5 Tips for Exploding Your Wholesaling Business!
Today Tom reveals 5 tips that will help you absolutely explode your Wholesaling business. Today’s episode centers all around cash buyers.
As Wholesalers, we are always focusing on finding motivated sellers. So obviously, we know what a motivated seller is, but is there such a thing as a motivated cash buyer?
Someone who needs to buy YOUR deals…quickly?
We’ll that’s what Tom is going to share today and you are gonna love it. Oh and be sure to listen to the entire episode for a VERY special offer from Tom and Cody!!
You don’t want to miss out on this! Gobble gobble!
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Tom Krol: This is Tom Krol. Welcome to the no fluff, no BS zone. I am going to be sharing with you today a rock solid piece of advice that you must be aware of as a wholesaler. If you don’t know what wholesaling houses is, it is very simple. It’s a way to find the most discounted properties in your territory. You search for people who are wanting to sell their home quickly for cash. You put that home under an assignable purchase agreement and you sell the contract, not the house. It’s very simple. Anyone can do it, but it’s not easy. It requires a ton of hard work, grit, determination, and perseverance. Bam. I love it. What I’m going to share with you today is literally the difference maker between the people, the wholesalers who have a business that is a servant to them, and the people who have a job where they’re wholesaling houses, but they have a roller coaster income, a roller coaster deal flow.
So these are the people who are constantly working. These are the people who if they don’t show up to wholesale, their business stops producing income. That’s really the best way to know whether or not you have a business or you have a job, is if you ask yourself this question. If you stop working today, how long will your business continue to run without you? If the answer is less than a year, guess what? You don’t have a business. You have a job and you’re a servant to that job. So what you’ve done essentially is quit your job to get into another job. It’s better to have a business. It’s better to have a business that is a servant to you. What I’m going to talk about today is my favorite subject and something that you must be aware of. This is the difference maker.
If there’s a secret sauce to wholesaling, this is it. What is this secret sauce? It’s motivated cash buyers. I’m going to say that again. Motivated cash buyers, motivated cash buyers. Everybody is out there talking about motivated sellers, motivated sellers. Here is the secret sauce guys. You must have motivated cash buyers. Let me take you through a quick scenario to explain how important this is. I want you to pretend that every time you are trying to wholesale a house, your seller was a wealthy, seasoned real estate investor, right? So let’s pretend for a moment. I want to go down a journey with you and let’s pretend for a moment that every seller you met to wholesale their home was a wealthy, experienced real estate investor. How much money do you think you would make on assignments if all of your sellers they were motivated to sell her home, but they were very wealthy, they had tons of resources, tons of knowledge about the real estate market, and they were experienced real estate investors?
How much money do you think you’d make per assignment? Very little. Well, here is a little golden nugget. The same exact example is true on the buy side of your wholesaling business. Why would you sell your properties to experienced, knowledgeable, proven, wealthy real estate investors, rehabbers who’ve rehabbed 20 homes a year for the last 20 years, landlords who are the largest landlords in town? Why do you think they’re so wealthy? Here is a sure fire way to know that you’re selling your properties at the lowest assignment fee possible. When your buyers love you, when they slap you on the back and give you an attaboy and they say, you’re doing a great job, I get all my best deals from you. All of your red flags should be going up right at that moment.
Do not be a CBE, CBE. Who knows what a CBE is? Come on. You ready? CBE cash buyer employee. Those wealthy rehabbers and landlords, they love you, right? You think, oh this is fantastic. These are proven buyers. I can count on them. They understand what an assignment is. Who cares? Who cares? The best buyers, the most profitable buyers, the motivated cash buyers are the buyers who number one, it’s usually their first investment. They either have just recently come into some money or they’re about to borrow some money from a family member to do their first real estate transaction, whether it’s a rehab deal or they’re a landlord. That’s one of the best ways to know that you have a great cash buyer on your hands. What else can you look for? Number two is they usually will buy through a real estate agent because they’re unfamiliar with the process and they don’t know how to find good deals on their own.
