Table of Contents - Real Estate is a People Business with Tamera Aragon
Dave Debeau [00:00:09] Well, hey, everyone, this is Dave Debeau with another episode of the Property Profits Real Estate podcast. And today with us all the way from beautiful Stockton, California, we've got Tamera Aragon. Welcome to the show. Tamara, how you doing today?
Tamera Aragon [00:00:23] I'm doing great, Dave. Thanks for having me.
Dave Debeau [00:00:26] My pleasure. So Tamara is a very, very accomplished entrepreneur, online entrepreneur and real estate entrepreneur. She started her very first business back at the young age of 20. She's created and started multiple million dollar plus businesses. The last number of years she's been doing real estate investing and has done a very large number of transactions, flip transactions primarily. So we're definitely interested in hearing about your story. How did you first get into real estate investing as a business?
Tamera Aragon [00:01:03] Well, I was walking through a Sondre shop in an airport in a book called One Minute Millionaire popped out and no one ever told me about that. Multiple streams of income thing raised in a middle class family and it just became hooked on the concept, gave me a lot of hope that I could get out of my current situation at that time. And then the writers were not too far off from where I live in Los Angeles. And I was able to go see their free webinar, I mean, their free seminar, and ended up buying their program and learning multiple streams of income. And I'm one that likes to look at things that aren't real pretty and. All right. I guess I want to say I look at the good and everything. The idea of flipping a house to me just was very exciting, even though I never done any construction. And then my first deal was very successful to be about a year to get it. So I don't think I'm giving you the very short version of my story. Yeah, and that very successful first transaction caused me to instantly quit my job, and I've been doing it ever since.
Dave Debeau [00:02:00] Wow. All right. Very, very cool.
Tamera Aragon [00:02:02] That's the shortest version of my background I have ever said. High five to Tamara
Dave Debeau [00:02:09] one one minute millionaire was that was Robert Allen, one of the authors.
Tamera Aragon [00:02:16] Johansen and Robert Allen did that together. And I like the way it's written because one side's kind of a fiction story and the other side's a fact. Yeah, because the facts behind it, I'm a little busy in the way I am. So I enjoyed that way of writing and then I learned a lot. So, yeah,
Dave Debeau [00:02:32] well that's actually. And then you took massive action, which is wonderful. So you focus you've been focusing on flips that entire time, is that correct?
Tamera Aragon [00:02:40] I have several holes. I also do wholesale and I'm focusing on lease options right now as well. So lots of different strategies actually have a book called Twenty Seven Ways to Do Real Estate. And there's lots of different ways. Every house I just figure out what's best, what's a win win win for everything. So the buyer.
Dave Debeau [00:03:00] But it sounds like you're kind of more into into creative type strategies versus the traditional buyouts rented out. Hold onto it for everyone else.
Tamera Aragon [00:03:11] If I do that, if it if I need to, I could tell you a story recently I intended to flip had full even had my money partners, as you call them, with me on it. And we had totally intended to flip it and I've had it and I was able to get the right amount of rents, which makes me sound kind of mean. But the rents were so low it was like double. So we're taking in like four thousand a month and we're all just happy and we're just sitting on it. So sometimes it just works out better to keep it.
Dave Debeau [00:03:37] There you go. Well, you're flexible, so that's great. So one thing that I always love talking with, with experienced real estate investors, especially in the kind of fields that you're focusing on, Tamera, is what's working best for you for finding motivated sellers? Because in order for your business model to work and correct me if I'm wrong, you need to be able to get the properties at a significantly below market price, but below after repair value price, most definitely in order to be able to go in, make all the repairs that you need to make, hold on to it for however long. You have to hold on to it, sell it and create a reasonable profit for yourself in your investor partner. So there has to be some spread in there. How do you find what do you find works best for finding motivated sellers?
Tamera Aragon [00:04:30] Well, before I answer that, I want to point out where I live. California. Yeah, right up the road, houses are selling and weigh over asking. Very difficult to find good deals for some right now. So I will say that I've really developed an excellent system and I didn't do it in the first minute of my business. So remember, this was thirteen years ago when I started. So I started by knocking on doors. I started by putting bandits. I started by hand writing letters because we couldn't afford to pay for marketing. So for anybody listening, that might be in that place. But you know what? I didn't have that. We have now the Internet. We have the entire. So one of the things that one of my software is that I sell offers pushbutton way to go find for sale by owners on Craigslist and Zillow. So if somebody had to manually do all that stuff, that's great. And then with that, there's some really ways that you need to talk to the sellers that are important, not just reading a bunch of questions. And I have people now that do some of this stuff for me and it takes a lot of time to get them to get it right. It's about connecting with the seller. People buy from who they can trust and finding their motivation. And those two things take a little bit of a way of doing it. Yes. Yeah, I was going to use that word. Yeah, some training. There's some books, actually. There's a book I'm just reading right now. On that note, if you don't mind, I'll share that. I just want to get the name right. So it's called Never Split the difference, negotiating as if your life depended on it. And it is one of the best books on how to talk to people and get them to listen and figure out how to create what I call the win win. So my favorite question I always ask and not in the first second, but in a way, however it needs to be asked is what do you want? What do they want? I mean, if all they're looking for is a lower price than, hey, you're you're going to have a hard time because they can do that, then it just becomes about one dollar more. Right. So I always went in talking to you to try to really dig and pay attention to what it is that they're saying that they want. And I tell them I just want to create something that gives you you want what I want and let's see what we can do to make this work. And so I think a lot of the reasons a lot of people don't do well is when they finally do get a seller on the phone, which is always not. The easiest thing is they don't really work with the seller to meet their needs.
