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Small Town Profits! How to Make Big Money in Small Towns

SHOW SUMMARY:

Many of you are aware that we don't buy properties in big MSAs (Metropolitan Statistical Area). We buy them at small towns. We bought and sold houses in 12 different states but we focus on marketing in 7 different counties in North and South Carolina. In this episode, we talked about why we buy and sell in small towns, problems in traditional market, and the advantages of buying properties in small towns.

SHOW HIGHLIGHTS:

  • Share Sponsor winner
  • Buying properties in small towns
  • Some problems in traditional markets
  • - It's difficult for newbie to compete in a large MSA
  • - You need some sales skills
  • - You need marketing skills
  • - In big cities, you need to watch your budget
  • - You need to have a great follow-up system
  • Advantages of small towns:
  • - There's more types of properties
  • - More ways to find properties
  • - More types of buyers
  • - You can go deep or wide
  • - Easy to pick multiple markets
  • - Easy to pull a local team
  • - Faster, direct response marketing
  • - Lower prices

QUOTES:

  • “Sharing is caring.”
  • “It's hard to compete in the major MSAs.”
  • “Small towns are forgiving.”
  • "You don't have to be market savvy to make money."
  • “Lower prices = bigger discounts”

RESOURCES AND LINKS FROM THIS SHOW:

SHOW TRANSCRIPT:

Kandas: Weirdo. He’s such a weirdo.


Larry: Hello, what’s happening? How is everybody? Look, that’s crazy.


Kandas: Yeah, that’s what you look like.


Larry: Remind me not to ever do that again. Hello, Janice how are you doing? Thank you so much for being here. I hope everybody is doing well. Thanks so much for watching. Make sure to share, share, share. So, you can win a Real Estate Day Trading Jump Start right here. It’s got my mug shot on it right here.


Kandas: That’s a very young you.


Larry: What do you mean?


Kandas: That’s not a recent you. That’s like a 15-year-old you. 15 years ago.


Larry: No, it’s not.


Kandas: Yes it is. That is from 2013.


Larry: Seriously?


Kandas: Mm-hmm.


Larry: Well, you would know.


Kandas: I do know.


Larry: That’s funny. So, thanks a lot for being on. We really appreciate it. Let’s just jump right in with the share sponsor winner. Today’s share sponsor winner is Jose Luis Lloret.


Kandas: Jose Luis Lloret.


Larry: Tell them what they won.


Kandas: The Real Estate Day Trading Jump Start.


Larry: Tell them how to get it.


Kandas: If you will send an email into customerservice@larrygoins.com, I will get your mailing address or you can send it with the mailing address saying you are the share winner for this week and I will get that out to you.


Larry: There you go.


Kandas: Simple as that.


Larry: That’s all you got to do.


Kandas: That’s all it takes.


Larry: It’s that simple then you can get your own Real Estate Day Trading and Jump Start by sharing. I’m gonna do some…


Kandas: Sharing is caring. If you care, you will share.


Larry: I was gonna do something that I don’t know you probably not gonna like me.


Kandas: That’s probably right.


Larry: Maybe I better not to.


Kandas: Well, we’ve been all right so far today so go ahead and mess it up.


Larry: I was gonna say share the video, look I’ve got a seller calling in and I’m on a live…


Kandas: You can’t.


Larry: What if we give them one of these for the first how many people that share? ‘Cause we usually have…


Kandas: How do you even do that?


Larry: 10 or 15 people. Well, you can tell the time they share this. It starts whenever I click on and it starts and stop and goes down.


Kandas: Okay.


Larry: The first 20 shares. How about that?


Kandas: You are saying the first 20 people that share…


Larry: The first 20 people that share this video is gonna win this. It’s not even a draw. It’s the first 20 people that will share.


Kandas: I think we don’t have enough.


Larry: I think we do. All right, until they run out.


Kandas: All right. How about they’ll be up to 20 or until they run out.


Larry: I think we have about 30 of them actually.


Kandas: I’m not sure.


