EYL #50 No Limit feat. Max Maxwell

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All right, guys, welcome back, ey l. We got a very special edition. Then I'm excited to I'm always excited about our episodes, but some episodes I get a little bit more excited.

Especially when it's like a learning episode, like we're all gonna learn to that everybody gonna.

Learn for sure, for sure. So before we start, we gotta let you guys know update to our grand weekend in DC. So if you follow our on your leads, you know that we're doing a DC takeover December seventh and December eighth, and we're doing a workshop on December seventh. We're doing Mobile Home Investing on mobile home elite. We're doing stock investment Wall Street schrap. And we added real estate to where Rashaanna Scott shout out to Rashawna Scott Town. Yeah,

Be in DC all weekend too, so Saturday night will be out and then right before the game we're gonna do a little little networking happy album for the people out of town.

Yeah, so check us out in DC for sure. So all right, I'll jump right into it. We have an esteemed guest that people have been asking us about one thing about the ernest if you like to call our supporters, they don't play. They don't when they want to see somebody that like they're on it, they're like very very aggressive about it, and they've been acting actually today they're like, you need to get Max Max Fell on this podcast.

All right, it's crazy. I'm gonna send you a message after this man like.

Okay, you've been highly requested.

That's dope.

That's marketing yourself.

It's crazy. Is that listened to this podcast for a long time. That's that's humbling.

That's like, that's dope that you actually check us.

Out like day one, Yeah, the original episode.

Yeah, so so my man Max Maxwell, he has a very interest in intriguing still. I like people with good stories too, So if you're not familiar, wholesaling is something that we haven't covered. When it comes to real estate. Real estate is vast and there's a lot of different ways to make money in real estate. You can buy a hold, you can flip, you can rehab. There a lot of different ways to make money. But wholesaling is an intriguing way to make money in real estate because

I think Max's biggest quote is it's simple, but it's not easy. Yeah, it's it's definitely simple. And I think every topic that you guys have covered in real estate before wholesaling is a foundation of all of those investing methods. Like nobody buys a rental property at the actual price. You can't buy a flip for more than it's worth, right, so you can't do a rehab and have more money in it than it's actually worth.

So you gotta be involved.

Every single one of those properties that was bought was bought from a wholesaler.

Yeah, so I'll give you a quick rundown in three years. It's very quick rise to prominence. So that's an interesting guy. So first, first of all, he's a veteran. Yeah, thank you for your service. Thank you for a war veteran. He's a war veteran with the Air Force. He also, I just found out, is dyslexic. Yeah, which is that's that's an interesting conversation that I hope we can have

BAK America please give him to now he runs.

A multi million dollar operation. He has fourteen staff members, Yeah, fourteen, just got office space. We just got eight thousand square feet, eight thousand.

Square don't let that go over your head.

A bunch of different companies under your umbrella, do public speaking, you do, got your YouTube popping, You got your real estate company popping. You got a bunch of different things.

Has his own podcast, yeah.

Podcast, and he's a pilot too.

And wait, wait, wait, bigger than that, he's Jamaican.

Yeah, come here, come here, shout out chicken.

Our cook just hit number one in Jamaica. Everybody knows choice you're making. So anytime we get a guest, that should making, which we've had a lot of Jamaican guests.

Actually, no coincidence, no coincidence.

So first and foremost, so thank you, thank you for joining us.

Sure, I appreciate it being here.

Like it's it's like I do a lot of podcasts, it's part of my job.

But like coming here, I was, I flew to New York just for this. Wow, So it's not too many podcasts. I'm going that. I'm actually excited to be you know, it's got cool though. This is gonna benna, It's gonna be a good one.

All right, So can you tell us how you got into whole selling, because, as you said off camera to us, you said you got in because it was broke. You need to make some money. Yeah, realistically, right, So how did that path go from you? Because you, I know, you went to a military at seventeen, so I was like first out of high school.

Yeah, like a couple of days, a couple of months, a couple of weeks after graduation, graduating, Yeah, I would graduate like May something, and then I was gone by July.

How long were you in the military?

Four years active? Four years a guard?

Okay, so what was the path from dad and then coming back home and then going into wholesaling.

When I got out from my active duty, I actually got my real estate license and it was one of the last times in the state of North Carolina where you can get you where you can go to sell school and broker school back to back and then get your brokerage license, which means you actually open up your

That then they was gonna buy.

So then I opened up my own brokerage called Infinity Property Management Investment, and I started working with an investor. A thirteen million dollar portfolio landed in my lap one day dealing with the mortgage broker. His friend had dis large and he was tired of the property managers he had.

So I got that account and it was like eighty.

Five ninety percent of my business, Like I depended on that to eat, you know, at least what I thought was money back then.

And then you know, two thousand and eight, heaven.

But before that, the guy started selling his properties off and so he's seen something. I don't know what he's seen, but lucky to him me seeing it. And then I a lot of business, and that's when I moved to California. My cousin which is from he's actually from Rye, from from Mount Vernon area at some Yeah, so he was playing soccer in La Galaxy and I ended up moving with him in La and just lived out there for a little while.

Then I got a job in marketing, but it's a traveling job.

So I did that for a while for three years, and they got another job marketing, doing experiential marketing, which is basically like, you know, we were in charge of activations for big brands, like when Verizon would partner with the NFL, we would be in charge of setting up that campaign and making sure it went well.

So big, big, multi billion dollar companies.

But I was dissatisfied, you know what I'm saying, like you just don't have the hustle. And in between that, I did a lot of things, like I started a lot of stuff. My dad had a restaurant. I had a restaurant in Maine at one point where it was just yeah, that's where I met Dave's brother. But Dave's like he runs all my media on my camera stuff, and so I'm not dame for like ten years.

