#18 Converting Dead Leads Using Notes with Eddie Speed
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Itunes – www.TonyJavier.com/itunes
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Guest Bio: Eddie Speed is the founder of NoteSchool. He has acquired and honed marketing and negotiation skills through which all note sellers have been sourced – and served. He has partnered with many real estate companies to design and implement effective seller finance programs, notably Homevestors of America (“We Buy Ugly Houses”) where we constructed a comprehensive in-house program covering sale structure, buyer due diligence, loan servicing, and loan re-sale in the secondary market…a complete solution.
More about him – https://tonyjavier.com/eddiespeed
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Show Transcription:
Tony (00:01):
Welcome to today’s show. We have Mr. Eddie speed on the line. The no King he’s been in the business about 40 years. I think maybe more than 40 years has done him and his students have done 3.5 billion with a B in Notes. We’re going to get into Notes. We’re going to get into how to buy note, structure notes, owner financing, all kinds of good stuff. So welcome on the show. Eddie. It’s a pleasure to have you on, and I appreciate you coming on today.
Eddie (01:06):
How are you Tony?
Tony (01:07):
I’m doing fantastic. We just had a really good conversation before we should have recorded it, but we have really good conversation before we started about what’s going on with the economy. What’s going to happen, how to structure Notes, all that good stuff. So I guess for those that want to know a little bit more about notes, just give us a high-level perspective. I think people have heard about notes buying notes and that kind of thing. So just give us kind of a, an overview of how you teach your investors in your students, how to structure notes, and then we’ll kind of get into some, some different ways to do that.
Eddie (01:42):
So over the years, I mean, I’ve been in a lot of different aspects of the Note business. I started in 1980. So in 1980, there was this huge amount of seller finance Notes. And because there was so much inventory of seller finance Notes, these people would be collecting payments and interest over time, but they’d wake up, wake up and find any need for the cash, right? Just like people selling a house, have a need for the cash. So they would sell their note at a discount. And so that’s how I got started about the first 10 years in the business. Predominantly I just bought notes, but I’ve ran across real estate investors and, and they wanted me to help them structure their note deals so that they could later come to me and buy their nose. And the most renowned guy that did that back in the late eighties was the guy that founded home investors candy, Angela. So so I set up the note system for home investors in the early 90’s. And basically it’s what I found was real estate investors didn’t know what the secondary market was for a note. So the ingredients, so to speak, they cook the pie with weren’t the right ingredients. They didn’t get the right down payment. They didn’t have really an underwriting standard. Didn’t have stuff there. To us was the devalued the note. So I worked backwards and saying, mr real estate investor, you have to understand how a note person thinks or the secondary market of notes works in order to make the best note. And all along the way, you know, I have been active in real estate. I mean, I’ve, you know, owned Atkins, Boy say thousands of properties that we’ve sold. We didn’t sell all of them for seller financing. We sold a lot of them with seller financing. And we’ve kind of gone into deals with either seller financing when we buy it or seller financing when we sell it or hopefully both. Right. So you and I were talking about. I’ve been involved in a number of high volume, real estate investor groups, right. You know that the a hundred house a year plus guy. And so a couple of Years ago I’m sitting there and one of these masterminds and they’re kind of crying the blues. Now. They’re not making the margin they used to make. Right.
Eddie (04:06):
We’re still doing big volume, but they weren’t doing big margin. And so they’re saying we’re making more offers. Yeah. We’re losing the customers because we have to make more offers to get one. Yes. So I asked him enough, have volume guys, and I know markets can be different. Phoenix can be different than Atlanta or Wichita, Kansas or wherever. Right. But what overall seems like the numbers about 20, right. They make about 20 offers to get one deal Accepted. And I said, doesn’t that just Drive you nuts. You leave 19 deals on the table. And they’re like, well, yeah, but they won’t take our price. Pay their price. And I started Did that, no, in, for a shock factor. Right. I sort of did that and just left them hanging for a minute.
