Real Estate Investing as a Licensed Agent w/ Mitch Ferraro | Fresh Picked Fridays #3

Real Estate Investing as a Licensed Agent w/ Mitch Ferraro | Fresh Picked Fridays #3

what’s up everybody this is Andrew Engel
with Fresh Picked Leads we’re the lead generation company for Wisconsin real
estate investors and business owners and today is our third episode of
Fresh Picked Fridays where we’re talking with local entrepreneurs about marketing
lead generation closing deals and and many other things
so if you haven’t checked out our first two videos we’ll link to those and if
you like the content we’re providing give us a thumbs up or comment to tell
us how we can improve and hit subscribe so you can kind of keep track of what
new offerings were coming out with but today we have Mitch Ferraro and he is a
real estate investor and agent which is exactly why I wanted him on the show to
kind of pick his brain a bit about how how that can differ from somebody who’s
not a licensed agent so Mitch thanks for joining us and can you just kind of
introduce yourself yeah well Andrew thanks a lot man I’m super excited to be
here I love this stuff this is a great way to get people to understand you know
different parts of investment business and how it works specially for me being
a real estate agent but yeah so probably about back in about
2011 my wife and I got into real estate but actually building a new construction
home we fell in love with that process we always knew we wanted to get into
real estate and that was kind of our you know dipping the tongue oh and it a lot
there type of thing and what happened was from there we started saying you
know what let’s start building our rental portfolio we knew we wanted to
have rentals we knew that was how we could possibly get generational wealth
and when we started with that we actually had no idea what we were doing
so yeah we started that out and we decided you know when we purchased this
first rental we couldn’t get a tenant inside it was in a really good area
where we’re based in Kenosha was in a really good area of Kenosha and we were
just having a really tough time with this first rental so then we said you
know what we have to get educated we have to learn how to do this stuff the
right way so we actually went into an educational program that taught us all
about real estate sting from wholesaling and flipping and
building a rental portfolio and from there we basically got started in the
flipping right away and we started doing that I started seeing the benefits right
away of becoming an agent because what I was doing is when I was trying to pull
calm so I was trying to find properties I was having to use another agent to to
generate that information for me and that was taking a lot of time so right
from the get-go I took my real estate license you know got license in about
five months and from there it just made things a lot more easier within my real
estate investment business so I currently have a real estate investment
business called the fair group we wholesale we flip we have rental abide
holds we invest in Kenosha Racine Milwaukee and Waukesha I also have a
real estate investment coaching business called the real deal where we basically
teach people how to invest in real estate what we believe is the right way
so everything that we teach is the exact systems and processes that we’re doing
inside of our own business we’re local here in Wisconsin but we do have
students that are across the nation which is pretty cool a lot of the same
concepts and everything that we’re doing apply across the nation but so that’s
our our coaching side and then again I’m also a licensed agent I don’t do much on
the agent side I do often or not often but but sometimes I’ll take on listings
and I don’t work with buyers I was at one point listing our own homes that we
were flipping but now we actually have a director of acquisitions for your team
that takes care of of listing our homes from up for us she’s also a licensed
agent but yeah that’s that’s a little bit about me in a nutshell and again I’m
just excited to be here and hopefully bring some good value to your audience
no doubt well thank you for that introduction
awesome awesome story okay so today I want to talk a bit about you know what
it’s like for a real estate investor to have their real estate agents license
and how that kind of affects marketing so I want this to be a educational piece
for people who are current investors or getting started investing and asking
that question should I get my license but I also want it to be an educational
piece for existing agents who are looking to start getting start investing
in real estate sure so what would you say just to kind of lay the groundwork
here for people who do not have their license well you would you say are the
three top pros and three cons of having your license sure so I think you know
again from what I when I kind of introduced myself one of the biggest
things that as a pro to this is that you’re gonna have the access to the MLS
which is huge I mean there’s there’s deals that go on the MLS it’s the
biggest site you know in Wisconsin you know that where all properties go
online so you’re gonna have access to that with the access to that you’re
gonna be able to pull your own comparable properties or comps and being
able to do that and not have to wait on someone else is is super important
because if you’re waiting on someone most likely someone has come in and
scooped up that deal before you’re able to even pull comps so that’s that’s
another huge Pro and then the other thing too is not only you know being
able to do the comps but if you are flipping the properties you can actually
list the properties yourself so if you have a business a real estate investment
