JLM Blog | Episode 32: How To Create A Wholesaling Empire And Passive Income

Real Estate News, Updates, and Tips

Multifamily Real Estate Agency San Diego 

Podcast Episode by Jason Lee – Premiered February 17, 2022

What You’ll Learn in the Podcast:

  • Information about Zack’s background and how his father’s rough life as a child led him to instill hard work and family life into Zack.
  • How Zack first made the transition into real estate and saw how he could make passive income from it. 
  • How Zack found enough growth to go from $50k to over $1m in a couple years.
  • The advantage Zack found in going to look at public records to find the next great deal of his.
  • The other tactics Zack used to be able to reach out to potential sellers of houses, houses that could be fixed up to make more income.
  • A look at the success of Zack’s students and how they quickly were able to get great passive income through Zack’s marketing techniques. 
  • Some of the mistakes Zack made at the beginning of his business and the lessons he can impart from them now. 
  • A look at the marketing techniques Zack uses to generate leads for his wholesaling.
  • How self limiting beliefs can get in the way of anyone trying to be very successful at a challenging business.

 Summary and Highlights:

Why Listen To Zack Boothe

Zack Boothe is not your typical family man investing in real estate. He is a real estate wholesaler. His job consists in finding discounted opportunities and passing them on for a finder’s fee. But he did not start his firm until 2017, after five years of traditional real estate investing.

Before real estate, Zack had a window cleaning business, But after ten years of small margins and a lot of frustration, he looked for an alternative route to success. Shortly after, he bought a duplex, renting the other side of his property.

He struggled with his limiting beliefs yet managed to get an explosive success thanks to mentors like Tom Krol, founder of Wholesaling Inc. Tom Krol introduced him to a strategy that ensures a great ROI like JLM Mulifamily Real Estate. And in under eight months, Zack made his first $113K.

 

 

Finding The Right Action Steps

Zach’s success grew to over $1 million in real estate revenue in just a few years. And he links his success to the right action steps he took. At first, Zach aimed to achieve passive income through renting. But he quickly hit obstacles that prevented him from buying more and scaling his business.

So, he started selling the purchase contract after finding out about wholesaling. He also got some ideas from the book “Multi-family millions” by Di David Lindahl. Soon, he realized that he needed to find discounted opportunities to sell and be good at marketing to attract leads.

But in the beginning, Zach had no money to invest. So he relied on public records in local courthouses to find landlords that wanted to sell their problematic properties—because of evictions or other legal issues. Of course, when the public records went online for everybody to access them, Zach deals dried up. So, he switched to flipping houses.

Zach started a journal to keep track of his actions. He also taught the marketing system he used to generate half a million dollars. Coaching is how he perfected each step to improve his wholesaling business further.

 

 

The Importance Of A Positive Mindset And Precise Action Plan

Zach made many mistakes, and one of his major takeaways is to select your mentors and consultants wisely. In essence, hiring collaborators and specialists can speed up your success. But some mentors only sell information and concepts without practical knowledge. And some specialists may not be keen to teach you their way because they only want the money.

Judging how much a mentor or specialist is available beyond the course or service they sell is highly recommendable to find good people.

Taking ownership of your marketing strategy and learning process is necessary. And for that to happen, you need a positive mindset. Without it, you cannot believe in your ability to learn and improve. You can delegate some work, but you should never rely on a digital agency to do all the marketing for you, as an illustration. Why? Because they might provide valuable skills, but they do not have your objective. So, you have to be present to a degree and promptly change direction when necessary.

      Episode 32: How To Create A Wholesaling Empire And Passive Income

      Watch the Podcast | Read the Transcript

      Transcript

      00:00 

      [Intro] Welcome to the multi-family millionaire podcast. The show that interviews multi-millionaire real estate investors and top producers in the real estate industry. If you’re looking to create passive income and achieve financial freedom so that you can do what you want whenever you want, you’re in the right place. Our goal is to simplify and make real estate investing easy for you. For more information, you can find us at www.JLM.realestate.

