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July 21, 2022

Ep 214: Evolution of Real Estate With Novations With Corey Geary

Ep 214: Evolution of Real Estate With Novations With Corey Geary

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Transcript

Hey everybody, welcome to the hybrid this podcast. This is Antigona with your co host Daniel Martinez on here crushing the game. We have an amazing episode coming up for you here. I know this is gonna be a good one. We have Mr. Novation nation himself on here Cory Gary, so I'm excited about today's episode, it would be who you listen to this whole thing, so I'm sure he's gonna bring the fire. What's up, Corey? What's going on guys? truly honored and blessed to be here, man. Thanks for having me. Dude, thanks for hanging out with us, man. Yeah, we know your time is valuable. So let's get right into it. Absolutely, man. Let's do it. So how long have you been in real estate? Let's always start with that question. Because some people were like, we're kind of New Kids on the Block rent and for years. And a lot of you have way more experience than us. Yeah, I don't have too much more I got in the real estate. I bought my first house to flip in the end of 2016 was one Yeah, that was when I first got into real estate. I was watching that show Flip or Flop. You know teracle Musa. Everyone knows that on HGTV. I had some money saved up. I was a blackjack dealer at the time saving up some money. My girlfriend was a part time realtor a part time blackjack dealer and she's watching that show. And she's like, why don't you flip a house so I could list it? I was like, Oh, why don't I flip a house? I mean, it seems easy enough. 30 minutes you make 80 grand. And so like the next morning I'm on my morning run and I see one of those signs at the bandit sign says uh, you know, fix and flip by price 250. ARV 350 And I stopped on my morning run. I call that number on that sign. I buy that house. It took me six months and I made $8,000 That was my first real estate deal. Man, you pay the admission price. Yeah. Wow, that one worked out. Well on my second deal. I bought one from a wholesaler make 20 grand but on my third deal I bought I was an idiot. I bought four houses all at once. I ended up getting had to do a new I had to get a new contractor because the other one we split ways. Well, the new one was even worse. He took us to the cleaners and I lost a quarter million dollars on my third transaction in real estate. It broke me I lost my 401k money. I lost my previous flip money in my life savings. And like I was like, basically done except for I had my job. And so that's why that's how I got into wholesaling because you'd always hear about wholesalers get deals with no money, right? You don't need money to get into real estate and I literally went on Google, and I typed in how to wholesalers get deals and freakin Sean Terry popped up. Oh, nice. Did you connect with him right away? Or? Oh, yeah, but I bought his course joined this mastermind. And now I'm fortunate I call him a friend man. We have phone conversations all the time. And he's a good dude. I went down the Sean Terry rabbit hole man, it took me 10 months. When I when I decided I was gonna start wholesaling to get my first deal. We were doing bandit signs, direct mail. And then, you know, my first deal made 10 grand and it was off to the races after that, you know, I build out a, I built out a call for my living room and put a bunch of cubicles in my living room and I hired college kids to come in and cold call for me so I could go out and lock up deals. And that was how I got in the real estate man. So I really want to hit on this first is you had a really, really big loss early on. Like how do you overcome such a big loss? Because that's a big hit. that'll knock somebody out of business completely. Yeah, man, you know, it's my personality. I'm very stubborn. Like, I'm very hard headed, bro. Like, I hate losing. Like, if you play me in video games or whatever, on the same way, like sports, I don't matter. Like, I just hate losing, right. And so like, I felt like the only way I was going to win and get my money back is if I push forward. So it actually gave me more motivation, more drive. I mean, I was determined, man, because I just took the big lump. I didn't want to lose everything. And just continue being a car dealer for the rest of my life. You're not I mean, it was me just being stubborn. And just like I'm not going to just lay down and die here. I'm not going to lose. I have to make this money back. That's amazing. I think that's the mindset that it takes in this business man, it's like because we're all gonna get a beat up here and there you might lose on a deal. Get your hopes set up high and then knocked down low from one day to the next. So you have to have that funny story where the two seconds when I was a kid, a monkey kids but my parents bought me a Nintendo and when I would lose I would get Darius and I would start crying. I would like throw the remote control. I would break the remote. You got to have that grit. And I think it goes above mindset because a lot of people talk about, you know, I do like having that correct mindset, but you just got to have that internal drive that just doesn't turn up. You do man you do and you just got to build to take the L and be able to know how to move forward and not let it kill you. Right and let you put. I mean, we take ELLs all the time, man to this day, I make mistakes all the time. I mean, we're entrepreneurs, we just shiny object syndrome, right? And we we try and in other ventures, they don't work out and you'll lose money. And it's like, oh, it's like, it's just how it goes. So how'd you do the transition, man? So okay, so you're busted. You're pretty pissed off. You find Sean Terry. Now what? So you sign up for his course you started attending his masterminds? What was the catalyst? Like What Did you figure it out? Working with hands that made you say, You know what, this is good. This is going to change the game for me and made you stick with him? Well, he taught me how to go direct to seller before you know, I was buying from other wholesalers, I was trying to be the fix and flip guy on TV. Right? You know, that's what I was kind of chasing. So he taught me how to go direct to seller and get the deals myself, you