Eddie (04:51):
And they’re like me pay their price, Can we make any money if we bought a property, I said, Oh, you can make a killing, buying it at retail. Just a matter of how you structure, how you buy it. And so that’s when got it got me started. And so there were some high volume guys that said Eddie week, desperately, think we need to understand what you’re doing and that we want you to really develop out some really advanced training for this stuff. And I’m like, I don’t know. You know, I I’ve hung out with a lot of high volume guys. I said, I don’t really see them as being, you know, students, I don’t know how trainable they’d be or whatever. And they’re like, no we’ll help. Yeah. And so over the last Two years, I really have spent a lot of energy figuring out the psychology of how to get the seller, to be willing, to take ridiculous terms Because that’s what it is. You know, I mean, you can, you could take a, a 300,000 of a property and pay 500,000 for. It, just how you pay the hundred thousand back Right.
Tony (05:58):
Now, let’s stop for a second real quick, because some, some people may be a little confused. So when we say notes, the typical note that people buy is typically something that a discount. So let’s say it’s a hundred thousand dollars note. It’s paid down to 80. For some reason that person wants to sell the note, whether it’s an owner finance or whatever it is that $80,000 note may sell. We’ll probably sell at a discount depending on the interest rate. So someone may buy it for 50,000, 60,000, 70,000, whatever their motivation is. And depending on the situation of whoever’s paying that note on the other side, right? So that’s that side of it. And that’s the, that’s the education that I’ve seen and I’ve heard over many years. And so what you’re talking about I think is probably a little new to people unless they followed some of the gurus back probably 10, 15 years ago that used to teach some of this, you know, for a short amount of time. So what you’re talking about now is when you’re selling a, or excuse me, when you’re buying a property, structuring a note with the seller to where you can pay their price, it’s just that they are going to be the bank or part of the bank at a certain interest rate to make that deal work.
Eddie (07:13):
That’s correct. Hopefully What you do is you buy it under terms where your debt service is fairly small, right? And then you resell it and you own, or finance it on the flip side. So now you didn’t do a rap note and you’re collecting a payment every month, which is what, when you sold it, what they owe you. And then you have debt service every month, which is the seller financing or any underlying financing that you have. So, people say, well, why is what you teach different Eddie? And it is because we have been for 40 years in the note buying business, what you just said, right? That we price 3000 one-off notes a year. So notes that come from mom and pop real estate investors. We price 3000 of them a year.
Tony (08:04):
When you say price, you’re saying, you make an offer on them.
Eddie (08:08):
No brokers bring us deals every day of the week, right? So we have a trade desk. So people bring this note deals where some mom and pop seller financed a house. It could be an Iowa could be in Florida, could be in Connecticut, right? So there’s a network of note brokers around the country. I had a fairly big footprint in that industry, right? So I’ve trained a lot of people. And so they bring us these notes and we have capital and we bought these notes. Right? So what I learned is to study how the guy that carried owner financing, how they think what’s reasonable to them. And then that influenced me and how I could show a real estate investor, how to make an offer. So the real estate investor, that the typical guy like you and I are talking about, he kind of staggers in and he says, okay, I’ll pay you back.
Eddie (08:56):
And I want to pay you a principal only payments. What’s another way of saying no interest. Right. And he’s sort of off balance when he does it. And he’s like, Oh, well, then nobody will ever take it. That’s because you said it wrong. Right. So what I’ve had to do is to go into the psychology of how somebody, that seller finances, things, right. Once you get into their mindset and how they think you start realizing what’s normal to them, it’s not normal. It’s just normal to them. Okay. So let me give you some stats. Okay. Mom and pop seller, finance notes. These are not, these are not real estate investors. It’s not like you are on a finance to property or Mitch, Stephen owner, financial product. That’s not what we’re talking about. Right. We’re just talking about the regular guy, right? That owner finances, one property, his whole life mom and pop.
Eddie (09:51):
The average interest rate on those notes is 4%. Okay. Now this is, this is 3000 one-off notes a year. We got a, we got a fair amount of data. Okay. The average down payment is zero to 5,000 down on one third. So one third of all of the seller financing, we price, they paid 5,000, zero to 5,000. Now one in 500 of those notes has a credit report on the guy. They owe the money too.
