Rod Khleif is a passionate real estate investor who has personally owned and managed over 2000 apartments and homes. As an entrepreneur, Rod has built several multi-million dollar businesses. As a community philanthropist, Rod’s work has benefited more than 45,000 underprivileged children and families.
Rod discusses culling a list to make it more accurate and actual outbound calling which he’s done successfully. He speaks to knocking on doors which he did in Denver to buy some of the 500 houses he owned there on a buy and hold strategy. He’s found if you’re willing to do what others aren’t you’ll be successful and he happily talks about all of that in today’s episode of the Flipping Junkie Podcast.
Rod has bought hundreds of houses by door knocking on houses that were facing foreclosure. Here’s what he did:
He would get the pre-foreclosure list (sometimes referred to as the Notice of Default or NOD list) and then design a route to go to the houses.
He focused on going in the evening after 5:15 when people were more likely to be at home. If they were not home, he would leave his card (that said something along the lines of ‘Foreclosure Assistance Specialist’). He would then try again on Saturday.
Persistence. That’s what lands deals. Huge deals. He was doing what most investors still won’t do to this day!
When the homeowner is home, you must genuinely care about helping them. If you only care about making a buck, go and chase bank-owned MLS properties….door knocking is not for you. Homeowners will smell a shark a mile away.
Ask them questions to guide them through the conversation. You’ll need to build rapport so that they’ll talk openly with you so that you can offer up solutions to their foreclosure.
Rod liked to ask them what options they’ve already considered. This is a good way to get the conversation going.
Rod makes sure to verify the accuracy of his mailing lists and will look for phone numbers of the owners. This is also something most real estate investors do not do. If you are serious about real estate investing, finding the owners, finding their phone numbers and calling them can net you big deals.
For verifying accuracy of list data and finding phone numbers:
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results
The Slight Edge (Turning Simple Disciplines into Massive Success and Happiness)
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Danny Johnson: This is the Flipping Junkie podcast episode 50. [music] Welcome to the Flipping Junkie podcast. My name is Danny Johnson; former software developer turned house flipper, flipping hundreds of houses. Each week, we bring you interviews, strategies, stories, and motivation to help you get started flipping houses and on your way to becoming your own boss and achieving financial freedom. Thanks for spending time with me today. Now, let’s get to it.
Hey, another great podcast episode for you today. We’re going to be talking with Rod Khleif today about getting deals using little to no money. So I know in a lot of people getting started, it’s sort of daunting and scary to think that you can spend a lot of money on marketing and it always ends up feeling like you’re throwing money into a black hole. It’s just like going nowhere and you don’t see results from it right away. It’s hard to have that faith and confidence that that will turn into deals even knowing that only one lead can product a deal that could make you $8,000, $10,000, $15,000, $20,000, $30,000. I mean, it’s definitely worth doing but sometimes that investment can be pretty difficult when it’s a considerable sum of money to you that you’re spending on marketing. So today we’re going to talk about getting deals using little to no money. That way, you can focus more on using of your time instead of money if that’s what you have more of; if maybe you have more time than money to get started. So we’re going to talk about that with Rod Khleif. He is a passionate real estate investor; has personally owned and managed over 2000 apartments and homes. As an entrepreneur, Rod has built several multi-million dollar businesses. As a community philanthropist, Rod’s work has benefited more than 45,000 underprivileged children and families. So he’s a great guy. He has a lot of accomplishments and really knows what he’s talking about when it comes to real estate investing.
You know, when I was talking to Rod about doing the show, we were talking about marketing and what we’re doing in this series of podcast episodes. Right now we’re in the middle of talking about marketing and finding these deals. The next part of the series we’ll be talking about analyzing the deals and talking with sellers and putting properties under contract and moving on through wholesaling and rehabbing and all that kind of good stuff. So we’re going to cover everything but right now we’re in the middle of marketing. So, you know, I talked to him about what we could cover and I know we’ve done a lot on direct mail and we’re about to get into a lot on online marketing. But I wanted to talk about some other things that didn’t cost a lot of money for people to get started. So, he mentioned that he began with knocking on doors which he did in Denver to buy some of the 500 houses that he’s owned therefore buying and holding. With that and also with outbound calling. So, those are some things that you can do and we’re going to discuss all that today in this episode. It’s going to be a great episode full of information for you.
