Mcklane Bobbit | The Closers Podcast #7

Mcklane Bobbit pioneered the messy title niche before most people knew it existed. He went from pharmacy tech to medical device sales to closing 5 distressed deals in 4 days while still working a corporate job, and he left that job for good in May 2020. In this episode he breaks down the exact methods, the mindset, and the team structure that run his 7-figure operation today.

Transcript

SPEAKER_01 0:00

Welcome back to the Closers Podcast. Today we are sitting down with a very special guest in OG in the messy title industry, a man who pioneered a really cool acronym we'll get into later, known by Strat. I am sitting down with first generation American, seven-figure investor, community builder, giver, follower of Christ, Mr. McLean Bobbit. McLean, welcome to the Closed Just Podcast, my friend. Glad to be on here. Finally. Finally, man. We've been we've been playing a little bit of phone tag for a couple of months now, but I'm glad we were able to make it work, man.

SPEAKER_00 0:31

Excited to give some value to your crew, your team, and uh any listener.

SPEAKER_01 0:35

So yeah, this will be a lot of fun. We'll jam and get into all your real biz and real deets, man. I want to talk a little bit about um about your professional background, because I know you know we we had a funny kind of back and forth when we had Matt Sapella on for episode three, and you had mentioned you had some time in insurance, you had stuff going on before that. Do you want to walk us through, I guess, the the trajectory of your career and how you got here?

SPEAKER_00 0:57

Yeah, yeah. Um, I'd say the progression from introverted McClain, hey, is he really gonna make his his thing in sales? Um, I actually came from a background in pharmacy okay pharmacy tech for six years, high school, college. Uh I was a pre-med major in college, believe it or not. Wanted to be a physician assistant. Obviously, didn't work out for the better. Yeah. But uh yeah, I I was never in sales. And so I was a pharmacy tech, paid my way through college, and I had some idea that, hey, I'm either gonna go to pharmacy or sorry, physician assistant school, or I'm gonna go be a medical device salesperson, had no sales experience. Okay. And you said I just want to make money, man. Yeah, I'm like, I'm like, I can I'm gonna go make money somewhere. Sure, sure. So somewhere in my bright mind, I said, hey, I'm gonna go get some sales experience, and I went into commercial debt collection. Yeah, like raw. Really? That's brutal, man. And everyone in there, they had been through like two, three divorces. You've got me, just graduated, newly engaged, making $725 an hour. And happy and shiny, new grad, just green. Yes, nothing. I mean, I had a coworker, he was a pastor, and this dude said the F-word so many times. I'm like, do you have to repent for yourself before you go to no be the biggest man? It was awful. But I cut my teeth in it. And I got to learn, hey, you've got to make those calls. Five, six hundred calls an hour. And I got into medical device sales. Okay. And that's where I started really having that epiphany of, okay, what's my life look like? And I was probably 22, 23 at the time, and it was end-of-life product, and it was people in oxygen tanks, and they'd say, Hey, I wish I could drive 20 minutes to go to the grocery store. I wish I could go see my sister down the road because they have these huge tanks. And it was end-of-life stories hearing people all walks of life. They just couldn't do anything. And that really set the tone for my entrepreneurship, but also my sales skills. Yeah. And so it tied together and it really created a crucible for me to go and build out my skills, being able to build out, hey, what's your life look like besides staying in corporate? And I was there for a year and a half, made a ton of money over this over the phones. Uh by the grace of God, I'm telling you, I don't know what it was. This company did a pump and dump, got sued by the SEC, because it's a big thing for medical device. They got sued by SEC and Medicare for fraud. Oh my gosh. And I had gotten let go a month before they got served. Whoa. So just barely missed it. And they they'd done a huge hiring spree, cut everyone, make their sales look good, and then dumped everything. You're kidding. Oh no. And so that was kind of a blessing disguise, and it humbled me and said, okay, I've got what I need to do. What do I need to do? Okay. And of course, like anyone else, I I started looking like how to make $10,000 in a month. Sure. Classic. Yeah. How to wholesale houses. Uh there's no money down.

SPEAKER_01 3:52

I think that's a good thing. Well, how to wholesale houses should say like how to lose $10,000 a month on the side. Yeah, but but keep going. Yeah.

SPEAKER_00 3:58

And uh of course, I was I was driving two hours a day, working eight, and I got into software sales with RealPage, which is a very big company, and I learned a lot on the multifamily side.

SPEAKER_01 4:11

Okay.

SPEAKER_00 4:11

I was actually working Section 8, Litech, all for the Northeast sector sector of the United States. And that really enhanced my real estate side. I'm sure your underwriting probably got very tricky. Yes. Yes. And this was before COVID. Um I actually was working there July of 2019. Okay. Did my first wholesale deal ever. Okay. Very first wholesale deal. And of course, I had very little time. And I didn't know this was messy title at the time. Just, hey, with it, we'd send a deal to the attorney and they go, You can't close this. It's impossible. You go do quiet title. And eventually I had a couple of these deals, like five or six in title. Okay. And I knew these deals were gonna pay. Knew they were gonna pay. Yeah. And the attorney would say, Hey, just go do quiet title. We can't solve these impossible. And I went, these deals have to close. I'm counting on these deals to close so I can leave my corporate job. And I sat down and I said, Hey, Mr. Attorney, what do you need for this to close? Well, we just need this, this, this. That's it. I can go find this person, get him to sign this, and we're done. Yep, that's it. We cleared title on five of those deals in four days. You're kidding. Four days. Yeah. And how much did you make on those? I was like 45 grand. Which is life changing in the city. Oh, it was. Yeah, dude. I was negative 500 in the first on my first deal. Yeah, yeah. It was life changing. I mean, wow. That was my annual salary right there. Boom, done. Off to the races. And uh, I was thankful and fortunate to leave my corporate job in May of 2020.

SPEAKER_01 5:40

Okay.

SPEAKER_00 5:40

What happened then? That was COVID. That was COVID, yeah. Was there anything going on in the world? Yeah. Well, thankfully we had we had started working from home and I cut down my two hour drive time and I had my deals. I had made my annual salary, January, February, March. So I had some good runway. And my wife said, When are you going to quit? You're just milking your job at this point. And she said, It's either now or never. And I already had all my stuff that I'd mentally told myself to check out. I'm like, hey, we're good here. Got the insurance, got everything fixed up, got my runway. And I left May 15th of 2020. So we're coming up on the anniversary. Wow. Six years. Yeah. Um, that was whenever we really buckled down. I said, I've got to run this like a business. And so I sought out some guidance, mentorship, and I said, Hey, how do I make a business of this? Which I should have started sooner. Totally. And I left my corporate job probably about four or five months, just wasted money, didn't know what I was doing. And I really got traction and said, Where did we really make our money? The deals everyone else missed up on. Yeah. They left behind. And we buckled down the end of 2020. Started from there.

SPEAKER_01 6:52

Wow. Yeah. We just messy. Wow. So, man, there's so many lessons in what you shared just then. I think throughout it all, I feel like you've had this really good theme of mindset, right? Because I think most people hear from an attorney or a title company, we can or can't. They're like, okay, we can or can't. And that's the end of it, right? Whereas you looked this escrow officer or attorney in the eyes and you said, no, how can we? Which is a different question. And I feel like that mentality is not um, it's not unique to this group, but I'm gonna point it out, man. I feel like children of immigrants, right? We just we we had to cut our teeth growing up, man. And I know your your family came here from Vietnam, right? Talk to me about how that shaped your mindset growing up with that and and what you carry uh with that as a piece of your identity and and how you think about things today.

SPEAKER_00 7:46

That's actually a really good that's a really good question. So obviously, immigration like being immigrants, uh, my dad came over from Vietnam on a boat. I mean, literally on a boat. That's crazy. And my mom came from Mexico, walked over, she's the oldest of five sisters. Wow. And hearing their stories, learning that they were both orphans, I mean, they came over with nothing. They both didn't know English, things like that. And they instilled a lot of just work, like hard work ethic, which obviously there's a difference in efficient work and hard work. Oh, for sure. And seeing them do that growing up, okay. I had the work ethic of physical, but it became how do I be more efficient? How do I either 10x my productivity or how do I not be mom or dad at 60 where they're working hard and they're like, just work more hours, work more hours. No, no, no, no. There's a better way, yeah. Yeah. And so seeing that in them and also seeing the difference in like my friends that grew up in the US, hey, parents are fine, whatnot, it's a very different mindset. And you you essentially have the I won't take no, but also I'm not gonna lay down. Yeah. So I wouldn't say privilege, but it's a uh try me if you can.

SPEAKER_01 9:00

Yeah, man. There's like this um, there's like this urgency too with I think immigrant mindset where like if there is an opportunity, you strike. You know, I think when so my my mom, uh my parents came from Nepal, right? So third world country, just like not the same opportunities. Um, where my mom grew up, she was in a small village and like her family was considered wealthy because like they were in a stone house literally. Yeah. And it was like, you know, it's it's one of those things where like when you have that as perspective and then you move to the US, which has its faults like any other country, but the opportunity here, if you're willing to just like really put some elbow grease in, man, is it's different than anything else in the world. I don't think people really capture that. And so it's so fascinating. I I love chatting with other, um, especially like first gen, you know, children of immigrants, because we we carry this like almost Asian guilt, right? Of like the time on, I should be doing more. Um, but also there's this fire under us at the same time. Now, I think something that I really have always respected about you from what I've seen online is um you've done a great job building your businesses, right? Uh, but you also continue to prioritize the Lord, your wife, your daughter, right? Talk to me about how you view your work and I'm gonna use life balance maybe for lack of a better term.

SPEAKER_00 10:23

So it's funny you say that because I always think that on interviews is you see the interviews with guys that they're hey, I've been in business, grind, grind, grind, and we all got into business for some reason. Whether financial freedom, which at the end of the day, it's all freedom. Totally, it's all it is. Um, but you see a lot of guys that they get into it, they get in the weeds, and mind you, there are grind seasons where you have to put it in. I didn't watch any movies or TV with my wife for the first two years of our marriage. Wow. I mean, she was like, he doesn't watch TV, doesn't he? All he does is work. Okay. And it was me door knocking something like that. Sure. So, like, we adopted my daughter. Okay. I don't know if you know that, but yeah, we adopted her uh about four years ago. She just turned four. And congrats to her. Yes, yes, and I knew that we'd always have like a family, wouldn't it? And I built our business as we were going through fertility issues. And that's what really set the fire to go, hey, I'm the husband, I need to provide. Yeah. And you feel that guilt whenever your wife goes, Oh, we'll never be able to afford that. Which I was working my W-2 at the time. Yeah. And you go, I've got to make something happen.

unknown 11:27

Yeah.

