Have you at one time wondered what people who are making a killing in wholesaling are doing right? Are they just lucky? Or do they have special skills and abilities others don’t have? Now you won’t have to wonder anymore.
In today’s special episode, TTP (Talk to People) guru and superstar wholesaler Brent Daniels will shed light on the subject by sharing 6 key skills many superstar wholesalers share.
Get a pen and paper handy, take down notes, and be prepared to take the wholesaling world by storm!
- What non-productive work habits are and why you should avoid them
- Why obsession is key to your wholesaling success
- Why you need to talk to real estate buyers and sellers every single day
- The importance of knowing your lead to closing ratio
- What the most effective way to build your wholesaling business is
- The number of leads you need to replace a deal you’ve closed
- Why follow-ups are essential in wholesaling
- The 3 types of leads
- What are some of the problems you can solve as a wholesaler
- The 4 pre-qualifying conditions
- The importance of knowing the right questions to ask
- Why your body language when on an appointment is critical
- Why making advance agreements is a game changer
- What competency is
- The 2 forms of competency
- Why you need to have a mentor
- Why you need to study different exit strategies
- What are the different personality styles
- Wholesaling Inc – TTP
- Wholesaling Inc Summit 2018
- Brent Daniels’ Youtube Channel
- Wholesaling Inc Podcast
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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Brent Daniels: Hello everybody it’s Brent Daniels here and this is a quick presentation. It is something that I put together literally I stayed up last night. It was just bursting out of me and it was just, I was thinking about all of the conversations that I’ve had with just superstar wholesalers around the country. I’ve had the fortune to be able to be around some of the best of the best of the best around the country and there was six traits, six skills that they all have in common and I wanted to put it together in a quick little presentation here for you. It’s 12 slides. It’ll take no time at all, but I think it’s so important to check this out. So these are the six skills you need to be a superstar wholesaler.
Number 1, let’s jump right into it baby. Number 1: management of your priorities.
Okay, this is not talking about time management. We talk about time management. We hear about time management all the time. We talk about, we hear about and talk about, we don’t have enough time for this or what happened to the day or what you know, I just, you know I work a full time job and I can’t get my foothold in the wholesaling business. I think that is complete BS. I think that it is not about time management. It is about priority management. There is no such thing as time management. What we run into is we run into nonproductive work habits and creative avoidance.
What does that mean? Nonproductive work habits means that we do everything besides the things that are income producing activities. Okay? Or maybe it’s just that you’ve, you’ve worked in a, in a job for so long or you’ve been in a certain business for so long or you’ve been an entrepreneur for so long and you’ve been repeating the same year over year when it comes to income because you just get into the habit of doing the same things, putting the same things into your priority list than the income producing activities.
So this is so key. It is putting the income producing activities as a huge priority in your business in your week, in your day. We have 168 hours in a week, 168 hours. Even if you slept 8 hours a day, 7 days a week, which most of us don’t, right? You still have 112 waking hours to provide value to the marketplace. To provide value to the marketplace for family, friends, relaxing, reading, entertainment. I mean really look at how much time you have, how much time are you out there not producing? How much time are you wasting time? How much time are you in your head thinking too much about the things that you want to do as opposed to taking action on them? So why do we do that? Because we don’t have the certainty that we need. We don’t have the certainty and that certainty builds our beliefs.
When we have the belief that we have so much potential, that’s when we take so much massive action. And you know what happens when you take massive action is you get massive results. That is a fact. It is all a circle, right? It is all about you need those results in your head to make sure that you have the certainty that what you’re doing is going to be productive and successful. So, and it has the potential to change your life or financial life or the freedom that you want in life, whether it be time or finances or whatever. And that leads the potential that leads to the action. So how much time are you wasting? How much time have you really literally looked at it? If I literally followed you around and marked everything that you did on a daily basis, how much of that time do you put into the wholesaling business?
