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- [00:02]
Justin
This episode is brought to you by Progressive Insurance. You chose to hit play on this podcast today. Smart Choice. Progressive loves to help people make smart choices. That's why they offer a tool called Auto Quote Explorer that allows you to compare your Progressive car insurance quote with rates from other companies so you save time on the research and can enjoy savings when you choose the best rate for you. Give it a try after this episode@progressive.com Progressive Casualty Insurance Company and affiliates not available in all states or situations. Prices vary based on how you buy. The kind of burgers you get today tells you a lot about yourself. You're either someone who settles for sad, same old, same old burgers or you're at a Carl's Jr obsessed with a tangy OG Western bacon cheeseburger demanding a house made guacamole loaded guac bacon fired up for the insanely hot El Diablo. We're craving a classic char world famous star. Give into your flavor cravings. Get your mouth to Carl's Jr. Good Burger.
- [01:14]
Sharad
Just be consistent and be okay with doing the hard work. Be okay with doing the hard work because the reward is going to be 100% worth it. Like what you mentioned, it's like the grind that you do like, it's, it's just don't focus on the sexy stuff. Like don't focus on, you know, yes, of course you want to get to like seven figure, you know, but you can only get there by putting in the hard work. And if I could just give you one word to get to that, it's be consistent. Just be consistent. And that you'll be amazing. You'll be amazed at how much progress you will do in like six months. If you're consistently doing small steps day in, day out.
- [01:53]
Justin
What is up the science flipping family? Welcome back to another incredible podcast. This guest is one of my fan favorite favorites. He himself is a big time real estate investor. But today he and I are going to give the cheat code to you for what the seven figure real estate investors are doing right now. So if you want the cheat code, you want to stay on for this entire episode as Sherrod from Resimpli is here. What is going on brother?
- [02:23]
Sharad
Hey Justin, thank you for having me, man. Excited about being on the podcast. Congratulations on all the success you've had with the podcast. It's incredible.
- [02:31]
Justin
You know what it is man? I have great guests like you. We come with the heat, we come with the energy, we come with the great tactics and what people can take away. So listen, as I just said, you Have a lot of clients that are seven figure a year earners and we are going to go give the goods away to those that are trying to break into that space. So let's start right away about what are some things that you are seeing right now that the big time earners are doing that is creating this deal flow, the lead flow, the revenue flow, what are they doing?
- [03:06]
Sharad
Absolutely, man. So if I had to distill everything in one word, I would say it's consistent, consistent, consistent, consistent. So they are consistent with what marketing channel they want to follow. Like the biggest difference we notice an investor that are just getting started versus the ones that are consistently doing deals is the newer investor will go in and try one marketing channel for a couple of months, give up, go to the second one, do it for a couple of months, give up, go to the third. And they just keep jumping from one marketing channel to another. The ones that are doing consistent deal flow, like I'm talking About investor doing four or plus deals, we have some guys that are doing 30, 35 deals a month every month. The number one thing that they're doing is they're doing consistent marketing. And out of the consistent market, if I had to pick one that most of the investors are using, consistent investors using is I would say direct mail. Direct mail tends to be the marketing channel that we notice. Whether it may not be their primary marketing channel, but they're doing some sort of direct mail. Either it could be their primary or they're mailing to a niche list that they have, but they go in with the expectation that they have to commit to it for six months before they can make a decision on it. Whether that marketing channel worked or not. And they're thinking long term, they're not thinking short term, they're not going. It's not that they're not living like paycheck to paycheck, like so to speak. If put it in different contexts, they're going in and saying, okay, I'm going to commit to this marketing channel for six months and then after that. So once they commit to that for six months, they have leads coming in, then they have a consistent follow up method. Right? I mean, it's a cliche. Fortune is in the follow up. But it is so, so true. You could make so much money just by being consistent. And then people sometimes get hung up on, hey, what should I say? It's no rocket science, just be simple, follow up. Just follow up with the seller every month and say, hey Mr. Seller, are you still looking to sell your house? I just want you to know I'm still interested. Some variation of that, just letting the seller know that you're still interested in buying the property and then let the follow up do its magic. And once you have that, once you do that for six months and you consistently follow up, it's almost impossible not to get a deal after six months. The only reason you would not get a deal after six months either you're marketing to a wrong list, you have a wrong marketing list that you're mailing out to or doing some marketing to, or you have too small of a sample size, like you picked a list of 10 people to mail to or market to. That would be the only reason. And then you're not consistently following it. If you do, if you're consistent, if you have a good sample size of marketing list and you consistently market to them, follow up with them. It's almost impossible not to get a deal out of out of that list.