SPEAKER_00 11:27

And so you you get it done. That's all you do. You get it done because you're immigrants. Yeah. There's no other way, man. Exactly. And so I always had the vision of build the business around the life you want, not let it run your life. Okay. Because I've seen that. Hey, we're working 80 hours a week. Okay, well, what's the point of owning the business if you can't delegate or hey, I want to have off time. Totally. Uh, I want to take calls after six o'clock. I mean, the first two, three years, you have to make those calls to do that. And so one thing I've really taken pride on, especially our family, is we have weekends off, we take our time, we'll go on a two-week vacation we just got back from. That's awesome. Um, where were you guys? Uh, Europe. Europe. Okay. Yeah. Yeah. And uh a lot of guys, they don't, they're not able to do that, or they don't, they're not present with their kids. Like, yeah, I'll go take my daughter to school in the morning because that's what I want to go do. Totally. I'll go to the park or take her golfing. I mean, that's literally why we do what we do. Yeah. And obviously there's a time for it. If anybody's like, oh, you got to grind, grind, grind, you do that, but whenever it's family time and that's what you want, there's a ton of guys that are very successful business owners, but they're, lack of better words, horrible fathers. Yeah. They're not present. And you have to really understand is that what you're there for? Totally.

SPEAKER_01 12:40

As um, as your daughter's getting older, happy belated birthday too. Yeah. She just hit four. Um, you know, that that that's the age where you can start to have really like some conversations with your daughter, right? I think prior to that, it's it's a lot of gobbledygoo, right? And now it's it's to the point where you guys get to talk.

SPEAKER_00 12:56

Yeah.

SPEAKER_01 12:57

I'm sure you're already thinking about this because I'm again, I'm not a parent yet. God willing, we're hoping to hear soon. But um, I think the I I see this with so many parents where those first couple years, especially the first two, you're like in survival mode, you get out of that, and then it's oh, like we're not in diapers anymore. This is different. Uh, and then you're you're now your daughter's four, and you almost start thinking ahead of like, wow, these years went by quick. My question for you is like what lessons do you want to be instilling in your daughters while she's still obsessed with daddy for like the next decade, right? Like, as as you are being intentional in that time that you're spending with her, like what comes to mind and the lessons you want to leave her with? Yeah.

SPEAKER_00 13:36

I've seen you make a movie on that, but at the end of the day, it's just being a good human. Yeah. Cause like I can give her all the money, the laws, spoil her, which she will be. Um, whoever marries her, I'm sorry. Sure. Just kidding. But um, it's just being a good human because it costs nothing. So I can teach her whether we have money, don't have money, whether you come from background or means like that. It it costs nothing. And it'll take her very far in life to take the time and be very understanding people's situations, being able to go, hey, where can I help? Where can I be of assistance? Or what can I do to help change this situation, this person, whatever might happen. Totally. Because a lot of kids right now they don't understand, hey, my actions are affecting other people. Right. And if that's anything I could show her is hey, dad is able to be here, be present with me. That's what I want. That's what I want to strive for my my children. So if anything I could show her, that is those two things. Let's be present.

SPEAKER_01 14:37

Hey guys, quick announcement. If you're watching this, you're probably a land investor. So I want to meet you in person. If you didn't hear, we're doing our third land scaling summit this fall, October 15th and 16th in Dallas. We've got the biggest room we've ever rented to bring in the best minds in land. So if you're looking to sit down with several big names in the industry, myself, Seth Williams, Klay Hepler, and so many more, I'd love for you to come to the land scaling summit. We're going to be touching topics like growing your business in a way that you love. So it doesn't have to be big teams, but it can be big profits. So doing things that are more niche, like we're talking about in this video, how to actually do subdivide and value add deals without losing money and so much more. So if you're interested in meeting the best group of land investors out there, meeting in person and getting to be in the room where these real conversations happen, check out the link below to the landscaling summit. It should be landscaling summit.com October 15th and 16th here in Dallas. Can't wait to meet you. I love that, man. I love that. You're uh I think a really good example of somebody that like wants to multiply good in the world, right?

SPEAKER_00 15:44

A little bit of good, yeah.

SPEAKER_01 15:45

Yeah, no, I love it, man. And I I feel like I go back and forth between I love being able to dive into like your mental, your background, but I also know people here want to hear about, you know, your business, I guess. And so let's uh let's start to dive into it. So um, you know, you you were smart enough to get a business coach, you identified, hey, the deals we made the most amount of money on were the ones that you know people were walking away from, right? So you got into messy title before it was even really a niche, yeah, before anybody knew it existed. Uh, I think the craziest I heard about Messi Title was, oh, okay, I could pay an attorney to go through probate if I've got some airship issues. Or um, I might, you know, try to get an easement on the landlocked property because I was in land, right? Yeah. Exclusively. And so that's pretty much it when it came to curing title. I didn't know there was all these other ways that you know you and I are familiar with now. Um, walk me through when you started the business. Were you already living in Texas at the time? Have you always been here? Okay, so sweet. All right, you all had the advantage. Yeah. Yeah, no kidding. As you began your career, right? Walk me through your first couple of deals in Messi Title. What did those look like? What were you going after? Did you have any idea what you were doing? No, no. Do any of us?

SPEAKER_00 16:55

So we got some we got some time for this, right? Yeah. So my first deal, again, July 2019 is the kind of the timeline. Yeah. First deal. Um, if you ask RJ Bates this, he'll be like, oh, I know McLean. I remember his days. Sure. So I was working in a corporate 2018 through 19. For like seven months, I tried to wholesale. And our local area, it was trash at the time, what I thought. Because again, mindset. Mindset. Yeah. And I would drive to Dallas, hour away, go door knock for an hour and drive back home. Dumbest thing I could ever do. Trashiest model you could possibly run. Yes. The the worst efficiency. Um, or I would just stay in Dallas, door knock. Yeah, there's no opportunities. And I'm telling you, I see with even with my mentees, you get what you go looking for. Totally. And I would go door knock in Dallas because there's no deals where I live. Trust me, there are. And boom, like seven months later, find a deal in my local territory, just driving for dollars. And my first deal, I had negative $459 to my account. Told the late, again, horrible at negotiations. I didn't even start software sales or anything or medical device. And we drive by and I'm like, there's something up with this house. Like just something off. Sure. And I driven, was it a driving for dollars app, like everything? Yep. And I went, there's something up with this house. And it's a trash can, whatever. Call her. She's like, Yeah, this house. My brother, he won't even come to see me because that was my mom's house. It's been sitting there for eight months. We've done all the affidavits. We just don't know what to do next. I kid you not. Clean title. You're joking. No, first deal. Yeah. First deal. And they had eight siblings. One was international. So that was our first deal. That went. Hey, is this a fantasy land to believe land? Total lay down. Okay. Mind you, at the time ARV is on the house like 140, 130. Sure. And I'm like, look, I can give you 23 grand for this house. And I kid you not, AJ. She goes, House 41 sound. And I go, let's do it. And then negotiation master. Yeah, boom, done. We're off to the rates. And you know, in her head, she was like, five grand an air, right? Five grand a person. Oh, Shami's getting it all. Oh, yeah. She dubbed all the paperwork. Wow. And she's like, yeah. And she goes, Well, there's an old mobile in the in the garage too. It's got 200 miles. Um, can you buy it for an extra thousand? I go, Yeah, let's do 42. 200 or 200,000? No, no, uh, 42,000. 42,000. So she went from 41 to an extra thousand. Oh, oh, I'm following them. Yeah. Yeah. If we would take the car for you. Yeah, yeah, yeah. And uh she's like, sure. Yeah, no negotiation. Man, we got a car. Yeah, yeah. I didn't even know what to do with it. Yeah, right. And uh, that was our first deal, made seven grand in 14 days, had no idea. That's great. Second deal, four days later, after the first one was punched. Wow. And I'm telling you, whenever you strike when that first deal's there, I saw right then. Yeah. Um, first or second deal, it was a brother and sister. They didn't negotiate, didn't talk to each other. I was dealing with the sister, which was the hothead. Ended up getting them both together, and I scheduled their signings differently. They didn't know they were actually cooperating. Okay. Um, really quick deal. Dude, we were done in like 10 days. Five grand. Buyer walked in with me. He's like, Yeah, man, uh, mind you, the house was probably worth like 250 after he was done. He's like, Man, I can only do like 45 grand for this one. Said, okay, well, can you do 55? Make it worth my while. Came back, told the seller, hey, I'll give you 50. Done. Sure. Easiest deal ever. Yeah. Easiest deal. Mind you, it takes me like 10 months at this point. From from fantasy lane to belief lane.

SPEAKER_01 20:35

Yeah. But it's crazy, man. As soon as your brain, what what was that saying you said about with your clients, what you look for is what you find? Yeah. So what you go looking for. Yeah, it's it's crazy because yeah, there's like that reticular activation system in your brain, right? Where quite literally, man, like, I was talking to um somebody who had gone through our mutual friend Logan Fulmer's program, right? Nothing but good things to say about him. And um this guy had been through his program and told me, dude, I like, I was ripping through the Dallas list. We couldn't get a single deal. It's so competitive. I was like, brother, I've pretty much only ripped Dallas and I'm I'm about into 30 deals. I've gone full cycle on about 15. This was a few months back, you know. Like, I'm like, what? What do you do? What do you mean you're not finding he's like, there is no deals in Dallas. I'm like, keep telling yourself that, brother. Yes, yeah, I got plenty of deal. Like, I could pick up the phone, probably get one for you here in a couple hours if we needed to, you know what I mean? So um it is so funny how like if your brain looks for it, you just it you just know how to like it comes together. Like, I don't even know how to explain it, but it just happens that way, right? It's the same principle of like you go looking for red cars, you see red cars, you go looking for deals, you'll find deals. Yep, right, which is one of those things where I'm sure I'm gonna get some troll on the internet that's like, okay, guys, you go looking for deals, you'll find deals. Oh no, no, dude. We got Zoom called live acquisitions. Yeah. Yeah. I I think I've seen you post about that, man. That's pretty sick. Uh, why don't you talk about that a little bit? Like, I want to understand this is for me selfishly now. Let's talk about. Let's talk about your data. Okay. What kind of stuff are you targeting that is actually getting you to I clip the deal within like four phone calls or whatever that crazy clickbait that I see you post? No, no, no.

SPEAKER_00 22:13

We got the full Zoom calls. Yeah. 30, 40 minutes. I love that. So again, our our base fundamental for us is tax delinquent. Tax delinquent. That's the I hate tax foreclosure, which some people say differently.

SPEAKER_01 22:24

Yeah.

SPEAKER_00 22:25

Chris Burns is a very good friend. He will swear by tax foreclosure. Sure. Um Chris Burns has money though. Chris Burns is also that DC. He's got that. Yeah, he is. He's DC person now. Yeah, first to get after it. Um, you'd think he's like an immigrant.

