have to have the money in place to do that deal. Or if you’re a fixer and flipper out there you have to have the money to do that.
I believe that it’s very difficult to finance your very first real estate deal because every lender out there, every private money lender, mom and pop lender or whatever typically wants you to have some experience. They don’t care about if you have a degree. They don’t care about any of that stuff but if you have some experience under your belt that you can show them then that gives you a lot of leverage and a lot of confidence.
Jaren: How much experience would you say? So like take me for example, right? Like I have not—I mean, yeah, I’ve done some stuff with IBuyLand.org, right? But like the last two years, I worked for a company. Do you think that would qualify for experience for me to start shopping for mom and pop investors or do you think that like I need to have some traction actually on my own, doing my own deals before I approach them?
Brett: I mean you have some experience though. I don’t think you need a lot of experience. I think you have a handful of deals that you can show, hey I bought this and we sold it for this. Three to five deals, I think is some experience.
Jaren: So if I didn’t have experience at IBuyLand.org stuff? For our audience, let’s say they’re working for Simple Wholesaling, right? And they’ve never done a deal on their own. Maybe they own like a rental property or something but they’ve never done an actual from start to finish wholesale transaction. Do you think their experience based off of like working for the company would justify like—do you think they would have a fair chance of finding somebody who would work with them?
Brett: I think so. I think it’s all about the relationship. But I definitely think you can leverage if you worked with our company, you can leverage that and say hey, I was working with a company and we did 300 deals last year and I ran this department and so you know, I have a lot of experience in the area. I think that gives you a lot of leverage with that.
But if you’re not working with a company, I would suggest partnering with someone like myself, partnering with someone who has experience and then get a few deals under your belt and then you can leverage even though you partnered with them, you can leverage that experience and say, well, I just did three deals.
Here’s where we bought the four here and we sold the four and then if the person that you’re borrowing from has any knowledge at all, they’re typically going to look at the deal, too. Because worst case scenario, if you don’t perform on the loan then they get the deal. So they have some experience and some knowledge about if it’s a good deal, then that could be something as well.
So I would partner with somebody at first, get a few deals under your belt and then start shopping. But if you have relatives or you have people that you already have a relationship with that have money, then you possibly don’t need experience. This is possibly talking about somebody that you met at a local REIA and they don’t know you from anybody.
Jaren: When do I know that it is time to quit my 9 to 5 and just focus on wholesaling?
Brett: You want to say that one?
Jaren: When God gives you the boot. No, I don’t know. You go ahead and say that one. I don’t know, Brett. Because yeah honestly I don’t know when the best time is so I don’t know if I can actually speak to that question. I mean I guess just processing out loud, a good benchmark would be like if you can grow your side thing to the point where it replaces your income or is giving you an income that you want and you have at least three months of proving that you’ve been making at least your bare minimum needs financially, then that could justify leaving. But it would be really hard to leave that because at that point you have double the income. So I don’t know.
Brett: Yeah, I think it just depends on each person’s situation. Number one, I think it depends on your 9 to 5 salary and how much is that and what’s your lifestyle look like? You know, somebody making $30,000 a year as a teacher or something and they do a little bit of wholesaling and let’s say they made $30,000 in six months wholesaling. That may be a different situation. I would just quit right now and go for it. But if somebody’s making $100,000 a year, then that might be a little bit different of a story.
Somebody said that work your wholesaling business as a side business until maybe you have a year’s income in the bank that you can live off of if you have to. Some people say six months. I know, for me personally, I think I was making about $40,000 a year in my 9 to 5 job. I was wholesaling on the side and I think on the wholesaling business, I was just doing it as a side business. I was doing 10 hours a week, maybe 15, maybe 20.
And I got to a point where I think I made $30,000 that year just kind of working wholesaling as a side business. And I said, you know what, what if I went full-time? And that’s what I did and I crush this. I was making about 75% I guess at my 9 to 5 job in wholesaling before I went full-time.
Jaren: So on that though, like, I know sometimes—I’m curious about your thoughts around this. I know sometimes people thrive when pressure is on, right? So like for those out there are kind of more in the first situation where they’re making like little money at their 9 to 5 and they’re more inclined to just risk it all and just go out there and just hit the pavement running. You know, what would you advise that person to do to kind of like—they’re done.
