Finding Discounted Properties with Zack Boothe

March 31, 2022

 Expert CRE Secrets Podcast

“One thing that I believe in it's really changed my life is serving and giving. Because I really believe that whatever you give will come back to you.”


Zack Boothe has done over 300 real estate deals and has generated millions of dollars for himself and for his friend's family and his students who learn how to do wholesales and all kinds of other things in real estate. In fact, he has an amazing company that we're going to learn about DFDMastery.com


He remembers what it was like when he first got started in real estate. He’d wake up every morning full of confidence and courage, ready to attack the day. He had a focused plan and he knew exactly how to find smoking hot real estate deals, and quickly turn those deals for huge profits.

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Finding Discounted Properties with Zack Boothe

Brett:

I’m excited about our next guest. In fact, he’s a repeat guest. He’s done over 300 real estate deals and has generated millions of dollars for himself and for his friend’s family and his students who learn how to do wholesales and all kinds of other things in real estate. In fact, he has an amazing company that we’re going to learn about DFDMastery.com. Please welcome to the show with me Zack Boothe, Zack, how are you doing today?


Zack:

Doing well. Thanks for having me, brother. It’s good to see you.


Brett:

I know Today’s a big day you got your braces off and your great State of Utah is smoke over in over from California going over the top but you got your braces off. Nothing really matters.


Zack:

Nothing matters anymore. It’s actually kind of funny dude, the day I got them on two years and seven months ago, I actually had an interview with the new title company we’ve been using. We were having lunch too. I drool all over myself. I was like, don’t mind me. I just got braces. I’m sorry. It was so embarrassing., it’s good to have them off. It feels great. For sure.


Brett:

We’re gonna talk about all things, finding discounted properties. By the way, you can go back to the March episode, search Zack Boothe on YouTube or iTunes for my podcast, and you can hear his full story. But we’re just gonna dive into just deal stories that are happening right now what’s seen in the marketplace, what things are working for wholesalers and real estate investors alike. Let’s just give a brief one-minute background and stories and then let’s dive right into today’s episode.


Zack:

In the background, I used to be a window washer. I’ll keep it as simple as possible. You can actually find my window cleaning tutorials on YouTube with millions of views. But I got into real estate investing real estate wholesaling more specifically, did my first traditional wholesale deal, it wasn’t my first real estate investment deal. But my first traditional where I sold the purchase contract before I ever closed on the deal, and made $10,000 that was back in 2017. Fast forward to this year. I right now we’re recording it is towards the end of August 2021. Last week we just generated we just hit the $1 million mark in wholesale fees. In fees coming into us. We’re on track to do when you were between 1.5 a 1.6 million for the year with a couple of Whopper deals pending close. That’s just a simple background. As you said, you can learn more from the other podcast.


Brett:

By the way, you can learn more about what Zack Boothe does for his students and his clients, partners friends family at DFDMastery.com. That’s D as in David f as in Frank D as in D. mastery.com. Let’s talk about that one. That was before the show. you’re chatting a little bit about this big deal, this larger deal. I guess the first question I have is what’s the biggest, biggest takeaway so far have been able to capture this deal and structure the deal. It’s a win-win for everybody?


Zack:

I’ve had some fun deals this year. one’s actually a personal house, we ensure that one later. But the one you’re referring to is actually one of the biggest deals I’ve ever done hasn’t closed yet. It might be the biggest loser. But we’re forecasting the biggest revenue on any deal we’ve ever done. Total profits on the deal should be close to $600,000. That’s after paying off my private money investor and paying him a nice return and remodel costs and everything else. Then the person that brought us that the deal we’re partnering with and we’re giving him 50% of the deal. He’s helping manage as well as a general contractor. He’s doing that portion of it. But we’re going to our cut will be about 300,000.it’s a traditional flip, I don’t do a ton of flips, I don’t like flips, because I don’t want to manage construction projects very much. I want to find deals, source deals, do marketing, and get paid for finding investment opportunities. Then the deals that I actually close on I want from my own business or my own portfolio. my own net worth, but the way you asked how we found the deal? It’s how the listeners can duplicate.


