Latest / Results Driven / Episode 140: They Were Drowning in Rehab Debt...Then One Small Pivot Changed Everything

Transcript

Episode 140: They Were Drowning in Rehab Debt...Then One Small Pivot Changed Everything · Results Driven

0:00
SPEAKER_03: The bridges had been burned.
0:01
SPEAKER_03: Yeah, I had been doing real estate full time for two years.
0:03
SPEAKER_03: And on the back end of that lawsuit, essentially we got we were able to cut loose all the properties and net at the end of the day.
0:10
SPEAKER_03: We're like, okay, cool.
0:12
SPEAKER_03: We made it out alive.
0:13
SPEAKER_03: Kind of.
0:14
SPEAKER_03: We had close to$300,000 in debt at the end of that.
0:17
SPEAKER_03: That was basically personal debt of like business credit cards and private lenders that we still had to pay back.
0:23
SPEAKER_03: And this was right before I came out to the two-day.
0:25
SPEAKER_03: All of that had just happened.
0:27
SPEAKER_03: My wife comes home.
0:28
SPEAKER_03: She says, I'm pregnant.
0:29
SPEAKER_02: Oh my goodness.
0:35
SPEAKER_04: Are you a driven real estate investor tired of inconsistent deal flow and ready to scale your business?
0:41
SPEAKER_04: I'm Tiffany High and I'm Josh Hyde.
0:44
SPEAKER_04: And this is the results-driven podcast, where we share proven strategies to build systems, master sales, grow your team, and create a self-sustaining business of predictable income.
0:55
SPEAKER_04: Whether you're a one-person operation or building a team, our business will give you the tools, support a mindset that's unique to succeed.
1:04
SPEAKER_04: Let's dive out.
1:08
SPEAKER_00: Welcome to another episode of the Results Driven Podcast.
1:12
SPEAKER_00: And today's episode is going to be a little bit different.
1:15
SPEAKER_00: What you're about to hear is a live conversation that Josh and Tiffany had on stage at one of their recent events with Jordan and Cole.
1:24
SPEAKER_00: Two real estate investors who honestly were going through hell not that long ago.
1:30
SPEAKER_00: They were dealing with contractor lawsuits, massive rehab projects gone wrong, hundreds of thousands of dollars in debt, and right in the middle of all of it, one of them found out they were having a baby.
1:42
SPEAKER_00: For most people, that is the exact moment that they quit.
1:46
SPEAKER_00: But instead of folding, they made a decision.
1:49
SPEAKER_00: No backup plan, no going backwards, only forward.
1:53
SPEAKER_00: And what makes this conversation so powerful is you're going to hear the exact shifts that helped them go from stressed-out flippers barely staying afloat to building a real wholesaling business, doing eight to twelve deals a month.
2:09
SPEAKER_00: You'll hear the mindset changes, the systems that they implemented, all the mistakes that they made, and the moment things finally started to click.
2:19
SPEAKER_00: So if you're in a hard season right now, if business feels really hard, difficult, very heavy, or if you're trying to figure out how to break through to that next level, this episode is going to hit home.
2:31
SPEAKER_00: Let's dive in.
2:32
SPEAKER_02: Let's talk through what did the business look like when you first came out?
2:36
SPEAKER_03: When we first came out, we were only flipping.
2:40
SPEAKER_03: We were only flipping full gut massive rehabs.
2:44
SPEAKER_03: And what drove us out here was, you know, we had similar to you guys, we had ran into big contractor issues, lawsuits, tons of lost money, and we essentially knew that we needed to generate cash quickly.
2:58
SPEAKER_03: Yeah.
2:58
SPEAKER_03: And so we were referred to look into you all, and we did, and then you know, that kind of drove us to come out to the two-day workshop.
3:04
SPEAKER_02: Nice.
3:04
SPEAKER_02: Okay.
3:05
SPEAKER_02: So you come out here.