SPEAKER_01 22:41

His foot's on the gas, man. I respect him a lot. And I think he's just he's he's so good about understanding the different nuances of business. I think that the folks that do love the foreclosure list, you just have to be ready to have a lot of liquidity. Because and that's what I meant when I said, you know, he's he's stacked is um you just you have to be able to dump four 40 grand, a half million like that if you're gonna get into some really good for foreclosure deals because they're they're getting foreclosed on because they're really behind on stuff, yeah.

SPEAKER_00 23:06

Right. So, anyways, but tell me more. Tax the link. I'm glad you said that because I also that's one thing I teach in my group too. And why I like it again, you build the business around your life. Right. So what's your typical tax foreclosure? Hey, I got two, three weeks. All right, now I'm dropped everything to get this thing done. Okay. If you want to go to your kid's soccer game, okay, you're not doing it. So what does McLean not like doing? Dropping it, okay. Let's go do that. Yeah, that's fair. That's that's why we don't hit it. I literally made my ultimatum. Hey, I do not want to drop everything I got for someone who's a professional procrastinator. Literally. And so I don't do those deals. So if you're going after tax foreclosures, have at it. But no, tax delinquents are base model. And you have to really think about this is uh, okay, tax delinquency. 80-90% of it's gonna have no mortgages on there. Yep. Okay. Only guarantees in life, death and taxes. It's true. Okay. I've got a pretty good basis now, and have some good luck if you're going after high, was it uh high equity, low equity list. Like, I'm not going after that. So on our data perspective, which we show how to do it, obviously, it's nothing super fancy. It's just how do you think about this data? Because if you go look at a tax delinquent list, probably parameters are hey, let's look at appraisal value years behind. Is it estate? Is it deceased? Which is what a lot of people do. Totally. And so what we look for is what are we fishing for today? So I don't know if you're a fisher, like fish anything. I do, yeah. I'm from East Texas. I grew up in Indiana, so we fish. Okay. Yeah, yeah, yeah. So like I have another saying, again, you'll see this is if the fish aren't biting, you change bait. Okay. Yep. If they're not biting in that pond, you change pawns. Yeah. So if you're in Dallas County, you're like, I don't have any deals, can't see any deals, okay. What is it? Is it because you're chasing the people that live in the homes, they have deferrals, things like that? Or is it, hey, you're chasing everyone that says estate of, and you're not thinking, hey, what about all the people who their kids weren't uh responsible and told the county, hey, mom died. Yeah. Here's a death certificate. Oh, let's update the estate of. Because a lot of people pass it up. They will go for estate of and they don't realize there's people that don't update it. Totally. Or they don't skip trace it, or the names are different. And so we show obviously how to do it, but we'll break it down by again, we will break it down by name, mail and columns, legal descriptions, which a lot of people don't do that. Okay. And then we'll also do uh what's it tax suits, obviously. And then, okay, how many years behind? Our sweet spot's seven to fifteen years. Okay. And the reason to fifteen? Seven to fifteen. It's kind of a lot, dude. No, no. And the reasoning behind it, and also the conversations are different. So Okay, interesting. Okay, keep going. I'm loving this. So seven to fifteen gives us a wider range. Yep.

SPEAKER_01 26:01

So it also gives you enough delinquency that you have a higher signal that there's probably something going on.

SPEAKER_00 26:07

Yes. Yes. But the generations that have failed at it, now you're talking, hey, dad could never get it done. It's gone. So the reason we cap at 15, we do have some variances, but at 15, okay, if you have someone that was 15 years behind on taxes and they were 90 at the time, 80. Okay, I need a witness that knew them back 25 years ago. Okay.

SPEAKER_01 26:30

You're gonna find somebody they played cards with that the neighbor knows. Like we we've had to go deep for sex witnesses.

SPEAKER_00 26:36

They have dementia, like what do we got? What do we have left? Like, and I'll tell you, Facebook groups do help, garage sale groups, the biggest thing. So interesting. Okay. So we cap ourselves at 15, but on seven, typically the five to seven years is where you start seeing go, man, you have the first generation that's dealt with it. They're five to seven years into it, and they go, I've I've spent my attorney money, I've tried to do it, I just can't get it done. Oh if you can make it work, I'd be willing to cooperate. Yeah. And so we see a lot more acceptance rates at seven to fifteen.

SPEAKER_01 27:10

That's so interesting, man. It's actually really cool you say that because you know, we just we do um two years and up. Yeah. And I've I've gotten tons of deals, you know, that um are two, three, four, five years behind, tax lawsuits, Dallas County, so things move a little different, right? But uh, I definitely like have multiple first-person accounts if I'm on the phones and they're you know, that one of the most common objections is um like we're dealing with it. Yeah, my attorney's working on it, which I always try to sniff through of like, okay, are you really working on it or are you just trying to get me off the phone, right? Yeah. But I do think there's actually been a lot of cases where there's some truth to them working on it, to which I try to have them like connect me with their attorney, ask what their plan is, how long's this been going. But sometimes you see that good. Like, um, we've got a deal we just finished up where it was 30,000 pounds on taxes. They had actually just opened the probate. So I ended up partnering with the heirs, but there were two sets because there was like first marriage wife died, and then second marriage had two more kids. I was working with the second group of kids. Yeah. And the the the way it played out, man, is uh the first set of kids were very mad at me when I got when I got into the deal because they had their lawyers ready to go, they were ready to work through it. First set could not figure it out. Younger, dumber, just like, you know, didn't have the means to do not have the me. So they got a state assigned attorney. Things were moving slow. I was like, Oh my word. I can put money in your pocket like soon. We had the whole deal. I got it locked up while we were in Scottsdale. Actually, I was at a house with like 15 guys. We got it all in video. Um, they got us inked then at Logan's event, and then we just dispoed it two weeks ago. Actually, as part of the dispo, the buyer met me at a bank and gave me 70 grand in cash and the rest in a cashier's check, and then we went to title. It was nuts, dude. But I've got a photo of it. It's funny me with a Ziploc bag of 70 G's in cash. This this business is crazy, man. I got it all reported. It's all reported, it's all right. You know, I'm just a judge. Yeah, buyer worked at one of them restaurants where they uh their their clients tip a lot in cash. Yeah, we'll just leave that there. But anyways, I bring that story up because even in that scenario where like I made the deal work, there was a lot of BS I had to work through because they were trying to figure it out. Yeah, right. And it's like, oh, if I hypothetically were like four years later in the process, they would have given up, yep, is what you're saying, right? They've already spent their seven, eight grand on attorney fees and they go, Yeah, we're done.

SPEAKER_00 29:28

I'm done. Yeah. That's so interesting. Okay, keep telling us about this list. So and it's it's the same list you have. Yeah. Everyone has it. Uh and I I can literally show everyone in their county, like, okay, here you go. Um but so you're going non-obvious death, seven years delinquent. Basically. So we start with two. You start with two. Two, yeah. Like we're gonna keep it. Seven to fifteen is like the sweet spot. Yes. Got it. We'll pull two, two years or more. Um, but like everyone looks at the list and they go, deceased, estate of years behind, appraisal value. But no one looks like it's easy. Yeah, honestly. It's it. Yeah. And no one looks at little stuff like, for example, um, some counties they have the legal description. They have per divorce decree. Okay, but it says 100% ownership. Okay. Well, let's go pull the divorce decree. Yeah. Wife gets 50%, husband gets 50%. Okay, or undivided interest is in there and it's at 100% on the county. So, like, that's little stuff there is we look at each column for the data instead of at a property level.

SPEAKER_01 30:26

Do you just have your VA scrubbing? Like, how how are you cross-referencing that stuff?

SPEAKER_00 30:30

Yeah. So they'll scrape the data. Okay. And then we have our template for, hey, here's what you look for in the name column, here's what you look for in the mailing column, here's legal description, here's uh tax suits. Where's that at in the timeline? Okay. And so instead of just looking at it from one line, we're looking at it every vertical on that spreadsheet. Okay. So everyone else is like, oh, I'm looking at one, two, three, main street. It's deceased owner, seven years behind, two hundred thousand dollars appraisal. Okay, probably gonna go after it. And so we will cross-reference that. One, we color code because I love visual. Yeah. So we color code, and then we also stack in like RESIF, drive, things like that. And so for us, if we see where it has a couple different parameters, for us, a high target, high value target, it's gonna be undivided interest, out of state, or PO boxes. Okay, PO boxes or apartments, um, pretty much anything where it's other like anomalies. Okay. Okay, so like mailing address, CO Mary Smith. Okay. Most people don't like the mailing address. Like who whose name is in the mailing address? Yeah. Or attention of. And so we look for those anomalies and we go, okay, this whole row is lit up. It's all of our flags here. There's probably something here that's wrong. Yeah. Or something doesn't make sense. Because you have a lot of situations where mom lives in a secondary, tertiary market, they get sick, they move in with the daughter that lives in Houston. Daughter thinks they abandoned the house. All right, don't care because that house was trash when she was a kid. Yeah. So now it's definitely trash. Yeah. That's and then okay, well, daughter lives in an apartment, she lives in a suite or whatnot. Mom passed away. Who gets the mail? Yeah. And mail, if you don't know peel boxes, the mail will still get delivered. They never say return to sender. They will still deliver the mail, even though that person has not paid on that peel box. And so it never kicks back unless someone says return to sender. Huh. So a lot of people that go, well, why would I look at a peel box? Well, if they're deceased, the mail's still getting there.

SPEAKER_01 32:33

Yeah. Interesting. That's cool, man. So you've got some little uh some and it's it's not, you know, rocket science. No. And it's just like, hey man, here's how the system works. Yeah. Let's reverse engineer to make sure we get into some deals. So um let's let's take it a step deeper. So you can take anybody off the streets and you know, we pull a list, we filter for it. Yep. Now, what instructions are you giving for, you know, your your students, right, who are using the strat method, okay, which I want to learn about here in a little bit. And um, like how how fast are people getting into deals? What's your typical deal demographic look like, both from how many people, equity, like walk me through some of that? Yeah.

SPEAKER_00 33:16

So our typical deal, net profit is about 32, 33,000 classic. Like that's I wanted consistency. I love 30 grand, man.

SPEAKER_01 33:24

I'm not upset about 30 grand. Yeah. So I think I tell myself it's 50, and then it ends up being 30 a lot of times. You underwrite, and you're like, oh, there might be a good little 50 pop in here and then it's 32 net. And I'm like, hmm. I feel like there's a lesson here.

SPEAKER_00 33:35

And like, I don't love a lot of litigation. Okay. That's like I don't think anyone loves litigation. Yeah, some people do, maybe.

SPEAKER_01 33:41

Some people Kyle Westbrook, if you're watching, no.