One thing that I believe in it’s really changed my life is serving and giving. Because I really believe that whatever you give will come back to you. I read a self-help journal called Living Your Best your ever talked about the importance of whatever you want to receive, you have to give us if you want love, you have to give love. If you want money, you have to give money, you have to put money in people’s pockets. I started coaching and teaching people what I was doing for the whole purpose of putting money in their pockets. The universe or God, or whatever you want to say will return it to me. That concept really changed what we do and how we do it. We started helping and teaching other people in our market, what we’re doing and how we’re doing it, how we’re finding deals, someone found a deal and didn’t necessarily know what to do, because there was a complicated situation with tenants and the old landlord was crazy. There were like six college students partying in this million-dollar house is it was madness. He ended up bringing it to us. that’s how we source the deal just through relationships, which is pretty cool.


Brett:

I imagine the larger deals you can own and and and get more scale right by kind of going through the blocking and tackling takes more time. The bigger the deal, the bigger the opportunity to profit that probably the more likely you are to own that versus just to turn it and flip it, or maybe that’s not the right word to assign it.


Zack:

To sell the purchase contract. I mean, it’s actually kind of surprising. Most of the properties, if we flipped them ourselves, we probably make darn near the same amount. By the time I pay the contractor, I don’t have my own staff to do the flips. A lot of these flippers, they’re making their profits. They’re probably making as much as if they just contracted out the labor right if they were just the general contractor on the project. But they prefer to do that because they don’t have homeowners to tell them what to fix and how to fix it.it’s crazy what people are paying for deals. That’s why I love wholesaling, I’m making just as much and I don’t have to go through the hassles. Maybe if the market turns and there are more sellers than buyers that might reverse and I might have to do more project management. But normally wholesaling is the best strategy, it’s the most profitable the least amount of time, especially in this current market. But on this particular house, the tenants were in place, they had another four months on their lease. The owner didn’t want us to get into the house. We’re able to get into it initially to get pictures and stuff. Then when we blasted out to our cash buyers, we were asking about, we got to about 750, we were asking about 1,000,001 point 1 million.


After repair value is about 1.6. We were happy to take 150 and you know, our cut, and I have to do anything and leave quite a bit for the flippers. But the problem is the flippers couldn’t get in and look at the house. Because the seller was being difficult, didn’t want a lot of inspections. We had to pay the tenants to move out because they still had time on the lease, there were a lot of complications and our buyers were just being really finicky on the deal. One thing that I always do with every deal that comes across my table is evaluated what’s the best strategy? What’s the best exit strategy? Should we flip it? Should we wholesale it? Should we close on it and just list it they call it wholesaling. Should we keep it as a rental for myself for my own portfolio, and so it’s just the way it ended up being the most profitable. Sometimes we’ll take a little less profit to wholesale and not have to deal with management and potential risks of like there are broken water lines, hey, there’s this there’s that there’s lots of unexpected.


Brett:

You assess each deal on its own marriage. Ideally, you can just wholesale it assign it, and be done and it is off and running. Sometimes you might own and rent it sometimes you want to own and quickly flip and then sell it all makes good sense. By the way, you can learn more about Zack Boothe at DFDMaster.com. Now, what’s changed if anything, and the fundamentals of actually finding these discounted properties? Are certain things working better than others? Is it creating the YouTube videos and having a cameraman following around everywhere? People call you more? Is it? Is it Facebook targeting ads? Like is it the robo dialer? Like what do you feel like is the thing that’s working best for you right now to find off-market properties?


Zack:

Like all the podcasting that I’m doing in my own Podcast and YouTube Channel and that kind of stuff. That’s for me to give back and to help other people that are getting started. Also to find people that need a coach and a mentor that I can help right like that’s what that is for. It’s kind of my distraction business that keeps me from making more money in real estate investing. Because I love it right and I want that to be my legacy. It’s the Stephen Covey start with the end in mind. I want to be remembered for helping and serving you know, and so that’s what that is. But the way I’m sourcing all of my deals is from driving for dollars. You’ve mentioned my website Driving For Dollars Mastery. What I do is I drive around and identify properties that have physical signs of neglect, and then I reach out and see if they want to sell. I don’t think it necessarily matters. Whether you text cold calling postcard or do all three We do all three of those. Our most profitable right now is postcards. that’s in Utah or our Florida market, we’re doing more off texting as far as cost, but we’re spending anywhere between nine cents to make $1. Our most expensive one with driving for dollars is 2029 cents to make $1 our most expensive so when we drive around we find these off-market discounted properties.