Tony (10:22):
Only one in 500.
New Speaker (10:22):
So see underwriting means nothing to them, right? So I teach a different concept. I know what their quitter pain is, and I solve their pain. I know they’re going to have to give up something. So I already kinda know they’re, they’re gonna, they’re not gonna want 8% interest, like a real estate investor. They’re gonna want two and a half percent interest, 4% interest, something like that. But I can get them to agree to one or 2% interest or no percent interest for the first half of the loan. And then I’ll say, if you’ll carry it for the full 20 year term, because that’s what I need you to do, then I’ll pay you more interest than you ever thought own it.
Tony (11:07):
And when you say them, you’re talking about the seller of the properties, right? So if someone comes to me or any real estate investor, and they say, I want $80,000 for this house. And let’s say for round numbers, it needs 10,000 in repairs. And it’s worth a hundred thousand after you’re done fixing it up. Those numbers. Well, actually, let’s say 70,000, you put 10,000 into it. Then you’d have 80,000 and it’s worth a hundred thousand. Now the typical real estate investor would say, or excuse me, the experience real estate investor would say, that’s not a deal because by the time you pay real estate commissions, holding costs, your team, all that kind of stuff that eats up all the profits, and you maybe have a loss. So rather than doing $70,000 purchase with your own money or an investor’s money, that’s when you would go to the seller and say, okay, I’ll give you your 70,000, but how would you structure that deal? Like how would you, how would you talk that seller into taking your terms on an owner, carry and structuring that deal? Just so, so we know how it works.
Eddie (12:13):
Okay. Well, the first thing is I don’t have generic offers. I know that most anybody that used to teach this gave you some generic blueprint and just lay that at the top, over the top of every deal. To me, that is a very limited way to do the business. It’s not very creative. If you have one, one structure, right? What I teach is the first thing I say is Tony, how many, what is your, let’s be real clear with each other. Okay? I want to get you the price you need. And you understand you’re going to have to work with me and how I pay you back in order to do that. But you got to give me one true, real answer. What are your immediate cash needs? So once you, once you come, I didn’t ask you what the down payment you wanted, right?
Eddie (13:01):
I ask you what your immediate cash needs are. I’m not going to pay you anything down. You have 10,000 in rehab money you need. And let’s just say that you said I have to have 20,000, that’s 30,000 bucks. That’s a 30,000 or private mortgage. And I’m going to get used subordinate and kill her, carry a cell. Or second, if you said you only needed 10,000 down, I could start paying you quicker. But if you needed 20,000 down, then we’re going to have to, we’re going to have to structure more extreme terms on your piece of seller financing. So it’s a balancing scale, right? I listened to the customer and I back into what they need right. And once again, you know, I can pay you the full price of your equity, Tony. But if I do that, I have to pay you over time. Okay? Now that’s another way of saying a no interest rate loan, right?
Eddie (14:01):
But what you have to do is give them a reason that sounds reasonable to them. So you have like the easiest thing in the world. The easiest comparison that everybody can relate to is furniture company, right? You know, the furniture company, they sell their re their furniture for retail, and they don’t charge any interest on it. But believe me, they’re not losing money. And that’s the smart way I think to sell a piece of property is to sell it. Like the furniture company sells furniture. So you have to do things that they’re, they’re calling their brother and telling them how smart they were. Right. That they, all these other fools are selling your house at a discount. And they got retail. They’re just like furniture company. You see what I’m saying? Yeah. So the other thing is I’ve learned that I don’t, I’m not too hung up on interest is how you pay the interest. If you pay no interest or low interest up front and step the interest up, then even if you think you think you’re paying too much interest, you’re, amortize the loan down with the low interest or no interest up font, the amount of principal, 10 years down the road that you’re paying the higher interest rate on is way less principal amount. So your net effect is your payment’s still lower.
