My 6 month mentor program:
A few Case Study Video Interviews with my Students:
Read Transcript for “One Year Later ‘Automation Now Brings In 40 Deals A Year Working Less Than 20 Hours'”
Tom: I’m Tom Parris. I’m from a suburb in the Dallas, Texas area. Well, soon after I got in the program from Joe, I did everything that he said and the young lady responded, and said, ‘I want this house.’ And we said, ‘Okay, that’s great.’ And we met her at one of my branch offices at Jack in the Box. My normal office is upstairs in my house. So her parents were there. They looked like nice people. The girl was 22 or 23. We did a rent to own. Since I was new at it, I guess maybe I didn’t express myself with the owners of the house as well as I should or didn’t show the confidence that I needed. I met with the owners and said, ‘Everything’s going to be fine. Here’s what we do. Here’s the methods that we use.’ So they signed the papers, the girl moved in, and about 3 months later, I called them back and said, ‘How’s everything going?’ They said, ‘Oh, oh, terrible.’ And I said, ‘What happened?’ They said, ‘We drove up and the police were raiding the house.’ This girl had been living with her friends. They had a meth lab in their house.’ And I said, ‘Wow; didn’t see that coming at all.’ They said, ‘We didn’t either, based on what she looked like and everything but she got in with the wrong crowd.’ But needless to say, I haven’t done any more houses for them. I got to keep the lease option fee and I paid them a little bit to help with the cleanup and everything. You stub your toe on the first one and then another one came and another one came and so now, we’re doing about 90% using the for rent method, and I’m keeping about 1 in 10 for myself.
Tom: I’m building a portfolio, and this year, I’m going to be adding more properties, doing them on a subject-to and then doing the rent to own to get the income from them. We’re doing very well right now with the for rent method, but I’m going to start owning more properties of my own to get that residual income.
Tom: With the first deal, and only two weeks or something like that, at that time, we were not automated at all. We didn’t have the Push Button Method or the list builder or anything of that sort, so it was mostly a lot of telephone calling from the newspaper in the classified ads. That was $3,000 on that first one. I think I only spent probably 2 to 3 hours, maybe a little bit more, on that one because I drove out to meet the sellers at the office. They wanted that reassurance that everything was going to be okay. Turns out it wasn’t. So it was about $1,000 per hour when you add everything up.
Tom: It wasn’t hard work at all. I had done some of these lease options in the past, just not as detailed as the way Joe does it. But it wasn’t hard work at all. It was fun and I’ve been doing it for three of four months now.
Tom: It wouldn’t be where it is today if we didn’t use the full automation. In fact, Joe says that I may automate more than anybody. So we couldn’t live without it.
Tom: We use the list builder to go out and find the sellers. I sit down in the Dallas area, and if we’re fortunate we can do about 500 emails a week. And I break it up into different nights so it doesn’t all hit at once. Then we get the responses from the sellers there, and I’ll either email them back, send them to the buyer webpage, or I’ll talk to them on the telephone. We get a lot of give and take there and then we do get the property, we’ve got the Contactor Plus, part of the Push Button Method, and so that way we send it out to the 1500 people on the list. So basically it’s a give and take all the time with buyers and sellers. And we never stop marketing.
Tom: We were talking about doubling our money that we did last year. Last year, we started out with one or two, but with the automation its making it easier, so now we’re doing 3 or 4 a month, and we’d like to do somewhere between 5 to 8 a month now. We normally get anywhere from $3,000 to $5,000 on every lease option.
Tom: I want to have more fun and make more money and work a little bit less I guess. But I do have some plans this year. We’re going to outsource more and maybe use virtual assistants to do some of the work for us. I enjoy doing some of it, so it’s not hard work. But to outsource it more, have more people doing the little things that it wastes my time to do, and I think I make more money doing that too. What I’ve done here in the last year is that with a lot of these lease options, I’m buying and selling them through my Roth IRA, so that’ll be tax free income. I don’t get any of the money. I use equity trust, and I sign for them on behalf of my IRA, send them the paperwork, and then when we get the lease option fee, then it’s sent directly to them. That way it’s going into that account.
Tom: I am still working now so that’s one of the things where automation is key . I don’t spend any time at the office doing this type of work. It’s all done for me. I do a little bit but I’m not taking away from my job because it’s all done by email or automation. You can set it up to send it out whenever you want to that way. So I don’t know what I’m going to do with all that spare time once I quit.
Tom: I can’t say enough about Joe Crump and his methods. He’s a great teacher. He’s very unselfish when it comes to giving the time and the expertise, so invest in the program. Instead of spending $10,000 to $20,000 and trying another way and then losing all that money and kind of stubbing your toe, go with somebody and a program that works. I highly recommend it. Again, we’re doing three or four while I’m working, so the sky’s the limit if I do quit my job.
Tom: Just trust in Joe and the automated techniques that he has because it’ll work for you. Again, you’ll forget about some of these buyers and sellers, but they’re on an automated list, an auto responder, and you’ll get a call about a week later, and say, ‘We’re ready to give you our house to rent to own.’ So that’s always a nice surprise when you pick up a voicemail message or you’re on the internet and you get an email that says, ‘Yes, you can have our house.’ It does the work for you while you’re asleep.
Tom: How’s the work with the new partner? It wasn’t until last July that I met Chuck Chaffin. He’s in the Dallas area, and Dallas is a huge geographic area – it’s about 40 miles wide. So I was limiting myself to about half of that because it’s just not worth it to drive an hour and a half to put up a sign that the city may pull up 2 hours later or something of that sort. So Chuck became interested in Joe’s program but had not joined the mentoring program yet. And he said, ‘Well, can I help you with some of the properties on this side of town?’ And I said, ‘Let’s give that a try.’ And he did such a good job and then one thing led to another, and now he’s doing everything on that side of town. We’ve doubled our universe to where we can acquire the properties or do the rent to own, so he’s just been a tremendous to our business. He also shares my growth plans as well, so we’re going to keep adding on. Maybe both of us can get in the system before too long.