My partner with JointVentures.com is busy working on the scaling up priorities of the business, but provided me this pre-written post describing a bit more of his background in business, how he came to see eRealEstate as potentially more lucrative in growth potential than physical real estate during the course of his lifetime…and what that means for the hungry guy or gal looking for an opportunity TODAY to quit flipping domains and create wealth leveraging joint ventures and doing long-term-oriented deals to reposition assets for highest and best use, and get paid for it VERY WELL. If you haven’t read any of my posts over the years about “Sweat Equity”, here’s one from just 30 days ago. If you’re looking for a solid six figure opportunity for proven sales performers, read that now and then come back and read this below: LINK.
“Stop: No More Working for Tips!”
By Danny Welsh
How did I come to the realization that what I was doing with wholesaling real estate houses was small smack-dab in the middle of making more money in a single month than anyone in my working class family had ever made in 2 years? How did I later come to eRealEstate by way of physical real estate and come to see my experiences with selling a single deal or investment in the latter as precursor to (and in some ways preparation for) increasing success with leasing the former?
How can someone with great people skills and an interest in domain names looking for a GREAT opportunity to make money in 2013 leverage what I’ve learned about business at 30 and what Rick Schwartz has learned at 60…and work with both of us to change the way the domain game is played at the highest levels in the next 3 years?
First, my business experience was wholesaling properties as early as a year out of college when I realized working for someone else just wasn’t going to work for me. Find a motivated seller who is in over their head with debt and wants to sell fast. Put the property under contract with just a few dollars deposit and paperwork that gives you the right to shop it, and use superior marketing skills to FLIP THAT HOUSE for cash to a serious buyer. It’s a formula for fast cash, and pretty easy in real estate doing a deal that is a WIN-WIN where no one gets taken advantage of done correctly.
There are always cash real estate buyers who want a cheap property to fix it up and rent it out or fix it up and sell it for a big ROI, and as a wholesaler you can get a piece of the profit spread from either with no property acquisition money out of your pocket except for incidental costs...just by finding the deal and putting it under contract, and using networking, research and marketing to develop a good “list” of potential buyers you could market each wholesale real estate deal to at the “push of a button” to get it sold and the owner of the property out from a tough situation they couldn’t solve themselves because they were too immobilized with fear looking at their mounting bills on the kitchen table.
If you have no idea what I’m talking about…Real Estate Wholesaling is the “sexy” and “no money down” physical real estate equivalent of domain flippers today in the domain world that hand register a domain name and attempt to ‘flip it’ to an end user company 5 minutes later for more money.
I can remember a time when my partners and I wholesaled 20+ real estate properties in a single day...sound like I’m making it up? I couldn’t if I tried. It blew my mind, to be honest with you. There I was, 24 years old and partnering in a seminar with Bank of America in Cali bringing their loan clients to buy properties from a young group of Florida real estate investors offering turnkey rental condo’s for long-distance investors.
Talk about a joint venture! HINT: Which bank do you think underwrote the mortgage loans on all those investment property sales we made? Who do you think referred all of the attendees? Gosh almighty, when you structure a great joint venture…it’s really not anything more than finding a way to WIN BIG and let the other parties involved WIN BIG too. Not always easy…and there can be pitfalls, but when you do it once, it’s time to DUPLICATE baby!
With that first event having gone successful and even doing
bus tours and property sales seminars with dozens and hundreds of investors at
times to sell investment deals in bulk as my partners and I racked up dozens
upon dozens of investment property sales in multiple cities all throughout
Florida— many times selling to investors across the United States in
California— I gotta tell you...when I did it actively, wholesaling properties
was a lot of fun.
And it felt...SEXY. Heck, after just one success like that I felt like I was the MAN! I was hooked.
And yet, for the people I personally consider real estate business mentors who had light-years more business seasoning than I did… what 6 maybe 7 years ago now… those mentors of mine then with DECADES of real estate experience having done tens and hundreds of millions of dollars in deals (and still owning a significant chunk of that invested in long-term real estate holdings)...
They LAUGHED at me and made fun of my team's accomplishments wholesaling properties.
They saw me and my active business partners running around, working 80-90 hours a week, confusing activity for accomplishment, and hustling like madmen to wholesale investment-grade properties to anyone who'd listen...oblivious to actually building real WEALTH.
The mentor my partner and I were bragging to about our 20 deals in a day accomplishment told us that no matter how much money we made wholesaling houses, in his opinion we were still:
“Working For Tips”
He threw that zinger and smiled and leaned back in his leather executive chair in the 12th floor corner office of the 17 story building he had owned in whole or in part for decades of having sold it and bought it back… and we both seethed inside and secretly hated that smug bastard.
But we bit our tongue and tried to be humble before this man who had taught my partner at the time and me both a great deal about business and how to bring real value to the marketplace in exchange for money. And my partner asked him what he meant by that.
I don’t have a video or audio recording of that conversation. I wish I had. If I had had it to listen to maybe my career would have gone differently and I’d have succeeded at a higher level even faster, I can tell you that. It took me years and one horrible month in 2008 where I realized despite all that I had earned…I was broke again…and it took THAT to realize he was right years before saying no matter HOW MUCH MONEY I had made I had been “working for tips”.
