Hey Everyone out their in YouTube land listen this and Facebook and Facebook how you guys doing today um
my name is Randy steadwell if you haven't been with us before uh we have a
gentleman named Johnny Stewart III he is a gentleman that we have uh
that I've connected with through networking and somebody else put us together and he is a wholesaler in the
Nashville Tennessee Market uh sorry about my distraction here I'm getting uh
the Facebook group pulled up on my phone and let's see and it's not coming
up all right so uh there we
go all right anyways that will come up anyways uh so with that being said he is
actually a guy that went from uh being a college student an athlete and instead
of trying to get a nine to5 he went straight into wholesaling and he is remarkable we're
going to tell his story here um so without further Ado also put your
questions in the comments so we can answer them live all right without further Ado Johnny how you doing today
I'm doing good I'm doing good I'm excited to be on really excited thank you for this opportunity I really really
appreciate it yeah no problem at all so I'm we're very happy to have you um so
tell me a little bit about um how you got started like where did even the
words or wholesaling come from from you how did you know about it what did you
do uh tell me everything that you know yeah yeah so as kind of a crazy story
how I got into real estate I actually got my finance degree and I had was
expected to take over a wealth management firm that was kind of my out the out the gate that's what I wanted to
do work under one guy and just take over his business when he retired I had a
massive injury that kind of shifted everything and I got to the point where I was like you know I I really don't
want to work for somebody else so in that year long of just recovering uh I watched a whole lot of YouTube and I
didn't know which area I wanted to go in I didn't even know if real estate was something that I wanted to do I just
watched a whole lot of YouTube like hey how how do you make money right and wholesaling presented itself over the
the thousands of options and I was like you know I love helping people I love talking to people and I always told
myself I wanted to get in real estate one day so I just watched about a week of of YouTube videos wholesaling and
then I just started picking up the phone and calling people got it okay so with that like you
said you watched a lot of YouTube videos is that right yeah yeah okay so how did
how did that come about as far as did did you say oh I need I want to make
$10,000 did you think that this was gonna be full-time like a lot of people's like oh
I'm gonna make $10,000 in in in in in like two days or
one day or whatever like all the clickbait says oh you make $10,000 real
quick right and that's what drew me in so I started looking at it and did I know I was going to be full-time as a
wholesaler absolutely not but I knew that I wanted to make money and I wanted to create a name for myself and a
business for myself and I knew that this would probably be the way that you can get into real estate with no money down
so I got into it thinking oh it probably just take me a month to get a deal and that would be it and it took a you know
multiple months to get a deal and to actually learn so you know that whole that whole thing of oh you get $10,000
in 30 days make two phone calls you got somebody that's just not the case and I
learned that very quickly that that wasn't wasn't the plan so I kind of you know understood real estate and
understood the long game so I was like this is what I want to do this is the best thing that I can do to help me learn so I definitely took some time for
real how long did it take you to get your first deal so I like to break it up right I technically it took me about
seven months and I started my LLC in June of 2022 and I was still in college
until that December so that that Gap right there I was I was you know part
time I made maybe two or three phone calls a day but really didn't take it seriously as soon as I graduated I was
like you know I'm hitting the ground running and this is what I want to do so it took me until early February late
January early febu February for my first deal to actually close and I get a check so uh I it really like seven eight
months but I like to say oh the two months I took it seriously I finally hammered in something okay all right so
um what what is your what was your strategy in the beginning was it all cold calling did you okay what list were
you going after different on when I first started
I was trying everything under the sun and I think that was my biggest problem when I first started I was calling
absentees for a day then switching over to vacant and then tax leans and then I
would dabling foreclosure sometimes I was just all over the map and I was just doing cold calling I just started didn't
have any marketing budget and I was literally punching in the numbers on my cell phone and giving them a call so
that was my whole strategy when I first started and I've since switched to kind
of hone what I like and what I'm good at down and that's how I was able to get my first
deal and so what is that that you're that you honed in four closures foure
closures I got to the point I used to watch a lot of pace morby I'm sure you've heard his name before I watched a
lot of him and the thing was if you want your first deal go after pre forclosures so I just started going after them it's
funny I typed into Google I'm like foreclosures in Tennessee and I sifted through like 50 Google pages so I
finally found a site that is updated daily that has all the notices for the
state of Tennessee so I started just hand making the list every morning hand making a list Hand making a list skip
tracing them by hand using the the fast people search for free building a list so it take hours to build that list but
it turned out to be actually pretty good good list because that's how I've gotten one deal two deals three Deals that's
how I got a lot of my beginning deals okay now you're not still doing it that way are
you I am um but see I'm I'm smart now so I've put some of my friends some of my
friends are doing it that way and they're building the list for me and I'm just making the calls so at first it was
me but I've put I've put my friends in place to to be able to do it now are you are you paying your friends to do it
yeah I'm giving them a hundred bucks for every 300 so I'm not paying them a lot
but um they're they're getting something in there involved too so it it's a winwin for
both all right so I need to talk to you about hiring a VA to do that that type
of work because absolutely that that right there will save you a lot of time you hire somebody from overseas you pay
them five bucks an hour yeah you show them what you're doing what to do and
they'll create that for you you so especially if you're if you don't care about whether
they're talking to people or not and it's just mundane busy stuff it'll definitely help you so absolutely
absolutely we'll definitely talk about that and that's that's something that I wanted to do and just haven't got around
to it honestly okay awesome so with that with that being said it's uh what do you
contribute your first uh your first deal too was it the
pre-foreclosures or was it something else yeah pre-foreclosures that was that's every deal that I've gotten under
contract myself has been a pre forclosure I've JV other ones but
everything that I've done myself have all been pre-foreclosures and all have come from that that public notice list
that I was talking about awesome so what do you you JV as
well yes I do yeah okay so you know tell
me how it works when when you JV with somebody do you go out looking for somebody to JV with so actually I don't
I've built um enough following and enough people I've networked with a lot of people that when they get a deal they
just bring it to me like hey do you mind if we if we just move this and I know a lot of buyers in the state of Tennessee
so I just send it over to them and we can typically get get get that assigned I've done five of those where it's just
like hey here's you know here's my deal here I got it under contract and I just bring it buyer to the table I I really
like JB because it's just a very very simple process so far so far yeah I do a
lot of Jing myself because of um we have the Facebook group and I do have quite a