Dave Debeau [00:06:57] And so that's kind of a conversation, is it?
Tamera Aragon [00:06:59] Yeah, it's a networking business. This is a people business. And like people would like to think it's a people business all the way around. And I've just built good relationships. But it's OK. So if you ask me where I'm getting my deals, let me tell you that. So I have a really good system I've developed or I work within where I use some direct mail. But the direct mail generates phone calls that go into a it just gets to pick up the phone and call. It doesn't really give them enough information.
Dave Debeau [00:07:26] I want to buy your curiosity.
Tamera Aragon [00:07:27] Exactly. So it's a curiosity piece gets like that, says, hey, you know, really urgent. You need to call me about your house. And so then they pick up the phone and then there's a little recording. But the bottom line is this. I got their phone number now and then I laid and take people out, thousands of calls, thousands of calls. And these are people who are receiving the cards because we know they have a problem. We know they've either. There's a reason we've sent them this car. Sometimes it's for closure. Sometimes it's late on tax. Sometimes it's just because it looks like they've owned a house that they don't live in for ten years. Thus perhaps a landlord that maybe they might be thinking about selling. That's not so motivated. But so, you know, we send direct mail pieces to people who aren't on the necessarily on the radar for sale, and then we entice them with this card and then follow up with some more regular letters. And we keep calling until they just tell us to go away and sell you their house. Yeah, we're selling their house. And the truth is a good percentage to say, you know what, I don't have a house for sale. I don't want to sell the house. And we don't bring up the problem. We talk to them. We just tell them we're buying houses in our area. So that's key, too. Don't talk. If you're going to knock on doors to a person in pre foreclosure, don't mention that you know they're in foreclosure. That's not helpful.
Dave Debeau [00:08:42] That's your name on the pre foreclosure list.
Tamera Aragon [00:08:45] You look like an ambulance chaser. It's horrible. So, no, you're just buying houses in the area and you want to know if they happen to come across there right now? Well, no, I send out thousands. I it could happen, I guess. So my direct mail is in a system that goes into a CRM system and we call a lot of different times and text message and just really push. So that's working really well. And then I've also networked with have a good network of other investors and what I might want somebody else might not want I mean, what I want, they might not want. So we just trade off. And sometimes I've made let's say I'm just going to throw a number twenty five thousand dollars on one hundred and twenty five thousand dollar house that I never had to buy because I sold it.
Dave Debeau [00:09:28] Well, that's a very good wholesaling fee. My goodness.
Tamera Aragon [00:09:32] It happens. It happens often, actually, because right now houses are hard to find and I'm getting them.
Dave Debeau [00:09:37] So because you've got them, you've got a marketing system in place. And just the the little bit that you've told us about it is a very, very robust marketing system with a lot of moving pieces and a lot of people involved. And quite frankly, most people are just either too lazy or too busy or just not organized enough to get something like that set up.
Tamera Aragon [00:09:59] Exactly. But it pays off. I mean, it pays off big time. And I'm not sure why I got people calling for me right now that aren't in another country. Sitting in my office, we're team I mean, we work together to make this happen and I think team people networking, other investors, like I said, I got realtor friends. I've been doing it so long, I just make friends with everybody that I know and it's just been helpful. So just remember, everybody, you know, probably has or knows someone with the house and just let them know what you do.
Dave Debeau [00:10:33] But just because, again, marketing is very dear to my heart as well. So can you give us because you're doing this as a serious, serious business. It's all about a funnel. You're starting out with a whole bunch of leads at the top and then you're putting them in. At the end, you're getting a little stream of quality leads at the bottom. At what point do you actually get on the get involved in the process?