- [05:52]
Justin
If you're like me in the real estate game, you know how wild things can get. Managing leads, marketing, sales operation, it's a constant hustle. But let me tell you about something that has been a game changer for thousands of investors out there. Resimpli. It's an all in one software that truly is a lifesaver for anyone serious about the real estate investing game. What's crazy about Resimpli is how much it packs into one platform. You've got absolutely everything you'll need from list stacking, driving for dollars, automated drip campaigns, a cold calling dialer, a full phone system, email management speed to lead buyer management, automated task systems, accounting features, literally the whole nine yards. It's like they built the powerhouse software just for us investors. No more juggling different subscriptions and trying to integrate a million different tools. So if you're anything like me, and if you are ready to streamline your investing business and close more deals, you've got to check out Resimpli. Head over to resimpli.com pod that is R E S I M P L I.com pod and get 50% off your first month. Oh, and they're also throwing in a free 30 day trial, so jump on while you can. Trust me, you don't want to miss this. What type of lists are the big boys using right now to find those deals?
- [07:34]
Sharad
I would say the number one list is absentee. Absentee with equity. If you do that, absentee with equity. So just to get more specific, 30% or more equity or unknown equity. And then five years or longer ownership or unknown ownership. If you had no idea what list to start with, I would say start out with that and then depending on how big the market you're in, if let's say you get 10,000 people on your list and it's too big of a list, then I would layer in, then I would stack it with vacant and then see what list size you feel comfortable with. But if you have no idea which one to start with, I would say start with absentee with equity and five years of ownership or more.
- [08:19]
Justin
That's great. One of the things and just kind of my two cents is building out a business. Recently we've been targeting a lot more of the financial need, right. And so recently tax delinquent, notice the defaults, reverse mortgages, things of that nature. Because what's happening in the economy real time right now is people are starting to finally see the pain. I think it's been a long time that the government or the news has been talking recession, recession, recession. But I think we're here in the sense of people feeling financial pain. And so I have now recently started targeting more of the financial indicators as much as anything else. And what that has led to us is we've actually found more people that we've been able to help stop foreclosure. Right. Like today one of my team members stopped a woman that is going to foreclosure on October 14th and we were able to stop it and get the deal done so she didn't have to go to foreclosure. And so I would also add into this, you know, if you're going to do after T, I love it. I would also pain, financial pain, it is out there, you know, and it's, it's not an easy subject for everybody but finding people that need us, like the saying always goes, right? You get paid on the value that you provide. And so.
- [09:40]
Sharad
One caveat that, yeah one, you're 100% right. One caveat, small caveat that I just. Sometimes it can be people that like you of course like have tons and tons of experience. Sometimes it can be tricky when you're dealing with a time sensitive homeowner and you give them fault. So that's where I would suggest you only have to be careful as that you get this lead and then someone is going through, has this absolute, you know, deadline of like two weeks. In your case, like you're going to come through but a new investor, it could be a little bit tricky. So in that I would agree with, definitely partner up with someone like you or someone more experience who can help you get to the finish line on the first deal. But the way I look at in my market is if I do absentee with high equity, it's going to cover some of the subset financial pains because for us they have to have equity in our market. But what you're saying definitely if someone has the skillset, the knowledge of going after the niche list, like the financial pain, you know, like the more time sensitive the list is, pre foreclosure tax dealing, where they're going to lose their house, like the cost of not taking an action is pretty life changing for them. That is an absolute amazing list to go after. But just the only caveat will be it can be something tricky for newbie investors to go after that because these are some difficult conversation like someone has had death in the family or they're going to lose their house or they're, you know, like because of foreclosure or tax.
