Today’s special episode is hosted by no less than the phenomenal TTP (Talk to People) coach himself, Brent Daniels. In this episode, he shared and dissected two deals that exhibited the irrefutable power of cold calling.
In the first deal he dissected, he bought the contract for $60, 000 and was able to sell it for $110, 000. That’s a staggering $50, 000 in assignment fee. The second deal he shared was even more profitable. He bought the contract for $90, 000 and was able to sell it for $161, 000. That’s $71, 000 profit without even spending a single cent on marketing!
If you are just starting out and don’t have extra cash to pour into marketing, you can’t afford to miss this episode!
Other key takeaways
- Four pillars to factor in when pre-qualifying deals
- The importance of getting a good real estate attorney
- Why you need to have mentors
- The benefits of reaching out to people and talking to them
Give the cold calling techniques you will learn from this episode a try and just like Brent you might just be a call away from closing a truly rewarding deal.
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
Subscribe to Wholesaling Inc
Brent: … Hello, beautiful Rhino Nation. This is Brent Daniels and on this podcast I am going to break down two case studies. I’m going to pull back everything and show you exactly what happened on two deals that I personally did using cold calling techniques. I’m going to break down the condition of the property, the motivation of the seller, the timeline for him to sell, and obviously the pricing. And remember when you’re pre-qualifying any deal, those are the four pillars of pre-qualifying, okay?
It’s always condition, motivation, timeline, and price. So keep that in your mind as you are having conversations with homeowners and you know, I am the TTP guy, I’m the TTP coach that stands for talk to people. What that means is basically that every single day you proactively pick up your phone and you call a homeowner and see if they would consider an offer on their property. Okay?
This is much different than spending money on marketing. This is much different than just waiting around for somebody to call you. This is proactively going after, being on offense every single day and having incredible conversations with homeowners and seeing if they would consider an offer on their property.
So the first one, the first one was a deal I had picked a certain neighborhood in Phoenix and it was a very hot neighborhood. It was a historic area, but it had just a lot of really small rundown houses on good size lots. So I really targeted this area and the way that I targeted is, I went to my tax assessor website and I put in the criteria, I put in like I could do a little map search, so I picked just that neighborhood. I looked for all of the homeowners that had owned their property since before 2004, okay?
I wanted people that had owned them for a while and typically what I would do if I was in a different neighborhood is I would also filter out any properties that were built after 1990 because I want these properties older. I want these properties beat up, I want them needing some love, okay? But this, that wasn’t the case in this neighborhood. So I hand got the list. I had skipped trace the list, so I had all the phone numbers. Now this is before I even used a dialer. I was literally hand dialing every single phone number in this neighborhood. I had an Excel sheet and I have the number there, I would hand dial it and then I would just make check marks next to it that I called and I just keep going down the line and I keep going down the line and I’d leave messages. And I talked to the home owners and I kept going down the line.
And finally the homeowner of this specific case study picked up the phone. His name was Tommy and he just wanted to sell the property. Okay? And he said that it was in rough shape. He wanted to move on to the reservation with his girlfriend and he just wanted to sell it and be done with it, didn’t have any money to fix it up. And I said, okay, great. And he said, well, I already have an offer on it and I’m going to take it. And I said, well, wait Tommy, would it be worth 15 minutes of your time to have me come over and see if I could beat that offer? And he said yes. Thankfully, he said yes.
And by the way, guys, when I was first making these calls, I was so nervous. Like when a homeowner would answer the phone, my stomach got watery, my hands kind of shook a little bit. I knew what I wanted to say, but it didn’t always come out right and that’s perfectly normal, right? This is something that we all go through it, because here’s the facts. The facts are most of us, maybe some of you out there, but most of us have not spent a lifetime or gone to school to talk to thousands of strangers, okay. Or hundreds of strangers or even dozens of strangers, right? You know, not a lot of us have had that training or that experience, and it’s still, you know, as I was just making these cold calls, I hadn’t built up that cumulative experience. That really gives you the confidence to be able to do it. But I’m telling you, I knew that everything that I wanted was on the other side of being uncomfortable.
