Legendary Sean Terry Shares How He’s Wholesaled 2500+ Houses for $40M+ in Fees

Steve Trang: Hey, everybody. Thank you for joining us for today's special episode of Real Estate Disruptors. Today, we have Sean Terry flipped to freedom, the legend himself, another major wholesaler in the Phoenix market. And we're here to talk about how Sean has done 2,500 plus transactions for over $40,000,000 in fees.

Sean Terry: Crazy, crazy. What's up? So what we got? We got we got we got We got

Steve: three cameras.

Sean: We got three cameras here. We got what do we got? We got, Facebook going, YouTube going. So what's up, crew? I'm, happy here to, answer your questions, talk real estate, and talk to my man Steve here.

Steve: We're gonna do it.

Sean: Will you rock the house?

Steve: We're gonna rock the house. So, guys See,

Sean: I usually like to stand up. Right? You gotta stand up here. So we might be standing up probably here. So camera guy camera guy in the back over there, we have to deal with that.

Steve: If it's your first time tuning in, guys, I'm Steve Train, broker and owner of Stunning Homes Realty, founder of the OffFast Homes app, the only MLS for off market wholesale properties. Boom. And I'm on a mission to create 100 millionaires. So if you wanna join us in that movement, follow me on Instagram, steve dot trang. If you're excited for today's show, please give me a wave.

Give me a thumbs up. And as a friendly reminder, I don't charge a dime for show. I don't make any money doing this. So here's all I ask. There's a cost for you guys to listen to this show.

If you get value today, please subscribe right now, share with a friend, or tag a friend below. That way, we can all grow together. And as you guys can see, this is a live show. So please post your questions. Sean's here to answer those questions.

Sean: So okay. Here's the question. Who wants to be a millionaire? Right? Who wants to be a millionaire?

So he's gonna make a 100 millionaires. That's pretty that's a bold, aggressive. Right? That's awesome goal. So on here, who wants to be a millionaire, and, and what do you think it takes to get there?

We'll talk about that. That sounds good.

Steve: We'll definitely talk about that. Yep. So I'm gonna do my best and not sound like a superfan now. Right? You know?

And, like, be a giddy school girl.

Sean: I was kinda giddy walking in, man. I was like, man, what's up? I get a lot I always once walked in the CBD place next door. You know? Calm the nerves.

Yeah. I know. Yeah. I calm nerves a little bit. Right?

Yeah.

Steve: So for you guys that don't know, there's a CBD oil place right next door. Just in case. Right? Just in case. So we always start the question or the interview with the first and simple question is what got you into real estate?

Sean: What got me in absolute 1000% massive, ridiculous frustration with my life. Right? So, I was initially introduced to real estate in the Gulf War. I bought Robert Allen's book, No Money Down Real Estate. And I was 21 years old, and we invaded, at the time, we invaded Iraq at the time.

And I was I was 21. I was on ship. And before I went on ship, I wanted to get some reading materials. I was a US marine from '88 to, 1992. So I was, deploying over to Iraq.

Didn't know if we're gonna come back. I went to Horton Plaza, Downtown San Diego, went to the bookstore, and found this book on real estate, No Money Down Real Estate, Robert Allen. Happened to read that on ship, and, that that's where it kinda got my bug about real estate. That's where I wanted to you know, I I wanna do something real with real estate. So me and a buddy of mine, his name is Scott, we saved up some money.

We came back at 21 years old, and we went to Scottsdale over on, Scottsdale Road in Earl, if you know that over there. Mhmm. They have all these, like, you know, old apartment complex. Yeah. So we didn't know.

It was 1992. Didn't know at the time that there was a savings and loan crash. Right? And the market was decimated. Right?

Especially in Phoenix. So, we go in and we find this guy in an ad. We you know, we're circling ads, and we call the guy up. And he was willing to do a wrap around around mortgage, right, which we use today, you know, all the time. And, he we bought his 16 unit apartment complex for a little over $250,000 when I was twenty twenty, like, 21, 22.

Steve: Mhmm.

Sean: Lived on lived on-site. We had an apartment there. We lived on-site. Managed the whole thing. We cleaned the swimming pool.

We cut the palm trees. We cut the grass. We managed the whole thing. We collected the rents. Did that.

So that was my first real estate experience way back when. Then I kinda got out of real estate, and I was, you know, pulled into a different direction. That's where I I got learned. Actually, it was a multilevel company. I was recruited by my wife.

She was so hot. Right? So I was just like, you know, real estate, hot girl, real estate, hot girl. So I was like, hot girl. Right?

So she got me into We're

Steve: in your twenties.

Sean: Yeah. I know. So she got me into, this multilevel that actually was in it for years, and and, we did well. But I I learned about self education. I learned about, you know, you know, because in in network marketing and multilevel marketing, you go to a lot of events.

So went to a lot of events, and I learned about personal growth, self development. The better you are, the better you become. And, that just kinda took off from there. I learned that in about, that I came up I became a trainer for them. So I flew all around the country teaching, you know, how to sell water filters.

Steve: I bet that made a wonderful foundation Yeah. Well for the real estate industry.

Sean: Yeah. I mean, because I mean, we're selling water filters in 1996, 1998 when everybody believes the water is fine. Now everybody knows that the water's, you know, junk. Right? So so now it would be a lot bit easier.

But, anyway, so the bottom line is I, I I I got out of that, and and it was, like, 1999. I started my own business, doing pools and landscape here in Phoenix. So I go to someone's house. I design a pool, design their landscape. And I did that from, like, '99 to 2003.

And then then that's where I was ridiculously frustrated. I was, you know, I was just getting by, living month to month, frustrated. I had a new daughter at the time. I wanted more for my life. And I just I had the education.

I knew about real estate, but I just wasn't applying. I was stuck. Right? I was stuck. So my wife's like, man, you should get back into real estate.

So then I looked at becoming a real estate agent, and it just didn't resonate with me. And I I read a millionaire real estate agent, I think it was. And I read that, and it just didn't resonate for me. And then, and then I was the whole I was driving down the freeway. I was going to a pool and landscape appointment.

This guy is talking about how you can flip houses. I thought he was crazy because I didn't know I thought you had to have cash and credit to make money flipping houses. Mhmm. So, so he talked about guys making $5.10, $1,520,000 dollars flipping houses. Numbers.

Yeah. And ridiculous. So I'm a born skeptic, born and raised in New England, so everything is a joke. Or I was like, there's no way. What a scam.

Right? And I was like, this is ridiculous. I turned the channel, continued driving down the freeway, and I was like, this is absolutely crazy. There's no way, that can happen. Now today, I know it was God's intervention.

And I was like, he's tapping me on the shoulder, and I turned the channel back. And I continued to listen, and he explained the concept to wholesaling. And it's amazing because I had an epiphany. Right? And an epiphany is amazing thing because you're like I was like, wow.

I had no idea. It shined a new light on what could potentially happen. And that epiphany happened for me, and I was like, wow. I can take this concept. You mean I can sign a contract with a seller?

I can find a motivated seller, and I can turn around and and sign a contract with a buyer, and I can make the money in between? That's amazing. I was, like, freaking out. That was crazy. Right?

Holy cow. So, so I literally I bought the guy's course. I had a $250 Capital One credit card. My wife had a $250 Capital One credit card. I called the guy up.

The course was $500. I said, would you take two credit cards? He said, yes. I bought the course. It was deep, c they were VCRs.

I put it in the VCR thing. He had one little tiny manual. And, and I turned it on and I turned on. I was watching it on the TV. And this guy comes out.

It's black and white, video. And he comes out in these bell bottoms and a and a hat on from Texas. And, it was all recorded in 1992. Right? So it's 2003.

It's all recorded in 1992. And I was like, I I knew it was a scam. This is ridiculous. This guy's sending me this stuff from 1992. It probably doesn't even work.

Steve: You know? That's what they're selling on the radio?

Sean: That's what they're selling on the radio. So the guy got on the radio, sold he must have had a garage full of them, sold them all, and then I never heard from the guy again. Right? So and me, right, I buy it hook, line, and sinker. So I go through.

I start listening. I was like, I don't know. So he he said, you know, go get a, a list of preforeclosures. I had to find that. There's not they didn't have all the websites and services they do now.

They didn't even have Zillow. I didn't even think they have Redfin. I don't even think they had Facebook. Right? They didn't have cell phones.

Right? I don't know. Anyway, so the bottom line is, I bought this list and, I, I went knocked I started knocking on pre foreclosure doors. And I started knocking. I finally found a guy that wanted to sell his house, and I didn't know what I was doing.

I didn't even have a contract. I went to Staples to go get a contract, and I didn't know how to negotiate. I remember going in this guy's house. He stood me up two or three or four times before I got in there. I finally got in the house, and I didn't I didn't know anything about repairs.

I didn't know about really negotiation when it came to a house. You know, the guy's like and I got like, well, what do you want it for? He goes, 86,000. I was like, done. Right?

I I didn't didn't do anything. I just, like, done. Okay? Sign the contract. And, I didn't have any buyers.

And, luckily, I turned around and sold for, like, 98,000. I made $11,008, and that was in my first three weeks. In, May 2003, I got my That's really good. My first check. And and for all the people out there that haven't got a check, if you haven't got a check yet, that's the first mission.