bit uh of a buyers list for our area so um now Johnny Stewart has a question
what's the best approach to speaking with potential clients now Johnny let me know if you're talking about potential
buyers or potential sellers if you can leave a comment that'd be great but either way what do you what's your take
on that I think the best way is to just get out there and do it there's no one way
one like one shoe fits all type of approach you just have to be yourself so
just get out there have the conversation with that person and just be genuine being genuine and having that
conversation and allow it to flow naturally is the best advice that I could give anybody first starting out
just pick up that phone and have a conversation it's a person just like you are just how you would talk to anybody
any other day that's you have another person on the phone just have that conversation there's no one rule that
fits everybody awesome yeah he he he replied back with saying sellers so um I
completely agree with you in my opinion you got to be yourself because if you're not yourself and being authentic then
they're gonna it's GNA show 100% yeah so it the biggest thing is is
find out the information talk to them like another person hey would you be interested in selling if yes okay great
if no okay that's perfectly fine too tell them what you do and move on you
knowly um I always tell I always say this in my videos uh that we are not
here to convince anybody to sell their house we are here to offer them options
abely absolutely we we're not convincers we're not so I heard uh Brent Daniels
say we're not deal creators we're deal finders so we're not taking somebody's
situation and trying to create a deal out of it we're just picking up the phone seeing if you want a solution and
we can be that solution for you yeah I was actually just watching them just before here before we join I was just
watching on uh wholesale hotline so that was
so but uh yeah 100% I I 100% agree with
that um you know he so Tammy Miss Tammy
B says what is the best what is that one thing not to say to a buyer when you are
looking to build a buyer list T that's a good question that's a
good question um you can kind of go at it a couple different ways I've heard a lot of people say don't mention that
you're a wholesaler but I think mentioning that you're a wholesaler is to your advantage let that buyer know
like hey I'm actively looking for properties so tell me what you're looking for and and if I find something
I want to bring it to you um the one thing that you probably shouldn't say is
you don't want to you don't want to come off as cocky as if you you know what you're doing because these buyers they
like having their ego strug a little bit right right so you want to come to them hey I want to help you so this is what
I'm doing and I want to bring value to you so it's not what you shouldn't say but just always bring value to them
because they they like to be in a position of power kind of and they want you to be able to help them out if that
makes sense 100% and actually I want to add to that is I would actually say
there's not one thing not to say it's there's you have you say everything to
them but you you have to add this to them you you let every buyer know that
that hey if I send you a deal and it does not work for you okay please don't
feel offended I want your feedback okay you might not get the deal
okay but uh the thing is is that you want all that feedback because that
tells you um if enough buyers are telling you the exact same thing that
tells you where the market's at that's how you get your idea and on what's the market and say say you're at
$100,000 on a property we're just using round numbers for example and they're like listen I I'm only gonna be able to
be at 80 because of XYZ you know things like that well
listen you can't sell it to anybody else nothing's happening you go back to the seller and say hey because of XYZ we
need to get a price reduction you know um I I can probably get this down uh if
we can meet at 70 or 75 if you just want to be able to make five quick five grand
whatever whatever your profit is then we can close within two weeks now you go back to that buyer that gave you that
option that that price and say if we close this right here
at at that 80 how about it right now week closing great and I've had that
happen to me so um I always want feedback yeah just to bounce off that
feedback from your buyers is so important because they're the eyes they're the one it's it's their money
right they're they're the one with the money you're just negotiating the deal so what they say is vitally important
and also one might give you feedback and say hey this doesn't work for me I'm looking for this but another person say
oh that's perfect so now you know okay if I get a deal like this I need to bring it to him if I get a deal that
fits him his idea his or her idea I need to take it to him or her you know so
it's one of those things where the feedback is so important no 100% I I I agree and I
think that's what made that is what made that has is what has made me successful
in our Detroit Market is telling all my buyers because they're used to and this
is the worst thing a wholesaler can do is when they get low balled they just
scuff and okay on to the next person yeah and I've seen so many other
wholesalers do that they scuff oh no I can't do that and on to the next well
what you need to be doing is asking them why they they are that low what's going
on now if they're sitting here telling me what do you have on your contract for
what do you want you know what's your fee what's this you don't need to know my fee I want to know what it works for
you okay you'll know it at closing I don't really care about that but what
price does it make it work for you then I'll try to figure it out if I
can get a price reduction I will but if I can't great now I know where you're at
on the next on the next property and then the next one you know so I've had
that before where a buyer just will try to would just ghost me and I hey what
about that Farmington Hills property you know and well we're going to be really
low you know so you know we're GNA pass okay what is really low give me all the
feedback you know I mean they were 35 Grand under what was asking great I
appreciate it thank you exactly now I know where you're at for the next one you know that Fe that feedback is
mightily mightily important mightily 100% so um what difficult situations
have were that you came up with uh in
your time as being a wholesaler that you learned from because obviously we don't learn from just all the wins we learn
from those losses we learn from those difficult times we learned from all the
you know the close calls things like that so what is a a um say a hard deal
or or something that you learned a lot from so I I've had three separate
occasions where it's been like wow Welcome to the Real Estate game the
first one was I was still looking for my first deal I finally got it it was funny
so two weeks prior I called this lady and she's like yeah I'm never selling my house get off the phone bye so I just
ched her up like okay I don't want really want to talk to her anymore she called me six days before the auction on
a Thursday and was like hey is there a way that you can save my house now I was brand new so I'm like yeah I can't make
any promises but I'll try my best so I had and this was on Thursday so I spent
that Friday trying to find a buyer and which which I did that Saturday Sunday
you can't do anything with foreclosures so I had to wait till that Monday I meet two buyers at the property and they're
like bidding back and forth in my face now I'm brand new so I have no idea how this Situation's gonna go or anything
you're right right and one of them's like look I'll give you $20,000 right now if I can get this property now being
a brand new wholesaler at $20,000 I was like wow like where do I sign let's sign right now right and the other lady was
like we can match that and potentially give you more we just have to get in and look at it and again I was brand new I
was like look I have to go with him who's ready to sign right now because the auction's coming up and he's a sure
thing and I don't know about you so I went with him but I of course I didn't have my contract like he was ready to
