Tom Parris – Dallas, Texas
I believe the best way to learn the business of real estate investing is to hear how others have done it.
When these interviews were recorded, I asked Tom, the interviewer, to ask questions that would help the viewer see how these folks got started.
I wanted to hear the struggles, the successes and a clear path and explanation of what they had to do to make these deals happen.
I did NOT want them to be a bunch of people telling you how wonderful Joe Crump was. I wanted content, examples and real life experiences.
I hope we succeeded.
My 6 month mentor program:
A few Case Study Video Interviews with my Students:
2 to 3 Deals a Month Average $10,000 Per Deal
Tom: My name is Tom Parris. I’m from the Dallas, Texas, area. And I first started working with Joe probably 2008, right about the time when the financial crisis was going on with Wall Street.
Tom: Through the internet, I guess. I had done some lease options before through other courses I’d attended or seen online, and I saw Joe’s material and it seemed to really hit. He and I communicated the same way and I liked what he said. So I joined up and joined the mentoring program at that time.
Tom: Probably took about two or three weeks. I found an owner. We did it a lot differently back then. The technology is so much more expansive today. In those days, so we would go through the craigslist and do the ads one by one on craigslist and I found some owners and they were rather reluctant to do it, but, so I had to actually go to their offices and explain to them, and I probably didn’t know as, you know, much then as I know now. So I had to explain to them how the program would work, but with the material that Joe had given us, you know, in the manual, they said yes, and we got the first house, probably about two or three weeks, and I think I only made $2,500 on that one. It was a, not as it, it wasn’t as expensive as some of the other houses we’d done.
Tom: Start to finish, no more than five, probably. Did have to take a trip, I was still working at the time, so I manufactured an excuse with my employer to go out and give them the pitch. Might have done it at lunch hour, but probably about five, six hours, something like that. So, that’s what – $400 an hour, I guess?
Tom: Oh, gosh, there’s been so many. We’ve done so many of them, but the most recent on was rather nice is that it’s very important is, the people will learn your buyer’s list. Keep your buyer’s list current and I, there was a gentleman who wanted to get house A and he was not successful there. We lease optioned that to someone else, then we picked up another house in a different area of the Dallas/Ft. Worth area and when I sent it out to the list, he needed to get into a home right away with his family and it was a, it’s a $360,000 sale, that’s the lease option price, and so we did that in like, five days and got a real nice commission check out of it that way. So, that’s the most recent one that was good, but there have been several others that way where we flip, you know, turned them around pretty quickly.
Tom: Well, it just, gosh, I can’t remember now, but we’ve had a real good period here the last couple of months is, that, going back to the buyer’s list, we did the house, it’s on Amberly, and there was a couple that’s moving here from South Carolina. There’s a lot of jobs now in the Dallas/Ft. Worth area and they’re coming to be part of that. And so they missed out on the house on Amberly, but they said we still want to get a house from you. So I picked up another house and they’re in South Carolina so they couldn’t view the home, but they’re moving here and they need to get something for them and their children. So I just took a video. I went out to the house and, it’s vacant, and did a video on my cell phone and it turns out it’s about nine-and-a-half minutes, you know, the walk through. I went through all the areas of the home, and as it turns out, one of their sons is confined to a wheel chair, so they needed a room downstairs or someplace where he could, you know, on hardwood floors, and that’s what this house did have. And so I showed that on the video, but I couldn’t send them the video. Nine-and-a-half minutes is just too big to send over a phone. So I’m not very big on Facebook, but I loaded it up on Facebook, had them join me as a friend, and then they saw it, the house, just through this video on Facebook and we did the lease option on it and we’re supposed to close next Tuesday. This was an owner financing, I’m sorry, not lease option. This was owner financing, but, without really having to show the house to too many people we did that. And then, going back to the earlier story, this is the one that George wanted and he couldn’t get and then when we got the third house, so we just kind of piggy-backed from House 1 to House 2 to House 3. So keep your list current. Always let them know what you’re doing that way, and the leads may come very easily.