But you know, you know, and it wasn't I didn't put money and it was a sweat equity.

It was it was a failing restaurant that I met somebody and was like, yo, I can flip this, give me an opportunity.

And we did that.

It worked, but then I didn't really get what I was supposed to get out of it. And then you know, did my corporate job doing marketing, and decided that I wanted to solve a problem inside of the marketing world, which is create an app called FASTBA FASTBA which means

We hired them off Craigslist.

And Facebook, right, so they make it like twenty dollars an hour though, right, So it was what happened was you have an eleven million dollar.

Contract and you're hiring twenty twenty five dollars hour staff off Craigslist. That don't make sense.

So I decided to come up with an app that allowed them to for all the brand ambassadors to sign up and whenever a job was available in your area, you can apply right there.

And you have ratings and blah blah blah all that stuff. Right.

Anyways, I didn't get the right investors. We ran out of money. Here, I am flat broke.

How old were you?

I was just thirty, Okay, okay, flat broke.

But you know at thirty, you know, with that transition from the twenties to the thirties is a big deal.

Like a man at this point, it's like life is posing in on me.

Yeah. Ig once said being broken thirty when you broke it thirty as serious, you broke it twenty five. Man, you got time thirty serious.

It's like it's what Pod said too.

It's like a man's greatest time to create is between twenty five and thirty.

You guys haven't created about thirty. It's gonna be tough, But I defeated all that. That's a lie. It's a lot living proof here.

Yeah, because at thirty now these days you really just know what's going on.

Just forget it out. All your failures now equals up to what should be like who you are. So at that point, I have to move back home, right, I got a Jamaican mother coming back home, really back home? Yeah, yeah, back like I had.

I had to move back with my mother, and I'll be honest, it wasn't that hard because your mom always want you around, of course, right.

That's the same thing shout Alice yo, Cololude dumpling, and so fish, getting that everybody put on thirty pounds that every Sunday dumplings is fried boiler.

So I like fried. Can I take one or two on the side, Okay, okay, get your green bananas too, always sweetland. But y'all.

But you know, for me, moving back home was kind of depressing. You know, you I've been home. I've been out since I was seventeen, so you're talking about twelve thirteen years I've I've been independent. So having to move back home not really conducive to having a girlfriend because you live home with your mom.

Nobody's coming back.

You're not.

You're not. Why go to the club, nobody's I'm not going out. I'm not going nowhere. You can't come back with me.

And the top that off, I had a two thousand and four Volkswagon Jedda that had a bad starter, you know, so you got to hit the starter with the hammer and all that stuff like that. So it was just like a bad time in my life. Man, you know, it's funny thing, right, Yeah, So it's a bad time in my life. And then you know, a friend of mine, somebody knew from younger days. His dad, you know, was always rich and we kind of knew that we didn't

Even you at this point the wholesaling was a new concept.

Or was something a brand new concept, Like I've heard it before as a relator, but you think it's fake. I think it's like a scam exactly because it don't sound like scamish. But I end up locking myself in my room for three weeks listening to podcasts like the Goats, like you know, Sean Terry and all these guys.

And and.

Three weeks late, I went driving in my old neighborhood that I moved from Portchester to Salem Woods in North Carolina, and on the same street I grew up on was a house on a corner that was had tall bushes, tall grass. And from there I contacted the owner and like a week or two later, I made fourteen thousand port Chester, New York. Well, I moved from Portchester into North Carolina.

Okay, house, Oka, gotcha?

And that fourteen thousand was like, it was like, you couldn't tell me it wasn't a million dollars right right, because I mean from having negative money in your like, And when I went to drive, let me tell you, I remember this. On Peacehaven Road and Country Club Road, there's a shell gas station. I put my card in

And I was like, that's it.

At that point, that was really all the money I have, and I knew the bank wasn't gonna let me use that card anymore. And I found that house and just going and going and going, and then I got the deal closed. And it's simply what like wholesaling is is you find distressed properties and you put them under contract with a purchase an agreement, and you agree to purchase it at a certain price. Well, now you have this

So you're going to You're going to find somebody that can buy it.

Yeah, So I put it on Facebook marketplace. I didn't know nobody, I ain't.

Don't talk no rich people then and use your research. So that weekend, that same weekend I got it.

Somebody agreed to buy it for fourteen thousand dollars more than I had it on a contract for.

So all right, So in the next time, we're going to break down wholesaling. But before you even go into the details of wholesaling, just to kind of get people like me who are slow learners a quick overview of wholesaling. So wholesaling correct me if I'm wrong. Is I go down the street and I see a property, right now I can draw up a contract and be the owner of that property without actually owning that property.

So you won't you won't actually own it, but you will have what they call equitable interest. So you agree with that homeowner to buy the property. Let's just say a house down the street for thirty thousand, Right, you agree it's worth one fifty, but it needs a lot of work. And the person is like, yo, I inherited this home and it used to be a rental property. But you know whatever, you put it on the contract

You now have equitable.

Interest in that property until that time expires, and then you sell that to somebody else.

Yeah, so you in that timeframe you got let's say it's the end of November, you're giving yourself at least fourteen days to find somebody.

Yeah, gotcha.

So all right, thirty thousand. Now you try to solve fifty.

Thousand whatever extra you can get for and what the difference is, what you make? Yeah, on the of the differences, what you say, So if it was fifty, then you made twenty thousand on that deal.

Correct, and if you can't sell it, it just expires.

It expires.

There's a little bit more we can get into more detail of what you can do if you can't sell it.

But yeah, but.

You're not technically on the hook for like paying thirty thousand dollars.

No, not if you do it the correct way.

Now, there's an ethical way to do anything, and there's an unwethical way to do anything, right, So I'm gonna tell you how to do the ethical way of how to how to get it on a contract the correct way.