sign but I didn't have it printed out I only had on docy sign I bring my computer my computer's dead completely
un unprofessional my first my first so he took me over to a title company had
him sign everything and he was like Hey the auctions on Tuesday I mean on
Wednesday I just need this lady to sign a quick claim deed over to me and then
I'll reinstate the loan so it doesn't foreclose so I'm like okay cool I can make that happen well I was like I lived
two hours away from that property so I drove back home and I was like I'll just hire a mobile notary to go out there now
this fast forward they had no mobile notaries so I was like you know let me just drive down there but then he T the
buyer was like H don't worry about it we'll we'll get it handled so I'm like okay so now this is the day of the
auction and we still don't have a quick claim beats on right so I send the mobile notary out there and the mobile
notary gets in a car accident on the way there so quick claim never gets signed
the property for closes on the doorhouse steps and I don't get $20,000 and fortunately this lady trust
me to keep her house and it ended up foreclosing anyways uh I felt terrible
for you know basically trying my best but I couldn't make it happen and then also that was my first deal that was a
good sum of money and that just kind of poof so that was my first big big learning experience and I and I've had
some like from there as well so here's the here's the kicker is did you learn
what you could have done differently in order to I mean um besides the quit
claim deed because in my opinion Quick Claim Deed that that's the wrong way to go really you um yeah so um because yeah
I was I'd love to hear your thoughts on that because when you asked you know what's what did you learn quick claim deeds the foreclosures
that I've done since Quick Claim Deed has always been the way that I've gone about it and it's always worked so what
is your opinion on that so I don't know state of Tennessee very well so I don't
I can't go by that I only go by what Michigan says um a lot of times you can
go to the bank uh and what happens is is you say
hey I have a purchase and sale agreement they'll hold the
Foreclosure they'll stop the foreclosure for say 30 days yeah okay now if you've
done that multiple times then they're like no okay a sec option is you can
have the um you can have the home the
homeowner can go and file for bankruptcy yeah yeah they have 30 days to um take
it back and and not follow go through Y and but that stops the Foreclosure right
there okay at least pauses it absolutely absolutely okay until you can close on
the property see this then now is Tennessee a title state or attorney
State title State okay so it's same thing as Michigan Michigan's a title State yeah so a lot of these things your
your title company should know about as well so because they're dealing with a lot of that absolutely so the uh so back
to what you said I was on the phone with their mortgage company trying my hardest to get it postponed yeah but since it
was so close to the date they were like yeah we can't do anything about it I think if I had more experience and I
knew the right things to say and the right buttons to press I think I could have got it postponed but I was brand
new and I didn't now bankruptcy I didn't even know about that when I was doing this deal now right now I would
absolutely would have had her do that but I just again I was brand new didn't
didn't really know anything so that was a situation that that got by me so
that's the thing is is another thing is when you deal with a bank that's so
close you're actually you don't want to talk to the bank you want to talk to
there's an attorney that takes care of everything yeah the trustee a
trustee the bank doesn't give a they'll like we'll take it to um you
know it's whatever the trustee says so the trustee gets paid it is so it's so
funny that you say that because uh in my experience my experience has always been a little bit different right
uh one thing that I say because I've I've postponed three auctions so far and okay something that I always tell people
is like the trustee is working for that mortgage company so it's just like if I
was working for you I'm gonna do whatever you say so in my experience that trustee is just doing whatever that
mortgage company says so if that mortgage company is like yeah no we don't want to work with you then the truste is like there's nothing we can do
so yeah I don't again we're in two different markets so it could be different but the three that I've dealt with the trustees are like we we'll send
you the reinstatement in the payoff but other than that we can't we can't do anything it's always been the mortgage
company got it yeah sometimes what they'll do is is the trustee will a lot
of times the mortgage companies there's just they have so many yeah um on on their bank they don't really want to
talk about it so they just like whatever the trustee says so um they'll always go
by usually what the trustee recommends okay you know so it's always a good
thing to have a good relationship with those trusties absolutely absolutely have you ever um thought have you ever
requested a Spock like a special point of contact through a mortgage company I have not no so every time
every time I call I immediately first call ask for the special point of contact and that's the one person who
you can talk to they'll give you their direct line that's the one person you can talk to throughout the whole entire
foreclosure which when I first started I was talking to a billion different
people having to re explain myself every time but once I found out oh you know let's ask for a Spock a special point of
contact I'm gonna go through them every time so it's helped out the process completely that's awesome yeah so um now
do some of these go for have you gotten have you gone to the auctions themselves
like how does Tennessee work as far as auctions go um with uh foreclosures or
or even tax auctions like that I haven't been to the auction myself in the state
of Tennessee they have to publish a auction in the newspaper three times
before it can actually be auctioned off so okay on this Tennessee public notice
website that I was telling you about that notice goes out to the homeowner but it also gets uploaded to this website so it has the address of the
home it has the auction date everything so I just pull that pull that address
from that and then call the owner directly and try to buy the home before it gets auctioned off so that's my whole
process I don't go to the auctions I try to get the home before it gets auction off so yeah that's really cool now we
also have tax auctions here I know you had tax auctions there as well in a tax
auction you had now this is not for foreclosures is just for tax auctions but in tax auctions here uh the seller
or the the homeowner actually has six months to redeem the property yeah okay so they
now whatever the purchase the person purchased it um with they'll still have
to pay uh that amount plus interest in order to purchase back but the problem
is is that you never know whether you're going to get get the house you got to wait six months that money's tied up and
it's just you don't know what the condition of the property is going to be really you can't see before the tax
auctions no no you may even be able to drive drive by it but who's to say after
the six months it's still G to be like that exactly you know exactly um because
the thing is now there are ways where you can if they've abandoned the property you can get that sped up okay
but it's it's very hard to do all that so um people have to know exactly what they're
doing and and so a lot of people go around and and do exactly what you're doing and get um you know get them
before they go to auction so yeah M Miss Tammy B says note to self
don't do tax auctions now now I will say they are great tax auctions are great to
find leads and purchase them before they go to auction yeah so that that's a great thing to to
actually go after it's a great list to go after um but yeah it's it's crazy now the the
CEO um said wow that's a crappy situation on the mobile notary uh I'm about he's about to become a not mobile
notary uh if I could sign for myself that would be nice but I'm sure it's not
allowed yeah I I know it's not allowed um he also adds in that he'll be the S the
witness and the notary all in one that Al your egos unfortunately that doesn't