       

      00:30 

      Jason Lee: All right, everyone. Welcome back to the multi-family millionaire podcast. Today. I have Zachary Boothe with us. He’s the host of the driving for dollars mastery podcast, and he’s a very successful real estate investor and wholesaler, and I’m very excited to interview him today. Zach, Good to have you, how are you doing?

       

      00:49 

      Zach Boothe: Doing well. Thanks for having me, man.

       

      00:51 

      Jason Lee: Of course. The pleasure’s all mine. To kind of kick off the show. Would you mind just giving the audience a quick intro of who you are and what you do?

       

      01:00 

      Zach Boothe: Yeah, so personally I’m a family man. I got two little kiddos, one seven, one’s three. Sweet wife, we’ve been married 10 years. Professionally I’m you know, I do real estate wholesaling, right? So, I basically find discounted opportunities and pass them on for a finder’s fee. You know, in the multi-family space, multi-family syndications just on a smaller scale. And I started doing that full time in 2017. But I’ve been dabbling in real estate since 2012. When I 17 years old though I started my first business. I started window cleaning business. I grew that for a decade and from the outside looking in, I was somewhat successful, but ultimately it was window cleaning and the bigger I got the less my profit margins were.

      And I had three trucks and 13 employees when I walked away from it, and I was so burn out so sick of it and real estate was that escape. And I’m so glad I did. It’s completely changed my life. So yeah, I went from window cleaning to real estate investing, kind of a weird transition nothing to do with the other, but it’s been an incredible experience.

       

      02:13 

      Jason Lee: Very cool. Why did you initially want to get into real estate and how’d you learn about it?

       

      02:18 

      Zach Boothe: Yeah, so I grew up working, so my family doesn’t have a lot of money. You know, my grandfather is a gambler, an alcoholic and major issues, and my father broke that cycle. You know, he borrowed or begged for food from his neighbors to feed his younger siblings when he was a real young teenager, rough upbringing. And he grew up working really hard became real religious and wanted to have a different life for his family. Married my mom, who’s a sweet girl from a religious family. And you know, I have four siblings and he raised us all. It was his way or the highway an amazing man taught us to have a work ethic, to be respectful, to have a belief. There’s something more than just living and dying and have a lot of love and respect. But you know, we we’d go to school, and we’d come home, we work. You know, from the time I was 11, I worked, we do yard care maintenance. 

      So, when I was 14 years old, I was mowing lawns with my dad after his day job and me after school. And I remember thinking like, why are we mowing lawns? Like, why do we not have a mansion? Why do we not have people mowing our lawns? And I started asking my dad these questions around money and why and why our lives look different than theirs. And he’s like, son, I don’t know, ask my rich friend. And he told me his name was Clint. And I was like, I know Clint, he drives a beat-up truck. I was like, dad, he’s poor. He doesn’t have money. He’s like, no, he’s just cheap son. He’s got a lot of money. And so, I called Clint and I was like, Clint, like, how do I make money?

      Like, why are we poor? And he gave me the book, rich dad, poor dad when I was 14 years old. I read that book and my little brain started working and I knew that I wanted to get into it. And so, when I was 17, I you know, when I was 15, I walked away from the family business, started doing my own thing. I worked for a contractor I flipped, not flipped, but I framed houses did finished carpentry. I ended up working in a wood mill, I mean, handcrafted cheese. I did taxidermy. Went in Nova Scotia, Canada, my junior year, summer, and worked there. So, I had all this work experience and I wanted to go into business for myself. 

      So, I got into the window cleaning thing, but then I was like, man, like, I’m just trading time for money. It’s more than I was making, but it’s still this grind. And then I read I started listening to books and podcasts while I was out washing windows. And I was like, oh, like I need to do something different. So, in 2012, I bought my first house. I bought a duplex actually. So, my wife and I lived in one side and rented the other and tried the house hacking thing and it worked out great. My monthly payment was only like 450 bucks. And I rented the one side for like 650, 750, somewhere around there. And I was like, man, like, this is incredible. I want to do more. 