The best of the best, the best superstars in this industry are obsessed. They are obsessed with this business. They’re obsessed about finding the next biggest juiciest deal. They’re obsessed about building their cash buyer database. They’re obsessed about learning how to comp properties and understanding values. They are obsessed with different exit strategies. They’re obsessed with all of this because that’s what leads to income producing activities: be obsessed. That is the priority there. It’s a management of that priority. How much emphasis are you putting on that priority?
Another thought, and this is something that I talk to my students a lot about is, what if I literally was right there beside you and I was handing you $1,000 an hour to be on the phones? What if I handed you $1,000 an hour just to talk to homeowners, both buyers and sellers of real estate? What if I literally gave you $1,000 cash, crisp hundred dollar bills every hour?
I guarantee you, you wouldn’t get off the phone. I guarantee you, you would be on appointments all the time. I guarantee you, you would be doing everything that you could to be in front of real estate sellers and buyers all the time. But I’m telling you that is what the best superstars in the wholesaling business are doing. They’re making over a thousand dollars an hour because they are getting in front of buyers and sellers every single day and work like crazy.
Here’s the last little bullet point. I know that this is, this is really a cheesy PowerPoint. I literally put this thing together myself. Last night I was just… I had to get it out so I put it out so it’s not the best and the most elaborate presentation, but the point that these, these facts still remain the same.
Work like crazy to build up your bank account. Wholesaling is hitting the lottery. Wholesaling is a cash machine. What does that allow you to do? Buy assets, pay off debts, create business systems. Once you get all that going, once you, once you’re paying off all your debts and you’re not worried about your car payment, your mortgage, your student loans, credit cards, all these things; once you’re buying rental properties and getting positive cashflow and building assets; once you build the business systems to be able to run without you every single day, then you get to determine what priorities determine your lifestyle.
Maybe your lifestyle is you love doing those things and you want to keep doing those things. Great! Maybe you want to do something where you’re in the woods or on the beach or whatever it is, most of the time. You have to get to that point where you’re building it up and building it up and building it up and doing that is by putting a huge emphasis on the priorities, the priority of income-producing activities.
Let’s go. Number 2: talk to people.
Now, I’m known as the talk to people guy. I’m known as the cold calling guy. I get it. I’m not going to hit on that as much here. Obviously, I think it’s the most effective way to build your business, but I don’t want to just box myself into that and box you into it right now. What I want to talk about is, no matter what, you must have daily conversations with both buyers and sellers of real estate. Every single day. You need to talk to people. I don’t care where it comes from, okay? But you need to be in conversations all the time. You need to talk to new people every day to build up your pipeline of leads and your database of cash buyers. You need to talk to people every single day.
What is your lead to closing ratio? Basically, all that means is how many leads do you need to get paid? Is it 10? Is it 2? Is it 100? Is it 500? How many leads do you need? You need to know this number because that’ll help you determine how many leads you need to put into your pipeline every single day to reach your goals. You know, lead to closing ratio. And then also with that, when you close a deal, how many new leads do you need to replace that deal? If you think it’s just one, it’s not.
Typically, in a business… let’s say that you have 50 leads to get a deal. Well, once you close that deal, you have to replace it with 50 more leads. It’s never ending. It’s always going. It’s always rolling. It’s always putting into your database, into your lead follow-up. It is so huge. You need to be able to replace the deals that you already close or you’re going to go like this all the time. It needs to be consistent. You need to be on an upward slope, man. You need to be crazy. You need to be, talking to new people every single day to build that up. And they either call you or you call them. It’s up to you.
There’s people making it and superstars around the country that all they do is get incoming calls from radio, from pay-per-click, from bandit signs, from mail. They have people calling into them and they’re great leads and they close a bunch and they make a ton of money. That’s great. And then there’s also a group of crazy people that prospect every day, pick up the phone and be proactive and call the homeowners instead of waiting around for them to call you. It just depends on how you want to build your business. Do want to build it on marketing or prospecting?
You want a combination of it both. You know, in this marketplace, those that are first to the door, win. Those that are only negotiating with the seller and not with multiple other cash buyers, get the best deals. That’s a fact. The only way to do that is to make sure that you’re talking to people every single day. The superstars do this. You can do this.