They’re listening to this podcast. This is the day. They’re quitting. They’re just out. They’re done and they’re starting on 100% feast or famine to real estate. How would you advise them to stay afloat in the beginning months? Like would you suggest them doing something like Uber or would you suggest them like just do it? What would you suggest? Because I know the vast—a large portion of people don’t want to play it safe. Especially if they’re young and crazy.
Brett: I would live, you know, just try to live the most simplest life that you can. I remember that’s what I did. I was living off of like $1500 a month, maybe. Or $1800 a month in my expenses so I was living a very simple life. So I would first try to figure that out.
Jaren: Weren’t you living in your flips or something?
Brett: I was. And I had a little condo. I think our condo payment was like $400 a month or something like that. And I’d say before I went full-time, I would at least have a few deals under my belt. Get some confidence. Get some experience and once you have that taste in your mouth and you know that you can actually do it, then it’s just a numbers game with your land business.
It’s like you worked what, five hours a week or whatever? Ten hours or something like that. What if you worked 40 hours? What if you worked 50? I mean, it’s a numbers game. Times that many hours and that much effort and I think that’s where you can be. So I would get some experience under my belt but once you get a few deals and you’re working kind of a minimal job and you don’t need a lot to replace your income, I think it’s just a numbers game.
Jaren: Yeah, that’s awesome.
Brett: All right, the third question is, what does ARV mean and how do I find it?
Jaren: That’s a great question. So ARV means After Repair Value and it means essentially what the property that you’re looking at would be worth after it’s fixed up. Or if it’s like, I mean it’s kind of irrelevant for our audience but if it’s like vacant land, you probably don’t want to use the word ARV. You would use like retail price but they’re almost synonymous. You might hear like people throw around ARV or After Repair Value and what it means is like what does it sell retail all fixed up, ready to go?
Brett: Yep. So you look at the comps. You look at similar fixed up houses and that’s how you find out what this house might sell for after it’s all bougie or fixed up.
Jaren: Yeah and I mean, this is where I would encourage people to get their license. I am actually being coached by Seth Williams over at RETipster.com in the land business. I want to in 2018 kind of take it to the next level and he and his whole training and all of that for the land business, most people don’t have their license. They figure out their comps essentially like what are other similar properties selling for and they’re like, okay, as long as I beat what everything else is selling for and I can sell it for significantly cheaper, then I’m good.
And that’s awesome. That works great. I mean, obviously, Seth has a great business and many, many others do as well but I know for me, I had a very, very competitive advantage in the land business because I had very solid comps because I had access to the MLS. The problem is though it’s hard to scale, right? If you are dependent on your license, whatever market you go into you’re going to want to have to essentially get your license if you want to keep having access.
But for wholesaling, I highly recommend you guys getting your license just because it makes looking at comps almost like a no-brainer. Sometimes that whole world is kind of nitpicky and there’s some hassle you have to go through but I think it’s completely worth it to have access to solid, sold comps.
Brett: Obviously the whole license question has been around a long time and I have my license. I think it has brought a lot of benefits to myself and my company. Are there some hurdles that we had to jump over by having our license? Yes, we have. But I believe that the benefits have outweighed the bad stuff, I guess. So I think that it’s very beneficial to have your license. Checking comps, having that just higher level integrity when somebody knows that they’re working with a broker. Just things like that, I think, because it’s pretty good.
Jaren: Yeah, I mean, just to clarify before we move on, comps are comparables so what that means is if you’re trying to determine the ARV of a property or the After Repair Value, you would say okay, this property is three bedrooms, two baths, around 1500 square feet so what are other properties within half a mile radius or a mile radius or whatever the closest to that property, that similar bed and bath ratio and square footage and architecture type, so like a two-story or ranch with a basement or whatever? You try to find what other very similar properties all fixed up are selling for and that’s called a comparable or a comp for short.
