Tyrell did not even know his team was calling home owners with the DealMachine dialer. So when I called him, he told me I must have the wrong person.
BUT... he double checked and realized his team had switched softwares and made about 2000 calls in the last two weeks using the new dialer.
So I invited him on the show to break down how his company is able to do so many wholesale real estate deals so you can learn how to do your first deal!
Key Talking Points of the Episode
00:00 Introduction
01:20 What was Tyrell’s first wholesale deal like?
03:14 How did Tyrell find his first wholesale deal?
04:10 What does Tyrell look for when he is driving for dollars?
05:21 How does Tyrell reach out to leads from driving for dollars?
06:21 How did Tyrell come up with the offer for his first wholesale deal?
09:43 How did Tyrell sell his first wholesale deal?
11:01 What is Tyrell’s strategy to find buyers for his deals?
12:13 What did Tyrell do with the profit from his first wholesale deal?
14:06 What kind of lists does Tyrell and his team market to?
16:46 How does Tyrell’s team use Deal Machine for cold calling?
17:55 How many appointments does Tyrell go on weekly?
18:42 How does Tyrell know that a deal is worth the effort?
20:14 What are Tyrell’s goals for his real estate business?
23:07 How can you connect with Tyrell?
Links
Facebook: Tyrell Hayden Real Estate Bluegrass Property Exchange
https://www.facebook.com/TyrellHaydenRealEstateLex/
Instagram: David Lecko
https://www.instagram.com/dlecko
Instagram: Ryan Haywood
https://www.instagram.com/heritage_home_investments
Website: Deal Machine
https://www.dealmachine.com/pod
Website: Heritage Home Investments
https://www.heritagehomeinvestments.com/
on this episode you're going to hear how our guests today Tyrell made $35,000 on his first deal. One really cool thing about him is that he's very selective about what appointments he goes on. He goes through a little bit of a process to determine how actually interested the sellers are in making a deal and then he goes on their appointment. My name is Ryan Haywood and back in 2019 I started a 30-day wholesaling challenge. I got my first deal done in 14 days making $8,500 and since then I've done over 450 transactions. And my name is David Leko. I created the software deal machine that's helped people get their very first real estate wholesale deal over 10,000 times in all 50 states and I think this episode is a great lesson for beginners because it can prevent you from wasting a lot of time or feeling like you didn't really say the right thing because our guest has a framework and it really the end of the day is if they're not motivated to sell that's okay. Let's move on and continue looking for somebody who is willing to sell. So we're not trying to force a deal but we're just trying to find a deal. Alright cool so Tyrell how much did you make on your first wholesale deal? First wholesale deal I think I made like $35,000 on it and it all started with me finding a seller negotiating a price and you know I had no intentions of wholesaling it. It was really a property that I was looking to buy for myself. I had a friend that wanted to do breakfast maybe he knew something about it that I didn't know that he knew but we have breakfast I told him about the property I was gonna buy and he begged me to buy it. I begged me for about two or three days and I said okay finally I'll sell it to you. So he's actually a wholesaler himself so he kind of walked me through the process on how to do it even though I had you know a lot of knowledge. I was knowledge myself on how to do it. It was just great to work with someone that does it all the time so that's how he ended up buying it and he couldn't believe how much I got it for. After we closed on it he obviously went to the public records PVA records and said I mean I can't believe you got it for that price. I didn't I didn't know that your profit margin was going to be that much. Wow holy cow okay so what you're saying that you had a family member or friend that actually has been real estate investing? Yeah and actually as a friend that's actually a wholesaler. He's a successful wholesaler. Luckily I found this deal before he found it but he already owned properties on this street and after we had breakfast and I told him the property I was gonna buy just that's when he begged me to buy it and then that's when I sold it to him. Got it. Alright so how did you end up finding this property in the first place driving for dollars? You pull lists of people that were going through probates. Actually it was kind of driving for dollars but when I drive for dollars obviously I use deal machine and obviously I use deal machine because the instant information that I can get on the seller about the property how to contact them you know what's the best source to contact them the best way so I end up doing that and I think he was about to list it and then I end up talking to him and kind of giving him his price and then this went from there for me you know wanting to close on it myself and it being a buy and hold and then after having breakfast with my friend and up turned it to a wholesale deal. Wow okay so driving for dollars is when you look for a rundown house like what are some things that you look for when you're out driving for dollars and found this one. For me in my market which is central Kentucky, Lexington, Kentucky which is a beautiful place right our inventory is low right now our inventory is has always been low just because the way Lexington is set up you have all these horse farms that are perfectly in the circle around Lexington so it's really rare to see a house that's really abandoned boarded up or anything like that so in my market I look for like gutters falling off I look for grass really high I look for just broken up concrete on the on the porches on the sidewalks so in my market that's kind of abandoned in my market when you just see just all in the collect on the property on the you know the curb you know curb appeal that's that's kind of when you see neglect curb appeal in my market that's that would kind of be my abandoned or highly distressed and in a lot of you know neighboring markets to where I met. Okay got it yeah so then you sent