know, and back then it was kind of more of the, you know, do direct mail, put up bandit signs, and cold calling and kind of came around a little bit later. But yeah, and it's just just by repeating the marketing, and I still have my job at the very least right? I was able to make money at the casino and steal money into the business as I was, you know, doing more marketing and trying to scale the business up. Like I said, it took me 10 months to get my first wholesale deal it because I hadn't I wasn't any good at sales, right? Like I didn't have any previous sales experience. And, you know, let's talk about all these homeowners and between Shawn, but also I signed up for John Martinez sales training. That helped me a lot with my conversations with sellers and I was able to start locking deals up that about you, man, I thought you were just a natural, and maybe he was born with it. I'm good as far as like being like a social butterfly and talking to people but like, I didn't know how to have these conversations with sellers. You know what I mean? I was just giving them offers, and then like, they'd say, no, then I'd hang up and never call them back again. It was a one hit wonder. Sounds trying to be right. But you know, you'll you'll learn the process, you learn how to how to have these conversations and how to like dive into pain and motivation and what their pitch of perfect is and how many times you got to follow up with them. And, you know, it's all about time and circumstance with the sellers and you got to hit the hit them multiple times over into the circumstance, you know, hits at the right time where they had to sell the property. And so you know, you learn all these things as you go. But yeah, man, it's, it was quite the struggle in the beginning of my journey. So so one thing I always like I always I had a struggle to accept me seven months ago, my first deal and you had to contend months, you can always use that when I because now you're coaching too. And this is like, I can't get a deal in 30 days. What's wrong with me? And like, I did 10 months in the trenches. And it's like, you have to always have like that. That upper? Yeah, it took me 10 months to get that deal. Look at me. Yeah, absolutely. I mean, I've heard of people taking all that to a year before you know what I mean? And some people they get it out of the gate, man, they'll get a deal, like in the first month or two. So to get my first contract, how long 45 days? Yeah, but I dropped like 25 grand in marketing, dude. So I had a marketing background. So I was like, if I just spend enough money I'm gonna do. It's true. Yeah, it's true. So let's talk about your bread and butter. How did you learn about innovations, man and how long you've been doing innovation? That's a great question, man. So I started ovations in the beginning of last year. And so I'll kind of fast forward on my real estate journey. So I'm starting to do local deals. We're doing five to 10 deals a month doing okay. And I start going these masterminds, right and started hearing about people doing this nationwide thing. Everyone's starting to get the nationwide starting to get glorified at Sean Terry starting to teach it and, and I was like, okay, so if I want to scale, I gotta get out of cognate Phoenix, and Phoenix is a very competitive market. And I'm like, Alright, to scale. I go nationwide. Well, we went nationwide, man, I almost went bankrupt, because we couldn't sell any of the contracts. We didn't know how to underwrite the deals. It was a shit show. And so like maybe one out of every five agreements with close and so like, now we're good at it. Now. We're good nationwide wholesaling. But the beginning we sucked. And so I was in a mastermind one day, and this guy was doing a presentation of the business and he was talking about Novations. And it was on a local model. And he's like, Yeah, we do Novations we sell our deals on the MLS to conventional buyers. I was like, if I could figure out how to sell my deals on the MLS to conventional buyers nationwide. This could fix my pain point and my business. So I Yep, so I dove Deep down the rabbit hole, you know, I bought people's courses and started following whoever was doing it. The problem is the old school traditional way of doing it, I didn't really we tried it, I didn't like it like using the power of attorney collecting the sellers proceeds stuff like partnering with the seller. And so just by paying enough money to an attorney, my own attorney were able to create our model of doing ovations and the way we do it is like Hotelling without taking possession. That's the best way to explain that a 30,000 foot overview because I want to be able to scale it and not have a lot of liability. And if you're collecting sellers proceeds at the end of the close and you ever end up in court for real estate fraud, it's gonna look bad in front of a judge if you use the power of attorney collected proceeds and everything else. So I just wanted to mitigate my liability. So we just really dove deep on it. I mean, in the beginning, it sucked we a lot of our deals, we screwed them up, just like anything else. And it took us some it took us a while to get traction with it. But now man, eight out of eight out of every 10 deals that come in are Novations now we're a Novation company first, wholesale second, I don't even like wholesaling. Do it. Okay, so look, I feel like I'm right where you are right before you popped. So we have been doing a lot of wholesaling, wholesaling, double closing, but you know, 99% of the people you talk to, they're just they're too close to retail to to make a deal juicy. But if we could list them, I mean, that's the magic sauce right there. So you want to go into what somebody might learn if they go to innovation nation.com And, and sign up for the training, for sure, man. So you're gonna learn a few things, obviously, you got to learn how to handle the conversation with the seller how to pitch it right we call it the Novation conversation. So you got to have that Novation conversation, to convince them to go with what we call the concierge service. And it's not that hard though. Because think about like pitching seller financing or sub two, you're trying to convince a seller to take their payments over 30 years or or transfer their mortgage to you, right? We're we're we're just we're