Now, why is this important? When you bring your deal to an experienced rehabber or landlord, they are going to look at recently closed deals to get an idea of how much they want to offer you for the property. When you bring your deal to a motivated cash buyer, they are going to talk to their agent and their real estate agent is going to look at the active listings, not the closed listings, and they’re going to say, well Bob and Sally new cash buyer, all of the other homes for sale are 200,000. So if you can get this one for 195 that’s a deal. So they look for deals slightly below active listings, where your experienced buyers will look at the recently closed deals and determine a price. I am telling you right now if you want to explode your wholesaling business, working with motivated cash buyers is just as or even more important than working with motivated sellers. It’s absolutely crucial.
This is why our team and our clients are able to get two, three, four, and five times the average assignment fees. If you’re ever unsure of this, just remember always think about it from the side of a motivated seller. You wouldn’t want your motivated seller to be an experienced, knowledgeable, wealthy real estate investor. The same is true for your cash buyer list. Here’s some quick tips and tricks to really solve this problem in your business. Number one, increase your cash buyer list today. Do it today, tomorrow, next week, next month, and next year. You should constantly be building your cash buyer list through marketing and networking. Number two, get real estate agents on your list. The highest paying cash buyers buy through real estate agents. Get real estate agents on your list. Number three, make sure that when you have a deal, no one finds out about your deal until everyone finds out about your deal.
Don’t give special treatment to one, two, or a handful of cash buyers. It’s not fair. You’re not operating your business with total integrity if you do that. You’re wasting people’s time. Do not do that. Everyone finds out about your deal at the same time. Those people who have been longterm cash buyers, they’re going to pretend to get angry at you when you change your system and they’re going to pretend to be upset with you. I’m telling you right now, cash buyers are a dime a dozen. You need to leverage your deals for as much money as possible.
I don’t know if this is number four or number five, but when you get a deal, slow down. Slow down, do not adopt the anxiety of the seller to sell the deal quickly. Once the deal is under contract, take your time, be methodical. Finally make sure you go for highest and best price. This is so important. I literally just had a deal that was going to be assigned for $8,000. I pulled the deal from the acquisition manager and we put it out to bid. We took that assignment agreement and we made that assignment agreement $32,000 from 8,000 to 2000. This just happened to me. It happens to my clients all the time. So it’s been great spending another episode with you guys and I will see you very soon.
Speaker 1: Okay. We hope you enjoyed that episode. Now, Tom and Cody have a very special offer for you. As you know Tom and Cody are not only great wholesalers, but they are also incredible mentors and are probably responsible for bringing more new wholesalers to their first hundred thousand dollars than anybody else out there. So with the holidays here, Tom and Cody want to offer you a special gift from now until November 30th, 2016 anyone that joins Tom and Cody’s wholesaling mentoring program will receive $500 off the enrollment fee. Yes, that is $500 off. Now in order to claim that $500 discount, just go to investorgrit.com, that is investorgrit.com. Click on the coaching tab, fill out the form, and be as detailed as you can so they have a really great idea of where you are on your wholesaling journey and what you’re looking to achieve with wholesaling. Either Tom or Cody or someone else from our team will call you at the time that you choose.
When you get on the phone, just say the words wholesaling turkey. Yes, wholesaling turkey and you will immediately get $500 off the enrollment price if you are accepted into the tribe. If for one reason or another you are not chosen, we ask that you please don’t take it personally. Tom and Cody’s program is only about getting you results. It’s not about education, it’s not about the latest trends in wholesaling. It’s not about websites and LLCs and theory. It is all about step-by-step instruction and getting you to step outside your comfort zone to take massive action. That is not for everyone, but that is the only way that you will succeed with wholesaling. So again, go to investorgrit.com. That is investorgrit.com. Click on the coaching tab, fill out the form, and book a call, and don’t forget to say the words wholesaling turkey. That is wholesaling turkey to receive your $500 discount off the price of tuition.
So if you are ready to build a wholesaling business or scale your existing business, contact us as soon as possible. Don’t forget, this offer expires on November 30th, 2016. So you don’t have a whole lot of time, so don’t wait too long. You could sink that $500 right back into your marketing and start getting deals right out of the gate. So see you next time.