3:06
SPEAKER_02: What were some of the big aha moments for you guys at that point in time?
3:09
SPEAKER_02: Well, one, what's the dynamic between the partnership?
3:11
SPEAKER_02: Like who owns what parts of the business?
3:13
SPEAKER_01: So I guess as of Monday, this week, we just hired a dispo manager.
3:17
SPEAKER_01: So I was doing dispo for nice um this past year, and then also uh managing all of our projects, our plus.
3:24
SPEAKER_02: So you were dispo and project management and you've been everything else.
3:29
SPEAKER_04: But I remember we were talking at lunch on the first two days you guys came out, and you guys were both kind of doing a little bit of everything, weren't you?
3:36
SPEAKER_03: That was actually last year.
3:38
SPEAKER_03: Yes, that was yeah, so just last year.
3:40
SPEAKER_04: Yeah.
3:41
SPEAKER_03: We were both doing a little bit of everything.
3:43
SPEAKER_03: I mean, it kind of got in our ass a little bit, and uh we split roles real quickly and uh you know went from there.
3:50
SPEAKER_04: Yeah.
3:50
SPEAKER_03: Awesome.
3:51
SPEAKER_03: Well, that is very big for anyone.
3:52
SPEAKER_04: Does anyone else relate to that?
3:53
SPEAKER_04: Has anyone got a partner or spouse where you're kind of both doing a little bit of everything?
3:56
SPEAKER_04: No, who's doing anyone else?
3:59
SPEAKER_02: Not anymore.
4:00
SPEAKER_04: Not you good.
4:01
SPEAKER_02: That was one of the biggest things for Stiff and I, and that's probably what she was sharing with you guys back then was when we clearly uh said this is what I own, this is what you own, man, we ran so much faster.
4:11
SPEAKER_02: I'm sure you guys saw a lot of that too.
4:13
SPEAKER_02: So when you were out here, even last year, like what were some of the big things you're like, okay, when we go back, we're gonna go focus on these two to three things.
4:20
SPEAKER_02: What were those?
4:21
SPEAKER_03: So before we came, we never did direct to seller.
4:24
SPEAKER_03: So we were only buying flips from other wholesalers who were on the MLS.
4:27
SPEAKER_03: Okay.
4:28
SPEAKER_03: And I wanted to learn direct to seller to get better deals.
4:31
SPEAKER_03: And I never ever really wanted a wholesale, but ultimately was like, I know this is a great way to generate cash quickly, and we need this right now.
4:38
SPEAKER_03: Yeah, um, so let's do that.
4:40
SPEAKER_03: And you know, from there we basically started doing direct to seller, and uh yeah, that was kind of the big uh my limiting belief before that was like I'm good at finding the or like evaluating the deals and we can manage the project, but you know, we don't want to talk to sellers, we don't want to do that front end stuff, and yeah, so the big limiting belief that we kind of became was we can go direct to seller and uh you know capitalize on all the jobs.
5:01
SPEAKER_02: What helped you with that though?
5:02
SPEAKER_02: Because it sounds like there was a switch of confidence where before it was like I don't really know.
5:06
SPEAKER_03: It was the how to do marketing and what do we say to them, what do we start calling to them?
5:12
SPEAKER_02: So simple as that.
5:13
SPEAKER_02: Yeah.
5:13
SPEAKER_03: So I mean, getting told exactly what to tell them, I was like, okay, cool, yeah, we can do that.
5:17
SPEAKER_03: I think we can figure that out.
5:19
SPEAKER_02: Cool, okay.
5:19
SPEAKER_02: So how to do marketing and then the sales process are really the big things you guys focused on.
5:24
SPEAKER_02: So, all right, you go back, that's the area of focus.
5:26
SPEAKER_02: What's the first marketing channel you launch?
5:29
SPEAKER_03: PPL.
5:30
SPEAKER_03: Okay.
