Hey, welcome back to the Investor Fuel Show! I’m excited to have my good friend, David Olds on the show today! The market has been hot for the last several years and dispo has generally been an afterthought. Now that the market is changing, dispo is important again (not that it wasn’t before), and those who are great at dispo are currently succeeding! Today, we are going to delve deeply into dispositions, how to build a dispositions team, and how to create processes to help you dominate dispositions.

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Mike: [00:00:00] Hey everybody. Welcome back to the show. I’m really excited to have my good friend David Olds here. Today we’re gonna be talking about, uh, dispo and kind of really how to dominate it. Obviously, the market’s been hot the last several years, and dispo was an afterthought for most people cuz they’re making so much money.

Mike: But the reality is the market has shifted, your cheese has moved, and, uh, dispo is important again, not that it never was, but people just got a little bit lazy. So we’re gonna take a deep dive today into how to build a dispo team and how to build processes to help you.

Mike: Professional real estate investors know that it’s not really about the real estate. In fact, real estate is just a vehicle to freedom. A group of over a hundred of a nation’s leading real estate investors from across the country meets several times a year at the Investor Fuel Real Estate Mastermind to share ideas on how to strengthen each other’s businesses, but also to come together as.

Mike: And build [00:01:00] more fulfilling lives for all of those around us on today’s show, we’re gonna continue our conversation of fueling our businesses and fueling our lives. I’m glad you’re here.

Hey David. Welcome to the show.

David: Hey, thank you so much for having me. I’ll be honest, I’ve, I’ve listened and watched for a long time, so I’m, I’m super honored to be here and yeah, I’m very excited.

Mike: Excited to have you here and you’re kind of the king of dispo and so excited to get some nuggets here and some takeaways because as I just said, a lot of people, this was like, Just something you do when you find a big juicy deal.

Mike: And now, you know, a lot of, obviously a lot of cash buyers, a lot of the institutional folks have gone away. And so dispo is, is a critical component. I’ll say again. I know you’ve been through this before, you and I started around the same time. Right. Uh, and, uh, I actually just saw a post today. Of, uh, something from, uh, 2010 [00:02:00] or something.

Mike: Mm-hmm. . Cause I started in 2008. I think you started a little bit before me. Yeah. Um, and I was like, yeah, we just sold another property in like two days. All these people are afraid, but we’re just kind of mm-hmm. going through the motions. And the, the reality is, I started, when I started in 2008, we didn’t have bad habits from 2005 and six or whatever.

Mike: Yeah. Yeah. So we never really had a problem. We were scrappy and working hard from the beginning. Mm-hmm. . Um, and so I kind of credit timing to that, but, uh, yeah. Yeah. So where did jump in? Tell us a little bit about,

David: about your background. Well, that’s when I started in real estate too. My background, I grew up in Boston.

David: You know, I went to college. I have a degree in criminal justice and uh, you know, I was never gonna be the guy who was running the obstacle course for the, uh, for the police or F B I test. So, um, you know, I went through college, I worked my way through paying my own way in retail stores so that, that actually.

David: You know, that marketing and sales that I learned there really helped me when we, when we got into investing. But, uh, yeah, I moved to, was in Boston, moved to [00:03:00] Florida in 1993, got married in 2001. Red, rich Dad, poor dad, like I think we’ve talked about at the last event. Thank you for, for, you know, giving us the opportunity to Kiosaki Psaki, which was, you know, You know, meeting one of the, the gods of real estate.

David: Right. But, uh, yeah, so my wife and I, we bought our first house in 2002. Had no idea why we were buying it from, from Wells Fargo. You know, my realtor, you know, had to explain to me, Hey dummy, it’s a foreclosure. I’m like, what’s a foreclosure? I don’t know. But, uh, yeah. Anyways, we got, we got started in real estate and back then it was kind of crazy.

David: So we were, we were re rehabber. and, uh, you know, the market crashed in Florida. It was really, really bad in 2000, you know, eight, uh, my wife lost her job. She, uh, worked for a large custom home builder. I worked for 84 Lumber and Probuild as a salesman. So, you know, it was literally just like a house of cards just collapsed on us.

David: Yeah. And we relocated to Chattanooga to do real estate and. You know, all of a sudden, like [00:04:00] everything had changed. There was no, like, you couldn’t wholesale and sell to a rehabber because the banks weren’t lending money. Mm-hmm. , they were very busy taking back properties, not lending out new money. Right.

David: So, you know, our wholesale business, we had to, we had to, you know, adjust and figure things out very quickly and, you know, You know, if your buyer’s not a rehabber, well then who’s your buyer? Because there’s no hedge funds. Right. That, that hadn’t come around yet. So our No wasn’t around yet. Yeah, yeah. Our buyers turned out to be landlords.

David: So, you know, we again figured out very quickly, well, landlords aren’t buying $300,000 houses in Chattanooga cuz they don’t cash flow. What are they buying? We, you know, we figured out how to pull that data. And they were buying houses in what some people would call the hood. Right. Lower income areas. Yeah.

David: Because they could buy them. , you know, back then 15, $20,000 cashflow for six, $700 a month. And, uh, you know, we’re grabbing ’em at nine, 10, $11,000 and just, you know, just, just moving these houses like there, you know, there was no tomorrow. Um, [00:05:00] but again, you know, it’s, it’s was far worse than it is today.

