Master the Art of Wholesaling with Ken!
Yo, if you're looking to dive into real estate and wanna save some time, this chat is for you! We're hangin' with Ken Sykes, a total pro who's been hustlin' in the game for over 20 years. He’s all about making wholesaling painless, helping newbies understand the ropes without all the stress. Ken spills the tea on how to market yourself, analyze deals, and keep those emotions in check when it comes to numbers. Plus, he’s got some solid advice on partnering up and what to look for in a joint venture. So grab a drink, kick back, and let’s get into the nitty-gritty of real estate investing!
Master Wholesaling Deals with These Pro Tips! 💼
Visit https://www.paynelessflipping.com to learn how to do real estate deals the payneless way!
Diving deep into the world of painless wholesaling, this episode features the one and only Ken Sykes. Ken’s got some serious street cred in the real estate game, bringing 20 years of experience to the table, and he's not just flexing his resume. He’s all about helping new wholesalers navigate the tricky waters of the industry, especially when they’re coming in from other training programs. The convo kicks off with Ken explaining how he’s transitioned from a real estate agent to a wholesaler and investor, and how he’s made it his mission to provide that one-on-one coaching that many newbies crave. You know, the kind of guidance that’s less about just throwing info at you and more about holding your hand through the entire process — from A to Z, baby!
Ken dives into the nitty-gritty of wholesaling, emphasizing the importance of understanding marketing and the emotional rollercoaster that comes with it. He tells it like it is: a lot of folks come in thinking it’s all rainbows and butterflies, but it’s really about rolling up your sleeves and getting to work. We get some juicy tidbits on how to analyze deals and the right way to comp properties. Ken's got a team of compers that help him nail those numbers, ensuring that he’s not leaving money on the table but also not overestimating repairs. It's a blend of art and science, and trust me, you don’t want to miss how he breaks it down.
The episode wraps up with a solid discussion on joint ventures and how to negotiate splits — yeah, it’s not as straightforward as it seems! Ken shares some of his experiences with JV deals and the importance of communication in keeping the process smooth. Spoiler alert: it’s all about trust and effort, folks. If you’re looking to dive into wholesaling or just curious about how to make your investments work for you, Ken’s insights are pure gold. So, grab your notepad and get ready for some real talk!
Takeaways:
- If you're looking to invest in real estate like a boss, check out investorthrive.com for some super handy training to help you close more deals, even with fewer leads.
- New to wholesaling? Ken Sykes offers one-on-one coaching to guide you from step A to Z, making the process less painful and way more manageable for newbies.
- Remember, it’s not just about knowing the book stuff; you gotta know how to apply it in real-life situations, or else you're just spinning your wheels, fam.
- In the world of wholesaling, emotions gotta take a back seat. It's all about the numbers, baby! If it doesn't make sense financially, don't force it.
- When analyzing deals, it's crucial to do your own calculations instead of relying on what the seller says; trust me, it'll save you a ton of headaches later on.
- Networking is key! Ken emphasizes the importance of relationships in real estate, so make those connections and keep the convo going.
Companies mentioned in this episode:
- investorthrive.com
- Astral Flipping
- Pace Moby
- Jamel
- Batch Leads
- Prop Stream
- Privy
- Zillow
Transcript
If you want to save time and learn how to invest in real estate faster, go to investorthrive.com to master the sales process from our training so you can close more deals with less leads.
Speaker A: -: Speaker A:All right, what's going on, Ken?
Speaker A:This is Investor Thrive Podcast, and we're glad to have you on here.
Speaker A:How you doing, Ken?
Speaker B:I'm doing great.
Speaker B:Yourself?
Speaker A:Good, good, good, good.
Speaker A:I appreciate you taking your time to be on the Investor Thrive Nation podcast.
Speaker A:We call this the Painless Wholesaling podcast because what we try to do is make wholesaling painless.
Speaker A:That's the goal here.
Speaker B:That's right.
Speaker B:That's.
Speaker B:That's right.
Speaker A:Right.
Speaker B:And you've been doing a good job.
Speaker B:I've been following you.
Speaker A:Hey, man, I thank you.