- [11:06]
Justin
There's no doubt about it. There's no doubt. I would say it definitely doesn't lean itself into like a newer investor trying to go get their first deal. There's no doubt.
- [11:15]
Sharad
Yeah.
- [11:15]
Justin
Now you yourself are a big investor and you've been a big investor for quite some time, but you're also the founder of Resimpli. And so I wanted to talk a little bit about Resimpli because I think there's a connective tissue between what you can see, your clients at Resimpli and their success model and what you're doing and why people want to look into Resimpli. So let's talk about Resempli a little bit as a over like a 30,000 foot view of what it does.
- [11:41]
Sharad
Yeah, absolutely. So brief, simply if you think about it, helps you on the prospecting side, you know, to generate leads using like cold calling, website driving for dollar list stacking and everything that you can imagine. And then it helps you once you have those prospects back convert into leads, then you can manage those leads, those motivated sellers through our CRM. You know, we have full phone system, email, everything that you can imagine to use in a software. And then once you have the property in the contract, then you can also dispo those deals using our, you know, managing your buyer's list, sending bulk email product text to your buyers list and also have a dispo website and then we also have a bookkeeping and accounting feature built in. I used to be an accountant before I left my accounting job to do real estate full time. So you can do your manager KPIs. And that's, that's another thing, you know, not to I go off track is that's what some of the bigger investors are doing. They're very, very fanatical about tracking their KPIs and making data driven decisions in their business.
- [12:41]
Justin
Absolutely. And so what are you seeing that your clients at re simply all the things, what is the most useful tool that they're kind of utilizing for their business?
- [12:50]
Sharad
I think it's, it's like being consistent, like you know, going back to like consistently marketing. And then once you have those leads coming in, right, whether, let's say if you're a single person solopreneur and you're starting out, I cannot, I cannot stress enough how incredibly important it is when you talk to a seller, right. If you have a team, you want to listen into the sales call that your team had. But even if you're just by yourself and you do a call with the seller, you know, the calls that he called it and everything, go back and listen to the call. You will be amazed how much you realize after like you, you may have this call, you're like, man, that went so well. But you go back and you listen to that call, you'll be like, oh my God, I can't believe I didn't ask this question. I can't believe the seller mentioned this and completely, you know, skipped over that. So that is some things that bigger teams are doing, they're listening to that, they're auditing their calls that go well. They're auditing the calls that do not go well. So they're always working on process to improve things in their business. Like what else can they do? For example, if a sales call goes really well, they start using that as a template. Okay, this is how we want all the sales call to. If something doesn't go well, then they look into, okay, what did not go well, what can we change about that? You know, and then they look at, and then the most important thing is they look at the KPIs make decision based on the numbers. So if you're doing direct mail, right, and you're sending, you have a big list of people that you're marketing. Let's just go back to the example, Justin, that you were giving, that you have a pre foreclosure left and a tax delinquent list. Let's say what a lot of investors would do is they would combine those lists, very common, and they will send out a mail piece, right? They will use a tracking number and Then you have leads start coming in and I know this is good, I close my deal. Let's say you spend, just for hypothetical, you spend thousand dollars on it and you make 10,000. Like this is incredible, I spent a dollar, I made 10x. But the question is, let's say you're scaling this business. The question is, was it the pre foreclosure list that made you money or was it that tax delinquent list? If you're doing it a small scale, it may not matter. But as you start scaling your business, these are some very, very important numbers that you need to know is which marketing channel, which specific campaign in the marketing channel is working. So now going back to the example, let's say you now separate these two pre foreclosure list and tax delinquent list in two separate tracking numbers. And you notice that you got bunch of leads from tax delinquent, way more leads than pre foreclosure. But you only got like three or four leads from pre. But they were all high quality leads and you were able to convert one. And then you do this over two, three cycles and like you, you will start seeing a trend, you will start noticing for. I'm just using this as an example that maybe tax link relates. You get a lot more lead, but they're just garbage leads, you know, people that are not interested. But pre foreclosure you get a lot less leads. But these are high quality leads, super motivated leads. And that's where you can make a decision after three, four months of doing this is like, hey, you know what, I don't even need to market to the tax delinquent list because these are