Steve: That's

Sean: all I can say. You know. Yeah. Yeah. You know, that that first check changes everything.

It turns doubt into, into proof of concept. You know now it can be done. It's a shut up check. It'll shut up all your friends, family, relatives. They're telling you you can't do it.

So whatever you are right now, it's gonna be a literally obsessive mission to go get that first check. And once you get that first check, that's where momentum happens. That's where you're like, I now I know we can do it. Now you can just rinse and repeat, and that's where scale comes in.

Steve: Well, so that it's that box. Right? Like you mentioned, like, mentally, you've checked that box. Okay. This is real.

This is not a scam. I can do this. Right. And you have money to make more deals happen. Correct.

So that's that's awesome. So that was the first deal.

Sean: Yeah. What were your struggles after that? Well, actually, that's a that's a great question. So I, got my first deal. And, my second deal, I found this dilapidated house that I put under contract for, like, 30 something thousand dollars.

Like, maybe it was, like, maybe it was, like, 25. It's pretty cheap. And the guy had me drop off a thousand dollar earnest money to his house. Right? Big mistake.

And made it out to him. He made me, basically, cross out or, you know, get rid of all my, cancellation clauses, my, you know, my out clauses in the contract. So I had all my out clauses gone, because he he negotiated with me using a bogey. Right? So he call he basically said, hey.

So listen. I've got four of the guys that want this thing. I got one guy that's gonna you know, he's just gonna give me the earnest money, and he's gonna take it out. So if you want the deal if you can do it for $500 more and you can match that, it's your deal. And see, I fell for the bogey instead of pushing back, getting telling you what I wanted.

So I was like, okay. Right? I fell for the bogey. And, I got the property under contract, took out my out clauses in, and then I couldn't find a buyer. Right?

So now I'm struggling. And and I'm going bananas finding buyers. I didn't have a buyer's list. Didn't have any place to look online. Right?

So I'm literally I'm calling eight real estate agents. I'm calling, you know, other people, getting referrals, talking to title companies, anything to find a buyer. Finally, I found this father and son team that came in and looked at it and basically gave me $2,000 more than my contract price. And by the skin of my teeth, a couple days before closing, I was able to get out of that deal and made $2. Yeah.

And that was my second deal. It came in with a couple weeks after my first deal. My third deal after that took, like, two or three months after that because, and and I I people ask me what's the key to success. Right? What's the key to success?

The key to success, in my opinion because people go it's almost like it's almost like have if you ever been to the gym. Right? If you get to a certain weight and you freak out, right, you're going, holy cow. I've gotta do something. Yeah.

My my stomach

Steve: is

Sean: hanging over my belt. I gotta do something. Right? So what you do is you go to the gym. You wake up early.

You go to the gym. You work out hard. And then you get to to a certain point where you feel comfortable. And now you start eating the cookies again. You can start eating the ice cream again.

You start eating the pizza again. You start, you know, drinking milk or doing whatever you're doing, eating sugar.

Steve: You're describing my 2019.

Sean: Yeah. Yeah. And then what happens is you you get comfortable, and then you stop doing what it took to get you there. And then you go back right back down. Mhmm.

And then you're in the and you have this. And a lot of people in the business go through this this type of, roller coaster with their income in their business, with their life and everything. And the secret is is having the discipline to continue doing those actionable items all the way past that line where you're comfortable and continue doing it, and that's where you get stratospheric success. Right? And you keep doing those things.

So what I've learned, you know, over the fifteen years is when I don't market, when I don't generate leads, when I don't have make offers, when I don't make written offers, when I don't when I don't do that and I kinda back off that, then I go back. You know, income goes down. So if I look at a correlation between those actionable KPIs, those items, and look at the result of the revenue, there's a absolute 100% correlation between those two. So, you know, you've you've seen you've had a lot of incredible people sitting in this chair. And, and every one of them, the reason why they're successful is because they've matched that correlation.

And whether it be, whether be talking to sellers, you know, you know, making appointments, talking to sellers, you know, making written offers and getting contracts, everyone does it in a certain way, whether what we just talked about, being in someone's house, belly to belly, doing it over the phone, whatever the case may be. They're doing the same thing. But the the secret is doing it in a consistent basis and keeping your team accountable for those steps every single week. And, and that and that's how it just progressively scales. Now I'm I'm telling you, I'm not perfect.

I'm like, I know you're not perfect. But, over the years, it's gone like this because I get in the I get in the way. Right.

Steve: Well, I think that's a really good point. And I think one of the greatest challenges, I think someone, mentioned it last week, was, as a solo entrepreneur or solopreneur, right, you're running a business on your own. When you're out getting contracts Yeah. You can't prospect. If you're putting out fires, everything else is getting left aside.

So how what will you say to someone that's having that struggle right

Sean: now? Well, it's it's almost prioritize prioritizing. Because whatever you prioritize, you make time for. Whenever you make time for, you'll do. Right?

So what happens is you have to have that priority. If you knew that the priority marketing every single week and I have to do lead generation, that's part of it every single week, even as a solopreneur, well, guess what? Now I don't care if it's 10:00 in the morning, it's 02:00 in the morning. That's part of your have to, must to. It's a commitment to, and then you'll do it.

It just the problem is we go out and we get, you know, $80 deals. Right? Mhmm. And now it goes and then it's, like, you know, 01:00 in the morning. You're like, I'm tired.

I've been all day talking to sellers. I wanna go to bed. But I gotta get I gotta pull this list. I've gotta, you know, make sure it's the right one. I'm gonna send it over to the marketing company.

I gotta make sure I gotta pull a number on CallRail, you know, make sure it's tracked. I gotta pick out a marketing piece. I gotta get it out so it goes out on Friday. Right? Mhmm.

Steve: And then

Sean: but it's 01:00 in the morning, and they have a decision to make. Right? Now when you're hungry, right, and you're hungry, then you're gonna stay up at 01:00 in the morning. And it's not you're not gonna go to bed until it gets done. Right.

But then when you're comfortable and you got a couple deals in the bank, you got money in the bank, then you're going, maybe I'll just, I'll do it tomorrow. Then tomorrow comes, you get a phone call in the morning. You got a title company you have to run down to. A buyer you have to deal with. A seller they have to pull across the line.

A couple other meetings, the next thing you know, it doesn't get done. And then it doesn't get done the next night, the next night.

Steve: I'll get to it tomorrow.

Sean: I'll get to it tomorrow. But those decision points Yeah. And it's the little things of just saying, hey. I'm gonna deploy marketing every single week. So what I do is I know I'm not good at it.

Right? I know that I know myself, and I know that, you know, for certain things, if it's 01:00 in the morning, I'm gonna go, forget it. Right? Because I'm human. Right?

So what I'll do is now I hire for it.

Steve: Right.

Sean: So I hire. So I say I'll say, listen. I need this task done every single week, and then I'll hire someone for 12:15 bucks an hour, and I'm gonna hold them accountable, and they're gonna go do it. Right. Right?

And now I know it's done. And if it doesn't get done, guess what? You're you're you're fired. Or we're gonna correct. We're gonna try to figure out and and and get it done.

So I'll pull myself out of the way and hire for the disciplines, and then I can only focus what I'm great at, right, and focus on the good the things my my unique ability where now I can hire all the things that were were bottlenecks because I was a bottleneck in the business. And if you can do that, then you can exponentially grow a lot quicker. Because imagine if you had all the things you suck at Mhmm. Right, of you know, and having hired out for it.

Steve: So I'm completely on page on the same page with you. Right? But I'm sure in your many years of coaching, you've had students that will fight you back on this. Like, I can't afford it. I can't afford it.

So I'm sure you, by now, have some sort of speech or rant that gets them over the hurdle to make that first hire.

Sean: Right. Oh, to make the first hire they can't afford they can't afford not to. Right? So it's like actually, I just on the way here right? There's this guy I'm working with in Atlanta, and I rarely ever take on, like, personal one on one coaching students.

But, it was a referral from someone I knew, and the guy, like, you know, begged me. He's like, hey. And he said that in that situation. I don't know if I can afford a hire. I don't know if I can do it.

You know? And, and I was like, let me ask you a question. You know? You signed up for a reason. You wanted to do coaching for a reason.

Right? So you wanna go from point a to point b. And are you comfortable where you're at? Because if you're comfortable in the ad, then we're done. You know?

We're we're done. Right? Because that's not when you sign. You you wanted to go here. You told me you wanted to go here.

And you are if you're comfortable where you're at, then we have nothing else to say. We we're we're are we're we're done. You can move on. But if you're not comfortable where you're at, then the only way to get to where you wanna be is to hire. You know, I I don't know any massively successful person that has done their whole entire business alone.

So and when I talk about behavioral congruencies, right? A behavioral congruency is try to adopt a behavior or a congruent behavior that you can match. And if you when you're doing that, you gotta look at successful people. Well, I mean, like a Grant Cardone. Right?

I mean, the guy I mean, he's a hiring machine. He's a firing machine, but he's also a hiring machine. So are we. Right? Yeah.

So the bottom line is is that if you wanna get here the component, the recipe, the behavioral congruency, it takes people. Right? So, you know, what do you wanna do? You know? So stop your whining.

You know? You know, man up, woman up, right? You know? Place an ad in Indeed, put them through the funnel, and give them to Rafael Cortez, you know, And if it was a testing process, then hire them.