I know if I was uncomfortable, so would everybody else be so nobody else was going to do this. So I stuck to it. I dedicated myself to making sure that I just made that call and I just focus. It’s really important that you just focus on that one call that you’re making right then in there. It’s interesting, I don’t know if you’re a football fan, but there’s a coach for the New England Patriots named Bill Belichick and his philosophy, I saw him on an interview, and his philosophy is to teach his teams to just do your job for that one play. Okay? Just do your job for that one play and get it done right. And then obviously you do that play after play after play, builds a successful team, builds a successful season, builds champions. Just think about that when you’re making a bunch of calls, when you see that you want to make 15, 20, 30, 50, 100, 1000 calls, just focus on that one call at a time. It’s so important okay.
So anyway, so I’m talking to Tommy, I’m feeling nervous. He said that he was going to take an offer. I asked, would it be worth 15 minutes of his time to see if I can get him more money for his house? He said yes. So I immediately went over there okay. Because something that I know is, and by the way, I didn’t pre-qualify this, this was just luck. Trust me, this is, it has gone against me more times than not that I didn’t pre-qualify. I go on an appointment and they have no interest in selling or they’re way too high in price. So this is before I knew anything, but I got lucky on this one. So I ran over to his house and he was out there. He was smoking a cigarette. The house was totally destroyed. It was a tiny little house.
It was, it had a lot of potential. And I said, well Tommy, you know what, you know to see if I can beat the offer that you have, what’s the offer? And he’s like, well the contract’s right over there. It’s just been sitting there for a couple of weeks. It’s been sitting there a couple of weeks. Okay, what does that tell you? If you’re listening to this, if you’re driving, if you’re listening to the, at the gym or in, in your office, what do you think that that means? Does that mean that, that buyer, that wholesaler, that investor was really motivated, really pushing to get the contract signed? No, they absolutely weren’t. There’s no way that you’re leaving a contract on a property like that after the owners said that they’re more than likely going to take it, that you just let it just lay and die on the vine. There’s no way. I’m telling you, do not do that.
So I saw the contract, it said $55,000 and I was like, wow. And I said, okay, Tommy, I’ll tell you what, I can give you $60,000. If I can give you $60,000 would you sign the contract today? And he said, um well, I really want to think about it over the weekend. And I said, okay, I’ll tell you what, and this was a kind of a tactic that I had learned from some sales coaching that I got when I was a traditional real estate agent. I said, I’ll tell you what, why don’t you sign the contract while I am here so that I can go over all the terms. You sign the contract, I’m going to leave this contract here, okay? And in the morning I’m going to give you a call and if you want me to come pick up the contract, I’ll pick up the contract. If you don’t, you can tear it up.
You have the only copy, you’re not committed to me. Is that fair enough? And he said, well, okay, you know, I guess there’s no risk in that. Right? So he signed the contract, he kept it with them. I put it in a little binder, a little, you know, Manila folder type of thing. And then I called him the next day. No answer, oh no. Oh my gosh. I called him the next day. No answer. I had called him several times each day. Right? No answer, no answer. Didn’t have a voicemail set up. I don’t know if you’ve ever, you know, been frustrated by that. When you keep calling somebody and they ghosted on you and you’re trying to get ahold of them and they don’t even have a voicemail and they’re not returning their texts because it’s just a land line and there’s just no way to get ahold of them.
So all these nervousness and all this, Oh my gosh, this would be such a great deal. And I was getting so frustrated and so frustrated and on Saturday I remember I was sitting at home with my wife and we were just messing around with our son and I got a call and it was Tommy’s number. I got a call from him and he called and he said, Hey, I’m sorry I was working double shifts and somebody called out and I know that you were calling me, but you know, anyway, why don’t you come pick up your contract? And I was like, Oh my gosh, yes! Yeah! I picked up my son, I grabbed my wife. It was just like so exciting. I was like, Oh my gosh. So I get the contract, I’m so excited. I send it immediately to title. They’re not even open on the weekend, but I sent it to him anyway.