Tony (15:19):
So going back to that $70,000 examples. So 70,000 is what they want. You need 10,000 in repairs. It’s where the a hundred thousand typically not a deal because by the time you pay the 10% to your private investor, or even if you go to the bank and borrow 6% money, it still eats up the profits. So going back to that deal. So 70,000, you would either have them subordinate part or all of that 70,000, so that you can borrow money as a first to get the deal done, and then have the second part, or even a really good chunk of it at a low interest rate. That way you can either rent the property and have that cash flow and all of what you’re paying, if you make any payments is going to go down towards the principal. And then what you said is stair-stepping, so you may do 1%, 0%, whatever it is for the first year to four years. But if you’re making principal payments for that amount of time, that’s all going towards the principal. And then by the time you have a higher interest rate at 4%, 5%, 6%, whatever the seller wants down the road, it’s a much smaller chunk of money and allows you to buy that property compared to not.
Eddie (16:35):
Here’s what we’ve learned. We’ve looked at hundreds of thousands of seller finance notes. So we had to be in the psychology business to understand how the guy that owns a note thinks, because we’re trying to buy his asset at a discount, just like you’re trying to buy a house at a discount, right? So if you don’t have any understanding of the psychology of house seller thinks you’re gonna have a difficult time trying to deal with them, right? So what I’ve learned is this, they will agree to crazy things. If you can address with them, why that you can do what you can do. And once again, you know, you’re in your analogy, you’re still trying to buy the house at a discount. Listen, I can structure terms where I can pay full retail. And it doesn’t matter at all because my debt service is way below normal debt service. You can buy a house at a discount and your deck services X, I can buy a house at retail. And my debt service is 60% of what your payment would have been. So the way that you structure the financing, it know where to think of it is there’s wholesale price and there’s wholesale terms. So what we’ve been talking about is the concept of buying them wholesale terms, and I’ve will say, Yeah, I know man, but that’s just complicated and stuff. Listen, getting rich. Isn’t always easy. Everybody wants to get rich, but you got to go find an angle because to me, you, how much money do you burn? Or some real estate investor burn going and finding 20 legitimate leads, 20 legitimate leads and running a business and all the marketing and all it takes to make that happen and look and say, man, I bought one out of 20.
Tony (18:19):
So tell me what are your, what’s your feeling, Eddie, you know, so for those, you know, when you, when you do,udirect marketing for properties, it typically takes you about 20 deals that you look at and potentially make offers on for you to get one, you know, for whatever reason, the seller is too much, they’re just unreasonable. They want too much, whatever it is. So tell us out of those 20, how many do you think with your structure, that real estate investors can take those 19, that weren’t deals and make those deals?
Eddie (18:55):
I have found that of those 19, that between five and eight of those 19, there is the right bones to the deal to make an offer. Right? and you can buy one out of those. So literally you could buy two out of 20 versus one out of 20. You can double your conversion. And you know,
Tony (19:19):
That’s a big deal. I mean, it’s, if someone’s doing 40 houses a year by structuring and being a little bit smarter, they can do potentially 80 deals a year. So instead of having to double their marketing to get the same amount of deals, they just take the amount of deals they’re doing that they’re already, or excuse me, the amount of leads they’re already getting, and just come up with a more creative way to structure the deal.
Eddie (19:43):
So, here’s the concern, right? Most real estate investors say, the reason I don’t want to do that, Eddie is I know you teach wealth, but I have to make transactional money. Right. And I’m like, okay, well, what if I can almost show you every time, how to make the same transactional money you could’ve made flipping the house upfront and then get a check for 20 years, which is going to make your profit probably four times bigger than it ever would have been. Right? So the reason it’s very simple, right? You, buy it on terms and you resell it on a wrap note. So Tony, right now today, 35% of the people that could get a mortgage in February of this year cannot get a mortgage today. Okay. This month. Well, excuse me. The statistics from last month, let’s go one month back because I have those statistics. And by the way, you can go to Elliemae.com and source my information. Okay? So EllieMae is a software company that gathers software on basically every loan origination out there, Fannie Freddie FHA VA average down payment paid last month on a purchase, not on a refi, but on a purchase was 17%. The average down payment that everybody that got a Fannie Freddie FHA VA loan last month, 17%. So this has left this gigantic hole of people that I call a deserving buyer, right? So, the role of real estate investor, I understand that it, this to run this high volume business, or even a low volume business, right? You got to go, you feel like you have to cash a check today in order to survive. So in this very house that we just described, I’m going to resell it and get 17,000 down. Right.