SPEAKER_00 33:44

Kyle is like I don't know. If he watches, yeah, yeah.

SPEAKER_01 33:49

I love Kyle. I he was he was my coach when I went through Logan's program. So I have nothing but love for that dude. Yeah, no, he's a killer.

SPEAKER_00 33:55

He is a killer. He is. So I don't I will sit there again. Honey catches flies way better than vinegar. Honey catches flies way better than vinegar. You're gonna hear the East Text manner. I love it, dude. So keep coming. So I will sit there and talk. And we've had deals where it's hey, what have you tried before? What have you done? And it's like, oh, hey, my brother got my grandpa's shotgun. Okay, dude, what do you need? Well, I want that shotgun. Hey, other brother, I'll give you $2,000 to go buy you a nice shotgun, give them this, and we'll close this deal. Done. That's it. And you'll be all hear the stories from them and they'll go, yeah, we got served by another investor, or this one, or someone tried to sue us because we didn't perform, or whatnot. Okay, what do you really need? Yeah. Like just be hurt for a minute. But anyway, so our typical deal. So good. Yeah. Dude, our typical deals is either first or second generation and three to seven owners.

SPEAKER_01 34:45

First or second generation, three to seven owners. Totally. When we say second, that's like grandkids, basically.

SPEAKER_00 34:51

Yes. Because there's people that passed away there.

SPEAKER_01 34:53

Yeah, yeah, of course.

SPEAKER_00 34:54

Um, our no-go, like our kill deal, is two generations more than 10 people. Okay. It's got to be really worth it for that. Makes sense. If it's first generation and 15 people, which is rare, we don't do the deal at all. Okay. We will come back to it. So our typical deal, first or second generation, under seven, uh, net profit 32, 33 in that ballpark. And then our deal cycle, we are 67 days right now.

SPEAKER_01 35:19

Dude. Yeah, we turn. When you say deal cycle, how are you measuring that? Like what's the beginning of it? Initial deed. Initial deed, and then the end is cash out. Cash collected. Yeah, really 67 days. Dude, that's nuts.

SPEAKER_00 35:30

That's I don't know what we yeah. Like I'm like, well, also we can discount the we can discount the snot out of it if we need to. 100%. That's what we were saying before we started rolling the camera, right? Yeah. Oh, dude, I will take a quick nickel all day long. 100% all day. Um, but like we we will convert them as quick as possible because we know we're gonna find another deal. There's always more deals. And so, yes, we will squeeze the deals that make sense or go, hey, can we hold out and make a hundred on this or 95? Totally. Yeah, fully, dude. I'll butt another six-figure pops when they come. Exactly. And my main goal is keep the momentum going because for us, like we were doing a ton of flips in 23 and 24, the dumbest thing I ever did. And we were buying like two flips a week. Oh, like we were yeah, we dude, we were cranking them. And why? Because private money was throwing it at us. Okay. Go buy a deal, go buy it. No, no, it's a whole nother story. That's a whole nother lesson. Yeah, yeah, yeah. So our typical deal though, um, 67, 66 days, and we can turn them pretty quick. Okay. We are looking for consistency in a market, we're looking for stuff that I don't want to go through litigation. So most of your time, if you talk to any operator, their longest cash conversion cycles are because of litigation. 100%. That's all it is. Yeah. Um, what we do is we obviously will reverse farm our market. Hey, what's the buyers look like in the area? What's the market look like? I'm not gonna sit here and tell someone to go to a market that it's 200 days in the market. 150, that's the dumbest thing you could do. Sure. Unless you're willing to discount it. Yeah, that makes it like something. So obviously we reverse it. We've already got areas established where we will wholesale the deals. And this is what threw me off is there's a lot of guys doing DPA, and they will only do the deal if they can do a buyout. That's it. And uh wholesale it. And there's a couple teams operation that I've worked with, and they could not tell you how to wholesale a deal. But the seller is willing and able, and they were wanting a discount. They will sell it for 40 cents on the dollar. Yeah, and they have no idea how to fix an affidavit, they don't know how to get it together. But like you have everything you can do. Everything's pretty easy illustratively to get it done. Yes. Brother, we had a deal, a mentee brought us, and he was like, dude, I have no idea what I'm doing. So he's like, JV with us. Six acres, six point six acres, perfect rectangle, mobile home on there, one air. I have no idea what to do. I I was gonna let it go to auction. $28,000 back taxes, property's worth like $200 as is. Okay. He contracts it, he calls me up, he's like, hey, I got a contract on it for uh $41. Like, never done a deal before. Dude. His first DPA deal. He's like, hey, got it for $41, don't know what to do, one heir. Um she's the only heir. And I go, Are you kidding me? I'm like, just do the affidavit, you're done. Well, send her the affidavit. We still JV it because he's like, I want you to hold my hand. Sure. Happily, yeah, with pleasure. Yeah. So we throw we throw the affidavit to the seller, dude, dude, it gets good. So like we throw it over to her. It takes her a month and a half. Oh, and I go, This is why it took so long. Yeah. Come to find out there was a sister that passed away in 01. We did not know that until we started digging, and there was no obituary, nothing. So we found it, got it done. We had to pay someone to go sit on the porch with her and fill out the affidavit questionnaire. Mind you, she had been with four realtors. The realtors never helped her. She had two investors contracted. She was like, Yeah, I undercontracted sell for 186 last year. Just didn't know what went wrong with it. Didn't know any of the paperwork. It was the affidavit. She didn't know how to go do it. Brother, I had to send someone to pick her up from her house to go get the death certificate in the same town. And that was it. Okay. Originally we had this all What County was this in? Uh you don't know. Okay. Yeah, that's that's one of my NDAs. Oh, I got you. I got you. Okay. Because you got a lot of viewers. Okay. Not that many, man. I feel like you got plenty. If they wanted to learn, I'll show them. Sure. Um, so so this deal, we already we already were gonna wholesale it. So like, hey, let's find a buyer quick. Um, original buyer, 175. We had it for 41. So, all right, we're good to go. Let's do it. Easy. Well, this was during the affidavit, too. So we had two months, got retraded 50 grand. Oh, so here we are down to 125. I mean, we're still making our lick. Sure. Let's do it. Um, we go and get closing docs, we get done, and the buyer's like, hey, you know what? It took two months, we're we're wrapping up through winter. This was December, basically rolled into February. He was like, Man, we can't do this. Um, I need a $50,000 reduction. Again? No, no. Oh. The first go run. Okay. This is why I love DPA. I need a $50,000 reduction. We can still close in a week now that you have it clear. Sounds good. We go back to our mentee. Hey, we just got a $50,000 price reduction, but you're still gonna make $45,000 on this. You cool with it? Sounds good. Let's do it. Let's get it done. Bayer didn't see our assignment fee until the end. He goes, Man, y'all made a good lick on the hook. We never retraded. We never retraded. Wow, we kept her at 41. You didn't need to. Yeah. And we didn't have to have that awkward conversation, didn't have to do anything. And we didn't care. We're like, we're still making 7580k net on it. We don't care. And that's what I love on it. Is all it came down to was the paperwork. That was it. Isn't that crazy? And that's all it'd been sitting there for for like seven years. Wow.

SPEAKER_01 41:10

That's nuts, man. Yeah. That's nuts. But I love that. Okay. So, and there's so many pieces here I want to dive deeper into. So let's let's take a second. Um, why don't we start with just uh why don't you break down what strat stands for? Because I'm rapids did a couple of times, man. That's like your that's like your thing, right? That's like your branding thing.

SPEAKER_00 41:30

So I I feel bad because like you've actually got the closed with podcasts, things like that. What do you mean? Dude, I came up with strat just like offhand. I don't even I put it in the chat GPT and I was like, all right, let's let's figure up something for like strategy, like strategic resources. I could not tell you. If you have like gun to me, I could not tell you what the acronym. But it's a so we really I love your honesty, brother. Yeah, I love we again 80% of the knowledge that I needed, and I said, let's do it. Let's build it let's build out a community. Totally. And obviously it's done very well. Yeah. So basically it's strategic thinking, strategic. Hey, that's why it's strat sore down. Um, there is an acronym behind it, but I have to go to that's okay. It's irrelevant to the actual stuff inside, right? And so originally that community started one selfishly, I knew that hey, I could I could show people what they wanted. Because I have been in real estate since 2020, basically. And I was big in like the REI CIF community for data, things like that. And I had probably two, three years there where I had people beg. They go, I see what you're doing, and I want you to teach me. And I said, I'm not qualified, like I don't feel like I'm qualified to do it. Yeah. And it wasn't the imposter syndrome or anything like that. It was just I didn't feel like I was meant to do that yet. Yeah. And eventually I had someone just zell me in the middle of the night. Um, shout out to I would say their name, but they're amazing. And they zelled me at like midnight and they said, I need to know exactly what you're doing and call me in the morning. I have to know how much five grand. Five grand. I just boom. That'll get your attention, man. I was like, okay. I was like, if they're if they're up in the middle of the night. This guy zelled you five G's. Yeah. That's a way to get someone's attention, man. Yeah. And I'm like, okay, and I never charge for coaching or anything. And I'd done some webinars, stuff like that. And I went, you know what? Let me just record every single one of these calls and let's see where they go. Like, let's, let's, I'm just gonna break down the business. And we obviously started to get more structure there, but I realized, hey, instead of me repeating the same thing, how about I just record it, document, make sure we give off the good quality content on there? And it became the community of, hey, if you're trying to learn how to wholesale things like that, it was more finding my feet back in when did I start that June of 24? Just kind of figuring out like, hey, what's a nice little happy medium? And it was funny because the feedback from my original group was like, we don't care about wholesaling. We only want to hear about messy title. And that was probably four months into it. And they said, we did not come here for wholesaling. We came here to hear the dirt. I mean, I don't think. And I get it. And I get it. And so that community, like, if anyone watches this and goes back to it, they're going to look at like 24 and go, This is a joke. Like, what were they doing? Talking about it. Yeah. Yeah. I like didn't have a formal setup or anything. Sure. It was like home office, cameras, a cheap old rig, whatever I had, web camera. Sure. Hear my daughter in the background yelling down the hallway. And we just got it done because people wanted that content. There was nothing out. And honestly, there was no in-person community or virtual community. Yeah, Logan was stuff back then. Yeah. Yeah. Logan had asked me to speak at three of his events at the time. Yeah. I that's whenever I met you as the community started getting into there. But like there was no virtual community. There was no, besides Logan's event once a year, there was no upkeep. Even then, I mean Logan's first one was like 100 people. Raw was like 200. Like if you've been to the first first one, 20.

SPEAKER_01 44:55

Like that was like 20 people.

