Dave Morse (00:03.805)Sounds good. All right. Adam, we're flipping the script right now. You're normally interviewing others and I'm getting to interview you today. So I'm pretty excited about that.Adam Whitney (00:17.036)Yeah, it's awesome. I'm always pumped to be on the podcast, either getting to talk to amazing people from our community or our world, or sometimes getting interviewed.Dave Morse (00:29.961)Yeah. Well, maybe let's just share with everybody kind of where this came from. We were, I mean, we talk every day. I maybe I'll introduce myself, Dave Morris, COO, seven figure flipping. We also do multifamily together and we talk every day. Was it earlier this week? I think it was where we were just talking about some of the different questions that constantly come up in either strategy sessions with new members that come on board or people that eventhat aren't members new to 7FF that come in and just have questions about things. I did some math the other night and from 2019 to now, I've spoken with over 3000 investors, like not just Altitude, not just Runway, but also just people just that come into our ecosystem.and have questions about how are you doing this and how are doing that or I'm struggling in this way, you know, help me with what to do. That's kind of a big number.Adam Whitney (01:35.182)That's a ton of people. Yeah. 3000. I think that, um, as I did some research on the real estate investing industry, particularly like house flippers, wholesalers at any given time in the entire country, there's only about 40 to 50,000 active investors. Now for context, there's 360 million people in the United States.Dave Morse (02:03.431)Yeah. Yeah.Adam Whitney (02:04.31)Hey, hold on one second.Adam Whitney (02:28.696)Dickhead next door keeps walking by my office talking on the phone and if he does it again, I'm punch him in his face.Dave Morse (02:34.725)We couldn't, I couldn't hear any of it. You to filters. All right. You ready? Okay. So what, yeah, what, what most people don't probably realize Adam is you're on with members once a week, if, if not more, and oftentimes just connecting with different people. And the same with me when I have, you know, I asked our marketing team that set me up with three to five calls every single week with just people.Adam Whitney (02:38.158)is distracting me. Yep, 360 million people.Dave Morse (03:03.997)that are coming into our community. it's black box method, or they want to know about capital raising or whatever it might be, because it's super important for us to know what people need and where they are in their business so that we can serve them well. A huge, a big focus for us is always member success, right? Speed to connection with our members, speed to success. So what I did is I have a whole bunch of questions, right? I don't know how many we'll get through. I'm going to start with the most common questions thatpeople who are brand new to our community ask and they want to know about. And then as I was listing all of these out and just kind of pulling them, also kind of went to the questions that they should be asking, but they don't ask. And so I want to get into that too, or if you're answering my question and you have some of those, let's just go right to it because that's the stuff that people really need to know about. You started as a runway member at the end of 2020.So maybe kind of put that hat on as well. When you're brand new, just coming into the community, you had so many questions, you just invested in yourself. You're ready to like take the right action, but you were uncertain about a lot of different things. And then, you know, that's like one hat, but then also have the other hat of what you know now today with Blackjack Real Estate. And then also having connected with like hundreds of elite investors and justpulling in all those best practices from everybody. So have both of those hats on when I ask these questions. Is that okay? Okay, all right.Adam Whitney (04:37.614)Okay, great. Yeah, and just so everybody knows, I do not know what questions Dave is gonna ask me. Like, I didn't get these ahead of time, so we're kinda just doing this live, which I think is really cool.Dave Morse (04:50.162)Yeah, yeah, it's gonna be fun. I mean, and we have, I mean, we have people, so many people in the mastermind that are stacking rentals, they're wholesaling, they're new construction, they're doing all of it. I kind of focusing these, this part more on fix and flip, if that's okay. And also we have altitude, which is, I have all, lot of altitude questions. This is more of our investors who are doing a few deals, trying to say, man, I really want to make a business out of this. So it's more focused on our runway.type of member. Okay? Okay.Adam Whitney (05:21.72)Yeah. And I think for every, well, here's an important thing for people to understand. Cause like people listening to this podcast, may not know this actually. So you, come to this podcast, podcast at seven figure flipping by bill Allen, but it's actually Adam Whitney typically hosting and today's Dave Morris hosting. So, I today am the, the CEO of seven figure flipping. get to host the podcast. like.doing it, Bill's not hosting. Sometimes he does. And Dave is the chief operations officer, like to run the organization. And he said two things that people don't under, they don't know what seven figure runway is or seven figure altitude is. It's just basically when people join our mastermind, the seven figure flipping mastermind, they go in one of two buckets.Bucket number one is I want to build a business, but I don't yet have a business. So maybe I've done one or two or a couple flips or wholesale deals or whatever it may be, a couple rentals. But I see that you guys know how to build a business and I want to do that. So they join seven figure runway. What happens after that is they take all those systems, process, infrastructure, coaching, all the stuff we've had that we've given them overjust 10 years of the best of the best. They take that, they implement it, they build a consistent business, which then allows them to potentially maybe qualify to be in the seven figure altitude mastermind, which is the mastermind that I'm in, where I have a big business making over seven figures, like we're talking business type stuff. So you have to qualify for seven figure altitude and it comes with all kinds of crazy good benefits. So people don't know that.so what, like seven figure flipping runway altitude was all that mean runway and altitude are just two different parts of our mastermind. seven figure flipping is who we are. We have a seven figure flipping mastermind based on your experience. You belong in one of those buckets. If you decide to join us, which I don't know why you wouldn't because there's literally nobody better in the space, not pace Morby, not Josh and Tiffany, notAdam Whitney (07:46.744)Collective genius, not investor fuel. If you want to be a house flipping business, this