      But then I hit all these roadblocks of down payment requirements of 25% not being a primary residence and my debt-to-income ratio. And I had all these obstacles to do more. And so, but like that first taste, I was like, dude, this is way easier money. This is going to grow in value over time. I’m getting passive income. Like I want to be in this space. So, like, that’s kind of what got me there is that, that first duplex in house hacking, like that’s what really got me excited to do more of it.

       

      05:29 

      Jason Lee: Yeah. I mean, sounds like from what you’re saying, that you’ve always been at work of your entire life. And I feel like in real estate, if you have that work ethic to want to be successful and you want to change your life, I feel like anyone can really make it happen. It sounds like you’re one of those, you know, success stories. 

       

      05:44 

      Zach Boothe: Well, it wasn’t always easy. I made a lot of mistakes, you know, I always used to tell myself I had this limiting belief that I was stupid. And so, I just had to work really hard. And it was because I struggled in school, you know, I wasn’t a great student, and I still don’t feel like I’m the smartest person. I sometimes struggle to retain information. And I worked really hard and made mistakes and tried to figure things out on my own. And really the big, like explosive success that I had was once I found the right people to help and guide me and give me the correct action steps to take advantage of that work ethic. Cause there’s a lot of people that have a really good work ethic and I’m sure, you know, some I’m sure the listeners know a bunch and they probably don’t make more than $50,000 a year. 

       

      And so, the work ethic combined with the correct action steps is so, so important. And, you know, my mentor that really made a difference in my life was Tom Kroll. And I hired Tom Kroll to help me. And he taught me a strategy where I could find discounted opportunities and pass them on for a profit. Right. And that’s mostly in the single family and small multi-family space. And in the first year, or first eight months, I made like 113 grand the next year, a half a million the year after that 1.2 million. And it was, it was just this explosive success because my work ethic was channeled on the right action steps, and it made all the difference.

       

      07:10 

      Jason Lee: That’s fantastic. Let’s talk about that growth a little bit. How did you kind of explode, you know, from year one to year three to making, you know, over a million a year?

       

      07:20 

      Zach Boothe: Yeah. So, I learned something really interesting. So, when I first got into this space, I wanted to buy rentals. I wanted to have passive income. I bought that first duplex, and then I hit all these obstacles to buying more into scaling. It was like, well, first off, I didn’t come for money. I was broke. I didn’t have any track record of knowing what I was doing. So, no one would gimme private money. I just like, it was just one barrier after the other. So, I heard about this idea of wholesaling, where I could find discounted opportunities and pass them on for finder’s fee. I didn’t have to get debt. Didn’t have to buy the houses. I basically just sold the purchase contract.  

      So, I was like, okay, I’m going to do that. And the reason I really like that idea is I was reading a book it’s called multi-family millions. And there’s a paragraph in there. And my mind was like, ah, aha, like, this is why I’m struggling. He said, real estate investing is marketing. And our product is real estate. If you don’t get that in between your two ears, you won’t be in business for long. So, it’s a very arguable point that real estate or any other business, if you don’t have leads, if you don’t have good clients coming to you in the first place, you won’t be in business. Doesn’t matter if you’re listing properties, you know, as an agent or a broker, it doesn’t matter if you’re flipping house. It doesn’t matter if you’re doing giant multi-family syndications, you’ve got to have leads. You got to have discounted opportunities. Because then there’s no point for private money for, you know, leveraging debt. There’s no point for selling contracts. You have nothing unless you have that to start.

      Zach Boothe: So, what real estate wholesaling allowed me to do was to put in processes and systems to find discounted opportunities and get good at marketing. cause then what I realized is like, okay, I could have cash. I could have cash flow. I could have deals coming in. Cause I’d sell off the ones that I didn’t want to keep. And then I could cherry pick my favorites and I could build a rental portfolio. I could do whatever I wanted and have all this cash as well. So, I could give a good life to my family, but also grow in the way that I wanted to grow. 