Steve: Right? Absolutely. Absolutely. So, you know, one of the things that helps you build your brand Mhmm. Is podcasting.

And we talked about this. I thought you were the first guy to podcast in real estate. You corrected me. But talk about that. Like Two others.

Mhmm. But you made the decision to podcast. What prompted that decision?

Sean: That's a great that's a great another way. You're very good, man. Very good. This guy's good. This guy's good, hon.

Give him give him give him a couple thumbs up. Put some hearts on there on, Facebook up there, wherever you're on in. So I just would do do a bunch of cool stuff to make them make it, give them some love. Alright. Great question.

So, real estate is a very selfish business. Right? Mhmm. Except where unless I mean, our you know, we we always try to put the seller's problem in clientele first. We wanna solve that problem.

But we're doing it on a small scale. Meaning, when when you do a deal, it's about, you know, getting the deal, buying the deal, you know, flipping it or buying, fixing, and flipping or doing whatever. The impact is is a small impact. Now you are making an impact in the seller's life, maybe the neighborhood and stuff like that, but it's on a on a smaller scale. So it's it's really about you doing deals and making money.

Right? So, when I read the book, The Go Giver, which I highly recommend. I'm sure you've heard of it. Right? And it talks about the seven Brandon gave me

Steve: a copy.

Sean: Yeah. Brandon did. Yeah. Yeah. Yeah.

Because I gave it to him a copy. Right? So the seven stratospheric laws of success, one of the one of the stratospheric laws of success is, obviously, the more people you impact, and have success, create a 100 millionaires, great model, right, the more success you're gonna have. So if you pour and make that the predominant mission to create a 100 millionaires, well, guess what? In turn, you're gonna be, you know, a billionaire.

Right? Mhmm. In turn, you're gonna create that amount of success. And it's amazing that there is you know, I don't, you know, I don't, you know, I I look at properties all the way if I want to, and I I don't sign docs. We just get wires that come into the account.

We get big wires, small wires. They're coming in all the time. So, you know, I know when you first get started, you get that first check and you get a big wire, you're like, it's exciting. But then it it comes to a point where you're like, it's expected. Right?

Mhmm. You you just get wires coming in your account, right, from deals you're doing and stuff like that. So the impact you can make in someone's life is is I mean, it's amazing because it's a ripple effect. It just it it it completely changes people lives. So, so I read the book, and I decided to start a podcast in 2010.

There was no podcast. There was Real Estate Guys Radio and Lifestyle Unlimited. Those were the two real estate podcasts. But I didn't know anything on how to create a website. I didn't know anything about HTML.

I didn't know about WordPress. I didn't know anything about audio recording. It's before I had a Mac. Right? So, I didn't have all that that that all that type of stuff.

So I I I I was like, I gotta I wanna get into it, you know, and I wanna make an impact, but I didn't know if anyone was gonna listen. I was like, who's gonna listen to me talk or whatever? So, I literally got a little recording device and I, my first 10 episodes, Phoenix, Arizona. I think it was, like, June, 2010. And I went and I and I I didn't have an office at the time because I was doing a lot of stuff.

I was like a, you know, doing everything myself, like a solopreneur. I didn't it wasn't starting the hiring and stuff. I had a couple hires, but not. But so I didn't couldn't do it at my house, couldn't do it at the office because I didn't really have a safe space to do it. So I I was in my car.

I parked at AJ's parking lot that's down the street. And, I had the AC going because it was hot outside, and I recorded inside my little mic. I'm sitting there recording my first episode. And I went back and listened to it, and I could hear the wind of the AC on the podcast. Right?

Now we're in a soundproof room, a cool studio. You got the cameras all set up. You got your guys in there.

Steve: It's comfortable.

Sean: Right? It's all comfortable. It's nice. But I'm sitting in there, and I got there, and I went back and go, oh. I said, I you got the lights on here?

I was so mad because the wind was on it, and it was a great episode. I was like, ah. So I went back, and I said, like, I gotta do it without the wind. So I put the AC down to one, and it still made a noise. So I said, you know what?

I gotta turn the car off. Right? Now Now Oh. Yeah. We're in Phoenix.

Now what what's the temperature out here? Bloody hot. Yeah. It's hot. So now you sit in a car in the sun, and my car at the time had black with black interior.

So I had in my car, I'm recording the podcast in my car, black to black interior with a 100 and plus degrees out, literally dripping sweat, melting, and that was the first 10 episodes I recorded like that. And I taught myself a HTML up from 10:00 to 02:00 in the morning. Video editing, I taught taught myself audio. I would I would cut every single out of the recording. Really?

Every which was it left, like, no content left. Right? It's like so I, like, cut every all the um's out of the first, like, couple podcasts. I was like, oh my gosh. I can't do this.

And I so I had to did I did all the figure out RSS feeds, figure out how to post it, figure out Amazon s three. This This is before Lipson. How to get it up on, you know, up on the site and get it push it out to the public, hoping or maybe that people would start listening. And then it was weird because about six months into it, I I did there was really not good tracking inside, Amazon s three, but I finally pulled some tracking out. I was like, wow.

We have, you know, thirty, forty thousand people that listen to this. This is crazy. Then Joe McCall calls me up, and then this happens. So it's literally you know, it's just been, you know, doing podcast. And it's, I think we have over 11,000,000 listeners now in a 196 different countries.

And it's blown up to where it's turned into the whole thing of live events and education and training and stuff. And, it's been pretty cool.

Steve: Well, so you talk about impact. Mhmm. But there's two people that have been on the show. Well, actually, probably multiple people on the show that have been impacted by your message. But two that worked for you Mhmm.

Get Rafael Yep. And Brandon. Yep. And they're off doing their own things as well. Yeah.

Great. Yeah. It's incredible the impact you've made. So, there was an event, you know, Max Maxwell's event. We live in Dallas.

It was me, Jamil, Evo Annie, Jesse Pace, Bryant, and we're all hanging out. Mhmm. And they were out there to support me because that's the first time I was speaking, you know, in front of a thousand people. It was kind of crazy. Yeah.

So it just came out.

Sean: Or you crushed it.

Steve: I did. Alright.

Sean: Mhmm. Right.

Steve: So, but there we had other people there in Texas, like, looking at these Phoenix people, like, you guys are all like, you guys are all the same company? Like, no. We're competitors. Right. Like, we're all trying to go to get that deal.

Right. Yeah. And they're looking at us like, what this is just weird. Right? And so I was, like, racking my brand.

Like, you know, what what is it? And I went back to it. It was, like, you know, Brandon's been somewhat influential in our community. But I was thinking, I think Sean's podcast

Sean: Mhmm.

Steve: With the go giver mentality. Right. Collaborative. You're out to help each other. Are we competing on the same battlefield?

Mhmm. 100%. Right. But off the battlefield, we're comparing notes. Hey.

What's working for you?

Sean: How can we get better? What can we do? Yeah. And I think on the podcast and what I like about you and what you guys do, is in part of the go giver mentality, Brandon's adopted it. Rafael's adopted it.

I mean, Carlson sells adopted it. Rafael Vargas adopted it. You know, there's a lot of names in the industry that has adopted is that, you know, give everything you've got. Right? Give give it all.

And people are afraid because they have a scarcity mentality that I don't wanna give my best stuff because then it's gonna divert them that to then and I want don't wanna pay for my stuff or or coaching or whatever it might be. But I look at I've got tons of people that have never bought a product, never been to any any events or anything like that, and they've left me messages saying, listen. I've been following you for five years, and you changed my life. And now we're consistently doing a 150, $102,100,000 dollars a month in revenue, and I wouldn't be here because it wasn't for you. I'm like, good Duke.

That's awesome. Thumbs up. It's amazing. So it's great to make an impact. But if if if you're my I never started the podcast to turn it into revenue.

Mhmm. I started the podcast for the sole purpose of giving as much as I possibly could to make an impact. And then it turned into where people are going, I want more. How can show me the system. Break it all down.

How do I get your contract? So I literally had to create a membership site. And I think Brandon was, like, the the thirty fourth person that ever signed up to part of Flip two Freedom. And then, you know, we did deals together and stuff like that, and it turned out turned out pretty well. But I think if you come from a scarcity mentality, you wanna hold your information.

Right? And that will never get you because it's a, you almost have an ulterior motive, you know what I mean, inside. But if you're just free to give everything you got, you know, it'll come back to you tenfold. Alright.

Steve: There's only so far you can go Yeah. Trying to hold it all to yourself.

Sean: Yeah. You you can't. And it's, and it just it's not authentic, I don't think. And it's not real, and it's not, you know, it's not genuine, and people will pick up on it.

Steve: Absolutely. You know? So, you know, when I was, first getting into this wholesale side, you know, I don't know how much you know about my story, but Mhmm. I was a realtor just trying to get listings.

Sean: Right. I was

Steve: like, well, how do I get listings? Well, I know how to do pay per click. Let's check out pay per click. Right. And when I started, you know, I figured, you know, what's my house worth?

What will my house sell for? I was going after the appraisal keywords. Right. That was nothing.

Sean: Right. Right. So I

Steve: was like, okay. What what's working here? Sell my house, buy my house, sell my house fast Yep. Sell my house for cash. Like, okay.