If you’re enjoying this podcast, please be sure to subscribe and leave a rating and review on iTunes because that really helps the podcast get more traction, get us some more guests for the show to cover more topics, all that kind of stuff. So, it really would just help. I really do appreciate every single one of those. A lot of people have done it and I really appreciate it. We’re close to 200 reviews I think. So if we can get that pushed, just take five minutes to do that. If you’re not sure exactly how to do that, you can go to FlippingJunkie.com/rate – R-A-T-E – and it will show you really quick. Just takes a couple of minutes to do that and I really do appreciate that. Be sure to check out our Instagram account. You can follow us on Instagram. Go to Instagram.com/flippingjunkie. Junkie is J-U-N-K-I-E. You see pictures of us in the office and then the properties that we’re doing. Melissa, my wife, is doing a lot of the rehabs and doing the design of those, does a great job. It’s got pictures of work being done on houses in the end-product. So, really cool to check out some of the actual stuff that we’re doing with our flips. Be sure to also go to Facebook.com/flippingjunkie and leave any questions that you have. So we’re right in the middle of this marketing series for the podcast and if I’m not covering something that you want an answer to, definitely go there and leave a message for me. That way, I can make sure to cover that on an episode. I might even do a whole episode really soon, maybe the next one where I just answer questions that you have about marketing for deals. So be sure to go to Facebook.com/flippingjunkie. Junkie again is J-U-N-K-I-E to leave any questions that you have about marketing and all. And if there’s enough questions, I will do just an episode where I cover answers to those questions with this much detail as I can and if it’s something that I feel deserves its own episode, I’ll get a guest or cover it myself in an entire episode. So thanks again for listening, guys. Really do appreciate it. We’re going to go ahead and get into the show about getting deals using little to no money. [music]
All right. Hey, Rod, thanks for being on the show.
Rod Khleif: Thanks for having me, Danny. This is going to be a lot of fun.
Danny Johnson: Yeah, I’m looking forward to it. We had talked before about doing the show and, you know, said getting deals using little to no money because you’ve been real successful in the past on doing some outbound calling, door knocking, and basically, like you said, just doing the stuff that most people just aren’t willing to do.
Rod Khleif: Right.
Danny Johnson: Before we get into that real quick though, I always like to find out a little bit more about the guests and I’m sure a lot of people out there listening do as well as far as what got you excited about this business, what got you interested in real estate investing and how did you get your start.
Rod Khleif: Sure. Well, I immigrated from Holland when I was six years old and ended up in Denver. My mom babysat for money. We didn’t have much money and she babysat for money. But with her babysitting money, she bought the house across the street. I think I was 14-15 when she bought it. It was like around 30 grand. Then when I graduated from high school, it was worth about 50-some thousand. And although I flunked basic math in school, I could do that calculation and I got really excited about it. So I got my real estate license right when I turned 18, I got my broker’s license which you can do in Colorado at the time without having the experience. You can just all do it all through schooling. Ultimately, I started buying houses and I ended up buying 500 houses in Denver on a buy and hold strategy and I bought a couple hundred in Memphis and I ended up buying about 1300-1400 in Florida. I did flipping though. I did a lot of flipping in Denver and I made a lot of money doing flipping and I’m a big advocate for it. I will tell you, I think you wanted to frame this interview around ways to find deals and I will tell you the basic message that I want to give your listeners today is when you’re willing to do what other people aren’t willing to do, you always make money. That has always been my framework. Okay? So for example, when I got started, I would literally go find out who’s in foreclosure and I would go knock on their doors. I literally did it every night for years and I would just say, “Hey, I’m Rod Khleif. I saw you’re having a little trouble with countrywide funding. I help people in these situations. Do you have a couple of minutes?”
Now, I would list houses sometimes too but I ended up buying a lot of those houses. So that’s definitely an approach. Certainly most people will just mail those people but, you know, it takes a lot of gumption and knock on somebody’s door but if you approach it from a place of truly wanting to help them and maybe you’ve got some relationships with some brokers in your area and you can help them list it if it’s not a deal you want to buy, but if you truly come from that place, they will see it and they will feel it. Now, if you’re only thinking about yourself, it won’t work. So there is that piece if you’re doing foreclosure knocking on doors. But of course I had knocked on dollars, driving for dollars too just looking for beat-up properties and that worked extremely well also.
Danny Johnson: You bring up a really good point. I think with anything that you do, if you’re talking to sellers of properties, being genuine about helping people, it’s so very important because really, if you are in it just for the money, you could care less about them. It’s probably a better thing just to maybe go after bank-owned properties.