      And so, I learned about this process wholesaling and then the first eight months I made like a hundred thousand and the next two months after that, I actually never did a deal. I didn’t do a deal in like two months. And so, I’m scrambling. I had walked away from my window cleaning business. It was, I had to feed my two kids. I was like, how am I going to do this? It was my one kid at that time. And I was like, how am I, how am I going to do this? How am I going to take care of my family? And you know, what I was doing to find the first a hundred thousand dollars is I was going to the city and the city has public records that you can get in the courthouses and the recorder’s office. And so, I was getting people that filed for eviction. 

      So, the people that go in and file evictions, a lot of times they might be tired Landlords, they’re done with the property, right. They know they could sell it for more. If they deal with the tenants and kick them out and fix it up and list it, they’d make more. But a lot of times they’ll trade convenience for price because they don’t want to deal with it. Right? So, I was pulling those lists and a few other lists, the probate list and some of these public records and reaching out to see if they wanted a sale. Well, the state got together and took all of these different cities and put the list on a state website. So, it became really easy to access these lists. You didn’t have to go fight with the secretary that told you, you couldn’t have the list, because it wasn’t public record, even though it was, and then talk to the city attorney and deal with all this garbage just to get the list. 

      So that barrier of entry was gone. So now everyone’s marketing list, every flipper, every buy and hold investor. And all of a sudden, my deal’s dried up, cause everyone’s doing what I was doing. And I’m like, crap, what do I do? How do I keep my business going? And so, I realized that when people want to sell their house at a discount it’s cause the properties are thorn in their side. They inherited the house grandma, or her mom was a hoarder and the brothers, a crack head living in the back room. They just don’t want to deal with it. And so, if the house is a thorn in their side, well they’re not going to take care of general maintenance. The grass is going to be long. There’s going to be peeling paint. There’s you know, there might be a tarp on the roof or just leaks, right? I’ve found houses with full holes in the roof and, and it’s like, okay, well that’s what I got to find. I got to find physical signs of neglect cause I’m trying to find people that I can serve and help by making them a cash offer and they don’t have to deal with it.

      So, I started driving around and adding those addresses, it’s known as driving for dollars, right? You drive around, you identify those houses and reach out and see if they want to sell. So, I did this the traditional way where you write down the addresses and look them up on county records and you know, go out and market to them. And then I found an app that you could just push a button and it uploads all the seller’s information. You know, the address, the phone number, everything just by driving through pushing a button on the app and it’ll upload it in your Excel spreadsheet. Then I’m able to add 30 to a hundred properties an hour. And so, in that first year we’re using this system, we’re making tons of money. I started putting a team in place. We make a half a million dollars that year.

      So, I’m pinching myself, right? Cause I’m broke window cleaner to making this kind of money. I was able to cherry pick a couple rentals. I was like, this is incredible. Like this is everything that I dreamed of doing one day. And I felt super grateful. And then I had an experience where that really took me off to the next level and really helped me. So, I did a self-help journal called living your best year ever by Darren Hardy. And in there the first a hundred pages, it helps you create three big goals and talks about what you have to do and who you have to be to accomplish those goals. And then the rest of it, you know, day by day journal. One of my three big goals is I wanted to generate a million dollars the next year. Had no idea how, I felt like I tapped out my full potential as a human being at half a million, you know, I was pinching myself and but in there it said, whatever you’re trying to receive, you have to give it away.

      So, if you want love, you give love. If you want money, you give money. So, it’s like, okay, well I got to give away a million dollars if I want to make a million. So, I reached out to, I didn’t have to give, but I talked to my wife was like, how do we do this? I want to take it serious. So, I reached out to 10 people that I knew [13:08 inaudible] other programs. I’m like, hey, I’m going to teach the marketing system that I just used to make a half a million. I’m going to teach it to you. And I’m going to put a million dollars in 10 people’s pockets. So, I brought on 10 students basically and I started teaching them. 

       

      It was incredible dude. Like I learned so much the more I taught, the more I realized how much, I didn’t know, I got so many questions.

      And I was like, man, I never even thought of that. Like one of my students is like, Zach, I’m not figuring out how to make sure that when someone texts my postcard phone number, you know, the phone number on the tracking on the marketing piece, I’m not getting those text messages to my CRM. And I started scratching my head. I was like, I haven’t either. I had hundreds of thousands of dollars of leads just sitting there that I didn’t even know that I had. 