just saying Hey, mister seller, let us bring a third party buyer to the table via a network of Realtors in MLS and you're gonna get the net amount that you want, or that we negotiate on. And so it's a lot easier pitch than creative financing. And so it really is marrying basically retail and wholesale together. And so the pitch is what you're going to learn, obviously, you got to understand the paperwork, there are five different five different tools that you need for Novations, you need to obviously your purchase agreement, which is pretty standard, you're going to have a Novation clause in there. So you have the upfront transparency, disclosure on your first agreement. The second thing you're going to need is a Novation and identification agreement. This identifies the seller didn't apply to you and spells out exactly legally what you're doing in the transaction. And then the third thing is we use what's called an attorney, in fact, so we don't do the power of attorney anymore, the attorney in fact, it only gives you the rights to sign on the sellers behalf. So you don't have rights over the real estate, no more the power of attorney, you have the rights over the real estate, where attorney in fact, we're only having the rights to sign on their behalf. So basically, we could sign the listing, we can sign in the office coming in. But we don't sign the deed. Because the deed is not in you know, we're not a power attorney, we don't have control over the real estate. So the seller is still signed as a final deed write the closing paperwork, but we're able to sign everything else. So those are the first three things you need a front then after you get a buyer in place, we put what's called a Notice of interest in the property. And this just clouds title, and basically allows us to do two things. One, it allows us to get paid at the end of the transaction because innovations, you're cutting yourself out of the deal. Were in assignments, you're staying in the middle of Vienna assignment innovations, you're no bait in the contract. Novation means replacement of agreements. So you have to get paid somehow. So we we we record a lien on the property via notice of interest. And so that also protects us to if the deal were to go south. So we put the notice of interest in the property once we get a buyer in place. And then once we're ready to close, we do what's called a release of interest and the release of interest is our our payoff. And so what's great about a lien on the property or a notice is that any underwriting will approve it. So if there are conventional financing, if they see your assignment on there, they're not going to prove that but if they see like a mechanic's lien, if they see another mortgage, if they see like, you know, city lien or your lien, they will prove your payoff. So that's how we get paid. That's all chat says, Can Can you do this on distressed property? You can do it on distressed property. A couple things, though, depends on the distress for one if it's a distressed seller in a way where they need their money in like three weeks, and there's just no two ways about like you can't know me to deal in three weeks because you gotta go to market with this deal. So you have a time that I'm being a market and a time that you have to close with that conventional buyer. So if they're in a fire sale, then no you're not gonna want to do that. But if the property is in distress as far as like maintenance, it's just a little bit more of a beat up house, you can novate those deals, you can just want to know bait them to a conventional buyer, conventional buyer or a cash buyer. Don't know bait them to an FHA or VA buyer, unless you're planning on making the repairs because with FHA and VA, you have to pay for the repairs were unconventional you can do a buyer credit. Well, that's a great distinction. And can we dive into that for a bit, because I think we're using a lot of terms and phrases from our audience might not even know what we're talking about. So, okay, so we back it up real quick. So this, this, I'm actually trying to like pick some of this up myself, too. So you're gonna have a Novation agreement that you signed with the property owner gives you permission to sell the property. So now, can you talk a little bit about a conventional versus an FHA loan? And how that set Novations? Shall we? Conventional is the second best to cash, right? Cash obviously, is king. It's the best, you know, and like conventional is right up there with it, man. It's not government backed, FHA and VA are government backed programs. So they, during the inspection period, they have to pass the livability of the property would say the property as a pasture inspecting and say it's livable, so it can get approved by the government back program. But what conventional financing it doesn't, it doesn't you don't have to have it is no, it the inspection is only for the buyer. That's all it's for, for the buyer knows the condition of the property. When you can dispatch an FHA loan, it's not just for the buyer, it's for the lender. So those are the two biggest differences. So if you're an inspection period on a conventional loan, and they come back union new roof, then you're gonna go okay, hey, Mr. Realtor, how much is a cost for a new roof? They're in your market? And they can be like, well, it's 8500, typically, Okay, how about we credit your buyer 1500 At the close of escrow for that roof. And that's, that's how we get 95% of our repairs done. Now, we'll do some stuff, like if a property if the realtor is going to Hey, it'd be really good if you know, you got the property cleaned up, remove some of this junk, maybe powerwash, the driveway, something like that, you know, if it's, it's cheap and easy, kind of like Hotelling. If you can wholesale a property and not do much to it, we'll do that. But for the major repairs, we're letting the inspector tell us what we need to fix or what we need to do credit for. Okay, did amazing, okay, I love it. So for conventional, what's the typical downpayment, they're gonna need a little bit more down than an FHA loan. Well, there was a there was conventional financing out there for 5%. But I think, you know, with all the new what's going on in the marketplace, I'm not sure, but sounds are typically three, you know, 20%. And most of our buyers do put 20% down. That's