like tire kickers, not serious and not, you know, worth the, the time and effort. And I'm just going to double down on the pre foreclosure list and that's where you start making better decisions. So now imagine the money that you cut out of your business, not marketing to pre, the tax delinquent list, all of that money you can double down on your pre foreclosure list. And if you can keep up the roi, the all the money that you save goes directly into your net profit. Like that's the thing that people have to think about is like of course you want to increase your top line number. You know, you want to get to like high six figures, seven figure or even eight figure in revenue. But that should not come at the expense of low net profit. So just to put some context around, you know, give some numbers, you should expect at least 3x on your marketing dollars. So every dollar that you put in, you should expect at least 3x to come back. So if you spend thousand or you should minimum, minimum expect to make 3x, 3x to 5x is good. Anything over 5x, you're doing great. Just keep doubling down on it. So now if you have different marketing channel, let's say you're doing direct mail versus PPC. And direct mail, you're noticing 6x PPC only noting 4x. Take some of the money from PPC and allocate it to direct mail. If you can keep up with that 6x then just keep putting more and more money into that. So that's one thing that you want to look at is your roi. That's the most important number is, I mean more or less real estate investors put in marketing business. So you want to make sure you the highest ROI you can get on your marketing. That's where you're going to start seeing higher net profit. That and then just for some context, the net profit number, whether or not you're paying yourself a salary or not factor in a number. If you were to replace yourself from the business, what salary you would want to pay yourself. And after that you should look for at least 25% net profit. So if you're making million dollars top line, then you should at least expect 250,000 for the business to make, not including your salary. Your salary should, you should deduct your salary and then 25% after that 25 to 40 is good. Anything below 25, you're either spending too much on marketing or you're spending too much on payroll. Those will be the two main reasons. And then above 40% your goal, you're running an absolutely incredibly lean business. Just keep doing more of what you're doing just to put some numbers around, you know, some of the bigger investors, what they're doing.
- [17:55]
Justin
Yeah, I think that's really important to understand for a newbie, right. Is they want to get to where the bigger investors are, they want to make that kind of money, they want to have that deal flow. But I would encourage you as someone who I've coached thousands of newbies and the thing that I impress upon all newbies is while you might want to have a goal to get to where those guys are, where you like where I am, and buying apartments and all these things, you need to go start doing the thing that no one sees you do. That is not sexy on Instagram. That is not about the cars, the vacations or whatever. It's the outbound Dialing, it's the outbound, direct mailing, it's the, you know, door knocking. It's the thing that you need to go do first. Don't overly romanticize the big paydays, the million dollar years. Yes, you need to get there. But to get there, it starts with the grunt work. And this is the breakdown in Toronto. I'd love to hear, as someone who has a product that centralizes from across a newbie all the way to a seven figure a year earner, you know the challenge I have as an educator is getting them to do the thing. Yeah, right.
- [19:07]
Sharad
Justin, what's the list? Like 60 seconds. If someone would just go back and listen to that and do that, that's all they need. It's just doing the grunt work, you know, it's like doing the work that's not sexy. That's where the money is like looking. I, I guarantee like people, most of the people, they don't even look at their financials at all during the year. They just send it to their accountant. If you did that, like I guarantee anyone listening to the. If you looked at your financial once a month, your P and L statement and your balance sheet once a month, there's. I guarantee you're going to make at least 10, 15% more just by looking at that and reviewing it. I guarantee. Yeah, but people don't want to do that because it's the boring stuff. But that's where you make the money. It's doing the boring stuff.
- [19:50]
Justin
Well, in Shroud, you and I should put together some sort of financial like class or workshop. Because part of it is they don't want to do it is because they don't know how, they don't know what they're looking for. They like, I'll be honest, I've coached thousands of people to start in real estate investment to go get their first deal or second deal, third deal. A lot of them don't even know what a P L is. They don't even know what it stands for. Yeah, they wouldn't know the first thing. Now I don't criticize them. That's actually our schools. That's our school's issue. Like our education space. The formal education is garbage, right? For people to be able to go to college and not know what a P and L is, regardless of them being an English major or not. Yeah, they should have some business acumen, right? At some level. But I mean, I'm not joking. Maybe you and I need to create like a financial literacy course.