5:30
SPEAKER_03: Uh, need to sell someone else.
5:33
SPEAKER_02: Why PPL?
5:33
SPEAKER_03: Low barrier to entry.
5:35
SPEAKER_03: We just had to pay and we get an inbound lead and they're you know a hot lead.
5:38
SPEAKER_03: I I didn't want to do cold calling.
5:40
SPEAKER_03: Yeah.
5:40
SPEAKER_03: Um, so it was a hot lead that we could talk to right away.
5:42
SPEAKER_02: Okay, and then um you launched this channel.
5:45
SPEAKER_02: What happened?
5:45
SPEAKER_02: Let's like fast forward a little bit further.
5:48
SPEAKER_02: Was it a successful channel, not successful channel?
5:50
SPEAKER_03: We have never turned it off.
5:51
SPEAKER_02: Oh, wow.
5:52
SPEAKER_02: You're so you're still running it today.
5:53
SPEAKER_02: Okay.
5:53
SPEAKER_02: That's correct.
5:54
SPEAKER_02: Do you know your metrics right now off the top of your head by chance?
5:56
SPEAKER_03: I literally just told Jordan right before I came in.
5:58
SPEAKER_03: I was like, he better not grill me on my numbers because I don't have them off the top of my head.
6:03
SPEAKER_02: Yeah, well, yeah.
6:04
SPEAKER_02: No, that's awesome.
6:05
SPEAKER_03: And so uh we we I know I know last year for PPL we were about one in 20 leads.
6:10
SPEAKER_03: Leads for contract.
6:11
SPEAKER_03: Uh leads for contract.
6:12
SPEAKER_02: Right in line, yeah, okay, cool.
6:13
SPEAKER_04: So you had just started direct to seller, right?
6:16
SPEAKER_03: Yeah, correct.
6:17
SPEAKER_04: Yeah, I just want to point that out because sometimes people like that aren't already doing direct to seller, they'll be like, well, you know, especially when they hire someone, oh, let's give them like 60 to 90 days to perform.
6:28
SPEAKER_04: Guys, a closer comes in, they get onboarded on this system for two weeks.
6:33
SPEAKER_04: They average, like you just heard Bo talk about who was it?
6:36
SPEAKER_04: You were talking about someone that just got contracts within a week.
6:38
SPEAKER_02: That just got nine within two weeks.
6:40
SPEAKER_04: Yeah, nine contracts in their first week and a half.
6:43
SPEAKER_04: Our closers get an average minimum of five to seven contracts in the first 30 days of the company.
6:49
SPEAKER_04: So when you get onboarded in this, guys, it's a week or two onboarding go.
6:54
SPEAKER_04: Okay.
6:54
SPEAKER_02: You invest into the marketing, the leads are coming in.
6:58
SPEAKER_02: Talk through how did the sales process help you and how important were the call audits?
7:04
SPEAKER_03: The I mean, the sales process gave us something to kind of rely on as a crutch.
7:08
SPEAKER_03: Yeah.
7:09
SPEAKER_03: When we were uncomfortable during the conversation and what the tools were that we needed to use.
7:12
SPEAKER_02: Was that perfect right away?
7:14
SPEAKER_03: No, no, it was it wasn't perfect for a while.
7:17
SPEAKER_02: Yeah.
7:17
SPEAKER_03: Um, how did you dial it in?
7:19
SPEAKER_03: I mean, you guys always preach one percent better, and we knew that if we got better, then like our conversions were already really good.
7:24
SPEAKER_03: And I was like, if we can do this like the right way, we'll be doing you know, damn good.
7:29
SPEAKER_03: So it was really just the drive of like wanting to get better every day.
7:32
SPEAKER_03: Yeah.
7:32
SPEAKER_03: And you know, continuing to perfect it by, you know, audit our our calls.
7:35
SPEAKER_02: Yeah, awesome.
7:36
SPEAKER_02: Okay.