All right, all right, So in the next second, we're gonna go into everything you need to know about wholesaling real estate.

It's gonna get all right.

So now we're gonna go into some all right wholesaling one on one. Right. So it's a couple of things that I had looked at in preparing for this interview. So when identifying your market, right, So I so you even talked about it as far as like your.

Zip code, Yeah, that granulin all right.

So I guess for somebody that wants to get involved in wholesaling and they're just getting started, like how you just got started, you have to formulate a game plan before you do anything in life. Right, So I guess the first game plan is understanding your neighborhood. Is that correct?

Yeah, So understanding like your area, your city, and like every city has what they call gentrification, right, Like what happens is you have neighborhoods that are going to transition into mid class likeness. That's what gentrification is. So that's gonna happen all the time. Whether you're a part of it or not is up to you. So essentially what happens is you need to know what part of your city is up and coming.

That's all it means.

And once you find out that part, whether you can do visually like driving around because you know your city you've been there since you were a kid, or you can use technology which we use list source and do a free method of finding this.

You then find what zip.

Codes are hot, and how they do it is they say, all right, how many cash transactions has happened in this county and then we break it down by zip code and then the ones that have the most cash transactions that mean somebody's buying these properties follow the money.

Cash transactions, like somebody's buying a home and cash cash Yeah. And so by doing that, you know, if more people are buying homes in cash, more affluent people are moving into neighborhood.

Yeah, because what happens is when somebody buys a house in cash more or like, there's no financing involved, that means it needs to flip.

Right. So because you can't really buy flip property with.

Bank financing, they won't they won't, they won't, and they won't loan you money on something that needs work. The bank is never going to take an upside down position on anything.

So what's what's the app called lip sort list list source list source Yeah, and I have a video like it goes more in detail but list sources of things that gives you list of anything kind of you want about people. Right, but you can find out the hot properties or the hot zip codes on this way we find out how to do once you've mastered your area.

One of the things that you talk about is driving for dollars? Can you talk about that technique and the interest of that.

That's how I got my first deal was driving for dollars. And that just basically means you're driving around looking for distress property physically distressed, right, and these.

Are Yeah, it could be like your gutters are hanging down.

Nope, somebody hasn't cut the grass. The bushes are high, old junkie cars in the driver that haven't moved. Now what happens is we see these every day, but your mind has already been trained to block these out. I know, if you untrained yourself and looked, actually looked, you'll see houses as Yo, the house been there for ten years.

Ain't nobody ever looked at it? Because I really trained to see, like, yo, that's the nicest house on the block, correct, and you go past the ugliness. It's just the way way we look.

At I mean, even as a kid, I remember being on a school bus and you can always tell, like the house is the worst house on the neighborhood. They never cut the grass, they never the paint's always chip. But growing up, you just thinking that people don't care about their home, thinking that maybe nobody lives there. Correct, maybe it's distressed property.

Correct.

So once you find that distress property, you need to find the owner. And so my buddy Dave Lecho created a map called deal Machine, which allows you to drive around, take a picture of the property, and it pinpoints it and it actually will send a postcard to the owner.

Asking if they want to sell it on your behalf on your behalf for you, yeah, with your with your.

Number on it, so you can customize this postcard. So, but that that's like fairly new technology. When I started, they didn't have that. We had to go around taking screenshots of drop pin drops on like Apple Maps or something like that, and then go back home and search who owns it.

So we got we got the property and were driving dollars and then you had something called skip tracing.

Yeah, so that's important. So skip tracing essentially where that word skip tracing came from. So I used to be a bounty bounty hunter, bail bondsman. Yeah, that's like them better than TV show. So skip tracing means that you're skipping a trade, You're you're tracing a skip. Essentially, what that means is somebody who does not go to court is considered a skip and you need to trace them down. So that's where a word comes from. But now we're

Own houses that we can't find them.

So essentially what happens is you find out how with the tall grass, you take a picture of it, you write down the address. You need to know who owns it, So you go on the county wreckers. Every single property in America is owned by somebody or something, right, So in every county there's a tax assessor's website, right, so I can look up to who owns any house in America.

Their name and address.

Did you get this from military training?

Like No, it was just something that we developed as bounty hunters.

So you flipped it because before you were looking for people that you actually had to arrest. Yeah, it's flipped it into it. Now I'm looking for the person that owns this house. I need your number. I'm calling you up. That's it went off topic a little bit. When were you a boundy hunt?

Yeah, you got mad, I got ten, I got ten.

I used to have a car lot. I used to have all types of stuff.

Man, I was a bounty hunter in between while building that app and getting in the in the real estate.

Wow.

Yeah, And it actually traveled into like I'm still licensed. Yeah, I'm still licensed a bound here because the job. Yeah, already, because I had to have I'm still a licensed bounty hunter and I'm still licensed bonds because I got access to data most people don't get.

I get the same data. And you've leveraged it. Yeah. I leveraged that small you know, license into me.

Now you know what the thing I like because I got a lot of our guests have similar stories where they've had troubling times and he had to like figure things out and then a lot of our guests have seen similar stories where they they use things in their past to help them. Like you ever heard John Henry, Yeah, of course, John Henry shot out to John. He was telling you know his story. He was a dormant dot at the hotel and he came up and he started

And that's why your failures are your biggest successes because that failure taught made me make millions. You know, you just put me on and put me in a different category.

And that's that's point for people to understand too, because a lot of times everybody's doing something and even like your path to success might be totally different from what you're currently doing, but you can still use what you did in the past in some capacity to help your success.

In the future. Absolutely. Yeah.

So now we go at that, we got the address, how do we get the property under contract?

So you're gonna call a person and you're simply gonna have a conversation. A lot of people this were a lot of people fall short. People hate talking to people that.

They don't know.

Elevateor script.