Tony (21:43):
So, but let’s talk about retail value to the other side. So in a typical retail sale to an, to a buyer, that’s going to get a loan with a bank. You can sell that for a hundred thousand. So would you recommend when you sell or finance it, especially since it’s going to be a longer term to potentially add a premium on top of that?
Eddie (22:04):
Well, let me just tell you that you and Mr. Dodd-Frank are not going to get along as great friends. If you say you’re going to oversell a piece of property, okay.
Tony (22:14):
Oh, You can substantiate that with sales.
Eddie (22:17):
You sell it for retail? You can’t sell it for more than retail, right? So you might get sell it for 105, but I teach here’s what I teach. I teach buying a superior piece of property and selling it to a superior buyer with owner financing. I don’t teach buying substandard real estate and going, finding somebody with he and his wife combined credit score of 700, right. Or five go scores combined, is 700. I don’t teach that because it’s junk. It won’t pay you. Won’t be good to you. So, so here’s the, here’s the catch. If you’re going to go down the lane that I’m suggesting the way that you buy it in a way that you configure the financing, when you buy it has all to do with the ability to do it. Right? So, it’s a process that I understand when you see case studies that it sells the picture because you just can see the math and you can see exactly how it works. Right? But, equal along with white boarding, the math and, and that’s important. I’m not saying that it’s not, but along with white boarding, the math, the more important thing is structuring the deal in a way that sounds like the seller to them. It’s what they want to do. So you, you, don’t just, you have to go, you have to go find out what’s important to them. And once again, the takeaway Is always, you can always sell your property and get all your cash today. If taking a discount is okay with you.
Tony (23:54):
So may ask you this. Speaking of Dodd-Frank, if you’re selling a property on owner carry terms, you’re, you’re technically becoming a quote unquote bank. What is your thought on licensing? Because there are many different perspectives on this. Do you feel, and it may vary on state a little bit, but what are your thoughts on people being licensed mortgage brokers in order to do that?
Eddie (24:18):
So, yes, if you’re a, if you’re a commercial real estate dealer, right. In Dodd-Frank defines that as three or more transactions in a year, then you are a lender and you fall under Dodd-Frank. I don’t know. I don’t know any high volume, real estate investor investor that generates a lot of seller financing. That is, is their own internal, residential mortgage loan originator. That’s a terrible thing to try to go figure out, just go hire out the license, right? You don’t need to have a license internally. It’s not your, it’s not your core competency. It’s not my core competency. So hire out the license. It’s nothing to it. You’ll create better loans because they are underwritten. They are vetted. They are whatever you don’t have to underwrite to Fannie Mae standards. Okay.
Tony (25:14):
And then you just, and then you just pay them a fee to do the paperwork and use their license
Eddie (25:18):
A hundred percent. That’s why every high volume guy I know does it, so understand you hire out the license, just like I can hire an attorney to do legal work for me or an accountant to do accounting work. Right. And I’m in, because it does go through an hour AMLO then you’re going to end up with better quality, better vetted loans. And so it’s just going to be good for you. It’s going to, it’s going to be, the bank is going to pay you for a long time in the future. So doing this for a lot of high volume guys, I’ve heard the same thing over and over and over. We have to make transaction money. We can’t just bet on the future. I’m like, okay, then you get a big down payment and you just solved your problem.
Tony (26:03):
And with you know, real estate investors fix and flip guys are high volume guys. Most of them do probably renovations on the properties, but there are some that just buy the property. They don’t do renovations, or they do just enough to make it livable. And then they sell it on terms. What do you see most of your guys do? Do they typically do the full renovations? Do they sell it as is like, what is their, what is their model on that side of it?