David: Today’s still a cake wa cakewalk compared to what it was back then, but we had to get really good. At, at dispositions, you know, we had to learn how to go out and find the buyers who are buying in this area. You know, really Facebook wasn’t a thing back, you know, back then. Um, you know, where we sold deals, Craigslist, and people, we, people laugh when I talk about Craigslist is, you know, there are 10 things that we do when we’re selling a deal.

David: We’ve got, you know, sort of this process that we created and one of them is Craigslist and people laugh and snicker and I’ll say to them all the time, say, listen, who do you think is buying your properties? Guys like me, 45 to 60 years old and this is where we used to go to find properties. So That’s right.

David: You know, it’s a habit thing, right? It, you know, I keep Craigslist up on my computer all the time looking for deals. Um, so yeah, so, you know, we, we. You know, we, we just figured out and kind of cracked the code on how to do dispositions and do it, you know, in the worst market ever. So as things got better in 20 [00:06:00] 13, 14, 15, like.

David: Life was really great. And then it was awesome the last two or three years. And when we had this shift, um, you know, we had to kind of go back to our roots and make sure, hey, are we doing the thing? Because if you do the thing, it works. Um, you know, you just, you just have to have a process. And, you know, we, we were an investor fuel, which is amazing by the way.

David: And, uh, you know, a lot of wholesalers that have come out in the last couple years, they just, they don’t know. They just would post a Facebook. Boom. You know, $40,000 assignment fee. Because you could, right? Well, you could and, and I’m not knocking that. Listen, we would post there too, but when there’s a market shift and markets always go up and down, up and down, they are.

David: They always have. They always will. Yeah. You know, there are different buyers, you know, the buyers that kind of rode the wave and they got to the top panic and, you know, and they jump out. So we, we dip a little bit and now new buyers are, are coming into the market, but the people that jumped out first, right?

David: Hedge funds, like, kind of like the dumb money, right? Doctors, dentist, lawyers, you know, people who just had. [00:07:00] Half a million dollars sitting in the bank. They’d buy a house. It would automatically appreciate with paint and carpet $40,000 and then resell it. Well, you know, when, when they’re, when there’s a change in the market, those people got spooked and, you know, jumped out.

David: Jumped out really quick. So now we have to go back and make sure that we’re finding, you know, the real buyers who kind of have been here all along.

Mike: Yep. And, and there’s also buyers that have been, you know, The last couple years they were maybe sitting on the sidelines, so like Sure. It’s just kind of overheated.

Mike: I’m just gonna wait till there’s a, there’s a, a pop the bubble pops or whatever. Right. Which it hasn’t popped, but No. You know, it’s just, there’s just it. When you find on this business, when you’re around long enough Yeah. Is it’s, it’s not. It’s, it’s similar to the stock market investors in the sense that there’s people that just change their extra strategies.

Mike: Mm-hmm. or sit on the sidelines and wait for opportunities. Yeah. I mean, I don’t, I heard some number recently, like Warren Buffett is sitting on some like insane amount of money and people think he’s scared and he’s like, no, I’m just build my war chest for the opportunities to come [00:08:00] along during a down market.

Mike: Yeah. There’s real estate investors like that too. Especially landlords. Like, they’re like, Hey, Some guys have a big portfolio, they’re like, I don’t need to buy anything else right now, but if the opportunity comes along, I will. And they’re waiting for a correction and some of those people reemerged,

David: right?

David: Yeah. And we’re in that boat too, you know, we have almost a hundred rental properties and you know, we’re both in these a million groups on Facebook and everybody’s, ah, waiting for our crash. I’m like, oh, me too. Right? Like, we, we wanna go out and buy more properties than, you know, maybe owner financed or cash or whatever it is.

David: You know, I, I’m embarrassed to say this out loud, but I’m like, that wasn’t really a crash, but if it was, I wish it had last longer . Yeah, right. I, I think, you know, what happened is, you know, we had a correction in the market. Um, you know, the Fed for whatever reason, you know, they had to adjust just the rates.

David: But we’re back, you know, and where we’re at today, what are we In March? Yeah. March. Um, I, I think everybody realizes this is a new normal and this is what it’s gonna be. You know, now everybody is just kind of, okay, this is, this is it. We’re gonna get back in the market. And, uh, I heard an interesting [00:09:00] stat not too long ago that said, um, and you probably know this, what the, the average interest rate over the last 50 years was.

David: Have you heard this?

Mike: I don’t know what it’s over the last 50 years, but I know that this is like kind of normal. This isn’t like some seven

David: point. 7.7%. Yeah. So like the days of the two, three, 4% interest, they’re done. Like, just write that off. They’re, they’re probably not coming back unless catastrophe calamity happens and the government decides to slash them again.

David: But that had never really been done before. So, yeah. You know, I remember when I bought my first house in 2002, whatever it was. And I had a 7% mortgage and I thought I was the man . Yeah. You know, so, you know, I did just refi my, my house that we had built for, you know, 2.5 or something, and thank God I I did that.

David: But yeah, this is normal. Like this is regular life. People have kind of started to accept that and the, the market’s starting to heat back up and, and keep


Mike: And, and one thing that’s different too is during the last downturn, like you. Hard money lenders. There weren’t as many like large national [00:10:00] right.