what I was thinking probably somewhere to the tune of like 20, or 25. And FHA is our typical number for that for down FHA loans out there, but 3%. So we'll, I won't say we won't do FHA and VA will do them. But you got to know your financial risk threshold, if you're new at Novations, don't have a lot of money in the bank account, it's good to stay away from the FHA, VA. And when we do the FHA, because maybe we get a deal in a rural area, the rural areas, you really have to open up your buyer pool, you know what I mean? And so as long as we know, going into the property, we'll have like the realtor, go out there, inspect it, maybe even pay for an inspection, a pre inspection to be done to the property before you go ahead. And you know, and put it on the MLS to see what's going to cost us to get everything fixed. So you got to know your financial risk threshold, man, if you're comfortable. My last one, we put in $27,000 in the property, sold to an FHA buyer, and we netted $42,000. And this is in a little tiny town called Rock Springs, Wyoming. So those is when you kind of have to open it up to FHA and VA. But if you're doing like, if I'm doing a Novation here in Phoenix, I do not need to put FHA or VA on that listing, I can do this cash and conventional. Okay, are you are you putting that in that listing as well, so like, if it's rural, you're gonna put FHA, VA and you kind of tell your seller, it might take 90 days, 120 days to sell full transparency is key, full transparency is key, right from the get go with the seller. And when you're explaining to them that you're going to be bringing a third party buyer to the table, that it typically takes this long to get our buyer in place. And you're just gonna go on the MLS, or you can go on Prop stream, and look at what your average days on market in that particular area are. And that's how you're going to kind of you know, figure out what your average market are. So you can be fully transparent with the seller. Yeah, I like to under promise over deliver. Yeah, let's just let's get on a timeline. And we always try to price it a little under market, right. So we want to make sure that the properties are moving faster than your typical transaction on MLS there in that market. So we always try to come under. And right now we're really go low. Like we just had a meeting of my acquisition team on Monday. And we're we're we're positioning our offers even lower. So the cash offer we're always leading with cash, everything should always be level chat offer, that's your anchor. So we'll come the cash offer maybe like 40% 35% of whatever you know the value is. And then we come in, you know, maybe 510 15,000 over that with the concierge service offer. So we're anchoring even lower now just because of the market uncertainty. But I'll tell you something, even with a recession upon us, retail will never go away. If you look back in the 1980s, when the interest rates are at 18%. People were still buying houses. Yeah, but what does go away the investors the HGTV house, the flippers, those guys kind of go away. So if you if you position your Novation offers in the correct the correct way, there it's recession proof. I think everybody's thinking about that right now, man, we're seeing a lot of cash buyers folding up shop, lots of wholesalers getting scared, lots of fear in the market, it's getting tough man or they're lowball the crap out of you. Right? We have one property right now. It's a duplex. As Awesome man, we should make 20 on this easily in the I know, I got my comps, right. And they're just low balling the crap out of us. Like we might make five on it. And there's like, Oh, my God, it's just the market is shifting in. So we just got to you need to put other tools in your tool belt. You know, another great thing for a recession is seller, seller financing, seller financing is a great way to go into recession and pick up a bunch of cashflow and properties, you know, keep them for sale for sale to investors. So this is when these you know, these creative strategies really shines during a recession. Yeah, man, we've been pushing that real hardcore right now is that seller finance. So with a few offers yet, the cash offer and the seller finance offer, and then we've been threatening, like innovation, because I still haven't learned everything about it. So I'm gonna have to check out your course. But yeah, you know, just to kind of call their bluff as a whole that is listed for you, then, you know, let's see where you're at real. So this is cool, man. How much can somebody expect to pay for for your innovation course training? And then what does it come with? Well, I'll tell you what, just for the call, man, I did a little discount for everybody. Typically, we charge 9097 for the course because it's all the videos, it's plenty how to conduct innovation, including all the paperwork, which cost me 1000s, let alone by itself is worth the price of the course. Yeah, but if they go to the Novation nation.com Right now I set the price for 997. So it's literally 50% what we'd normally sell it for. And so it's basically just step by step directions how we pitch, the Novation conversation, how to, you know, basically conduct the transaction because that's the hard part right? Is the back end of running ovations is where it gets really tough because you're dealing with all the realtors, brokers, appraisers, inspections, and you got to it's almost like you're, you're a brokerage, like sometimes we my team are like, are we like a nationwide brokerage, like it feels like it sometimes. And so that's where really the a lot of the knowledge you're going to learn on Novations comes in and just you know, understanding the paperwork and how to, you know, what each document does in the transaction. And anybody that's watching this, whether you're a wholesaler, or even a seasoned investor, if you're not using Novations, I promise you, if you pick up that training for 997, you'll make it back in your first probably in your first 30 days, because we've been leaving so much money on the table passing by all those sellers that can be turned into innovation. So I've been thinking about it, praying about it, you know, I know it's we're in that tis the season, if you're ever going to do it, you need to do it right now are pretty good chance you're gonna go out of business. So