Well, let's go after those keywords. Right. And one person kept popping up over and over again. That was you Right. With the old lady.

Sean: Yeah. Yeah. Yep. Yep.

Steve: I think it was, like, security title, right, in the background. Yep. Downtown. But, you know, I was looking back in the day. Can you imagine?

This is 2012 when I started pay per click. I don't know when you started pay per click. When well, when did you start pay per click?

Sean: We started pay per click back in 2006. 2006? Yeah.

Steve: Okay. So you had a much longer, really good run. Mhmm. Because when I got in, it was basically you and me. But I was looking at the stats when I started.

It was $3.80 a click. Wow. And $12.76 per lead registration.

Sean: Right.

Steve: And they were given their phone numbers.

Sean: Yeah. So we're cleaning up.

Steve: We're we're That was great. Yeah. So those days are kinda gone. Yeah. But I it was just something that I wanted to share because

Sean: Well, it's it's interesting because, you know, any any, like it's it's funny. Like, anything that I've ever done and tried to master, then I I I teach it. So I I I use my real estate investing wholesaling business as almost like an incubator Mhmm. To test stuff, to change stuff. And then if it works great, then I'll take it over and then teach it.

Steve: Mhmm.

Sean: So, the entire so Google AdWords, it came I used it, tested it, modified it, loved it, and then it became I actually taught it. Right? And I saw people had to, you know, get websites, but instead of using HTML, use, like, on caret. Actually, initially, I I taught people initially to code on HTML using your free, HTML editor. Right?

That sucked. Talk about the support tickets. Right? So but now you got on Carrot and stuff like that. So I literally gave people my campaigns that they could use, and they could use all across the country.

One being Scott Oats. Right? Mhmm. So he came came in. I got him set up on a on a, he he he had three fix and flips he had done at the time they're all losing money on.

Came into my office, and I said, hey. We we gotta get you up on AdWords, then we'll start working with the direct mail and other things. But he launched pretty much our camp my campaign directly, and, and turned around, drove him to OnCarett, and did over a million dollars his first year just off just off that. Now he's taken it, modified it, and changed it, and made it better Mhmm. Which is great, which is phenomenal.

And he's an incredibly intelligent person. Yeah.

Steve: He is.

Sean: Very sure. And, awesome, awesome guy. Great great with people. But it's literally it's it's been so I've I've done that, modified it, and then and then turned around and, and then launched it and trained, you know, taught it. When it came to the nine step seller conversion sequence, how to read personalities, read handshakes, be inside a house, the objection annihilation method of overcoming objections, you know, the 16 top objections, all that came from teaching my sales team and then turn around and and then now putting covert, intuitive presentation, which was an iPad presentation, we took that, worked incredible, brought it out, and turned around to the market.

When it came to the, the whole 100 k wholesaler, we took Traction, which was by Gina Winkman, great book, one of the best business books I've ever read.

Steve: 100%.

Sean: Took that and built the entire 100 k wholesaler blueprint out when it came to the organizational chart, to the meetings, to the scorecards, which pretty much everybody uses in the market all the way through. Because I took that and then turned around and applied it when it came to RVM, ringless voice mail. Right? No one was doing RVM up to a couple years ago. But I used it in my business for about six months, and it was crushing.

I was like, do I just keep this quiet? I was like, I can't do this because it's gonna go against my nature. Right? I can't do it. So I went brought it to the market and literally blew up.

And it was a new channel of marketing where you can get leads for, you know, a fraction of the cost than it would be Google AdWords, and it brought your overall blended cost per lead down. Right. Right. You know? So there's always things, you know, there's always things but if you're in it, the business see, I don't know how someone can teach but then doesn't do the business.

Right. Right? So that means you have to steal from other people. Mhmm. You're right.

Steal ideas. If you're not actively running a wholesale operation where you're you're dealing with problems every single day, every single issues and how to do it, then you're not able to, you're not able to do it. Right? You you can't Can't teach relevant information. You can't teach relevant information.

So now you're just pulling from other sources, and it's not really or and, also, you're not being innovative. You can't innovate, you know, and be able to, bring new things to the marketplace that will change lives. You know?

Steve: So Oh, that makes a whole lot of sense. So we talk about Phoenix. I don't know if it was because of you that we're the guru capital of the world. But at the end of the day, that's what we are here in Phoenix.

Sean: The guru capital. Because you're here, and you bring them all you bring them all here. Right?

Steve: Bring them

Sean: all here. Yeah. You bring them all here.

Steve: And have them, you know, do the tour. Flying in. So how would you say your operation today is different than the piers in town?

Sean: The piers in town? Actually, I, well, so there's I I have a my model is it differs. I'll kinda explain my model. So, I do fix and flip, and we do bigger end, higher end fix and flip. We got one in another.

And we we don't do a lot of flex to fix and flip. It's primarily fix and flip where, our minimum our worst case we we we look at our fix and flip. I look at my fix and flip model, and we go, okay. If it's the worst case scenario, there's the most likely and there's the best case. Right?

So it's a basically, a simple spreadsheet. So I go, you know, most people make a decision off the best case scenario crossing their fingers hoping that they're gonna go, oh, oh, yeah. Let's list it for this. It's gonna be great. I make a decision on the worst case scenario.

And if that worst case scenario is a $100 profit after paying all expenses and everything like that, then we pull the trigger on it. And then I'll give it to my wife. My wife, has a unique ability is going into a place, that and she can make things look incredible. Right? She can make it look great.

So I don't. I walk in. I'm like, this does it. Right? So she can make it look great.

So I'll buy it, and she'll turn around, and then she'll make it look great, and she'll do it. So, so that that's one little thing. We do, you know, fix and flip, and we've been approached by HGTV and doing stuff like that. And, and I don't know if we wanna go down that path. Maybe we will.

We're still you know, talking to him. Who knows? But, anyway, so the bottom line is is then I have my my wholesaling operation where I think we were talking earlier, and I've honestly, been stuck in the rut up to up to about and and Brandon, honestly, has been telling me this, and I'm just being completely transparent with you guys for years. He's like, dude, you gotta you gotta you gotta. And, I'm like, no.

No. I don't wanna deal with that one. I don't wanna deal deal with, you know, you know, phone team and all that type of stuff. Right? So, basically, what happened was is, I had a a traditional wholesaling where we generated leads, sales guys would generate leads, and we would go belly to belly.

And our methodology was get in front of as many sellers as possible, And then we have ways to monetize those particular sellers. Right? So they're gonna convert, anywhere from, you know, you know, anywhere from you know, a good sales guys can do anywhere from 20 to 30% conversion rate for good sales, and through their follow-up and for talking to sellers. So what they're gonna do is our methodology was getting in front of many as people as possible. You're gonna convert the ones to wholesale.

The ones you can't convert to wholesale, we're going to, have a listing relationship where we can do because we have a brokerage in the office that we have. Listing relationship, we can monetize those leads that way. I happen to own a title company just like you do, so we can monetize that way and push them to a title company. So, all that is, was a way to be able to, you know, to get in front of people. Well, you're limited to the amount of leads you can generate, the cost per lead, right, and you're limited by, how many appointments a person can go on driving around the, you know, driving around the market.

So a sales guy can go to about 18 to 20, and then they get pretty burned out. They're spending a lot of money, yeah, per week. A lot of gas. They're running. They're going crazy.

They're running and gunning. And that becomes almost too much. Right? A a person can only sustain to a certain amount. Now we do and I think we talked earlier about we do a lot of down payment arbitrage.

That's another whole methodology that we do a ton of in our business, I've been doing for years, that we brought out to the market and taught. But down payment arbitrage is a one of our core, acquisition strategies to get a lot of deals that nobody else is talking to. Right? Most people, wholesalers in the market, don't know how to structure them, don't know how to pitch them, and can't get those deals. So our methodology is getting in front of people, getting deals done, and turnaround selling.

And then, and then I'll take excess cash, and I buy large apartment complexes. Right? Yeah. So now I've, you know, I've I've met with, Carlson Sal. I've been to their operation.

I'm sure you have too. Yeah. And operation. Yeah. Alex yeah.

Great. And it it it's and I know Nick Perry, and I know some guys at, Steve, and and and his out of, at Canada, and the Josh up there, those guys up there. And I see what they're doing with this, you know, over the phone type of stuff. And, it's really resonated to me. So in the past six months, we've transitioned into a quasi model over the phone and then into other different markets.

So, which kind of opened up because I've been stuck in the mud to where, no, you've gotta be in front of people. You gotta be able to close it. But even look. I've been doing this for fifteen years, and I, you always learn. And if you get if you get narrow minded and stuck in the mud, you can be in a position it can cost you money.

And I personally, I think I was narrow minded, stuck in the mud, knowing this is what the model is and not being open to listening to Brandon Mhmm. Until you walk into an operation like Carlos and Sal, which those guys are phenomenal, and, and you go, wow. I mean, that person closed nine deals last month strictly over the phone and didn't drive anywhere. That that girl right there, she closed six deals last month. She didn't have to drive anywhere doing it just opens up the, the model where you can be more efficient

Steve: Yeah.

Sean: In other different markets and convert more deals.

Steve: Well, and I think that's really key, really important attribute. Right? Because as a leader, you know, you've reigned for so long. It's really easy to get comfortable. Right.