I just went, I was just so ecstatic lightning bolts were shooting out of my fingertips. Right. It was just like, this is happening. Like this works. If I just talk to people, this works. If I just call them up, this works. And I knew it was a great deal. I mean, I knew it was a spectacular deal. I didn’t know how much I could sell it for, but I had a pretty good idea and I was just so excited by it. And so the next week it was obviously my opportunity to get this contract in front of some buyers and I didn’t know very many people. My cash buyer list was like five deep and they all wanted it and it got bid up to $110,000 so this is $50,000 assignment fee. Okay. This was incredible. And I was just like, Oh my gosh. I remember standing when I had assigned the right to the contract for $50,000 I had never experienced that kind of commission or income in one, like just in one week, one month, one day ever.
Right. And I remember I was standing in the kitchen and I almost wanted to cry. Like it was overwhelming and my wife was like, what is wrong with you? Because you know, I’m, I’m usually a, I’m an expressive personality, so I’m upbeat, I’m, you know, positive. I’m trying to, you know, I’m always singing or doing whatever. Right. And I was just kind of like a shell of myself. I was just so wrapped up in the emotions of this, you know? And sometimes this happens when you get these incredible big, big rushes of income or success or whatever it is. She was like, what’s wrong with you? And I was like, I don’t know if, if I can do this again, like what if I can’t be able to do this again? What if this is like the defining deal of my career? What if this is the best that I can do?
And she’s like, knock it off. You know, she’s just like stop it. And instantly it snapped me out of it and I was like, Oh, okay. Yeah, that’s being silly. So anyway, in that transaction, the title company gives me a call and they’re like, ah, we have a problem. The deed was recorded wrong. So Tommy inherited this property from his grandpa and when he recorded it, he didn’t record it right. And so there’s some big title issues and Tommy comes, I come to find out it has four sisters and a mom and they all don’t like Tommy. They don’t want him to make any money on the property so they won’t sign off. So I got an attorney, he got all the paperwork figured out. And by the way, if you don’t have a good real estate attorney, get one now, okay, get one now you’re going to need it for these type of situations.
So all five of them won’t sign, have to sign this document to give Tommy clear title or Tommy has to go through almost like a probate situation that could take 90 days. He would get the property eventually, but in 90 days so much could happen. So now I have to get on the phone and I’m calling and I’m talking to the sister, the eldest sister, and she says, I don’t want to sign anything, I’m not giving him anything. And I said, wait, wait, wait. Here’s the deal. Like the attorney said that it is rightfully his, like the paperwork is correct. It just wasn’t filed right. So he’s going to go through a process. It’s going to take them 90 days and he’s going to get the property. I said, if I can give you guys each $1,000 if I give you $5,000 would you sign this document?
And do you know what? They did. And I’m telling you, when I went over there and met with them at their house, it was just a Tommy bashing session. But you know what? They signed, everything got done and it was the biggest check I had ever received ever. I was off and running then. You couldn’t stop me picking up the phone. You couldn’t stop me dialing the next person. You couldn’t stop me from waking up just so energized and thinking just one call away. Seriously. Just one call away. I am one phone call away from finding a huge deal or any deal or something. Like I knew that if I talk to people every single day, I would get a deal. I would provide very well for my family. I would be able to build a business around this. I’d be able to train people how to do this.
I would be able to really make an impact on the community, especially when it came to, you know, fixing up these properties and selling to investors that do fantastic remodels and tasteful remodels in the community. It just made me feel so alive and it’s carried on until now. It’s 2018, this was 2015 it’s carried on until now. I mean, it is just, this business is so exciting. If you’re taking action every day. Everybody talks about fight or flight. In situations, in uncomfortable situations it’s fight or flight. Remember there’s also the third option, which is to freeze. Okay. And a lot of people, I’ve been in it in my life when I had lost everything in the downturn, I completely froze. But you know what? I had that pilot light inside of me. I had that pilot light that was flickering and I knew that I needed to pour some gasoline on it.