Yeah you So we've developed a lot of scripts over the time. But it's real simple. Immediately, you need to identify who you are. Hey, my name is Max. I'm a local real estate investor. Right that puts their guards down. But if somebody calls you and says, hey, a moment of your time, Yeah done, I'm hanging out, you ain't eve getting past that. Especially in New York. You're not getting past that at all. You might even get pick up banging on you.

Yeah. So then somebody's intrigued. Okay, your real estate investor.

I was going to pass the property down on one two three Main Street, and I think you may own it. I was wondering if you interested in even selling at all.

That's simple.

You're gonna get yes, no, or maybe, or you're going a lot of f us in between there, right, so or you got the wrong number, right do you?

Well? Do you know who owns that property? Oh?

Yeah, I owned that property? Okay, well great, are you thinking about selling it? Well, I got it from my mom and I actually live in the city now, and you know, I don't. It's need some work and I really don't have you know, the time, and I don't want to keep paying the taxes. Okay, Well, I'm a real estate investor actually specialize in buying properties like this. Would you be interested in the cash offer? Actually I would be, And then that's when you start that negotiation.

Then that starts.

That's called anchoring, giving somebody, that making somebody give you a price to anchor themselves on.

And that doesn't happen just in you know a lot of people think that can't happen in the fluent neighborhoods.

But you said all the absolutely yeah looking yeah, I mean for us in the South, like a two hundred and fifty house is a nice neighborhood, right, So I want a couple of those right off of people that you know, just it happens a lot.

People inherit things that they don't want. I mean not in our.

Culture, but there's a lot where people like really will inherit a quarter million dollar house was mak Ers and be like, oh, I live in Denver, I don't want to go back to mom's house.

I remember having Christmas there in ninety three. I don't want to try to. I'm not trying to go back.

So things like that, and then just there's so many different ways where people don't want a house.

It's like a car.

But it's pretty common, like you said, not in our community, unfortunately, Yeah, never happens. It's pretty common in other communities.

Sure you'll be surprised, but you know, actually it happens more than we actually think in our community. We just don't realize, you know, like because it's considered the hood. So you don't want Grandma's house, right, and you just let it go for taxing Linquin, and then somebody like me comes and buys it for ten thousand dollars.

Yeah.

So as a wholesale the person you're always offering cash offers.

It's always had to be cash on Yeah, because no bank is going to find it.

Yeah, so you got to go find somebody else that's in the business of flipping property.

So we're telling private or hard money loans typically, yeah, they can have access to private or hard mini loans.

Private is through relationships.

Hard money is going to be through your resume essentially, right, you know you flip seven houses this year, of course, will loan your money because you know what you're doing. Private money is based off of Yo. I know you you got some money sitting in your IRA and you want to put it to work. But yeah, you want to find that person that makes his money through flipping. You know, one thing I understand is that people have money, they got to spend it, right, So it depends just where you at on that.

Food chain, and people that have money always want to make more money.

That's how they live the eye quadron of day life.

So we got now, we got the contract. Now we got to get to.

The closing before so I had a question. Sorry, So this essentially is cold calling when you're people are because very few people understand cold calling. I've done cold calling before and I don't I don't like it, so but I can see I just can stop people from actually moving forward. Right, this is a big thing. It's not if you don't if you've ever done it before, you can't fully appreciate. It's like one of the most nerve wracking things you can do. Like literally, like you make

Every colm, every deal ends on the phone. Every single deal.

You do, whether you like it or not, is going to end up on the phone at some point in time.

So, like, what do you tell people to like ease their nerves to coke call?

One thing we do is we give them scripts. They have to make it up.

Yeah, So I want to give you your scripts and then you're gonna give you most common rebuttals so that you can have an answer.

Right. So, Like I like if you go to your if you're.

Gonna ask your mom and you always know what you're gonna say, it's more easy for you to ask a question because you already got the answer because you.

Know her response.

So it's the same thing like when you go talk to these strangers, these people you don't know, you're gonna, You're gonna they got three answers, three or four different answers they're gonna give you, and you need to be able to rebundle those things.

You know what got me over my fear of cocone too. Personally, I still don't throw a lot of cocone, but just got me out of my cause I had I was terrified by it. I had this. I had to sit down and say, am I going to die? If you're not gonna die, it's not that bad.

Did you make money from cocyl never?

I have? Yeah, I have. And at the end of the day, the worst nobody they don't know you, and the worst they can say is no.

Or cuts you out. Who cares. We're gonna move on to the next question. Yes, just they don't know you Just keep going, keep moving. You get cussed out on the subway, here, all the time.

Anywhere, So that should be normal.

Take a personal It's.

Not gonna kill you. It's not that serious. That's how look at it. So what is the maximum allowable offer.

So the the MOA is the maximum amount of money that you can offer on this property and still make a profit. So I'll break it down, so like, if a house is worth one hundred thousand dollars fixed up, right, we did we found that out by doing comparable properties. We've seen that the house down the streets sold for one hundred thousand, very similar square footage, bedrooms and baths. The house up there sold for ninety eight. So now

Right.

So now you did that one hundred thousand minus thirty percent, you're at seventy thousand. And let's just say you walked that house and you went in there and you think it needs twenty thousand dollars twenty five thousand dollars and just say twenty thousand, twenty thousand repairs. So you know that this flipper is gonna spend twenty thousand to get it to the point where he can actually put it on the mark for one hundred, so you're gonna deduct that.

As the wholesalers, you didn't get it right.

So if the flipper himself knocked on this door talk to him, he'd be able to.

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Five fifty, but you need to make some money, so you need to throw a pad or a buffer in there.

So you need to be offering.

If you want to make ten thousand, your offer needs your maximum allowable offer needs to be forty thousand. Right, So now you're going to sell your contract for fifty forty for the forty that they got a bout a house ten for your assignment total of fifty.