Not wanna make any changes.

Sean: Right?

Steve: Like, this is the way it is. This is the way it's always been done. Yeah. And this is why we're always gonna do it. Yeah.

So you you're able to make the transition.

Sean: Yo. Yeah. It came to the point to where I was like, you know, this is something, you know, we gotta do, we wanna do, I should have been doing. And, and then this is the process doing. But but the cool thing is is that it's it's, you know, I've been doing it long enough, and I know how to hire, You know, I know how to bring on people.

I I am I'm I'm not I have zero fear when it comes to spending money on marketing. You know what I mean? I'll I'll outspend, you know, whatever it takes. Right? Because I know

Steve: Tom took that, I made the comment earlier that you're the first guy to do 10,000 mailers a month or per week.

Sean: Yeah. No. Actually, yeah. It was yeah. It was interesting.

It was, you know, I'll tell that story too. But, but I'm I'm not afraid because I know if you have the system in place, you'll get the return. It's a box. Right? I am so familiar with the box that if you put if I put in $50, I know I'm gonna get $300 out.

I'm no one gonna get $250,000 out. And Mark's, like, why not put in $500 and get 3,000,000 out. Right? Right. So, but it's just having the efficient operation that can handle the amount of leads to handle half $1,000,000 in, you know, ad spend to be able to make it happen.

So, yeah, the the way back way way back when, I thought it was hot stuff sending 10,000 mailers a month. Right? I thought it was hot stuff. And, I I there is this guy locally here, Ron Davidoff. I don't know if you know who he is.

Steve: Yeah. I I know the name.

Sean: Ron Davidoff is like for me, he's like the godfather of real estate. I mean, he's he's done couple thousand deals since 1992, does a ton of, he was the guys that knocking on preforeclosures. When I first started, he was the guy that everyone's like, oh, man. He's crushing it. So he's since retired, and he bought a bunch of bunch of property and stuff and retired and stuff.

So, anyway, so I was talking to Ron. I called him, like, once or twice a month, and I was, like, you know, bragging? Oh, yeah, man. We hit 10,000 mailers this month. Phone's ringing off the hook.

We're doing deals. We're cranking it. And he goes he goes, yeah. I just, you know, I just dropped a 130,000 mailers. I was, like, you did?

I was, like, a 100 yeah. I dropped a 130. And I thought it was like I was bragging. Right? 10,000, man.

130,000 mailers. I said, well, who's taking all the calls? He goes, man, it's just going to my cell phone. So no systems. All calls into him.

All the calls are going into him, and I think he did twenty, thirty deals that month. So at that point, I'm like, okay. I'm dropping a 100,000. I'm dropping a 100 so I turn around. I call the mail house.

I I wired him, I think, 30 I think it's postcards at 33¢, and wowed them $33. And, and next thing you know, a 100 postcards hit. Now this is before Podio. This is before any system, before monthly meetings, before scorecards

Steve: Before CallRail.

Sean: Before CallRail, before any of that. So we came in to the office. I had one lead manager. I had an acquisition guy. I had a disposition guy, and everything's written on notepads.

And there everything's blowing up. They're like, woah, my god. The phone's ringing off the audio. It's gone. They're they're passing notepads over here and passing this over there and this, that, and the other.

But we did about I think it was over, like, 150,000 in revenue for the month. Right? So in a completely antiquated model, zero efficiency with yellow pad newspaper. So from that point, I put the direct correlation between mailers and revenue or leads and revenue. So and I think we've been, you know, doing close to a 100,000 every single month, you know, since,

Steve: you know, if not more. So so talking about making this change, right, this transition.

Sean: Mhmm. What does your organization look like today? So, we have we do we just fired some sales guys because they weren't they weren't kinda well, I'm They were selling. Five yeah. Yeah.

They weren't they were closing. Five, sales guys, that are between local acquisitions and then over the phone closers. We've got lead managers, essentially, two lead managers that basically take inbound calls and then will sort between the, take me off your list. And if there's it's a viable potential lead, then it will transfer to one of our sales guys. Right?

Then from that, we have a a in house marketing person that does all of our marketing to all the buyers, to all the handles all it's it's that person that I've hired that basically will handle all that marketing, right, to get it off the plate. So every single week, we get our Monday morning meetings, and, we'll batch out the marketing for essentially, like, two months. And then she'll deploy all the marketing, which is good so we don't have to deal with that. Then we have a a disposition person that handles all of our disposition. They they make sure the properties get sold.

And then I have a CFO, you know, some that will manage all the the books, QuickBooks, and all the money and stuff like that. So it's, that's the primary operation, that will, you know and I bet someone that does social media and stuff like that post on, all the social media sites.

Steve: Well, I see. You're you're the one that's doing the you're pushing the the IG live.

Sean: Yeah. Yeah. I'll I'll be pushing the IG live, you know, but they'll they'll post properties up on Facebook and stuff like that and push push them out and stuff. But

Steve: so, you know, the questions we're getting in, what marketing technique is working best for you?

Sean: Marketing technique? Okay. This is a great question. Who who asked that question? What's his name?

Steve: We had a couple people ask him.

Sean: Really? We've

Steve: we've got we got a long list of questions we gotta get

Sean: through. Okay. Okay. So great, great question whoever who after whoever, asked that. So so, historically, I would I looked at marketing channels as individual.

Right? Individual. So marketing channel being direct mail, marketing channel being Google AdWords, marketing channel being, say, Facebook or something like that as individual, type of channels that we track and measure. Over the past almost year, year and a half now, we've adopted omnichannel marketing. Right?

And omnichannel marketing is where you're everywhere. Now you in Phoenix. Right? And, you've heard Lerner and Rowe is the way to go. Oh, yeah.

Yeah. You you heard those guys. Right?

Steve: Yeah. Everyone knows the phone number.

Sean: Right. Everyone knows the phone number. And but where do you see them? You hear them on the radio. Mhmm.

They're on the side of a bus. They're on the they're on the Billboards. Billboards. Mhmm. They're on TV.

They're everywhere. Right? That's called omnichannel. Now omnichannel marketing, you have a, a 37% higher rate, when it comes to conversion, when it comes to lead generation, and your conversions go up. You know?

I think it's, like, eight times conversion. So if a seller hears from you from multiple different channels, not only does the response go up 37%, but your closing ratio goes up eight times. Of course. Right? So this omnichannel marketing so it's all built around the omnichannel marketing process, which then it starts for someone that's brand new, it starts with distress.

Right? So now we have distress lists. We got pre foreclosures. We got inherited properties. We got probate properties.

We got property tax default properties. We've got, vacant properties with liens. Right? So those are distressed. So our, our, basically, our our marketing manager will pull all the distressed list, and we market those, in a omnichannel fashion where they get direct mail every week, to to to the distressed.

We're gonna hit them with ringless voice mail. We're gonna we're gonna skip trace them. We're gonna we're gonna co call them. We're gonna text them. We're gonna hang them hit them with ringless voice mail, and we're gonna hit them with email.

Right? Mhmm. So so those people and now we're, and people ask about frequency. Right? With this with the distress list, how many times should I hit that list?

I get that question all the time. And I I equate it to almost like if anyone's ever got tried to get tracked down by a creditor. Right? Have you ever I mean, anytime. I know I have.

In the past. Right? Yeah. I creditor. Right?

Have you ever I mean, anytime. I know I have. In the past. Right? Yeah.

So, You don't

Steve: like it when you don't make your payments. Right.

Sean: Yeah. So you know? And, so but do they call once a month? No. Right.

Yeah. Do they call once a a week? No. No. They call every single day five times a day.

So we take on the creditor mentality marketing strategy with these distressed sellers, and we're going to bug the crap out of them, right, until they either, a, don't ever talk to me again, or, b, they're gonna sell us our house. Right? So we're gonna create that. So frequency is all the time. Right?

It's like you're, like, gonna inundate these people with your message coming. You're gonna be Lerner and Rowe. Way to go. Right? All over the place on these guys.

And you're gonna turn around, and you're going to, and to surround those. Right? So those are the distress. Because Because here's the thing. If you don't hit them with with mail every single week and and cold calling, every single day and texting every single day and marketing, you're just inundated with emailing them, texting, cold calling, RVM ing all the time Mhmm.

I mean, every day, right, then what's gonna happen is they're never gonna hear your message. Or we're gonna be in a market, and you're gonna mark let's say you and I are competing against marketing. You hit them once a month because you wanna be nice. Yeah. Right?

And I approach it with the, I'm gonna just bug the living crap out of you. Right? What's gonna happen is, who's who they gonna sell to?

Steve: The guy in front of me.

Sean: They're gonna sell to me that I'm in front of them because the attention span in this world is is is insane. So now now so the to answer your question, it's using all these channels to surround that seller with your message constantly for distressed only. Now you move into non distress. Now you have absentee owner. Right?

We used to do absentee owner, and we look at the older property. So we have, which is unique, which different from a lot of people across the country, we are also the hub for iBuyers.

Steve: Yes. We are.

Sean: Right? So all the iBuyers are coming in, and they're buying thousands of houses. Right? Mhmm. And I don't wanna name them all, but we know them all.

Right? They're all the iBuyers coming in, and they all start in Phoenix. They all start here. And we have to compete against them. Right?