start learning these creative strategies now and implement all of them right and don't be a one trick pony is never to be good. Even in a bull market. You don't want to be a one trick pony. It's it's good. Wholesaling is great. Only wrong, but that's the gateway drug to real estate. That's funny, but true. Yeah. So we also go ahead, I'll just say we also have a mastermind too, if people want a more hands on hand holding type structure, we have a mastermind that we teach, you know, nationwide, wholesaling and Novation deal making use of PPC as your main marketing strategy, basically, how to mirror my business. So I just wanted to throw that in to have everybody was interested in more like hand holding where the course is just what it is. It's a course. So okay, so that's what I was wondering if the course if it had anything else attached to it. So there's a separate product, which is a mastermind. What does that include? And then how much is that? So yeah, well, there's 30 members in the group right now. And it includes basically we're doing bi weekly calls where we get on in on a zoom call and talk about one concept in the business that we're doing or maybe people are having problems with. We JV with students is I don't JV with the public because I just don't have the bandwidth to JV with the public. So I hold it specifically for my students. They get direct access to me and my team. So like if they're having a problem recording a notice of interest in Washington, Josh would get on a zoom call with them and show them exactly how to record that notice of venture As you know, we help them find realtors in the virtual markets. We have a network of realtors who are innovation friendly. And so we just kind of hold you by the hand as you're doing these deals. And also we teach you how to do nationwide PPC, because that's our main flow of leads, or lead generation is PPC, I run my own PPC, I brought in house over a year ago, I got tired by getting raped by these third party servicing companies who would charge me an arm and a leg. And so there's a lot of good companies out there, don't get me wrong, there are good companies out there, I just had a lot of bad luck. So I brought it in house and learned it myself. So the cost is, the cost is $9,997, one time, and then 197 a month. But if you reach out to me directly, we can work out a discount, if they've mentioned you guys on this, you know, they saw on this call, we could figure out a discount for them. So if there's any way you guys can get involved with Corey, man, I'm telling you, you're gonna make the money back so quickly. I mean, literally, it takes you one deal to make your money back. So a lot of money on the table by not using these strategies trust for three and a half years, I've been cutting my teeth, and it's been a lots of pain and suffering. If I had if I just got started, and I knew then and what's your offering, and I jump in in 10 seconds. So I am going to pick up innovation training course. And yeah, hope we hope to roll into that mastermind soon. Yeah. And what's a JV one or two with your like, if you're in the group, like, literally, you'll get your concept around? How do these deals, how to transact these deals. And I saw somebody just asked, I don't know who that was about transaction coordination company. Okay, that's a great question. You got to beware of title companies and you do innovations, they will kill your deals. Oh, my God. They just don't understand the concept. Right. And so some of them do, but not. I mean, literally, my my guy would be here in the office, we get a new deal in a market and he would be calling 1015 20 title companies trying to find one that would do a Novation deal for us. I mean, sometimes you call a title company, these rural areas, and they'll even know what the Simon is. I mean, it's where are you been for the last 20 years? Haven't you heard of Sean Terry and Cody Sperber? Like how do you map a little assignment. So you got to be careful. So now we use a transactional company that's nationwide, they have a Rolodex of all the title companies that are Novation friendly, they also like sub to friendly, seller financing friendly and they conduct all RTC work on the back end. And it actually and I have a link, if anybody wants to know who they are, you can go to the vision closings.com. And you can sign up with those guys. And they will conduct all your innovation deals, any creative financing deals, and, of course, wholesaling too, but they will scout out the best title company in that market. And they have great relationships and they handle all the backend paperwork, they they communicate with your seller, and keep your seller on track to make sure that they're getting to the closing table, they contact with your buyer, to make sure everything is working the correct. I mean, I used to have a lady in here. When we last year at my peak, I had 64 deals on the board and her only job was to call every seller every week and check in with them while I was able to let her go once I hired, you know, the transactional company because they check in with the sellers all the time for me and help keep everything on basically on the rails. Yeah, that's another sticking point. I'm getting to now. So that's an amazing resource again, and thank you, we'll as you scale yeah, as you scale man, I just I'm trying to outsource as much stuff as possible. Because TC work is not my strong point. Like I can't read title abstract. It's like a foreign language man. It's like what am I supposed to do here? How do I fix the problem? Yeah, that's one thing you will do in this business as you will burn your time doing menial tasks that you should be giving to somebody else anyway, so you can kind of do your one thing Yep 120% dude and this year I've been on a mission to outsource and gold virtual and cut overhead down That is my mission for 2022 and we're doing a good job doing it can you give us like that that you know 360 foot view so for the last year in office, you know five acquisitions, three dispositions TC the file handler this was my whole team I literally went at the end of last year I cleaned house and now I hire all v mainly VAs I have two people in house I have my lead dispositions and junior disposition because of those patients and because we're so innovation heavy there you have to make sure all