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Show Summary
In this conversation, Chad McCall emphasizes the importance of genuine conversation and active listening in sales. He shares insights on how understanding clients without visual cues can lead to better relationships and successful outcomes. The discussion highlights the need for respect and performance in every client interaction, regardless of their financial status, and underscores that success has no time limit.
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Investor Fuel Show Transcript:
Chad Mccall (00:00)
the whole goal for what I was doing, Dylan, I was the shark in the water. I was the killer of real estate back in the days, you know, 20 years ago, 10 years ago, to that point. And I cared about nothing but the houses. didn’t care about the people. didn’t care about anything except for closing the deal. Right. That’s, that’s what the, you know, the space created and the environment pushed everybody to do that, pushing and hustling and hustling. And so I was like, you knowthere’s got to be a better way to do it. And I realized, and there’s a whole backstory to that, and we have a longer time one day, I’ll tell you, but.
I was realizing there’s a family attached to every house that I’m talking to.
Dylan Silver (02:11)
Hey folks, welcome back to the show. Today’s guest, Chad McCall, manages notes and rehabs for investors all over the world. And prior to that, he owned a call center for 20 years, over a hundred million produced in telesales. Chad, welcome to the show.Chad Mccall (02:30)
It’s good to be here, Dylan. Thanks for having me.Dylan Silver (02:33)
I always like to start off at the top of the show by asking guests how they got into their segment of real estate, in your case the notes space, right, and the rehab space.Chad Mccall (02:45)
Man if I backed it up and told you how I got really started I’ll do a really quick little blurb on it is I bought my first house at 14 years old Dylan and you’re gonna be like what the heck that doesn’t sound even possible well in 1991 I was in a car accident and to make this I’ll speed it up a little bit I Got an insurance settlement from this car accident. I’m from a very poor family in Western, North Carolina single mom household I took that money and when you’re from where I’m from if you’re this kidYou look after mama and that’s what I did is anytime someone comes into some money, you buy mama a house is kind of what you, you you raised. That’s how your values and morals are. And that’s what I did. I bought my mom a house at 14 years old and I was able to later sell that house and put myself through college and rented out a house by the room, be able to put myself through school and later, you know, what’s what catapulted me into later in business is the two properties that I’d sold. You know, that was giving me the capital bear to go start my own.
invested later in 1998 when I got started full-time in this real estate game. So 1998 full-time started this and I never looked back since.
Dylan Silver (03:54)
Now we were talking before the show here about your business and telesales working for so many people how you had really worked with so many folks that people would know ⁓ at the same point in time that you had a real estate portfolio.Chad Mccall (04:11)
Yes, I did. You know, I used to work with a lot of the top investors out there in the world. Some retired now, some are still going. Some of the most famous ones now to date, either out there that are influencers or students of the people that I know and watched them grow up doing their first deals. That’s how far I go back. It’s where this gray hair comes from, Dylan. You know, it didn’t come from, that’s not fake. It’s natural. So it comes with some stress and growing, but before the internet, you know, that call center taught me a lot too, Dylan. It taught me prior to, you know, the internet things.It teaches you marketing. It teaches you sales. It teaches you people. It teaches everything that you don’t learn today because now we have all these things that have came in AI and know bots and chatting and you know even email. know back when we first started no one had an email account. We had one corporate email that would give the sales team. Now imagine that
you don’t have an email address. You have one that everybody’s using right. So that’s how far things have come in technology and then now with AI and you know you’re getting
It has changed so much, you learn people and you learn.
the way of life that people have and the data is what gave my call center the most value. Dylan is the data that you’re accumulating over those years about people and demographics and locations and needs and wants and problems and the good. And you really can navigate your entire business off of data. if you listen and the most true data to me was coming right from the people, right from the mouth versus someone else telling you that, it’s firsthand data in that world.
versus second or third hand. That’s what I learned.
