Finding and Negotiating Deals like a Tycoon… with Mr. Tycoon

Finding and Negotiating Deals like a Tycoon… with Mr. Tycoon
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Dave Debeau [00:00:09] Everyone, this Dave Debeau with another episode of the Property Profits Real Estate podcast. That's a mouthful. And our special guest for today is Mr. Tycoon. Yes, yes, yes. Glad to have you on the show. How are you doing today?

Mr. Tycoon [00:00:25] I'm fantastic. Glad to be here. And and thank you. And I'll write now. Thank you. Audience for Oportunidad and listening. And hopefully I can say something that will be beneficial to them.

Dave Debeau [00:00:36] All right. Well let's let's jump right in. Mr. Tycoon, why don't you tell us a little bit about the way back when and how did you get started in real estate investing in the first place?

Mr. Tycoon [00:00:45] OK, well, it started over 20 years ago and I'm just a little back story. I'm originally from Boston, grew up in Cleveland, and I was a tennis prodigy, a guy by the name of Arthur Ashe. I didn't actually train through him, but I trained through his program. And that's how I got to Atlanta where I am now. They said a B, so I was warmer so I can play more year round and we move here to Atlanta. Went on to become all-American here with Moorhouse College, not played tennis for Adidas, broke my wrist playing basketball, which was my first love, however tall tennis for many years. When I met my wife at thirty three, I was a pro tennis instructor and my wife told me teaching tennis to women in short skirts wasn't a real job. So what is it you always want to do, as you say? Plus, I don't know what you teach the ladies because they don't look like they're too good. I don't know what you're doing. So I said I want to do real estate. And the reason I always want to do real estate because of reading books like Bacons, Rogich and other self-help books and understand that most millionaires were created with real estate. So she said, why don't you become an electrician now other than hitting a tennis ball or athletic mechanically? That wasn't my thing. But I went on to a place called IBEW, which is electrical contracting. So he said, well, we can work on the houses. And I tried that. I would make a seventy five dollars an hour to about eight dollars an hour. And I like some. They write about this and I went to a local real group and heard about Ron Graham, Ronald Grant, the guy who taught me and I heard about wholesaling and I got his book, read his book from cover to cover, plus magnetism, a car and a lady ran out the street, almost ran her over saying, hey, I need some help with my house. Called it one of the guys who I met in L.A. and he walked me through I mean, literally like day. She says she was twenty five thousand. Ask her that the best you can do is that the best you could do? It was that type of coaching and got my very first deal done May five thousand dollars. And I asked my wife to quit. She said, I'll stay on my job and the rest is history. I'll spent a lot of money with Ronald Grant after that because I will say I learned how to do this from a book. Just imagine me going to the course. Yeah, my very first course was five thousand dollars. So be able to say they don't want people to education. That's what I want to talk about today. Also what I'm about to say, I started twenty years ago to make my twenty year anniversary in the business. Now I promise to do a lot of wholesaling. I do have buying homes and I do subject to ensure sales the whole gamut. I am a transaction engineer, but that's how I got started. And I chose real estate, particularly because I read all the books that most made using real estate. And as we know, most wealthy people hold a lot of assets or a lot of their fortune in real estate. Still to this day and it's been a great ride, I would put a bubble just like everybody else, lost a lot, but learned a lot. But one of the saving grace is, is that I learned the business the right way of meaning, understanding the technique and the method of it, unlike a lot of people just cashing out or buying houses and refinancing them and turn them into rentals, then it was upside down with those arms just adjusted.

Dave Debeau [00:03:58] Yeah. So, yeah, it sounds interesting because you're on the ground. So I got into real estate investing as well up here in Canada.

Mr. Tycoon [00:04:07] Didn't know the guy

Dave Debeau [00:04:08] that his book is Binder's and his CDs. And I have them right here, but they are pretty handy. Did the same thing with the magnetic signs on the. There you go. Yeah. Oh yeah. That's a very big deal. Yeah.