Brett: Cool. So number five, what are the best marketing campaigns for new investors? We pretty much, the market always changes a bit and marketing campaigns always change a little bit so right now, we use direct mail and we’re finding that that has become competitive. It has. So you have to kind of just—what is going to stand out? You have to find the right piece for you and the right list for you that stands out.
So we’re trying to find more niche lists which include properties with code violations, properties with delinquent taxes, inherited lists. One great website that we’re using right now is called SuccessorsData.com and basically what this website does is it pulls people that have inherited a home. I think it can pull 2000 at first and then you get 200 people per month. So that’s one.
We’re having our VA go through the county, city code violation department and she’s pulling all of the properties with code violations. So those are great lists to go off of for direct mail but again you have to go with the right piece and the right list. Some other marketing campaigns that we’re doing are pay-per-click, Google Adwords, and then we’re really ramping up Facebook.
We believe that Facebook has really dialed into really figure people out. They have so much data on people and what they like, what they search for, and you can also put something on, so if they go to your website, then you can put an ad that’s actually going to follow them around on Facebook. Like it kind of stalks them so they’re more apt to click it again. Just really got it dialed in.
So those are really the top three. And then we really just try to network and work with other wholesalers. That’s why we have our Meetup and we go to local REIAs and stuff like that to work with other people that have deals that we can partner with.
Jaren: And going back to if you are just starting off like if you are a new investor, my suggestion would actually be to look for one of those target lists that can be cheap. So like if you look at the delinquent tax list, certain counties don’t actually have a delinquent tax list like for example Marion County which is the county for Indianapolis, they don’t have a specific delinquent tax list. They just have an entire tax roll that has everything and the kitchen sink related to taxes in it.
But it’s free and if you call down to the city and you talk to the right person, they can send you the entire file because it’s public records. And if you have a VA or if you have time on your hands, you can essentially take probably, a situation with like getting the entire tax roll, it would probably take you a few weeks but if you had nothing but hustle, you can essentially organize that and pinpoint delinquent taxes from that list.
So I would be really focused on niche lists but if you can get the delinquent tax roll, depending on what county you are in, that’s really an inexpensive or free way, depending on what county it is. Sometimes they charge, sometimes they don’t. But if they charge, it’s very minimal.
Jaren: Number six, what are the tax benefits that come with real estate investing? Well, it depends on your strategy, I think, in real estate. So like, there are a ton in buy-and-hold, and we’re not CPAs and I would probably get all my facts wrong. Brett would probably know more than me but I know that there is like the income of rental property is not considered capital gains or something. It’s like a different tax thing.
Anytime you actually own your own business, though, I think that you’re in a better potentially if it’s structured right, a better tax situation than if you are working for somebody. Because you have leverage and then you have write-offs. So a portion of all of my cell phone bills, a portion of all of my miles, a portion of courses that I buy or internet or whatever, all of that is a tax write-off. Especially if you’re doing direct mail or any of that, all of that is considered an expense and is a factor in a tax write-off.
So as long as you have it structured well, I think that being an entrepreneur is always a stronger tax position. But again, we’re not CPAs and we don’t know what the heck we’re talking about so you need to talk to a professional.
Brett: Yeah, I mean this isn’t my area of expertise but like you said, just write-offs. Most people working a 9 to 5 job, they can’t write off their miles when they travel back and forth to work and in this business, you can write off your miles. And like you said, write off part of your home office and utilities, a portion of that, cell phone, marketing expenses, stuff like that.
So it can really bring down that taxable income and that’s really a good benefit when you own your own business. Even if you run as a side business, it can really offset—right now, if you’re working a 9 to 5 job, you’re paying so much in taxes. Well, owning a side business like a wholesaling business or a real estate business, then you can start writing stuff off. So it can bring your tax bracket down and then you can pay less in taxes.
Jaren: Potentially. Talk to a CPA.
Brett: Number seven, how do I structure my business as I start to grow? I don’t really know if you’re meaning—I guess we’ll take it two different ways. So I believe that having some sort of an S-Corp or an LLC is beneficial. You can talk to a real estate attorney about that or you can actually set up an LLC really easily. Get an EIN which is an Employment Identification Number and if you’re the only member, it’s super easy and it just really helps you maybe with some of the liability.