- [20:37]
Sharad
Just.
- [20:38]
Justin
I agree just to Say guys, if you're going to do this business, treat it like a business from the day one, meaning account for the real cost of your business. Even if you're just starting and you're. Let's say you pull a list from Resimpli. By the way, go to resembly.com it is an incredible software, big promotion for Rashad and like I can't speak enough to resemble. So go to resembly.com, check it out. Right now the point I'm making is even if you pull a list of let's just say reverse mortgages or notice a default and you door knock, well, your gas and your mileage of that car is an expense to the company. You need to understand that because that is a tax write off. And I'm all about helping people earn a lot of money. But now I'm at a phase. I want you to earn a lot of money, but I want you to keep the money you earn, right? I want you to actually just have to go pay it. That's.
- [21:29]
Sharad
Oh my God. That's what I preach all the time. I ask investor, would you rather have a million dollar top line business but you're only making like 50, 200,000 which is true for a lot of investors or would you rather have 7, $800,000 business but you're netting 250, $300,000? I would any day take that business, less headache, lean business. But people just go about, about the top line number for some reason because it's the vanity metrics. It's a vanity metric, of course. Like it's, it's just like that's what people feel like, oh, I can put it on my Instagram, you know, I can just talk about this. But you got to look at how much money at the end of the day you got into the business for freedom of time and money, right? How much money you're making from the business. If you're just showing million dollar top line revenue but you don't have anything to take home, what's the point of running the business? It's not even a business. That's a job that you've created for yourself and you're not making any money. So that's one thing. Like across the board, people that are doing consistent deals, that's something they look at. They're very, very strict about looking at their financial, looking at their data, looking at their KPI is like knowing exactly what's making money. It's like, it's like for example, put in a different context like someone who wants to lose weight, right? They're 300 pounds, they want to get to 200 pounds so they know the goal is to get, you know, lose hundred pounds. There are two variables. You go to gym, you work out and then you eat healthy. There's like that's it. There's just two variables. If you're not going from 300, 200 pounds, one of those variables is off. Or both of the variables is either you're not going to gym or you're not eating healthy. You could be going to the gym, but you're having a McDonald's after every workout. It's not going to help you. So you, it's the same thing in business. Like you consistently market, consistently follow up and consistently track your KPIs and just keep reiterating the process. You're going to have such a profitable business. It's incredible. Like I flip about 20, 25 houses a year and I have not looked at any of my flips. I've not stepped foot in, into any of my flips in last four or five years. But we build systems and processes. I make all decision based on the data on the KPI and that's what we notice across the board. Investors that are successful by doing that, they're focusing on hey, how much net profit does the business have? It should not. The top line revenue should not come at the expense of the net profit for the business. If they're, if they want to make extra hundred thousand top line then they at least they want to keep their net profit percentage 25 to 30%. Otherwise that's not worth it. What's the point of making extra hundred thousand dollars when you're spending extra hundred thousand dollars? I would rather not do that because then your other costs in the business are going to go up.
- [24:01]
Justin
Yeah, and Sharad, you said something that's so important is people, they have this timeframe of when they expect the result. And so I have five laws of success and a lot of the listeners have heard me say this time and time again. But the fifth law of success is remove your time expectation on the result. And if you can do that and just keep doing the thing that gets the result, then to your point, shrod, you're going to win. You're going to actually 100 that day that you're going to look up and say oh my God, I just made seven figures or I built the business or I could quit my job or whatever the thing is. But I see this all the time and I'm sure You do too. They get so caught up and let me go get a deal in 30 days. Sure. I'm going to go pull a list from resembling and I'm going to go door knock or cold call or text, and then they don't get a deal in 30 days and they basically just check out. Like, I'm sure you can even measure their usability on resembling and be like 100%.
- [24:56]
Sharad
Yeah.
- [24:56]
Justin
After, after 30 days they stopped logging in.