So how do you compete against the iBuyers? Well, they're building their portfolios. They like the newer houses. And in Phoenix, you get the stucco with the with the tile roofs and stuff like that where, we target 1980 and below, houses with deferred maintenance, ten year ownership on the property. And we and we target in select ZIP codes, meaning and, we call it the perfect property avatar.

So we pick all the deals we've done over $20,000 and are distressed, and we turn around and take that $19.80 and below, you know, you know, that are ten year ownership, and we we lay that into the non owner occupant and owner occupant universe, and we'll pull out of there the, those, those ZIP codes that we can target in. And we do the exact same omnichannel marketing to that list. Right? But we don't bug the living crap out of it. What we do is we'll we'll hit them once a month with our message versus hitting them every single day.

Right. So So that's a very long answer to it.

Steve: But I think that's a great answer. Right? It's, you know, being in front of them when they hear your message Mhmm. From multiple different avenues. This guy has to be legit.

He's everywhere.

Sean: Yep. He's everywhere. And we're in front of them. And when I mean, because because most people, they're distressed, procrastinate. Mhmm.

Right? So they're gonna procrastinate everything. Right? And they're gonna procrastinate their all the they're gonna wake up in the morning, and they're gonna put on their list and it and they're gonna get to that point where they're they have to sell. I have to do it now.

So when they do that, you wanna be that call. You wanna they wanna get your text that day. They wanna get your phone call that day. They wanna get your message that day when they eventually put that on the list. And it and you can't you're you might do it once a month.

Yeah. And you're just gonna hope and pray that's that day is the day they wake up and wanna sell.

Steve: So everyone goes through a deny denial in the beginning. Mhmm. And you don't know when exactly because every person is different when reality sets in. Yep. And you just wanna be that guy.

Sean: Well, it's interesting. And I tell my sales guys this because how do you, you know, reiterate follow-up? And I think follow-up is the most one of the most critical things in your business. And I've always related it to the seller decision timeline. Right?

I'm saying maybe you've heard people talk about. Right? The seller decision timeline, which I've been talking about for years. But the seller decision timeline is when someone is going to when you're when you're gonna go buy a car. Right?

And you're gonna and you're thinking about buying a car, what do you do? Well, first off, you have the idea, I'm gonna buy a car. Then you're gonna go look online for different cars. Then you're gonna look at pricing. Then you're gonna look at, you know, which one do you like.

Then you're gonna do the virtual tour inside. Then you're gonna talk to some friends. And now all of a sudden, next thing you know, they show up all on the road. You kinda look at them. Then you're gonna go to a dealership.

You might go, you know, go in and test drive, but you're gonna go to three or four dealerships. You're gonna look at a couple different two, three different cars, and you're gonna narrow it down. And then you're gonna pull the trigger. Right? What happens is most real estate wholesalers are looking for the guy that wants to sell a house and pulling the trigger right there.

Right? And they the person that's already been through that timeline and they're ready to pull the trigger. Well, that's only a maybe anywhere from 10 to maybe 15% Mhmm. Right, of the the leads that actually even less than that, that come in there ready to pull the trigger, where you'll go in and they're ready to pull the trigger and you get it signed right there. So you ask them on the phone and you say, listen, how soon would you like to sell?

And they go, oh, yeah. I'm as soon as possible. We can sell. That means they've been through the process. Bam.

They're gonna pull the trigger and sell.

Steve: Right.

Sean: So what happens to all those leads that come in and the seller says they want retail? So initially, they make defer. They have the idea. They look on Zillow, their price. They look on Redfin.

They talk to a realtor, and realtor says you can get $3.50. But your offer is $1.75. Right? And they're right. And they're and what happens is now you meet with them, and they they want $3.50.

Right? Because the realtor friend in Zillow says they should get $3.50. And you can't pay $3.50 for the process, and then you just forget them. 99% of everybody is gonna forget them. Mhmm.

So what happens is what we do is we create basically this another omnichannel where we're in front of the seller knowing they call. Now here here's funny. I've been in a room of five or 600 people, and I asked the question. I said, how many people in this room you got a postcard or you got a text from someone saying they wanna buy your house. How many people actually answered that or maybe got a, you know, a postcard or something else for other service and answered it?

And there's maybe one or two out of five or 600 people in the room. Right? So it's very few and far between. So someone actually picks up the phone and they call you is a rarity.

Steve: Yeah.

Sean: Right? So it was rare. They're gonna want they wanna sell. So now because they said no or they said they wanted retail, and now there is no follow-up sequence behind that, which a follow-up sequence entails all the above, ringless voice it becomes that omnichannel. You send them postcards.

You send them, you know, ringless voice mail. Now you don't harass them like you do on the distress, and you can send them maybe once or twice a month. But you're gonna wanna be in front of those people because now you're building a relationship with them. Now you're turning around. You're gonna be in front of them because they will make a decision.

We've had sellers. We have sellers that are committed and stuck on this number. And then over the seller decision line timeline over three weeks, four weeks, two months, three months, now guess what? They come down a reasonable number. And because we've kept in contact with them the entire time with multichannel, omnichannel marketing, well, guess what?

Now we're gonna go out and get that deal, and no one else has talked to them and no one else can compete.

Steve: Right.

Sean: Right? Because no one because now we've built a relationship with them. We've been in front of them. We've asked them how they doing. We checked on them.

I there's this one house in Arcadia. Ridiculous deal. Right? I went. Place was trashed.

Talked to this lady. Same type of thing. I literally text her. And and every single Friday, I was just on my list. I would text, how's it going?

What are you up to? She would send me her horses, and she would send me this, and we'd go back and forth. I send a picture of my kids, and we do this. I built a relationship with her. Right?

Now she was getting inundated by you and everybody else in the marketplace. Right? And, but guess what? I built a relationship with her over time. She turned around, and I I got that house, and that was that was a huge smoking deal.

House needed a ton of work, but we turned around, flipped it, made a huge profit on it. And there's no way I woulda got that deal if I woulda met her the first time. She said she wanted close to retail. There's no way we're gonna do it. And because I if I woulda never followed up, we'd never got that deal.

So we embed that into our sales guys, guys, the process of, yes, you're gonna get new leads, but also you have to really work those leads in a way to, get them to convert. Absolutely.

Steve: So there was a question for Charlie Harrison. If you had to start over today as a brand new wholesaler, what would you do?

Sean: Brand new wholesaler? Well, first off, I would get get yourself obsessed. Obsessed. Right? Obsessed.

Right? So how do you get obsessed? Right? For I mean, you you when when you when you're in an obsessed state, then nothing else then you're 1,000. Now I'm not saying you have to disregard and be whatever.

I'm saying when you're when you when you commit to a certain time, you're obsessed to make it happen. So how I get how I get obsessed about being in it to win it, especially for fifteen years, right, of being creating that consistency, is being absolute 1000% crystal clear on exactly what you want. Write it down. Right? And then read it every morning.

Read it every single night. And then I calendar. When I calendar, I calendar I have my my priorities with God, my family, and my business. Right? So, God goes in my calendar first, then my family goes in my calendar, and then business goes all around it.

And and I literally, from 05:30 in the morning to 06:00 at night, my calendar is scheduled every fifteen minutes on the fifteen minutes all day. Right? So I have zero idle time through the entire day, and I'm just going all day. Right? Now you're you get obsessed because you want something so bad, and you can see it, and you can feel it, and you can visualize it, and you're brand new.

Right? And what would you I I didn't have that when I got started. I was scattered. I was all over the place trying to do 10 different things. I would get hyper focused.

And if you're brand new, you haven't got a check yet, that's your first goal. If you've already got your first check, you wanna make it consistent, you wanna do at least three to five deals a month. Once you get three to five deals a month, then you wanna start hiring a team of people, and then you wanna blow it up. Right? Reinvesting 25% back in the business.

So now you get massively obsessed. Then once you get massively assessed, you write everything down, you get hyper focused. And then once you get hyper focused, then you create those daily actions and you commit to doing it every single day. So those daily actions that we talked about, which most people get comfortable, they get some big checks. I'm gonna go to Vegas.

I'm gonna have a blast. I'm gonna do this. I'm gonna go hang out. I'm gonna take it easy. I'm gonna whatever.

They take their foot off the pedal and then what happens is their income goes back down. They go in panic mode. They go back at it again. So if you can if you can look in your business every single week and report, how many leads did you get for the week? How many appointments did you make?

How many offers did you make? And how many contracts did you get? And that number continues to expand each week or continues to grow and you get better at the conversion So everything becomes, how can I get a lower cost per lead? How can I get more appointments? How can I convert those leads into contracts?

And you get better at that. Then you can't help but grow. And now you have a trackable, consistent model, and then you have your team. They are all tracking on that certain model, then you blow up.

Steve: Absolutely. You know? I think obsess obsession is is key. There is, Think and Grow Rich. Right?

Yeah. Napoleon Hill says that if you are obsessed with your business as you are with getting laid Yeah. How successful would your business be?

Sean: Yeah. Exactly. Exactly. And it's, that's a 100% true.

Steve: So, you mentioned earlier, down, down payment arbitrage. So Eric Martinez wants to know, how are you determining price when doing down payment arbitrage?

Sean: How do you determine price? Mhmm. Okay. Well, it's it's the, it's exact same thing in a wholesale deal. But what what happens with down payment arbitrage is you, the the the key component is having a distressed seller.