7:36
SPEAKER_02: So um you get to that point, and what happened in like, well, one, you mentioned lawsuits, and I'm sure like that, you guys were severely set back from that.
7:46
SPEAKER_02: I know it severely set us back.
7:47
SPEAKER_02: Yeah, you chose, and I know we had a moment, and I don't know if you guys had a moment like this, where we had to burn the boats.
7:53
SPEAKER_02: And what I mean by that is there was no plan B.
7:56
SPEAKER_02: We had to decide that this was where we were going, or we were going a different path, and we chose this path.
8:02
SPEAKER_02: So, did you guys have like a similar moment?
8:04
SPEAKER_02: Because I mean, you guys jumped into small group while having all of those things going on.
8:09
SPEAKER_02: Did you know like your mindset there?
8:10
SPEAKER_03: Yeah, the bridges had been burned.
8:12
SPEAKER_03: Yeah, I had been doing real estate full-time for two years, and on the back end of that lawsuit, essentially we got we were able to cut loose all the properties and net at the end of the day.
8:21
SPEAKER_03: We're like, okay, cool, we made it out alive.
8:24
SPEAKER_03: Kind of.
8:25
SPEAKER_03: We had close to$300,000 in debt at the end of that.
8:28
SPEAKER_03: That was basically personal debt of like business credit cards and private lenders that we still had to pay back.
8:34
SPEAKER_03: And this was right before I came out to the two-day.
8:36
SPEAKER_03: All of that had just happened.
8:37
SPEAKER_03: My wife comes home, she says, I'm pregnant.
8:40
SPEAKER_03: Oh my goodness.
8:41
SPEAKER_03: So that was also on plan four, and all of that just kind of lit a fire under us to uh, you know, just to attack it.
8:48
SPEAKER_03: And we knew we needed a plan.
8:49
SPEAKER_03: And uh, so when we came here, we had a plan.
8:52
SPEAKER_03: We knew we could execute it, it had been proven time and time again, and uh yeah, then we went out and and did it.
8:58
SPEAKER_02: Nice, man.
8:58
SPEAKER_02: Well, uh hats off to that because let's fast forward to now.
9:02
SPEAKER_02: What's the team look like?
9:03
SPEAKER_02: That was all what two years ago when you were facing that.
9:06
SPEAKER_03: Yep.
9:07
SPEAKER_03: So that was uh the summer of 23.
9:10
SPEAKER_03: We I came here October of 23.
9:12
SPEAKER_03: Yeah, and we implemented it all right away.
9:14
SPEAKER_03: And yeah.
9:14
SPEAKER_03: What's the team look like now?
9:16
SPEAKER_03: So now now team is we have uh two acquisitions managers, a dispo manager, and then the two of us.
9:21
SPEAKER_02: Yeah, and performance has been pretty good.
9:24
SPEAKER_03: Yeah, performance has been great.
9:25
SPEAKER_03: We're you know, kind of averaging in the eight to twelve deals a month, you know, currently, and uh just looking to continue to grow.
9:31
SPEAKER_02: And is it all fix and flip, or it sounds like it might be?
9:34
SPEAKER_03: Oh no, we then transitioned, we kind of went hard the other way.
9:37
SPEAKER_03: Um, you know, got addicted to the quick cash.
9:40
SPEAKER_03: We're probably about 90% wholesale right now, but now that we have acquisitions and dispos like in their roles and whatnot, the plan is to start you know swaying it back to a more of a balance and doing more flips.
9:52
SPEAKER_02: I love it.
9:52
SPEAKER_02: So we have a new dispo specialist.
9:54
SPEAKER_02: So plug and play onboarding, how helpful has that been for you at this point with bringing in a disposition specialist?
10:00
SPEAKER_01: Well, we got very lucky.
10:01
SPEAKER_01: So he um came from another company who they were also in results rubbing.