Fanatical lead follow-up. Fanatical. I see it so many times. It is a huge question with my students or people on Facebook or people reaching out. How do I do the follow-up? How do you do the follow-up? You follow up! You pick up the phone and you call them. You need to be fanatical about it. 80% of your income is going to come from your follow-up. It’s not from people that just one call closes. It’s 80% is going to be follow-up in this business.
This is real estate. This is not people paying $49.99 on Amazon with one click to buy a product. Okay, this is real estate. This is something that’s big and juicy and that’s life changing for people to transact. So 80% of it is follow-up.
Let me ask you this question: how many complaints are you getting from your leads because you follow-up too much? How many complaints? I’ve never had a complaint. Never. Thousands and thousands and thousands of leads in my database. Never got a complaint that me or my acquisition managers had followed-up too much. It’s never happened. But how many deals are you losing because you didn’t follow up in a timely manner? Seriously, how many do you lose because you didn’t follow up? It happens all the time. Things slip through the cracks. You build up this big pile of leads and then you get overwhelmed and you don’t follow-up with them or you’re having a bad day so you don’t want to make those calls when you’re supposed to.
You got to follow-up with these leads. It is so critical. You’re not going to lose deals from excess follow-up. You lose deals from a lack of follow-up. And there is a difference between hot leads, warm leads and looky-loos. There’s only three. There’s three types of leads.
Hot leads want to sell. Now, this is a very controversial subject because a lot of people say you need to talk to the people that need to sell. I think that it’s totally false. I’ve had plenty of experience with people need to sell their property and they don’t. They don’t sign a contract. To sign a contract, they have to want to sell. That’s what, the bells need to be ringing. When you are talking to a prospect and they want to sell, a great question for that is: how long have you been thinking about selling?
It’s a great question because it’s going to determine whether they say, “Well, I really haven’t and I don’t really need to, but I wanted to see what you would give me.” Right? We all go through this, we all experience this. So, do they want to sell? Yes, they want to sell and they’re going to sign a contract in the next seven to ten days. They need to make a decision now. They’re going to sign a purchase contract with somebody. Let’s let it be you. Okay? And they have a problem that you can solve. There’s plenty of people that they want to sell their property. They want to sign a contract in the next seven to ten days, but they want 200% of what the value is. That’s not a problem you can solve. You got to dig deep and find the problems that you can solve. What is the problems that you can solve?
Probate, pre-foreclosure, tired landlord, inheritance, tax default, liens on the property, the condition is totally beat up. It’s a piece of land that’s just been sitting there and they have to pay taxes on it every year and it’s a financial burden. There’s so many different reasons. There’s so many different problems that you can solve out there, but make sure that they have a problem. Make sure they have a problem. If they don’t have a problem, then how can you help them? Our income is based on solving problems. That’s what we do in this business. We’re problem solvers, baby. Every single day we’re out there solving problems, so you’ve got to look out for those.
Warm leads are the same as hot leads, but they have a longer timeline. That’s it. They have a longer timeline. The tenants are in there for the next four months. They can’t make a decision until probate is all the way through. They’ve got to make sure that they clean out the property or whatever and they want to make sure that they get all of their loved one’s valuables out of the property before they close. Any sorts of different things. They’re out of town for a while. They’re going to Europe or wherever. They’re going on a trip. All these different things help extend that timeline.
Okay, so, all warm leads are they’re hot leads. They want to sell. They have a problem, they just have a longer timeline. Hot and warm are the only leads that you need in your business. That’s it. Those are the ones that are in your pipeline to follow-up with.
And then looky-loos are just testing to see how much you’ll give them. That’s all looky-loos are doing. They don’t necessarily have a problem. They don’t necessarily want to sell. They just want to know what you would give them. They’re looking for the deal of a lifetime. Superstars understand that and superstars understand that a trashcan is the best friend. Delete, dead, trashcan, gone, get them out of your pipeline. They will clog up your pipeline and they will distract you from the good, hot and warm leads that are in there. You’ve got to get rid of them. Don’t hang on to them. Having a lot of leads does not mean having a lot of deals. Having a lot of leads just means that you’re not qualifying them enough. You’re not getting them into the trashcan. Get them in to the trashcan.