work you know that' be nice though it would be nice though I'd be a mobile notary too just to make sure I can sign
all my all my stuff yeah yeah it's uh unfortunately it's unethical I've
actually had um a property here in the Detroit area where because there was
there was like four or five quick claim deeds they actually had to go back and and
verify each signature on there and make sure it took like six months to get
clear title because of that so um and we end up losing the buyer we end up going
out and what actually ended up happening with that one was the seller was getting calls from other wholesalers saying that
they'll give them more and it never it didn't happen
so like he backed out at the last minute we finally got clear a title the seller
backed out and I he went with the higher offer and six months later I still see
it on the market wow and other wholesalers are having it and I went
back to him I'm like he asked me to hey can you can you do this again and I'm like markets has changed ever since the
last time we were with you like I so I I told him I was like I'm going to have to I think we were at um 20 grand we we had
it sold for 28 I told him I was like I'm gonna be at to 10 yeah you know yeah so
because it needed a full rehab the only good thing it had going for it was it's a it was a multi-unit and it was a
brick okay so I had some good bones but it needed be touched a little bit oh it needed to be gutted down to the studs so
it it was crazy but um yeah I
mean uh Timothy says seven months to get your first deal how is your deal flow
now I average one deal a month uh last month was real slow it's been my first month that I didn't have a deal but I
have about a deal a month now okay and how is so with that being said how
what's your average wholesale fee around $115,000 my biggest was 30,000 and then
on the ninth in a couple days I'm getting a $1,000 hoso fee so I've been all over the map but I average about
$15,000 I try to sh for 20 and then go go below that if if need
be yeah so that that's good I mean what is the price point of houses in your
area I mean how like are they high are they low like what's the medium so the
so the good thing about me is I do it completely virtual so I'm over the state of Tennessee I've only done one in the
city that I live in and that arv was like 450 Grand because it was right next to the college but I've done some that
are 450 I've done some in Knoxville they're around 300,000 I've done some in
Memphis and they're around 100 150,000 so I'm really all over the map with it
okay so go ahead I was about to say my biggest deal that arv was like 415 so
okay it was a subject to deal and and it just made a lot of sense for the buyer so I was able to get a much higher
wholesale fee yeah so here in Detroit area if you go into Detroit proper I
mean you're probably the average wholesale fee is around five to 10 grand
really um yeah because your the price point of houses are anywhere as between
20 and 40 Grand yeah you know sometimes sometimes 80 to 100 but you know it's
kind of all over the map depending on where you're at then you go into the suburbs and you got higher a little bit
higher end you know goes from about 90 to about 200 to
250 okay, a little bit a little bit f a little bit some nicer areas you got some
higher arvs then you got some other areas where there's some million dooll houses you know wow so it it really is
subject you know to different areas so um the fact that you you know you
actually mentioned that you did some creative financing it brings into um
this next question is is thoughts on novs and creative financing ever dabbled
in it so I'm assuming yes most of my deals have been subject to I love love
sub two because it solves problems and the buyers who want sub two are endless
everybody wants a good sub two deal so dis Bon sub to is very very easy novs I
haven't done one personally but I know novs I actually tried to pitch a Novation to one guy who lives down the
street from me he's in the middle of a rehab and I just wanted to come in finish the rehab for him and then list
it on the market and then do that but I haven't I haven't done it myself but as far as creative Finance subject to I
love them I have not I've pitched seller finance on a few big multifamilies to
help out a friend but I haven't done it myself sub to is is kind of my wheelhouse and doing foreclosure sub two
makes a lot of sense for a lot of those properties so that brings to this other
question is what is subject two that's that's a great question ever asked that
that's a great question subject two is very simply taking over somebody's mortgage right so I'm gonna I'm gonna
explain it by using example so if my friend Jimmy has a house that he bought a year ago and Jimmy wants to move
across the this this the country to LA and he's in the military so he's not
really worried about his debt to income or anything I'll be like hey Jimmy I'll give you $5,000 that property will be deed over
to me and that mortgage will stay in place in Jimmy's name and I will just be responsible for making a payment towards
Jimmy's mortgage each month so that mortgage stays in place the deed changes hands into me and I just start making
payments Jimmy gets his $5,000 moves away and never thinks about the property again that's awesome that that is the
best best way the key thing is when talking with a seller though you have to let them know that it's going to stay in
their name absolutely now do you ever have and connect up a a serer to service
that loan um how do you how do you sell that so I've only had it one time where
we actually got a serer in in place only once most of the time these people are in foreclosure and don't even want to
deal with it and most of the time they're not just super wealthy want to go buy another property they'll just go
rent so I sell it in a way with these people like hey you leave that Mortgage
in place I'm going to make payments to it now in two or three years when you want to go buy another house when you're
ready you'll have a performing mortgage on your credit so your credit score will Skyrocket so I pitch it from that angle
where I'm like that that whole credit and leaving it in place is actually gonna help you in the long run now say
in two years this this lady wants to buy a new house well we have it shown for
two years that we're making payments on it so we're all good now say now this is
another thing I recently learned say it's a well-off person and they want to go buy a new house right then and there
we'll actually just buy their house on a lease option show that they're leasing that property so it'll automatically
come off their debt to income ratio for their new lender okay awesome hey
there's different ways there different tools to do different things absolutely different ways to do the same thing so I
just got a few questions in here that I I want to go through um so the first one
is I you know Miss Tammy B says uh thank you Tammy B You by for all the questions
by the way uh can you explain the pro the process of JV if you're a wholesaler
so I have my process but I'd like to hear yours yeah so my process is very
simple if somebody comes to me and it's like hey uh you know let's do a JV on this we can do it one of two ways we can
do it we can just sign a JV option agreement which basically says hey I get to Market this for 10 days and if I
can't it just goes back to you um or we can just sign a regular JV agreement so
for the last JV I did it was somebody who said hey you you have a buyer for this I'm like I know the perfect person
for that and they came right in so I just like disbot it to them like any other deal and me and that wholesaler
just signed a JB contract where we split the wholesale fee 50/50 and then we sent
that contract with the purchase and sale agreement with the assignment all to the title company and they handled that so
one JV contract with both signatures just outlining how that assignment fee is broken down that that's really all
you need yeah and that's kind of how I do things as well um the difference is
is I don't have so I know I should have them sign something first uh before I
start marketing it but I usually go by word word of mouth uh and say hey if and because the reason
why is is I say it's only if I bring you the buyer okay if one of your buyers