Right now we're back.

Where the flicker is gonna make some money. But you if you want it at forty, you're never gonna offer forty. You're gonna offer below that.

Thirty. Yeah, so you do over thirty. So typically fifteen percent below what you want is where you want to be at. So that you do that, you put you around thirty six thirty four thousand dollars to have the wind built in exactly wind built in, and you never know they might take thirty. You never know, right, you can come up with twenty.

So let me ask you this because essentially it's like a middleman situation.

Right, This whole world is about middle most richest companies in the world are middleman. True Amazon, Walmart true you, Uber, Airbnb, Airbnb.

They don't own anything, they're middleman. Amazon's a logistic company.

They don't make products, they house products that other people make and you buy.

Them they have in cloud stores.

Yeah, car dealerships. You can't buy a car in America without going through a dealership.

They're middlemen. They don't make the car, they're they're middle men. Middle Men make the most money in America. You got to solve a problem with convenience.

True, this is true. So that's true. But so my question is my question is all right, but why not? Why is it more appealing in your opinion, to be on that side of it as opposed to just buying it, like just being an investor. Yeah, it's more risk involved being arrested. It's a lot more risk, more money.

More risk and more more risk, more money.

But do you want a a fast nickel or a slow dime? Depends on your business model. I see so I see this a lot. I see where wholesalers think it's a negative connotation to the name and they want to be flippers. And then I see flippers looking at wholesalers and wanting to be wholesalers.

So they see the product margins higher, the.

Risk versus reward. Now, can Amazon make every single product they have in the store? Absolutely? Do they want to take that risk of holding inventory that they own.

For what.

A fast nickel or a slow down. I like that.

So if we're doing this, if we're wholesaling as a side thing, right, how much did you how many properties?

You think we have to do it before it becomes a full time situation. It depends, right, everybody has their free their freedom mark. You know. I always used to say if I made six figures, I'd be great.

Until you made six figures.

So like, it's not, it's it just depends where you want to be at right now. Some people love their job. So like I've spoken to school teachers. They love their job, they love their passionate about what they do. But if they can get one property a month and make an extra ten grand a.

Month, stop teaching. No, They're going to keep teaching because.

They just supplement your life because she gives you what you want.

Now. I've had people say that and then actually.

Quit about that teaching. It's not coming to work tomorrow.

So if it depends on your life, where you want, where you want to be at. For me, I wanted to run a multi million dollar company. So we do between like seven and twelve deals a month sometimes, and you know that's where we're at. And we're not We're not the largest. You know, we got guys across the country doing way more deals than that. But my overhead's pretty thin and we have a good lifestyle doing what we do.

So what would be the obviously depends on the market, Like in your market, what's the profit margin on average deal.

For your average deals?

Thirteen three thirteen three D.

Yeah, we track our KPIs pretty well.

What's KPI?

That me key performance indicators? So you're your your need to know. I need to know how much money I'm spending to get a deal right?

How many calls do I need to make to get a yes? Right? And then did you start to get an average?

How much money do I spend on this marketing effort before it turns into an appointment? How many appointments do I go on before it turns into a contract. And if you know your numbers and your business, and this is any business, then you scale.

So you're doing thirteen one thousand a deal, you're doing thirteen of those a month, so.

It's like one hundred.

Well, our top ends twelve, right between seven and twelve deals a month, so we're average around like ten.

Let's say if you do test so you're talking about one hundred thousand.

Yeah a month, a month, yeah, good calendar, Yeah, good month. Yeah. Okay, So what is assignments? Now you have to cash buyer, you have assignments.

Assignment is essentially you have that original contract with the seller and you're gonna sign your contract to that person.

So let me give you an example.

So let's just say you pull up. We're sitting over at the bodega. I'm in New York.

Can use those words. You sit at the bodega.

You pull up, and you'd be like, Yo, Max, I'm out of here, bro, I'm going to live in Vegas. You know, I just got this new Mercedes right here. I don't want it. I paid cash for it. I paid one hundred thousand for it. I got it two years ago. Yo, give me forty five thousand cash. You can have this. That's a brand new S five fifty. Take that right. So do I have the money sitting at the boadaga?

Nah?

But I know my man down here gotta use car dealership. So I said, all right, meet me back here Friday with the money. I'm gonna have the money for you. It's Monday, so I ain't got the money, but I'm gonna go get it right because it's important. So I'm gonna go hit you up and say, yo, you know, I got a two thousand and eighteen S five fifty.

For fifty thousand dollars.

For Friday, but you gotta buy it Friday. My man said, cool, I'll bring you the money Friday, all right, meet me at the bow. Dagga, you meet me at the bowget date with fifty. You said you wanted forty forty five.

I may hand you the money. You're gonna hand me the key. I may hand you the keys you're gonna give me. I got the middle part. You go sell it because that's your job. Your business is selling cars.

You wash it up, you clean it, put some time, sean on it, stick it on the car line. For seventy five thousand. It's still a deal. And you may five thousand, made five thousand, you on a plane in Vegas because you just sick and tied in New York life, and you just supplementing your business. You just made a profit by investing your money. So so I signed my contract to him that I had with you. Now, when I signed that contract with you for Friday between Monday and Friday.

What can you do with that car? So it nothing?

You couldn't sell it because if you sold it, I would assued you for pacific performance of a contract, so you couldn't. You already said to me, Yo, all right, Friday, I'm gonna I wrote wrote a contract. You're gonna You're gonna give me that car on Friday, and I'm gonna pay you the X amount. Now, but do you keep an attorney with you or you just write? These contracts work? Once you have a standard template contract, you have it.

This is one part I did forget.