business and you go ahead and fix up a property you can actually be the agent
that lists that property for your business and that can save you a ton of
money on the back end because you’re not hiring out a listing agent to go ahead
and actually go and list the property for you this is a very interesting
debate between the pros and cons because you know being a licensed agent I
haven’t seen a lot of cons in the investing side but I have heard other
investors that are not agents that are totally against getting their license
and and I and I – and I understand where they’re coming from there are more you
know there is a set of rules and regulations that you have to go by you
know through the – Realtors Association through the
Wisconsin Realtors Association so there are some some guidelines that you have
to go by that maybe if you weren’t an agent that maybe you weren’t held to
those standards so that could be a con and one other con that I can think of is
that if you are doing investments by yourself and it’s just a one-man show
that you’re in your investment business if you’re marketing out to people you’re
gonna have to to to to disclose that you’re an agent along with being an
investor and depending on who you’re working with some people may not want to
deal with agents and that may be a big no-no to them so if you’re dealing with
the seller that just has a mindset they don’t want to deal with an agent that
could be that could be a con but like for us in our business all the marketing
that we go that goes out for us it never goes out in my name it goes out in one
of my business partners names so that we don’t have to go ahead and put the
marketing out there that I’m a licensed agent cuz we just want to hit sellers
saying hey we buy houses for cash and we can close quickly and we don’t even go
ahead and put anything about being an agent but if I do decide to talk with
the seller one on one I do always disclose that and I’m an agent that’s a
standard that I have to I have to go by okay okay great yeah and you’re right I
think people who start in real estate investing that’s kind of like the first
big hot-button topic is should I get my license and it really I mean from my
perspective it really key just comes down to personal preference so I think
and correct me from if you think there’s a better way but I think the best way to
determine if it’s right for you is talk to somebody who is a licensed agent
investor and someone who is a not licensed agent Wester multiples if you
can and talk to them about why they chose their path and they will be just
as passionate as the other about why they made their decision and then you
will have the information to go okay this is this may be right for me or this
is not right for me you are spot on I think you know one of my business
partners in the real deal we actually know I think it was about a month ago we
had a debate on this where he’s not a licensed agent and I am a licensed agent
and we gave all the information that from our personal experiences of how
that’s worked and you know on one side it was me with with going ahead and
saying you know this is why I think it’s a good idea and he said this is why I
think it’s a bad idea to get your license and and again all we wanted to
do was give people the information to make their own decision that’s that’s
key I agree go to go to both sides get the information from multiple sources
and then take that information to make the best decision possible absolutely so
so for the people who are currently real estate agents and looking to start an
investing business what would you say for them should be their very first
actionable step towards that you know if they if they are agents and they want to
get into the investing side I’m gonna assume that they already have the
experience of being able to pull comps and they’re having some experience of
finding deals the number one thing that they need to do is make offers that’s
the number one thing that if you don’t make offers in this business you’re not
going to get deals and I think one of the mindsets that really affect people
is like well I can’t make an offer that low or I can’t make an offer you know
that’ll offend the seller in this business you have to you have to really
know that this is a business and we’re trying to make money in these
investments and the the service that you’re providing to the sellers is is
quick that’s the SIRT you’re providing a service that’s gonna be quick painless
and easy and if they’re in a distressed situation you can get them out of that
very very quickly so I think making offers and knowing that even if your
offer is low put it in writing and get it in front of the seller and present it
so again I think in probably the next step would be is setting up your
investment business so that when you are purchasing properties you’re purchasing
them in an investment business not personally because that’s gonna be a
huge thing down the line when you’re gonna want to be actually you know
saying like hey I’m an investor this is my business and this is how we buy
houses so two things would be making offers and then getting your you know
your LLC set up or things like that so when you’re passing out business cards
you look more official than just some random guy on the street saying I buy
houses it’s perfect okay so again for people
who are already licensed agents you know you know that you’re required to follow
very specific rules guidelines regulations as an agent so how would
that impact your marketing as an investor you know like in other words
how might your investment marketing differ from somebody who is a non
licensed investor sure this is a great question so always in my mind and what
and what the realtor associations you know bang into us is disclose disclose