      Cause I was such a mess. Like my business was a mess and by teaching and serving it really, really perfected my marketing system and my business. And I fell in love with coaching. So, then I was obsessed with wanting to help these people. And it forced me to start putting people in place to automate the processes. But at the end of that year, my wholesaling business did 1.2, $1.2 million. So, I hit my goal of a million dollars, but the coolest thing is I help most students make a million. And one of my first students, Scott [14:19 inaudible], his first deal, $113,000 selling a piece of paper, right. He walked away from his corporate job. He’s in Portland, Oregon. He now has you know, a full business, two acquisition managers that are doing the deals. It’s very passive for him making well over a half a million dollars a year. 

      My very first student, I signed up Scott or no, sorry. Michael Mc Leash in Greenville, South Carolina. He now is, has his business fully automated in Greenville. He lives in Colorado traveling around in his Jeep with his family. And he texted me in September, so two and a half years later. And he is like, I have now made over a million dollars from your marketing system. So, my very first student hit that goal that I had set. So, it’s just been, it’s been extremely fulfilling cause making the money’s incredible taking care of my family. Like that was a whole purpose, but I found a whole another purpose beyond that. I found this purpose of serving and helping and like getting that fulfillment and that joy from doing my first deal over and over and over and over with these students. 

      And so, you know, now I have my podcasts on my YouTube channel and I’m teaching and helping people get started in this space. Cause it’s really hard to, to be successful if you can’t take a little bit of money and a little bit of something and turning it into much more quickly. Right. And so real estate wholesaling has done that for me and so many of my other students.

       

      15:40 

      Jason Lee: That’s fantastic. It’s a great story. And the fact that you get the joy of helping others kind of succeed in the same business, it’s really cool. For someone who’s listening and wants to get into wholesaling, how would someone start and kind of what kind of path would they have to take in order to succeed?

       

      15:58 

      Zach Boothe: Yeah. So, I actually went out and show you step by step for free. The reason I did this is I had a lot of people was like, well they were skeptical, right? Just like I was when I first heard about this. So, when I first heard about it, I was like, there’s no way like this, not real. They’re just selling courses, yada yada, like I didn’t believe it. And then on top of that I was like, okay, well, if it is possible, why would anyone sell it a discount you’re taking advantage of them. I had all these questions and all this doubt and all this. And so, when I became a coach to put money in people’s pockets, I came out of a place like how do I help people? How do I help people? How do I show them? It’s really possible? 

      How do I help them overcome those doubts, those negative thoughts, and then also how to do it, you know, how do I get their mindset right? Their belief right. As well as the action steps. So, I went to Tampa a few months ago and the goal was to take a thousand bucks, go to somewhere I’d never been, which was Tampa. And the goal was to turn it into more than $40,000 in 40 days. And the reason I did that is 40 grand is the average American income. And so, the whole goal was to do this driving for dollars thing. Do what I teach my students use the same marketing channel and I couldn’t use my team. It was me alone with a camera guy and I had to make 40 grand. So, I went out there and I went to work, right.

      And I show you step by step for free. You guys get to watch it. What I do, how I talk to sellers, you see me talking to sellers, but I ended up selling three deals. I got three deals that I sold, and I made $93,000 in those 40 days just starting with a thousand bucks. So, if you guys want to watch that, it’s a great place to start. So, you can catch that for free. I have a link that you can go and get free access. It’s www.dfdmastery.com/40in40. So DFD stands for driving for dollars, right. Www.dfdmastery.com/40in40. So, they can go there. Yeah, they can go there. They also can check out my podcast, driving for dollars mastery or just Google. And you’ll find all of my social media content.

       

      17:59 

      Jason Lee: Perfect. We kind of want to backtrack a little bit. You said in the beginning of the podcast, you made a ton of mistakes when you first got into the business. Could you tell us one or two stories, you know, of a big mistake you made and a core lesson you learned from making that mistake?