is the best mastermind to be in period. It's not even arguable. I'll go toe to toe with anybody on it and I'll guarantee it.Dave Morse (08:03.834)If we can do another one, we should do one just on that altitude level, real estate business operating systems. There's a lot of questions that people ask there, let's go right. This is runway, runway focused. Sounds good. All right. So two most common topics people come into a call asking about are, man, it's tough to find deals right now. How are you guys getting deals? It's probably the most common question. Or I have deals, but I have deals all over the place.Adam Whitney (08:16.108)Okay, cool. Yeah, sorry.Dave Morse (08:33.128)but funding's holding me back. Tell me more a little bit, how are you guys funding deals right now? So let's just start with deal flow first, most common question. Just breaking through to like, maybe someone's doing four five, a couple, and they're going, I wanna do 10 plus this next year. Or maybe breaking all the way up to the 20 plus. How do you answer that?Adam Whitney (08:52.3)Right.Adam Whitney (08:58.734)So there's two, let's talk deal flow first. Deal flow, you can get deals from a lot of places. You can buy deals from auction courthouse steps. You can buy deals from the MLS. You can buy deals from wholesalers and you can buy deals direct to seller from your own marketing. So I like to think of them in kind of two buckets, free versus paid.Dave Morse (09:02.172)Yeah.Adam Whitney (09:28.384)I think that me for me personally, if you're talking to me and I'm telling you how to build a machine, you have to put a system around whatever you're doing. It has to be systematic and it has to be measurable. And some of you guys might say, well, I just buy from wholesalers. Like how could that be systematic and measurable? Well, we, we in seven figure flipping built a whole literal system called the black box method aroundthis exact thing that makes it predictable and measurable. that way, like for example, I went into 2025 with a game plan on how much money I wanted to make and how many deals I wanted to do. It's, what is it? It's October. We're slightly ahead of that, but I almost predicted it to a T.like literally almost predicted it to a T on what we were going to do because we're systematic about it. So how do you get deals? I want to get deals. These people ask you, Dave, how do you get deals? You build a system around either free or paid marketing and you execute that system consistently over long periods of time and it will produce results. And it's, it's, it's guaranteed. It's guaranteed to produce results.Dave Morse (10:52.136)So that.Let's start with free and give people an idea of what's possible. So they've done, maybe they've house hacked. They have, you know, one flip that they've done. They know they want to do this. They're ready to do it. They're like, Hey, I want to know free. Can I get to 10 deals, 10 flips next year? Maybe I keep ones in rentals, some tax reasons or whatever, but I want to do 10 deals next year free. Is that realistic?Adam Whitney (11:14.786)Yes.Adam Whitney (11:20.11)Great marketing, we're talking marketing. Yes, 100%. You can probably do between 20 and 50 house flips a year without spending a dollar on marketing. Easy, predictably. And you could do that by implementing this system process that we have called the black box method. Now, this particular process just shows you how to findDave Morse (11:22.13)free marketing.Dave Morse (11:32.776)Yep. Yep.Adam Whitney (11:50.046)exactly how to find all of the people who are hunting off market deals and how to make sure that they send them to you in a specific way and how you filter through those deals to dial in your buy box underwrite and in a very conservative yet effective way, make offers on the houses that you would buy and flip for sure. And thenbe able to predict to a T how many of those it takes to do the thing. But it's to be, a lot of guys and gals do something like this, but it's not systemized. They just kind of do it and they're like, I got a deal. And then they forget about it. And they're like, crap, I sold this house. I need my next house. Like then they're going, they don't have it. They don't put the system in place. And the beautiful thing about having the system in place is, and this is what,The whole purpose why people come to seven figure flipping to be a part of our mastermind is because you don't want another job. You want to build a business around your life. So you build a system around this, which by the way, costs you no money. You perfect the system and then you do something simple like hire a virtual assistant from the Philippines or Egypt or wherever, which is going to cost you five to eight bucks an hour to run that whole system.which by the way is making you hundreds of thousands of dollars a year doing it.Dave Morse (13:22.185)I've literally connected hundreds of people into this exact same thing and it blows their mind. Like when I tell them, you free marketing, you can easily go to that goal. Cause they'll say my goal is 15 next year, 10 next year. And you can do it that here's the question that they're not asking with that, that I think is super important that I'd like you to talk about. Hardly anyone starts by asking, how do I analyze my market area to make sure I'm buying right?because there's a million deals, it's all about buying right. Who cares how many deals you do, it's all about profitability. In 7FF, we talk about profitability all the time and it starts with buying right. So what should they be interested in? I mean, they have to just know hundreds and hundreds of people are getting deals with free marketing enough to the goals that they wanna do for 2026. It's just facts.What should they be thinking about with analyzing their market area to make sure they buy right?Adam Whitney (14:25.55)It's really simple. It's really simple. You should be looking at your, your particular areas, supply and demand. So supply meaning how many houses, how much inventory is on the market and demand meaning like how much is selling, like what is it selling for? How often is it selling? And then understanding what the median price point is in the market. So you're constantly watching your particulara zip code or your county or wherever you're at to understand what kind of market you're in. There's either it's going to be easy to get deals and buy good deals cheap, or it's going to be easy to sell deals. It's rarely both. It's easy to get them or it's easy to sell them. And your job is to know which market you're in and to employ the strategies that give you the competitive advantage on either side.Dave Morse (15:28.009)So thinking of somebody who's brand new, I mean, they've done a couple of deals, but they're brand new to our community. We're setting up Deal Flow, a Deal Flow mechanism. They're using all the different tools to analyze their market. And there's training, right? There's a systematic way to