comes through and you want to go with them you don't have to do anything with me yeah you know so it's literally all
on me to say hey I have this buyer but rest assured I'm going to get that JV
agreement signed before my buyer signs any assignment at all so
um but yeah so it's usually and the biggest thing is is that we get a lot of wholesalers that say hey go ahead and
add your fee on top and now I tell other people to do
that and that's perfectly fine but this is how I've been working before and because I've been burned where my buyer
would be like well you're selling it for 40 but I just saw it adverti for 30 yeah
why don't I just go to them yeah and it makes me look bad it also ruins my
credibility with them and they don't want to buy from me anymore so I would
rather not JV with anybody than do that so what I tell people is okay we both
need to advertise it at the same price if you're going to advertise it Abol if you've already advertised it I can put
it out there but I have to be at the same price as you are and we'll 5050 split whatever
the assignment fee is AB if the assignment fee is two grand guess what I'm only getting a grand you know so
that's just how it is uh with that being you know yeah go ahead do you think
that's the best way 5050 split because for me I always like if somebody brings
a buyer you get 50% of the deal because it's it's dispo and it's Acquisitions so
I did Acquisitions you're diso or I'm diso you did Acquisitions 5050 i' always done that but I've seen some people are
like hey I'll give you 20% if you bring a buyer or like you said add your fee on top I I'm I was always under the
impression or that's the way I like just 5050 down the middle so it's always
negotiable okay and I tell people I am a little negotiable because I do understand if you have a partner okay so
if say you come to me and you already have a partner okay and you're like
listen we can't I already I'm splitting what ever I get you're going to be getting way more than I am yeah if we do
5050 so like so they come to me like hey is there a way you can do
6040 you know and as long as the math adds up and it's worth my time I'll say
sure why not you know but my my go-to is
5050 and then you know go from there I tell people like I'm willing to work
with people because I want you to come to me multiple times exactly yeah
you know so um Johnny Stewart says what
is the most challenging what is the most challenging when dealing with potential clients
sellers uh do you find do you find it hard because you never claim to be a
realtor and that's what most people know that's a great question the fact
that I don't disclose I'm a realtor or sound like a realtor actually works in my advantage
because these people want to talk to somebody who they feel is on their same level right so I attack it as hey I'm
just like you I I just want to buy the house I'm not trying to come with with a power and be like hey I'm a realtor I'm
trying to list your house so I think it's actually easier without disclosing that I'm a realtor or you know hey let
me buy your house or or list your house rather y um as far as the the most
challenging with sellers I would say that once you get so we're in the
business it's a numbers game right we're trying to find motivation so I think once you find somebody who's motivated I
don't think getting them to sell is hard uh the hard part is sitting there and hearing all those nose nose nose and you
know a bunch of cuss wordss but once you get somebody who actually wants to sell and actually wants to talk to you the
conversation's rather easy and they don't really put up too much of a fight if that makes sense most definitely that
actually goes into this next question question by Dorian Dorian open doors opens doors love the name Dorian by the
way so that's awesome I so it said he says what do you consider a motivated
lead that's a great great question um and I feel like there's a lot of
different answers to that judging by who you ask and and you know the kind of questions you ask when you're on the
phone to me a motivated person is somebody who's ready to move move now and wants an offer now right you get a
lot of people who are on the phone who are just like yeah just shoot me an offer I don't think those people are motivated I judge Motivation by what's
going on in your life and why do you need to sell what's the reason for selling do you want to sell right now I
think those are the the motivation questions and that's how you can tell if a lead is truly truly motivated by if
they actually want to stay in that house or if they just want a number that that is above Market that take so they can
move one 100% so this is Mike steadwell my brother actually he says shoot me an
Offa and you get those all the time and you know how I how I respond to
those is well I need to get more information and they keep pushing they keep pushing I will
literally lowball the crap out of them and see what they say and I and I tell
them I say listen I gotta assume the worst I gotta assume I gotta take this down to the bones yeah and I gotta
assume you're lying to me that's a good way the way that I
attack it I just say well how much do you want they're like well shoot me an offer well how how much do you want I
don't want to just throw a number at the wall and you know sit sit here on a guessing game tell me what you want now
usually when you ask tell me what you want they'll say shoot me an offer or they'll say an astronomical price that
you know won't work so those phone calls are typically very quick yeah
so you know Tammy B says I think it's important to connect with the sellers to understand their situation and that is
where Rapport comes in 100% so building Rapport is most important and I think
that's where people they just want to go straight into the offer yeah and be like
hey let me you know you said your interest in selling why do you want to sell what's the
reason oh for the right price then you know I literally will probably tell them
hey I'm probably not your person I'm an investor sorry yeah um you know I can
connect you with a realtor maybe you can get that on the market don't know um you
know but if you want I can have somebody give you a call that I that I know and trust yeah would you like that say oh no
no no it was just if it's the right price you know okay great have a great day exactly exactly and back to back to
the report thing that that you were talking about uh you can build rapport in one or two ways and I like both ways
like asking the questions diving into her life building Rapport that way by you know having a conversation about
things you like or I like building Rapport by showing that person what I can do for them right putting myself in
in a position of trust with that person by this is what I can do for you and
this is how I want to help you that's how I love building Rapport most definitely so I because the
thing is is like like I said before and like you said actually earlier we are
deal finders not deal creators yeah okay
so it is very hard to tell people and I
actually find it very like when I talk to a realtor it's very hard because they
think their house is up here and a you know if I put it on the MLS I'm gonna
get this and I go probably not compared to what I'm looking at you I go you know
and I may strike the ego a little bit stroke the ego I go you know what maybe you will I don't know but as an investor
I gotta be able to make money yeah and you know I say after I fix it up and
sell it I gotta pay commissions closing costs all of that stuff you know I go on
average it takes about it's about 10 to 11% uh to sell a house after the fact
once I flip it so now I gotta subtract that and I gota and I had one guy say
well I'm not gonna have you make $100,000 off of me I go where did you get
$100,000 yeah and I run down the math I go okay but then I still got to pay
and I I I I let let him know that I'm like 11% okay you take that away I'm probably
I'll be lucky to make 50 and that's because I'm I'm and I'm spending six months to do the work
exactly you know so it's uh you got sometimes you got to run the numbers
sometimes they're too emotional yeah you know yeah don't even don't even get me started on agents I I have a LoveHate
relationship with agents so so um yeah so I gota you know what parts of T
you said you do all over Tennessee Okay y now are you more in the rural areas or