Speaker A:I appreciate that.
Speaker A:So, yeah, let's just kind of dive right in, man.
Speaker A:I meant we.
Speaker A:We've kind of got networked.
Speaker A:That's kind of how I meet a lot of people, just through networking and stuff.
Speaker A:So let's kind of find out.
Speaker A:For people that don't know who you are, tell us who the real Ken Sykes is.
Speaker B:Real cancer.
Speaker B:You know, they titled me Can't Keep It a Real Sykes.
Speaker B:But, you know, I thrive on that name because.
Speaker B:Let me introduce myself first.
Speaker B:I'm Ken Sykes.
Speaker B:I am a prior real estate agent for 15 years some time ago, but now I am a wholesale slash investor slash dispo is, which is what I major in now.
Speaker B:And I try working with new wholesalers.
Speaker B:That's basically what I do in a nutshell.
Speaker B:Been in the business total now for 20 years.
Speaker B:And I just try to do what I can do and help how I can help.
Speaker A:I love it, man.
Speaker A:I love it.
Speaker A:So you what, when you say work with new wholesalers, what are you mainly helping them do?
Speaker B:Well, basically a lot of them come from, you know, other.
Speaker B:Other outfits, you know, I mean, like Astral Flipping or Pace Moby.
Speaker B:But what I do, because I.
Speaker B:I actually was with Pace Moby myself.
Speaker B:I was actually with Jamel.
Speaker A:Oh, wow.
Speaker A:Okay.
Speaker B:Yeah, so, yeah, that's where I got.
Speaker B:So my learning from.
Speaker B:But I've been to a lot of other seminars as well.
Speaker B:But what I do, I kind of like, hold their hands.
Speaker B:I mean, because people like those entities, Jamel and Facebook are great, but they can't hold your hand every step of.
Speaker A:The way, they're too busy, brother.
Speaker A:They're too busy.
Speaker B:You know me too busy.
Speaker B:And, and so what I do, I do one on one coaching.
Speaker B:I try to walk them through the process from A to Z like that.
Speaker B:But I do and trust me, man, I had to have a bottle of cedulants and a bottle Advil because they don't understand.
Speaker B:It's like when you go to school, like when I was in real estate, I went, got my real estate license.
Speaker B:But you know, no disrespect to real estate agents because that's what, that's my love.
Speaker B:But when I left the real estate school and got into the real world, I think I only use 5%.
Speaker B:And that same thing is happening in the investment industry.
Speaker B:Yeah, I mean they get the seminars and they teach me straight the right way.
Speaker B:But then when they get out here, it's a culture shock.
Speaker B:So.
Speaker B:And that's what I do.
Speaker B:And I hold them, I hold the hand and sort of speaking and just walk them through the process.
Speaker B:I mean it's a process, but I try to make it like your show.
Speaker B:I try to make it as painless as possible.
Speaker A:That's right, man.
Speaker A:Because that's what it has to be for them.
Speaker A:You know, that has to be easy to the point.
Speaker A:So let me ask you this.
Speaker A:I mean there might be a lot of people that watch this and I want to reach out to you.
Speaker A:So what would you, you say, like you said, A to Z.
Speaker A:So what is a, A brief overview of the A to Z process for you?
Speaker A:What?
Speaker A:So someone that's brand new, that's watching this can be like, oh, okay, that's all it takes, right?
Speaker B:Well, A to Z is first.
Speaker B:Understanding is 90 is 5% business.
Speaker B:It's about 90 of marketing.
Speaker B:And it's not that it's expensive, you know, So I have to teach them how they must start marketing themselves.
Speaker A:Okay.
Speaker B:Some people do it part time, understand this.
Speaker B:But some people, you know, this is who they are.
Speaker B:But I try to teach them, you know, the marketing aspect of it first.
Speaker B:Okay.
Speaker B:You know, understand that like it's not going to fall in their lap.
Speaker B:And sometimes they pay the cost to go to these seminars and they come home and they think it's going to fall in their lap.
Speaker B:But people like Jamel, because I talked to Jim personally before, people like us, we tell you you have to do the work too.
Speaker B:You have to do the work.