SPEAKER_00 44:57

21. This is uh no, no, in 2021. Oh, I don't I don't even know. Bro, I was I like Logan was gracious enough to have I think 15 of us at his house the night before. That's crazy. And then there was maybe 120 people at the at the Togmy for the event. Wow. And it was amazing, but like no one, we just came there for education. Yeah. And no one, everyone networked, they're like, here's what you do. And it's it's a production now. It's amazing. Yeah, totally. Yeah. And it's hilarious because the OGs they go, Man, remember we'd go down to San Antonio, yeah, go to the river walk and not get into a fight. That's funny, dude. That is funny. Yeah. So it's progressed very well. Um, but again, there was people were looking for that community to build off of continue sharpener skills, and uh, I hope to provide just that.

SPEAKER_01 45:43

Yeah, man, that's so cool. And I feel like um, I mean, I've heard I've heard great things about uh about your community. I think it is an awesome way for people to learn messy title, especially, and it's so affordable. And this is not a commercial, he's not paying me to say this. It's literally like I I've obviously checked out your school, I've sent people to you. I just know like killers. Yeah. Because people want to get in and I don't coach it, man. I'm like, I can teach you sales process, sales strategy. I'm a deal maker. I don't I don't want to teach messy title, though. It's a whole it's a whole thing that whenever you teach a strategy, and I'm sure you know this, um there is so much peripheral like headwork you need to work on. Does this opportunity actually work? And McLean, you're full of crap, and da-da-da-da-da. Like, I don't want any of that. If you already do deals and you want to make more money, come to me. You know, if you want to learn a new strategy, that's somebody else. I'm gonna send you to McLean or Logan or one of the guys I know that like actually cares about their people, right? And and people I know that have been through your stuff, they do deals. And I think that's like the most significant symbol of like, cool, this guy's it works, right? Yeah, they're making money. So um, can we drill down on a couple of fun things that I've heard from deals you guys have done? I guess um for starters, so you you said three to seven errors, we try to stay out of litigation, okay? How are you screening for like less likely, you know, litigation outcomes? Yeah. Is it everybody working together? Like where in your sales process as you're working with your first couple errors or the first person you get in contact with, yeah, are you getting that data so you know you're not gonna end up in a lawsuit?

SPEAKER_00 47:18

Yeah. And it's honestly not even data because what we'll do, um again, if this gets clipped the wrong way, then it is what it is. But we'll clip the wrong way. Yeah, yeah, yeah. Exactly. Yeah, yeah. So we build out essentially target packages. Target packages? Yeah. Okay. So your person, okay. What's their background? Are they a lawyer, attorney? Are they blue-collar? Um, do they have any kind of means to retro any retrocution? Can they sue us? Is all you're saying? Yes, got it. Okay. Um, what's their life look like? Where do they live? What's the house? Like we truly build out of it. So you're looking at their demographics. Yes. Oh, wow. Everything. Yeah. Really? Yeah. So it took a lot of work to do these deals. We've gotten down pretty good. Okay, all right. But again, it it reduces our risk on the on the back end. That makes sense. Yeah. So it's high leverage work. Yes. So we're building out our target packages. Um, obviously, we don't do it for every single person. So I would say we're probably mid-volume. We don't do a lot of just sniper shots. We were very strategic, and then I've got my overseas team, so they just mid-volume, sure, high volume. And we will poke the bear. So, all right, let's because remember, all these people are getting calls, and it's, hey, you want to sell your property at one, two, three, main street? Or hey, I'm calling you out of the blue. Don't know if you know anything about it. Yeah, sell it. Very generic. Yeah. And so all we're doing is everyone that's calling them, it's another call. It means nothing different. And what we'll do is we will go in, poke the bear, see who's our players. Yep. So if we have five starge, there's always the holdout, there's the internal champion that's gonna help us break the mold. And then you're gonna have the people that are just warm bodies. Okay, where they're gonna sway.

SPEAKER_01 48:54

They'll do whatever their siblings say. Yeah.

SPEAKER_00 48:56

Yes. So we'll go in trying to figure out hey, who's our weak point? Who's you've got titles for these? You said you've got your holdout. Yep. What was what'd you call the person in charge? So your holdout, your internal champion. Internal champion. Internal champion. Okay. Yeah, and then we call them the swayers. The swayers. They go either way. Swayers, not swingers. Yeah, yeah, yeah, yeah.

SPEAKER_01 49:14

And clarify that. Yeah. That's a different podcast.

SPEAKER_00 49:17

Swayers. So there's your three. Obviously, if you can find out who's your holdout, just isolate them, come back around, figure it out. Okay. Because you know, okay, if I can get majority share on it, all right, I've got all the chips in my hand. Literally all the cards. So once we have that first contact, we go, okay, here's our internal champion. Let's build out our target package. And so we mitigate our risk. Okay. And we we're stalking the snot out of these people. Wow. I'm talking like Facebook, okay, what's their work history? And before you get the deed, you're stalking everybody. Oh, yeah. Wow. I mean, this is all simultaneously. Yeah. So I mean, it all happens within like 12 hours. Okay. Normally. Um, but we want to identify, okay, where's the past house that they lived at? Were they decent? Were they not decent, things like that? And so if we can do that, we know, hey, going into it, if we can isolate them, we can at least stack it in our favor. Or we know, do we need to bring the sledgehammer to this conversation, or do we need to bring like some flowers? Yeah. What do we need to do? Um that I think we do that a little bit different. Some people, like Chris Burns, good friend of mine, they do the same thing. They profile in a good way, they will profile, and they want to understand what they're about to go up against. Because the worst thing you can do is bring a hammer to a grandma that would have easily signed if you would have been like, hey, here's what's going on. How can we help you? Yeah. Because people forget to have the customer service. Totally, totally. Um, but yeah, just mitigating our risk.

SPEAKER_01 50:44

There's humans at the end of the day. 100%, man. I think that's so good. And it's it's great you brought up like the service piece of this because I think people forget, like, you get on these and like, what's everybody thinking about? Money, literally, right? It's okay, what can I do to get this person to sign me these docs so I can make my money, buy a car, go on vacation or whatever, right? And it's like, man, that's like never where my brain's at when I'm on the phones. It's like, what's going on in this human's life? How did they get here? Like, how can I help? Do I have the skills and resources to like get them to what they need, right? I mean, there's been times even, and I'm sure you guys do this too, where if you speak to somebody that's elderly and you're like, bro, I would never like even try to buy this person at all. Like, they're just, they're just down bad. This is a bad look. And I'll send them resources, tell them how to get a hold of people at the county, how to get a hold of like healthcare facilities, and just like, hey, you're over this age, you actually might be able to take advantage of like this, this, and this program. Yeah. Here's some info. Can I get you a phone number? Do you know how to use a computer? Like, do you need an email? You know, but I think even below that, when you're working with, you know, the gruff 40-year-old that doesn't want to deal with you, like, what's the issue? Sometimes it's time. Yep. Sometimes it's it's literally just like, hey, this has been like a gnat on the back of our head for a while. We've been thinking about this, don't know what to do with it. Cool, man. Well, I can make that easy. If I could make that easy, like, would that help you guys? Right. So it's it's like, yeah, what problem are you actually solving? I think that's exactly what you're getting at, right? It's refreshing because people don't always know that.

SPEAKER_00 52:13

I'm sure. Oh I I've heard calls this week, and again, it's every week we do recruit call reviews. Oh, sweet. I love that. Yeah, yeah, yeah. And I'd tell you a lot of those. It's it's funny because I tell them, like, hey, look, these people have tried this, this, this, that here's what it is. They'll probably tell you, hey, yeah, I'm willing to give up on it. And I will hear the calls that obviously the fresh ons, and it's why won't you sell? Like, you're behind on taxes. It's this, you your mom's dead. You're gonna lose it. What are you doing? Are you stupid to not do anything? You should work with me. Yeah. So, wow, this is this sucks. This is rough. What are we doing?

SPEAKER_01 52:47

And why do you think he didn't sign?

SPEAKER_00 52:50

No, no, no, yeah, yeah. Yeah, he should have signed. He was an idiot. He's an engineer, he should have known. Like, no, dude, it's uh some people have to realize like there is some finesse to it. And 100%. I I say this a lot is you have to have someone as a thinker before a shooter because everyone's ready to pull the trigger and get that contract. And it's a matter of going, oh, he just said he has a half sister that we didn't account for. Yeah. Oh, now our interests are split. Oh, let's back up a little bit. We're not going for the kill every single time. Totally. If it presents itself, it will. Yeah. But it's going through it and having that critical thinking. And correct me if I'm wrong, but I've seen in the DPA a lot of wholesalers that think they could just strap it on and run with it. And it does a photography. But it takes that critical thinking to go, here's the situation, here's the problem, okay, here's my tools.

SPEAKER_01 53:40

Yeah. And it's not a sledgehammer. Totally. It's a very different business, too, man. I think with with um there, it's funny, like the longer I'm in DPA, the more I do see there are benefits to a wholesale model at scale. Yes. Right. I think as you're solopreneuring or small teaming it, right? We were just talking about this before we walked in here. Like the one to three member team, like they crush. Yeah. Super profitable, like high margins, peaceful life. Yeah. Um, the wholesalers I know, I was DMing with a guy the other day somewhere out on the West Coast, and he was telling me he was getting into DPA. And I'm like, what do you do? He said, I'm a wholesaler. I said, Oh, like what's your operation look like? He said, So he I'm trying to remember the metric he gave me. He was like, We're doing about 20 deals a month right now. And I said, Do I even want to ask what your monthly overhead is? And he said, about 300 grand a month. 350 a month. And I was like, I'm gonna vomit, dude. And you know, at scale, he is probably running like 40% net profit margin. So if that's his nut, I'm assuming he's doing 600, 700 top line, you know, and it's just, dude, you've got so much team collateral and big office, all these bills, you know. And what's different about um the the point though is he is netting a couple six figures a month fairly consistently. I'm sure like any business, it's got its ebb and flow. Whereas um we don't have that level of simplicity and messy title. So you can't really quite duplicate and have you know four or five really good closers in like three months, the same way you could with like a wholesale or land operation. Um, and so it's it's interesting. I've you know churned through quite a few acquisition managers at this point. I'm curious what um what characteristics do you see from students that come through? Like when do you I'm sure you know pretty quick, like this guy's gonna get it. Ah, this guy's gonna struggle. We're gonna have to give him some extra resources. Those call reviews are gonna be a little more fun.

SPEAKER_00 55:37

Yeah, like what themes do you see on both sides? So every minty I have, I don't know if you do this, but every mentee I have, they take a disc test before I went. Oh, really? Yeah, wow. Is that just for your one-on-ones? You get it at the group level too. So, so our group level for our high ticket, our accelerator, but one-on-ones essentially. Sure. Yeah. So I'm gonna see their diss test before we ever do our first call. I'm like, hey, take this disc test. Let me see what it is. Interesting. Um, I will tell you, even for acquisition guys, it's a medium driver personality and a medium eye.