Dylan Silver (06:35)
Right.You know, I think when we talk about the ⁓ distressed seller space, this is something where we were talking about this beforehand. People look at it very much, you know, here’s an offer, take it or leave it. And it’s kind of just the way that it’s set up. It’s like people are potentially losing their home. And what can they do? What recourse do they have? They’ve got to sell.
or they eventually got to leave the house. That’s the conventional way of thinking. I’ve always thought there’s got to be a better way to do this. I’ve had maybe two people on the show who’ve talked to me about ways where people can stay in the home for a limited period of time. But there’s a much, I would say, friendlier way to do business where you can effectively partner with those people. And that’s what you’re doing in the note space.
Chad Mccall (07:28)
Yes. Andthe whole goal for what I was doing, Dylan, I was the shark in the water. I was the killer of real estate back in the days, you know, 20 years ago, 10 years ago, to that point. And I cared about nothing but the houses. didn’t care about the people. didn’t care about anything except for closing the deal. Right. That’s, that’s what the, you know, the space created and the environment pushed everybody to do that, pushing and hustling and hustling. And so I was like, you know
there’s got to be a better way to do it. And I realized, and there’s a whole backstory to that, and we have a longer time one day, I’ll tell you, but.
I was realizing there’s a family attached to every house that I’m talking
These aren’t all single people. Maybe you’re talking to one person in the family, the husband or the wife, the decision maker mostly, but there’s people attached to that. There’s families attached there. There’s schools, proms, know, there’s family members living down the street could be family land, whatever else there’s things attached to these properties that investors don’t know. You know, a lot of times investors are going out there. I want to buy your house for cash. I can close quick. And you know, they use things like
manipulation, persuasion, know, bullying. There’s different ways that that can be interpreted by a person when you’re forced to make a bad decision. It’s not the best decision for your family at the last possible minute. And then people leave homeowners hanging. That was where I came in, Dylan, is I got so many calls at the last minute for people saying this investor said that you’re buying my house. This person was this or a great talker. They met with me. They did this. Then they passed me on to somebody else that is, and now I’m going to sell it at auction tomorrow.
And you would believe in the people that I’ve had tell me this. And it’s heartbreaking realizing there’s, there wasn’t one, Dylan, there wasn’t two. There were hundreds and hundreds of people because everybody made real estate investing think be so simple. You know, the whole selling wasn’t around more than 15 years ago, right? Whole, I mean, just think about it. Whole selling is about as new as Uber and, ⁓ you know, the Grubhub, DoorDash or whatever else it’s brand new. So you gotta think about it. It hasn’t been tested, you know, over
Dylan Silver (09:13)
Yep.Chad Mccall (09:34)
time going to the masses, meaning even if it was around the masses now where you can have kids learning how to wholesale and flipping contracts and you’ve got people that don’t have tenure in the business and don’t have lot of experience in transactions locking properties up under contract and getting paid to be able to do it. So you have so many people doing it, not that it’s wrong, it’s just it hasn’t been honed in enough where you can build a legitimate long-term sustainable business from the methods and strategies thatDylan Silver (09:54)
Right.Chad Mccall (10:04)
implementing.Some people do a deal, make 50 grand on their first deal, but they’ve never made 50 grand in their life. It sounds unbelievable. Can it happen? Yeah, but it’s not a consistent model for someone to go out there. so attached to that 50 grand had to come from somewhere, Dylan. That 50,000 was the family’s 50,000 that they gave up. So what if that family got nothing and you got $50,000? I looked at it as how’s that fair? And I was like, that’s going to be the depth of wholesaling in my eyes when it
gets questioned and keeps going so much because everybody’s trying to do it. Taking people’s houses, taking the equity from them, just like in subject two and things where you’re taking a lot, you’re not giving a lot back. It’s not reciprocal. And I really believe my business is going to be a reciprocal relationship where I help a homeowner stay in the property while everybody else is saying go. I tell them to stay. And that’s what’s been the most successful thing for me in the last decade.