We have what they call a I gave you consideration on that contract, which means money. So when we signed that contract, I was like, Yo, here go one hundred dollars. Hold on to that and now I'm gonna get you the rest of the money Friday. So now you accepted this hundred bucks.

For this contract. Now mean you in a valid contract with actual consideration right now. Typically on real estate contracts you have what you call a due dialance period, and usually at one hundred dollars in my market will buy you ten days.

So I know from the day I signed the contract with you on your house, I got ten days to go out and find a buyer. If I can't find a buyer a bout a seven, I'm a no in twenty four hours because I'm gonna shoot the property out. If I can't find a buyer's I'm gonna call you up. Hey man, you know I miss something on that house. Either we're gonna renegotiate or we are going to just cancel the contract. How do you find a buyer? Well, they sharks. They have to spend money.

I was just thought about something, so correct me if I'm wrong. But all business is kind of the same. So these kind of business principles are very relatable. So this is how I'm understanding it from my thirty minute education so far, the easiest way to go was to be there's people that buy home. There's real estate investors, right, that's a job, but they may not necessarily have time, or they don't want to knock on doors and cold co and all that. So now you as essentially the

You bringing corect Yeah, you bring in a consistent product. They need to spend money. That's how they make their money. They decided to be on that side of the equation. They don't want to go And that's why this business takes no money because all it takes is hustle.

It ain't cost you nothing to go knock on that door, ride down the street.

But once you have that house, now you need to be in the relationships where you find people that when you started?

Yeah, how did you develop the relationship to get a buyers? I put it on Facebook marketplace that was it.

Yeah, and the guy called his wife called me, and then that weekend he agreed to buy it.

So do you have like a team of investors and enabled in your area now that you kind of like work with on a continuous.

Basis about six hundred six hundred.

So how do you like email blasted? Out?

To be email blast and text blasts? So we use Mailchimp to send out emails and we sell this send out. We use call to send out.

A blast text message. Are they like fighting over the deals sometimes? Oh? Yeah, that's what you want. I'm frizzy. So you don't want to come buddy buddy with no investor?

Can't because I'm in a marketplace business business.

Yeah. So you say you're going to give me fifty but you say fifty two. That's where I'm going. Everybody gotta eat eat all facts.

This is dope. This is actually pretty Dope's actually pretty dope.

Now for the clothes. I got a question.

I saw this in one of your is a double closing. I've never heard that before. What is a double closing.

So essentially, people are not not good with setting expectations. I like to say with the buyer or seller, with your client. They don't know that you are going to make profit from this this deal or sometimes this profit is too much.

Now we'll say not all the time. Sometimes the profit is just too much.

So a double close is where you said, just to say, that house down the street we're talking about instead of thirty, you got it for ten thousand, right, and now.

You're selling it to the end.

Now you're selling it to the flipper for fifty thousand, so you're making a forty thousand spread. And sometimes if you don't have the right buyers, they may be like, I'm not paying you fifty thousand. You got it for ten, right, But the numbers really work for him, but he not giving you that. So sometimes you go ahead and use transactional funding to close on that first ten thousand and then turn around the next minute and sell it to

Ninety nine thousand dollars fee?

They say, yes, kick them out, because when you change your mindset, you realize money is not a limited thing. When I started to think that I had to get these properties because you know, you got money, when I changed it and said, there's guys out here that if they don't flip houses, they don't eat, they need me, you know, So I no longer look at some money as a limited commodity.

Attorney state versus title state, what's the difference with that.

Let me see, New York is an attorney state and North Carolina is an attorney state. So in states you have two ways you can close the real estate transaction. Title companies which essentially do to title research and look up the property, make sure it's free and clear. Are called title states, they're actual companies. And then you have attorney states where only attorneys are allowed to close real estate transactions. And North Carolina and New York is an

What's the process of setting up a closing with the title company.

Yeah, So once you get that first contract with the homeowner, you're gonna send the contract to the title company or attorney and tell them to start title search. And all title search does is to make sure the property is owned free and clear, no lians on cumbers is on the property, and that it can be transferred smoothly to

And a contract depends on each state. It is different.

Yeah, yeah, typically it's different.

Eat once you have on, it's like a template.

Yes, you keep filling it out.

Yeah, all right, so we're gonna close it out in the next segment. Well once again. Free education. One thing I like about RELASI is that it's a really cool platform because you get to learn, like from not It's not just it's one thing to learn from. Somebody can just google something. But when you learn from somebody that you can know what somebody's actually know what they're talking about, somebody's actually doing it in real time. It's like mentorship almost.

It's free mentorship by far.

It's cool because like we get to see people people with crespy that they want to see on and then like we get to learn about the people and then they come and it's like wow, this is amazing.

Like we're learning too, Like right now, I love this, man, I wish there's more this.

I love it now. It's turned into a whole different It's turned into something that we never even really thought it would get to it because it's like, like I said, this is actually better than the education. This is this is free mentorship. I appreciate that. Man. You just gave a lot of good information for sure. So all right, we're gonna close it out in the last segment. All right, so we're gonna close it out. We gonna talk about

To go for like a month, maybe like three or four hundred bucks because when the home Yeah, because when you download deal machine, you don't need to pay for postcards.

I'm not telling you to send postcards. I'm saying it has that function.

I just need you to go around snapping pictures of these properties and then go on a computer and download the actual property list that you found, and then upload those the skip traits and already skip and then now you have those numbers for fifteen cents apiece. And now everybody got a cell phone, so I'm not counting that. And then you make those phone calls and once they take that picture, that stays in the database. It stays in the database.

Yeah, all right, it's what anything like pitfalls that people should be aware of gone in regards to.

Common mistakes and anything like that.

Yeah, common mistakes as people get So real estate is Rashaanna Scott.

Actually I know pretty well. I was talking to her before I got here.