      18:16 

      Zach Boothe: Yeah, well I mentioned the importance of my mentor, that I mentor, and I’ve helped people and a big mistake is in the beginning of my journey I hired a mentor that was the wrong mentor. And I think that, there’s a lot of skepticism around mentors cause there’s bad ones and people will get a bad mentor to put a bad taste in their mouth and they’ll tell everybody about it. And so, there’s this belief that mentors are bad. So, I’ll give you kind of the filter that I use. I still have mentors to this day. I hire a lot of people. I hire consultants like it’s, it’s made a massive difference in my success and speeding up my success. 

      So, the filter is first, are they doing and accomplishing, and have they accomplished what I’m trying to accomplish exactly. Like don’t take advice from someone that has never done what you’re trying to do. You know, there’s a lot of mentors that are just selling information or concepts that they actually don’t use. That’s a big, big, big, like don’t waste your money. 

      The next thing that, that I would highly suggest is they successfully helping other people do what you’re trying to do? Like do they have proof of concept consistently and you know, recently, right. Because doing it and teaching it is a whole other ball of wax. They have to have a heart of a teacher, right. They have to be there for their students. They have to take phone calls from their students. Like they have to be there. There’s a lot of people that will package this nice little cute, packaged course, but not be available and actually not even serve their students. So, make sure that they’re actually getting people results in third, make sure you like the person you hang out with the person have a cup of coffee that your core values aligned. 

      So that would be my suggestion but understand that having a coach is important and I hired a coach who paid 10 grand was a mistake. He just sold me a big package of information. He wasn’t available to me. He wasn’t really doing what he was teaching. It was just a big waste of money. And it was a major roadblock. Most of that went on a credit card and I paid nine grand for my next mentor. And within eight months after that, I made over a hundred grand. So, like there’s a big difference. There’s good and bad coaches. So that was a huge mistake that I made. 

      Another huge mistake that I made is not realizing how important it was to be in and responsible for your own lead generation. If you are, you remember we’re in the business of marketing I said that. So, I learned that I needed seller leads, right. So, I was like, okay, well I’m going to be lazy and just go give that responsibility to someone else. So, I hired this digital marketing company to do online ads for me, PPC and Facebook ads. I signed a $30,000, six-month contract. And I was like, well, I’ve got like $7,000, $8,000. Now by the time I spend that $7,000, 8,000 I’ll have a deal. And then I can pay for the rest. Well, not only did I not do a deal, but I also never even got a lead. It about killed me. Like I was, I had to refinance my truck. It was a complete freaking nightmare. 

      And I realized at that point that I needed to quit trying to solve my problem in an easy way and take ownership of my marketing. Like that was my business. Find something that worked and just duplicate it and do it over and over and over. So that was a huge mistake that I made. Those are probably my bigger ones and like I wish I could go back and slap myself and tell myself not to do it. Cause it really slowed me down. Right. It got me in debt. It got me, it moved me backwards. 

      A lot of the mistakes that we make. They’re like we look back and go, oh man, we could’ve had more success if we would’ve done it differently. But there’s some mistakes that are so huge that they actually make a step backwards, not slowing us down. And those were step backward moves.

       

       

      21:52 

      Jason Lee: Gotcha. So how do you currently generate leads for your wholesaling business?

       

      21:58 

      Zach Boothe: Yeah. So, I’m doing multiple different marketing channels. I have Facebook ads, PPC, I’m doing radio. I’m doing, I have a network of people that I work with that bring me leads. So, I have that, but 80% of my leads, 80% of my revenue. And by far up my most profitable channel, three times more profitable than any of those channels I mentioned is my driving for dollars. What that is we drive around, and we build a list of the highest possibility of people that want to sell for speed and convenience over price when they do want to sell. Of course, not everyone on that list is going to sell, but when they do, they probably want an investor. And if they want an investor, most of the time they want, you know, they understand it’ll be less than what they could get if they fixed it up and listed it.

      So, we build that list. We use an app called deal machine. You guys get a free trial use my discount code pin if you want the free trial for it. But we use that app to build that list. We can add 30 to a hundred properties, every single hour of driving. So, you can build a list pretty quick. I have one driver that adds 2000 properties a week to that list. And then once we build that list, we export it out a deal machine. It’s basically this nice, beautiful little, you know, Excel spreadsheet for us. And then we text it, we could call it and we postcard that list. We make money off of all of those three outreach strategies.