Mr. Tycoon [00:04:27] Not only I had the ones with the cassettes because then he came out and he upgraded to the DVD like, oh my God, DVD

Dave Debeau [00:04:36] you got, you got a DVD. I only got two CDs for

Mr. Tycoon [00:04:39] crying out loud that has listened to. Right. Right, right.

Dave Debeau [00:04:43] But all good stuff. Same thing. Magnetic signs on the side of a beautiful purple minivan. I mean. Oh my God, it was. But hey, you know, this stuff works. So that's that's cool. Let's talk a little bit about because I understand what a transaction engineer means, but some of our listeners might not quite. Understand? What does that mean? So for you, what is being a transactional engineer?

Mr. Tycoon [00:05:08] Well, it's transactional engineer. Once we get a lead in somebody who raised their hands or where they call from Obama sign or a billion dollars or whatever marketing that you use. And once that money comes in and for those who want to stay in wholesaling, we use a sixty five percent road most time as a junker. However, what happens when someone calls you in a house is worth one hundred and they owe one hundred on it and they are two months behind that does a 50 60 percent rule and they don't want to do a short sale is taking that leap and figuring out how to make a transaction out of it, how to get from this place to that place as that engineer builds that bridge? How do we turn this into a deal? And that's what it means to be a transaction engineer when you have a motivated seller with a situation and who is open to you in terms of taking over their payments, giving them several different options other than I hate to use this word, one, what they call it, lowball, one point, one pony horse or a one trick pony, a one trick pony. When you're in know hole, selling all the rest of that stuff is going short sale, subject to creative financing, owner financing, all the different techniques that are available inside of real estate. That's what makes you a transaction engineer. Other than just knowing that one thing, you know, I got some pictures. We just throw a fastball. They don't know what a curve is, what a slider. They got that one pitch and that's what I look at, a transaction engineer and I tell people, start with one thing, but expand your knowledge once you get that one thing down solid because you can't do a in to begin. You can't learn it all in the beginning and is not about having certificate's on the walls. And I know subject to no short sale. I know the pretty house are not ugly house business, which you haven't done a deal you got as a kid. You ain't got to tick's. Yeah.

Dave Debeau [00:06:59] Yeah no I know it's beautiful so. Yeah. And then the other thing I love about that whole process is instead of just going in with one offer and take it or leave it right, go in with one, two, three, four different offers. And instead of it being a take it or leave it, it's like, oh, which one do I choose? Right. So that is so powerful as well. So let's talk a little bit about how times have changed over the twenty years since you first got the success from Ron to what you're doing now. So, you know, I'm sure a lot of the things that we learned way back in the day are still working. You know, there's a direct mail. Yeah. So what's working? What's working best for you these days in your markets for creating these leads? Because you've been doing this for a long time?

Mr. Tycoon [00:07:51] Well, I'm in Atlanta, Georgia, which is a hot market due to the fact that people from Canada, California come here and our price points are relatively low in comparison to, you know, like I say, California, New York. Individuals come here and spend three hundred thousand. They've got a mini mansion and they had a check back home. And so that's one things what our market. But what's working as far as marketing businesses are still working. Direct mail is still working. I'm using postcards instead of the yellow letter now. Economical reason, because my theory and what I've seen is that if a person has a need and they see a. A postcard, if they got a need, they're going to look at it. Yeah, you know, I hope they with the yellow letters with saying that somebody open it up. Well, one of the things that are working because you're talking about different times of changing is using mojo and using calling people as far as what I like to call it, dialing for dollars. We're having much success with that because unlike this, we immediately know if they want to sell or not, because we sent out this in a shotgun approach. We use absentee owners. Doesn't mean every absentee owner wants to sell their property now. So what I suppose

Dave Debeau [00:09:00] does a lot of other people get those lists of absentee owners is what owners as well. So you've got more competition, I guess.