Mike: Hard money lenders. It was a lot of local people, regional people. But the money literally went away and banks stopped lending. And I think the hard money lenders now, they’re pretty resilient. They’re just making a spread. It’s like mm-hmm. , I had to, we gotta raise rates up. But the money, yeah, the money still needs to go somewhere because, right.

Mike: Back in 2000 8, 9, 10, there wasn’t as much institutional money in the marketplace for investing. And so, you know, Tim was just talking about this. He’s like, this is different than last time. Last time there was no money to be had. Like lender said, check back with us in a couple years. Like, we’re not lending right now.

Mike: But now rates just adjust. Like the money has to find a way. It’s just more expensive.

David: Yeah. You know, it’s interesting when, uh, you know, we were building up our wholesale business in nine, 10, and 11. One of the things that we wanted to pro provide was a source for funding. Well, nobody could lend in Tennessee.

David: And I don’t know if it was a regulation thing or what it was, but I talked to countless companies, big companies at the time and nope, they just couldn’t do it. And now, my God, there’s rcn and you know, Longhorned, there’s just a million of these companies like that. Um, so yeah, the money’s [00:11:00] out there and it’s looking for a deal.

David: Money always wants to be.

Mike: Yep. Yep. So let’s talk a little about finding buyers. So you just set up Yeah. A little bit ago you relied on Craigslist. Yeah. I can tell you I used to go to, like, back then there were tons, uh, way more than there are now. Cause because of social media, probably of like physical R clubs and in market like Dallas Fort Worth, there’s almost 8 million people here now.

Mike: There were like five or six prominent big R clubs that would get hundreds of people per event. Mm-hmm. And I would just go there and just like, fill my pockets with business cards. . Yeah. And put ’em on my buyer’s list. Yeah. Uh, you know, if you, if I got your card, you’re going on my buyer’s list type thing.

Mike: Right. Which wasn’t the right way to do it either, but. Uh, that was kind of my approach, uh, back then. Yeah. But I know you, you’ve got this a lot more buttoned up. So let’s talk a little bit about kind of the right approach to find buyers and build a list.

David: Yeah, well you just, you know, as a, as a general philosophy, we are on the mode of always building our buyers list as big as we can.

David: Um, I know there are some people that say if you just get 10 buyers, you’ll be, you’ll be fine. And [00:12:00] honestly, I don’t subscribe to that cuz one those buyers are gonna know. They’re the only ones that you’re sending the deal to and you’re gonna turn out to be their employee. I’ve had people try that with us, and they’re like, yeah, I don’t pay more than $2,000 assignment view.

David: I’m like, well, this, this one’s more . Yeah. So, so we’re not going to do that. Um, but yeah, we’re, we’re, we’re trying to build that list as big as we can, because here’s the thing, that’s how I throw our net out to on the acquisition side, right? I wanna pull in as many properties as I can. Now I’m gonna cherry pick the stuff I want out of there, right?

David: So if I buy something, You know, if I have 10 buyers and they’re all gonna say, what do they want? Three bedroom, two bath, ranch houses, you know, in a nice area. Well, what am I gonna do when I get the duplex? That’s a one bedroom on each side, right? So if I’ve got that large buyer’s list and I’ve accumulated that, and I want to capture every single buyer in the market, then I’m going to have.

David: Have a buyer for that property when it comes in, cuz I don’t want my acquisitions guy to throw this lead away because we don’t think we can sell it. Cuz we only have, you know, buyers for three bedroom, two bath, [00:13:00] um, you know, in a nice area. So, so we’re building that list as big as we can as we’re talking to these people, every person that calls in.

David: You know, Hey, Mike, you know. Fantastic. Tell me what you’re buying. What did you buy last year? What’s your goal for this year? How are you funding it? You know, we’re, we’re trying to build our database so that when a property comes in and we’ve contracted it, and it’s the blue house on the Red Hill with the purple door, I can go into my C R M and go, oh, blue House, you know, red Hill, purple Door.

David: Oh, Mike’s the guy. He said that he wants duplexes in this area. Yeah. Um, so you. Go. Go as big as you can, right? Because I wanna put these properties out and I wanna find the person who’s willing to pay the most. That’s my job. I have a wife, two boys, and three fat dogs, right? I have got to make money. My kids need shoes, and my dogs definitely want dog cookies, right?

David: So, you know, we’re in business to generate as much as we can. Um, so the way that we build our buyers list, we look at it two different ways. We call it like global list building and then property specific. And I don’t know that those are the best words, but [00:14:00] they’re what I got. Yeah, so we are always marketing for buyers, right?

David: If you’re working, you know, in just a local market, which is maybe different from virtual wholesaling, maybe you’re putting out banded signs. Let’s say three, two. Um, good area must sell today, right? I’m just doing stuff that’s gonna drive calls into, you know, into either to me or to my dispo team. You know, I’m doing ads on Facebook.

David: Hey, you know, nationwide Property Liquidators, we sell properties at 50 to 70% off retail. Give us a call to get on the list. Right. I’m just doing marketing that’s just constantly kind of generic marketing that’s driving people in. Um, you know, and if they’re online, maybe it goes to the website, a squeeze page, they opt in, you know, whatever that is.