Larry: Anyway, Real Estate Day Trading Jump Start, it’s on our website for $297. If you don’t win, you are welcome to invest in it for $297.


Kandas: Yours today for sharing. Jose from last week, you get one and then the first 20 people to share for this week will get that.


Larry: There you go. That’s exactly right.


Kandas: What else you got? ‘Cause I have to go look at a house today.


Larry: That’s right. You do. You have to leave at around 3 o’clock or something, right?


Kandas: Mm-hmm.


Larry: So, here’s what we are gonna do. We are going to talk about small town profits.


Kandas: Did we tell them how to get an Investors Kit?


Larry: You can call at 877-LARRY-GO.


Kandas: 877-LARRY-GO will get you an Investors Kit if you don’t have one.


Larry: I just said it, you can tell them, call 877-LARRY-GO.


Kandas: Yeah. 877-LARRY-GO. Zenobia will answer the phone for you. That will get you the Investors Kit.


Larry: Look, Steve just shared it.


Kandas: That’s awesome.


Larry: He is one of the 20.


Kandas: Digital copies of HUD Homes Half Off book, How Do You Start Real Estate Day Trading, different links to our deeper training models and things like that. So, 877-LARRY-GO for the Investors Kit. Now, we also have the 3-day event coming up. Do you have a little tutor for that?


Larry: No, I’m focused on small town profits.


Kandas: You guys need to… if you haven’t already, make sure you get registered for the 3-day event. It’s May 23, 24, 25. We are only doing 4 of this this year. All of them will be in the Charlotte area so don’t email me, comment, ask if we can come somewhere else. We are not going anywhere else. They are all here.


Larry: They are all right here. You come to us.


Kandas: Right. And it’s worth it. To get Larry I know a lot of people come through a lot of their training events come through and stuff but it’s never the person that actually had the content delivering. Well, at our events, that’s different. With our events, it is the person that’s got the knowledge, that’s got the content, that’s got the experience. Delivering it to you and it’s for 3 full days. So, it’s May 23, 24, 25. LarryGoinsLive.com will get you registered for that.


Larry: Right. It’s not a sellathon, it’s not a pitch fest. It’s me teaching and training content only for 3 full days. I’m getting depressed thinking about it. Just kidding.


Kandas: I tell you he does like delivering content but that takes a lot out of him to be that attentive and our events are very informal and are also very interactive so there’s a lot, a ton of question and answer that goes on and I had somebody emailed me asking me if it was just one of those events where you know all we do is try to sell coaching or try to give somebody a coach and that’s not what we do. Ultimately, we have a partner program, that’s not a secret you guys know that, but our events are about delivering content to give people to a point in real estate where they can actually start doing deals.


Larry: Exactly. That’s true. It’s 100% content information only. Right? Our partner program is more application and implementation. Whereas the 3 day events, it’s classroom style, yes we do have some interaction but it’s me teaching and training and answering your questions the whole weekend.


Kandas: It’s education. It’s nothing like our partner program. And our partner program is not, even though we may talk about a little bit there, it’s an application process, you can’t just show up to one of our 3-day events and automatically be in our partner program, that’s not the way that that works either. So, the 3-day event that we are gonna hold on May 23, 24, and 25 is strictly education and honestly it’s better for anybody that is thinking about our partner program to go through that 3-day education because you are not gonna get that education here. You’re gonna apply the education when you come here.


Larry: That’s exactly right. Good point Kandas.


Kandas: All right, small town profits.


Larry: Good point Kandas. Thank you. Thank you very much. All right, so small town profits. Now, a lot of you guys know that we don’t buy properties in big cities, big MSA (Metropolitan Statistical Area). We don’t buy properties in big areas. We buy them in small town USA. We’ve actually bought and sold houses in 12 different states, I can’t tell if that’s a 12 or 21.


Kandas: 12 is the number.