Mr. Tycoon [00:09:07] Yeah, but again, they might thing with that competition. How many people are going to stay with it? That's the thing that comes to mind that I tell my students. Yes, everybody goes to the local or the new who is in town and they go to the event. They all happy and they mail out one hundred postcards and they don't get nobody call back. Like, I get this. I use another word of it myself. That's all right. We don't get it. All right. I said it all and they give up. And so I really don't get into the competition because most people don't have the staying power or the mental strip to understand that this is a process that requires time. And just like a seed has to grow, people want to come into this business because they see the numbers and hear the numbers, but they don't understand. It may be you you met on a postcard. Somebody may call you back six months later, they'll call you back. That first week that they get it, they hold on to it sometime and or they got they going through probate. But to answer your question, dialing for dollars is working right now. As I said, our business hours are still working. And my favorite, which is a little taxing, is driving four dollars because once you see a house and you know how to skip trace now, which is new technology, more information is out there on the way up for individual. You see a distressed house, the blue tarp, grass or just bacon and is barely standing up. You know, if you find a home on it nine times out of ten that they're ready to sell because code enforcement or they pay taxes on it is just sitting there. You can tell it's been sitting there for ten years. People say, well, how the house still sitting there has nobody. Nobody is taking the time to really dig deep to find a homeowner or the relative or the homeowner. So as you're saying, because of technology, we didn't have the skip tracing. We have the day stuff as has been verified, which is ten dollars a month. You know, you really had to hire a private investigator or it was certified all the suits to try to find information on people. And it's so much more cheaper today than it was then. It just amazes me with the information that's out there and what the new investors have at their disposal, because we didn't we barely had these when we started. We had the chart phone. We had to look back in the data. Yeah, we got no digital signatures. Everything had to be red with a blue pin. You had to sign everything. Now we have doc you sign and it's a lot easier.

Dave Debeau [00:11:44] But you know what? It's a lot easier. But we're talking about this a little bit off camera. The average person's attention span has shrunk so much, right, that if you just got a little bit of stick with EDNESS, you're light years ahead of most of your competition that just don't have the bandwidth for the tycoon before we go. Time flies when you're having fun. You're my friend. One of your big claims to fame is that you're really very, very good at negotiations and you call it tough but fair negotiation. So can you tell us a little bit about what is that and kind of what does that look like in your world?

Mr. Tycoon [00:12:20] Well, no one is understanding that we're dealing with a person who is selling something sometimes they may have, as they like to say, sentimental value and I'll tell a seller, missed a day. I understand you have sentimental value. Was your father's house is your house, and you know, you've got sentimental value, but that doesn't really show up in commerce. You know, they pay you for the sentimental value. I've got to pay you based on the numbers of what houses are selling for in your area. And so I call it being a straight shooter, but also having the information to back up what I'm saying, you know, if you got a junker, you have a junker. And I'm not telling me I'm not going to tear down your house today. However, it is 20, 20 now and your house was built in nineteen fifty four. You upgraded in nineteen eighty. The mark of what people want now is not that black and white mirrors on the wall paneling. Wallpaper is a different thing that we have to do. Yeah. To put it back on the market. And so explaining that to individuals and just being straightforward with them and letting them know I wanted to be a win win. But you have to understand certain things as far as like sentimental value and what you think is for the market today and show them, you know, we got computers in our iPad. I can show this is a house is fixed up. Now look at this house and look at your house almost like the

Dave Debeau [00:13:49] before and after, almost

Mr. Tycoon [00:13:50] before and after all the Arab Spring commercials. Look at your man. Look at my at you know, look at this house and look at your house. Is there a comparison? You see why this house is three hundred and why I'm only able to pay you fifty because I've got to put one hundred into it. And he was as a wholesaler, we've got to understand what our big guy we're going to flip it, pass it to him, assign it to him or do a double closure. What are they going to be in to get this house to a market price where it's going to make sense for them? And sometimes you got to you've got to know when to when to walk away and just be honest with people. And when I say tough, some people I've had to sit there like, man, you just go straight to it and get to the point. I'm like, there's no emotion for me. This this is where

Dave Debeau [00:14:33] you learn that honestly. I mean, Ron was tough.

