How to Build a Multi-State Empire After Losing Job?

Parker, How Did You Begin Your Investment Journey?

There are millions of ways to make money in real estate. It’s so easy to get distracted by shiny-object syndrome. I had my real estate license but went into investing through a non-traditional channel.

I was fired from every non-entrepreneurial job I had. It took me time to understand that I wasn’t made for the 9-to-5 world.

I had a job in the industrial commercial sector where I was cold-calling tenants and landlords. Before I was fired from that job, I stumbled into flipping houses. With experience in multi-level marketing, I went undercover to research and try my hand at the house-flipping business.

It’s important to have the right marketing training so you can pursue the journey without seeking immediate gratification. Success in any business venture is a long-term deal.

Getting Your First Deal As a Real Estate Investor

It took me eight months to find my first deal. My first paycheck of $12,500 came through a wholetail deal, before the term “wholetail” was popularized. I then pursued rehabs, but soon I realized that I hated managing contractors and all construction-related matters.

Virtual Wholesaling Business

I opened a virtual wholesaling business in Charleston, South Carolina, about five hours away from me. After some success, I did the same thing in Atlanta. My next destinations were Columbia and South Carolina.

My company had a 1099 team that worked with me for 5–6 years before I decided to also have a W2 team. It didn’t turn out as I expected, and within a short timeframe, I went back to virtual wholesaling.

How Are You Finding Off-Market/Motivated Seller Leads?

The state of South Carolina has recently made wholesaling illegal. There are 13 or 14 other states that have some form of legislation regarding wholesaling real estate.

A major part of our deals came from South Carolina. We had to pivot in a different direction. Now we work in 10 different states, with a heavy reliance on PPC, direct mail, and television.

Why Are Single-Family Homes Such a Strong Asset Class?

Getting into single-family investing is easier, and there is always a bigger buyer pool. SFH and multifamily properties are recession-proof if they are not premium apartments or housing facilities. People will always need a place to call home. That’s why single-family homes remain in demand, regardless of how the market is shifting nationwide.

Should I Restructure, Hold, or Flip a Deal?

We use a specific process for every deal using a “deal qualification cheat sheet.” As a team, we review the deal considering minimum ROI, expected profit, and the impact on profit with various strategies. It’s always the “quick nickel vs. slow dime mentality.”

The decision also depends on the current cash flow in the company. Here is the rule:

If we can make double the amount of a wholesale deal with a minimum profit of $35k, then we’ll go with flipping.

A lot of business wisdom comes from mastermind groups where I network with like-minded investors. I am connected to groups like “Brett Tanner's Be Wealthy Mastermind".

Putting Together the Right Systems and Team for Business Growth

Currently, we have 36 properties under contract, including wholesale, renovation, and ongoing rehab.

We have a process for hiring sales team members. For executive positions (director of administration), I already have people working with me for the last couple of years. My sales manager has been with me for the last eight years, while my general manager has been with me for the last five years.

These teammates know the process better than I do, which allows me to build my hard money lending business in Georgia.

Negotiating with Motivated Sellers

These negotiation tips are a must-read if you want to successfully close more deals with motivated sellers. We have weekly trainings to update and improve our negotiation strategy. We always go one step down in the negotiation. That means we’ll refuse more than the person.

So let’s say the seller mentions the offer is low. My reply would be:

“Can we call it a no and go our separate ways? I am disappointed with my finance team for delivering this offer. I will see if we can do any better, but let’s call it a no for now.”

Seller: This offer could work, but…

Investor: I am not going to work with someone who thinks this might be a good option for them. We do 5–10 deals every month, and it doesn’t have to be this deal. I can pass on it. It has to be a win-win for me to sleep well at night.

Seller: I want to sign this deal.

Investor: Are you sure you want to sign this deal, because this is a big step? Where are you going to go? Have you thought about it? I am concerned about you. Is there anybody who might be frustrated with this decision? I just want to make sure that you’re super-confident about this process.

Let’s say the homeowner says their home is worth $400k. My immediate response would be: “Where did you get that number?” I want to get them talking and understand where they are coming from. I speak less and let them talk. It’s called mirroring.

How Do You Provide Quick Cash Offers?

I put the expected ARV, current market value, current market rent, and other information into my repair calculator. It’s an extensive calculator that I have made available for free to others. Try it, and you’ll see how useful it is for calculating market value offers. You can access the calculator at coachingwithparker.com.

What’s One Quote or Mindset That Has Helped You Achieve Success?

I like the mindset offered in these words:

“It’s going to be harder than you think to do what you want to do.”

“It’s going to be longer than you think to go where you want to go.”

Success is achieved through little incremental things. If you keep doing the small (non-urgent but important) things, there will be a massive compounding effect waiting for you.

What’s Next for You on a Personal or Business Level?

My focus is on the four business pillars, which are flipping/acquisition, lending, coaching, and my real estate portfolio. The first three are active investments, and my portfolio is my wealth or stream of passive income. The goal is to establish a portfolio that provides enough cash flow to outpace inflation and ultimately grow wealth.

You can connect with Parker via his website: https://coachingwithparker.com/