Mike: Let me, lemme ask you a question there. So you, you’re going after the national audience because Chattanooga is a. A pretty good rental market. I mean, you would want people on your list in California maybe if they’re looking to buy rentals. Yeah. Cause a lot of people in California obviously are not buying rentals in California.

Mike: They go to the Midwest or somewhere else where they’re more affordable, where they can’t believe I can need to buy a house for that much. Yeah. Right. And so that’s why you’re doing some nationwide stuff is [00:15:00] to attract the kind of turnkey or the rental, uh, the landlord.

David: Yeah. Yeah. We’ll definitely have, and we’ve got a team of VAs now that do this cuz you know, Here’s what I tell people.

David: You know, when it was just me sitting in the office, me and my wife and my brother, there were a million things I knew that I should be doing. Right? But you know, life is like, you’re juggling dynamite sticks every day, right? You can only keep so many up in the air at a time, right? So I knew. I should be doing 1, 2, 3, 4, 5.

David: You know, I knew there were 20 things I should be doing, but I could literally get three done during the day. So as you scale out, these are the types of things that, that you start to put in place for your team. Um, my team does stuff every day that I could never do on my own. So I understand that we’re gonna talk about stuff and people are like, I can’t do that.

David: That’s okay. Do the basics. And then as you grow, you know, we’re gonna, we’re gonna start expanding there. Um, so yeah, so we’ll definitely market in areas. Um, California, right. For an Ohio property where these guys can get like almost a 2% rent multiplier. Yep. Um, [00:16:00] but we’re also, you know, we market right now we’re in 28 markets.

David: Hmm. So our VAs are always dropping ads in there. Um, you know, hey, You know, nationwide property liquidators.com. Go see, go see our inventory. Um, so that’s kind of that global list building that we’re just always doing in between properties. We always wanna be doing some kind of marketing, right? Yeah. But then we do very specific property marketing, right?

David: It’s, it’s 1, 2, 3 main street, three bedroom, you know, one bath, whatever. Um, and that’s, We get very, very specific in where we have a, a very detailed plan. Because when I started, you know, for a long time it was just me that did all the dispo stuff, and that’s great, right? You and me we’re kind of intuitive.

David: We just know what to work, like, how it, it’s like driving a car. You don’t think about it after a while, but when you start to bring people in and you have to train somebody else to do what you want them to do, It, it can be, it can be a challenge, right? So we, we knew that we needed a system that was, uh, that [00:17:00] we could implement with pretty much anybody, right?

David: So one of our mottos is simple as scalable, right? We don’t, um, I don’t wanna have the most complicated dispositions plan that looks like a simple mind, you know that movie poster with all the calculus up there, right? Like, I’ve gotta be able to bring somebody in off the street. And train them to do this, you know, in a reasonable manner where they can, they can, you know, one, have s have success and two, wrap their brain around it.

David: So anyways, I, I bring in these, these three girls to start and, uh, I remember coming outta my office one day and having this meeting and they’re all sitting there and I said, okay, well, well, how’s it going on our properties? You know, what are we doing? It’s a little, little huddle. Well, this one, the first one says, well, we’re doing this, this, and this.

David: I’m like, oh, okay. All right. Second one. Well, I’m doing this, that, and the other thing. I’m like, oh, okay. And the third one’s like, well, I’m doing the other thing, this, that, the fourth thing. And I was looking at ’em and I’m like, My God, we’re, we should be doing 10 things and y’all are doing six and you’re not even all doing the same freaking six, right?

David: Mm-hmm. , we need to, we need to get ourselves like a little checklist here and get a little organized and [00:18:00] uh, and that’s kind of, kind of the start of us putting together a program, you know, for dispositions. So, I mean, the stuff that we do, just kind of to rattle it off, you know, first thing we do, very basic, we’re putting it on our website.

David: We use investor lift, but whatever you’re using, You know, put all of the information there. One thing I teach people is. You know, if somebody leaves your website for some reason, 50 50, they’re ever gonna come back. Right? So give people all the information. It’s not 2020, 21 anymore. Those days are done. You know, the, I’ve saw saw so many emails and websites that were like, this is a good deal.

David: You should buy it. Like literally, that was the information that was put out there. You know, our job as a wholesaler is to provide information and you know, I want to give somebody, if they’re sitting on the couch in California and I’ve got a deal on Louisville, Kentucky, I wanna give them every bit of information that they could ever need to make a buying decision without getting off the couch.

David: Right? So what does that mean? , three bedrooms, two baths, square footage, size [00:19:00] of the lot, school district, annual taxes, you know, and then what do I know about the house, right? Oh, it needs an updated kitchen or has a tenant. And here’s the, here’s the rent, here’s the security deposit. Whatever it is. I want to, you know, I want to give them all of that information.

David: Um, lots of pictures. Yeah. Pictures holding your phone sideways, not vertical. Um, yeah, pictures. I wanna give ’em a video. Um, you know, when we send somebody out to do pictures, we’ll tell ’em I want 50 pictures. I want a picture wide angle from the corner of every room. I’ll sort it out later. Which one we wanna put on there.

David: I wanna see underneath the sink. I wanna see the. You know, the fuse box, the water heater right? All sides of the house. Like we want as many pictures as we, as we possibly can. I don’t want it to be four pictures and two of ’em are looking at the floor.