him a postcard or you called him or you knocked in the door. The first the first contact or the first way I try to contact the seller was was a postcard it was the bill machine he just called me and say hey guys a postcard reach back out I think I might list it but if I can't it's the one gives me my price so I end up you know calling them back about a week later and that's kind of what led to me getting an under contract and then obviously at the end wholesaling it. Got it okay got it so when you say okay you got an under contract and you weren't buying it yourself and you knew that from the get-go right but right you got an under contract how did you end up calculating what your offer could be. How do I calculate what my offer could be. Well how did you back then this was your first deal right a lot of people get uncomfortable not knowing if they're gonna nail the price right or not so obviously I just kind of wanted you to break that down just for anyone listening see it back and help them feel comfortable assessing some type of property. For me just to be simple and also I just wanted to disclose that the seller I was working with is actually a real estate broker in the state of Kentucky and I'm actually a licensed agent too. Okay. In Kentucky but you know after we were kind of negotiating the easiest way for me especially on the wholesale deal is to do I want to be in purchase price plus my calculated you know rehab budget I want it to be up to 80 percent that way I'm able to you know refi cash out refi with a lender because most of the lenders at the time was going up to 80 percent loan of value so I just needed some kind of you know some security in that way and then how I found my wholesale price was just basically subtracting most of my rehab budget and and then it went from there so at the time my and my friend it was still worth him and maybe his numbers to still buy that price after I'd basically sold him you know my purchase price mine ill and then mine is or add in my rehab budget. Got it. So well how did you know the rehab budget? Actually I know the rehab budget because I also own a contracting construction company here in Elton. All right. So I know my number is really well. I can just look at a property I can probably run through a property within about five minutes in kind of being probably within about five percent of yeah and you know rehab budget or what the actual actual rehab cost are because I just do the number so many so many times. What would you say like price per square foot would it cost for a house that needs a kitchen bathrooms and you know paint and floors. Am I market you're probably looking at probably if you're probably looking at about 25 to $30 a square foot. That's pretty cheap. Yeah that's pretty cheap. Cool. Yeah no that's it's kind of how I've kind of gone towards things anyway because you know at the beginning I was very meticulous and very analytical. I wanted to nail it down exactly what it would cost and the reality is there's just things that come up once you pull up the floor open up the wall and so that's usually at the cost. So even as precise as you can make it you're never gonna know exactly anyway. So I actually just kind of went to kind of more rough estimating price for square foot and then giving myself you know a bit of a margin knowing that might any might eat into that and and that's the risk reward that you get as an investor right. Those who take the risk deserve the rewards and so the person who's putting up the money to make that repair has to deal with the extra unexpected costs but if they do it right and do it well then you get rewarded for that. So I really like the business model of real estate because you know I don't think it's actually too big of a risk if you if you just leave the margin of safe get a little for sure. You know so that's great and in it goes to show you did that well right because you made a decent chunk on the whole sailing piece so you didn't even fix it up right but you know cut rice and then how did you sell that property? I just there's a local attorney that I work closely with because I'm really a boat a buy-and-hold investor right I do a lot of if I sell it's because I'm 1031 exchanging into bigger property or more properties just like recently I'm selling one property that I've had since 2000/20 and me selling that property is going to turn into four properties on the same day so tomorrow I'll have four closings tomorrow I'll be selling one at nine o'clock in the morning and then I'll have three closings back to back to tomorrow afternoon so that's just kind of where I met with it and then I'll obviously now after I had that success with the first wholesale you know I always look for for three exits right so I just look for I'm buying hold I'm I'm old selling or I'd you know I can I can partner with somebody to make it work so those are the those are the three exits that I you know that I look for when I'm looking at a prop so how do you end up finding that person who did buy that wholesale deal really a word of mouth I haven't got to a point where you know I'm reaching out to buyers that our research that our cash buyers in my market or did I see that they've purchased a property on the street or neighborhood for cash really I have a really good close network of friends and investors that if it's a if it's a if it's a good deal for me then it's for sure a decent deal for them and they'll go ahead and buy it if for whatever reason I have too many projects going on or I just need that you know the cast influx for for something else hey guys if you know you want to quit your job in the next three months make sure you're subscribed to this podcast because we've got some incredible frameworks with step-by-step instruction that you're not gonna want to miss also leave us a rating in review to let us know your favorite parts and why you want to get financial freedom and that's so cool I wish everybody could make $35,000 on their first deal that's that's great what did you do with that money as soon as you received it right you got the jacket closing and what did you end up doing with that I try to reinvest I try to probably reinvest 80% of it so I had a project going on it