10:07
SPEAKER_02: Oh, okay.
10:07
SPEAKER_02: There you go.
10:08
SPEAKER_01: I already went through the plug and play.
10:09
SPEAKER_01: There you go.
10:10
SPEAKER_01: Yeah, so I mean, he knew podio and all of our systems already, and it was very easy.
10:16
SPEAKER_01: Very easy transition.
10:16
SPEAKER_02: Nice, cool.
10:17
SPEAKER_02: Okay, so what are the challenges you guys are focused on right now with your coach?
10:21
SPEAKER_03: Basically, everything that Tiffany just walked through with gapology, communicating issues with you know acquisitions and expectations.
10:29
SPEAKER_03: Right now, we're just learning to become better leaders so that we can make sure, like she mentioned, like be confident in a fire, right?
10:36
SPEAKER_03: Is something that we're kind of debating right now of like, okay, are we the problem here or is he the problem here?
10:41
SPEAKER_03: And so just continuing to build ourselves as leaders right now is what we're doing.
10:45
SPEAKER_02: Yeah, man, I absolutely love that.
10:46
SPEAKER_02: And just to see the growth that you guys have had in the last year, the last two years has been phenomenal.
10:51
SPEAKER_02: So hats off to you.
10:53
SPEAKER_04: I'm just curious, you obviously were in a tough situation before.
10:56
SPEAKER_04: What inside of you made you keep going?
10:58
SPEAKER_04: Because sometimes people allow those circumstances to stop them from becoming who they're supposed to be.
11:05
SPEAKER_03: You know, when I worked at a corporate engineering job, and when I quit that, I just knew that like I was going to make it at the other end.
11:13
SPEAKER_03: And when everything started going downhill, I was already two years in and I just felt like I couldn't go back.
11:20
SPEAKER_03: And I knew that the only way out was forward because if I was to go back and get a job to pay off a couple hundred thousand dollars, like that's gonna take me forever.
11:29
SPEAKER_03: So I knew the only way through it was forward.
11:31
SPEAKER_04: So do you feel like the systems that you guys took on gave you more confidence to get there faster?
11:37
SPEAKER_03: Yeah, I mean, a hundred percent.
11:38
SPEAKER_03: I mean, you know, one month in we had two or three deals locked up through, you know, the process call and everything, and had gotten them sold.
11:47
SPEAKER_03: And I was just like, holy shit, this works.
11:49
SPEAKER_03: Okay, yeah.
11:50
SPEAKER_03: I was like, this will this will do.
11:51
SPEAKER_04: Yeah, that's nice.
11:53
SPEAKER_04: So are you glad that you kept going?
11:54
SPEAKER_04: Because I bet it wasn't easy.
11:56
SPEAKER_03: Yeah, no, absolutely.
11:57
SPEAKER_03: Of course I'm glad.
11:58
SPEAKER_02: So I always like to ask everyone again, thanks for coming up and sharing this because I think a lot of people can resonate with your guys' journey.
12:04
SPEAKER_02: Like, business is is not all easy, it's not sunshine and roses.
12:08
SPEAKER_02: Like, there are challenges that we have to face, and I think it's always fun to hear like what were the things you implemented, what was the result, what's the challenge now?
12:16
SPEAKER_02: What's one piece of advice that you would give anyone in this room who is sitting in the position or a similar position that you were one or even two years ago?
12:23
SPEAKER_01: We're just gonna say just don't give up, you know.
12:25
SPEAKER_01: I mean, I guess depending on the situation, if we were in a very tough spot, I think it would have been pretty easy just to roll over and give up.
12:31
SPEAKER_01: I'm very, very glad we didn't.
12:33
SPEAKER_02: Yeah, that reminds me of the three feet the gold story that I opened up with today.
12:36
SPEAKER_02: Yeah.
12:37
SPEAKER_03: I mean, you you said it earlier.
12:38
SPEAKER_03: Go ahead.