Eddie (26:30):
Well, I’ve bought tens of thousands of notes. I’ve looked at hundreds of thousands of notes. Statistically, the, that buys a house that’s not repaired sucks as a buyer. That’s just been my life experience. There are exceptions to that. Okay. So I’m not giving you a hundred percent rule on that, but I’m saying to you that that is not what we teach, because unless they’re sitting there with real cash in the bank and a real competency to go repair that property, and you can make sure it’s done in a proper industry, standard Workman, like manner, then you’re going to find out that their construction work is not improving the value of the house. It’s deteriorating the value of your house, or they didn’t fix it. And now all of a sudden the whatever’s wrong with the house, they wake up one day and just give up on their dream. So I’m not for that, that’s not building my, everything that I want to do is focused on building a bank that will pay me back 20 years in the future. Right. In other words. So I have to find a good buyer that loves the house. The house is great. And then all of a sudden I got a winner.
Tony (27:54):
Yeah. Because I do know at least two guys that will buy properties, clean them up, not livable, or maybe just on the borderline and livable and sell them off at an owner financing. So they have pretty much no money out of pocket on the repairs. And they’ve been very successful in it. You say, no, I’ve probably done that with, I don’t know, 10 to 20 properties, somewhere in that range. And it’s about 50, 50, 50% of them fix up the house. They take care of it. The other 50% they move into it. And like you said, they either deteriorate it more or they start doing demo and they don’t finish the project. Sofor those of you thinking, which way should you go? I think it depends on your process. I think it depends on your market. I think it depends on your price point. There’s a lot of different variables.
Eddie (28:43):
Okay. Tell me, tell me if I told you, I, will ask you if you want, you want to invest stock in my bank. And I told you, I made 50% of the loans I paid I made were really good. And 50% of them weren’t so good. Would you want to invest in my bank?
Tony (28:56):
Well, the thing is, is that those properties that they did not fix or did not go well, I still got the property back, ended up making money on it.
Eddie (29:05):
That’s a terrible business. I’ve seen, I’ve seen my career. I bought a thousand portfolios of seller finance notes. I’ve looked at five or 6,000. Okay. I spent my career seeing people that get now got gray hair like me, that thought they owned a business. They thought they owned a portfolio and found out they owned a business and they couldn’t retire. So they had a bunch of junky notes that they had their slow they’re slumlords for notes. And they had a bunch of junky notes and they had to keep them propped all the time. And I’m just telling you, there’s no peace in that. So to tell you a young, smart, young man, that is a business and not a portfolio.
Tony (29:51):
Well, it depends on how you look at it because the way I run my business as a business, and I’ve got contractors, I’ve got a team that can manage that. I’m not looking to just buy hundreds of these and sell them off and not do anything to them. So we have different philosophies. We may agree to disagree, but you know, it just depends on how you run your business, the properties and what you want to do with them. But for me, the reason that I like that is because it gives them equity as well. It keeps less repairs that I have to do on the PR. And again, I’ve only done 10 to 20 of them. I just, you know, I just dabbled in it. Some people, sometimes people come to me and say, Hey, I need, I want to fix her up or I want to move into it and, and renovate it. So it’s not a true business model that I’ve come up with. It’s just, happened to kind of fall in my lap. 50% of the time, it works in 50%, percent of the time. It doesn’t. So wrapping up here, so this is some really good stuff. So for those that I guess are in the business and doing high volume or doing any volume at all, it seems like you could potentially do a lot more deals or potentially double your deals by coming up with this, by coming up with a good strategy to do these deals and doing creatively, for those that are getting into the business, it is very cutthroat. There are so many people wanting to do deals. So I guess this could be a way for those that are not able to do deals because it’s so competitive and start out to potentially start doing deals. Would you, I guess, would you recommend that like someone starting out, would you recommend them doing this? Create a process because there are a lot of different variables in the mix?
Eddie (31:30):
Well, I think the answer is you can get into the business easier if you specialize in buying on terms, because I can go to you Tony and say, just give me your, give me your 19 dead leads. And I’ll, we’ll agree. And we’ll paper it up correctly, but I’m going to pay you something if I close. If i don’t close and it’s still in the trashcan, but if I can go rescue a deal from your trashcan, wouldn’t you give me a lead and let me go try.