Tamera Aragon [00:10:59] And they set an appointment in the area like I just got back. In fact, it was not even close to the area. And I was like, oh, gosh. So I called the guy, just kind of talked to him a little bit more because I didn't want to drive, ended up going there. I mean, I just got back and I met he was kind of an older gentleman ready to be done. It was vacant and had some bad tenants, didn't want to refill it. And he we just connected. I mean, we just connected right off. I really was kind of surprised that I actually got there. I always another big trick I want to call a trick. It's not a trick. Bring a contract with you. OK, be ready to close. So I had the contract with my dollar amount that I wanted to pay before I got there on it. Now, I was I still had to cross out a little number on there, but we were able to come up with something that made sense. But he and I connected and I just said he goes, well, what's next? And I said, well, I have the paperwork in the car. I could just bring it in and we can just be done. You could just be done. So. Oh, OK, I'll get it. So I did. And he filled out the paperwork and I could tell he was like, this is this is this is it. I'm going to go and open escrow and a title company and they're going to call you and you're going to go sign here and get a check. That's it. I handle it. Really? That's it. I go, yeah, really. I mean, even he was like, it's not that complicated. It isn't that complicated. Then he does even something else a little bit better. I go, well, I might want to have my contractor come and crawl inside that attic just to make sure what you told me because I can't see it. Do you mind if you want to meet me and my dreams an hour and a half away? That's why he wants to get rid of this place and he goes, well, maybe I could just give you the keys. So I actually got the keys.
Dave Debeau [00:12:33] That all you want. But it's not it was not just the conversations you've already built up trust before you even met with the gentleman. Right?
Tamera Aragon [00:12:41] My lead intake person. I never actually met you. I walked up. He goes, are you gone? Radios. Oh, I thought Caylee was to tell her I was coming. But yeah, it's a people business. I mean, really it is. And, you know, we have to have systems in place to generate believes like. OK, so that's too I'd say there's two big sides. So there's the direct mail, some of that comes through and then I have a scraper system that goes out, pulls the Zillo, Craigslist, push button instant text message, pick up the phone and call. And they're responding to those text messages. I'm telling you, if you have contacts and text messages, I mean, it works out really well.
Dave Debeau [00:13:20] It's nice of you. If you text message, I need to talk to you, but you're out telling it.
Tamera Aragon [00:13:25] Exactly, because that's for a for sale by owner. I mean, they are selling their house. Right. And then there's the voicemail system that I could just push a button, upload a spreadsheet and send a voicemail to eight hundred people at the same time. So there's lots of systems that I use that are very cool, that are really helpful. My elite intake people use call rail to make the calls, so I'm able to listen to any calls I want. And I randomly, just randomly and they'll tell me I'm having a hard time today. Why don't you let me listen to a couple and see where you're at. So, you know, I recall
Dave Debeau [00:13:59] how many people do you have calling making calls for you?
Tamera Aragon [00:14:02] Just three times that many. Yeah. And actually their systems you can even buy for that, that like randomly rang ten numbers and when one picks up. But I don't like that sound. Have you ever done that where somebody you ever get a call where it's kind of a click click and it has to have a name. No, it's going to be a salesperson. So that's but that one does. And so I don't want to do that. I am a little more down home. The people that I'm working for me are like family of one person with me for twelve years. Well, I had a lady I just hired actually I've known her since she was a little girl that just worked for me for now, maybe four months. But yeah. So yeah, I try and then I'm in a realtor's office and my husband's getting his license and the other guy in there and we got a property management. So we're building kind of as we call it, machine is what we're looking at.
Dave Debeau [00:14:46] Sounds like you've got the organization of the systems in there very, very well.
Tamera Aragon [00:14:52] But I want to help others who don't yet. I mean, I'm hoping and talking at the camera.
Dave Debeau [00:14:58] So first of all, because we're running out of time very, very quickly here, if people want to find out more about you and perhaps how you can help them set up their own machines. What should they do?
Tamera Aragon [00:15:09] Well, I got a free resource at r e i s e dot com. They go there, they'll get a book. Twenty seven ways to find real estate, some of those finding resources. And then they're part of my posse, which means you're going to get some emails from me, which you can unsubscribe any time. But basically in the emails there are a lot of free and charged different emails, resources that will be helpful to you and building your business. And then I have locator gold, dot com locator, gold, dot com. You'll see a little 20 minute video for me on there where I have a system that allows you to find leads from your desktop. And if you punch in some leads and an investor buys them, you get paid a thousand. But you only need to supply a little bit of information and you don't have to get into a contract. Don't hardly have to do much
Dave Debeau [00:15:58] to earn a little not quite wholesaling.
Tamera Aragon [00:16:00] It's a good starting. It's a good way to just kind of get your feet wet. And also, frankly, you can wholesale or put those same properties. You don't even have to give them to me because now you have access to the system.
Dave Debeau [00:16:10] Beautiful, Tamera. Time flies.
Tamera Aragon [00:16:13] When you said it was going to be short, I'm like, oh, my gosh.
Dave Debeau [00:16:20] But I also told you we're having fun. We get to come back and do it again, that's for sure. So very, very nice to meet you. Thank you very much for sharing some of your wisdom today on the show.
Tamera Aragon [00:16:31] Thank you for having me.
Dave Debeau [00:16:32] All right, everyone, take care and we'll see you on the next episode. Bye bye. 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 it. 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.