analyze your market area to know what your buy box is and what your price point is. Walk me through offers because people say like, well, how are you getting deals? And how do I, they haven't done that yet.And people don't, they often don't ask the right questions or aren't thinking about how making offers. They think, all the wholesalers are set, the prices are too high. They don't match what I should be buying at. Walk me through that.Adam Whitney (16:14.496)Well, unfortunately, this is a mindset problem for a lot of people. They say there aren't there aren't any good deals out there. The wholesaler is asking too much. The house is listed for too much on the market. And what people have to realize is that none of that. The only thing that matters is what you and your business can pay for a property to make the amount of profit that you want to make. That's all that matters.Dave Morse (16:22.981)All right.Adam Whitney (16:43.598)Doesn't matter what it's listed for. It doesn't matter what the wholesaler is asking for it. Literally none of it. All that matters is what you can pay. And what you can pay is based on your business model and how much money you want to make on your deals. So we met.Dave Morse (17:01.065)So how does that really work then? If I know I need to buy at 220 and all the wholesaler deals that I'm getting are at 270, what do do?Adam Whitney (17:12.334)Yeah, you call the wholesaler and you say, hey brother, I'm at 220. It sounds like you're probably gonna need more for this, but just in case it doesn't work out, I'm ready to go at 220.Dave Morse (17:27.497)But it's as easy as that, right? Just doing it every time.Adam Whitney (17:28.812)And that's And every time though, like for every house that you look at that you would buy because it's in the right neighborhood, it's the right type of house. It's the right, bed bath. It's all the, it's all the right things that you want to flip that house or buy that house to wholesale, whatever it may be. You have to make the offer no matter what.Period. Make the offer. Bottom line.Adam Whitney (18:05.538)Dave, did I lose you? Hamer, think I lost Dave.Adam Whitney (18:31.692)Lins, we're recording a podcast that is for sales. Like the people, the questions at sales, we will get the most, or Dave does. So he could just have the podcast that answers all the questions that he could share.Adam Whitney (18:52.066)resources. So that was ourAdam Whitney (19:01.518)Hamer, can you text Dave? Would you mind doing that? See what's going on.Dave Morse (20:26.724)My gosh, wait, let's see. Where's my video?Dave Morse (20:33.654)I can't hear Adam.Adam Whitney (20:35.926)Yeah, you can hear me, Dave. I'm right here, 100 % committed to doing the best podcast ever. And you just quit.Dave Morse (20:44.878)Dude just went black. I don't know. We usually, I can't even remember the last time we lost power. I don't know. There's yeah, it was like a flash of out and then there's a, they have half the street blocked like out on the main street for maybe some construction or something, but.Adam Whitney (20:47.328)It went straight. What happened? Did you lose power?At your, at your home?Adam Whitney (21:05.038)Don't you live where all the rich people live in Arizona?Dave Morse (21:07.748)I mean, there's more rich people in bigger places, but yeah, I'm right by the temple.Adam Whitney (21:13.324)You could, yeah, it's all the rich people.Dave Morse (21:17.676)Alright, I don't see... Do you guys have video? I don't see myself.Adam Whitney (21:21.294)I don't see your video.Dave Morse (21:25.987)You don't?Dave Morse (21:35.908)Yeah, there it is. OK. OK.Adam Whitney (21:37.538)BAM!Adam Whitney (21:43.15)I got my new runway shirt on.Dave Morse (21:45.75)I know, super nice.Adam Whitney (21:48.11)Is it orange?Adam Whitney (21:55.544)good? That's good. It's supposed to be orange. It's supposed to make a shirt.Dave Morse (21:58.404)Yeah. And it's not a bad orange. It's a good orange. Okay. Where were we at? And we were talking about making offers, like just every day making offers.Adam Whitney (22:09.974)Yeah, like regardless of what people, yeah, I think we went through all that.Dave Morse (22:15.232)OK. All right, we're ready to move on to the next one then.Adam Whitney (22:19.918)Yeah, whatever you need to sell more people.Dave Morse (22:20.801)Okay.Okay. All right. So we talked about enough deal flow to kind of hit those initial goals that most members have. There are others, and this is maybe kind of edging a little bit more towards our altitude group that comes in. But the other question that I get that's related to this is I know I need to go direct to sell, and we're going to get to financing next because people are always asking about money. I know I to go direct to seller. Can you show me how to do that?Like it's just a question, do you guys, you do that? They know we do it in the mastermind, but they're like, can you, do you show me how to do that? And it's just so wide. What should they be asking?Adam Whitney (23:05.654)Yeah, it's a bad question to ask. The question to ask is how do I build? How do I scale my business in a predictable way by going direct to seller and marketing? OK, and that means when we say direct to seller marketing, that means I am putting stuff marketing in front of people that have houses that I want to buy. That could be direct mail, cold calling.SMS, billboards, TV commercials, CTV commercials. It could be a lot of different things. The beauty of it is, is the answer is yes, unequivocally, everything you could possibly need to launch a really effective direct to seller marketing campaign is in this community. But here's what you really need to know isYou don't just launch, don't show up and launch a $100,000 a month campaign because you know it would be effective. There are components that need to be in place. You need the correct infrastructure and processes in place in your business to be able to even take care of those leads. can show you seven figure flipping as a community.can show you how to get leads at scale, direct to seller to build a big business. But you need to hire the right people. You need to have the right lead managers who use the right sales process. You've got to have the right sales closers, acquisition reps. You've got to have the right management in place, the right KPIs in place, the right accountability in place in your business.Before you could just go out and scale a bunch of marketing spend, the marketing is not that hard to build and to grow it and to be able to do, to create marketing that creates five, 10, 15, 20, 50, even 100 deals in a month. We have had investors in our community who literally were doing 100 deals per month.Adam Whitney (25:33.134)over a thousand in a single year. That's not always, that's not, there are multiple layers of components to it. So yes, you get all that. But what the real beauty is, is I get to come sit down next to an investor and talk about the pieces, the struggles. What