the brokers are handled the appraisal because the the inspections I don't that to a VA yet that might happen in the future. But like all my acquisition agents are virtual, they're out in Egypt and so literally they're they're locking up our deals for I got an eye for us that I have a closer the key to this if you gotta have a sales manager badass closer, who is having like consistent training with Every single day, tracking their KPIs listening to their calls or role playing with them. And if you have someone who could do this, you really could create a massive virtual acquisition team. And that's what our mission, we have seven now, my goals by the end of the year, I want to have 10 that are high performing. So we have seven, two of them are still in training. So we're constantly it's been, it's, it's taken time, man, because we're about six, seven months in. And I would say the first two or three months, you know, there was no contract from them. It was just all training. So it's, it's been a lot of work. But I mean, my overhead man, last year, my overhead at my peak was about $110,000 a month. And I think last time I checked there, I was 24,000. That's incredible. I, man, when you have high overhead and you have those bad months, you just can't sleep at night. I just got, you know, coming in to all this, you know, uncertainty in the market. I'm like, I gotta lean up like crazy. Yeah, words of wisdom. And that's something that we all need to be thinking about right now. I think a lot of people are still like, both the sellers and wholesalers are real estate investors. They're, they're having a state of denial, but it's gonna hit you like a ton of bricks. If you're not preparing that runway right now. Oh, boy. Yeah, don't be the last one shot with your pants down because you're not gonna make it through. That's for sure. In this market, you talked about pitching seller, finance Novations. Any other tips for somebody to make sure that have something to eat at Christmas time this year? Well, I mean, kind of what we obviously have a multiple tools in a tool belt. I mean, there's so many of them out there, you got lease options, right? You got seller finance, you have sub two, then you got Novations. You know, besides all the different strategies, then, you know, like we just talked about cutting that overhead way down. So that way, if you have a couple bad months, it's not going to hurt your pocketbook too hard. Right? So that's the other big key man, we are also flirting with the idea of creating a real estate fund. It's not for sure, yeah, it'd be a probably a reg D or reg CF. I haven't decided on that yet. We had a conversation earlier today where we could raise money and start buying these properties when the recession really takes place. I mean, we're talking about you know, pennies on the dollar compared to the last bull cycle. I mean, we could buy all these properties up, cashflow them, and then in four or five years exit on the next Bull Run, man, a lot of wealth be built there. So that's just something that we're in talks of right now. It's nothing that solid. But yeah, man, just creative financing. Novations get that overhead down. Really watch your marketing cost. Yeah. So what is a quote that is yours or somebody else's that you resonate with? Oh, I will not die without my best intentions. That's probably one of my favorite quotes. I came up with that one night. I will not die without my best intentions in this life. Yeah, I'll tell you one of the what best book I've read though that has plenty of I mean, I can't even recite all of them is Outwitting the Devil with Napoleon Hill is probably one of the best books I've ever read as far as like mindset quotes and and you know, getting, you know, in that entrepreneural like frame of mind, man, it's amazing. That was a that's a good one man. I was like, asked that question. Because you always get like varying answers, and you never know what you're gonna get. And it's just like, right? Can you give me time to think about it either, like, one of my favorite quote? Yeah. It's a good it's a good curveball to throw. So what we're let's let's kind of let's kind of back up if, if somebody is struggling, and is needs to get that next deal, is Novations thing to learn? Absolutely, man. It's, like I said, it's just another tool in the tool belt. If you're not, you know, they're struggling, depends on why they're struggling. are they struggling? Because they don't, they're not good at marketing. And they're having problems with marketing skills, you know, trying to get PPC going, maybe not doing the cold calling the right way. Like what's, where's the struggle coming from? You got to pinpoint Is it because they have bad sales skills they need to work on that is because it's always it's always a factor, right? You got to figure out what it is that you why you're struggling like getting that deal, or is it maybe because you know, you are getting a lot of leads, but you know, some of them are just too close to the retail Novations will help you get more deals, but I'll tell you what, Novations isn't it's not a crutch for poor or poor negotiation skills. Okay, you still want to get in there and do your best job negotiating this property down and anchoring them with cash because, I mean, we're a for profit business. We're not this is we're not doing it for free. Right. And when I taught this to my team, when I first learned about innovation is that's what they were doing. They were given like the seller, their first asking price, right? And locking all these deals. was up like crazy high and it's like, no, that's not what Novations is for it's for we monetize more dead leads. So if there need prices too much, that's okay. Maybe the mortgage payoff is more than we can offer in cash, or can we capitalize a bigger spread in the deal using an elevation model? That's what I really liked Novations for is where we can capture a bigger spread not because we're monetizing the dead leads are both good, but I'd rather catch up bigger spreads on my current deals, which you can with Novations Yeah, go ahead anything I feel like that's exactly what my personal business is missing right now man we're missing we just need one more like air or you know, I mean, in our quiver, and it's just we're just get to that point right now we're we're running good. We're