She posted something and said, real estate is not emotional, right, So take out the emotion that you want to make this money because it's about numbers.

Right.

If the numbers don't work, the numbers don't work, don't force it. Don't walk into a house and tell me there's ten thousand dollars in repairs.

No such thing. I can fix some steps for ten thousand dollars.

Right, So you got to be careful that your emotion is not making you make decisions that don't make sense. So you know, really, and don't think this is a get rich quit scheme. Don't do that, Like this is not that. Let's not do that. This is a wealth building thing. And you gotta really be obsessed and really put some time behind this. Like I don't watch sports anymore. I haven't watched down on football in three years. I haven't.

So you need to.

Spend that actual time in actual being obsessed with something. And once you become obsessed with something, you ain't got no choice but to be good at it.

Yeah, I heard you say that.

You were like, listen, I get in the car, I'm listening to the podcasts. I stopped listening to music. I'm like, wow, that's tough. Yeah, it's a brainwash. I mean that's how I found you guys, podcasts. Yeah, just once you become obsessed.

I like that a lot. Once you become obsessed with something, you have no choice but to become good at it.

That's just true.

Like even with this thing, like I'm obsessed with it, like we're all obsessed with it, but like I'm really obsessed with it. Like they know, like I won't sleep some time, I won't eat.

When I first started this business, I would grind my teeth at night. I don't know how many people experience this, but my body did not want me to sleep because it was like I found the magic button right. So sleeping was a hard thing to do, and I would grind my teeth to night. I would wake up with like sore teeth, so I had to go to the store and buy a mouthguard to sleep with at night.

I always say for me personally, like as a business owner, entrepreneur, somebody that's really doing something, either you're going to bed late like myself, like three o'clock in the morning, or you're going to bed early, but you're waking up at like four o'clock. If you're not doing one of those two things, like if you go to bed early and you wake up late, I can't trust you.

You can't trust you.

Because that lets me know you're sleeping too quick. If you sleep good, I can't trust you.

You're not tired. I tell you. I tell everybody, Lisia did not sleep. I know he's up that night.

I know I'm waking up at five thirty five o'clock in the morning. We don't any Lisia doesn't sleep.

Yeah, I mean, that's just it's and then you don't mind it though it doesn't become a thing.

You know, it's like yo, just you know.

It's interesting is that the people they like, they ask the how, like how are you doing it? And I'm you don't understand, Like I can I see the impact. We're obsessed with that, like no, no, no, there's no time. We'll see later, no time for that.

So one thing I like about you is that it's not just real estate with you. You you like you always see a bigger picture. So you we talk like you really branded yourself well, like so yeah, you talk about that, Like what when did you realize that you need to brand yourself your business bigger than just whole You could have just made a lot of money wholesaling, but you have a bigger vision in that.

So when I started, I didn't when I when I did my first conference, we call it we Live, which means Wholesaling Elite Live. When I did that in Charlotte, North Carolina, when my mentors was there for the he was closing the show Sunday and he so he got to see Friday and Saturday and he came down Sunday before he spoke and he was like, he said, uh, you know, I sat in the bed last night and I started I was crying to my wife. I said, what happened? He was like, what you have done? The

It was just the energy.

And then so I started branding myself on purpose because I wanted to get the word out. And you know, one of my mentors, Gary Vee, I see y'all met him a complex the moment. Yeah, he was like, just give it away, give it away, give it away.

And that's what I became good at, was just giving away the information I got called from people. That was that I looked up into this industry literally phone calls.

Was like, what are you doing. You're giving away this game. You know those people make millions and millions of dollars being a coach, but don't actually do this business. So I'm not hate and you get your money out the mud. I don't care how you get it.

It's your thing. But I seen it as a way, you know.

I was just telling y'all, like, you know, if you were if you were overweight and you found this fruit that that made you lose weight, You're gonna tell everybody about it.

You don't want to sell it, You're gonna.

Tell everybody about it, you know, so because it brought you so much joy. So for me, it was just when I started branding myself and realizing then I started. I was like, this is it. I got my first YouTube check remem I was like two hundred and fourteen dollars.

I was like, oh, this is real.

Simlar feelings, similar feeling. Then we started creating content more and more and more.

I spent money to be in the same room as Gary Vee, started following his model.

And it's the true. It's the true.

Next way to be a billionaire is having a brand. But you can't force it right s. Either you got it or you don't. So you know, I would say, make sure you got your bag first and then try to build what you need to build. But your brand is the next big thing. I make more money on my brand than I do in real estate. A lot of people won't tell you that in this business, I make considerably, probably five times as much more from active wholesaling to my brand.

And with that brand, like, what's the revenue from like streams like you have like because you don't have.

Of course, right have said you turned down TV?

What how does your brand make your money?

We have partnerships with a lot of products that we use.

Once I built brand partnerships, Yeah, once I built the audience, people wanted the attention from the audience that we had, so we do brand deals with a lot of people. So that's in the probably the tunes of like two million. We built products for ourselves in office that really worked and we told the public about it, and that's probably like another four million in revenue from products and speaking engagements. You know, we're at like twenty twenty five thousand engagement now.

Actually, you start to get that private.

Money lot faster. People start to trust you, right, because they know it's real. I'm not going to ruin my reputation over No, two hundred thousand dollars. You know that's a weekend. So we're not about to do that over here.

Don't let that go over your head. Yeah, have Bernie.

So a brand is powerful, like it's it's it's it's real powerful. I mean, look at that story where Kylie Jenner, did y'all see that she just swimed me out and for y'all had the podcast, but she just sold sixty She's well, it'll be done next year.

And she sold it for six hundred million. Yep.

So now it's like now she's worth one point four billion or something like that.

Yeah she got cash. Yeah yeah, yeah two.