Larry: Anyway, in 12 different states but we focused on marketing on 7 different counties in North and South Carolina, right? Within about an hour to an hour and a half of Charlotte, North Carolina. So, all of our deals are in small town USA and we are actually doing a training where we are gonna do a deep dive on Thursday, we do buy and sell a lot of properties in small town USA and it’s a totally different animal. First of all, let me share a few things with you about some of the problems with traditional markets ‘cause this is very, very important guys. Problems with traditional markets is, I’m just gonna be totally blunt with you, I may offend some people, I’m sorry, but a newbie, it’s very difficult for a new investor to compete in a large MSA. Like if you live in Indianapolis or you live in Jacksonville, Florida or you live in Denver, Colorado or Las Vegas or Dallas, Texas or Houston or San Antonio or Austin. It’s hard to compete in the major MSA. It’s very difficult to compete. You need to go out. There’s a lot of competition there. I mean I know guys that are in those markets but they scale, they mail out 40,000, 50,000, 90,000 direct mail pieces a month, but they’ve got sales teams and they have followup systems and campaigns and funnels and all that stuff. So, that’s the problem with traditional markets. And I know guys that they go into a seller’s house and they got a stocked postcards, a stock of postcards on their kitchen table of other investors that mailed them. So, it’s very tough. The other disadvantage or problem with traditional markets being in the big cities is you need some sales skills. Not every new investor is a born sales person or is a sales person at all. So, that’s another disadvantage in the big cities. You also need marketing skills. There’s not a lot of room for error in the big cities because you got to watch your budget, you got to be able to know which postcards are pulling, you’ve got to know which direct mail list to get, you’ve got to know which mailing house to use, you’ve got to know which CRMs and followup campaigns and funnels and test and track and all that stuff.


Kandas: It’s a bunch of stuff.


Larry: It is a lot when you are in a big city like that. But small towns are forgiving. And the other thing is in big city you got to watch your budget ‘cause you can get upside down just like that. So, you’ve also got to have a great, great, great followup system in the big MSA because if not, you’re gonna miss deals because let me tell you something, a lot of the deals that you get in a big city are gonna be from followup campaigns of somebody that called you 6 months to 2 or 3 years ago.


Kandas: It could be. Yeah.


Larry: So, you got to be careful with that. That’s very, very important.


Kandas: Very important.


Larry: Very important. Some advantages of small towns is there is more types of properties. In the big city, you are looking for either fix and flips or rentals. But there’s other types of properties, right? There’s more ways to find properties in small towns. There’s also more types of buyers. You can also go deep or wide. You can go deep into one small town or you can go wide like I’ve done and go into like 7 different counties. It’s also very, very easy to pick multiple markets. With the small town it’s easy to pick multiple markets, we even do it just by county not even by the city or town as you would call it. It’s also easy to put a local team, you know, you really only need a boots on the ground and you need an attorney. An attorney can be virtual. It doesn’t have to be in the small town.


Kandas: That’s right.


Larry: You also have faster direct response marketing. What I mean by that, I mean that your crew around town is much, much quicker on your deeps. It’s not gonna take forever. Some other things about small towns that you need to be aware of is small towns are forgiving.


Kandas: What do you mean by that?


Larry: What I mean is like I mentioned before, if you are in the big MSA you need to be an expert in sale and in marketing, you don’t have to do that. You don’t have be market savvy to make money. And you can also save a tremendous amount of money on your marketing in a small town. In small town USA, you can use one or maybe two different marketing methods instead of 5 or 10 if you are in the big MSA. Because in the small town, guess what, you are the big fish in the small pond.


Kandas: And also in small towns, people talk. One thing that we noticed with our sellers that are coming in from the small towns is that they give us a lot of referrals. It’s that rapport and being able to connect with them on a different level where they don’t have 15 different people coming at them from all angles telling them they should do this or they should do this. Your trust factor I think goes up in a small town when you come in and you are able to actually help people. And when you help them, they are gonna forward you on. I’ve got a lady right now that we are doing a house with we are buying, we are buying the house her daughter lives in right now but she said that she wants to make sure she stays in contact with me so we can buy her house. And she is ready to move out.