firing on all cylinders. But yeah, well now when you like spray on us, and we'll get the nitrous oxide into the system now and I think Yeah, cuz you guys are already in the wholesaling you're already doing the seller financing. I mean, this is a great little, you know, extra piece in your tool belt that's gonna just, you know, absolutely do wonders for you. Another thing when when, if you guys are fixing and flipping and I wouldn't recommend that right now in this market. Because we just stopped I usually keep three or five going at a time but Novations when it when the fix and flip market comes back around. It's great because you don't have no carrying costs while you're fixing up the property. And you could sell to an FHA buyer right out of the gate because they can use it sees a seasoning rule from the seller. But 90 Day flip seasoning rule Yeah. Okay, that's jam right there. Do that is gold right there. I don't know if anybody heard that. But you need to like rewind that and hear that again. Okay, it's something that nobody thinks about. It's another hurdle right there overcome, right? Exactly. All you got to come out of your rehab money, but I mean, no carrying costs, no money down and sell to an FHA buyer, man, we've done we've done a few of them. Wow, that's huge, bro. Okay. So are you doing seller finance deals. We, we've done a few, not a whole bunch. I think last year, we might have did like three or four. We are pitching them now or coming back into our web. We're really training the team on it. Because remember, I talked about we just brought in the whole new acquisition team, the first thing we did was we met to make sure they understand wholesaling how to pitch cash. Now there are pitching Novation. So now they're getting Novation deals. Now the next step is now we're going to teach them how to pitch seller financing to. So that is the next step that we're that we're working on building but we were in house last year. Yeah, we were pitching seller financing, then can we can you do a hybrid deal? So I'm not I'm trying to piece this together my brain? Can you do a Novation deal where you can take the property, find an end buyer and then create some kind of like Node or rap or anything? Is that still good opportunity? Or does that kind of dissolve your opportunity to create like a seller finance situation? Is Yeah, I mean, just long as you're putting yourself in the middle with a wrap or something I can imagine. Yeah. Let's see. Let's say you gotta give yourself like 100 grand, and then you end up finding a buyer that you know, well, I guess it kind of doesn't make sense because you're gonna find a buyer for 131 50 You're gonna get cashed out at closing anyway, right? You can ask how they're closing Correct. I'm just dreaming just trying to make some. Hey, that's how you you might create some I mean, you know? Yeah, I always look for that opportunity to do like a wrap look for seller finance situations where the end buyer covers your down payment and that kind of stuff. So you just create a note for nothing right? out of thin air. My sister and I we joke about it all she's my main admin. So she's like my stunt double. And we always joke in everything we're like, Why did how did we get why are we getting payments? It wasn't our property. I love it, man. Love it. Oh man. No, as I say, where can people find you online? And we're gonna put innovation nation up the website up again. And I hope people got a ton of value from this and I appreciate you coming on man. Where can people find you online on Instagram? Because that's place obviously it's Facebook and Instagram, Facebook, it's Cory Geary and the Instagram my handle is up duck Cory Gary, so easy to remember. And if you're interested in the mastermind and want a discount for this call, reach out DM me, it's me the answers my DMs. So you can DM me and it won't be a VA answering those so we can talk Okay, yeah, I'm in Korea zombies. Man. Korea is a real deal. He's crushing it. Obviously, he's always innovating and evolving with the markets as things shift. So we talked about this on a call yesterday that we did is grab a mentor. If you don't know what you're doing in this business. It'll save you a lot of money. But grab yourself a mentor somebody like like Cory, who's a real deal was killing it. It'll save you a lot of time and it will make you a lot of money and it'll now help you navigate through this storm. We're about to hit. Yep, absolutely. Which is a good thing. This is gonna be a blessing in the long run. I promise you. I'm excited about it, man. Honestly, I'm actually having sellers texting us back now like hey, Can we talk about your offer like what happens not a chance in hell, but my opportunity is going to come at a table and you want to be able to capitalize, right? And that's an all assets, real estate, crypto, the stocks beat the man. And when the government I was talking to Sean about this the other day, when the government announces that we're going to do quantitative easing, that is your signal that we have reached the bottom of the market, quantitative easing, and that is just sitting there, go out and buy everything you possibly can buy, whatever the crypto stocks real estate, I don't care what it is, go out and buy it. That's, that's another gem do something that a lot of people don't understand is that when these crashes hit, people become very, very wealthy, or they're, they already are wealthy, they become even wealthier. So to position yourself right historically, for this market, you need to have a whole ton of cash saved up and I would say 99% of our audience does not have that. So by using strategies that Corey is teaching right now, you can still capitalize at the same rate that somebody who started a lot of well to prepare for this season. So think about that, guys, you know, 1000 bucks, join the mastermind netted 9997 To change your freakin life. Trust me. Absolutely. Absolutely. So yeah. Cool. Thanks for coming on. We appreciate you coming on. Forever. Listen to us. Go like subscribe, check out our YouTube channel, check out our podcast app.com. And we're always here providing the content. I appreciate Cory for coming on appreciate Anthony for helping us out on this one. And for all for everybody. Thank you. Thanks for listening. Thanks for Hope you enjoyed the episode. Thanks Cory.