I needed to find mentors. I need to be around people doing incredible things. I knew that I needed to talk to people, everything. I had to be proactive because I didn’t have a marketing budget. I had no marketing budget. I mean, pulling the data and getting the numbers and calling them cost me nothing. I mean, it was, it was so incredible that out of the ether, out of the, just the ozone, out of, out of whatever, you know, this deal came because I took action and I picked up the phone and I made calls and I left messages and I went through it and it was unbelievable. I mean, I’m telling you guys, it is so powerful when you have the opportunity to determine and take responsibility to determine how much money you’re going to make, how fast you’re going to make it, and how you’re going to achieve your real estate dreams.
If you have that pilot light inside you, fire that baby up. I am telling you, fire it up. Right now! Get it going. Be proactive. You can go out right now and find properties that are run down. You can get their phone numbers, you could pick up the phone and you can have an incredible conversation with homeowners. You could do that. So do it. I am encouraging you. I’m telling you, my TTP family, the TTP family, the students that I teach in my coaching program are talking to people every single day and getting opportunities. They’re surrounded by people that are doing the same thing. They’re getting all that I have to pour into them. It is incredible. It is just, it’s an incredible experience. Okay.
So the second property I want to talk about, and this one will be a little bit more brief, so it’s not too long of a podcast, but we had called up, one of my cold calls, this is maybe a year later when I started to hire some cold callers and one of my cold callers called up a gentleman and just had a really good conversation with him. Asked him, you know, would you consider an offer on your property there? And he said, yes I would. And he said, well what do you think you would take for it? And he said, well you tell me, I really don’t know.
So what we do in situations is we try to get the price out of them. If we can’t, then what we’ll do is we’ll just take a shot across the bow and throw a low ball offer at them. Typically, it’s about 60 to 66% of the Zillow price. Now, that’s not always accurate in every market. So just be careful with that. But the property was worth, I don’t know, 190-185-190 and so my cold caller said, you know what, we’re buying property similar to yours for about $120,000 and the gentleman goes, no, no, that’s not going to do it, son. That’s just way too much for this property. What? That was, it’s way to, 120 is way too much for the property.
Okay, great. So you know what, what would you consider? And he thought about it and he said, you know what, I’ll tell you what, it’s been a rental for me for a while. I’ve depreciated it, I’ve got the good out of it. You pay me what I bought it for in 1992 and it’s yours. And so my guy asked, okay, so what did you buy it for in 1992? He said $90,000. He literally went $30,000 under what we had just verbally offered him and my, my prospector asked the all important question, if I can bring you a contract for $90,000 will you sign it? And he said, yep.
We met him the next morning. He signed up the contract. We sold it and made $71,000. Are you kidding me? What an incredible, that was one conversation. That was just one conversation. If he had not picked up the phone that day and made those calls, we wouldn’t have got that. Who knows if he would have ever answered. It was just being in that space, the more action you take, the luckier you get.
I am telling you, the more opportunities you get, the more action you take. That’s happened to us a few times when people have reduced their price. I mean, it’s not a standard operating deal there. That’s not very common, but it does happen. It’s amazing what happens when you just reach out to people, have a kindness in your heart, be kind, be optimistic on the phone, reach out to them and have a really, really excellent conversation.
I hope that these two breakdowns of these properties really give you that fire to go out there and be proactive. And if you are interested, if you’re interested in the absolute best training for this, if you’re interested in joining the most proactive family of investors, the TTP family. If you’re interested in getting top level mentorship, I mean I’m talking just pouring into you, then you need to go to www.wholesalinginc.com/TTP. That’s www.wholesalinginc.com/TTP. Sign up for a call, have a conversation with us. If it’s right for you, if it’s right for us, you’re going to join the most proactive family in real estate investing period and I’m telling you, your whole business is going to explode.
You are going to do absolutely incredible things in your community and your real estate dreams are going to be reality. I’m telling you it happened for me. It’ll happen for you. Go to the website. Sign up for it, it’ll take you a couple minutes and we will be talking soon. Until the next time.