      23:22 

      Jason Lee: That’s very cool. I’ve actually I’ve always known that driving for dollars is a great way to find good leads, but I didn’t know that if your number one lead source, when you’re doing all these other marketing methods. So, it’s pretty cool.

      23:33 

      Zach Boothe: Yeah. Most people, you know, traditionally driving for dollars was very inefficient, right? It was only for newbies that had a bunch of time, but no money. And you drive around and write down the address took forever to build a list of any size you scale you couldn’t, but now it’s 100% the best way to start and the best way to scale. Because if you want to build a, you know, if you want to do more deals, well, all you do is you add more properties. And now with the technologies, you can build a giant list with a tiny bit of time. And it’s the most profitable list. Like when I send postcards to that driving for dollars list, I spend 11 cents to make a dollar. That means I’m making a, what is that? An 89% profit margin after my marketing, of course I have my acquisitions and all that crap.

      But dude, when you have 89%, almost 90% of your money left over after marketing, that’s a huge margin to then pay your team and still have a 50%, 60% profit margin in my pocket. It’s incredible. My cold calling, I spend how much do I spend? I spend 24 cents to make a dollar with cold calling. So, of the three-texting cold calling and postcards is my least profitable, but I’m still 76% profit margin. Like it’s a huge margin, right? And then texting is about right in the middle. It’s about 14, 15 cents to make a dollar. It’s an incredible way to reach out and to scale. No one has that exact same marketing list. You’ building it. Even if people are driving well, they’re not adding the same properties on the same day. 

      And the thing is we re drive our entire market every six months because we want to keep hitting those houses that are newly destroyed. The tenants have recently put a couch on the front lawn. It’s like, oh, it’s in transition. Let’s definitely tag it and market to it. And then the houses that are still in bad shape, we want to keep marketing to them, but sometimes they’ll be sold to another flipper and they’re flipping it. We don’t want to add it now. And so, we have this beautiful list and it’s a very systematic way to grow scale and do more and more and more, right. Like it’s really, what’s made me so successful is that marketing channel.

       

      25:37 

      Jason Lee: Fantastic. Great advice. Great information, Zach kind of closing out the podcast here. I Want to ask you a few last questions. I guess number one is for someone who’s looking to, I’m excited to ask you this question out of all people, cause you’re a coach. You understand how to help people. You understand how to change people’s mindsets. I’ve been getting a lot of DMs and messages on social media about, you know, how can I, you know, make the first step, and change my mind set to change my life. And I kind of want to hear your answer, how someone can go for making, you know, 30 to $50,000 a year and kind of rewiring their brain to where they can kind of think bigger and you know, do what they want with their life. 

       

      26:19 

      Zach Boothe: Yeah. So Tony Robbins, Tony Robbins changed my life. Me personally, you know my mindset I told you that limiting belief that I thought I was stupid, So I just had to work real hard. He helped me overcome that limiting belief and I have a lot of love and respect for him. So, he talks about the cycle of success. So, he says, the first thing you have to start with is belief, faith, right? Cause if you don’t have a, like, let’s talk about if you don’t have faith, if you don’t have belief in yourself, like you’re like, oh, I’m going to do wholesaling, but you’re like halfway believing that you can be successful. If you don’t have this massive conviction, you’re not going to give the effort. You’re not going to go ham. You’re not going to work till one in the morning, two in the morning.

      You’re not going to sit in your house in cold call for 14 hours, straight five days in a row. You’re not going to do it because you don’t have that massive belief. And if you don’t give the massive amount of action, you’re not going to have massive results. You don’t have massive results. You’re going to be like, see, I knew it. I knew I was a failure. I knew I couldn’t do it. I knew it was a scam. I knew yada yada yada. And you’re just going to confirm what you’ve emotionally and felt in the beginning. You have to start out with that massive belief in yourself. Cause if you have massive belief in conviction, well then what do you get? You get massive action; massive results equals confidence. See, I knew I could do it. If I can do this, I can do the next thing.