are you more in the city I'm more in the city I don't like to touch the rural areas too much or if there's a big city
I like to go to the cities around it like 40 minutes around but I I like to stay in the city I'm not really in the
rural areas at all got it so and yeah
most definitely like that is because it's harder to comp in rural areas
that's what I'm saying yeah yeah you know um you know being land it's harder
to find buyers for rural areas as well yeah abely um unless you're unless
you're selling to a retail buyer that's really the only time so uh
Johnny Stewart says is there ever a time to play hard ball with a seller like
reality is a tough pillow to swallow for some people that's another another great
question I think there is a time and that time comes after you've already built that trust with the with the
person so I know many times the third fourth or fifth phone call with a person
we're on we have a great relationship and I just tell them Hey listen do you mind if I tell you something and do you
promise not to hate me that's how I like to enter it they're like yes I I promise and I just hit them straight with the
facts this is this is what we're thinking so that automatically puts their guard down because I got their permission to say something that might
tip them off a little bit right okay so that's how I attack those kind of hard
questions hard comments that I have to make is just by telling hey look do you
mind if I tell you something and do you promise not to hate me that I kind of I like to be the nice guy in in those
conversations so I I've pulled that line out many times and it's always worked um but there there is a time where you kind
of have to get you know hard B with these people it's not one of those things where you're doing it on the
first call because you don't have that Rapport bit with them yet that's something that happens later on when you
have to really get really get down and dirty with them and let them know exactly what's going on and the key
thing is is that once you find out why they're selling and the reason
when you do have to play the hard ball you have to tell them hey you you really
want this to happen um you need to move out of state you know by XYZ time you
know really this is the only way you're GNA be able to do that you know these are your options for to meet your
timeline yeah you know um now you know unfortunately I won't be your buyer
outside of that you know I'd love to work with you and and I and i' let people know hey hey I'll give you as
much advice as you want and I but I'll always be straight up with you exactly
exactly kind of using their their own wishes and wants to get them to a place
where they're okay you're right let me move forward now right exactly so uh
Tammy is saying I think it's hard being a new being being new because I I don't
know what I can do besides finding a buyer
Tammy Tammy thank you so much for your activity Tammy you have you kind of made
this with all your questions so thank you so much Tammy I'm gonna be real Frank with you okay pick up that phone
and call somebody even if you're just calling agents in your Market just get on the phone and talk to somebody now
that whole thing of oh should I find a buyer first should I find a seller first everybody has their own opinion on that
and and we're all different but one thing I do know is that the only way to get a deal is to pick up
the phone or to be around people who are doing deals so I challenge you I challenge you to pick up that phone and
call somebody even if you call the nicest house on the MLS just the fact that you talk to an agent and that
that's what you need to get started y don't don't get caught in that analysis paralysis right now you're watching that
watching you know us talk which is great but that's not you're you're not on the phone you're learning but you're not on
the phone so don't get caught in learning learning Lear learning where you you get stuck to not do anything you
you have enough knowledge I can tell you have enough knowledge yeah just go do it just go do it and you got it just go do
it yeah she says H gosh I feel a certain kind of way now I have to do more
research to help to help people Tammy I'm telling you this is what you do I'm
gonna tell you this right now exactly what Johnny just told you you go do it once you have questions don't try to
your way through okay what you do is hey I just need to bring in my
partner see if see if we can help you out a little bit more and then you bring in either another wholesaler that's been
more experienced and they can help you walk you through some things okay that's
it okay you can come to me you can come to Johnny you can come to whoever whoever's in your Market that is a
bigger wholesaler that is willing to work with you okay I jvd my first three
Deals okay my first deal was
$1,333 it was the best $1,333 that I ever made you know how
much the we sold the house for okay was eight grand and I still
made $1,300 we it was split three ways not the $1,300 $1,300 was my portion but
the the whole assignment fee was split three ways I had a partner and then I brought in another wholesaler
so there's a lot of different things that you can do but you have to speak with as many people as you can and you
learn from every new person absolutely ab and just to piggy back off of what he
was saying there there's wholesalers in there people out there there are so many
Facebook groups one Facebook group that I love is the creative Finance with Pace morby I know he has a Facebook group as
well if you just put in there hey I have a seller who's asking me you know some questions that don't know does somebody
want to jump on the phone with me people are going to be clamoring at that because they want to help you out they
want to see you get your first deal so there's so many this the thing that I love about this whole real estate
Community is there's people who are out there to help right and you're gonna have my phone number at the end of this
call me anytime you're like hey Johnny I I need I need help with this I have a seller who's ready to go do you mind
threeway with us and I say absolutely now don't call me until that seller is ready to jump on a three-way CU I want
you to do the work up up until that point but if if it starts getting touchy there's people out there who will help
but you just have to put yourself out there and talk to people man 100% And
you know the CEO says how was Johnny reaching out during his first seven
months text blasting Direct Mail cold calling and how many hours per week was
he put in putting in on an average until he got his first deal before we go to
that just real quick Tammy she said she has my information by all means reach out to me anytime with any deal I'm
happy to look at it uh from from pretty much anywhere so I don't know what Market you're in I'm assuming you're in
the Detroit Market because you're seeing my information but please do reach out now we'll go back to the CEO's question
about you know what kind of things were you doing yeah um during that sevenths
during the seven months it was all code calling and then I would call twice if I don't answer I would send cend thema
text like Johnny question mark and we would go from there so all code calling
all hand hand dialing is what I did uh the the seven months kind of encompasses everything but the time where I was in
school I was probably putting in 10 hours a week not a lot just kind of fre
time like hey let me just call this on Market property or call this one list that I have um but then after that I was
putting in probably 8 to 10 hours a day so 70h hour
weeks just to be just to be good because I was calling on Saturdays and Sundays I was calling every day for that month and
a half when I got out of school until I finally got something on a contract so okay you know you know not a lot in
those first couple months because I was in school but once I hammered it home probably like 70 hours a week for sure
so Timothy asked Cole calling from a dialer and actually he said no he was hand dialing is that right yeah when I
first started I was hand dialing I have a dialer now I had a dialer in the past and then got away from it because it was
just a lot with the foreclosures but I have a dialer now and a dialer is by far the best thing in the world hand dialing
is cool to you know get your first deal but as soon as you have some as soon as you close that first deal dump all that