Tony (31:57):
Wow. I liked that. I liked that because you could go to, especially in a big market, you could go to the 10, even five top wholesalers in your area in probably source hundreds of leads. Like you said, that aren’t being done that could potentially be done. So I like that trashcan leads.
Eddie (32:19):
Yeah. So, that’s one of the strategies that I try to do is to say, look, well, think of it in terms of this, I’m not trying to take anybody away from the successful business. They’re doing buying a house for cash. That’s a successful piece of their business. They continue to do that. Whether you rent them, you wholesale them you fix and flip them. You do whatever you want to. I will argue with you that I have met more people that have seller financed properties than anybody in the United States.
Tony (32:49):
I wouldn’t doubt it.
Eddie (32:50):
So I believe what I believe about who you sell to and the conditions you sell to them and their investment and their, how you underwrite the chances of that loan paying back. Right? I’ll argue that you have 20 houses of experience and I’ve seen several hundred thousand notes, right? So I can tell you, statistically, I believe that I’m right. And once again, if I can show you how to do all the things, the way I’m doing it, and you end up getting a better check, more consistent money, then you’re happy. You don’t have to go figure out how to go solve a problem. Right? So those are just things that I think I can get you comfortable and saying, Oh, okay, I can go sell it like this. Right? In other words, you just, people don’t know what they don’t know until they see it. Right. But on the other side, a small guy that enters in a high volume got to me, should add this to their business. You know, the, you know, the only reason they would never add this to their business is they’re like, Oh, mine. Exactly. Oh my God, I, this is a whole new thing. And I got to go learn how to do it. So this is why I teach the other side, I to go train high volume guys. And then I go train guys that aren’t high volume, but they’re smart. And this is a piece of the business. They have to learn it just like everything else. But here’s the Casey is he becomes their designated hitter. He comes in to go work at the trashcan leads that they’ve otherwise they’re going to not make money on.
Eddie (34:17):
And so that’s where I’ve kind of seen myself as kind of really solving an industry problem because I’ve trained a lot of high volume guys. They all, when they come down the road with us, they’re like, Oh my God, I can totally see that. That’s really cool. But then they go, oops, I got a high volume business. I can’t add this by acquisition guys. Can’t do this. Blah, blah, blah. And so I had to go develop a strategy for it. Actually, I came up with the idea from a guy that really has pioneered more of the house wholesaling business than any other single guy. And this is a John Martinez that teaches negotiations. Yep. And so the media expressing to him, he’s known me for years and he, me expressing to him where my roadblock was. Then he says, we’ll just go train another guy to go do that and have them just pass the lead on. And there you go.
Tony (35:08):
That’s very nice. Very nice. So I’m guessing do you have online training Eddie that we’ll, we’ll put a link down below. I get that link from you and we’ll put it down below. I’m guessing you have training that people can get ahold of that they can buy to get the paperwork, get the strategy and all that good stuff. Right.
Eddie (35:26):
There’s a, fairly simple way to get started. I wrote a book and it’s been since the virus, we modified it after the virus and it’s about 50 pages. It’s an ebook, but pretty solid. It’s got about five paragraphs in it and it gives some good ideas of how to do it. And then it also register them for, I don’t know, probably about an hour 90 minute training so they can see some case studies and get more of an idea of how to go do it. So the idea is if somebody just got the one thing, if somebody says, you know, what, if I can dig some deals out of the trashcan, I’m I would love to figure out how to do that. If I can get somebody at that point, then all of a sudden we just start giving them examples. And it makes sense.
Tony (36:08):
Yep. Awesome. Well, I appreciate your time, Eddie. I love doing this because our listeners love good new ideas. I always love good ideas that I’ll take back to my team. So I’ll definitely dig into this and see if we can’t double our deal volume. So thanks Eddie. You’ve been in the industry a long time. You’re a legend and we appreciate your time and look forward to catching up again soon.
Eddie (36:29):
All right. Thank you my friend.
Tony (36:30):
All right. Thanks Eddie. Thanks
Tony: (08:04)
When you say price, you’re saying, you make an offer on them.