Speaker B:We can give you education, but you have to do the work.
Speaker B:That's A.
Speaker B:And then understanding the industry as a whole, understanding you know, that you are entering to a, A lifestyle, whereas you have to understand how to negotiate.
Speaker B:People have issues and so people have circumstances that you have to get past to get your point across.
Speaker B:The main thing is understanding the process.
Speaker A:Okay, process.
Speaker B:And then understanding how to address the process.
Speaker B:Here's the problem.
Speaker B:A lot of understand the process, but they don't know how to address the process.
Speaker B:You know, I mean, and they understand the book lingo, but they don't understand how to address the book lingo.
Speaker A:Right?
Speaker B:So that's what I do.
Speaker B:And then understanding that you have to take your emotions out of it.
Speaker B:You have to take your emotions out of it because it's all about numbers.
Speaker B:And a lot of time they come in and they think that it's a good deal or they think it looks like a good deal, or they try to plan their construction, their contractors and you know, all kinds of stuff.
Speaker B:Take your emotions out of it.
Speaker B:If don't work, it ain't gonna go.
Speaker A:You know, I mean, especially right now.
Speaker B:Oh man.
Speaker B:Golly.
Speaker B:Especially right now.
Speaker B:It's like in the last two or three weeks it's been like crazy, the.
Speaker A:Shift and what market are you in, bro?
Speaker B:I'm in Dallas market.
Speaker B:I'm in Philadelphia market, Florida, North Carolina, South Carolina, Georgia and St.
Speaker B:Louis.
Speaker A:So you pretty much help all the people out there.
Speaker A:So I mean, that makes complete sense.
Speaker A:So tell us, I meant before we hopped on here, you were talking about the importance of analyzing deals, right?
Speaker A:Like running.
Speaker A:Yes, let's talk about that.
Speaker B:That's number four, number five.
Speaker B:Okay.
Speaker B:And analyzing deals, doing the proper comp.
Speaker B:I mean, it's more to it, you know, than 70 ARV.
Speaker B:It's more to, it's.
Speaker B:It's different.
Speaker B:It's different circumstances that's going to make this comp different than the next.
Speaker B:And they have to understand it's just not the basics.
Speaker B:A lot of them come to me and they say, well, it's 70 and.
Speaker B:And minus repairs.
Speaker B:First of all, who, who did the repair?
Speaker B:Who, who did the minus and repair, whether you, you know, I'm okay, whatever.
Speaker A:So you say, oh, 5K.
Speaker A:Yeah, that's not going to cover it.
Speaker B:So they gotta understand how to do the square footage, how to do the numbers, how to do the calculations.
Speaker B:Because a lot of times it's unsight unseen.
Speaker B:And so you always cannot go by what the seller or whoever presented it to you stated.
Speaker B:It's going to need 20,000k 20k repairs.
Speaker B:It's best just to do your calculation.
Speaker A:It's true.
Speaker B:I Better.
Speaker B:You'll be better off.
Speaker B:And I know a lot of don't like to hear this, but you better off leaving meat on the table than underbidding the project.
Speaker A:I hear you, man.
Speaker B:Do their own calculation per square footages.
Speaker A:So what would you recommend for comps?
Speaker A:That seems to be a hard thing for a lot of people.
Speaker A:Where do they get the right information?
Speaker A:Information, where do they get the comps?
Speaker B:You know, you have batch.
Speaker B:Yeah, you have batch.
Speaker B:You know best leads.
Speaker B:You have a PV now and you have prompt string.
Speaker B:Those are the main ones that I use.
Speaker B:I go to Zillow sometimes, but Zillows kind of might.
Speaker B:Might make you lose a deal.
Speaker B:But I'm just saying, but like, so what I do what I do, what my team do, which makes us stand out different.
Speaker A:Okay.
Speaker B:I comp.
Speaker B:I have four compers.
Speaker A:Oh, wow.
Speaker B:And when I do, I send them through all four.
Speaker B:And you know, here's the tr.
Speaker B:Here's the good thing about it.
Speaker B:I make sure none of my conference communicate on their copy skills with one another because I want that diversity in it in a company.