money back into your operations and get a dialer you you need a dial 100%
so uh Johnny Stewart asks uh how do you deal with real estate agents who don't
understand wholesalers and tries to interfere with your business this is a great question I want to hear what you
said that's kind of anybody else who has any questions that if you're watching
the replay please leave a comment we'll try to get to them also if you want Johnny to come back on here leave a
comment and let let us know we'll have Johnny back on here we'll dipe we'll dive deeper into everything but I'd love
to hear what you have to say because maybe maybe next time what we'll do is instead of doing this I'll make a trip
down to Tennessee yeah we'll do it we'll do it live yeah yeah
so right yeah most definitely all right so we'll go back to
the question I'll read it again is about real estate agents and wholesalers uh them not understanding
and tries to interfere with your business so this is a phenomenal question like I said earlier I'm not too
fond of Agents uh so what I do is I don't call properties that would be good
for cash on Market I kind of got away from that I call subject to properties
properties that'll be real good sub to Opportunities and the way I find that is
I put it in prop stream I I just filter it down to on market and they have less
than 20% Equity so I give them um so p ping sub two to agents is something that
can get my blood boiling a little too much you have you have agents who are
completely open to it and like yeah I'll run it by them and then you have agents who are immediately oh my seller would
never do that um I haven't found an effective way to get them on my team to
pitch my offer to them what I started doing lately is I'm sending them an offer sheet that requires the initial of
the seller because an agent's fiduciary D duty is to pitch
every offer that comes through now that as you know that's not the case at all
especially with subject two because these agents aren't really well versed in it so they don't want to pitch
something that they don't know um the my best phone call that I've had with an
agent is we actually got on FaceTime and she took notes about everything that I was saying and I told her hey I would
love to get on a zoom call with you and your seller so that I can answer all your guys questions at once that's how I
always try to attack it but agents aren't really open to that so uh Johnny
that's a great question I I don't have just a concrete answer I don't have the
best way to go about it um I think it's one of those things where they're either open to it or they're not you know and I
don't I don't know how to you said we we don't convince I don't know how to convince an agent that selling sub two
is the way to go and how it'll help a lot of their sellers for example I have one property in Clarksville Tennessee
and it's vacant now he he's a a soldier he's a overseas and he'll be overseas
for the next 10 years and has a house in Clarksville that he bought six months ago that he cannot sell and if he sells
it he'd have to cut a check so I told him like Hey I told the agent I'm like I will pay your commissions I would give
your seller $55,000 to take that home over subj to now sounds like a pretty
good offer that agent has completely ghosted me so it's one of those things you don't
you don't really know they're either for it and they'll listen or they're not and I haven't been able to convert that
person who's not yet most definitely and that's the biggest thing is is that you
need to figure out what works it is a k Johnny Stewart says it is a case by case
and that's 100% true so Case by case basis and I will take that is you have
to learn how to read people and understand when you're explaining something to them that they're just in
one year and out the other and uh so I I come back to them and and will be like
okay you've had this listing for how many time how many days and you've had no offers right okay and this is
assuming it's been on the market for say six months or or or almost six months and they're about to lose the listing
yeah okay so then you come back to them and be like hey you know I my offer is
still valid I you know we're open to it uh if you're if we can get on a call
with the seller to explain everything and you know you will still
get paid because that's all the biggest thing is is that a lot of them all they
care about is getting paid think what you're saying is like a scam
to get further down the road and it's like no I want to get you paid I I even tell them initially in my
pitch like the first thing I say is heyy if I can pay your commission in full so that's the first thing that comes out of
my mouth I want to pay your commission in for I don't want you to take a lower amount I want to pay you for your
listing and and that's always how I how I go after that that's the first thing I
say so you said you do everything virtual okay uh so have you considered
going into different markets besides Tennessee I've dabbled in Georgia because I have a good partner in Georgia
I've dabbled in Georgia in the Atlanta Market but Tennessee and the Georgia Market are kind of where I'm at right
now I've had I taught one of my closest friends who's about to move to North Carolina how to pull the foreclosures in
North Carolina and I'm just kind of his Safety Net in in that in that market but
Tennessee and a little bit of Georgia is is all I'm touching right now okay awesome that kind of answers Miss Tammy
B's question do you do any of you buy out of state or consider it so um you
know that's that's another thing is we I don't buy right now because I'm a wholesaler I will eventually buy so but
we'll see what happens with that so just kind of just to bounce off of that um
buying out of state I will buy out of state but I'll buy out of state in markets that I feel comfortable with and
markets that I would want to visit um I won't just be buying anything just in
random places it would have to make sense for me and my goals moving forward but buying out of state and buying
outside of my wheel house is definitely to come most definitely oh she says she
she's near Raleigh I actually used to live in near Raleigh I used to live in Harbor Springs North Carolina so you
know awesome uh um so yeah you can do this and then the de like the difficult
part is for virtual wholesalers here in the Detroit area it's very hard to comp
inside Detroit it's block by block neighborhood by neighborhood okay yeah
and they a lot of people don't know so they they usually lock them up way overpriced and then so that's what nine
out of the 10 deals that I look at from other JV deals are not deals at all
really so yeah wow so you know with that um yeah so it's just that's just
unfortunately that's how it is so I have to look at that yeah um yeah you know uh
the CEO says let's talk about finding buyers are you on Facebook Marketplace Craigslist guy uh is it always 10 days
you have it under contract or can you go 30 days great great great question
uh I'll go from the back to forth you can do it as long as you want as long as you and the seller agree you can have
the inspection as long as you want I'm a typically a 10day guy I've done one 20
days because they wanted the closing to be far out so I was like well if you want that far out then can we get an
inspection you know 20 days but I'm a 10day guy everybody gets 10 days because
if you can't disbo a deal in about five days you probably don't have a deal
right so I'm I'm 10 days and that's it uh as far as Facebook I I've never done
Craigslist Facebook is my my jam I found every single last one of my buyers on
Facebook I found my first buyer on Facebook and I'll probably find my last buyer on
Facebook it's it's one of those things I've also gotten gotten you know duped on Facebook as well so you got to be
careful um and do a lot of vetting do a lot of vetting know who you're working
with just so your deal doesn't get Daisy chained around but but know who you're talking to do a lot of betting but
that's how I found all of my buyers Facebook I'm in countless amounts of Facebook groups and when I have
something in a certain market I'll join the Facebook groups in that market and I'll just go through the comments and
see who's see who's doing deal see who's buying I'll see somebody post their deal I'm like hey did you did did this one