Mike: Right? Yeah. It’s not that you want, uh, you don’t wanna hide anything, right?

Mike: And you want No, it’s not that you want all your buyers to buy site on scene because the pictures were so good, but you want ’em to have the confidence that they could. Right. Because, uh, if you just post a couple pictures and they, and, and, you know, And, and real estate industry, especially the retail side.

Mike: Mm-hmm. , ISOR for [00:20:00] being misleading. Like, here’s a picture of the best part of it, and then you get out there, oh, I didn’t know there’s train tracks across the backyard. Mm-hmm. , like, just be open about it. So nobody’s wasting their time. Well,

David: that exact thing happened to me. You, you remember back in 2011 and 12 when REOs were like, they were all flooding the market.

David: Dude, I was putting like 10 offers out a day. Just looking at, you know, I’m looking at these five pictures, putting a price on it, sending an offer, and I got this property not too far from here. So I zip over there. We, we, our offer was accepted. I run over there to go take a look at it. I’m like, I, I kid you not, I walk in the door, I look to the left living room, I look up.

David: Because he’s straight to the blue tarp on the, you know, through the second floor. I’m like, how is this not in the pictures? Like, this isn’t new . You know, like why hide that stuff? Right? We’re selling a deeply discounted property. Of course it needs work, right? So, you know, I’m. I’m not in the business of hiding stuff from some people now I’m not, you know, if there’s a one inch scratch on the countertop, I’m not zooming in on that.

David: Right? Sure, yeah. I wanna show you the overall look of the property [00:21:00] and uh, you know, we just wanna be truthful because all you’re gonna do is, is you’re really just gonna piss somebody off. And when they do come to see it, now they’re aggravated. Right? Now you’ve got somebody who’s just upset with you. So, you know, just I’m on the be honest plan.

Mike: And David, are you, are you of more of the approach of build up your buyer’s list and kind of. Spray it to everybody that’s on your list? Or do you do much with like list hygiene? Ask talk, like actually calling people on your list saying, are you still buying? Do you want to, yeah. Be off of our list. Or there’s kind of a couple trains of thought there of people that do different things

David: and, and everybody’s business is different and they should all just kind of run your deal different.

David: So here’s the difference. If there’s two, two models of wholesaling. There’s the local model and there’s virtual model, right? So if you’re gonna be, if I was just today in Chattanooga and all I did was Chattanooga, 100%, I would grind through that list. We’d be talking to people every single week, right? If I had 5,000 people on there and four dispo agents, like we would, we would cycle through it quite a bit.

David: Um, so yes, [00:22:00] you should do that. However, if you’re on a virtual model, it’s a different model, right? To this week, I’m in l. Next week, I’m in Boston, now I’m in la You know, you’re, you’re bouncing around so quickly that that doesn’t work. Right. So, yeah, sure. Um, you know, when you’re doing that, you need to understand how to build a list very quickly in a market that you’ve just dropped into, because I may go to, you know, Lafayette, Louisiana one time and not be back there for six months.

David: Right. I, you know, I don’t know. I may be in, mostly in Florida, so, um, depends on your model and. How many markets you’re in, you know? So if you’re in four markets and you have four dispo people, I would take one of ’em and put them on, you know, on each city and have them start to build that, that relationship.

David: Yeah,

Mike: yeah. And with your, can you, let’s talk a little bit about dispo managers. So, yeah, I know, uh, I, so I, honestly, of all the deals that I’ve done, I mean, I’ve assigned, uh, lots of properties, but I was more of a, more of a rehabber and mm-hmm. , and then we kinda moved into whole tailing pretty heavy, like way before.

Mike: Yeah. In fact, Tim, Tim [00:23:00] Herridge. Thinks that I created the term whole tailing. I’m not sure if I did not, but, uh, we were doing that very early on, like probably, you know, 5, 6, 7 years before anybody was talking about it. Yeah. Just because we just tested it. I was like, my rehabs were like all out, like they were just amazing rehabs.

Mike: And then one time we sold something that had a bunch of kind of problems on the retail market and it was just this wake up call of like, wow, there’s, there’s, it’s. , there’s someone for everyone. It’s like, Hey, there’s people that only know the MLS and they’re looking for kinda whole s there. And anyway, long story short, but from the assignment standpoint mm-hmm.

Mike: we would primarily, um, I would just have my office manager, like we had a template to follow. We would post ’em on our website and say, just email it to our list through MailChimp or whatever we were using back then. I don’t even know, uh, it’s been so long, but, We didn’t have a dispo manager per se. We would just have somebody in the office do it.

Mike: And, and I know that there’s, there’s also people, uh, like Jason, my partner Jason Lewis, [00:24:00] who has relationship managers that literally it’s their job to call people, keep checking in. Mm-hmm. . So there’s kind of a couple of extremes there. I think a lot of people over the past few years, Didn’t think they needed a dispo manager.

Mike: Yeah, it was like maybe it was their acquisitions manager’s job to also sell it, or an admin or a virtual assistant or something. I know you’re more in the Dispo Manager camp, so let’s talk about that role. Like yeah, what you think is the right fit, and everybody’s gonna disagree or have a little bit of a difference of opinion, but yeah, talk about what you think the right kind of model.