Speaker B:So when the people come to me, I send them through all four compers and then I look at them and I decide on this is where we need to go.
Speaker B:So that's what we.
Speaker B:And we majored in that.
Speaker B:So we just took the time out to build a team to do that.
Speaker B:Now that's not to say that your comp or this other person cop is not accurate.
Speaker B:We do something that I came up with because I majored in that because I am with a dispo.
Speaker B:So this way I know if I say it's a deal, it's a.
Speaker B:It's a solid deal.
Speaker B:Yeah, just a deal versus a maybe because you got to buy all sizes or buy and hold or whether it need to get to hedge fund.
Speaker B:So we do that.
Speaker B:You know, we just set aside to do it that way.
Speaker A:Yeah, no, I totally get that.
Speaker A:So you, you got them, you got Bash leads, you got Prop Stream, you got Privy, you got, you know, Zillow occasionally, depending on the estimate, you don't usually go off of that.
Speaker B:Right.
Speaker A:So.
Speaker B:And we do reference too.
Speaker A:Yeah, Red.
Speaker B:Yeah, yeah, we try.
Speaker B:Now, on top of that, I have three licensed agents with me, so it depends on where they at.
Speaker B:One of them got is they.
Speaker B:They do.
Speaker B:They can do it in 42 states.
Speaker B:So we, we look at, we look at MLS company.
Speaker B:That's.
Speaker A:That's huge.
Speaker B:Yeah.
Speaker B:So we know that it's a deal from every aspect.
Speaker B:So that's what we do.
Speaker B:And it takes time, you know, to do that, which is why I know we hadn't talked about this, which is why when a person come in JV with me now, this is different, Nate, because I think, you know, I'm.
Speaker B:I speak for all of us.
Speaker B:That it's a lot of work doing that.
Speaker B:It's a lot of work doing these conferences.
Speaker B:It's a lot of work, man.
Speaker B:And the way they.
Speaker B:JV, man, it's like, you know, 50, 50 if I find a buyer on your deal.
Speaker B:And if you find a buyer on your own deal, then I get zero.
Speaker B:Nah, I don't roll like that because I put too much time in it.
Speaker B:So it's 50, 50.
Speaker B:If I find a deal, it's your deal.
Speaker B:But if you find your own deal, we talking about, like, at least 75, 25.
Speaker A:Wow.
Speaker B:Because of the work we put in.
Speaker B:I mean, I have four conference.
Speaker B:I mean, and when I just bow.
Speaker B:You know, my.
Speaker B:Me and my partner, Scott, when we dispo, we work hard at it.
Speaker B:You work hard at yours too.
Speaker B:And you work too hard for someone just to ride by and say, okay, I'm going to.
Speaker B:You know, you.
Speaker B:You get somebody just right by saying they like.
Speaker B:They like the property, and you sell it to them.
Speaker B:And you didn't get all that work.
Speaker B:Yeah, but that's what used to be back in the day, you know, I'm talking about age, man.
Speaker B:But back in the long days when it first started jv, that way, it used to be, if I said, I'm JB with you, I trust you, I believe in you, I know your history.
Speaker B:So you and I gonna JV and whoever find the deal, we're gonna still.
Speaker B:We're gonna still split this deal as a JV partner.
Speaker A:Okay.
Speaker B:Used to be, but now it didn't get crazy.
Speaker A:So let me.
Speaker A:Let me kind of get a little bit better understanding.
Speaker A:So if someone brings you a deal and says, hey, I got a good deal, you check it with your four compers and it's a great deal.
Speaker A:What is the split again?
Speaker B:It's negotiable.
Speaker B:I just threw that.
Speaker B:It's either 75, 25, or 80.
Speaker B:20.
Speaker B:If that's.
Speaker B:If you find the deal yourself.
Speaker B:After we had.
Speaker B:Did a JV agreement, of course.
Speaker A:So.
Speaker A:So that would be 80 to you.
Speaker B:No, 80 to them and 20.
Speaker A:Okay.
Speaker A:For finding the buyer.
Speaker A:Right?
Speaker B:For finding.
Speaker B:Let's see.