Finding Discounted Properties: “To be successful in real estate, you must always and consistently put your clients’ best interests first. When you do, your personal needs will be realized beyond your greatest expectations.” – Anthony Hitt

We’re just driving around looking for the ugly ducklings in the neighborhoods and see if they want to sell so we break down so we use an app called Deal Machine right now and it quickly allows us to identify the house and just push a button on the phone uploads their information in the Excel spreadsheet for us we then export that list text cold call and postcard but that that list that driving for dollars list in my numbers that I look at I break it down into different marketing campaigns I call it my driving for dollars absentee owner list my driving for dollars owner-occupied driving for dollars corporate and driving for dollars turd list, which is our ugliest of houses right we separate those into four different categories. Our most profitable in Florida is our driving for dollars absentee most profitable in Utah’s driving for dollars owner-occupied I mean, they’re all very, very profitable. Don’t get me wrong. As I said, texting is more is the most effective than the three in Florida. Then cold calling, then postcards in Utah. It’s postcards, then texting, then cold calling. But, that’s how we’re finding our to be as transparent as possible. That’s what we’re doing is actually use the same thing, same strategy to find my personal home. We’re buying. That’s one of the most exciting deals I’m working on right now.


Brett:

I appreciate you sharing that’s good details. You’re driving around, you’re looking for the dog. You’re looking for the thing that has some need some love, some neglect. Then boom on a deal machine. You’re just like, I’m pitching like Zillow app or Redfin app, you click that house and then that’s going to automatically start sending it to this other list. Then from that, you compile I don’t know 15 to 20 homes that you found that that one drive right and then then you’re going to start to email and pacifically target text calls and my calls are you doing like, like physical cold calls, or is it like a Robo Dialer where it’s just leaving a voicemail? What’s your call look like?


Zack:

Just cold calling. I think on the previous episode that I did with you, we talked about the 40-day challenge where I actually went out and did this life with the camera crew following me.in 40 days, I mean, 93 grand wholesaling, and then kept two rentals with 100 grand in equity. I made almost $200,000 in 40 days doing this, documenting it. When we cold call, we use a triple line dialer called MojoSelles.com there’s more than one, there are lots of them out there. A lot of my real estate agents listening, you guys know like you guys have used that kind of stuff a lot. And texting, we’re using batch leads, so you can go to BatchLeads.com, I should give you guys some discounts, you can save some money too. With batch leads for texting, you can use the discount code, DFD stands for Driving For Dollars. Then with Deal Machine, you can use the discount code pin to get a nice discount as well. Then to get phone numbers for a much better price. We actually don’t use Deal Machine we use a company called batch skip tracing, which is a sister company of batch lead, batch skip tracing, you can use my discount code DFD as well. , I mean, that’s what we’re doing. It’s pretty cool. Because my wife and I, we’ve been debating for like a year like where are we going to live? Where do we want to live? When I was a window washer, I get to work and all the wealthy areas here in Utah and meet some amazing people. I love this little place called mountain green has beautiful mountain views.


I from the time I was a teenager washing windows, I was like I’m gonna live here one day. But my wife’s from San Paulo, Brazil, 18 million people in Salt Lake City like a small town for her right? Moving her kind of up in the mountains where there are cows was out of the question. But she was finally convinced that’s a good idea where we could raise our kids. I finally got the green light. We drove around up there and said, Tell me what neighborhood you want to live in and I’ll find this a house. We identified the exact subdivision that she wanted. Within one hour I had tagged all the properties in the neighborhood had phone numbers and was doing a texting campaign to that whole neighborhood saying hey, I want to raise my family here. Any of you want to sell your house I’ll pay full retail you don’t have to pay an agent and I found a buyer within an hour or a seller sorry within an hour within our price range the exact house that we’d want that’s within walking distance to the school.so it’s pretty cool because these strategies that I use it would work for a real estate agent to find listings that would work for you to find a personal home to find investment properties, flips buy and holds, or even wholesale deals as I use it for so it’s kind of cool how much this strategy is blessed my family and continues to bless my family different ways than I ever expected. It’s pretty awesome.


Brett:

We got all those you guys got a bachleads.com, DFD, Deal Machine. Look, PIMP as in Paul I M as in Mary P, and in batch, keep chasing DFD for the discount codes. Then you use it for your own place, you got the dream house in the mountains, loving it. That’s really, really, really inspiring. Let’s talk about your coaching program and what you do there. If you’re a commercial real estate broker listening to this, and you want to level up your skip tracing and your, your uncovering leads, what’s that look like? What’s the kind of the process there? Kind of give us the rhythm and the flow of that?