needed new roof I was going back and forth on it you know after a wholesale day like well I've got the money to do new this new roof on this project and don't have to worry about it and I think at the end they'll be it'll be worth it so I just kind of sprinkled it between you know that their project and other things I was like you know it would be one day you know if I get some money I'll put you know some gutters on these couple on these properties or I'll you know I clean up you know the concrete at this property so basically I was able just you know to sprinkle that you know those profits you know across my portfolio which really it gave back to me anyways it was appreciation for the tenants you know it makes it makes it less work on the next tenant turnover or if I decide to sell it right so I think every three or four years I'm kind of cycling some of my portfolio and I try to turn my ones into three and fours and you know I try to sell like I try to turn a duplex or some people call it two family into a fourplex or eightplex or trying to eightplex into you know a small car a small apartment complex so every about three to five years I kind of there's about four or five properties that you know I'll be like you know what I wouldn't mind selling this so I can turn it into something bigger or something more right so you started out getting that first deal with driving for dollars looking for rundown houses and then now I know your team you've made 1,700 calls in the last two weeks so I mean that's about 300 calls per business day or two yeah 200 calls per business day which is great so it's each so you've kind of changed your approach right or you what type of people are you calling now like what type of list are you calling it's it's week by weeks for strategic strategically based on kind of what's going on with me or kind of what's going on in the market right right now lately I've been targeting lots because there's not a lot of inventory in my market and the steel not a lot of land to really buy so I'm looking for vacant lots that's people that's probably people inherited or they've held onto it for a while and you know at the same time they're like well you know it's this lot has been beneficial to me up to this point you know it's gone up in value since I've owned it but you know this is a good opportunity for me to sell it and get some cash from myself so I've been really targeting lots I've been targeting people that's probably own their properties for more than 25 30 years because I do a lot of I knew I do a lot of creative finance deals so I'm always looking to get creative with sellers and others just to make a deal work for them and also work for me so right now I'm targeting lots land that can just can be slick I can start building on you know the next day oh and I'm looking for you know people that's on the property you know for 25 30 years and their personal name they don't need the money they probably own it free and clear and these are the probably the same people that probably did sell a finance deals themselves right I like working with people maybe in their 60s 70s because if you go back in the 70s and 80s a lot of there was a lot of seller finance deals going on because of the interest rates where you know 15 18 percent so I like that when I like I love to hear someone say oh yeah you know I bought three houses and I'll rent the own or tell her finance deals or land contracts I love to hear when the conversation starts out like that because you know it it just makes it easier for me to you know to make the deal happen okay got it yeah for sure all right so you're calling people who own lots you can filter that in a software and is it you making the cold calls or is it your team because what was funny was I reached out to you was like man you guys are making all these calls with the dialer we just launched it and you're like no we're not we don't use that so like your team team was making the calls right and you you didn't know I guess they changed softwares so tell me about how your team works and how you work with them yeah for sure yeah yeah my team was great we weren't using deal machine obviously I found that they were because I'm normally I'm the starter and then I'm the closer and then they're in between so me as a starter you know I have deal machine I set up the list I signed the list and then my callers they start calling and then if we get a hot or warmly then they send it over to me that's part of their daily report so a lot of times only time I'm getting on deal machine is the kind of you know verify some information dig a little deeper and then obviously just to start the list so yeah and then normally that I get a daily report from my callers and you know how many calls they made what type of calls each call was and you know and this if there was like a warmer or hot lead and then we just continue to do that you know each and every week and and just try to tweak things to get better so that's that's the it's kind of the plan that we're doing right now how many appointments do you typically get in a week a week I'm I'd right now I'm just doing one if I do one then it's a really strong lead and it's worth me going out there and it's worth you know the seller you know bringing me in because you know nine out ten times we end up making the deal if I'm actually going out there I try not to waste time and I feel if I if I'm going out there for appointment that lets me know that the seller doesn't want to waste time and you know obviously don't want to waste time so we a lot of times we end up making things happen yeah what how do you get to a point where you know that that appointment is going to be worth your time what are some symptoms or are things that the seller will say that tells you this is worth my time when they actually give me a price and whenever I have a price in my head and is really close to their price and when I think about the price they gave me if that's their price then that's probably maybe the worst case for me so it's it's still a good deal so even if I go there and I can't negotiate the price anymore I'm probably still going to buy a third price right do you typically get on the phone with them once it's a what