Rod Khleif: Absolute, because they’ll feel it. It’s not even what you say, it’s your body language. They’ll feel you. Going there really wanting to help and honestly, like anything else when you help other people, it comes back and if it happens to be that you end up buying their property and getting a great deal, you’re solving their problem. So, that’s the whole mindset is solving problems and looking for win-win solutions. So that was one way that I got – I mean, I bought a boatload of houses that way and listed a lot too though, I will say that. But then the other thing that I’ve done and done that more recently, and as I mentioned to you before we turned the mics on, I’m doing multi-family now in a big way and I do mailers. But the same thing applies for single family as it does for multifamily. When you’re doing mailers, a lot of people will just buy a list or they’ll go to the assessor’s office and pull a list. What you’ll frequently find is that the information is not accurate. If you want to be successful, you literally have to drill down on that information and verify it. There are a number of ways to do that but on the multi-family front, a lot of those properties are in LLCs or entities. So to give you an example, this may not apply for the single family as much but to give you an example, I go to the secretary of state and I find out who actually owns those LLCs. Then I get their home mailing address and mail them. But the reason a single family would have worked well is once you get that list and you’ve confirmed that it’s accurate, there are several places you can get phone numbers. I have been very successful with an outbound phone campaign. And again, that’s doing what other people aren’t willing to do.
Danny Johnson: Let’s get a little bit more specific. For single families, if you got a list for absentee owners or something like that, what is maybe a way that we could do what other people aren’t willing to do and verify some of the accuracy of that list?
Rod Khleif: You have to look them up and there are several resources and of course, you’re going to pin me down off the top of my head. We use LexisNexis but I believe you can do it through Whitepages or – oh, darn it. You know what, I’ll get it to you, you can put it in the show notes because there is one that’s like a dollar a record where you can really verify things. It actually pops up with phone numbers regularly. So I’ll get that to you by email and you can put it on the show notes.
Danny Johnson: Would that be TLO.com?
Rod Khleif: Buddy, I have a team that does this for me and forgive me, I should have had that for you, I apologize but I’ll make sure that you have it and your listeners can check it out. It’s very, very effective, you know. Particularly if you’re identifying distress situations like foreclosures but any time you see a property that’s beat up, I wouldn’t mail it. I’d call them. I mean, that’s what most people aren’t willing to do and that just sets you apart. And yeah, you’ll get some people that will hang up on you, big deal. I mean, you got to thicken your skin a little bit but it can be extremely effective.
Danny Johnson: Definitely. Yeah, I believe that. Do you know of any resources? I guess Whitepages will do it, give you phone numbers. Any other resources besides the one that you’re going to send?
Rod Khleif: You know, some of them are a monthly subscription. I don’t know of any that are free off the top of my head. But they’re not very much money. I mean, again, you’re not going to be doing thousands. You’ll do maybe a couple hundred if you’re really ambitious. So it’s not that costly. If you’re mailing, it’s less money than the mailing. It’s very, very reasonable and very, very effective. There are some of these that I believe one of them is like a small monthly subscription. It’s not even per person. It’s not very much. But I’ll get you the information and make sure you can put it in the show notes.
Danny Johnson: That will be on the show notes at FlippingJunkie.com/50 for anybody that wants to check on that.
Rod Khleif: Awesome.
Danny Johnson: Can we go back? Let’s take a step back and go back to the door knocking because I want to get into specifics about the process. I know that there’s a lot of ins and outs and I’m sure a lot that you’ve learned from your experience in doing it. I know I did a couple times, it just wasn’t for me. That’s what you’re saying. For most people, it’s just not for them. So if you’re able to do it, there’s not much competition at all.
Rod Khleif: There really isn’t. There was one other guy in Denver that was doing what I was doing and we’d race to the houses. That was it. Denver is 2 million people, you know, and I was doing it in a Denver county. Frankly, I’d be surprised if any of you that are listening, if you’ve got anybody that’s doing it particularly if you’re talking about foreclosures, people are afraid of it. But there’s no reason to be if you’re coming from a place of wanting to help. Okay? Very few people will get ugly. Very, very few. I mean, I could count them on one hand where they’ve raised their voice and told me to leave. Some of them will say “I’m not interested” and shut the door. Sure, you’re going to get that. But I mean, guys, I bought hundreds of houses that way. Literally. So, it works.