And so I think that’s important. But as far as structuring your business, as a wholesaling business, we basically have three departments. We have the acquisitions department, transactions department, and dispositions department. So really, pick which one of those departments do you not like the most and maybe hire, that’s the first position you’re going to hire out. And you know, your acquisitions, probably that’s where you make a lot of your money. Because you get the good deals and you have to buy it right.
They say you make the money when you buy the deal so be careful, I guess, in letting that go. But you’ll be surprised. Some people are really a lot better than what you are in those positions so if you pick the right person, you can actually do a lot better than you doing it yourself. So I found that out the hard way.
Jaren: I think there’s something said, too, about kind of going to what you want your company to be is really important because like at Simple Wholesaling, we do stuff like the podcast. We do marketing, blog stuff. We do other things that’s not essential necessarily. And depending on what you want out of your business, all that stuff might be considered like fat, you know? Running a small team might be more beneficial. Like right now, I think we have like ten employees or something total. But very easily, Brett could run this thing on four.
I mean, if you really wanted to and still really do about the same amount of deals. But because we exist to give opportunity and we do a lot of other things using this business as a means to reach people and touch lives and things like that, there’s more needed hands in the pot. So I think that’s just something to consider when you structure your company is how do you want to grow? What do you want to be in ten years?
Brett: Number eight, how do I find leads for my first deal? I think that really goes back to the marketing campaigns we talked about earlier. You are always marketing so you always have to put yourself out there. You’re always telling people what you do and marketing. Sending out the direct mail, getting on Facebook, getting online. Scouring Craigslist. Whatever you have to do to market, you’re always bringing in leads and that’s the main thing. Because it’s a numbers game. You bring in so many leads. You make so many offers and you’ll get a deal that pops out of it. And if you treat it like that and do that every day then you’ll obviously get a deal.
Jaren: And I think, too, something that I remember, we talked about a long time ago that stuck with me is you never shut off your marketing. You will have a bad week. You will have a bad month where you have, you do a mail campaign and absolutely nothing happens. And it doesn’t mean that direct mail doesn’t work.
I’ll show you, I have a faulty postcard or mail piece or whatever and you can adjust those things but don’t ever turn it off because the minute that you turn it off, and you know, sometimes people get emotional and sometimes people will be like, I’m spending all this money and nothing happened this week. And they get like, I’m shutting it down. It doesn’t work anymore. I’m going to go do something else. And they get caught up in that emotion and that really is like literally taking your business and crumpling it up like a piece of paper and throwing it down the trash.
No, it’s not a good move. So even though sometimes it’s tough when you’re first starting out, always pay your marketing dollars. And if you don’t have the money for marketing dollars, one other tip. I got started in real estate door knocking. I was in California, I was in the Bay Area which is one of the most competitive, most intense markets to be in and I got—we do a lot more per month here because we’re in the Midwest but like in the first six months of me working in real estate, I got like ten deals under contract in the Bay Area just straight from door knocking. We were very sophisticated and very data-oriented but if you guys do something consistently, it’ll work. If you’re lower on the income situation starting off, put the hustle in. People don’t like to do it but driving for dollars, it actually works. Door knocking.
Brett: Definitely. Number nine, what are some things I need to know as a first-time home buyer? You know, maybe this is more of a retail question. Some things that you probably need to know are, I guess just really the whole process. You probably need to get pre-approved for a loan. You need to know a little bit about how the inspection process works and it’s probably going to take you a little bit longer than what you think.
And on the inspection process, there’s going to be a lot of little items and you don’t have to have them fix everything. So a lot of times, first-time home buyers, they’ll come back and say I want everything fixed. Every house has something wrong with it so just pick the ones that you believe to be fixed that are a make or break type of deal on the inspection. That’s just a few tips.
Number ten, how do I pick the perfect real estate business name?
Jaren: Honestly, don’t worry about that as much. People, when they first get started, they get caught up in the glamour of being a business owner. Oh, like I’ve got to get my business cards and I’ve got to like come up with a cool business name, blah blah blah.