Let’s be honest, if you did 50. Superstars. The definition I have for a superstar is somebody doing a minimum of 50 deals a year. 50, 100, 150, 200. If you’re doing that many, you only have to talk to 50 to 200 people that’ll do business with you a year? Compared to the amount of homes there are in your marketplace?
Let’s not blow this out of proportion. You don’t need 5,000, 10,000 leads in your pipeline. You need the best leads in your pipeline. You need two a week that are going to sign a contract. Then you’re a superstar. So, get rid of all the fat, cut it out. Get rid of all the people that are just wasting your time and will never do business with you. The trashcan is your friend.
Number 4: they all, superstars have strong pre-qualifying. Right, this literally creates the path you need to go down to determine if this is a deal. How do you know if it’s a deal or if somebody is going to do business with you if you don’t pre-qualify? I see it all the time. This is something that is very common when you’re first in this business, is that you don’t do enough pre-qualifying because you don’t want it to not be a deal. You don’t want it to not be a lead. That’s fine. Let it not be a lead. If they’re never going to do business with you, you need to know that as soon as possible. The only way to do that is to be strong at pre-qualifying.
There’s four pillars of pre-qualifying.
Okay. One: the condition of the house. Okay. Is the property completely remodeled, pristine, beautiful, or is it totally, has it had fire damage, water damage, has the tenant just beat it to hell. I mean, is the roof leaking? I mean, these are the things that we’re looking for and listening for when it comes to the condition of the property.
Two: their timeline to sell. When do they need to sell? If they need to sell in three years, that’s a lot different than if they need to sell in three days. Okay, so the timeline is so important. Okay. And figuring out when they’re going to make a decision, will help you determine the way that you cater your follow-up with these people.
Three: motivation to sell. What is their problem? What is their motivation to sell? Well, my motivation to sell is I got a job somewhere else. My house is in beautiful condition and I need to sell it right away. What do you think their price is going to be? Honestly, in your experience, what do you think their price is going to be? Market value. You’re right, you’re right. You know? So really, what is their motivation? What is their problem that you can solve? You need to figure that out through great pre-qualifying questions.
Number four: what is the price they want? This is the hardest one to get out of homeowners. If you’ve had any experience in this business, you know that getting the price out of them is the hardest part of the pre-qualifying.
Now the best deals, the biggest deals, the fattest deals that you ever get are when they give you the price first, right off the bat. It is, it’s the fact. They say, “You give me $150,000 for this house, it’s yours” and it’s a smoking deal at that price, whatever. So getting the price is important. There’s so many different techniques for getting a price out of somebody. So just, start working and start asking the questions. “Give me a ballpark of what you think the property’s worth. You’ve owned it for a long period of time. What are homes similar to yours in the area selling for? Just give me a range. I’m not going to hold you to it, but how much repairs do you think it needs?” Start working back, start figuring out what price they’re looking for.
It’s so huge with pre-qualifying because they could be, it could be a terrible property. They could need to sell it now in the next couple of days. It can be that they can’t pay the bills on it anymore. They can’t fix it up or it’s going to be. It keeps getting broken into or whatever and they need to sell it, but they want $400,000 it’s worth $200,000 because they think the land is worth 1 million bucks, whatever it is. We run into this all the time. The price is the final glue. That is what pulls this all together. It’s the most important one. It’s the hardest to get, so start working on how to ask the right questions to get the price out of them.
Every seller has a magic number or one on what their property’s worth. What’s your magic number? There’s a ton of different techniques. Just start learning them. And pre-qualifying allows you to customize your offer presentation to them. If you know what their problem is, if you know what their price is, if you know what their timeline is, if you know the condition of the property, you know how to speak to them when you’re talking to them. You know what questions to ask in your offer presentation. And then it keeps you aligned with your priorities.