Daniel Esteban Martinez Profile Photo

Daniel Esteban Martinez

Host/ Ceo/ Speaker

I have been an entrepreneur since 2018. I come from a regular home just like most people. My dad worked on the roads in the Chicago area for over 30 years. He always taught me to work with my brain, instead of my body. Your body can only take so much abuse. I learned so much from my father. He always pushed me to work smarter and not harder.

I have owned and operated a trucking business for 2 years. I started learning real estate in 2019. Fell into the Data & Skiptracing business in 2020. My partner Anthony & I started Hivemind in 2021.

I have done a ton of different jobs coming up from painting, to door-to-door sales, telemarketing, truck driving, and loading trailers. What I learned most is that I want to stay in the digital business space. The leverage you can have delivering digital products to the marketplace can yield limitless possibilites.

I started The List Guys in 2020. It is a data and skiptracing service. We provide seller and buyers list nationwide. My clients have been getting great results and I am proud to help people killing it.

I started the Hive in 2021 with my partner Anthony Gaona. It is a real estate and business mastermind. It also comes with a all in one CRM, that can host unlimited websites and users.

Starting the Hivemind has been an amazing journey so far. Seeing one of our users make his 6 figure month in June 2021 leveraging our software, I know there will be plenty more to come!

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Anthony Gaona

Host/ Ceo/ Speaker

Hi! I am Anthony Gaona.
I’ve been in digital marketing for almost 15 years.I grew up in construction working for my dad when I was only 12 years old. Normally we had a ton of work or no work at all so a lot of my free time was spent learning how to generate leads.

It didn’t take very long for me to master online marketing because I became absolutely obsessed with it. For the last 15 years I’ve been generating construction based leads. At first I was running the projects myself. This led to sub-contracting all of the excess projects and eventually wholesaling the leads off to other construction companies.

One day I was preparing to build a single family residence for myself. In mid December, 2018, a simple YouTube search led me to the term wholesaling and the rest is history. The plan was to use my construction background to start flipping houses. By January 1st of 2019 I launched several marketing campaigns both on and offline for real estate seller leads.

Within about 4-5 weeks I had my first real estate contract locked up. It didn’t take long for me get a land lead where I made almost a full year’s pay on a single transaction. This came from a land lead and that forever changed my life.

I ran low volume larger land deals for the first two years of my real estate career. Like anyone who has been in real estate investing for an extended period of time, I started thinking about scaling my business.

Instead of deciding to vertically integrated and start hiring I imagined a model where I would teach my real estate investing methods to others. This would free up my personal bandwidth and allow for unlimited large scale transactions.

Currently our operations are expanding globally. The goal is to identify one person per major US Market that we can build a team around and drive traffic to so we can close high volume transactions together.

You can learn more about our vision and join our free mastermind by joining hivemind CRM on Facebook and all social channels

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Corey Geary

Entrepreneur

7-Figure Nationwide Wholesaler and Novation Deal maker using PPC as our main marketing strategy. We teach people how to mirror our business model via our mastermind.