SPEAKER_01 56:08

Okay.

SPEAKER_00 56:08

Like that is the perfect yeah. Now there are some stipulations there. Yeah, I'm a strong I wing like uh towards an S.

SPEAKER_01 56:15

Really? Yeah. Okay. Which is a little easy to do. I should see, but I don't like hammering the phones all day, every day. Yeah, I'm really good at it. And that's where the D really helps. Yeah. Is if you're you're further leaning that way, you can just kind of keep going. Whereas I'm more like uh I'll hit it really hard on Tuesday, and then Wednesday and Thursday give me some other stuff to do, and then Friday I'll come back and clean up, you know. So it's you wouldn't want to hire me as an acquisition manager. I'd be very skilled, but I would come and go. I'm like team manager, Harvey Specter, yeah, yeah, team manager. We're good.

SPEAKER_00 56:42

Yeah, yeah, yeah. For sure, for sure. But uh especially starting out, it's like you have to have that 100% that drive, which all of us do whenever you're like, all right, foot up fire sheet automation. Yep. Yep. And so that's honestly the best personality. The stipulation is engineers and anybody with a high eye personality, super high, like top, engineers and professionals, like professional, like doctor. Okay. Um do well or don't do well. They normally struggle. They normally struggle, yeah. I got you. It's a lot of hesitation, or like this should be a perfect fit. Like, why is this? Overthinking, yeah, got it. Analysis, paralysis type stuff. And I see right off the bat, they're they're almost too intelligent for their own good. Yeah. And there's a lot of hesitation, which it's like both guilty of in other ways. Yeah, yes. And so I can see like, okay, here we go, or hey, I need to dumb it down, or hey, I need to be very sophisticated from the get-go. Yeah. So we'll cater a little bit, but no, best personality I've seen for acquisitions or someone that's a one to three person operation, medium D, medium I. Okay. That's it.

SPEAKER_01 57:46

That's great, man. Can you tell us about um tell us about your team right now? Yeah. Because I think we we glazed over it a little bit, but you mentioned you have a ton of overseas staff, maybe not a ton, but you have overseas staff over in the Philippines, right? Um, how many members are on your team? I don't know if you're willing to disclose like what do your pay bans look like overseas, and then like what are their roles? Yeah.

SPEAKER_00 58:07

Oh, the dude, I treat them well decently.

SPEAKER_01 58:10

Okay.

SPEAKER_00 58:10

So I've had US in base, and again, nothing against having US in office. Just again. Yeah, yeah, yeah. As we're sitting in my office here in Plano, Texas. Yeah. And my whole thing, like, I've had storefront storefront office. I've had a nice office, things like that, and like decorate, whatnot. Pros and cons, man. Yes. Always. And it got to be where I went, what does my life look like? I want to be able to take my laptop, my phone, do whatever I want. Sure. And I went, okay, we're going all virtual. Like 2023. Okay. We're going all remote. And of course, we were doing flips. So I wasn't even in the office for like a whole year. And I was paying every month like a thousand bucks a month. Yeah, that sucks. It was dumb. Yeah. So I've had US-based acquisitions, in-house, virtual, things like that. And eventually we just settled on the Philippines. Like I've had I've had one acquisition person for almost four and a half years. Wow. And she's a she's a closer for me. Okay. She's cold calls, closes, whole thing. Um, but our team, just for anybody that's like, what does this team look like? Two acquisitions, admin, researcher, TC. Two acquisitions, admin, researcher, TC.

SPEAKER_01 59:16

Yeah. Okay. That's it. And then me, whenever I'm bored, I'm like, let me show y'all out. Like, here we go. Okay, so uh is the researcher doing stuff on the front end or just on the back? Like after you get so both. Both. Okay.

SPEAKER_00 59:27

Yeah. So I follow the mannerism of the Marine Corps. I'm I'm not military, but everyone is a rifleman. So in my team, everyone's a researcher.

SPEAKER_01 59:36

Okay.

SPEAKER_00 59:37

So my acquisitions, if they get stalled out, they know how to research. Okay. They know how to dig into Facebook. That makes sense. So they're not sitting there waiting. Exactly. Okay. Yeah. You have to train them. Totally. Um, and then my researcher obviously research. My admin knows how to do research. Okay. So if there's any slack in there or she's doing documents with our TC, hey, let me go do this for you real quick. And everyone does not get stalled out. They go, How do I figure this out? So admin, researcher, TC. Um, my researcher will do our phase one. Phase one for us is verifying any deed changes, amount taxes owed, correct owner still. Okay, skip tracing. That's our phase one.

SPEAKER_01 1:00:17

Okay.

SPEAKER_00 1:00:17

So they can get into land records and they're pulling those deeds too. Okay. Yes. Um, also we're using AI on the research side. Oh, really? Yeah. Still preliminary beta. Um there's been so much with AI coming out the past couple months. Yeah, Alan's gonna come in here and school us both. I know, I can't wait. So we do a phase one research, which is your basic, hey, did this pass a smell test? Totally. Is it worth going to? Is there margin? It's worth the squeeze, let's give it a go. Yes. And so they'll do a well, now it's a three-page summary. Hey, alive, here's what your specs are, here's your numbers. And so our acquisitions will get that package, and they don't have to open up county clerk, tax, appraisal, zillow. They pull it up, go straight to it. Okay, here's my parameters, here's what we've got, so here's a story. Now, if they get into a situation where they go, Oh, I made point of contact, because our number one goal for us is point of contact. You know on the sales side how many follow-ups it takes to get someone five, five, ten, fifteen, too many. Our typical deal is five to seven. Okay. It's the s it's like the sixth day, my top acquisition, the one who's been with me the longest, she gets 90% of her deals after the seventh day. I'm just calling them. No, call, text, voicemail, and it's like 11 calls, four text messages, and probably seven voicemails. And then finally gets on the phone. No, they call back. They're like, hey, you've left me like so many voicemails. What do you need? Cool. And that's where she gets her deals. Okay. And they ask, what's your voicemail sound like? So it's like this. Uh, hey, OJ, my name's McLean. I'm calling to see if you could help me out. Don't know if you knew anything about property on Main Street, but just trying to see if you could help me out. And we say help twice. Okay. Not hey, trying to see you.

SPEAKER_01 1:01:57

It's kind of like curious tone. Can you help me? Just like leave a little vague, but mention like their parents' property. Yes. Facts. Parents' property. I know. Will you mention the parents' name or anything specific like that or no? Say like, hey, looks like it's your mom's property.

SPEAKER_00 1:02:10

Cool. Think about that. Facts. So they know it's a very well-researched call. Yes. Got it. Yes. Um, but we will always say help in there like once or twice. And then it's McLean, 972-246, here we go. Yeah. And we get very good callbacks. Okay. Um normally whenever you try and do it more vague, it's it just doesn't do well. Okay. We've had I haven't done it, but mentees have done it where it's the vague, hey, call me back. It doesn't work. Yeah. Doesn't work. And we try and present facts on every call at least two times in the first 30 seconds. Wow. So your mom, your dad, not whoa, whoa. Don't be talking about my mom. Yeah, yeah, yeah. Basically, they looks like or say, hey, it's your mom's property. Here's what we got. 18 years vinyl taxes. Yep, that sounds about right. I'll get. Um, yeah, 10 years, that's wild. Yeah. Dude, we did a deal where they were 32 years vinyl taxes.

SPEAKER_01 1:03:01

They did not get foreclosed though.

SPEAKER_00 1:03:03

They couldn't find her. No way. Yeah. Dude, that was a whole nother story there. She had, dude, I actually sat on the same pew as her at church. No way. The executor. Yeah. What? Yeah. Yeah. Clean probate. That's crazy. I'll tell that story another time. Yeah, yeah, yeah. But our team, so acquisitions will get their sorry. Admin preps the data. We get our data. Comes to the researcher. Hey, this is qualified data. It deserves to be in our CRM. That's the only reason it's there. All right. Researcher runs phase one, does our quality control check, send it to acquisitions. Acquisition does a seven-day cadence. They go through. If they're like, hey, all bad numbers, we've got some good numbers, got some hits, they'll filter it out from there. If there's no contact, no hits, all dead numbers, it goes to phase two. Phase two research is okay, who's our next point of contact? Who's a family member? What do we have? Are they even alive? Do they have someone that is second generation that we need to contact? Things like that. Do they live in the same county, state, whatever it might be? So it comes back after phase two, goes back to acquisitions. Now they are marked for hey, you've already been through this. Now it's just fall clause at this point, or hey, let's dig into a little bit more. And then is it a deal, not a deal, contact? Are they a ghost? Yeah. And then every month we'll look at it, go, okay, is this a high value target for us? Which is how many years behind our taxes? Distress. And then what's the appraisal value? Sure. Okay. Um $300,000 our home. It's in a tax suit. Okay, we're probably gonna escalate that. Yeah. But again, most of the stuff we chase is not tax foreclosure. If it's tax foreclosure, it's because I went on there and I cherry picked it. That's fair. Otherwise, it's all taxed and we went and we don't have to jump at it. Yeah. So here's our natural conveyor belt.

SPEAKER_01 1:04:51

Yeah, that's good, man. Tell me about um how you guys use pizzas. Because I feel like that's a good media attention.

SPEAKER_00 1:04:59

Oh, it does. It does. So um dude, I don't even know when we started using it, but it's probably gonna be like DoorDash and Uber being like COVID. Yeah. And I that's the easiest way to say it. So right now, if I said, hey, Audjay, um, I need you to get me a runner in, let's say, I don't know, Baton Rouge, Louisiana. Sure. Okay. I'm like, give me a runner in the next 30 minutes. What are you probably gonna do? You're probably gonna go, yeah. Dude, I I don't know how. Let me call, let me call a notary service, let me go call this. Okay, there's PI door knocker or something. Yeah. Okay, and you're like 200 bucks. Yeah, easily. DoorDash. I can literally pull it out. Right. DoorDash. I can have anyone in any major metropolitan city or even a secondary market. We just did a DoorDash to uh uh Paris, Texas, dude. Yeah, that's like a hole in the wall. Yeah, okay. So I can have a again. If they screw you over, you just contact DoorDash and they can. Their their license revoked.

unknown 1:06:02

Yeah.

SPEAKER_00 1:06:02

We haven't had to do that yet. Okay. But like they screw you over on the order, you just call them up. You're like, hey, they did this. What on? So obviously I can go, hey, here's a drink, here's a Dr. Pepper, and when we wait for them to pick it up. And so it says, You've been connected with your driver, and we'll call him, Hey, here's what we need. I'll tip you an extra 50 bucks to do this. I can interesting. I can have anyone there in 15 minutes. Yeah? I mean, ready to go.