- [24:58]
Sharad
They do, yeah. It happens so much. And it pains me that like, people are not consistent enough. And I think they said like to what you said, Justin, is so true. They said wrong expectation. They hear someone, you know, getting their first unit, 30 days, 60 days, and that's the, that's the milestone that they set for themselves. If they don't get it in 30 days, they're like, it doesn't work. It's like going back to the example of losing weight. Like someone who wants to go from 300, 200 pounds, like, someone may have done it in three months or six months, but they were like in the gym for, you know, two times every day, like 10 times a week. They were just like, they went on this crazy diet. And you have to ask yourself, like, am I willing to do that? Like, or am I okay, like losing the same weight in a year, you know, Then you have to decide for yourself. Just because someone got a deal in 30 days, you know, you don't know what marketing they did, how much time and effort that they put in, versus, like, if you only have like a couple of hours, you know, during the work day and then sometime on the weekend, then you got to set your expectation. Maybe you give yourself six months to do that and you're bringing some of the systems and process and like someone to answer calls for you, some, you know, a VA to do some of that thing. People don't do that. They look at like the best case scenario what someone else has done, and that's what they want. They don't see all the effort that went into and all the grind that went into it for someone to get that result, but they just, they just want the result. They want to skip over all the effort that went into that just happened so, so often. And it's just like, you see these people come in, try for 30 days, cancel, and then two months later they'll come back again, try for another 30 days, and then it just. But unless you change the input, like, unless you commit to being consistent for like three to six months and have a plan that you're going to follow like it's not going to work out. You may get lucky. Every now and then you just happen to call someone who is just motivated or you happen to send a direct mail to someone who just happened to be motivated and you may get lucky, but it's not going to happen very often.
- [26:50]
Justin
Exactly. Now, Sharad, you're flipping about 25 homes a year and you're fixing, flipping them.
- [26:56]
Sharad
Fixing.
- [26:56]
Justin
What are you seeing right now in the fix and flip world, the market, your listings, Are things still moving for you because you have a right price point? What are you seeing right now?
- [27:05]
Sharad
Yeah, I mean things are still moving because we're at the right price point. So I live in San Diego area, but I flip right out to the Chicago market in Indiana, Northwest Indiana for anyone that's familiar. So for us, if the house is under like 250 or lower, it definitely moves fairly quickly if it's a decent finishes. Because what happens is like these houses qualify for FHA. For someone, let's just say who's buying a $200,000 house, you know, they really have to come out of pocket about seven, $8,000, you know, three and a half percent down and then we can give them some credit on, on the buying, on the buying side. So they really are coming out of pocket like 3, $4,000 and their mortgage is going to be if you know, as pretty close to the rent, if not lower than what they would pay for the same house to rent that house. So for those kind of houses, it's really moving very fast. It's the houses. Once you start getting a little, at least in our market, once you start getting a little bit higher up in price, houses don't qualify for fha. That's where we notice, you know, it could take a little bit of time, but we're hyper focused on that 250k resale price or below. That's like 150 to 250. That's our sweet spot. That's where we notice how it's removing fast. If they can qualify for fha, they have decent finishes, then that's where we don't have any issues selling.
- [28:23]
Justin
Yeah, I like that price point for a couple reasons. For me, I like that price point because it's a good flip and can be a good rental if you need it.
- [28:29]
Sharad
Exactly right, exactly.
- [28:30]
Justin
So if the market really changes, you're like, all right, well I'm just going to hold this one. It's not sexy and I may not be making a big payday but you're not going to lose your ass either. Like, no one went bankrupt buying $150,000 home. Like it just doesn't happen. Right. And so I like it. I teach that I say you want to stay in a price point where you have two exits. So everything I buy, I need to have two exits. The margins need to be good enough for me to flip it and to rent it, including the apartments I buy. Right. So when I buy an apartment, I want to make sure I can stabilize it and turn it in a way that if I decided to sell it within like a 24 month window, which isn't favorable for tax reasons, but if I did that, there would be margin there to flip it. Right? Same idea.
- [29:11]
Sharad
Absolutely. Absolutely.
- [29:13]
Justin
Yeah.