My official business name is Barnes, LLC. And then later when I was coming out with the website, I was like, what’s catchy? Oh, IBuyLand.org. So I did a DBA as IBuyLand.org but my actual official name is Barnes, LLC. Nothing flashy. And if you actually look at all the name brands, their real legal name is always something super generic. I think Brett’s first name was like, wasn’t it your daughter’s name or something?
Brett: Yeah, my first company was Kailyn-N-Kompany spelled with a ‘K’, LLC. So it was super jank but I was still really successful. And that’s what we did so it doesn’t matter.
Jaren: Don’t you also have like LuxuryHome—
Brett: And then my second company in Indiana was Luxury Homes and we were buying $10,000 houses in the hood.
Jaren: Poopy houses.
Brett: I don’t know, so I guess I didn’t think about these business names when I actually thought of it.
Jaren: The key is just get busy, man. Don’t get caught up. Do things that move the needle forward. Good names and who you are and all that stuff will happen as you go. Just don’t worry about it.
Brett: I mean, I’ve sold a lot of properties, and a lot of people—I’ve seen a few actual business names that I can remember. This one lady I think had Flipping Out or something like that. Isn’t that a TV show?
Jaren: No, that’s Erin Hudson.
Brett: Yeah, it’s called Flipping Out.
Jaren: Flipping Out, LLC, yeah.
Brett: Something like that but I think it’s a TV show, too.
Jaren: Is it?
Brett: Yeah, she might have copied that but I don’t know. Something like that is cool but like one out of a thousand, I’m like I don’t remember anybody’s name. So that’s pretty cool. Anyways, that was pretty much all of the questions that we have for the meat and potatoes. If you guys have any other questions, again e-mail us, and we’d love to get them on the air.
And now we’re just going to talk a little bit about Going Deep. You ready?
Jaren: Going Deep.
Jaren: One, two, three. Going Deep.
I just want to say like, I know I’ve been off like for however long we’ve been doing this podcast, like a year and a half or something. I still to this day, like yesterday, I was on a land call and like, “Yes ma’am” dah dah dah, like without fail, people think I sound like a girl. I am a guy, in case you’re a first-time listener. Throwing it out there.
Brett: There you go. All right, so do you want to ask the first one?
Jaren: Yeah, so Brett, how are you able to manage running your growing business with all of the different aspects of Simple Wholesaling and have time for your family at the same time? So how do you manage your family life and your business life?
Brett: You know, obviously it can be difficult at times but I think the biggest thing for me is every month as we are growing the business, I am always trying to see what else I can delegate and having somebody else do something that I was doing. And it can even be stuff in my personal life, you know, like what takes up your time? Paying personal bills is something that took up my time. Mowing the grass takes up my personal time.
Jaren: Who do you have paying your bills because I want to do that?
Jaren: Are you serious? That’s a genius idea.
Brett: Yeah. I have a VA that pays my personal bills.
Jaren: Dude, that just changed my life. When I am in a spot where I can do that, I am going to get me a Virtual Assistant to pay my bills. Dude. Because there’s so many bills that just like pile up and you’re like, did I pay this one or whatever and it’s just like, it takes probably a good, if you’re doing it right probably a good two or three hours a week.
Brett: So yeah, I’ll pile them up and then I’ll just scan them all to her. It’d be ten bills at one time and she has access to my bank account but what’s cool about Chase is that you can give someone access to your bank account but they can’t see anything and they only can do transactions. So they can’t see how much money you have in there or anything like that. They only can do transactions and you can approve every transaction they do. So I’ll send her ten bills at one time. She’ll go through and do them and then I go into my bank account and it says, you have ten pending approvals so I just go and I check them all, submit them, and then that’s it.
Jaren: Man. That just changed my life, dude. For real.
Brett: Yeah, VAs change your life. Roxanne is awesome. She does my personal appointments. For example, I needed to change my chiropractor appointment yesterday and I’ll have her do it.
Jaren: Well dude, shout out to Ryan Johnson at RyanJohnson.com. He used to be a full-time wholesaler here in Indianapolis but he’s actually branching out to being the real estate automation guru guy and he hooked us up with our Virtual Assistant and it was a game-changer. He’ll literally take you from A to Z, hold your hand through the whole process of Virtual Assistants and also automation systems, too. So check out RyanJohnson.com. There’s a link in the Show Notes. www.SimpleWholesaling.com/Episode93.