David: Yeah. So first off, I think, you know, acquisitions and dispositions, they’re pretty much, they’re different personality types. We want somebody who’s money hung, not money hungry, money motivated, , right? Money. You want somebody money motivated. Um, you know, if you’re on a commission only structure, you know, you want people that are good with that, but acquisitions is going to ha uh, your person over there needs to probably have a higher empathy level, right?

David: Mrs. Smith, your husband died. you cuz over there on acquisitions, you’re dealing with calamity all the time, right? Distressed people, [00:25:00] distressed properties, dispo, this is where the sharks live, right? Dispo is over there. Like, you want people over there that wanna mix it up with people. , you know, cuz buyers are constantly gonna tell you your deal’s crap and you know, you’re overpriced and you know, because they’re, they’re professional negotiators too, you know, they are trying to push you down as much as you’re trying to push up.

David: So, you know, on the dispo side, I like people. You know, can kind of give a little bit, you know, a little bit of give and take with people and, you know, aren’t gonna get upset when, you know, the first person tells them that, oh, I don’t like that street because it’s a junk street. Well, here’s what I could tell you.

David: The data shows me that there’s been 42 sales within a quarter of a mile. So it’s not that bad. Um, but yeah, I’m, I’m on the, uh, I’m on the Dispo Manager plan. That’s how we run our company. Um, you know, and again, depending upon where you’re at in the, in the terms of the size of your. They may do all of this, they may do some of it, but we will 100%.

David: You know, the way that we, we call it launching a property and it comes from being in the grand opening world of [00:26:00] retail. You know, when a property goes out, a lot of things are simultaneously happening on, happening on our side. First thing is, you know, it’s built out on our website, we use investor lift. We were talking about that the other day.

David: Um, You know, it’s just a good website, but whatever you’re using, right, you know, all of the information, everything that a buyer could possibly need is there, uh, you know, we’ll pull from Prop Stream or Privy or whoever it’s, that you wanna pull your data from. Uh, if you don’t pay for those, maybe it’s list source, right?

David: But every, all the details, the property, the zoning, just, just everything, all of the pictures, all of the videos there, um, you know, there’s a, there’s a great subject line because marketing hasn’t changed. The idea of marketing hasn’t changed in a hundred years. The method of deliverability has changed, right?

David: Mm-hmm. , the first step in marketing is one, we gotta get it opened, right? So whether that’s, uh, an envelope that you’re sending, and we, you know, we used to send pink invitation envelopes because it looks like a wedding invitation, right? The first, the trick is just getting it opened. Um, email is no different, right?

David: I gotta have a good subject line, and I’m embarrassed that I’m 51 years [00:27:00] old and emojis are as big a part of my life as they are , but they’re right. Cause, um, You know, if we all look through our email and scroll through, it just looks like a lot of words. A lot of words. Oh, smiley face, you know, or, you know, eggplant, whatever.

David: Right? Whatever craziness you wanna put in there. Um, I have to stop people and have a, a good enough subject line that’s gonna make them wanna open that, right? So, so that’s really important. But all of the information is there. And then at the end of the email, there’s some sort of call to action, right?

David: Click the win at now button, call me, visit the website. There’s something. So we’re doing that. Um, we’re pulling a list of cash. In and around the area. So the email goes out to people that are already in our database, but maybe somebody new has bought something that I haven’t talked to them. Right. So we’ll go to prop stream, we’ll pull a list of cash buyers, half mile, mile, you know, whatever that parameter is.

David: Um, you know, we’ll skip trace those and then we’re going to send them, uh, um, an SMS blast, right? We’re, we’re doing that. We’re sending RBMs. If you’re in some states don’t like [00:28:00] RBMs, so if, if that’s the case, don’t do it. Um, Our VMs fast. Um, I’ve got our VAs going out and getting into all of the Facebook groups, right?

David: So if this one is in Boise, Idaho, right? I send them to Facebook and they know to go Boise, Idaho investors, landlords, you know, we, we keep plugging in all those things until we find all of those groups. They become a member so that we can, we can post our deal in there. Um, it’s going to Craigslist, um, I can’t, there might be one more, but everything that we’re doing instantaneously, when we launch a property, we only send out properties on Mondays and Wednesdays.

David: Um, within the first hour or two, all of that is going out and none of that takes a lot of time. Right. It, it, you know, it’s a couple of hours because what I wanna do is drive calls into our team, you know, I want when we launch a property or the phone to literally melt. Um, and this happened the other day.

David: We had a property here in Chattanooga. And, um, we emailed it out, you know, r v m did text, blasted it. We did all those things. And, you know, Olivia’s [00:29:00] phone, she could not get off the phone. And the person who bought, it’s a realtor who she knows me, she messaged me like, Olivia’s not answering her text. I wanna buy this property.

David: I’m like, well, cuz her phone hasn’t stopped drinking. That’s the goal, right? That’s what we’re trying to do because it’s easier to sell a deal on an inbound call than an out. Sure, sure. Yeah. Yeah. Um, so we’re doing that kind of simultaneously, that same list that we, we pulled for s m s and R V M. We’ll take that list, we’ll upload it into the dialer.