kind of problems are you having at 30 deals?You know, like my friend Kevin, who's in Florida, who's going to come to our Clearwater event. He's doing 20 flips a month, 20 flips a month. And like, just to hear his problems and why you may or may not want to do that. And how profitable are you actually doing those things? Right. Those are all parts of,Adam Whitney (26:32.972)Lindsay fucked me up opening that thing on this podcast. Hold on. Let me start over. She she was like cracking her caffeine for the first time today and I can see the smile onDave Morse (26:36.99)I heard it.Dave Morse (26:44.386)Yeah, I heard it. heard it. Okay, with people who's doing he's doing 20 a month and those are all part ofAdam Whitney (26:47.53)interface interfaceAdam Whitney (26:52.524)Yeah. But there are, there are components of, of that kind of scale. You can get that scale easy. Hey, I want to do a whole bunch of deals a month. Guess what? We had two people join our community doing 200 deals. They're like, I want to do three, 500 deals a year. The question is why and for what purpose to achieve what is that a profitability question? Because three.that your deal count might not be the thing that pushes you to profitability. What might be better is if you add a vertical. You might add a vertical to what you're already doing that could bring in a meaningful amount of actual net profit to your business. I think about Kyle Robinson, who's doing over $10 million a year, but by adding two or three verticals to his business, not 500 more flips.And then we get young guns that come into our community like Sam and Pat and these guys that they're originally when I first talked to them, they're, you know, it's a little ego and they would admit this. It's a little ego. I'm doing a hunt. just did 180 flips last year. want to do 400. Why? What's the purpose? What do you really want out of your business?Dave Morse (28:14.116)what you start talking about.Adam Whitney (28:14.286)It's probably not a deal count. It probably has something to do with profit. It probably has something to do with some kind of money number. And the money number has a purpose behind it too, because it allows you to do what? Retire your parents? To give more to your church? To hire a COO so that you can get out of the day to day?Like let's have a real conversation about what your genuine goals are because the path to do more is super easy to do more deals, to do more marketing. And you get into these rooms and if you go to a community and a community is like, we're going to choose where you go in this community based on how many deals you do a year. Why?I can do less deals in a year and make more money than your top guy doing 200 deals. Like why would deals a year be important? It's not. I know guys who built their business to hundreds of deals a year and they weren't making any money. Like do you want to be that person or do you want to build a business around the life that you want?Why did you even start this business? Let's talk about how we build the business around our lives. And I know this all started with marketing, but marketing a lot of times has to do with ego and growth. Like I do it, can show you how to do marketing at scale and get a whole ton of deals, but let's make sure we're profitable. Let's make sure we do it incrementally where we havethe appropriate infrastructure to take care of the leads the same way that you take care of them today. So if you've got a business today that's doing one, two, three deals a month, your lead managers, your people touching your leads, maybe even you on the sales call, like you're really deep into those. Every lead is getting like deep care for. If I take those same people, like those same people on your team,Adam Whitney (30:36.95)and I triple your marketing spend in your lead production, they're not there. It's impossible for them to take care of the leads the same way. So we're just trying to cherry pick the low hanging fruit, which is fine because it's necessary, but we're not getting the highest return on investment on our marketing spend, which is really limiting our growth and limiting our profitability and our company. So we have to have the appropriate infrastructure in place. So this question is way deeper thanDave Morse (31:06.916)Yeah.Adam Whitney (31:06.936)How do I scale my direct to seller marketing to do deals? Can you show me in 7FF how to do that? Yeah, I can. And so can a whole bunch of people here. And by the way, a whole bunch of investors here can show you what they did and why they wouldn't do it in different ways and how they would do it today. Or maybe the question becomes, do you want to scale that or do you just want to make more money for some other reason? Let's talk about how you do that.Dave Morse (31:37.405)man. Yeah. You talked about a lot of different pieces on there. We could go a lot of different directions, especially with impact and why we're even doing this. You started the call by talking about how with Blackjack, you were very deliberate with what your goals are and where you are. And I remember you and Lindsay talking about doing less deals this year, but bigger margin, more profit, just being very intentional about how you're approaching the year. And it was less deals.Which from an ego perspective, you have a podcast and blackjack, and there could be a lot of reasons that say you should do higher volume because it is marketing and set, but it's not what we're about. It's not what you're about at all. Because we did, we did go down this road. want to pull it back to the lower. I want to pull it back to the lower volume.Adam Whitney (32:22.68)We appreciateOkay. I just wanted to say I did less. I did less. I made more money. I put more money in my pocket. But you know what it allowed me and Lindsay to do? We donated $30,000. And then we got to go to Mexico and build a house.Dave Morse (32:41.453)my gosh, we could do a podcast just on just talking, re back going back in on that.Adam Whitney (32:46.21)We did the least amount of deals we've done in 10 years, but we were so we were hyper profitable. By the way, less deals means less brain damage. And it allowed us to do all this other stuff, but we got to do we got to donate really to how we 30,000. We gave $30,000 to the Seven Figure Foundation and you were there. Obviously, Dave, we all got to go build these houses.Dave Morse (32:54.404)Mm-hmm.Dave Morse (32:57.998)So yeah,Dave Morse (33:14.102)Yeah. Yeah. Yeah. Incredible experience. Okay. Well, we, do, you know, we talked about system process. do want to hit real quick before we move on the capital, the, some of those KPIs though, when it comes to marketing, what are some of those KPIs that you track? Cause we always say like, there's a system to it. There's a process to it. And then how do you decide when the double down on a marketing channel versus cut it? Because I think I see this all the time with investors who were doing the thing.And then they kind of