12:38
SPEAKER_02: Real quick, I just want to build upon that.
12:40
SPEAKER_02: Remember when I said it gets hardest right before your breakthrough?
12:43
SPEAKER_02: I this is living proof of that.
12:45
SPEAKER_03: When I was here the first time, I mean it it resonated with me pretty hard because you know, we were we were down bad.
12:50
SPEAKER_03: Yeah.
12:51
SPEAKER_03: Um, so and I had always believed that as well because any time in life that that happens, you know it's coming.
12:56
SPEAKER_03: Yeah.
12:56
SPEAKER_02: Yeah, for us, like we we'll talk more about this tomorrow, but on one of our first slips, we lost$106,000.
13:02
SPEAKER_02: Yeah.
13:02
SPEAKER_02: And that was that moment where we're like, okay, we're either going all in and there is no other option or we're going back to work.
13:09
SPEAKER_02: So what what was your uh piece of advice that you have?
13:11
SPEAKER_03: You had said it earlier, but revenue fixes all problems.
13:16
SPEAKER_02: Hey, I can give a round of applause for that.
13:18
SPEAKER_02: Yeah, I like it, I like it.
13:20
SPEAKER_02: Well, um, thank you guys again for coming up.
13:23
SPEAKER_02: And uh, you know, we actually have an award for you both.
13:25
SPEAKER_02: So, Tiff, do you have both of those?
13:27
SPEAKER_02: Yeah, cool, all right.
13:28
SPEAKER_02: You guys have been putting in the action, putting in the hard work, and it's been enough.
13:33
SPEAKER_02: And we can congratulate you all.
13:35
SPEAKER_04: So, yeah, we need to get belts instead of these things.
13:38
SPEAKER_02: Belts.
13:39
SPEAKER_02: Let's grab a picture if you guys don't mind.
13:41
SPEAKER_02: I'm gonna get these out of the way here for real quick, and then we're gonna take a quick break here in a second.
13:46
SPEAKER_02: All right, let's see.
13:47
SPEAKER_02: Where's the cameras over here?
13:48
SPEAKER_04: So, how old is the little one now?
13:50
SPEAKER_02: One and a half.
13:51
SPEAKER_02: Was uh when were they born?
13:54
SPEAKER_04: Whoa.
13:54
SPEAKER_04: One and a half.
13:55
SPEAKER_04: I guess one but one month, one month.
13:57
SPEAKER_02: We have a one and a half girl, that's why I'm asking.
13:59
SPEAKER_02: Here we go.
14:00
SPEAKER_04: Maybe let's give them a round of applause.
14:02
SPEAKER_02: Okay, we're May 17th.
14:04
SPEAKER_02: Yeah, yeah.
14:05
SPEAKER_04: If this hits home and you know you need to go deeper, I want you to download the free resource that I recently just built.
14:11
SPEAKER_04: It's at www.rdebook.com.
14:15
SPEAKER_04: Again, that's www.rdebook.com.
14:19
SPEAKER_04: It's called 26 Mistakes I Made as a Real Estate Investor.
14:23
SPEAKER_04: You'll get the playbooks, the stories, and the breakdowns so that you can shortcut all the mistakes I made while building this multiple seven-figure real estate business and start doing deals way smarter than I ever did sooner and faster.
14:35
SPEAKER_04: And hey, if you got value today, it would mean a lot to me.
14:38
SPEAKER_04: Actually, it would mean the world to me.
14:40
SPEAKER_04: If you left a five-star review on Apple or Spotify and left me a review and share with a friend who you think is stuck doing it all themselves right now.
14:49
SPEAKER_04: Because one shift in strategy could be worth six figures or more.
14:54
SPEAKER_04: Talk soon and see you on the next episode.
14:57
SPEAKER_04: This episode has come to an end, but your journey continues.
15:01
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15:05
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15:11
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15:14
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15:17
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