David: And in between those calls, you know, or until it’s sold, they’re, they’re calling buyers, you know, they’re, they’re doing that stuff. So again, we’re, we’re very proactive about going out and finding a buyer, um, you know, in our market who will buy, buy the

Mike: property. Let me ask you a one approach that you’re seeing in this market, and I don’t know if you ever did this, but in, uh, you know, if you go back a year ago, let’s say mm-hmm.

Mike: uh, before the rates change, before the kind downturn there, a lot of people were selling, um, and they were creating little auction scenarios where, go out to the property, send me your best offer, and they’re gonna take the highest and best offer after 48 hours instead of just [00:30:00] first full price offer wins.

Mike: Right? Yeah. And I think when the market took a downturn, a lot of people went away from that cuz like, I just, you know, It. It actually turned a lot of people off too. Right. And I’m not, I could argue it either way, the power, but you should be able to get as much as you can for each property. Yeah. But it turns some people off.

Mike: Yeah. And where do you think we’re at in that market? I mean, what do, what do you do and what?

David: I’ve never done that. I hate that like poison. Okay. Because I’ve been that guy, you know. That go, that, that puts in an offer on an MLS property, and I get highest and best. So as a real buyer that I freaking hate that, and I know buyers do as well.

David: So, you know, here’s my philosophy. One, we run a high speed wholesale company, right? Like, like I, we have an acquisitions team. I’m pointing like you could see through my wall, but. Like, we’ve got people over there that every day are putting stuff under contract. So you know, it’s like the milk at Walmart, like the old milks at the front.

David: I gotta move that out because more milk is coming. I’m standing on the wave or on the beach and there’s a constant tid of wave of properties coming at our dispo department. [00:31:00] So one, I just detest that, that philosophy, I’m not saying don’t do it, I’m just telling you. All those buyers that you, you, you, you ran up the numbers, they’re gonna remember because that, that’s a, that’s a finite period of time.

David: Um, but we’ve never been on that, that plan. Our deal is, hey, if, if we market up 20,000 and this is our number, then I’m, I’m happy to take it, move that property, cuz I’ve got another one that I need our team to work on. Like, I cannot, you know, toil around on, on this deal forever because not everything we put under contact.

David: Is the greatest thing ever, right? We, we miss the mark a lot, a lot of times, right? You, you, you don’t, there’s something you don’t know, um, you know, whatever it is, right? So there are gonna be those properties where I need to be spending that time to get it moved. So I’m on the plan. I stole, won, you know, in a couple hours.

David: I didn’t. I don’t do anything. I have a great team, but our team sold the property in Louisville, Kentucky for a full price. Um, yesterday or the day, I guess it was the day before, um, she got one offer. We had 20,000 on it. She got one number that would’ve been at 19. [00:32:00] Somebody called like 15 minutes later and you know, offered her the full, the full thing.

David: And we just took it. Um, and now that deal’s done and we’re, we’re moving on with life. So go to the next one. Yep. That’s where I’m at. I, I just don’t like it because I’ve been put in that position. That’s where I’m at. . Yeah. I,

Mike: I get it. And honestly, there’s a lot of, just like we said, buyers said on the sidelines, there’s a lot of people that just stop people that were doing that.

Mike: I understand why they were doing it. I have a bunch of friends. I get it too. I totally get it. Yeah. Um, but, uh, , A lot of those buyers either just leave your list or sit on the sidelines like, I’m not gonna play this game, you know? Yeah, no, it’s, and I’ve said for years as an investor, like if you’re, if you’re going after the highest price, like I’m not your guy

Mike: Yeah. If you want easy and fast,

David: like I’m your guy, . Yeah. I don’t begrudge that. And I, and listen, I had people, you know, when we were coming up in Chattanooga, who I always knew , if I got down to the last. I could call them and they would close and I might only make two or three grand on it, but they were the sure thing, right?

David: Yeah. Um, and [00:33:00] you know, I, we just don’t run the bidding wars. I just, I’ve never really liked that. Um, now I, I have, I have had cases where I’ve literally, it’s just been me showing the property. I’ve gone out and I actually recorded this one time, I had two buyers and they both walked outta the house with me and said, we both won it and I’m.

David: Guys, I don’t know what to do. Um, I guess I could’ve said, Hey, write down your best number. Literally we said, I said, I told my brother was gonna like, turn on the camera. This is gonna be good. And we did a coin toss. I’m like, are you guys both gonna go be good with this? We will let this be determined by a coin toss.

David: And uh, they were. And, uh, one guy bought it. They shook hands and he said, the other guy said, Hey, if you don’t buy it, let me know. Um, so yeah, I, it’s just never been our thing. Um,

Mike: the first time that happened to me. That’s crazy that you say that. Almost the same thing happened to me. Mm-hmm. . Um, and this is one that the seller, we went to show the house.

Mike: The seller was there, which I hate. We always tried to get him out. I can’t remember exactly the situation. This is a long time ago now, this one. And, uh, they came out, they both wanted it. And, uh, and one guy said, well, I’ll, I’ll pay you 5,000 more. I went with that [00:34:00] guy. The other guy went around our. and contracted it with the seller.

Mike: Mm-hmm. , we clouded the title and we ended up getting it, but yeah. Create, create some I will, I

David: guess . Yeah. Yeah. So, you know, with Investor Lift, we have it, you know, it has your asking price and then you can do the win it now. So sometimes we’ll tell people, Hey, this is getting a lot of attention, you know, if you wanna just lock it down, you can do the win it now.