maybe stepped out of the game and then they came back or they were doing it and now they're struggling because they cut marketing channels that they probably shouldn't have cut. And then now they're one marketing channel that they kept isn't producing. And so then they come back to us saying, what else should I be doing?Adam Whitney (34:03.16)Yeah. mean, here's the hard part too, right? So let's, let's like, let's kind of talk through what this looks like in real life. Nothing's linear. we track numbers on a weekly and a monthly basis and we're looking at ROI in a very like short-term weekly kind of look. But the reality is, is if I spent say,Let's say I spend $5,000 a month, which is not a lot of money on a marketing channel. Five grand, I got nothing. Second month, five grand, I got nothing. Third month, five grand, I got nothing. Let's say I got five months in and I'd spent $25,000. But one of those leads from that five month time period, I get a monster deal and I make 200 grand on it. So now I've spent $25,000 in ad spend.I only did one deal. It just happened to be a monster and I 225,000. Is that a good marketing channel or a bad marketing? Right? Like it only takes a deal to make sure that that like, so I think people lose sight of they want everything to look so linear. I spend $1. get three back.Dave Morse (35:05.477)9x.Adam Whitney (35:25.982)every week, every month, but it doesn't, you have to measure your stuff over time. But here's what you measure. Here's the funnel. Here's the KPIs you measure, period. For marketing, spend, of course, how much you spend on that thing, raw leads, like just pure contact info that comes in from that marketing channel.could be cold call, could be digital, could be anything, right? TV doesn't really matter, raw leads. Raw lead is just info that came in. A net lead is a lead that is validated. It's the human, they have a house and they do wanna sell it. Doesn't mean they're motivated, doesn't mean any of the other stuff, they're just a net lead. And then, lead, net lead.Appointment set, meaning we set an appointment for a closer, an acquisition rep to go on and try to close it. Appointment attended, meaning we want to know if people are showing up to the appointments. And then offers made.And after offers made, contract signed, and then contracts closed, and then revenue. That's it. Your whole company, you could track your whole company just off of those key performance indicators. You could track every marketing channel just off of those key performance indicators. Now it gets nuanced, of course. So for example, one of my favorite ones to talk about is direct mail.Direct mail is the best marketing channel in the history of marketing. And the reason it is, is because it ain't going nowhere. And it's not at the whim of Google, like a Google ad PPC or Meta. It's not at the whim of phone companies. Mail is mail is mail. I can send mail to anybody's house I want to.Adam Whitney (37:40.482)I can, Dave, I can send you a piece of mail today. It's not going anywhere. We've been doing this for the entire history of the United States, sending mail, right? So therefore mail is the most fundamentally sound, longest term marketing channel, period. It should be a staple in everybody's marketing. If you're some newbie and you don't have money to spend on mail and you want a cold call, fine, cold call.Dave Morse (37:49.349)Yeah.Adam Whitney (38:09.176)That's totally fine. get it. But eventually you will have mail as your fundamental marketing channel, period. It is that important.Dave Morse (38:18.915)What's good response right now?Adam Whitney (38:22.018)That's what we're going to go to. So if you're sending out mail, you're tracking to know whether your data in your mail piece is effective. The data you're mailing to and the mail piece, like what you put on the piece of mail is effective. You're going to track your response rate, which means I sent out X number of pieces of mail and I got this many phone calls back. The industry.today is a half of 1%. So for every 1000 pieces of mail, you only expect to get five phone calls. You can do better and ideally you do, but it is not uncommon to get like 0.2 or 0.3 or 0.4 of a percent. Like that happens. So you have to send volume.Here's what's crazy.I send out for every 8,000 pieces of mail I send out, I sign a contract and buy a house. So how much does it cost me to send a piece of mail? Like to send a postcard on average, it's about 50 cents. So for about $4,000, I can buy a house that I'll make $40,000 on.And I can do that predictably at scale because I know and track the numbers. If something's not working and I start to see somewhere in that little funnel we just talked about, something being off, that's why we track it. So then I can dive in and go, well, what's wrong with that? Is it my marketing? it my sales? Sometimes your sales guys get fat and happy. Dave, you know this like.Dave Morse (40:18.894)yeah.Adam Whitney (40:19.96)Dude made 200 grand last month and he's chilling. He doesn't care about the appointments. He's sitting fat and happy so he's not working his heart the next month. You're like, gosh, why aren't these, is my marketing messed up? Why aren't we getting more deals from this? it's because the sales guy did so well last month that he's chilling. Like that's a thing that happens in our industry, in any industry, really. It's like, dude crushed it. So he's like, man.Dave Morse (40:38.359)Yeah.Dave Morse (40:49.669)Yeah, for sure. So scaling, a scaling investor thinks about marketing and lead generation totally different than a new investor, the new investor. There's a lot of other things for them to think about. And you start at the beginning of black box methods. Some of these other things that can generate 20 to 50 deals a year. And we don't just say deals. We say good deal.Adam Whitney (40:50.03)You know how itAdam Whitney (41:09.71)without spending any money on marketing. Yeah, yeah, make money. You can do 20 to 50 deals a year without spending any money.Dave Morse (41:14.117)Yeah, I love it.Dave Morse (41:18.597)Yeah, super important for new investors to think about because they're wearing all the hats and if they have a W-2 job that they're juggling, like there's a way that we do this. Okay. Let's get into funding deals because that's the second most common topic that people come in asking about. We take funding deals a bit for granted at 7FF because we have a hundred percent funding partners. We're really good with private money. We have a whole process for raising and managing private money.But it's a big deal to a lot of investors with the flip funding challenge and other things that we've done. It was like, oh my gosh, this is actually a really big deal to people out there, especially when starting to do multiple deals at a time. So let's say you've done one or two flips, you've self-funded on those. Maybe you house hacked, you're ready to get serious. You're, I'm going to buy three.I