Right? Mhmm. Whether they whether they have a, I'll give you an example. We had a we we recently did a deal where the house, was worth about $3.30. And it was listed on the market.

It couldn't sell. So now it's just sitting there. Seller wanted to sell, but they're stuck. Right? If they sold it they tried to sell it at $3.30.

They couldn't do it. And and if they did sell it at $3.30 both commissions, closing cost, and fees, and if they got a little bit lower offer, they're gonna have to come out of pocket, which they didn't wanna do. So there is underlying motivation there. The house is a great house. I think it was in Ahwatukee.

Right? Beautiful house. Or in Gilbert, actually. And, and then what happened, they had a 307,000 loan, but there's motivation. Right?

So we gave them $500. We knew the property is was, you know, $3.30 because it was listed for that, and Zillow said it was $3.30. Redfin said it was $3.30. REI Automator said it was $3.30. It was all we knew it was $3.30.

That was the value of the property. But that's a little bit more not as relevant as the structure. So people ask me all the time. They go, okay. Listen.

I got a property, but it doesn't sell. Right? I can't sell. It either doesn't sell because of price or it doesn't sell because of terms. But if you could take a property sellable property.

Mhmm. We've had properties that literally no one would touch or buy and modified the terms on it. Now the property flies off the shelf. So this particular property, if we put it out to the market, we got it locked up for, say, $3.00 7, theoretically, and we're gonna turn around and sell for $3.17 when it's worth $3.30, our phone would not ring off the hook.

Steve: You sound like a new wholesaler. Right.

Sean: We're like, oh, I got this smoking deal. We got 10,000 of equity. Oh, my gosh. Let's buy. You know?

And you're sitting there waiting in crickets. Right?

Steve: Right.

Sean: But now we're gonna modify the terms. Price is still there. Right? So now we got $3.00 7. Give the seller we give the seller $500 cash.

Mhmm. Bought the house for $500, left the $3.00 7 in place, I think we left in place for four years. And, and now we have a sellable deal, $500, so in the 307. So now we're in it for 307,000. And then we turned around and we put it out to market for $29,500 down or $29,000 down.

And we made $28,500 on a deal. $500 went to the seller. Right? And that was a $28,000 deal on a deal that was retail. No one would touch.

And we do a ton of deals like that. Mhmm. And there's so many different ways to structure it with sellers. They the seller was ecstatic. They loved it.

A guy came in, and he was, I don't know if he he lived there or he was just, you know, gonna use it as Airbnb or whatever he was. It's a nice house. And he was able to, you know and everybody won in the situation. We put it out to the market on a deal that was literally sold at retail.

Steve: Mhmm.

Sean: Right? Retail. Above retail. And that our phone melted off the hook with that property, right, on a recent deal we just closed.

Steve: So that was do you have a specific buyers list for those? Nope. Or how are you finding those?

Sean: Well, members sends to everybody. Yeah. There there's three buyers. Right? There's three buyers that all of us wholesalers have.

We have fix and flip, we get buy and hold, and we get retail buyers. Now, if you get a property that's distressed, like, we do we're closing on a property today. Right? And it's, like, trashed South Phoenix, a mess. I've got one buyer.

Buy and hold buyer's not gonna touch it. Retail buyer's not gonna I got one buyer. I got I got a fix and flip buyer. So I have to have a fix and flip buyer. Their their their biggest motivation is is equity.

The more equity they have, the more they're gonna jump on the deal. So this deal has a lot of equity in it, so they're gonna jump on it. Right? So a buy and hold investor, they're gonna do buy and hold. They wanna have a nicer, cleaner property.

They're gonna wanna have some equity in the property. But, now they're gonna have to get financing. They're gonna have to refinance and do all that type of buy with hard money, do that. And then the third buyer is a retail buyer. What's great about down payment arbitrage is it literally can hit all three.

It hits all three. Now the fix and flip buyer is buying this property because the account his accountant over here is going, listen. You got ordinary income, dude. You gotta turn around. You need to offset your income by buying real estate so you can have depreciation so you can offset that ordinary income.

So your your fix and flip buyer is a potential buyer. We get a lot of fix and flip buyers that easily they go, listen. I'll put 29,000. I would turn it on. I'll have the, you know, I'll have the 20,000, whatever.

I'll put this property into it and I'll get the deal. And they'll hang on to it and it'll be fine. And they're gonna use it strictly for if they're gonna rent it out and get buyer loves it, right, because they don't have to go get a loan. Right. And then you got the, the the retail buyer that will come in and they wanna buy it retail.

Right? And they're gonna potentially live there in the property. So you hit all three buyers. So, essentially, if you have your buyers list and I've taught for years, Jalen White. You know Jalen White.

Right? Yeah. Great guy. Awesome guy. He came into my office the, the first time when he, 18 year old kid.

He used this one little thing he he he that we taught out at our VIP at our Extreme Freedom event. Mhmm. This one little thing, and we talked about how to buy the realtor list and slowly import it into that. That one thing changed his entire business. Right?

He went out and made $250 his first year, just by that one thing. So on that realtor list that we taught how to buy, you can turn around. You got retail buyers on the list. You have real you're on the list. Realtors are on the list.

Right? So realtors have buyers. Realtors have retail buyers. So that is the easiest property to sell because you encompass all three buyers, and your phone literally melts even if the thing's retail.

Steve: So I'm just gonna do a quick, change topic. How was that transition going from belly to belly in Phoenix only Mhmm. To go into other markets? What were the biggest challenges in expanding for you?

Sean: First off, getting our team that is down this path to go down this path, right, and, and do and it's it's not a it's a quasi model. Meaning, everything local, we'll talk to a seller, and we'll get them to a certain point of where they are for motivation, trying to find out their lowest of the low, offer price they're gonna have. We don't really we don't do soft pass. But if we believe that our max allowable offer and their lowest cash offer, if it's close within 20 or 30,000, we know we can negotiate that down to a certain price. Mhmm.

And we're gonna set the appointment, and our closing ratio on those appointments are about 50 to 60%. So it's a quasi model of of talking to the sellers locally on the phone, getting them to a certain point, determining where they're at, and having that them tell us the lowest of the low number after we build rapport, after we find out about repairs, after we find about the big why, and trying to solve that problem. Now a lot of people in what we have found as a negotiating a lot of people, like, I don't know if they do or not, but I know we do. We use the post possession a lot in our negotiation. Right?

Mhmm. And typically, in normal the real estate world, brokers hate post possessions. They wanna close and they wanna be done. Oh, yeah. Am I right?

Uh-huh. So what happens to post possession, if a seller wants to needs time to move out and they say they need cash, but they need time to move out, then we're able to give them that time to close. Now what it does for us in the business and, and there's this whole thing of the time value of money, right, and and a whole thing of the velocity of money that that formula. We wanna close as fast as humanly possible, but the seller, you know, needs two weeks to move out. So what we'll do is initiate a post possession.

We'll disclose that to the buyer coming in. We'll close immediately. We'll get paid. We'll hold money back in escrow and then give that seller post possession. Everybody's happy, in the situation.

We do a lot of those. So we solve that problem, with those sellers. So, part of that is getting, though, getting talking to these sellers over the phone and figuring out what their big problem is, solving that problem. And if we're able to solve that problem, then we'll set the appointment on a local basis. On a, in other markets, then we'll turn around and we'll just DocuSign and get over the phone.

Gotcha.

Steve: So man Manuel Cajegas, I'm probably butchering his name, wants to know, are you doing any kind of training on down payment arbitrage deals?

Sean: Yes. I have an entire course, down payment arbitrage, and I essentially go like, when a seller wants retail, what do you do? Right? Well, I can do a deal if seller wants retail. You know, it's funny because it's it's interesting.

So I had, you know sales guys, what do they always complain about? The leads. The leads. Right? So I hear that all the time.

Oh, the leads. Blah blah blah blah blah blah. And I was like, I want these leads. Don't come to me with leads. Right?

I'm that last guy you wanna talk to about the leads. So I said, fine. Leads suck. I said, you guys get nothing. Right?

You guys generate your own leads. I'm gonna get the next 10 leads. Mhmm. I'm gonna get them. Just just ran I'm gonna get the next 10 ones, and I'm gonna get the next 10 appointments.

So I got 10 appointments. I booked 10 appointments. I went on 10 appointments, and I got eight contracts. Wow. And I I came back with eight contracts and I laid them all out on the table.

I'm like, the leads suck or do you suck? Right? So it's interesting that that happens that way. Right? And it's because a lot of down payment arbitrage.

So if someone says they want retail and they want retail and they're they want you know, we can I can make that happen with down payment arbitrage? I love the ones where it's pre foreclosure. Right? The house is worth 200, and they owe $1.20. And I can give them $3,000.

They move out. I can reinstate the loan that they have, and I can still sell it for retail. And not only will I keep the existing loan in place, I'll create a secondary note on the property Mhmm. And then turn around and sell at retail. Now I have all these notes laying out there that I get calls and saying, hey.

You know, we got this note on here, you know, and I'll put a deferred interest rate on it of, like, say, 8% on it, deferred interest. And I'll get a I'll get a call and say, say, hey. Listen. We you know, you know, we gotta pay off for this thing. I said, what the heck is this?