If you are running around all the time… if your priority is to get as many wholesale deals as you possibly can to help as many sellers as you can, how do you do that if you are on unqualified appointments all the time? When it takes you 30 minutes to drive there, an hour at the house, 20 minutes at the house, half hour at the house, another half hour to come back, 20 minutes to do due diligence. All of a sudden you’ve put three hours into each appointment that could be used to be picking up the phone and doing lead follow-up or getting new deals or taking incoming calls or whatever it is. You got to align with your priorities.
If your priorities is to make as much impact on the marketplace as possible, how can you do that if you’re running around having appointments and doing all this work for people that’ll never do business with you? It doesn’t make sense. It never makes sense. You need the best of the best of the best. Pre-qualify 100% of the properties, 100% of the time. They know what they’re getting into, they know how to cater their presentations, they know what problem it is that they need to solve and they just stay aligned with their priorities. Awesome.
Number five. We’re going quick here because I know that I want to get this all into you as quickly as possible because attention spans now are like hummingbirds floating all over the place.
So, great offer presentation. This is something that isn’t talked about a lot, but having a great offer presentation makes or breaks a deal, makes or breaks whether somebody is going to do business with you. And this happens either over the phone or in person, it doesn’t matter. You start the offer presentation over the phone typically, by doing the pre-qualifying, by asking really good questions, qualifying questions. It’ll help you put together your offer presentation. And great presenters, great wholesalers, superstar wholesalers are experts at asking questions, experts at asking questions. Even when somebody is closed off and they’re not giving a lot of information, they have that knee jerk, they kind of want to stiff arm you a little bit.
Great, great, great superstar wholesalers are great at asking questions and pivoting when they need to pivot with questions. If prospects or homeowners or even cash buyers start throwing out wild, kind of red herring, so to speak, where they’re just go off topic, we direct it back with really great questions. When they want to know the price right now, then we start talking about the condition of the property. We start asking them, how long have they been thinking about selling? We start asking them, when was the last time you, “have you remodeled the kitchen and bathroom in the last five years? You know, it looks like the square footage on Zillow is about 1,356 square feet. Does that sound right? How long have you owned the property?” A lot of great questions to be able to control the conversation and most of it is just listening.
We talk too much. We talk way too much. Ask questions. Shut-up. Easy, right? Try it. Body language, tone of voice and tempo. Your body language when you were on appointment is so critical. If you were there and you’re robust and you’re telling them that you’re the best and you’re you, you buy so many houses and you know what this is worth and everything like that, it doesn’t work.
You need to mirror and match your people that when you’re in front of them. You need to understand the way that they carry themselves and you need to be able to make them comfortable with you physically. It is huge. It is a huge part of communication. So you’ve got to be aware that you need to take the time to learn how to make people feel comfortable using your body language.
Now your tone has to be appropriate. You can’t go in there and be bombastic and be crazy and be like a fireball that just rips through their house and then, sign the contract type of thing. You need to watch your tone, you need to watch your tempo, you need to use your tone of voice appropriately. Depending on personality styles and we’ll get to that, but these are things that you got to focus on.
Certainty and likability. When you are giving the offer presentation, when you are presenting them with the contract or an offer over the phone or whatever it is, you need to be certain on your price and you need to be likable. You can’t just throw it out at them like a robot. Just, this is what it is. This is the price that I can give you. That’s it. Boom. Uh-uh (negative).
You got to be certain on your price and you got to be likable. It is huge. This was taught to me by Todd Toback, this was taught to my team by Todd Toback, who, oh, by the way, has the most ridiculous coaching program out there for elite superstars. So check that out. But, he taught this to us last October and my deals went up from 13,400 to 23,000. Just from this little, little thing of certainty and likability. When you anchor a price low, you need to be certain of that.
You can’t be waffling. You can’t be like, “well you know, I just the, you know, it looks like I could probably give you like $110,000.” Be certain in your pricing and be likable. Likability is, again, goes back to your body language and your tone of voice. It is critical.