Brett: And that’s what I’m trying to get to as far as having like the four-hour work week. Not really that but really just trying to automate your life and what are the monotonous things that you are doing that you would rather someone else did? Setting appointments, paying bills, mowing the lawn. Just doing those things that take a lot of time. Start and stop utilities. We have some cable issues—not cable. We have some internet issues at our office sometimes and you know when you call Comcast, what happens? You’re on the phone waiting for like an hour. You’re doing all this stuff. So that’s where like a Virtual Assistant can literally come in and save you an hour out of your day.
Jaren: It’s a game-changer.
Brett: So that’s a lot of stuff. But I still struggle with it, obviously. This year, 2018, if I could really just focus in on my family and try to just be the best dad and just really strive to build like a team environment in my family like I strive in the business, I think it would be a game-changer for my family. And I think I’d get so much more satisfaction out of that if I can just put my focus there and so I understand it’s difficult at times, but each day, you just have to make that decision and you just have to turn it off when you’re at home and at the dinner table. But it’s hard sometimes. I will say that.
Jaren: I think it also depends on who your family is because I have like almost the opposite problem. Like if I shut down work, like I intentionally like, I’m just going to relax this evening, it scares my wife. My wife, because I’ve been really up the last couple of weeks, I’ve been really increasing in my work stuff because like I said, going into next year I really want to beef up the land business. We’ll talk more about all that when we do the rebranding episode 100. Because it’s going to be a brand new podcast. Real estate with a purpose.
But she feels the most loved and most taken care of and the most secure in our relationship when I’m working from sun up to sun down or like working late into the night. So I’m almost encouraged to be like a workaholic. So I don’t know, from the opposite end of the spectrum, I think it just depends on—my wife and I guess maybe her culture, she feels the most loved by me when I’m putting work as the number one thing in my life.
Brett: That’s interesting.
Jaren: Yeah, it’s weird.
Brett: Everybody has a different situation. Obviously my wife likes to feel secure and safe, too, and if I was you know, just trying to make ends meet and really just striving you know, in my situation it might be like okay, we have this. That’s plenty for our family. You don’t need to work more than that. And that’s kind of where we’re at. So cool.
Number two is, Jaren, I’ll let you answer this one—why is it so important for you guys to bring your faith into your podcast and into your business?
Jaren: Well, to put it bluntly, because there’s absolutely no purpose to anything outside of Jesus. That just pretty much sums it up. I’m not a very religious person. I actually kind of hate religion and a lot of people who don’t understand Christianity, they say, oh yeah that’s cute but Christianity is a religion. But I mean, I’m really like not a very religious person. There’s a lot of things, I’ll just be honest, in like mainline Christian culture that doesn’t really mesh well with my personality and my upbringing and I definitely did not grow up in the church.
But I’ve had legitimate encounters with this God named Jesus that has changed my life. And I would be lying to all of you if I didn’t tell you that He’s real and He wants to be involved in your life and if you let Him, you’ll find your true self. Like, our true selves are actually hidden and our lives are hidden in God and Christ.
I know that can sound super fluffy or whatever but very practically, I’ll just say it, we actually, a few weeks ago, I had the privilege of taking some Israeli clients around, showing them some properties. They were from Israel and my church flavor or whatever in charismatic Christianity, there is a lot of honor for the Israeli people.
At my church here in Carmel, the church I used to go to, we would have a bunch of flags representing the nations and then we would have the Israeli flag forward, positioned in front of all the other flags of the nations. Because they are God’s chosen people. They’re who the messiah came through. There’s like all this honor that we have for Jewish people in my church culture.
So with all that, we got to talking about faith and how much I respect and love things about Israeli culture and they actually brought up that somehow, we stumbled across the fact that they don’t believe that God can speak to you. So to them, their relationship to God is a bunch of rituals, a bunch of words, a bunch of things but with Christianity, the miracle of Jesus and what He accomplished is that very practically, He made it so that you can actually talk to God. He made it so that you can have a relationship and actually hear from God, like learn how to hear His voice and He speaks just as much as I speak to you on this podcast and it’s really, really amazing.