I mean different the brand is. That's one thing I even said about this, Like people ask me like how to earn your leasure start? I get that question a lot, and I was telling them. I tell people the same story all the time that my original plan, honestly, to be in full transparency, my original plan for the podcast was just to keep building my own personal brand of

Checks come through regardless. I like to peel nice. You said, like even when you talk, you can hear it. You say we, and you say even though you have Max Maxwell, you're saying we. I mean people are part of the team.

I have a team, man without them, Like I got fourteen employees full time, yeah, all full time.

Four of them work strictly just on my brand.

You know, I spent a lot of money on it now, I mean we just bought a lot of new equipment, for a new set that we're doing to put out a new show, like YouTube show. Yeah, yeah, we're putting out a new YouTube show. I'll be honest. I really love the show impact theory from from Uh Tom Bill You so it's about he speaks a lot on mine, but I want to put that twist on it. So you know, I just want to put out talk more about entrepreneurship. And we just built a brand new set.

Yeah, I know. We've been getting a lot of requests to come down.

Come down for sure. I got show you how Far you from from.

From Charlotte hour and twenty minutes.

We're gonna come down to rock with We're gonna do something in Charlotte. Arlotte, the biggest.

Market Carolina's been like, y, you gotta come North Carolina.

To do something together. I mean, I get like tomorrow will do something. We'll have two hundred and fifty three hundred people come out.

Yeah, we do something.

We got We're coming Carolina, North Carolina. We're coming.

Shout out to North Carolina.

Now.

This is dope, man. I really really really enjoyed this episode a lot. I always enjoy episodes where we learned think people is really gonna be because it's a realistic story. And that's why I think a lot of most of our guests come from humble beginnings. So it's like, what's

Three years is gonna be crazy.

Yeah, you know, even even when you say that, when I'm listening to you say that, I'm crazy that you talk about me. Yeah, because it's still brand yourself. Like it's still so brand new. It's so brand new, Like I don't like it's just yo, it's it's just different. It's different. Like for me to be able to come out, we just spent sixteen thousand dollars on new cameras.

That's crazy, that's a call, no, but you know that's hell with the money.

It's like I can do that. Yeah, it's a feeling, you know, so like and it's still so brand new. So for me, it's like it's all humbling, man, And like the most important thing for me. It's like my mom is good, Like I'm cool now, my mom is great. So I think, like, you know, because I'm not married, I don't have no kids, so my wife is my mother, right, you know how you make your parents so they just sacrifice so much and even just to be able to be born in America, it was a big sacrifice.

Yeah.

So we're gonna remind you of it too. Yeah, every day. But I'm gladly reminded of it now. So you know, just just having those that why that for me was my mother.

Man.

I appreciate that.

Man.

Anything you want to tell the public, make the public aware of how to follow you or any initiatives or YouTube or anything like that.

Please follow me on YouTube, just search Max Maxwell. Give me a follow, put that bell on. Follow me on Instagram too. I'm almost at one hundred thousand followers. Not that it matters, but you know, what's your Max Maxwell if you search Max Maxwell. But it's it's the real Maxwell, Real Maxwell, the real Maxwell.

I think it's like ninety seven soth we're gonna get. Yeah, it's gonna be a one hundred.

Dollars I need after this episode, After this episode, is gonna be. We're gonna go live with it. We did.

Once again, man, thank you for coming. I appreciate Troy House house Keeping.

Yeah, shout out to everybody on Patreon dot com. Y'all know that's our private pay program. We have five tiers and if you're at tier four and five, you know that you are are giving access to earn leisure uh University e y l University, and we drop something every week, man, Monday, we have our ransom gems with Matt, we have our weekly webinars on Wednesdays and you know, shouty and now we get on there. I'm not sure what day we're gonna We're gonna do Thursdays going forward. So and that's

And if you're not, that's cool too.

We got bonus clips, we got the episodes released early with no ads, and a lot of people like they hit us up like yo, man, I can't wait for the world to hit this episode.

This y'all.

Got another classic, So it's dope to get the preview of what people.

Think before we put it out to the world.

So shout out to everybody on Patreon dot com and everybody that's been supporting our merch on Earn Leisure dot com. You know, we got our hoodies uh and all flavors uh. And we got we got some new merch that's dropping too, so be on the lookout for that.

Yeah, for sure, the merchers is popping right now. And don't forget d C December seventh, December eighth, we're coming. We're coming to the d m V not just d C, PG County, Baltimore, Virginia, everybody in the area with us. Yeah for sure. Shout out to Rashaana Scott. She's gonna be talking about real estate. We're gonna have MG, the mortgage guy in real estate as well.

What's your what's your calendar?

Looking like I was just looking at him, it would be there. Yeah, yeah, yea, I'm gonna be there. I think we leave for the Philippines on eleventh, so.

Will be there. Pull up y'all.

Added, Yeah, come network with us, man, we got Wall Street Trap. He's gonna be a whole part of we're gonna have Derek Falcon from Home Made. I'm pretty sure he'll pop up on us I have. I think that for the networking event we're gonna have, we're gonna have a few. We're gonna have a few.

People going to be serious, a few people.

Man, So make sure that you you come through for that. All information is on our website on the events to having. The book tip of this week is the people Principle. I read this book a few years back. It's on don Hugh Peeples. People may not know who he is, but he's he's huge. He's a black real estate developer. He used to own the hotel in uh, Miami that we stayed at. What's the name of that blue? None of that found Blue. It was by found you know, not at one bottle Loads. It was Bottle Loads. I

Also, yeah, we had him on our list, remember like movie first coming up with ideas of people who we want.

Yeah, he was right on ours.

Yeah, check that book out if you're interested in and hearing a good story. You're interested in real estate for sure. Thank you guys for rocking with us. We'll see you next week. Peace Peace.

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