Confirm and approve what they are saying. Don’t be in dis alignment with them and disagree with them on whatever they think. You’re not going to change their mind. It’s not your job to change their mind. Confirm what they’re saying and approve it and then ask questions. It is critical. “Yeah, I understand that you need $110,000 for it and I totally get it. I would want that too. But, unfortunately the way that our numbers work, we can only give you $75,000. You know, is that a pri, is that a price that you can live with?” Right.
If-Then statements. This is great. “Bob, if I can get you the price that you want and the conditions of the contract are you know, perfect for you and you understand we can close on time and it’s cash and it’s as is and you don’t have, you can leave all your stuff there, then will you sign the contract?” If-Then questions. If I show up at one o’clock tomorrow, then will you be there? Right? If-Then is so huge it gets a commitment from them. If-Then, start using it, start looking into it, start researching it. It’ll change your life.
Advanced agreements on your offer presentation. That’s just like I just mentioned there before. Advanced agreements. If I come over to the house and what I say makes sense and you feel totally comfortable doing business with me, are you ready to sign the paperwork when I come? Yes. Advanced agreements.
You’re already getting advanced agreements. Are you going to be there when I show up? Are the tenants going to be comfortable getting out of the property before their lease is up? Would they be willing to break that lease? Any advanced agreements that you can, get those advanced agreements on the phone before you go on the appointment. Mostly, it’s about signing the contract. Mostly, it’s about working with you. If when we meet you feel comfortable and confident that I can get this done for you, then are you willing to work with me? Yes. Okay, great. Sounds awesome. Can’t wait to meet you on Thursday at two o’clock. Whatever it is.
And superstars, the best of the best of the best, assume they’re going to get the signed contract. They go into every appointment assuming they’re going to sign it. My acquisition managers carry stacks and stacks and stacks of contracts with them because they just assume that they’re going to get every single one of them signed. And oftentimes they do, because they as-, they already assume that they’re going to sign. They have that assumption in their head. They have that confidence in their head. They have their certainty in their head that they’re going to get the contract signed. Have that. Assume the sale. That’s what superstars do.
Assume that you’re going to get the paperwork signed. And you’re going to see I kind of interchange between contract, paperwork, agreement. I like agreement and paperwork when it comes to working with a seller. It just sounds a lot better than contract, but it really doesn’t matter. It’s up to you. I’m just using contract because I’m speaking to you superstars. So yeah, whatever you want to use there.
Number 6 is competency. The last one is competency and guys, this is where you are made or broken. Make or break. That, I think that’s it. Make or break here, is the competency. And it’s in two forms: people and properties. So let’s go with the properties first cause we’re wholesalers. Okay.
The competency is what is the value of this deal? It is so huge. Is this a deal or is this not a deal? And, how big is the deal? I’m telling you, when I first started out, I left $90,000 on the table selling to other wholesalers cause I didn’t understand the value of the property. $90,000 over the lifetime of my career, it’s easily half a million dollars. I’m still learning. I’m still improving my team. My company is still learning, still progressing, evolving with learning the value of certain properties. There’s so much there. And is this a deal at this price or is it not a deal?
The worst thing that deflates our sales is when we’re first starting out in this business and we sign up a contract, we’re so excited to get there, we’re so excited. We can taste the assignment fee. We can taste the $5,000, $10,000, $15,000, $20,000, $100,000 deal that we have and then it’s just not a deal. So there’s some, there’s some ways to avoid that: mentor under an appraiser, real estate investor or another investor. Lean on people, mentor under them. Be okay with not getting the full amount off the bat as you’re learning. You know what I mean? It’s better than not having any deals or wasting so much time and getting the seller’s expectations up that you can close the deal and get it done. Mentor under somebody. It’s very easy to just call them up. Ask them if you could just pay them a hundred bucks to spend three hours with you or whatever, an hour. You know to learn how people are looking at the masters at valuing property, what they’re looking at. It is so worth your time.