we would say is a qualified lead or a good lead do you get on the phone with them before you go to the appointment and feel them out a little bit more or yeah for sure yeah my yeah I don't have anybody in my callers they don't make the appointments they just give me all the details about you know the call and the call will let me know if it's a warm lead and then after the phone call it's a you know I consider it a hot lead and then I'm making the appointment and then you know not at 10 times hopefully the deal is done so yeah I'm a quick process of that it's awesome Tyrell so where do you want to go from here it seems like you've got a good business going you have people in the business that are making things happen for you so that you could be the starter and the closer what's something or another milestone that you'd like to achieve or are looking forward to um I think I like to get probably to because I don't really don't have any partners like partners in my companies like that's kind of nice that's nice yeah I wanted to finish out by saying I have financial partners right which they benefit and I benefit but they really don't make any decisions you know I just laid I just laid a deal out and they like okay I'll send you the money on it so those are my type of partners but I have nobody be like hey we should do this or hey we should do that so that's been great at the same time sometimes I do wish I had a partner but you know overall you know I'm happy where I'm at I think my first milestone will be to either get you know I'll probably like the net like after you know you know mortgage insurance taxes and then I set aside like CAPX and I set aside maintenance right after I do that I would like to you know net you know $30,000 a month which is you know $1000 a day and that's just off my rentals right so that's kind of like my first milestone I'm probably like you know 55% there now so I got like 45% to go and I probably like to do that probably within the next five years and then I'll figure out what my next milestone is right now I'm at a I'm at a good rate of game the right amount of properties that I want to get like I just did my first seller funding to deal on a new construction property the other day so that that's pretty neat it's a new construction property that down I got to do 7% down and I'll rent for $2,100 a month and my payment to the seller is going to be $1,200 so I've got a nice spread before you know I start you know subtracting you know insurance taxes and CAPX and maintenance right so that's a sweet deal like I think I read the numbers I'll get like up you know 30 to 35% cash on cash return you know on on that deal with 7% down I'm making you know $3,54 and cash full a month so I love those deals I shoot for I shoot for 15 to 18% cash on cash returns whenever you know I'm buying a deal or evaluating a deal that's kind of the returns I want so love it well it's good to be clear on that because then you can easily move through and evaluate things and knock it hung up on deals that you feel like I just really wish that workout just as a beginner I mean I did that for sure just obsessed over something but it's better just move on to the next thing it doesn't fit your your box there so Tyrell I just really appreciate your time today and I was wondering where on social media could people find people can find me on really on Facebook that's where I'm probably most available and that's probably where both of my personal page and my business page is public though the easiest way to find me is on my business page all you got to do is just go to Facebook and just typing Tyrell Hayden real estate bluegrass property change I don't think there's too many Tyrell hatings on there like you'll be able to find me because you'll see my name with real estate next to it and I'm in the you know I'm in the central Kentucky market if you want me to sit specific based out of Lexington Kentucky so awesome thank you so much and I hope you've got a really great rest of your day ahead of you appreciate your time with us today yeah I appreciate you I appreciate what you've done with deal machine this seems like you're finding ways you know to improve the software the app so I just like continuing you know trying to be better trying to you know provide more service always yeah absolutely never done so I appreciate that you're welcome thanks for listening to the deal machine real estate investing podcast please leave us a review and follow along wherever you're listening to your podcast [MUSIC]
Tyrell did not even know his team was calling home owners with the DealMachine dialer. So when I called him, he told me I must have the wrong person.
BUT... he double checked and realized his team had switched softwares and made about 2000 calls in the last two weeks using the new dialer.
So I invited him on the show to break down how his company is able to do so many wholesale real estate deals so you can learn how to do your first deal!
Key Talking Points of the Episode
00:00 Introduction
01:20 What was Tyrell’s first wholesale deal like?
03:14 How did Tyrell find his first wholesale deal?
04:10 What does Tyrell look for when he is driving for dollars?
05:21 How does Tyrell reach out to leads from driving for dollars?
06:21 How did Tyrell come up with the offer for his first wholesale deal?
09:43 How did Tyrell sell his first wholesale deal?
11:01 What is Tyrell’s strategy to find buyers for his deals?
12:13 What did Tyrell do with the profit from his first wholesale deal?
14:06 What kind of lists does Tyrell and his team market to?
16:46 How does Tyrell’s team use Deal Machine for cold calling?
17:55 How many appointments does Tyrell go on weekly?
18:42 How does Tyrell know that a deal is worth the effort?
20:14 What are Tyrell’s goals for his real estate business?
23:07 How can you connect with Tyrell?
Links
Facebook: Tyrell Hayden Real Estate Bluegrass Property Exchange
https://www.facebook.com/TyrellHaydenRealEstateLex/
Instagram: David Lecko
https://www.instagram.com/dlecko
Instagram: Ryan Haywood
https://www.instagram.com/heritage_home_investments
Website: Deal Machine
https://www.dealmachine.com/pod
Website: Heritage Home Investments
https://www.heritagehomeinvestments.com/