Speaker B:What.
Speaker B:What.
Speaker B:Want to make sure I get this straight?
Speaker B:It's your deal.
Speaker B:Okay, brought it to me.
Speaker B:But you happen to find a buyer for Your own deal.
Speaker A:Okay.
Speaker A:Oh, if I brought a known buyer.
Speaker A:So I.
Speaker A:I have a JV deal, I bring it to you, say, help me find a buyer, and then I end up finding my own.
Speaker A:You.
Speaker B:Right.
Speaker A:So you're saying, give me 20 for the time that I spent with you.
Speaker B:Right, Right.
Speaker B:And I.
Speaker B:I think that we.
Speaker B:And I know a lot of ones that don't like this process say, oh, man.
Speaker B:I think that's a process that should be put in place because we put a lot of work in it.
Speaker B:We put a lot of effort in it.
Speaker B:And I think some people, when they get to hear people on, you know, some of the groups that they say, well, we're going to j the difference between us and them.
Speaker B:We put a hundred percent effort into it.
Speaker A:Right?
Speaker B:Yeah.
Speaker B:So I think you ought to just, you know, with that being said, pick and choose your person you want to JV with, check their background out, do something.
Speaker B:And let me give you an example.
Speaker B:My guy Scott and I, we just was working this deal like yesterday, okay?
Speaker B:And we got a buyers and everything is in Philly.
Speaker B:We got buyers ready to go in and sent their people out to inspect.
Speaker B:This buyer is in Florida.
Speaker A:Okay?
Speaker B:So he.
Speaker B:He hired.
Speaker B:He got a team that he sent in Philly to go check out the property, you know, and everything.
Speaker B:So that's a cost to him.
Speaker B:So lo and behold, he gets all that done.
Speaker B:And yesterday we get a call and says that the.
Speaker B:The other JV person contracted the property already.
Speaker A:Frustrating.
Speaker B:Yeah, that's very frustrating.
Speaker B:Now, if this.
Speaker B:But this.
Speaker B:Here's the thing.
Speaker B:The good thing about it is I was.
Speaker B:It was not a lot.
Speaker B:It's not a lot, but it was.
Speaker B:So I was able to compensate him for.
Speaker B:For him having the people come in because of the.
Speaker B:This.
Speaker B:This Particular one was 75.
Speaker B:25.
Speaker A:Right, right, right, right.
Speaker B:And so it works.
Speaker B:And.
Speaker B:But that's a prime example of what would happen if it was just a 50.
Speaker B:50 split on the original JV and he gets nothing.
Speaker B:If you found your own deal and he had these people come down here, pay whatever you may have paid them or whatever he had conversation for, you do that.
Speaker B:So it's important.
Speaker A:I like that.
Speaker A:I like that.
Speaker A:So you're basically saying that you will JV with 50, but if they end up finding their own buyer, you still want to cut just because of all the time and energy you put into that deal.
Speaker A:Right.
Speaker A:You have them sign something that says that.
Speaker B:Yes.
Speaker A:What is it?
Speaker A:Is it.
Speaker A:Is it your JV agreement that says.
Speaker B:It says on there, you know, I mean, if.
Speaker B:If buyer.
Speaker A:I mean, if seller.
Speaker A:Yeah.
Speaker B:Subject.
Speaker B:Subject.
Speaker B:Jv.
Speaker B:Individual find his own deal on this.
Speaker B:JV on this.
Speaker B:On this account, then we'll get you.
Speaker B:It's negotiable.
Speaker B:We'll get 70, 20, and they get 80.
Speaker B:Or if I find the buyer on the deal, then we'll do a 50, 50 split.
Speaker B:It states it on there.
Speaker B:And some of them don't like it.
Speaker B:And some of them don't.
Speaker A:Some of them don't like it.
Speaker B:Right.
Speaker B:And that's fine.
Speaker B:That's fine.
Speaker B:I mean, I.
Speaker B:I mean, I got so many people that come to me now.
Speaker B:It kind of is a relief for me, but, like.
Speaker A:So how do they come to you, by the way?
Speaker A:How can more people come to you?