David: Um, and that happens, you know, we’ll, we’ll the win it now be like maybe two grand over. Um, but yeah, for the most part we, we, unless we get four offers at the exact same price, , you know, then we’ll say, Hey, you know, can you close quick, bigger, E m d you wanna offer more? Like, what do you wanna do? But, you know, as a rule, that’s not, that’s not how we operate.

David: Sure,

Mike: sure. Yeah. Well, uh, David, you, you, you, uh, recently joined Investor few? Yeah. I think maybe, maybe four or five months ago now. Mm-hmm. , um, came to the last event and you’ve, you obviously go to lots of events and do lots of things. Yeah. Would you mind just sharing your experience or your thoughts on, uh, investor.

David: Man, I’ll tell you, I, [00:35:00] I do, I’m at a lot of events, probably far too many. Um, I was just really impressed with just the caliber of people that were in the room. I mean, just amazing, you know, the breakout rooms where people have time to, you know, you know, obviously it’s a big group, right? It’s a collection of some of the best investors in the country.

David: Um, but you have the ability to, to get into these small groups and the hot seats and, and really just be, be open about, Hey, here are the issues that I’m having in my company because, You know when, when you sit in your own little office like this, like you, there’s who can you have that conversation with?

David: You don’t wanna have it with a competitor in your town. You don’t wanna bring in your acquisitions guy and say, Hey, here’s the problem I’m having. So, you know, the ability to, to have that, that hot seat or, you know, just to, to talk to other people that are doing the same thing you’re doing. And, um, You know, get advice and, and help is really invaluable.

David: And you know, one thing that a mentor taught me early on was when you go to these events, go there with a list of two or three things that like, if I could just get the answer, To these three [00:36:00] questions, my business will change, right? So we’re always very intentional about going there and, you know, being in those rooms, somebody in that room has figured out what is your biggest struggle today?

David: They’ve already figured it out. And also conversely, there’s somebody in that room has a struggle that you can help with. So really that just that idea of the true idea of a mastermind is something special that you put together. So I, I really enjoyed it and looking forward to all the future.

Mike: Awesome.

Mike: Well, thanks so much for that. Yeah. We’re excited to have you there too. You’ve, you’ve added a ton of value. I mean, that’s kinda how our group works, is Yeah. You come in and you give, give, give and you, you’re gonna get back. I mean, that’s just kind of how it works, right?

David: Yep. Yeah, that’s, I mean, that’s, you know, I’m in a, a couple of different organizations, and that’s one of the things I’ll tell people is if, if you come in here with the, the approach of, Hey, how can I help other people?

David: You’ll be good, right? Because we all have these amazing attributes and you know, in a room of 200 people, there are so many people that are, that are good at so many different things, right? Whether it’s, I need to figure out lending, or I wanna learn how to do storage units, or, you know, a part like whatever it is, right?

David: Somebody in that room [00:37:00] has the answer and they’ve already done it. And, you know, you’re that lifeline for somebody else too. So, you know that that’s, that’s just all the, always the way we’ve approached it.

Mike: Yeah. Well, David, you do a lot of amazing things. Talking about a lot about dispo today, I know you do some dispo training.

Mike: You have transaction coordination business. Yeah. You put out a lot of great content. If folks wanted to connect with you, where, where, where do they go to learn more about you?

David: Yeah, the best place is Instagram. And you know, my Instagram is it handle, I’m never really sure. Right. Is it the whatever Instagram, the, the, whatever it is.

David: It’s at David Olds, r e i. So David Olds, o l o l d s r e I. Um, and that’s for Instagram. And our website is the same thing, but yeah, Instagram we’re, we post a lot on there. We do a lot of lives. And, um, I still answer all of my own messages. So , there’s. Awesome.

Mike: Awesome. Well, thanks for sharing so much today.

Mike: We’ll add links down in the show notes here for anybody that’s listening that wants to connect with you. So appreciate your time today

David: and your insights. Oh man, thank you so much for having me. I really appreciate it. Awesome. Awesome,

Mike: everybody. Hope you got some great value dispo. I hate to say that it was, I won’t say that it was [00:38:00] never important, but it’s more important than ever right now and being good at that is the difference between maybe survival and thriving right now.

Mike: So make sure you, uh, take some notes from this and, and go apply that to your business. By the way, if you haven. Ever talked to us before about investor fuel. We have some amazing things going on. We have an amazing community. We’ve been running for at this 0.5 and a half years, and we have a lot of new stuff coming up.

Mike: So if we’ve talked before and you don’t know some of the new stuff we have going on, it might be worthy of another chat. You’ve never talked to us. We’d love to talk as well. Just go to investor fuel.com. You can book a call there with our team and learn a little bit more about investor fuel and see if it’s a fit for you.

Mike: Until then, we’ll see how the next show.

David: Are you an active real

Mike: estate investor? If so, and you want to latch onto the power of surrounding yourself with over a hundred of the nations leaving real estate. All committed to building stronger businesses and living richer, fuller lives. You should jump on a call with us. To learn more about investor fuel, simply visit investor [00:39:00] fuel.com

David: to get started.