I thought then what I was doing was fun and I was actually proud of what we were doing...but when that zinger got done popping the packing bubble wrap around my fragile ego, and the truth of the next few years bore it out with the collapse of the nationwide housing market, it helped me see that what I thought was 'success'....was in actuality a GRIND. A hamster wheel. Sure we had been making money. Sure we had been moving deals and building a following among investors. But it was just working for big paychecks because if you stop wholesaling...you stop earning.
You don’t know what you don’t know until someone who knows shows.
I'm not knocking wholesaling houses, just as I won’t knock domain flipping...it's a fantastic way to get started in a business arena and make some money with little money or risk.
Rick Schwartz calls these folks who flip internet real estate domain names “waiters” when they could be the restaurant owner. As I’ve matured over the years I came to believe that the same is true in physical real estate. There are waiters and there are restaurant owners.
But the barrier to entry for wholesaling is low and so with physical real estate many start there, just as there are many domain flippers because you can get in the game for just a couple bucks. As a newbie real estate investor, I was no different.
Years later after first doing it myself successfully I trained others to do wholesaling houses too through an “apprentice program” called the MMM Challenge (how to wholesale houses among other things these apprentices were taught), and I had a lot of fun with it helping people get started in real estate, learning to market themselves effectively and making some money in exchange for working for me for free. Some succeeded in business and/or real estate since then a little, some a lot, some not at all.
But every single one of them is a changed person for the time I spent pouring into them, and they’ll back me up on that. I’m proud of the difference I helped make in the lives of 60 people over 2 years. But at some point as so many wanted to learn “wholesaling”— something I started my own RE career with and by then had graduated from to pursuing more lucrative deals— I worried that I was perpetuating a small mindset even as my students succeeded to make money with wholesaling.
TANGENT: Any idea who owns/owned Property.com and
Yep. That’s a big part of why he’s one of the small group of
visionaries I call “the 500”.
How many more ways
can eRealEstate be used
and developed for profit than physical real estate?
Thinking that way is what led me to approach Rick Schwartz at first, and those are a stories we can talk about another day, including my own experiences many of the old guys in domaining would call my own “newbie entrepreneur” years— only I was flipping houses and not domains.
But I digress. To return to the meat of the matter…eventually I found out no matter how much money I might make wholesaling houses I was still a waiter and not the restaurant owner, to use one of Rick’s recent analogies from his blog HERE…and with the help of a few older RE mentors I graduated to doing deals that weren’t small one-time transactions alone.
I realized something years ago (actually my mentors in real estate hit me upside the head with it): You can take down a HUGE cash-now and cash-flow-later commercial real estate deal like an office building, mobile home park, or apartment complex and get paid for YEARS...with the SAME AMOUNT of effort, resources and contacts as it took our team to wholesale a bunch of residential deals and get paid once.
And so I am undertaking with Rick Schwartz’s blessing to help THREE groups of people realize something Rick Schwartz and I believe in 2013:
1) If you've sold some domains for 6 figures, and have some successes under your belt...you may want to do as Rick Schwartz is increasingly doing and graduate to getting a real piece of the business that buys and develops your most valuable domain names. That’s what our JointVentures.com clients are going to do starting with a domain lease in most cases if we’re successful to bring the end user business partner.
Mission…Accomplished in 8 weeks December 1, 2012-February 1,
2) If you've quickly flipped some “newly registered” domains, and have some successes under your belt...you may want to do as our JointVentures.com Kamikaze Sales Team will be doing and graduate to getting a real piece of a residual income stream and not just the one time check. That’s what you now have an opportunity to do if you want to apply and get chosen.
YOUR Mission Reading This Right NOW…should you choose to accept it BEFORE this offer simply self-destructs.
3) If you’ve made some money in an offline business that is just now wanting to get online, or you have made some money in an online business and are seeking a superior online location…you may want to do as our domain partners and lessees are increasingly doing and graduate to operating your “Category” business from the one and only Category.com. That’s the opportunity MY job with marketing for JointVentures.com will be for 400 great domain names seeking a great business to align with so each profits more than they could alone.
MY Mission for 2013-2015.
Look…if you have some success under your belt and you see the #2 above and are intrigued…let me offer you a bit of advice. Now is NOT the time to hesitate.
It wasn’t until I was somewhat priggishly bragging at age 24 to one of my own real estate mentors that my partner and I had made 6 figures in a single month wholesaling houses that I realized how SMALL wholesaling houses really was compared to the true and intrinsic value of PROPERTY itself.
Real wealth comes from assets and income streams, not just transactions.
If it wasn’t until you read this that you realized how SMALL “flipping” newly registered domains really is compared to the true and intrinsic value of the best DOMAIN PROPERTIES themselves…
Then you know what to do, don’t you? If you’re interested to join up with Rick Schwartz and Danny Welsh as our inaugural JointVentures.com ninja sales team then it’s time to step up and say so.
Send in your video application via posted link in the comments to the “Armchair Quarterbacks Need Not Apply: JointVentures.com Sales Team Now Recruiting Future MVPs” announcement post here: LINK
Catch you on the FLIP side.