Danny Johnson: So what was your plan of attack for that? So you’ve got a list of these that default and –
Rod Khleif: Yeah. I’d get the list then id map out where I was going to go and I do it. You know, this is another thing that most people aren’t willing to do. You got to kind of do it early evening when they’re at home. So I would start about 5:15 and I’d go for a couple hours. So I would route myself out. Back then it was, gosh, I had to use an actual map. That’s so long ago, this was. Now you’ve got all kinds of resources for that. And I would go knock, literally just pull up, knock on the door and say “Hey, I was down at the courthouse and I saw you having some trouble with whatever the mortgage company name is, and I specialized in helping people out of these problems. If you’ve got a couple of minutes, let’s chat for a minute.” And that was it. Real soft, caring, genuine. Then you get in and you go through their situation. What do you owe? What do you think it’s worth? What are you trying to do? Do you have an interest in selling? Maybe you’ve got some hard money resources you can give them for potential second mortgages but some of them still hold that hope that they can save the house and sometimes you have to give them some reality. But again, it worked very, very well. It also worked very, very well with beat-up houses too. Literally just going up and saying “Hey, I saw you. I’m driving by and I’ve got some houses in the area and I love buying them. Do you have any interest in selling?” Boom.
Danny Johnson: I love how you mention the fact that they have other options. I think that would be where people would open up a little bit more. I’m sure that you probably spend a little bit of time building rapport and if they invite you into the home and then you sit and talk with them a little bit, not straight down to business because you’ve got to let their guard down a little bit.
Rod Khleif: You have to build rapport. And even if you know that the reality of them getting financing is like zero to none, you can still say, “Hey listen, call this guy, see what he says. I don’t want to give you any false hope but you can try it.” Just offer solutions. Sometimes they have to work into reality and sometimes you have to help them do that. But most people listening won’t do this but the ones that will, will be very glad they did.
Danny Johnson: Yeah. So it’s not just getting in there and then saying, “Okay, let me find out everything about the house, how much you owe,” all that information. Walk around and look at the house and then make them an offer.
Rod Khleif: No, you might actually start out saying “Hey, what happened? How did you get here? What’s going on?” And let them talk for a little bit. They need to vent, they need to be heard and they need to be validated. Then go into, you know, “What do you think your options are?” Ask them “What do you think your options are?”
Danny Johnson: Good point.
Rod Khleif: If you ask it like that, then they come up with the answers. You can direct the conversation through questions and that’s the most powerful way. Any guys listening that are buying houses, any time you’re dealing with a seller or even a situation of distress like this, use questions to guide the conversation and you could let them answer the questions the way that guide them into going where you want them to go. If that makes any sense.
Danny Johnson: No, it does. Yeah. I like how you ask them what options they’ve looked into because they might say, “Well, I didn’t know I had any.”
Rod Khleif: Right. A lot of them don’t and you’ll find houses that are empty. They just left. They think they don’t have any options but they always do and it’s a shame. Even cash for keys sometimes from these banks. So that’s one way and that’s been very successful for me, honing in on the mailing list and making sure it’s accurate. It’s been very successful for me.
Danny Johnson: With the door knocking, were you following up? So, say somebody wouldn’t come to the door? Is that something? Would you come back at a different time another day or would you just keep going down that list?
Rod Khleif: If I knew they were still there, I would definitely come back. Typically what I’d do is I do evenings during the week and then I go on a Saturday and try to catch, you know, really spend three or four hours on a Saturday going back to the ones I didn’t get. Yeah, I’d go back. I’d always leave a card and my card said something like foreclosure assistance specialist or something. It’s been so long. I’m trying to think what my card said. But something along those lines and the card on the back would say “Hey, if you need some help, call me. I can help.”
Danny Johnson: I’ve heard of people using like a pamphlet or something, making a trifold brochure that has testimonials and different information about who you are and what you do.
Rod Khleif: Yeah. You know, I wasn’t sophisticated enough to do that and it probably would have been good to have testimonials. I didn’t even know what they were back then when I was doing it. I was in my early 20’s. But it worked very, very well and I highly recommend it.
Danny Johnson: Awesome. Did you have a system in place or some way to follow up with people that you talked to that you gave them options and they weren’t ready really to take any of them yet?