close who bought it so that's how I kind of go about the vetting process but Facebook Facebook Facebook is where I
found all my buyers and know of course word of mouth and going through a couple meetups but Facebook is how I found my
first one and it's probably how I found my last one yeah I go to a lot of local
meetups in the area and that's how I I started meeting a lot of my buyers um and then when I started the
Facebook group that we're live to right now I I started getting a lot of buyers that way as well so but I'm always in
the comments I'm adding adding value adding value wherever you can the biggest thing on Facebook is
don't try to bring people down because people see that exactly okay if don't
bring negative comments oh that's never gonna sell that people will see that
just just leave it alone okay just just leave it be now when you see people
saying oh I'm interested in a property that's near yours message them and hey I got one
right down the street from there uh you know would you be interested in you know so
um now Tammy brings up a another thing is is do you pay for home
inspection I do not the buyer pays for that and I at where I'm at now most of
my buyers are pretty seasoned so they don't even pay for a home inspection um
I think if if you were selling to a retail buyer maybe a home inspection is needed but a lot of these investors
they're not they're not running home inspections no they're just having contractors run through them you know um
but the biggest thing is is that you know we're you know we don't get your
traditional home inspection like a on the MLS we say okay it's gonna need this
it's gonna need that you know uh we walk through it and go from there so um now
with that being said do you walk through the you said you do this virtually so do you walk through any of the properties
like how do you get photos how do you do your marketing good you know like how how is all that yeah so my first deal
and actually the deal that I'm doing right now I have a great relationship with the buyer so my first deal I got in
Memphis Tennessee it was three hours away from me and I just put it on Facebook Marketplace I had no pictures
nothing I had the street view of Google and the guy was like Hey I want to go check it out and I just sent him
directly to the property the owner lived in Texas so I knew the owner and that buyer wouldn't talk so I just kind of
trusted him and said hey here you go and he went out to the property he liked it and he bought it and this one now uh
actually before I even got under contract I let him know I'm like hey you know I can get this under contract at this amount um he's like hey can you get
me in there I'd love to buy it just get me in there so before a contract even got signed with the seller I had him
walk it and that's that's how I got it um I've hired some boo on the grounds I
got in Facebook saw somebody in that market I was like hey I'll send you $100 if you can get in there and take some pictures for me and they've done that so
I've come up with some creative ways to to do it but most of the time a lot of these buyers they want to get in and
look at it so your pictures are cool but they want to get in and look at it anyway so I just tell them like hey
let's sign this contract at this amount and I got a couple people who are gonna come look at it and it's it's always
worked out for me that way 100% so the the thing is is I've done that a few times where I've talked with buyers and
like hey you can come look at it you know like basically we both walk through it at the same
time we walk outside the house he tells me his price now I go negotiate
it you know and those are the trusted buyers that you work with yeah you know
um so not every buyer is going to be like that so you still have to be very very cautious absolutely okay um but
with you know the thing is is that how I've worked is if if the price is going to be
like borderline what it needs to be I actually need to go through there and you know I take
photos like I'm walking through the property but then after I take the photos I I after quite a little while of
of learning this I actually also do a video and I walk through I do a video on
my phone I walk through with some commentary that way what I can do is I
do inside and outside for video video as well as pictures and now the
buyer basically I I let them know hey I want this just to be a formala for you
to walk through it let me know what you need based off the photos based off the pictures based off the video that should
give you plenty enough to go by you know so and I I've had people
give me offers sight on scene because of that you know absolutely absolutely so
the the deal that I did in my hometown um the buyers actually live 30 40
minutes away but they were like I want a house in that area I don't even have to look at it I'll buy it so that's how
that's how that one went down so they didn't take a look at it um I sent a few pictures of the area and they were like
yeah I'll take it and and that was that that's awesome so I definitely want to
hear more uh about the Tennessee Market what's good areas what's good thing you
know um places to go so I definitely want to hear more so I do want to have
you back or you know we'll do a maybe an inperson something like that um so tell
me uh just real quick what are you doing in the future and what can anybody here
listening whether they're listening live or listening on the replay can help you out with and how can we they get in
contact with you yeah so so wide scope what I want to do is I want to build a wholesale business that operates without
me so at some point in the next three or four years I want to completely remove myself have an engine rolling in deals
coming in to where I can start picking which deals I want to keep from my portfolio which ones I want to fix and
flip and go from there so that's big picture that's my goal that's where I want to get to um guys I Got YouTube
follow my YouTube channel Johnny Stewart III it's Three L's I think J Johnny
Stewart Three L's so sub on there comment on my videos
um I have my link tree in the bio uh it has my phone number my email every way
that you can contact me I'm on Instagram j. Stewart 23 um just just get at me my
phone number is very very easy to find it's on all my platforms and give me a
call give me a call anytime I have my phone right next to me and I love helping people so at any point in time
if you have any question if you need anything please give me a call I'll do my best to give you the right answers or
help you find the find the right answer if I don't have it so contact me and and let's do some work together send me all
your deals send me send me everything you got I'd love love love to take a look at it awesome yeah and again his
link tree is in the bio it's one link and you can see all his social media his
platforms everything is contact info so go ahead and click that on the link um
you know if for some reason it's not or you're having trouble make a comment I'll I'll send it
right over so no problem all right um so
with that being said we are coming to the end of the podcast I really appreciate all the comments all the
interact this has been a very very interactive episode and because of that we have gone over time on time uh
usually this is only about an hour long but it's been a little bit more than that
so yeah so um the Johnny Stewart in if
you go to the description uh there is the link for his contract for his link
tree in the description my information in the description but also my phone
number is right here you can always contact me you can email me as well all
my information is in the description please go ahead and look in there happy to help anybody who wants to who who
needs help uh that's what I'm here for uh and go from there so uh with that
being said we are going to end the episode Johnny just go ahead and stay down when I bring you down just go ahead
and stay down and then uh stay here for a minute we'll talk after I just want to say thank you so so so much for this
opportunity thank you for having this wonderful podcast and and bringing value
thank you to everybody who submitted questions asked questions and was and were engaged I really really appreciate
it and hopefully we're all working together and doing something soon so thank you guys most definitely and
here's a phrase I always like to do let's all do deals together thank you
everyone have a great