Larry: And we bought one house from the lady. We bought it for 45 and sold it for 65. She told us about relative that she had. We bought his house for 100 and sold it for 135.


Kandas: So, there’s a caveat to that. So, you’re gonna make sure you are doing good, clean, ethical, honest business because people will talk. So, if you go in and you’re slamming or sleezy, they’re gonna talk about that too. So, make sure that you are doing upstanding business to make sure you get those good referrals and if you don’t go in then people start talking bad about you.


Larry: That’s absolutely true. I got a couple of questions here I wanna answer before we move on to the advantages. Jimmy Scott, “Is everything you’re saying about small towns applicable to Filthy Riches and Seller Financing?” It’s especially applicable. Because think about it, Filthy Riches is a model we teach and we do where you buy cheap houses, sell them for 3 to 6 times what you made with owner financing or lease option. So, with small town USA, you have people that were born and raised there, they have family, they have task to the community, they don’t want to leave and those are best, best, best borrowers for seller finance. They’re not gonna go anywhere. It’s not like they just move to Indianapolis or just move to Charlotte, North Carolina from across the country, they were born and raised in dogtrot USA. Wherever it is I don’t mean that in a bad way because I grew up in Hickory, North Carolina. I mean Hickory, come on.


Kandas: Two stoplights, more than one but you know, it’s about the same.


Larry: It wasn’t even a stoplight, it was a wide spot in the road. Let’s hope it was. But yes, especially applicable to that.


Kandas: And it doesn’t matter like… I see small town properties as a tool. It’s another way to find properties just like our HUD Mastery stuff, it’s a tool. Filthy Riches is the model behind. It’s the end game with what you are gonna do with the properties, right? So, this is just another property stream that can help fill your pipeline. It doesn’t matter what you do with it on the back. If you wholesale them on the back which is the Day Trading model, if you Filthy Rich them on the back which is the Lease Option or Seller Finance model. It doesn’t matter what you do. It’s a new property income stream like the new property flow. What am I looking for here?


Larry: If you Filthy Rich them on the back.


Kandas: The term that I’m looking for, not property income like property flow just to keep your pipeline full.


Larry: Deal flow is the word you are looking for.


Kandas: Deal flow. That’s why he gets paid big bucks.


Larry: “Hickory does sound like Mayberry, right? That’s literally where I grew up.


Kandas: That is how he grew up.


Larry: Hickory, North Carolina. I am a red neck from way back.


Kandas: Got some pictures to prove it.


Larry: Exactly. So, let’s talk about some more small town advantages. There is lower prices. Lower prices equal bigger discounts. For example, let’s think about this, if you are a big MSA, you’ve got somebody asking $300,000 for a house, right? There’s no way in the world you are gonna pick that house for $100,000 right? There’s no way, is it? But it’s not unusual with all to have somebody asking $30,000 in small town and we pick it up for $10,000, cash. Cash just like that. Not so long ago, I renegotiated a deal. Not negotiated. I already negotiated. But I renegotiated the deal from $75,000 down to $50,000. An additional $25,000 discount which is the third at 33% discount.


Kandas: And sometimes that’s necessary and we tell our sellers could you guys know with the way that we are doing deals, everything we buy is over the phone so we tell the seller, you know, we are getting this under contract, we want to work with you, we want to make sure that everything is good to go, so after we are done with our contract, we are gonna send somebody out. After we come back with those pictures, maybe they haven’t been there in a long time, right? Maybe it’s an absentee seller, so sometimes we are gonna have to renegotiate because they don’t know what the property looks like. We’ve got pictures that we could send them so what they thought was going on is not really what’s going on. So, we renegotiate deals, it’s justified. You don’t wanna do it just for the hell of it. I mean that’s not, honestly, that’s not ethical. You wanna get the best deal you can upfront and if it warrant the renegotiation on the back, then do that.


Larry: Exactly. There are few more things I wanna talk about as she is gonna go sign a contract to take pictures of the house today and it’s very rare she goes out of the office but she is going today.


Kandas: I went yesterday.