Rod Khleif: Yeah, sure. Back then I used Lotus 123 but it’s like an Excel, it’s the precursor to Excel and yeah, absolutely you definitely put people on an Excel spreadsheet with their phone numbers, with your notes when you get home and then when you need to follow up with them. And there are lots of free CRM programs you can use. We use Simple CRM here now in our relationships when we’re building broker relationships for buying multifamily properties and we have to reach out to them regularly so we use simple CRM for that. If it’s not free, it’s very cheap.
Danny Johnson: Yeah. So if you consider most people won’t go out and do what we just talked about, they won’t get the list and go and door knock. They’ll send letters like everybody else and these people have a stack of 30 letters and postcards.
Rod Khleif: Exactly.
Danny Johnson: You’re one of the few that are doing that. And then if you talk to them or don’t talk to them, you’re following up. So even if there are a few people also doing that, I can almost guarantee you they’re probably not following up very much. They’re just kind of hidden one time. If they can get them, great. If not, then they just move on.
Rod Khleif: Well, one thing you can also do that seemed to work fairly powerfully as well is have handwritten notes with invitation-type envelopes and when you get to the house, if they’re not at the door, sit there for a second. Stick one of these letters and say “Hey, I missed you,” and hand it, address it right there in front of the house and put it in their mailbox and just say, “Hey, I missed you. I can help you with your situation.” If you’ve got a trifold with testimonials, that’s even better. You know testimonials that say “Hey, he helped me out of my problem,” whatever, things that are relevant to somebody in trouble. That was also very powerful. Now I’ve learned a lot about mailing and do it very successfully, again, for multifamily but it’s the same thing. You put a picture on there, that massively increases your response rate for that.
Danny Johnson: Right. Good ideas. So we talked about your door knocking for pre-foreclosures, then you said also distressed houses like driving for dollars you find these houses that are pretty beat up. Are there any other?
Rod Khleif: Yeah. Well not just houses. I mean you could do the same thing with little plexes, you know, duplexes, triplexes, quads. I mean, you guys, I assume your listeners are trying to flip stuff like that as well. And any time you see a beat-up property – period – I would go up, find out who the owner is or look it up using the resources we’ll have on the show notes and call them. Just call them. Don’t mail them. Call them and just say “Hey, listen. I saw that property. I’ve got one nearby and would love to have more. Have you ever thought about selling?” Great opportunity to find deals.
Danny Johnson: Okay. And the door knocking, were you basically doing that mostly just for the pre-foreclosures? Were there other lists that you would target with the door knocking?
Rod Khleif: No. It was just pre-foreclosures. Because it worked so well. When you’ve got motivation, those are your best deals and those of you that are flipping actively know that. That they have to sell, they have to get out. It’s a divorce, it’s whatever the reason – business failure, job loss, whatever. If they’re motivated, you’re going to get a better deal and you’re going to arrive at a win-win solution.
Danny Johnson: Right. What I like about that also is that I think some people will bury their head in the sand a little bit. So even though they’re receiving letters from attorneys about bankruptcy, they’re receiving letters from the realtors about listing the property, receiving letters from investors wanting to buy the house, and it’s overwhelming, they’re stressed out, they don’t know what to do.
Rod Khleif: That’s why your attitude and you got to feel it. I mean, literally. And this is going to sound really corny and I get it but trust me, it works. Right before they open the door you think to yourself “I love you” and you think that when they answer the door and they will feel it. Okay? And I know that sounds corny, guys. I’ve studied sales for years. It works. Okay? So just something along those lines. “I really care about you” and ideally feel that way. I mean, ideally, be compassionate. Okay? These people are going through the toughest time in their life and so it’s great if you don’t fake it, okay? I’m telling you you’re going to help a lot of people if you decide to take this on. You will help a lot of people. I mean, there’s karma in this world and you will be developing some great karma.
Danny Johnson: Right. Yeah. That’s awesome. The calling, so you did make it more actual outbound calling that you’ve done successfully. Some of the stuff that you talked about where you take and find people’s phone numbers and call them.
Rod Khleif: Do your listeners just flip houses or do they also occasionally flip like some multifamily units?
Danny Johnson: Oh I’m sure that some of them do, yeah.