- [29:13]
Sharad
So I also own a turnkey business and that's one of the things we look at. If for some reason we're not able to sell to a homeowner, do we have an exit of selling it to a turnkey? Provide a turnkey buyer, or worst case, can I hold it and still cash flow, Maybe not as much as I would have liked, but it's still, it's not costing me money. And then I could just hold it for some time until the market turns and then sell it. But we have not run into that issue. I mean, if you're in that price point where if it's fha buyer can buy the house and then it's a good area, then you should not have a problem selling the house.
- [29:47]
Justin
What. And so are you primarily just using direct mail?
- [29:51]
Sharad
Direct mail and PPC and paper lead. But I would say if I pick one marketing channel, it's the direct mail that tends to be the most consistent for us.
- [30:00]
Justin
And how much do you typically use?
- [30:03]
Sharad
We spend about, we send about 1312 to 13,000 mail pieces every six weeks.
- [30:11]
Justin
Nice. And you know, I've done a lot, I mean, tens of millions of dollars in direct mail or tens of millions of mail pieces. And what I found is a lot of people walked away from it when PPC became big. And I'm starting to think, and maybe you could tell me that the callback ratio is starting to pick up again because it got so overly saturated. Our call ratio went like a 1%. Callback ratio went down to like a quarter of 1%. Right. Is it starting to crawl back up because everyone's doing ppl and PPC and cold calling and not doing direct mail?
- [30:47]
Sharad
Yeah, I mean it's, I would say the quality of leads has been good. It's not always the quantity of Leads might not be that good, but the quality of leads is good. It's become less competitive indirect mail, like for two reasons. One, people are shifting more to inbound marketing, like what you said, ppc, ppl. And also as you see more regulations with texting and cold calling, it's becoming a little more, a little less competitive on the direct mail side. You know, people that used to previously do cold calling and texting, direct mail is a little bit more expensive marketing channel to get into. The cost has gone up like the postage cost went up again like last month. So it's a little bit more expensive, which is good for experienced investors because then there's less competition. And homeowners were previously, you know, bombarded with cold calls and especially text. And as that has died down now, you know, people have a little bit more bandwidth to for more outbound marketing like direct mail. And then PPC and PPL are also consistent. But again, if I really, really had to pick one marketing channel that I would do, I would pick personally, I would pick direct mail just based on our marketing and then looking at other investors in our database now, how many.
- [32:00]
Justin
How many clients do you have on recently?
- [32:03]
Sharad
We have over 1600 companies.
- [32:06]
Justin
Nice. And so with all that kind of intel and data. Right. Would you suggest a newer investor, fix and flip, wholesale, buy and hold, all of the above. Where would you kind of suggest a newer investor should be starting?
- [32:24]
Sharad
I would say wholesale would be, I mean if you have some knowledge and experience of managing rehab, then fix and flip. And if you can get the money, then fix and flip would definitely give you the best chance of making money. But if not, like generally looking at newer investors, they don't have the resources, they don't have the skill set of managing rehab. I would say doing wholesaling would be the right way, but with the long term goal of building passive income like buying more buy and hold. So if you're doing wholesaling or doing fix and flip, like I would set a goal off for every 10 houses you wholesale or fix and flip, keep one for yourself. So you just continuously building your passive income. But if you're starting out wholesale, is what I would say people would start I should start out with because you don't need a lot of money in it and then you can easily partner up with an investor who can help you kind of get to the finish line, a couple of initial deals so you can, you know, work with the coach. I mean that's one thing. If I could go back, one thing I would change is work With a coach, I think that would speed up my so many years of, like, you know, things that I went through building my own systems and processing. I think that would just help my learning curve go much, much faster. So if I could go back, that's the one thing I would change, is, like, work with a coach and then commit to the systems and processes that they have and things that are working, rather than making my own mistake. If I can learn from mistakes of other people like yourself who've already done certain things and, you know, hey, this is what works, is it? What doesn't work, it will save me so many, like, months and years of, like, hassle that I had to go through to figure that out. So that's what. That's what I would change and just, like, be consistent with it and then have someone to ask questions to, like, you know, work at the code, join masterminds, or do those sort of things.