say Adam Whitney, I'm going to buy three by the end of the year. know the market's down right now. It's a good time to buy. How are you, how are you funding deals? How can I, how can I do that? How can I use other people's money and fund three deals by the end of the year?Adam Whitney (42:29.406)Yes. I mean, the situation you described, these are people who don't really understand what's available to them. So.Dave Morse (42:36.193)Nope, I self-funded for just a couple. And maybe let's do this because mean, Bill is spending five days on a flip-funding challenge.Adam Whitney (42:42.638)Don't sell fund. Do not sell fund any deals. Ever. Don't sell fund deals.Dave Morse (42:50.839)Okay. Take me through some of the principles of funding. I know in the Marines that you always talk about principles are built based on people who have probably died. Like the rules, you know, people have died. there's a rule. It in raising capital and in real estate, it's because people lost money and then rules were created about how you should buy right. And, but give me some of the fundamentals of, of using other people's money, how I should fund deals.Adam Whitney (43:02.146)Yeah, there are things that are always true. Right. Okay.Adam Whitney (43:14.572)Yeah. Okay.Adam Whitney (43:20.046)First and foremost, you're borrowing money, you're gonna borrow money. You're either gonna borrow from banks, from hard money lenders, or from private money lenders. Like in your life to do real estate, you're going to borrow money eventually, okay? So that's the truth. You are a good person, so you're always gonna wanna be able to pay back. Like everybody wants to pay back.borrowed money. Nobody wants to have debt they didn't pay back, right? Like that's a principle good dude core value. Like we just are all going to do that. So when you're a real estate investor, you must underwrite deals well and buy good deals so that when you do use other people's money, it's pretty easy to pay them back. And in fact, it becomes fun.Dave Morse (43:53.381)for value.Adam Whitney (44:18.176)and exciting for these people to get to make all this extra money with you on your deals. And the money doesn't come out of your personal bank account, which means you feel safe and secure and your wife feels safe and secure because you're not like risking your life savings to continually do deals. Even if you're good at it, your money is your money.Dave Morse (44:43.927)We have a ton of women in the group that they are the primary investors. So their husband can feel safe and secure.Adam Whitney (44:50.774)or their husband, 100%. Yeah, I'm thinking Sarah and like Ramlegan and like Amanda Howell and Lindsay and Anna Jarena and like all these bad ass women investors like who got to make sure their husbands feel good about it. for sure, for sure. And they're like, I don't know if you can do this but these women are freaking amazing and they're crushing it.Dave Morse (45:09.786)Yeah, especially the skeptical, skeptical husbands. Yeah. Okay.Dave Morse (45:19.494)All right, so you gotta buy right, you're bringing equity into that deal.Adam Whitney (45:21.87)You got to buy right. You got to buy right. And you got to the way that we will teach you the way in your, in our community is we're showing you how to price the money in. So part of buying right is pricing the money in. So for example, any deal that I buy, I'm pricing money in at a cost of 15%. Meaning I could pay up to 15 % for the money.I don't usually, I'm paying between eight and 13 % typically, but I'm pricing it in. So that means I can use money from hard money lenders or from Dave or from a personal private lender who we teach you how to raise private money or from other places. And it allows me to get enough liquidity that I can grow my business in a responsible way.while using other people's money. And dude, I'm telling you, like these other investors love making money with you. It's so cool to write them that check at the end. And they're like, sweet, I did nothing and made all this extra money, but I got to be involved in real estate with you. So the big thing is number one, knowing how to analyze the deals correctly andGet your numbers right, like your after repair values, your rehabs, but also pricing in the money. So, so, so, so critical. Price the money in and use hard or private money. And that gives you the amount of liquidity you need to grow your business to the level you want it to be. Because you can only do so much with your own money.Dave Morse (47:06.566)Maybe we could also link, there's a podcast or recording that we put out on just how you qualify for 100 % purchase price and rehab and kind of walk through some of those details just a couple of weeks ago. Maybe we can link that so people can get it. Also, at a certain point, if you are using a little bit of your own money, maybe just because of the draw system and you're floating it,But treating your own money, I got this from Andy, most of the capital raising knowledge I have is from Bill, but this one was from Andy McFarland of treat your own money as hard money. Do you ever use any of your own businesses money just for flow or with any of that and then you treat it as hard money?Adam Whitney (47:50.978)Yeah, but you, yeah, yes, but you charge for it. If I use my money to do a deal in my business, if I use my personal money or my business money to, for a deal, we write a note, a promissory note, and we charge for that money, because the deal has to pay for it. Money is, there is no such thing as free money.Your money is not free money. You think that's a bad mindset. You think I'm using my money so it's not costing me anything. Yes, it is. Because you could be loaning that money to me for 12%.Instead, you're giving it to yourself for 0%. And you think you're making more money on your deal, you're not. It's flawed thinking. All the money has a cost to include yours.Dave Morse (48:50.694)All right. I've got, I've got so many other questions. We'll for another time. I'd like to conclude, conclude with this. Go back to brand new coming in the mastermind, put yourself in that position of maybe you've done four to five deals. You're coming in. You've self-funded in the past. So it's four to five deals and maybe over a couple of years. What should I do my first 30 days in the mastermind? I want to buy by the end of the year.So I'm ready to take action. I'm ready to move. I'm serious about this. What do I do in the first 30 days within the master?Adam Whitney (49:28.342)in terms ofDave Morse (49:29.892)I want to raise some private money because I don't want to sell fun. Adam Whitney said, don't use your own money. I'm not going to do that anymore.Adam Whitney (49:35.874)Yeah, yeah. Okay, so your focus is money. Like you come in the mastermind.Dave Morse (49:40.614)I want to buy, I want to start scaling. I want to go from three or four that I've done. I want to do six or seven this next year. And I want to buy by the end of the year. Maybe