Mr. Tycoon [00:14:36] Yeah. Yeah. And that's why I think I connected with him, because he made it plain and clear and and made it very important to understand. You got to understand its marketing first. You can learn all these techniques. But if you don't have any marketing and no leads come in and you don't know if you got a deal or done. So that's so important is understanding the marketing value of this business because nothing gets started without a lead. And I kind of came up with the deal is decidedly when you look at the word Illiad lead detail inside the SO is once you as I say, we go through it and look at what's the asking price and what's the comps. And that's what I know you have. One of the questions, one of the challenges that people have is not coming up with the right number. So they end up writing up a contract for too much and wonder why I won't move or why they don't make any money when they go to do a pick simply because they pay too much for it.

Dave Debeau [00:15:31] Right, exactly. Yeah. It's getting some of that emotion out of there and really sticking to your numbers. But again, that's one of the advantages we're talking about, right, is if you understand a variety of different strategies or exit strategies for that property, it opens up a lot more offers that you can that you can make. Right. Mr. Tecum? We are having fun and time has flown. If people want to find out more about you, if I want to find out more about how to, you know, be hard but fair with a negotiation, they want to find out more about how do you attract leads and create leads. And I mean, my goodness, you've been in you've been in this business a lot longer than a lot of people. So you know it inside out. What would you like people to do after they find out

Mr. Tycoon [00:16:16] more about two things. One, I like to just give them a gift, first of all. And that's Mr. Tikhon. Dotcom is my main website, and that's why SEO and Dotcom, that's the main site. But if you put a slash and put masterclass, I have the seven deadly sins of whole selling real estate, which I talk about some of the mistakes that people make. And I'm just going to give you one right now. So that, again, here is lack of education. I think one of the challenges now because of the Internet or podcast has not like yours. Where you given concrete information is so many people out here two weeks out of a seminar on one deal done and not a guru. And so, so much information is out there between you two. Facebook is let people know you got to get educated properly. And, you know, sometimes when I run into individuals who are successful at this, we came out of the school around the grant know. But what we invested in our education and we learn for somebody who gave us a method that was duplicable, it had nothing to do with your skill set in the beginning, whether you were. Had great communication skills or you was already a professional speaker or in sales is because he gave us a method that we could follow and and it was concrete. It was a concrete method if you stuck to it. And another thing. March twenty past twenty second, I'm having to celebrate my 20 years in the business. I'm doing what's called the Tyco real estate super super cops so they can go to Tycoon Super Conference. Dotcom is absolutely free. I'm doing scholarships to date March 20 person. Twenty second to four days of mission, all the different faces from buying and holding bits of creative financing. And my favorite wholesaling and one the reason I love wholesaling is because that's what gets you the cash. And if you want to get in to fix it, you know, it can be very expensive using hard money. And so you make it, you get your cash with wholesale and then you can go and do a little easier and then learn about private lending and all those things also. And I am on it. I am much like on Facebook, Mr. Tycoon, so I can get in contact with me. And again, I want to get educated, get educated with somebody who's doing the business, not who has done the business. Because as David said, times have changed, technology has changed with the foundational principles haven't changed. Oh, it's all about the numbers.

Dave Debeau [00:18:46] Beautiful. Well said. Mr. Tycoon, thank you very much for being on the show. And everybody, thanks for tuning in and we'll see you on the next episode take.

Mr. Tycoon [00:18:54] All right. Thank you again.

Dave Debeau [00:18:56] Well, thanks very much for checking out the property profits podcast and you like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review. Very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom. Take care.

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