Understand comp properties. To understand how to find and to comp properties, you have to comp a lot of properties. I have the best buyers in Phoenix right now. I can tell them an address and how many bedrooms and bath and they can tell me within 30 seconds if they want that deal or not. For real. Because they comp all day long. They understand value all day long. They understand what their profits need to be. They understand how much it’s going to cost. They understand all these things. That fast. Because they comp all day long. A lot of these guys were like born and made in the fires of the trustee foreclosure auctions, where you had to be able to comp hundreds of properties every single day to see which ones were deals, which ones you wanted to bid on. And because of that they become the best. So just comp a lot of properties.
Okay. Go comp properties and go preview properties. Go see the properties, drive by the properties that you see have closed for certain prices. Go to the open house on the flip that they’re doing and see how long it takes for them to sell at that price and what, what type of fixtures and finishes and what they’ve done to the house to get a home buyer to want to buy it.
Preview properties. It’s huge. Study exit strategies. This is something that is an ongoing excitement for me, is different exit strategies. Do you know that there’s some fix and flippers in your market that will take zero dollars on a flip? Zero dollars profit. Why would they do that flip? Because they need to keep their crews. They need to always churn and churn and churn and they always, they’re responsible for keeping their best crews busy. Did you know that?
I’m sure you knew that. But did you know that they’re willing to get zero or a $1,000 or $2,000? Did you know that? That means they can pay for more because they need properties. If they don’t have properties, then their guys go into the wind when they go into the wind, when they need them, they don’t have them. It’s huge.
What about people that want to just live in the property but have cash? What about foreign buyers that they’ve, they’ve saved up a bunch of money and they just want to come in and they want to buy a house and they want to fix it up themselves or whatever. They pay the most. What about people that want to put it into their rental portfolios? What about people that want to put it into their rental portfolios and then do a lease option with somebody that has bad credit for a much higher price and that’s how they make their money in their business?
There’s a ton. There is a ton. How about people that want to put their money down, buy at cash, and then do seller financing, earn interest on that cash to somebody that can’t get a traditional loan? There is so many different strategies for buyers. Learn them, understand them. That way you can push the values of your deals. You can get bigger deals this way. It’s what we’re doing. It’s successful. This is what superstars do. Look for what they’re buying and what are they paying. Most importantly, what are they paying for them? It’ll start giving you trends. Call up your cash buyers. Have a meeting with them. See what they’re buying. See what their costs are. Understand how much profits they’re looking to get. That leads then to the next one.
What is the average profit margin that investors are looking for to flip? Do you know? Is it 20%? Is it 10%? Is it $10,000? Is it $20,000? Start figuring out how much people are looking for as a minimum in their flips and that’ll help you understand what you can sell these properties for.
How much does it cost to renovate a property? Use broad strokes. Everybody’s costs are different. If my family is all contractors and I can do all the labor for basically free and I can get and just pay for the cost, it’s going to cost me a lot less to fix up a property than it would if somebody else is hiring a crew and a contractor and they’re doing their first flip and it cost them 10%, 20%, 30%, 40%, 50% more to do that flip. This is real life for sure. So use broad strokes.
Typically, what I do is if it’s a 1,000 square feet or below, I say it’s going to cost $25,000, if it’s 1,000 to 1,500, $30,000, 1,500 to 2,000, 35,000 over 2000, $40,000 to $50,000 (square feet).
Does it need a new roof? Okay, that’s five grand on a typical house. Does it need pool resurfacing? Another five grand. Does it need AC? Another five grand. Use broad strokes. You don’t have to be perfect with it. You don’t have to dissect every deal handed over to your cash buyer and say, this is what it should cost you to do it.
Doesn’t make sense. They know their costs. Some are more than others. Some will laugh in your face. Good. Find the ones that won’t. Find the ones that are hungry. Find the ones that have the sweat equity to put into these properties. The more that you’re talking to people, number 2, and building up your cash buyer database, the more that you have the ability to find those buyers that their costs are lower. It’s huge. And now we get to the people side of competency.