Okay. I'll note note I did two two

Steve: years ago.

Sean: Yeah. Call it out. $80,000 low. Okay. But okay.

Boom. Bam. Mhmm. And, and next thing you know, we get a, you know, $80,000 wire from a note that I created on a deal that we sold retail. And we sold retail, and we got a down payment, and we got the whole and it it's it's amazing.

Steve: That's incredible. Alright. So I'm gonna wind it down here. So you've got an event coming up?

Sean: Yes. It's well, Extreme Freedom, this is our seventh, I think, almost seventh or eighth time doing it. Yeah. It's literally the premier wholesaling event, in my opinion, except yours. Right?

It's premier. I've been doing it for years. But what it does, it's, we got some incredible speakers coming. But what it does, it's it's the methodology or the business model of something that's starting out brand new. Right?

And we take them through the four phases of freedom, and then we'll turn around and show them how to, build it from getting your first check to getting one year's worth of income, quitting your job, going full time, and then scaling it to a multimillion dollar business. Well, each phase, there's different things that you do and things that you can focus on that can scale you up to where you wanna be. So, when someone comes there for the first time, if they don't know anything about it, what will happen is they'll learn these four phases, and then they can leave and understand the entire business model. It's a way to take, literally all the training I've done between converting deals and down payment arbitrage and compress everything into a weekend where you can leave and go, holy cow. You know, you're brand new or wherever you are in the middle, and you might be doing two or three deals a month and you wanna get to 10 to 15 deals a month.

There is we'll show you that methodology and what to build from the organizational chart to the meetings, to the team, to to to the scaling, to reinvesting back in a large multifamily doing syndications. And then also too, there's the other side of the coin. Right? There's technical of the of the how to do, and then there's the other side of the coin, which I call the triangle effect. And the triangle effect is you've got two people in the same market.

Right? There's a lot of people here in Phoenix. Right? Oh, yeah. And you got two people in the same market.

They're sending the same postcards to the same list, and one person gets all the deals, and the other person gets none. And the other person's complaining going, well, I'm trying to do it. I'm I'm I'm sending the postcards. I'm spending the money.

Steve: That sounds like how they would sound.

Sean: Yeah. So I'm trying to I I just don't understand. I don't know what's going on. And you look at it, and they're they are sending the postcards. And the calls are coming in, and they are but they're not getting the deals.

Right. There is something else. That triangle effect is the something else. Mhmm. Right?

It's the something else. It's because now it's you as a person on what you attract, what you put out there. And I've seen two people, same market, same thing. One guy's crushing it. One guy's not getting the deals because this person is repelling business, right, by their own thoughts and what they think think about and the and and the and the rituals that they do in their life.

And the other person is on point in their inflow, and they attract a ton of business. So it's amazing where when you're in flow, amazing things happen. And we can be in the same market together. Mhmm. And guess what?

We've never crossed a deal together. Right? Most of the people that I've ever you know, you know, Carlos and Sal and, you know, and Rafael and Brandon and all the we never crossed paths.

Steve: Right.

Sean: Right? We never we've never have we ever run into a deal together?

Steve: Not that I'm

Sean: aware. But you're doing a ton. We're doing a ton, but we never run into deals. And we're we've we're getting we continue getting deal after deal after deal that comes in. And it's crazy.

And, I believe that if you're a person right now that you've been doing this and you've been putting forth the energy, you've been putting forth the effort, and you're still going, what am I missing? Right? I'm doing everything right. What am I missing? It's a triangle effect.

And we're gonna talk about what that is, how that really that affects your business. In my opinion, that is the most important thing in your business because anybody can do the technical. Mhmm. Right? But it's what who you bring as a person to that technical in that market talking to the seller.

And, but just like for the thing is, if you walk into an appointment with a seller, just like a dog can smell fear, right, that a dog can smell fear inside somebody, A smell a seller can smell neediness. Mhmm. A seller can smell that fear.

Steve: Desperation is strong.

Sean: Desperation, it comes in. It comes in of how how you are. And if you come from that scarcity, desperate mentality, and that's permeating through you, right, of fear of coming out, that penetrates through in the marketplace, and it's gonna affect your results.

Steve: Yeah.

Sean: So you wanna go out and you wanna come and do this and you wanna blow up. Guess what? We're gonna show you how to eliminate that putrid smell of despair and turn around and learn how you can, put that attraction model where people are attracted to you you, your energy, what you put out there, how you talk. And, they're gonna wanna do business with you and only you.

Steve: That's awesome. So, I'm gonna let you that was a really powerful message. Yep. But I'm gonna put on the onus. We need to come up with one more last thought.

Last thought. Well, so before we get there, a few quick announcements. Guys, next week is our workshop. It's on the twentieth and twenty first. If you guys are still interested, we're only selecting a a handful of people.

To see if you qualify, go to disruptors.com. And I will be speaking in, Houston, October for wholesale, Wholesaling Live. Go to wholesalinglive.com and put in r e d for 25% off. I'll be in Biloxi, Mississippi with, Adam and Brent for, real estate run up live. If you wanna go to that, it's, bitly, bit.ly/rerlive.

And then I'll be finishing the year in New Orleans with Chris Rood, December '8. If you guys guys wanna check that out, go to bitly, bit.ly/2019skill, two zero one nine skill. And next week, we've got Charles Nguyen coming in from Houston, Texas to talk about his system. So

Sean: Cool. Cool. Alright. So thoughts. So, so if you wanna if you wanna check out Extreme Freedom, it's extreme freedom live, extremefreedomlive.com.

You can check out this event schedule. It's in the Renaissance here, right by the, Super Bowl where Super Bowl was played there. Also, we did a coupon code. It's TRANG30. TRANG30.

You can get 30% off on, tickets if you are interested in going. It's gonna be an awesome event. If you're in Phoenix, it's a must go. You gotta go. I've been there.

Steve: It's amazing.

Sean: Yeah. It's, great for networking. Yeah. It's great. I mean, you'll you'll meet a ton of people.

I mean, Max Maxwell's gonna Carlos is gonna be there. Max Maxwell's gonna be there. Scott Utes is gonna be there. You'll probably be there. I know Brandon Rafael is gonna be there.

So we've got some a lot of great Dean Graziosi is gonna be there. He's speaking. So there's a lot of great people who's gonna be there. It's awesome. Awesome.

Last thoughts. Last thoughts. Last thoughts. If I go back and I always think every every time I go live on Instagram, I always I always go back. Is the the biggest thing I can tell you is if you're going back and you're in a position right now where you might be struggling or trying to get your first deal or trying to figure it out, because we have Instagram and Facebook in so many different areas, when you learn something, share it.

Learn it. You know? Share it with somebody else because there's power in giving. Right? There's absolutely power in giving.

You know, and you've experienced now, haven't you? A

Steve: 100%.

Sean: Doing this podcast, what has come to you? Your brokerage has doubled. Your full set businesses went through the roof. Right? Yep.

So there is a power in giving. And what happens is most people focus on themselves, and they go, listen. I'm trying to solve this financial problem, this problem, whatever it is. And and if you wanna get that out of the way, don't stop focusing on yourself and start focusing on how you can help somebody else. Because once you help someone solve their problem, your problem will be solved.

But the problem is they can't get themselves out of the way. They're very focused on themselves and what they can do for me, and how can I do this, and what what is what's happening for me? So, if you try to be absolutely selfless and you focus 1000% on giving, giving information, giving content, giving your best stuff, putting it out on Instagram, putting it out on Facebook, telling people, sharing it in meetup groups and stuff like that in your go givers meetings that you guys do with, you know, with brand and stuff. So in your giving of yourself 100%, you'll never have to worry about yourself. You'll never have to worry about your fine you'll never have to worry about any of that.

So, so divert the focus on helping other people and giving to them and pouring into other people, and you'll never have so I've never really ever had to worry about as soon as I started understanding that concept back in 2010 and, it's not all been just, you know, whatever. But the bottom line is it's that it's once I started doing that, whatever. But the bottom line is it's that it's once I started doing that, literally, you know, the pressure on myself is just exponentially have has has grown. Yeah. You know?

And crazy opportunities and crazy things come up that are completely unexplainable, by focusing on giving to other people. And it's, it's amazing thing. And you don't have to wait till you're 40. You don't have to wait till you're, already completely successful. You could be just trying to get your first deal, and you can document and tell what you've learned in the process.

And that sharing of that and that, is gonna inspire and motivate someone else that they wanna get started, and you'll make an impact. It'll change your life.

Steve: That's powerful. And I can tell you. I mean, I can attest to it. Like, you know, starting the podcast last year, life's never been better than it is today.

Sean: Yeah. Is is it incredible just by giving? And look what you're doing. You're you're bringing people in. You're asking incredible questions.

You're building a community, and it's, and it's impacted you know, you're you're impacting a community with incredible content, but but but it's making a direct impact on you Right. In your life, in your fulfillment, in what you've done. It's amazing, Yeah. In just twelve months.

Steve: Just twelve months. Alright. Well, thank you. Thank you guys for watching. Boom.

Gotta crush it.

Sean: Rock the house. Go out there. Do some deals. Don't be afraid. Rock the house and tune in next week.

Next week. Boom.

Steve: Awesome. Thank you.

Sean: Thank you, man. Appreciate it.