Rod Khleif: Okay. I got to tell you. I flipped an apartment complex here in Sarasota and made a hundred grand. So guys, there’s some big money in flipping. Or 120 grand, I believe. There’s some big money in flipping multifamily. This is where honing that list in can become very, very powerful because nobody does this. Say, the small. Some of you are going to have limitations financially but get the small multifamily from two to ten units for example. Most assessors are labeled that way. Get that list and most of them you’re going to find are going to be titled in the name of LLCs. Nobody does this. Take the time, go to the county, find out who are the owners of that LLC are with their home addresses, mail them at their home addresses. “Have you thought about selling?” or “I’ve got a property in the area” with a picture of you and your wife or just you. “I need to buy a house this year for tax reasons or a property this year for tax reasons.” Whatever. I’m sure you’ve talked about all of the different mailing methodologies. But that list is going to be so much better and such a better response rate than sending to the list that prints automatically with the LLC. It’s probably their registered agent, it could be their attorney and it’s just going to go in the trash. Then, if you want to take it to the next level, you take the owner of that LLC and you call them and that is when it really exponentially works. That’s what we do and we’re very, very successful. We do it with mobile home parks and we do it with apartment buildings. It works and you can find deals and you can wholesale them, you can flip them. There’s some great opportunities.
Danny Johnson: Yeah. Because everybody is mailing to absentee owners and looking at single family properties for the most part. So, you’re right, it’s a lot less competition I’m sure.
Rod Khleif: No question.
Danny Johnson: Now when you do do that research and you do call these people, I’m sure inevitably you get a lot of people that are a little bit freaked out because it’s titled in their LLC and really it’s not typically something that’s easily found.
Rod Khleif: Yeah. You’ll get that sometimes. Just say “Your LLC is public record and I’m not trying to alarm you in any way. I saw your property. I was very interested in it which is why I did a little bit of homework to find you and please, if I’ve offended you, forgive me. If you’re not interested in selling now, is it okay if I call you in a year?” and just develop a database. If you’re committed to this and you’re committed to your market area, start developing a database. I’m not exaggerating, I know a guy that all he does is call on mobile home parks and he makes a million dollars a year wholesaling those deals to large players. There is big money in dialing for dollars. Okay? And that’s the secret, is to develop a list and do the homework. I mean, get the phone numbers, get the right addresses and you’re doing what other people aren’t willing to do which is the basic framework and it works.
Danny Johnson: Yeah, building that database and doing the follow-up. Because it’s all about timing, right? I mean, if you get them at the right time, if they’re very interested. If it’s not the right time, they might be in 2 months, a year or 2 years.
Rod Khleif: Well, that’s why you have your multiple mailers. I’m sure your listeners have heard that from you before. You can’t just mail once. You’ve got to get in front of them. We’ve had people call us a year or two later that have held on to the card or the letter or whatever but the key is it’s been proven, you’ve got to do it and ideally different pieces too. Not just that you don’t send the same thing. You send it in different ways, different envelopes, different formats.
Danny Johnson: Yeah, and having the system in place to be able to remind you to make those calls, to follow up, and send other pieces. That’s exactly why I developed REI Mobile which is my CRM software system.
Rod Khleif: Oh, no kidding. I didn’t know you had one. That’s awesome.
Danny Johnson: Yeah, so I’ll plug that right now. But I mean, it’s exactly why we set it up because you can’t remember all of this. And paper and files and even spreadsheets for me, I always have problems with creating them than forgetting them and then seeing them, finding them three years later and saying, “Man, whatever happened to this?” But we set this up to integrate with Google Calendar so I get notifications so I can forget it after I set it. But anyway.
Rod Khleif: That’s awesome. Yeah, that’s awesome that you have that. That’s a great resource. Your listeners should take advantage of that. I would like to say one thing if you don’t mind, Danny. I was telling you my story. I had 800 houses when the market crashed here in 2008. I got my butt kicked and I realized that my multifamily that I owned at the time did just great. My podcast is about multifamily real estate investing and I would tell your listeners, those of you that are kicking butt flipping houses, making a lot of money, consider multifamily to spend that money on and build an annuity and build a life so that every January 1 you don’t go back to work. Be it investing in a business or investing in like multi-family real estate, then at some point you don’t have to work every January 1. I just want to throw that in there, I hope you don’t mind.
Danny Johnson: No, no. Checks in the mail. I think that’s something long-term for everybody to focus on. So flipping can become a job. Yeah, you can set up a business and have other people run it but what you really want to set up is long-term wealth and doing that by those rental properties or notes.
Rod Khleif: Absolutely. My plug is multifamily because it just has been so good to me. I think I mentioned to you, I’ve written a book and I’m happy to give it to your listeners for free and it’s about multifamily real estate investing and it’s real good, 200 pages if I don’t say so myself. I mean, soup to nuts what you have to do to do this. And they can get the book by texting 41411 and just putting my name in, Rod. So Rod at 41411 and we’ll put them on the list. But I will tell you it’s in final editing right now and it’s going to be probably 30 to 60 days before it’s done so please be patient.