What is their personality style? There’s only four: analytical, driver, expressive, amiable. And analytical it’s like an engineer type. It’s all numbers with them. They’re low emotion and they ask questions. That’s the big thing. Okay?
Driver. Drivers like boom, boom, boom, get it done. Their whole thing is like get shit done. Right? That’s their mentality. They’re low emotion and they just tell people a lot of things, right? You can read these… you can start to understand personality types so you know how to communicate the way they want to be communicated with.
Expressives. Expressives just love talking and they love telling you stuff. They’re telling you a bunch and they just talk, talk, talk, talk, talk. High emotion. High emotion.
And amiable. They don’t like talking that much. They’re very emotional and they like asking questions. They want the world to be great. They want it to be cozy and wonderful and they want everybody to be happy.
Okay. Start learning those personality types. It is huge. And understand that 80% of the decisions that home sellers make is to avoid the pain. Is to solve that problem. 80%. 20% is to gain the pleasure, to get that money. You know, they just inherited it or they’ve owned it for a while now they need it, but 80% of it people are, in pain. Solve that pain. Solve that problem. 80% of it. So go with it. Understanding that. You need to be compassionate, you need to have emotional intelligence, you need to understand something called empathy, which basically means putting yourself in their shoes. And develop versatility for all four of them. You should be able to break down the numbers with an analytical, with a fine tooth comb. This is why we’re offering you what we’re offering.
You need to be blunt and this is what we’re going to do. This is how we’re going to do it and this is how much you’re going to make to a buyer. You need to be able to tell them all about the things that are exciting and be able to tell you what how tasteful the remodel is going to be and how incredible it’s going to be for them to not have to worry about this and blah, blah, blah with expressives. And with amiables, you need to tell them about, you need to talk to them about what it’s going to do to the community to have a beautiful house on the street. How a family’s going to live there and start building memories there. How they’re going to be able to really love this house and cherish it and give it the love that it deserves. Versatility. It’s huge.
So, let’s recap. Told you this was going to be quick. It’s, it’s 12 slides. This is crazy.
Manage your priorities. It’s not time management. Talk to people every single day. New people. Build the pipeline. Know how many leads you need to replace a deal that you have. Fanatical lead follow-up. That’s where the money’s made. That is where you are doing business. Strong pre-qualifying. Is this somebody that you should be spending time with? Okay. Is this somebody that that is in align with your priorities? Offer presentation, certainty, likeability, understanding, all of the pre-qualifying that you did before leads up to your ability to have a great presentation. And your competency. Is this a deal or is this not a deal and what are the personality types that you’re dealing with? That’s it. This is the six skills that all superstars have in the wholesaling business. So start developing this. This is for you. This is out here.
I’m pumped. I’m glad you’ve watched this whole thing. Thank you. It’s just awesome. And if you want to learn more, if you want to get into my world, if you want to be in the most proactive program, the most proactive system for finding the best deals, checkout wholesalinginc.com/ttp.
Join my TTP coaching program. I will mentor you, personally. Also, if you want to meet these superstars, if you want to be around them, if you believe that you are the five people that you spend the most time with, then you got to go to the Wholesaling Summit in Asheville, North Carolina, October 15th through the 17th. Click on wholesalingsummit2018.com or type it in, whatever it is, and get registered today. Only 300 seats. It’s already two-thirds full. Get going now. You got to be there and got to surround yourself. Get that network of amazing people.
You can find me on YouTube if you like these videos. You can check me out on YouTube, subscribe to it at Brent Daniels – Real Estate Coach. I would love to just, have you in there and be a part of that. It’s got some interesting different videos that I’m going to be uploading more and more and more, and you can certainly catch the best wholesaling information at the Wholesaling Inc. Podcast. So, check it out. Start working. Start looking at these six skills. Seriously. It is going to take you from wherever you’re at to superstar status. So, hope this was good information to you. I love you guys. Keep going out there and I encourage you to talk to people. See ya.