disclose so disclose at always disclose that you’re an agent so again if I was
sending marketing out you know Direct Mail you know I’d be saying you know on
there like I’m an agent but I’m also a real estate investor that’s why I’m
contacting you today I actually want to purchase your house I’m not looking to
list your house so always just make sure you’re getting that information out
there in front of people and again if you have a business partner if you have
business partners within your investment business and then that’s kind of a
workaround and be able to say you know if you’re sending out a direct mail
piece and it’s coming from my business partner Adam then he can go ahead and
and not disclose that there’s an agent so because he’s not an agent and that
marketing is coming out from them so that’s kind of the biggest thing you
know if you’re an investor without a license you obviously don’t have to
disclose you have a license because you know but if you do have a license just
get that out there out in the open let people know that you’re a licensed agent
but move on from that right away because if you are looking to purchase the
property you gotta let people know like hey I’m not here trying to list your
property and put it on the open market I’m actually here to buy your property
okay great and that’s a perfect segue into kind of my next question so for
agents who are already marketing you know real estate agents have to market
you know for buyers and sellers do you think that when they go from
that type of marketing to real estate investor business marketing do you think
their existing marketing experience will lend itself well to their new business
or do you think it’s kind of like we need to relearn and rethink this
entirely you know I this is this is a great question because if if they’re
already marketing that’s awesome because the one thing about marketing that is
the toughest thing to do is be consistent so if they’re already
marketing and being consistent that’s gonna help them out so much in the
investing side because I see that’s where a lot of investors fail is they
send out one piece of marketing you know let’s just talk about direct mail they
send out one piece of direct mail and they’re like man I’m not getting any
leads like I’m not you know I’m not getting anything well it’s gonna take
multiple hits on that one person to actually get them to pick up the phone
and possibly call you so that’s really gonna help them if they’re already
marketing and they’re being consistent in the marketing yes that’s that’s
absolutely one thing that that they may have to try and again retrain their
brain is that they’re now actually purchasing the properties and they have
to they have to look at these properties a little differently and they’re
probably going to be looking at totally different properties than what they are
originally looking at so if it’s an agent that’s more geared towards listing
retail houses and retail houses meaning like houses that are in good shape you
know that they go on the market they could sell quickly if the price
correctly these are not the houses that they’re gonna be looking at anymore
they’re gonna be working with people that are in very tight situations maybe
they’re going through foreclosure maybe they’re getting a divorce maybe they
have a hoarder home so these are totally different types of properties and it’s a
different type of seller it’s a seller that’s your main goal is
to help them get out of the situation that they’re in and understand what do
they need and how can I help them so that’s that would kind of be the
retraining part I would think okay great so I guess jumping back to what you were
saying earlier about consistency do you have some advice on like what are some
indications that you need to you’re marketing or something isn’t
working you know how long do you wait until or is there anything that’s like a
red flag to say oh you know what we do need to change something it’s been long
enough you know how do you how do you handle that yeah so this is like whoever
can figure out this question is gonna be the marketing guru for it because you
know things work during one point in time and then they stop working or
things don’t work and then they start working so like right now I know that we
have to we have to at least go six months of the same list to actually see
and when I say six months I’m probably hitting that person six times like once
a month to see a pet marketing piece is working or not that’s when I can really
start saying maybe we need to change it up and at the same time it’s beneficial
for trying two different marketing pieces so if we are talking about direct
mail maybe I’m sending a postcard for six months and maybe I’m sending a
letter for six months and I’m saying which one works better if I can decide
then that one works better than the other that one goes away and then one
stays consistent so I would say for you to decide whether or not something’s
working you have got to give it time to see what type of leads you’re generating
and not only what type of lead you’re generating but what’s the conversion
rate how many of those leads are you actually converge converting into deals
because it’s one thing to get leads and your phone blowing up that’s great but
if you’re not converting them then maybe it’s not a good list so that’s that’s
that’s something in my personal experience that we’ve seen like you got
to give these things time and it’s difficult to do because that costs money
and you’re trying to figure this out and if you’re not making money off of your
marketing it can be it can be tough but you you you just can’t send out one
mailer and be like I got all these calls but I didn’t convert but I got no calls
that’s that that’s how it’s gonna be you have to be consistent okay okay good