SPEAKER_01 1:06:25

Yeah, because as soon as you're connected with them, you can talk to him. You can talk to them. Yeah, I'll tip you 50 bucks. That that's a day maker.

SPEAKER_00 1:06:31

That's a day changer for him right there. Right. And and we can get pictures, we can get them to go drop off documents. Wow. Um, again, being strategic on it, like, what do we need? Pizzas. We have people drop off lockboxes, sure. Um, take pictures, deliver documents, yeah. Get in contact. We're like, hey, we just need to get in contact. And so we'll use pizzas, flowers. So our target packages, um, we'll propile. Okay. And like if you're sending your yellow letter, hey, we want to buy yellows. Yeah. Uh, here's a handwritten letter, hey, we know there's this, this, this. Okay, well, if McLean's over here and he sends, like, I don't know, a little airplane in an envelope or like a FedEx package, who do you think is gonna get the response?

SPEAKER_01 1:07:11

Yeah.

SPEAKER_00 1:07:11

Like, I'm just saying, because we were like, hey, we stocked the snot out of them. Yeah. Like we know what they want.

SPEAKER_01 1:07:16

So when will you use that? What's your trigger to use it? Is that like co-owners that aren't responsive? More is you like first airs?

SPEAKER_00 1:07:21

Or that's like once a quarter kind of not every because I've had people that go, How do you scale the pizzas? I'm like, no, you don't need to scale the pizzas. Yeah, that is why they are called high value targets. Yeah. So at our discretion, scale the pizzas on top of you. Um, but yes, at your discretion, again, obviously it's got to be the values there. Um, typically it's someone that we have not gone into conversation with. Got it. So you're trying to get their attention. Yes. That that is all we're trying to do. Because some people go, well, I sent the pizza, they didn't sign the contract. No, dude, it's point of contact. Number one, point of contact. Totally. Who is my my sway or not swinger, who's my sway, who's my holdout. Yeah. And then, okay, who's my internal champion? That's great. And I just need a response. That's all I need is a point of contact. Yeah. And so you can't scale pizzas, but at the end of the day, all I'm doing is getting a response, a point of contact, and I can build out from there. Yeah. Okay. Hey, thanks for the pizza. Dude, I had a guy that lived under a water tower. Like, no joke. Lived under the water tower. Population of this town is like 350. And there was no DoorDash. There was a bakery that was on the corner from him. And I call him like, hey, I need you to deliver something to him. And they're like, what do you want? This is funny. And I go, okay, great. Hey, call me. Oh no. So I'm like, yeah, you need to deliver it to uh Ken Applegate. A hilarious dude. And so I'm like, okay, hey, can you deliver it to Ken Applegate? He lives over here. And they go, Oh, oh, Kenny? Yeah, he lives under the water tower. And I go, really? And they go, Yeah, he never buys anything from us though, but what do you need? I said, I need you to make a $50 package of macrons. And I'm like, make that some cookies, whatever. Sure. Yeah, I'll throw it in there. And she goes, Yeah, we'll just hand walk it over to him. Or walk it over to him. And mind you, this guy can't even get a phone because he had so many bankruptcies. Oh, so he bankruptcy judge like his card was trash. They would not give him a phone. So his phone was under his landlord's number when he called me.

SPEAKER_01 1:09:18

So 15 minutes later, they We actually just quick side note on that too. We have uh we'll frequently, if we send a PI out, we'll send him with a prepaid phone. Yeah. Just because of that very reason. So we've we've done a couple like here's prepaid phones with minutes loaded up because you just don't, you never know. Nowadays, especially with how like the phones work, people will get a plan and yeah, literally can't get one if you have bad credit. It's crazy.

SPEAKER_00 1:09:37

But I'm sorry, keep yeah, you're keep going on the story. So this town again, 350 in the population, they knew them and they delivered it. And 15 minutes later, I had this call recorded, and he goes, He goes, This is McLean, yeah. And he goes, Man, these little hamburgers are great. And I go, I go, what hamburgers? He's like, These little colorful hamburgers, the macrons. Like, yeah, dude. He goes, he's like, This is the sweetest thing I've ever had in my life. I didn't know what this was. I thought they were trying to poison me. He's like, but I knew the girls. And so he ran. He's like, so I thought I should give you a call and what can I help you with? Okay, dude. This is nice guy, nice guy, nice guy. And we bought him out for a thousand bucks. Okay. Made 42 on the property. On the property. But he this guy had owned like 18 properties back in the day. What? Yeah. He was a wheeler dealer. No, he kidding it. He got wiped out in 08, and then he's that's too bad, man. Yeah. He got wiped out. He's like, man, he's like, thousand bucks, sound real good. Met him in the lowest parking lot the next day, drove in like 60 miles to it. No way. Yeah, we met like halfway. He's like, Yeah, let me just sign real quick. He's like, All right, sounds good. Done. And I was like, wow, okay, we can do this anywhere. And so anytime we have someone that's just a recluse, things like that, DoorDash, DoorDash, local bakeries, and people overcomplicate that. It's just calling. If I was gonna send you one, hey, can you send one to his office? Here's what I want you to put on the note, make it really funny. Yeah, that makes sense. People forget the human touch.

SPEAKER_01 1:11:03

Yeah, they try to systematize everything. And it's like, dude, some things are actually worse with systems, not better. Yeah, as awful as that sounds. But that's so interesting, man. Okay. Um, I want to go back to your team for a second. I know we've been all over the place, yeah, but I think we're just like unpacking McLean, and it's I'm having a lot of fun doing this, man. No, seriously, this is this is really fun. Can you tell us about with your team, you have two acquisition managers? Um, I know you do probably a good chunk of JVs, and those will take up time when they hit your desk, but in terms of like stuff you're generating in-house, do you have KPIs for like how many dials to pick up, offers to deals, just like I don't know what acquisition KPIs you're tracking. Anything you've got that could be helpful for people getting into this.

SPEAKER_00 1:11:48

So we do track dials just for productivity, but I look for conversations, quality conversations. Totally. So our KPIs, because anybody's gonna be like, well, what's the KPIs? Okay, so our average is 50 to 60 dials. Okay, we're getting a qualified lead. Okay, okay. Takes us anywhere from seven to twelve leads to get a deal. Because okay, that's pretty accurate. My KPIs are insane. It's like one in ten, I get a deal. Yep. Like calls, not leads, like one in ten. You're just you're in the killer. No dude, like I'm just researching again, like Jordan Johns. Yep. Killer dude makes seven, fifteen calls to get a deal. Yeah. Um, plus it comes with the time of like knowing, hey, this is probably a deal, or hey, this is who I need to call. This is a little decision maker. But yeah, my team, they're making anywhere from like 90 to 150 dollars a day. Okay, we're gonna have two, three good quality conversations out there. Okay. And then obviously they take time. They're not one night stands, it's all right, here's the seed of totally, here's what we're gonna do, here's a plan, okay, great. And some of those they don't come to fruition because we find out it's not worth it or totally some judge.

SPEAKER_01 1:12:55

Something out of the hand strip or something's wrong with the house, or it's not as it's not worth it. Yeah, yeah. You get that when you go to like smaller markets. Like I remember talking to uh Jeremy Chapman. Yeah, yeah, in one of his first deals because he was fishing around where um where he was from. Bro, he's like, yeah, he's like the king of the neck of wood. Yeah, yeah. And he um he was telling me first house, uh, he had a seller that was willing to go at a thousand bucks and it was a single heir, I think. Yeah, and he's like, Yeah, showed it to McLean, but the house ain't worth it. I'm like, what do you mean? It's a thousand bucks. He's like, bro, this dude, I will buy that for a thousand bucks. It's like these these houses are like a hundred grand fixed up, and this thing was a dumb. Yeah, yeah. So he was like, I might be able to dispo it for like five to ten or yeah. It's trash. Dude, I'm telling you, there's some stuff I would tell it on a note, honestly. Yeah, I think if I got into something that cheap and I could get clear title, I would just sell it on seller finance. That's literally $3,400 a month, something like that.

SPEAKER_00 1:13:48

And somebody will do that. I'm saying is the secondary tertiary markets, the guys that come from wholesaling, they only understand hey, just offload it. Yeah, but like if you come from a tertiary market, you can sell or finance anything. Anything, man. As long as that payment bucks a month.

SPEAKER_01 1:14:01

Yeah, that payments right there. You go 99 to 299 a month and throw it up on Facebook Marketplace, you can sell anything in the country, man.

SPEAKER_00 1:14:08

Easy. And I think a lot of guys get hung up on that. Is they're looking for that. Here's my and again, if you're going tax Who's my buyer? Who's my buyer? Yeah, who's my buyer? Yeah, and tax foreclosure, you're going, I need offloads. You want to know your buyers now 99 a month market? No, dude, 99 a month. I mean bro, do you do you give them like clothes too and like shoes? I mean, give them build build-a bear at this point.

SPEAKER_01 1:14:31

Honestly, that's so funny. So with your closers, um, and I'm sure it ebbs and flows, but do you have like a rough idea? Like how many deals will each closer bring in a month? If it's even in every month, uh honestly, weekly basis is easier. So okay.

SPEAKER_00 1:14:45

So two per week per rep. So two new deals per week per rep. Wow. That's insane, dude. That's an average, which obviously it's like one or two, or they make up for it. Like, what is it, Thursday? We had one acquisitions get three in one day. Oh my gosh. Yeah, she was just killing it. I went, whoa. I was like, you went from like nothing this week to all right, let's do it. Wow. And they were all singling. So you're telling me they get like five to eight a month? Yeah. Each rep. Each rep, yeah. That's insane, dude. I will kick some back though. Whenever we go back to look at them, I'll Okay. I'll go, eh, because we can always come back to them. That's true.

SPEAKER_01 1:15:19

So if you don't love them right now, I'm like, and I think that's a benefit of them being in the Philippines is they're not like commission dependent. Yes. So they're okay with you kicking back. Whereas, like, you know, you get a hungry US based rep. Oh, they're prosecuted. Yeah. Yeah. Because that's a five to eight K check you just told them to screw off.

SPEAKER_00 1:15:35

Yeah. It's interesting. And like I again, your question on the payroll, which is Oh, yeah. That's bad about it. Thank you. So payroll, like US, okay. You're talking two, three thousand dollars a month minimum plus commission. Totally. You can just pay them 30% commission. Totally. Um, so my Philippines, average pay for my whole team is five dollars and fifty cents. Okay.

SPEAKER_01 1:15:55

And then that's like doctor rates out there, though, right? They're they're I think an average doctor makes like six bucks an hour. Yeah. They're like half.

SPEAKER_00 1:16:00

In the Philippines. Yeah. Um, my acquisitions, they get anywhere from two to five percent of the deal. Oh, dude, they're stacked. Yeah.