it's just one that I want to buy, but I want to make sure I get my first one buying right and funding with let's say private money. What do I do my first 30 days?Adam Whitney (50:00.686)Yeah. Well, if you came in the mastermind, I'm to get you linked up with our a hundred percent financing options. I want you to start using that. So that's going to be like, that's going to be immensely helpful on the cash side. So we'll get you started there. The second part is I'm going to get you started on deal flow. like, I'm going to bring you through my black box method so that you can start generating these leads and, and putting the system in place to where you're picking and choosing what you want to buy.And the reality of it is, is you're like, I only want to do six or seven. You're going to have an opportunity to 20. So you're going to be able to make even better choices because you're to have a lot of deals that you'll be able to do because you put this system in place. And then being with us, you have the liquidity, the ability to buy and like, it's a total game changer. don't think people understand the average house flip makes about $42,000.Like even if you had a job like a W-2, we got a few people who work and flip on the side and you only flipped one house per quarter, one per quarter. So four quarters, obviously that's $168,000 a year extra in income in your family, like on the side. And you not doing it. I'm not talking about you being in the house doing it.None of you should be in the house swinging the hammer unless you really love it. Now we have a few people in our community who are construction guys who do love doing parts of the construction and they still do some parts of it, but it's because they like literally they love it. Like I'm Dan Tidwell, Jeremy Farber, like some of these guys who are good at it, they like, there are parts that they still love to do. They do it, but by and large it's a business. I don'tchange. Dude, I'm gonna admit this on the on the live internet. Like I have very little man skills. Like I can't build stuff. Like we got these light bulbs outside. Like I'm not changing those. Like I'm gonna call my handyman to change them. Like, like I need a big ladder. I don't own a bunch of tools. But because of that, I treat house flipping like a business and I don't treat it like a hobby or like, I'll just go do this and save a few extra bucks. Like, no, IAdam Whitney (52:29.614)Price it in so it can be done by professionals fast. Not by me, who's not a professional and I gotta watch 13 hours of YouTube to do something.Dave Morse (52:34.288)Yeah.Dave Morse (52:40.612)Yeah. So with that, I'm going to keep you back on that first 30 days because let's say I have a W-2 job. My time is limited. You said, okay, black box method. How long does it take to set up black box method?Adam Whitney (52:54.304)I can get you set up and running in less than an hour.Dave Morse (52:57.358)Yeah. Right. that's kind of for every.Adam Whitney (52:59.114)Less than an hour and like literally will have your inbox flooded with deals. Flooded.Dave Morse (53:04.59)So black box method and now I'm going to do that in an evening. How about I got to learn how to analyze my market. We have all those resources and the tools. So analyzing my market. How long does that take?Adam Whitney (53:14.702)You're going to take about probably.60 to 90 minutes studying education-wise inside the group. Like there are some things you should study and then you're gonna spend probably 30 minutes a day perfecting that skill.And looking at those deals, running them through the calculator, analyzing those deals. And then what's cool is you're going to get feedback from me, from Lindsay, from like, we have all these like amazing investors in our community that can help. It's not just me. Like I'm good, but there are people even way better than me in our community, like literally way better than me at certain things. And you get them to help you. Lauren andDave Morse (53:37.944)looking at those deals, analyzing those deals.Dave Morse (53:58.96)Thank you.Adam Whitney (54:05.314)Jonathan Weathers have been doing this for two decades. They are so good at what they do. Justin Pickering's like super down on his systems. He's like not the most experienced guy, but like he can get you squared. We just have so many amazing people who will pour into you along the way. yeah, like you're not on your own. You're getting checks along the way. It's like, I did the work.Dave Morse (54:24.219)That's a validation.Adam Whitney (54:34.328)Somebody check my work and make sure I'm on point. I'm thinking my friend Michelle Gibbs, right? Like, Michelle, I love you, but you are a mess. And she's like, trying to get her deals, trying to get her deals. Like, finally I tell her, dude, just join Seven Figure Flipping. I've been talking to her for like years. She joins and she just has got so much going on in her life. I say, Michelle, stop underwriting.Dave Morse (54:37.317)toAdam Whitney (55:02.488)just start making offers at 60 % of whatever Zilla says. And she does, like she's like, fine, whatever. Like I'll quit trying to figure out underwriting. And she gets her first contract and it falls apart. And by the way, she'd been working on this for years and not seeing traction. And then finally she, you five months or six months into 7FF and like all of these, the family pouring into her, she signs up these three houses and makes her first $30,000.Like that just happened. But she spent other years fumbling around other places.Dave Morse (55:35.097)Yeah, so it's.Adam Whitney (55:41.027)And now look at her like, dude, complete belief change. She's going to be awesome now. Made 30.Dave Morse (55:46.566)You know, so I have, I'm seeing deal flow. I'm getting the reps in. I'm analyzing these deals. I've been through them all. So I know where I should buy. now what, what, what else should I be doing right now? I'm about ready to start making offers.Adam Whitney (56:03.49)That's it. Start making offers.Dave Morse (56:06.212)I've got the offer form that's easy. I'm just filling it in. 60 cents on the dollar or exactly what my numbers are. I'm doing it.Adam Whitney (56:13.388)However, send the person an email and say, I'll buy this house for this much money. That's it.Dave Morse (56:20.44)at this point. So that that I'm doing all that in the first 30 days. Walk me then back through, can I overlay? How do I raise private money? Is that complicated? Is that, I mean, is it super time intensive? How long do like, how much time do I need to allocate to raising private money? You directed me right to some hard money lenders. So you don't even need to raise private money if I don't want to. Yeah.Adam Whitney (56:43.992)Well, you already got set up with hard money. You got set up with hard money in the beginning. Like you need to do that right away. Get in their system, understand what terms you need. So for example, you've never done anything and they're going