Dylan Silver (11:34)
you know, hey, I see it from that side entirely, right? So I was in the distressed space, right? So I was a wholesaler, worked for a company, worked for myself. Then I got in as a realtor. Realtors and wholesalers don’t necessarily like each other. They may pit themselves against each other. think wholesale might have been a dirty word in the real estate school that I went to. But what I’ve seen is thatThere’s a lot of, would say, animosity within the real estate space, not even the consumer side, just in the operator side, because you have people who say, well, these are people that are inexperienced, they don’t know what they’re doing, and that may be true. And I’m a realtor now, so I can definitely say there’s some of that on the wholesale side. But also, too, it’s not easy to make money in real estate, or money in general, I would say.
And so I’m also a fan of folks getting in to real estate however they can get into. ⁓ Can someone who’s just getting started do the note strategy that you’re doing, or would they need to have like a large nest egg?
Chad Mccall (12:47)
Well, I, you say note, and I look at it as that confuses a lot of people out there too, Dylan, when they hear that creating a note or anything. So what I want to make it so just clear for anyone watching is what we’re doing is we’re going to create another mortgage just like the mortgage they have, right? So think of it that way. If you tell someone I’m going to give them a note, well, the homeowner that’s there, that’s a borrower potentially, they may not even know they have a note.they may say, I have a deed of trust or I have a mortgage, right? And you say, no, there we’re off on the wrong place just because of terminology, right? So when it gets down to it, whatever that person has, we’re just going to give them one more of that, or we can even take over their first one deal. That’s another good thing. Depending on the property, let’s take over the first mortgage, pay it off, right? I’m a brand new one if we have to. But again, you got low interest rates out there. And what the difference of today’s market,
is the low interest rates on those first mortgages make a second mortgage affordable. And it’s crazy to believe that. You can do a second mortgage interest only and add that with the first mortgage low rates at 4 % or below, and you still have cheaper than market rents in over 85 % of the markets in the country, Isn’t that crazy? An interest only second mortgage combined with a standard 30 year first.
and you’re still lower than market rents almost everywhere. Now, here’s what’s gonna happen. Rates come down, people work on refinancing and getting things out of that. That’s the other piece about it, because I don’t just create a new mortgage for someone. It’s I’m creating the ability for them to stay, fixing, paying their back payments, paying off credit cards, paying off cars, paying off whatever’s gonna lower that monthly outlay of finances for someone, so they have the ability to afford their house. It’s their home.
then they can be in control, Dylan, of what they want to do with it when they get their head above water. That’s what’s the most important thing about it. When someone’s above water in that transaction, they can breathe. Now they can sell their home if they want to with the realtor that they like to talk to them, or they can fix their home up, which I step in and I do that as well for them if I need to to help them get more money for the house at resale. We can do all of those things. So when he says, if somebody can get involved with nothing,
Yes, someone can get involved without a large nest egg. And here’s the easiest way.
Just let me do it. Let me do it for you and pay you. I will help the homeowner. can speak from the position of financing authority. It’s not third person money. It’s not he said, she said. It’s my checkbook closing the transaction. I don’t have to borrow that money from somebody else to get this and get proof of this and proof of this, proof from all these other people in the transaction. I work directly with the homeowners.
I work directly with them to help them stay in their home. We’ve been successful enough, almost 10,000 families doing that same thing.
Dylan Silver (16:11)
Uh-huh.I want to ask you maybe a granular question. Don’t give away all the gold here, Chad, but just give us a nugget. on a granular level, if folks have back payment, medical bill came up, right? They couldn’t make their mortgage. How is this working for them to get up to speed? Are they making the same payments that they were paying the mortgage company to whoever is the new holder of the note, the deed, the new mortgage?
Is it sometimes there’s a period where they are not making any payments so that they can get caught up in their other bills? What’s the scenario? How does this play out?