Zack:

First, I want to say this, check out my free content first. I want you to check out my free content. I have a podcast, you can go to DrivingForDollarsMastery.com. You might be thinking, why are you not promoting your coaching. It’s not because I don’t want you to become a student. But I want you to when you do join you understand what you’re getting yourself into. Because it’s a lot of work.? I have some requirements that go through those really quick, I require that you have enough time I need at least 15 hours a week from you to dedicate to this, I need you to spend at least $500 in marketing. I need you to be okay sharing your success story on social media and being on my podcast once we help you do a deal. I need you to tune out all other gurus what I say is all you need.so I need you to not do a hybrid of what you heard there and what you hear here and what you hear from me I need you to do exactly what I tell you to do. Then once you get access to the course there’s no binge-watching its implementation as you go. There’s no watching the entire course. Then starting from zero now you do the first video you watch it you implement there in order.


When you join my program, you get an online course its action steps, everything you need to do to be able to source deals, find deals, wholesale deals, negotiate everything you need to know around wholesaling, and sourcing deals. You don’t necessarily have to wholesale if you want to buy and hold or flip. But I teach you how to find the deals, how to negotiate them, and the entire process. You also get direct access to me, you have my cell phone number, we have a weekly group coaching call, zoom call, there’s support through Facebook, any questions you have, I’m there your picture goes on my office wall, this is my recording studio, but you go on my office wall, it helps you remember who you are, what market you’re in where you’re at, I have sticky notes on all my students and updates and what contracts they have and where they’re at in their businesses. It’s pretty intensive like if you join my program, I want you like really dedicated that’s why I say check out the free content first because I’m not here to recruit, I’m here to actually help and serve and give a ton of free value., if you’re interested in go to my website and book a call, and talk to us more about what it is and how it works if you are interested.


Brett:

I think that’s so true.? Because you want it to be a slam dunk and a home run for everybody. If you don’t have the time or they have the ability to commit and follow these things, then it’s going to be tough and magazine sports growing up playing basketball, playing football, and there’s like these are the non-negotiables. It’s like, if you’re not getting those basics, then we already know it’s not going to be a winner for you or for us. Let’s just establish those upfront 15 hours per week. $500 at least has been a marketing spin. Sharing success stories.? Tune out all other gurus know binge-watching, I love that. You’re going to go in order. Then we’re going to implement like, watch it implement, watch it input and slowly build. Is that a fair summary?


Zack:

I mean, it’s funny because of all those things. I started coaching for the sheer fact of putting a million dollars in my student’s pockets like, remember, I did the self-help journal, and it talked about whatever you want to receive, you have to give so I had set a goal of generating a million dollars in a year and I had no freaking clue how. But I started teaching to put a million dollars in other people’s pockets. The more I taught the more I learned. Then I also because I started coaching to make my students successful. I started really learning what made students successful and what kept students from being successful what were the roadblocks, what kept them from being successful? What made me such a successful coach, and I say I’m the most successful wholesaling coach that exists out there. Not because I’m so great, or how much money I make as a coach because I’m horrible in that world. I promise. There are guys making way more money than me as a wholesaling coach. But my students are more successful. I have the highest success rate my students are successful because what I teach and how I teach it works right. I want to keep it that way. I don’t want to tarnish. tarnish the effectiveness of what I do. love it, brother, man,


Brett:

I’m so glad you’re so clear on that and that’s fantastic. Helping others get what they want. You can have everything you want, and learning along the way. That being said. You can learn more about Zack Boothe at DFDMastery.com. Are you ready for the lightning round?


Zack:

I am ready.


Brett:

Zack, here we go. Knowing what you know now if you go back to your 20-year-old self, what’s the one Golden Nugget you’d make sure to tell yourself to do?


Zack:

I would say you’re not stupid. I probably shared this last time. I really would say this. You’re not stupid but invest in education, educate yourself, not traditional education, but invest into education and things that you find interesting.don’t just hustle.? hustle is part of it. But it’s kind of like getting fit 80% in the kitchen 20% in the gym, I really believe that 80% of our success is our understanding of our education. Then the 20% the implementation.


