037: Wholesaling and How to Raise OPM

Today, my guest is my business partner, Cory Boatright. In 2005-2006, Cory became interested in short sales due to the economic crash. He knew that there was an opportunity because people couldn’t afford their house, bought too much house, didn’t have enough money, and were going to lose their house. Cory figured out a way to capitalize on the short sale market and built software that, at the time, specialized in short sales.

Then, thyroid cancer changed his perspective and life. Cory decided that he didn’t want to do short sales anymore. He closed his loss mitigation company and sold the remaining portion of his software company. Cory started focusing on bigger things, such as life and what’s most important. He spent time with his mom and other people he cared about. Cory started looking at the low-hanging fruit in real estate – wholesaling.

Topics on Today’s Episode:

Tax Benefits: Ability to save, different strategies, self-directed IRA
It’s all based on numbers; reposition the property, make a profit
Raising Other People’s Money (OPM) can be difficult; don’t lose faith
Not as simple as asking your friends for money; they are in your circle and already doing big things, so they are clobbered with opportunities daily
Don’t ask somebody for something, bring them something that they wouldn’t have otherwise without your involvement; leverage relationships
Rather than thinking about how to do it faster and better, put on your private money hat and have a conversation about something that helps someone
People pull out of deals, don’t take it personally; feed off energy of your next call
When meeting someone in person, get centered to create some space between something that happened and whatever’s getting ready to happen
When raising private money, real estate people are the wrong avatar; they always want equity, a piece of the deal
Best places to find money are with working professionals
People cannot stomach the ups and downs of the stock market; go for a smoking deal that gives you a solid return
Wholesaler’s challenge is their whole mentality is hot potato; get rid of the potato, slow down, and change your mindset
Raising private money is about building a relationship with a solid foundation; the deal will stand on its own
Newer investors often become your best advocates; no one ever tells you how much they have available and there’s more money than you could imagine
Apply your specialized knowledge; raise private money because people giving private money don’t typically have that knowledge and don’t want to have it
Listen and people will tell you what they want
Tell a story about why you think it’s a good deal
Objections for capital include not offering enough return
Some things you do naturally, others are psychological things you need to be aware of; what goes on during a conversation is powerful, so protect the capital
Only question at the forefront of people’s brain is, “Am I going to lose or what am I going to get out of it?”
Believe in yourself and what you’re capable of doing; overcome invisible beliefs to step into the realm of what’s possible
Money is a big reason for stress; if you don’t have to worry about money, then the stress is not there and you get to do what you want
Multifamily provides freedom of time and freedom to build a life that you always wanted; paradise is possible
As a wholesale, you are transactional, nut you also need to step out and start building relationships; they could be investors in your deals
To raise private money, do not assume that you think the person you’re talking to is only going to invest X dollars; talk to them as if they have $1 million to invest

Links and Resources Mentioned:

Quotes:

“Wholesaling is the low hanging fruit in real estate.” Cory Boatright

“I’m excited about this journey on apartments.” Cory Boatright

“The reason that these people are in your circle is because they’re already doing big things, they’re already being clobbered with the opportunity daily.” Cory Boatright

“It is slowing down, it is building the relationships that are driven around people that are interested in doing deals and private money, and building those relationships.” Cory Boatright

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