- [34:15]
Justin
Yeah, I agree 100%. I have a rather large budget still. Still. Today, I invest in coaching and masterminds, and we're a part of a mastermind together. Right? I mean, I believe in coaching at such a high level. Yes, I'm a coach. But for all those out there that are trying to do it themselves, I'll tell you one thing. You need to respect your time more, because tomorrow's not guaranteed, next week's not guaranteed, next month. You need to get to the head of the line. You need to get to the. You know, I use Disney World as a great example. General admission ticket versus the VIP ticket. One you get to save a couple bucks, you ride four rides. The other, you spend a little bit more money, but you ride 10 rides. What would you rather do? You're thinking, world, you want to ride 10 rides. Right? So I. I just. I'm such a firm believer. I appreciate you bringing that up because there's so many people who, oh, I can go to YouTube University and figure it out, or. Justin, I listen to your podcast. I know enough. It's not coaching, right? It's not really someone coaching you.
- [35:12]
Sharad
Yeah, I was literally before this podcast, I was on a call with my business coach, and I pay a lot of money to him, but, man, every time I do a call with it, I feel like, this is so worth it. Like, this is so, so worth it. Like, the things that I would, like, spend months figuring out, he can help me resolve in an hour. It just. I'm like, this feels so good after the call. It just gives me so much energy to be able to do that. And the mastermind we're in. Like, you go there, you come out of it so energized, so full of ideas. It's incredible. It's like hard to explain, like the value that you get out of it until you actually do it. But once you do and you're like, man, how is it running my life, my business without ever doing this? It's just like you have to kind of experience it and then there's no way you will ever go back. There's this. It's impossible to ever go back.
- [35:59]
Justin
That's exactly right. Gerard, what, what last words would you say? Like, first of all, I want everyone to go to resimpli.com. this is a platform that I just believe, regardless of you being a newbie or a seven figure year earner, a big team or just a solopreneur, this service is top notch. It is top notch for the space of real estate investing. Gerard is a real estate investor. It was built from a real estate investor he founded this company is built for us by us type of thing. Right. And so I appreciate you bringing something so good and so much value to our world like Resimpli. Dude, thank you for that. And everyone needs to go to resembly.com now and check it out and, and just get it right. It is phenomenal. But what party words do you have for us, Sharad?
- [36:42]
Sharad
Man, I would say, like, if you take away anything from, you know, everything Justin, you and I talked about, I would say, like, just be consistent and you know, be okay with doing the hard work. Be okay with doing the hard work because the reward is going to be 100% worth it. Like what you mentioned, it's like the grind that you do. Like, it's, it's just don't focus on the sexy stuff. Like, don't focus on, you know, yes, of course you want to get to like seven figure, you know, but you can only get there by putting in the hard work. And if I could just give you one word to get to that, it's be consistent. Just be consistent. And that you'll be amazing. You'll be amazed at how much progress you will do in like six months if you're consistently doing small steps day in, day out.
- [37:28]
Justin
Yep, a hundred percent. If you don't expect the result, then you'll stay consistent because you're going to do it as fast as you can.
- [37:36]
Sharad
Absolutely.
- [37:36]
Justin
Well, Sharad, I appreciate you showing up. Thank you for creating such a massively impactful system for us real estate investors with Resimpli.com go check out Resimply.com make sure you get that. And if you enjoyed anything here and you took something from it, make sure you share this episode with at least two of your friends. I'll see you guys on the next episode.
- [37:56]
Sharad
Thank you. Thanks.
- [38:04]
Justin
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Sharad
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Justin
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- [39:01]
Sharad
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- [39:03]
Justin
Learn more at Capella. Edu. Hey everybody, I'm Trevor Sikoma, host of the PFF NFL show, here to tell you what you can find on all of our shows throughout the week. On Mondays we have the Grade Release show where myself and Dalton Wasserman break down every single game that you just saw in the NFL. On Tuesdays we have the Quarterback Breakdown with Seth Galena. On Wednesdays we've got the Rookie Review with John Ledyard and the preview for the upcoming week in the NFL. So make sure you are subscribed to the PFF NFL Show. Wherever you get your podcasts.