Danny Johnson: What’s the title of it?
Rod Khleif: Lifetime Cash Flow Through Real Estate Investing. It’s the same title as my podcast. It’s really about building lifetime cash flow with multifamily properties and everything from finding them to talking to sellers, talking to brokers, to financing them, to managing them, buying contracts, everything. Everything is in there. I mean it’s soup to nuts, it’s a really comprehensive book. It’s not fluff. It’s just a way that I give back.
Danny Johnson: That’s awesome. I appreciate that. It’s free too.
Rod Khleif: That’s right. I am going to sell it. I will tell you I am going to sell it at some point. But it’s down the road. I don’t have time to do the whole Amazon thing and all that, so I’d give it to your listeners for free.
Danny Johnson: Well, the podcast too, let me mention that because you didn’t give the name. You gave the name roughly. But it’s Lifetime Cash Flow podcast. Lifetimecashflowpodcast.com. It’s Rod’s website and podcast.
Rod Khleif: Right. Thank you. We’ve only been at it for 5 months but it’s been killing it and had some incredible speakers on there from Grant Cardone to some of the Rich Dad authors to a billionaire that owns 45,000 apartments to a guy that just has a couple of duplexes and everything in between. So if you guys have any interest, I’d love to have you listen and see what you think.
Danny Johnson: Great. That’s awesome. Any other tips for people for doing things that other people aren’t doing to generate these leads and deals whether they be for single family, multifamily or whatever?
Rod Khleif: Yeah. I’ll just tell you one thing. Those of you thinking “God, I can’t do that,” 80% of your success in anything is your psychology and only 20% is the mechanics. Focus on the psychology. I do some little clips in my cash flow podcast about psychology. Every week I do like a 5 to 8 minute clip about goal setting. Finding your why’s, having pictures of what you want, visualization, manifesting, dealing with fear – all of those things. Make sure you’re right there, guys. Make sure that you’ve looked into your psychology and your confidence and your ability to influence and your knowledge of this business because all of those go hand in hand. So that would be my last little tip. Make sure you’re good on the psychology part because it’s 80% of it.
Danny Johnson: Yeah, I agree totally. That’s why we started in this series of podcast episodes probably like, what, 40 episodes back with foundation and mindset. We covered maybe 5, 6, 7 episodes of all of those things. It’s very important.
Rod Khleif: Awesome.
Danny Johnson: I agree completely. It’s awesome that you share a lot of that in your podcast as well.
Rod Khleif: That’s my favorite part actually. I love it. The whole psychology thing. I’ve been around Tony Robbins’ environment for 16 years and so after 16 years, a few things stick. So I really enjoy talking about it and embodying it as well.
Danny Johnson: Yeah. I’m a big Jim Rohn fan.
Rod Khleif: Oh yeah, Jim Rohn taught Tony. So there you go.
Danny Johnson: Well, speaking of that, do you have any books that you recommend along those lines?
Rod Khleif: Well, anything by Tony of course is fantastic. I’m about to get Gary Keller on the show and he wrote a book called The One Thing. Just fantastic. I’ve given away a hundred copies of The Slight Edge which is just about micro improvements in your life and the huge impact they have. Oh god, of course anything by Kiyosaki is fantastic. I’m sure you’ve…
Danny Johnson: Yeah, great books. I’ve read all the ones that you’ve mentioned. Tony Robbins does have really good stuff. A lot of times you can find a lot of what he did for audio and some of the live events on YouTube.
Rod Khleif: Oh yeah. He’s got a lot of clips now. He finally started doing that which I think has done huge things for him but there’s incredible content on YouTube from him about the psychology like we were just describing. I highly recommend you guys check it out.
Danny Johnson: So have you ever walked on hot coals?
Rod Khleif: Probably 45 times. Yeah. I’ve done 4 to 5 Tony events every year for 16 years. I can talk about Tony forever. That guy has changed every aspect of my life. I’ve been volunteering at his events on his security detail for 8 years. It’s impacted every area of my life. I highly recommend the guy if you have ever have a chance –
Danny Johnson: So what is it like walking across? I’ve always wondered.