Speaker B:I get about.
Speaker B:I don't exaggerate.
Speaker B:So I say I get about 20 deals a week that comes to me.
Speaker A:How many of them are good, though?
Speaker B:About seven.
Speaker A:That's pretty good.
Speaker B:Yeah.
Speaker B:You know, I mean, so now here's.
Speaker B:Here's what I experienced.
Speaker B:I also experienced doing all the work when I didn't have that, and they.
Speaker B:And then they walk off and go someplace else.
Speaker B:So, yeah, I get deals coming to me.
Speaker B:Like right now, when I had to turn off for a minute ago, that was because somebody was sending me a spreadsheet, you know, I mean, because they trust me and they know that I'm going to do what I said I'm going to do and I follow up in my communications.
Speaker B:Yeah, I mean, I communicate with them daily.
Speaker B:I take the time out.
Speaker B:This is different, because I know what I had to do.
Speaker B:I know how I came up, and I know what the issue that I was having and communication was.
Speaker B:The biggest issues I was having with individuals that were disboying or jv, and it was lack of communication.
Speaker B:So I kind of keep them in tune so they don't.
Speaker B:They don't be freaking out.
Speaker B:You know what I'm saying?
Speaker B:So is that necessary?
Speaker B:No, it's not really necessary.
Speaker B:It's just something that I do.
Speaker B:So I don't want individual feel like what I'm saying is necessary because it's not.
Speaker B:And a lot of people don't have the time to do that.
Speaker B:I just take the time out.
Speaker A:I like it, man.
Speaker A:I like it.
Speaker A:Well, you heard it here first, people.
Speaker A:If you want a JV with my man Ken Sykes, you can hit him up.
Speaker A:How can they reach you, brother?
Speaker B:They can go ahead on.
Speaker B:They can catch me on Facebook at Ken Sykes Senior.
Speaker B: -: Speaker B:And Patrick is in the process of completing my website.
Speaker A:I love it, man.
Speaker A:Sounds like you got a lot of good things going on, man.
Speaker A:If you're getting 20 submissions a week, seven deals out of those, that's pretty dang good, man.
Speaker B:That's pretty.
Speaker B:It's pretty good, man.
Speaker B:It's pretty good.
Speaker B:And the thing about it is, the team have to be tight because they got to keep the.
Speaker B:They gotta keep the chain rolling.
Speaker B:They got to keep it rolling.
Speaker B:So when one slack off, the train stops.
Speaker B:So we can't have them slack at all.
Speaker A:You can't, bro.
Speaker A:I love it.
Speaker A:Well, hey, Ken, I mean, I appreciate your time.
Speaker A:Is there anything else you want to leave?
Speaker A:A little gold nugget?
Speaker A:Anything you want to leave for the world right now?
Speaker A:The worldwide fans of Ken Sykes, before we shut this thing down.
Speaker B:Yeah.
Speaker B:Only thing I can say is just give me a call and.
Speaker B:And I.
Speaker B:And I'll hook you up.
Speaker B:No, but, like.
Speaker B:No, Just make sure you understand how to comp your deals and understand the criterias for the end buyers.
Speaker A:Okay.
Speaker B:And once you understand those, it'll make it a lot less simple.
Speaker B:It'd be making what we say and make it painless.
Speaker A:That's right, brother.
Speaker A:Painless wholesaling.
Speaker A:That's what we do.
Speaker A:Right?
Speaker B:Right.
Speaker B:That's right.
Speaker A:Well, hey, Ken, I.
Speaker A:I'd love to, you know, network with you a little bit more.
Speaker A:I jv a lot with people, too, so maybe you might be able to collaborate.
Speaker A:Maybe you can help me move some ideals.
Speaker A:I don't know.
Speaker A:We'll see.
Speaker B:We definitely gonna work together.
Speaker B:For sure.
Speaker B:Sounds good, man.
Speaker B:Well, hey, Ken.
Speaker B:All right.
Speaker B:You be good.
Speaker A:You be good, brother.
Speaker A:Appreciate your time, man.
Speaker B:Thank you.
Speaker A:Yep.
Speaker A:Bye.