SPEAKER_01 1:16:08

On a 30 grand deal, they're making what? What's the math on that? They're 600, uh, a couple thousand.

SPEAKER_00 1:16:14

Yeah. So they're happy about that. Um, I actually just yeah, dude, they're they're living like kings out there, dude. They're making three, four, five grand a month. That's crazy money out there. And uh, I'll pay them like bonuses, like even my admin, she's amazing. I'll send her bonuses, stuff. She's like, I've never had this or like being human on it. I mean, one of them, they had their roof ripped off, and they were like, I I can't work right now. I have my roof, it just got ripped off. And I went, How much is it to fix your roof? And they're like, It's 800 US. I went, All right, get it done. Like, here's the money. So we have a fund just for that. And I'm telling you, they have been super loyal. Like when they found that out, and like whenever we went on vacation for two weeks, I've never been gone on vacation for two weeks. It's always like five to seven. Yeah, it's kind of a long time. It's a long time. And I said, Hey, how y'all just not work? And so we sent them to like the equivalent of Costa, like Costa Maya or like Cosme L for them in the Philippines, and we sent their whole family 18 people. Dude, that's awesome. What did that cost? Eight uh 1500 bucks. 1,500? Yeah. For flights, everything we spent more than that on like notaries last week.

SPEAKER_02 1:17:23

You know, yeah, yeah.

SPEAKER_00 1:17:25

And so I was like, hey, pick a place, whatnot. And so they were just in like enthralled with it. They're like, wow, this is amazing. We've never had this happen. And so we rented out a a three-story Airbnb for them, their families, their kids, all the food covered. Um, they did excursions all four days, like parasailing, went around the islands. It was amazing. And so just treating like humans, because a lot of people think, oh, V8 Philippines, I'm gonna pay them as cheap as possible and I'm gonna run them to the ground. Yeah, dude. Come on. My folks are loyal. They're super and I've had people try and poach them too. That's horrible. Yeah, it's it's funny, but it's they but they love you so much. And they come back and they tell me culture perspective, there's no chance. And so that's why I love the Philippines, is they're super loyal. But yeah, pay rates vary manual. I mean, our systems operations overhead, we're at like 4200 a month.

SPEAKER_01 1:18:16

What? Yeah, yeah. Bro, that's nothing. Yeah. Yeah, that breaks my brain a little bit. Yeah, like that's it's that's wild. Yeah. And then you're doing probably what, 10 good deals a month. Yeah. Give or take. Give or take, yeah. Yeah.

SPEAKER_00 1:18:32

Depending on if we want to work, work.

SPEAKER_01 1:18:33

You're kicking some stuff back.

SPEAKER_00 1:18:34

But yeah, if you're if you're nose to the grindstone, which is again relative. And we did, we did slow down from last year just because we're investing in other asset classes. Oh, okay. And I won't say it on this podcast, but we're investing in other asset classes. And are you doing that passively or like you're GP that stuff? Uh a little bit more passive. Okay. It's not real estate. Oh, okay. It's sort of outside the sector. Got it. Um, but like again, it came down to okay, we we really hit our stride and it went, do I love this volume or not? Totally. And also it's like, okay, well, what's it look like? What I really want on here, or can we start pushing out? Yeah. Okay. Because at the end of the day, like the real estate, the wholesale, the cure title, it's a cash cow to do other things. Totally. I mean, pick up other. I hate rentals. I will, I would love to burn down my rental app. You only have one? No, I'm down to two. Okay. I've been selling them off. Yeah, I've been owner financing them. Oh, smart. That's a great way to get rid of them. Yes. And so I'm down to my last, last two as of last week. And I will tell you, when you look at it, you're like, okay, great. We've got this, we've got these equity positions. Dude, I can tell you like a ton of strategies we're trying to do, or not trying, we're doing them. And you look at it and you go, okay, I can use the real estate for depreciation, I can use it for collateral. So we're picking up properties for dirt cheap. Yeah. Okay. Now I have a line of credit that I can put in my other LLC to get other assets. And that's debt, so it's not taxed, which is sick. Yep. And so we're utilizing that for other means to do other asset classes. Okay. Um, not in real estate. Just gonna say that. I got it. So it became a revisit of what do you really want the life and the business to look like? Yeah. And so we slowed down a little bit from last year. Uh between the deeds closing, we had like 250, 260 last year. We were we were just cranking it because we were like, all right, like 500 bucks buyout. Okay, property's worth 40 grand. We can go sell it for profit 25, 30k. Yeah. One air, two air. Oh my gosh. All day, dude. Sling it. All day. Sling it. We were sitting on inventory in December, and I went, wow, I'm glad we bought this for really cheap. It's like nothing. Yeah. Like it's nothing. So we have we have scaled back and I got more selective on it, and it was a nice little reset. I mean, it was a high tempo last year.

SPEAKER_01 1:20:49

Yeah. Makes sense. That's cool, man. That's cool. Um, I think is gosh, I feel like there's we we've covered so much at this point. Yes. Uh, in terms of just like where you're going, you know, it sounds like we don't want to grow this into a you know 100 deals a month operation or anything, just brain damage wise, right? Yes. Uh, what's um like what's kind of the five, 10 year vision for you and your family and your business right now? Wow.

SPEAKER_00 1:21:13

We're our three years pretty packed. Um I'm going into real estate. Obviously, I'm gonna keep real estate. Like that's the bank. Of course, that's our base, that's where we came from. Um I'm doing a lot of downing in like stocks right now. Um, day trading is a very big thing in my mornings. I'm sure I won't take any meetings before nine. Okay. So we're doing that. We've got two other asset classes we're actively investing in. Um, it's gonna be fun. I think in the next three years for us, it's gonna be wealth preservation at this point. Okay. For our family, I've got my daughter. We're probably gonna have another kiddo at some point. Yeah. I mean, gonna have to. But honestly, it's building out what the next 10 years come back. Yeah. Okay. What's gonna last long term? Is it my long-term holdings? Obviously, that that's one thing. But it's building out the tr the roots in the Bobbit tree. Yeah. What's gonna make this last for the next two generations, three generations? What's that look like for when my daughter's kids go, hey, like grandpa, grandpa McLean, like what did he do? What did he how'd he make this happen? Because he was first generation. What'd that happen? What did he do? Yeah. And for me, it's looking at it and going, okay, real estate's our basis. Okay, our other one's gonna set a name. And then obviously, okay, here's our stuff where it's our family holding stuff. Um but yeah, later on podcasts we'll talk about it. But for me, it's stuff like Pace Morbius said this before, and that's I'm gonna credit him on this. Is we have the financial piggy bank, we have the emotional piggy bank. And for me, I have a really big heart towards like uh adoptions, obviously, adoptions or like families that are trying to get established, things like that. And so for me, like my passion project is working on adoptions with local cameras. And dude, I get chills like anytime I talk about this. I I'm I have not said this on a podcast, so you're first one. Yeah, that's great. But my passion project is working with attorneys for adoptions, families that whenever we did fostering, there were families that they would say, Hey, we can't adopt this kid that's been with us for 18 months, two years, because they couldn't afford the $3,000 for the attorney.

unknown 1:23:21

Oh my god.

SPEAKER_00 1:23:22

And so these kids are going 18 months, two years with the families, and they go, Hey, we can't adopt you, so you have to go with another family that can't adopt you. Oh that is heartbreak for both sides of and it was because of the cost. And some kids they'll sit there for three, four years and they go, Yeah, we're saving up to get the money. Because they're we are lucky to be in the means of where we can shell that out pretty easily. Well, not I it's a blessing, but there's families that they go, we would love to adopt the kid, and it's that name change and being able to go, that's my son, that's my daughter. And so that's my passion project. Like, I would not be here if my grandparents didn't adopt my dad. I wouldn't be here if I was not in that position to go, hey, I would really love to adopt a baby girl or whatever came our way, whatever total godsend on our daughter, how it all worked out. And there's families that are out there that are looking for that. And I know that even though for us it's our passion project, for them that's a generational change. Totally. That is new beginnings for that family or that kid. And that's where that's really what my heart's at the next year.

SPEAKER_01 1:24:26

Yeah, that's so cool, man, that you get to be used in that way. We're like, hey, I learned a valuable skill in real estate, and because of that, I literally get to grow families. Right? Yeah. Like that's cool, man. I appreciate you being willing to share that on here. Yeah, that's cool. As we um, as we close out here, just a couple of last questions for you. I guess, um, you know, in in the past six years of really growing your business, what do you feel like has been maybe the most impactful lesson that you've learned?

SPEAKER_00 1:25:00

Um cut your losses quick. Yeah. One. Um I'd say the most impactful is always be humble. Okay. Always be humble. You're we are always one big deal away from being blown out. One market change. I mean, there's guys that in 2022 they were only selling to hedge funds because they sucked at sales. And they didn't come to Audjay. That's true. And so you have guys that had they've been wholesaling for three years, things like that, and they got wiped out because hedge funds stopped buying. Um, you have guys that were doing subject two, margins got thin, uh, basically whatnot, short sales are way in, way more in. And so we're always cycle to cycle or deal to deal, where you have to be humble and go, Okay, I am treating this just like as if it were a I don't know, it's like an aggressive rawweiler. Like it is a tool for us to make money, but also at the same time, it can humble me. And I think a lot of guys I got humbled in 23 and 24, took some big losses, and I was like, Oh my word, I can't even get out of bed. Yeah. And sickening, but like I hadn't had my humbling moment then. It was still like, hey, we caught our stride, we know what we're doing. Yeah, dude. There's always levels to being humbled and going, okay, am I going to get through this? And is it just a lesson or is this it? Because a lot of guys get wiped out and they're like, Man, I just would have, if I would have been more humble about it or understood the severity of what we were getting into and cut our losses, learn your lesson with what we would have been in a different place.

SPEAKER_01 1:26:34

Yeah. That makes sense. That's great, man. That's great. Um, I guess, you know, last thing is just like any final words of wisdom, anything you wish that we had uh covered during this episode. Any any last thoughts as we close out?

SPEAKER_00 1:26:50

Um, you get what you go looking for. You get what you go looking for.

SPEAKER_01 1:26:53

If you found the podcast, you're in the right place. Yeah. Well, Clain, this has been super valuable for me personally in my own business, even. I feel like I'm gonna have to re-listen to this when we publish it, but thank you so much for being willing to just come out to the office, sit down, have an honest conversation about life and business. I think, you know, the the internet is a really big place filled with a lot of people that talk the talk. And I think you're one of those few guys that um does a lot more walking than you do talking. And it shows, man. And you're you're authentic, and and I think the world needs a lot more of that. So just thank you for being you and thank you for giving us the time today. Yeah. Happy to be here. Happy to provide and give where I can. Thanks, brother.