Rod Khleif: It’s all mental. They just had that big thing in Dallas where supposedly some people burned their feet and I was there. And yeah, if you’re going to try to take selfies and photographs while you’re walking across the flames, I mean, duh, yeah you’re going to get burned. The one they do at the UPW which is his premiere events is only about 12 feet long. I’ve done 50 foot long ones at some of his other events.
Danny Johnson: Wow. Did you put something on your feet first and then just go fast?
Rod Khleif: No. Your body will protect itself as long as you stay focused. The minute you lose your focus, you will burn. I mean, he’s done millions of people that walked across fire. Sometimes you’ll get a tiny little blister that goes away in an hour but the bottom line is, it’s a metaphor to show you that you can do anything. That’s like I was talking about, guys. Psychology is 80% of this; 20% is how to buy a property. Eighty percent is your mindset. And that’s a great example of that. I mean, if you can walk across fire, what the hell can you do? You can do anything, right?
Danny Johnson: Yeah.
Rod Khleif: So that’s the metaphor. Some people do board breaking, some people do other types of things that they use as that metaphor, Tony’s fire walking and he’s very good at it. It requires some pre-frame. He walks them through it, you visualize it. A lot of visualization. I’m big on visualization. You visualize what you want. And it works. I visualize all the exotic cars I’ve ever owned. Before I owned them, I had pictures of them to manifest them and again, it’s psychology.
Danny Johnson: Yeah. I’m a firm believer in all of that as well, yeah. One of my favorite episodes that I did was with Hal Elrod for The Miracle Morning and I’m still doing that for I guess, yeah, it’s been about a year now that I’ve been doing that. So getting up early and spending an hour doing all those different things, so it’s awesome. Well, thanks again Rod for being on the show.
Rod Khleif: Absolutely, buddy. Appreciate it.
Danny Johnson: How can people, anybody out there listening who wants to get a hold of you, how can people get a hold of you?
Rod Khleif: They can email me directly at [email protected]. Actually, I take free phone calls even through my website, about six of those a week. I’m booked out pretty far but anybody that’s got some questions about multifamily real estate investing, they can go to LifetimeCashFlowPodcast.com and get on my calendar and come listen to my podcast. It’s a lot of fun. I think you’d really enjoy it. It’s Lifetime Cash Flow Podcast.
Danny Johnson: Cool.
Rod Khleif: So, love to have you come over. And Danny, thanks so much for having me on the show, buddy. It’s been a lot of fun.
Danny Johnson: Yeah. Thanks for being on. All right, well, have a great day.
Rod Khleif: All right. You too, buddy. Take care. See you. [music]
Danny Johnson: All right. Great episode with Rod. Thanks again, Rod. Like we said at the beginning of the show, we’ve been talking about finding people and doing some searches to verify accuracy of some of these lists and finding phone numbers for people. Rod is going to share what he uses and we’ll have that on the show notes page as well. So it will be flippingjunkie.com/50, it’s episode 50. Flippingjunkie.com/50 to get to that show notes page through that. And yeah, so we talked a lot about making sure that you’re setting up systems to follow up and do these systems that other people aren’t doing. So always be prepared to maximize every lead that you get and everything with follow-up. Like I said, that was why I created REI Mobile and was using it myself before I released it to everybody else because it really does make a huge difference and maximizing the benefit and converting more of those leads over time in a deal. So check that out. REIMobile.com. Thanks again for listening. If you enjoyed the episode and enjoyed the podcast, please be sure to leave a rate and review on iTunes. I’m going to try to reach 200 I think is what we’re real close to. So just need maybe 20 people I think to do that. So if you haven’t done any yet, please take a minute to do that. You can find out how at Flippingjunkie.com/rate. Thanks again. You guys have a great week and talk to you next week.
I have two questions;
1) How should you dress when knocking/
2) how to get Rod’s book?
When door knocking, I would dress in casual clothes that are on nicer side…something like jeans with a polo.
Regarding the book, please check with him at his website (the link is in the blog post where this comment is).
Danny, this was a great episode. Thanks so much for your podcast. Hey, have you ever thought of trying to buy homes in the pre-foreclosure stage? It’s easy to find ones with equity through realitytrac. Rod had a lot of success with this but I don’t hear hardly anyone doing it or talking about it. Have you ever marketed to this list? What are your thoughts. Thanks again for the podcast! In my opinion it’s the best flipping podcast out there. So practical.
We do not market to pre-foreclosures mainly because the competition is so high. If we did, I would probably door knock or find a different angle than anyone else. That would be key. To stand out.