      And then you hear someone else’s story that did something cool. It’s like, man, well, they were where I was and I did that part of, I can do it. If they could do it, I can do it. And you build this confidence, and you start spiraling upwards. And one of the things that I suggest is you start with a goal, you start with something, you identify someone that has done and accomplished what you would like to do. You make sure that that person is helping and consistently helping others. And then you follow his action steps. You do what he tells you to do because you know that if you do, you’re going to have those results, right? 

      Success leaves footprints. Like it’s not rocket science guys. Like I really am not the smartest person in the world. I followed the simple action steps that Tom Crow gave me. I did the work and I had results and I wanted to have more results. So, I tried new things and tested new things. But none of that would’ve happened if I wouldn’t have had someone to get me started. You know, if you’re completely broke and you don’t have five grand for a coach, it’s like, okay, well let’s backtrack. Let’s say, okay, I need to come up with $5,000 for this coach. Okay. Well, let’s start with something that we can bite into. It’s like, okay, I need to come up with five grand. Okay. How do you come up with five grand? 

      Well, Gary V talks about you know, Garage Arbitrage is what he calls it. I think it’s Garage to arbitrage. Basically, you pick up stuff for free and sell it for a profit. You pick up stuff for free that was listed on Craigslist, or you go to go to yard sales and pick up stuff and flip that. It’s a great way to start. I have a guy in my office that does that, and he makes like five to 10 grand a month on the site. Guy’s a rockstar. 

      And so, you can start with something simple, start with something that makes you a little uncomfortable and go from there and continue to grow and Excel as a person. This is a journey. Most people they say, oh, I want to make a million dollars a year, but it’s almost more like they’re saying, oh, it would be nice. Who’d be nice to make a million dollars a year. The people that really want it, they go, they start taking action. They start doing the work they start looking into who can do it. And when they find someone that can help, them get there. They start taking action and getting there. So that would be my suggestion.

       

      29:32 

      Jason Lee: Yeah. It’s a great answer. I think some people have like a really huge daunting goal and it’s so big that, you know, they have this goal of making seven figures a year and you know, they start from ground zero and when they don’t see the results right away, you know, it gets daunting, and you get harder on yourself. So, what I preach is having, you know, small little wins each time to kind of building that confidence up to where you can get to that point where you’re, you know, making whatever, how much you want to make a year or doing however many deals you want in a year. 

       

      30:01 

      Zach Boothe: It’s like saying you want to make a million dollars in a year wholesaling, and you’ve never done a wholesale deal. Yeah. Maybe we should start with the goal. Let’s get our first wholesale deal in the next three months.

       

      30:09 

      Jason Lee: Exactly, exactly. Well Zach, it’s been a fantastic show great nuggets information that everyone can listen to last but not least. Where can the audience go learn more about if they want to get in contact with you?

       

      30:22 

      Zach Boothe: Yeah. So, you guys go watch that free challenge, www.dfdmastery.com/40in40. So, make sure you guys go check that out and then you can follow me anywhere that you have social media. So, my name is Zach Boothe, Z-A-C -K Boothe, B-O-O-T-H-E. So, look me up, follow me. I promise to provide amazing content, free content and I coach because I love it. It’s not the only reason I create the content. I really want to make a difference. Give back. So just tons of free, awesome stuff. If, if you guys are interested in this space.

       

      30:55 

      Jason Lee: Awesome. Well, Zach, thank you so much for your time. Hope to reconnect again soon and hope you great rest of your week.

       

      31:01 

      Zach Boothe: Awesome. Thanks for having me.

       

      31:03 

      Jason Lee: Yep. Thanks Zach.

       

      31:04 

      Thank you for joining us on the multifamily millionaire podcast. The show that interviews, multimillionaire real estate investors and top producers in the real estate industry. We’re here to help you create passive income and achieve financial freedom so that you can do what you want whenever you want. We’ll catch you next time on the multifamily millionaire.

      [End of Transcript]

       

       

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