Tom: The average on the deal, it’s changed. Dallas, the Dallas/Ft. Worth market has been very hot. The last three or four years, the prices have really gone up. We used to make about $5,000 to $6,000 per deal. Now on these last two it’s more in the $10,000, $12,000 range. What I typically do and have done for years is, whatever the price on the lease options that we agree with the owner, we add 3.5% when we’re doing it for another owner. And that will later cover, if the people do exercise the option to buy the home, that would be their FHA down payment. So they pay us first, when the get into the house, and then they’ll get credit for it if they ever make it to closing. So, that’s with the increase in prices going up then that makes our 3.5% a little bit bigger. So I’m all in favor of that. And I like the better, the prettier, houses the better. So it’s nice. Meet nice people that way.
Tom: Yeah, we did, like I say, Dallas has just been red hot. We’ve got so many employers, national employers, that are moving in. And we were doing two, three a month, probably until about three years ago, and then the homeowners didn’t think they needed us because Dallas, it’s the closest thing I can compare to California real estate, where you put a house on the market on a Tuesday and Wednesday you have an offer on it that’s above the asking price that you wanted. So, for a while, for a couple of years, nobody really needed us, or didn’t seem to. So we were just doing more owner financing, subject to’s, during that period. But now in the past couple of months, things have settled down a little bit and we’re getting more and more responses. And then doing one or two a month these days. So that’s always good for us.
Tom: Well, I’d like to get more subject to’s, more, you know, recurring income, where they’re alwa- it’s always nice to get a check as I explained just a moment ago. But, get those checks quick and easy, but I’d like a little more long term income where I build my portfolio a little bit more.
Tom: Oh, it’s made it a lot easier, a lot easier, you know, a lot more fun. And especially this last month, I had, you know, three of them that we closed here. But when I first started with Joe I was still working so I was kind of doing the real estate under the radar so my boss wouldn’t find out. But with the technology, it was rather easy. I don’t think they every knew I was doing it that way. But, because of the, you know, the teachings that Joe gives us I was able to quit my job a few years ago. So now I just work out of my house and spend, you know, ten to fifteen hours a week, whatever it might be, because the Autoresponder and the Automarketer make it a lot easier where you just get the information out there and people respond to you. And believe me, there’s nothing greater than turning on your computer in the morning or coming back from lunch and somebody has filled out a lease option agreement memo, an owner, has filled one out and said I want you to market my house for me. So that’s always good to go. Good when you come back from lunch and find one of those.
Tom: Well, I was about the oldest guy there. I’d been with the same company for twenty-four years and I was, the business, the real estate business with Joe was getting bigger and bigger and, yeah, I just felt it was time and it was a good choice because now I can just devote a hundred percent of my time to the real estate end of it.
Tom: Oh, well, I’m an avid softball player, so now I can go out and play softball. We have a morning league and a night league and I go to tournaments and everything. So, now the real estate and the money that makes allows me to do that. And then the automation does, too, because if I wanted to, typically, you know, I can set up an email campaign or a text campaign with Joe’s system and then go out and play softball and come back two or three hours later and there’s twenty-two responses or thirty responses there. So it just makes, it’s like hiring another employee is really what it is. So it allows me to play a little bit more.
Tom: Well, it doesn’t take a lot get started with Joe’s system. He is, you know, he does charge money and charges a pretty good fee for the mentoring program, but it’s worth it. I made that money back in the first 90 to 120 days and it’s just been, you know, gravy since then. But again, if you follow his directions, the principles that he teaches are very, very sound, he’s always changing. I mentioned earlier we used, we’d used to do it one way, then we had another system for attracting leads through craigslist and now we’ve got another one coming up today, a new version coming out. But just follow what he says, because he knows what he’s talking about and I’ve never known anybody that didn’t follow what he was doing that did not have some success. So, don’t try to do it your way – do it his way – because it’s a proven method.
Tom: No, I just can’t say enough about Joe, because again, he changed my life and, you know, I, when I first saw his material online, I said, oh, this, it’s good, I trusted him, and sure enough, he’s never steered me wrong on any of the teaching’s that he’s given us.