to give you 90 % of the cost of the house. So you're going to buy the house for a hundred K. They're going to give you 90,000. They're going to fund a hundred percent of your rehab.Dave Morse (56:52.164)Yeah.Adam Whitney (57:11.842)So all you gotta do is get the 10K. So you need to be calling your mom, your grandma, the people in your life that know, and trust you and say, guys, I'm a real estate investor now. I got coaches who are helping me. They're brilliant. They've done thousands, tens of thousands, billions in transactions. They're showing me the way, but I'm gonna need a little bit of cash on my first few deals.Is it something you guys would be interested in?Dave Morse (57:42.661)Or if you've already done a few deals, you can be 100 % right out of the gate with good properties.Adam Whitney (57:49.838)Some of you will get 100 % financing out of the gate, yes. But most of you are gonna need to raise a little gap funding, yes.Dave Morse (57:56.697)Well, Adam, that doesn't sound too complicated to get the first deal going. there other tools and resources to or like what about when I get this first deal under contract? I've already done a couple, but how do I do it even better? Is that that's all there to.Adam Whitney (58:14.094)Everything man, everything. Everything you can need. In this case, we're talking about buying it, flipping it. Like our whole system, this is what makes us better than everybody else for house flippers. Everything from how we get contractors, how we find contractors, how we scope houses, how we do our contractor standards and agreements, how we build out our budgets, how we build out our Gantt charts, which areour project plans for these houses, how we build out our design boards, how we get the best cost on materials, the whole playbook on the rehab, there's nobody better than us. And by the way, we have literal AI coaches that are design, are AI coaches that can bust through and answer almost every single question you would possibly have.immediately based on decades of experience from our community of successful house flippers. And not to mention you can talk to all the people in here right now doing it. I'm doing a flip. I'm doing a flip right now. I haven't seen it yet, but it's going on day flower in Florida. If you're in Florida, you hear this and you want to go see my flip, come over to my office. We'll go look at it together. It'll be the first time I see it too.Dave Morse (59:21.23)Yeah, people are loving the AI code.Dave Morse (59:26.202)Yeah. Yeah.Dave Morse (59:43.686)So cool.Adam Whitney (59:44.29)But guess what? We're gonna make 60 grand.Dave Morse (59:47.642)Yeah. Well, Adam, I...Adam Whitney (59:48.834)Guaranteed, clock work.Dave Morse (59:51.886)I think this will be really helpful for a lot of people, a lot of those investors with the same questions. I've got more questions listed in regards to acquisitions, passive income growth, out of state investing, hiring, avoiding hiring, contractors, financial and time freedom, and impact. So quite a bit of these topics maybe shift from runway to altitude because they're more appropriate in that area. So maybe we can do this again.Adam Whitney (01:00:20.312)Yeah, it'll have to be a second podcast.Dave Morse (01:00:23.815)Sounds good. All right, hey, appreciate your time today. Appreciate your insight. Any final words for people who have done it, but have maybe just kind of floated for two, three years, not sure they want to get serious about this?Adam Whitney (01:00:38.894)Like, listen, are you interested or are you committed? do you think that you're going to continue? If you were, if you were here six months ago and today you're looking at like, should I join 7FF? And you're in the same spot you were six months before. What do you think will change if you don't do something?Dave Morse (01:01:00.55)YouAdam Whitney (01:01:09.292)And maybe it's not joining us. Maybe it's joining something else, which fine, go do it, but take action. We are the best house flipping mastermind in the country. Period. It's not arguable. know all, I got friends in all of them. I've been in all of them. Seven figure flipping is the best. So if you want to build a house flipping business that does, goes deeper.It talks about building wealth, impact and legacy and what we're doing for our kids and our foundation and how we're buying assets that are creating wealth in our families, not just flipping actively, how we're not paying income taxes because we're investing smartly. Like, get in the community today. If nothing changes, nothing changes. So you need to make the change.And that's probably jumping in and being a part of what we're doing. Because that was a change that I made that changed my life. That took me from $100,000 net worth to over a $5 million net worth by getting in this specific room with these people.Dave Morse (01:02:26.381)Over the years, there've been a number of people that I'll talk to and then nothing will change for six months. I'll talk to them six months later or a year later. I'll get a text out of the blue that says, Hey, can we reconnect? don't, don't feel embarrassed about that. Someone wise once said that sometimes you have to go down another road just to know that it's a dead end so that you can have confidence and the decision that you're making now. And that's okay. And when they come in, they're really, they are committed.They're serious and they're ready and they take the action and have great success. So don't feel shy if you were dabbled in 7FF, left for a little bit, went down some other ways and now you're ready. Just come back in, we'll welcome you in.Adam Whitney (01:03:09.272)But let me help you. I want to serve you. My purpose and passion, like I love doing real estate. Every day I do real estate. Like I'm in my office right now, I got a bunch of real estate stuff all over my boards. Like we're doing deals. But my purpose and passion is to serve people, is to enrich people's lives. And I can do that in this community.So let me help you, let me serve you and enrich your life. I would be so honored if you would just allow that to happen. Just join.Dave Morse (01:03:47.142)Awesome. Yeah, we're going be all be together in Tampa, Clearwater, Florida. I keep saying Tampa, but it's Clearwater. I'm excited to see what the difference is, right? It's all together right there on the beach.Adam Whitney (01:03:54.454)It's It's Clear water is on the beach. We're going to be on the beach.Dave Morse (01:04:01.73)Okay. Yeah, it's going to be amazing. Just in a few weeks, we're all going to be together. if you're feel, feel, feel called to be a part of that and be with us, then then jump on board. Hopefully we'll have a link maybe in this podcast. People can jump in and connect with us that way. All right. Thank you, Adam. Appreciate your time today.Adam Whitney (01:04:19.948)Yes, sir. Thank you, Dave. Appreciate you, brother. See you guys on the next one.Dave Morse (01:04:24.038)All right, take care.