So with all that, to just get back to the question. It’s really important because it’s the truth. And there’s a lot of things in the world that say it’s not true. And if you want to be successful, truly successful, you’re not going to be able to do it without Jesus. And so that’s why we give you what actually works. It’s very practical.
Brett: Yeah. Amen. I can’t agree with you more on that. I mean, at the end of the day, it’s really what matters and if you put all your identity and focus into business or your family or people or whatever it is, it’s always going to let you down. It’s always going to leave you empty and hanging and wanting something more because God didn’t create us for that. He created us for Him and He created us to have a relationship with Him and he’s the only thing that fulfills us and completes us at the end of the day.
You can get spots here and there of success and get a temporary high and kind of have that butterfly giddy feeling for a little bit but that won’t complete you. If you put your identity in it, it’s always going to let you down even if you make a million dollars or a billion dollars, it doesn’t matter at the end of the day.
Jaren: Everything in life, the only thing that is consistently true and good is God. Like, this last year, I’ve had so many friends that I thought were lifetime friends like abandon me and go through all this crazy stuff and the only thing that has truly proven with the test of time to be a foundational draw a line in the sand truth is that God is real and that he loves me. And he’s for me. And he’s good.
And like, having that gave me an anchor where you know, because we lost our daughter and stuff and there are statistics and stuff that say that’s one of the biggest causes of divorce. The likelihood of having a divorce after a still birth is like so huge. And like there’s so many things that could have happened out of all that we went through but God was our rock. I’m passionate about it because I care about you as our audience and I would be lying to you and doing a disservice to you if I kept my faith and these things to myself because it’s real and it works. So anyway, I’m done.
Touch of Randomness
It is time for a touch of randomness.
Brett: So we hope you guys enjoyed that part of the show and we’re going to end on a little bit of a random note like we always do so with our touch of randomness, Jaren and I are going to ask each other just a random question.
So Jaren, I’m going to ask you first. If you had to pick a song—have you ever karaoked?
Jaren: Yeah. I’ve never done it but I’ve heard about it. It’s like what people in their mid-30s do like Brett Snodgrass.
Brett: I used to karaoke all the time. It was my thing. Friday nights. So if you had to pick a song to karaoke in front of all of our audience here, which song would that be? You have to perform it.
Jaren: Right now?
Jaren: Don’t break my heart, my achy breaky heart. Don’t break my heart, my achy breaky heart.
Brett: I did not pick that one. I thought it was going to be Justin Bieber.
Jaren: Isn’t that Miley Cyrus’ dad?
Brett: Yeah. Billy Ray, man. Billy Ray Cyrus. You need to listen to stuff like that. You can get more acquainted with people who own land and farms so you need to play that song when you’re pulling up in your pickup.
Jaren: Definitely, if you’re in the land business and you’re vegan, you have lot of obstacles to overcome because like everybody you deal with is a hunter. So it’s really funny.
Brett: Mine would be the song that I always used to sing back in the day when I karaoked, and it was Faith by George Michael. I guess it would be nice if I could touch your body, I guess that everybody’s—
Brett: It’s kind of a risqué song. I know.
Jaren: Yeah, man.
Brett: You gotta have faith, faith, faith. Gotta have faith.
Jaren: I mean, if we’re going risqué I’m going to change mine and say—my mind’s telling me no but my body—
Brett: Man, that was pretty good actually. That was good. That was awesome. Hey, we thank you guys so much for joining us today. We hope that we answered some questions that you guys had about wholesaling or real estate in general and if you have any other questions, please go to our website at SimpleWholesaling.com. Check out our blogs. We’re coming out with some new simple guides and these are basically long blogs that really talk about really in-depth about a certain topic.
We talk about how to get started in real estate wholesaling. We wrote a simple guide on how to find a real estate mentor. Things like that so check that out on our website again, at SimpleWholesaling.com. These are going to be in the Show Notes and if you like what we’re doing here on the podcast, please go to iTunes right now and leave us a review and we appreciate you guys so much. We love you.
Jaren: I love you, bro.
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.