good so are there certain marketing channels
that work better again this is going for people
who may already be marketing in as an agent so do you think there are certain
marketing channels such as you know Direct Mail phone calls tax social media
that work better for investing versus like a agent business yeah you know from
from our personal experience I think just you you have got to try and market
as much as you can and test and understand how your marketing is working
so from the investing side Direct Mail does work social media does work
networking does work bandit signs does work there’s all of these different ways
driving for dollars does work you know the scanning craigslist does work
there’s all these different ways that you can do it and you have to be
consistent in all those marketing tactics to really see what’s the best
route once you start figuring that out for your own business then I would say
you go non-stop in that direction until it stops working great so is there
anything that you feel like that is unique to you or something that you’re
doing that is making sellers choose you through your marketing over maybe some
other marketing pieces you know I think we really try and be as genuine and
build rapport and you know even even like if someone is if we’re marketing
like we put our website we put our Facebook link we put all these different
things on there that people can go check us out first before they may even call
us because I think that’s a big thing for people that they want to be able to
know that this is an actual person or this is an actual business because and I
think we do a good job of that of being very visible on social media be
consistent with our marketing going out to networking events and explain to
people what we do it’s it’s kind of like this most multifaceted approach that you
have to do if you want to generate as many converted deals
as you can because you know there are gonna be those one offs that people are
just like oh I got the mail today yep I’m in this situation I’m gonna call
them up and you convert the lead but to be really consistent you kind of need
all these different approaches to make it work and that’s just from our
personal experience I know there’s probably other investors out there that
just do direct mail that’s it and it works for them and that’s great but for
us we do like to be kind of using this we we really want to have a lot of
visibility and type in integrity within our business so that people can say you
know what these are good people I enjoyed working with them they really
helped me out in the tight situation yeah that makes sense I mean selling a
home is you know a big deal it’s not it’s not a small decision that people
take often take lightly so having that visibility and transparency I think is
yeah absolutely key yeah though wrapping up here I guess so what is like one
piece of information or like one nugget of advice you would give to anyone who
is just starting their marketing as an investor or maybe he’s just seen some
struggles yeah I would say you know what this this business this is like peaks
and valleys you know it’s feast or famine and you
have to stay consistent and the only way you’ll get out of those down times is if
you’re continuing continually being consistent and you’re working through
everything that you can in your and you’re setting up appointments and
you’re making the offers I I stress all the time and we stress so much in our
coaching business you have got to make offers you know if you’re not making
offers on properties you’re not going to get deals and when you you have to
capitalize on the money that you’re spending for your marketing and the only
way to do that is by making offers on the opportunities that you’re giving if
you’re thinking oh they would never accept that offer or oh I don’t know if
you know I should make that low of an offer just make the offer but then
explain to the seller or whoever you’re working with why you’re making that
offer explain you know the repairs that you have to make explain what things
so for once you fix it up explain just do your best to explain to the seller
why you’re making a certain offer and if they say no which nine times out of ten
they’re going to they say no but that one person that says yes you’re gonna
have a good deal on your hands and you’re gonna be able to help personnel
that you’re trying to help and you’re gonna be able to you’re gonna be the
solution the problem solver for them during that situation excellent advice
Thank You Mitch for for sharing your wealth of knowledge with us here today
just lastly can you just share a little bit about where people can learn more
about you or can connect with you yeah absolutely best place to connect with me
is on Facebook Mitch Ferraro you know search me sent shoot me a friend request
we also have our two business pages the real deal coaching just search the real
deal coaching on Facebook and you can also check out our investment business
page the ferrer group that’s pH e RR a gr OUP searches on Facebook we put a ton
of content almost daily out on those sites I put a ton of content out there
for for real estate investing so please reach out to me I look forward to
meeting at anyone that wants to meet and I hope to hear from everyone that’s
watching this all right I’m sure you will so we’ll link to your profiles
below the video and butt or net thanks again Mitch this is an awesome awesome
experience so until next time take care awesome Andrew thanks a lot man I
appreciate it

One thought on “Real Estate Investing as a Licensed Agent w/ Mitch Ferraro | Fresh Picked Fridays #3

  1. Nice! Looking Forward To More Content. Liked Video 🙂

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