Larry: Well, okay. It’s very rare you go more than once in a week.


Kandas: If I have minion for it, no, I don’t go. But I don’t have a minion for this one.


Larry: None right now.


Kandas: So, I got to go.


Larry: So, there’s a few things I want to mention. It’s very important. We’re gonna dive more deep into this on Thursday so please, please…


Kandas: We’re gonna dive more deep into it.


Larry: More deeper, right?


Kandas: Go, I’m sorry, I’ll stop, I’ll stop interrupting you.


Larry: Okay, so, it reminds me of Brian Regan. That’s my favorite comedian. How do you make a word a plural? You put an S. What about ox? Oxen. Okay, anyway, here’s a couple of things I need to share with you and please don’t take this the wrong way but small town sellers, people who were born and raised and grew up in a small town, they’re not as tech savvy or sophisticated. I don’t mean they’re dumb. I don’t mean you can take advantage of them. Don’t think that at all. That’s not what I’m talking about. What I’m saying is when I’m on the phone with the seller, some of our sellers don’t even have email. They don’t text, they don’t have email, so I’m on the phone with the seller and I’m looking up at my monitors, I’ve got two monitors up here and when I’m talking to them, I say well let’s just take a look and see what some other similar houses are selling for and I will give them addresses. I’ll say, here’s one right around the corner, 125 Oak Street, it’s sold for $32,000 on August 17, here’s the address, right this down if you want to, and I’ll give them the address and I’ll tell them, I said look, I’m not telling you anything you can’t do on your own, right? The truth of the matter is a lot of them are tech savvy, they don’t have email, they don’t have internet. They may have internet but they don’t get on it, right?


Kandas: Or they are not looking on houses on it.


Larry: Right. So, I’d give them the addresses and I’d give them the sold price. Maybe the lower in the comps, maybe there are some that are sold for 20, 30 and some sold for 60, 70, 80, right? But I’m giving them the low end property, they are real sold property, this is another seller. Anyway, we got to hurry up.


Kandas: That was from Hickory too.


Larry: It is. Anyway, they are not as tech savvy but by giving them the information and giving them the address and the date that it is sold, it disarms them. The other thing I wanna mention with small towns is by frankly you are just dealing with master people. I don’t mean this in a bad way.


Kandas: Nothing against city people.


Larry: I mean they are just laid back, they’re easy going, they’re good old people. You know, you got good old boys and they are just laid back, they’re easy going and I just love dealing with them and here’s probably the biggest, biggest thing is more about the relationship than the bottomline. You just talk to them and they’ll like you, trust you, builds some rapport and you buy the house. And quite frankly, you can buy them right over the phone with the right script. That’s what we do. We buy it right over the phone. We don’t go look at it until after they have signed on the dotted line or if at least agreed to like she’s going today, Kandas is going to get one signed and take pictures today, right?


Kandas: Right.


Larry: And measure the house.


Kandas: And measure.


Larry: We always measure the house guys. I hope you got a lot of this today. Please share, share, share. Remember the first 20 people that shared this video will get a $297 Real Estate Day Trading and Jump Start, Home Study course. So, thanks a lot. Can you think of anything else?


Kandas: No, other than just go and make sure you register for the 3-day event that’s coming up ‘cause we will probably have to close registration in the next week with the way registration is coming in. So, make sure you guys go, get register for that so you can spend more than just 30 minutes or so, 20 minutes with us and it will be a whole 3 days. But you have to listen to this. It’s good.


Larry: So, Sarah wants to know, who were the first 20? It’s not 20 yet. 20 people have not shared it yet. We’ve got 4 people that have shared so far.


Kandas: There’s still time.


Larry: So, there’s 16 opportunities left to get the Real Estate Day Trading Jump Start and Home Study course and we will mail it to you. Jimmy, thanks a lot. Brenda, thanks a lot for watching. Sarah, thanks a lot. Tina, all you guys… oh, we got a ton of people on here, that’s awesome. Thank you very much for watching. I really appreciate it. Buh-bye.