Chad Mccall (16:53)
good question.The great thing about this is there’s flexibility. Now, I’ll give you a quick example of when you buy a home, when you get a first mortgage, right? You’re closing on your new house. Your first mortgage payments due in two months. That’s basically, got, you can waive your, so you got two months of 12 months. You basically only have 10 payments that year. Did know that? It’s kind of crazy, right Dylan? So now you think about it. So if you got a $2,000 a month mortgage payment, that’s $4,000 you saved your first year. Divide that $4,000 up over the next year that you just saved. You can subtract that.
down on your mortgage payment so you thought you had you know a large outlay but now if you think about it my mortgage payment wasn’t $2,000 a month that year was it?
No, you do the math on it. Your mortgage payment was around 1600 or whatever, $1,700 a month. people miss it because they don’t account for that extra money, those extra free time. That’s the same with creating a new note. If we’re able to create something to give someone some time, we’re giving them a little bit of a grace period to get started too, just like in closing a loan. So they’re going to have a little bit of time there. We’re freeing them up and reinstating their existing first mortgage in most cases as well. So that gives them some free time. So you think about it, when someone starts with how
I’m helping them they got a two-month cushion almost Dylan to get back on their feet because we’re clearing up the default the foreclosure everything else and they’re starting a new loan they’re adding alone so now what can a average family save in a two-month period from doing that can they save enough in 60 days to start and make their first payments on time with their new loans
and a majority of all the people, 97 % of the people so far have been able to do that. If they don’t and they can’t and they’re not working, we don’t let them engage into a new loan deal. We work on a different type of strategy. It would be partnering with the homeowner, fix their home up, get them into a different property, move them somewhere else, take their equity, roll it into another house as a down payment. We can do so many other things, but having someone understand their options.
Dylan Silver (18:48)
Yeah.Chad Mccall (18:52)
is the only difference. And that’s why I say, me do it. Let me let the homeowner understand their options, because that’s the biggest part of this industry is people don’t explain all the options that someone has. An investor will only explain what’s best for them. And it’s unfortunate in a lot of cases, because I’m on this end hearing what someone thought was going to happen and didn’t. And then they call me at the end, Dylan, after everybody’s pitched these people every single day. Someone called me and pitched me. And I was like, great. Get all the pitches you want.If nothing works out for you, call me at the end. And they all call me at the day or two before, know, Dylan, and they’ll say, hey, you were right. How can you help me now? Okay, grab that piece of paper. Here’s what we wrote down before. You see that? Is that going to work? Can you afford that payment monthly? And that’s how I work with someone. I don’t choose payments for people, Dylan, the people choose their payment. And that’s why I call it people before profit. And it works out.
Dylan Silver (19:44)
It’sjust tremendous stuff. mean, there’s a affordable housing crisis right now all over. ⁓ unfortunately, I think there’s a lot of different strategies that are being thrown at the wall. It’s kind of like throw it at the wall, see what sticks. You hear a lot of chatter about, you know, 50 year mortgages. You hear a lot of chatter about, you know, ADUs, alternative housing, tiny homes. ⁓ But how can we keep people in their homes? You know, there’s
thousands, most people who are not in the real estate space are unaware of this. There’s, you know, thousands and thousands of people who are losing their homes every month across the country. You know, even in one state, you’ll have hundreds, right? And so if we can keep those people in their homes, that’s ⁓ going in the right direction and make it, you know, so the person who’s facilitating that is incentivized to do it as well. ⁓ Chad, we are coming up on time here though.
Where can folks go if maybe they have a deal they’d like your feedback on or how can folks connect with you?
Chad Mccall (20:43)
⁓ easiest way, just email me or you know go email me [email protected]. C-H-A-D at C-H-A-D McCall.com. That’s the easiest way and we’ll talk about the deal but mainly we’ll see about how to help someone. You know that’s your interest. If you’re one of the people that’s looking to help and be profitable at the same time, that’s something I can help you with. And if you’re serious about it, let me know. I’ll talk to them.Dylan Silver (21:08)
Chad, thank you so much for coming on the show today.Chad Mccall (21:10)
Thank you much man. Keep it up, buddy.