Brett:

Number one book you’d recommend or gift for the most in the past year?


Zack:

Two, I’m gonna give two, because I can’t just see why. The 7 Habits of Highly Effective People. I love that book. I refer to it a lot. Stephen Covey. Then another fantastic one that I have all of my employees read. Because I want them to have a good mindset when it comes to money because we’re trying to make money. Is it’s actually this one the Secrets of the Millionaire Mind by T. Harv Eker. It’s an amazing mindset book around money and overcoming limiting beliefs around money.


Brett:

Next question, what do you most curious about right now


Zack:

Chasing my purpose in life? It’s been really fun. I’ve had a lot of successful students over the last two years, that I’ve helped them make a lot of money. A lot of those students are now coming back to me and asking for help on how to scale and automate their businesses. They’re asking me questions like how do I know if my goal is big enough? They’re listening to things from my grant, Cardone, or it’s like, you got a 10x your goal your bigs, got to be your goals got to be hairy, audacious your goal has to be bigger, you’re, you’re thinking too small. They’re building goals to feed their ego, and not necessarily building a business to serve their life’s purpose and their mission. I’m, I’m finding it very interesting as I’m helping these students scale and automate their businesses to learn to build their goals around building a business that serves their long-term mission. Living with the end in mind, by Stephen Covey. Right talks about that. That’s been really, really fun for me to really start to I’m only 32. But I feel like I’m getting older. I’ve been in business started my first business when I was 17. It’s been really fun to see that evolution of just hustling to make money. Then I got to the point where I had more money and I knew what to do with and then it kind of was like, Well, now what and finding purpose behind my businesses and seeing people’s lives being changed. Building a business around purpose more so than just profits has been a very fun thing that I’m I’m starting to discover in life.


Brett:

Zack, we’re out of time now for listeners who want to get in touch with you with the one place that they can find you, right and one last time.


Zack:

Driving for Dollars Mastery.com or dfdmastery.com


Brett:

Zack Boothe. Thank you for being on the show. Thank you for sharing so much wisdom, I’m better for it. I’m inspired. To start my mojo my batch skip tracing my deal machine, more so can get a coach like Zack to help you guide you along the way.? Whether you’re a commercial real estate broker, whether you’re a commercial real estate investor if you don’t have a coach who’s helping you to level up and all of these fundamentals of finding sourcing deals and doing deals. You’re missing out. Zack is a great choice. I think you’ve seen that here so far.


Zack:

Could I do nice? Can I say something about coaching? I’m sorry to interrupt you. Because I think some people will hear that and think that I’m like paying you to pitch me. I know you’re not in the audience may not know that. But if you’re but I really think that you should get a coach. I’m not saying that because I want you to hire me. I want you to find a coach that’s doing and is accomplish what you’re trying to accomplish. That consistently can give that to other people and is done that and someone that you could be friends with. because if you have to spend time with that person, and you don’t like him or her right then don’t hire that person. I think that’s the criteria go find a coach even if it’s not me, one of the biggest mistakes like I said when I was in my early 20s I just hustled and tried to make all the mistakes myself instead of investing in education. The success I have had is because of my coaches. Because of Tom Kroll because of Cody Ha fine because of Brent Daniels because of Pace Morby because I could go on and on and Tony Robbins and I’ve spent so much money with all these people and it’s changed my life forever. Totally this was not a pitch and there’s no compensation here. I really want you guys to really find a coach so I wanted to make sure that was said.


Brett:

As I can thank you so much Warren Buffett said well the bit the best investment you can make is in yourself, so it’s don’t go it alone, get a coach level up and go and serve in your highest and best purpose for other people. Zack, thanks for being on the show, and also want to thank our listeners for listening to another episode of the eXpert CRE Secrets Podcast also streaming on capital gains tax solutions comm or we believe most commercial real estate brokers, M&A advisors, Business Brokers, they struggle with clarifying their passive income options not having a clear plan is the enemy and using a proven brokerage model with eXp Commercial and buying investment real estate and do some wholesaling with someone like Zack Boothe is the great way to build your wealth. You can go to expertcresecrets.com to learn more about that. If you want to learn about how to laminate the need for the 1031 exchange and level up your business for your clients in the commercial real estate world, you can also go to capitalgainstaxsolutions.com to learn about Deferred Sales Trust and thanks to everyone for listening. We so appreciate you out there.


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