For those who are new to the lucrative world of wholesaling, closing 2 deals a month and earning as much as $30, 000 can seem like a lot. And it is. However, that’s barely scratching the wholesaling iceberg.
If truth be told, many rockstar wholesalers are closing as many as 10 deals and earning as much as $100, 000 (or more!) each month. The good news? You can too! So what exactly do you need to do to take your wholesaling business to the next level? Start by tracking your numbers.
While tracking your numbers is not exactly rocket science, not many are aware it goes beyond knowing how much money you are making and how much you are spending and keeping.
In this episode, TTP guru and rockstar wholesaler Brett Daniels will teach you how you should go about tracking your numbers and why it’s pivotal in the success of your wholesaling business.
If you are ready to take your business to the next level, this is one episode you shouldn’t miss!
- The things you need to track
- Why it’s crucial to know how much you are being paid for your time
- What the 3 types of leads are
- Question you need to ask to gauge if homeowners really want to sell their property
- The importance of pre-qualifying
- What the 4 pillars of pre-qualifying are
- The importance of knowing how much you are earning
- Why many people don’t track their numbers
- Wholesaling – TTP
- Batch Skip Tracing – Use coupon code BRENT
- Brent Daniels’ Youtube Channel
- Wholesaling Summit 2018
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
Speaker 2: Here we go Rhino nation it is Brent Daniels and it is just me on this podcast today speaking to you. I am talking to all of you guys out there, everybody that is at, you know, maybe one deal a month or one to two deals a month and you’re looking for the next step, the next evolution, the next stage of evolution that you need to go through as a wholesale business to get to the point where you’re consistently closing five, six, ten deals a month. You know where you’re in that space where we all want to be, where you know you’re making that $30, $40, $100 grand a month.
And the number one thing, the number one step you need to take as a business owner, as a professional wholesaler, is you absolutely have to track your numbers. It sounds, Brent, that sounds so elementary. Of course I got to track my numbers. I mean, I know how much money I’m making and I know how much I’m spending and I know how much I’m keeping. No, no, no, no, no, no, no. It goes way, way, way, way more deeper than them. Because here is the absolute facts, the fastest way for you to learn who you really are as a real estate wholesaler, your strengths, your weaknesses, your level of efficiency and what it will take for you to reach your goals is to track your numbers. It is the absolute fact, the only way to become better is to track our numbers. How do you know where you are lacking? How do you know what your biggest strengths are if you are not tracking your numbers on a weekly basis? And that’s what I’m saying, weekly basis. Okay. And I don’t mean like not strong. I mean weekly basis, you know, four times a month you need to be like just digging into your numbers.
So what do I mean by that? What does that mean? Well what am I supposed to track, Brent? Well, it’s very easy. Write these down. If you’re driving, pull over. If you’re listening to it at the gym, just replay this again and again and again until you write all these down. Cause I am telling you this is the bridge. This is the bridge that is going to take you from doing a couple deals a month to doing a dozen deals a month. You know what I mean? This is what’s going to really make your business explode because then you’re going to know where to put your efforts. You’re going to know where to put your efforts, where your weaknesses are. It’s going to peel back everything that you think about your business and look at it just bare and in the light and you get a look at it and say, Oh my gosh, I need to do this more or I need to do this less.
I mean, there’s so many different circumstances that we’re talking about here, so let’s, let’s take a deep dive into the numbers that I want you to track. Okay, number one, how many new contacts did you have with homeowners? Okay, how many new homeowners called you? How many new homeowners did you call? We all know that TTP or cold calling is going to get you the most opportunities to be in front of distressed homeowners. That has been proven time and time again, but how many people are you coming in now or are new contacts that you’re having every single day because our business runs on new contacts every single day. If you take a day off, it’s going to affect your bottom line 90 days from today. That’s just the way it works. That’s the sales cycle in this business.
So the people that you talk to today, well, what does that mean, Brent? I mean, can’t I get deals closed in like two weeks or a month? You know when I’m wholesaling, of course you can, but typically what happens is you make a contact with somebody, you’ve got to pre-qualify them, you’ve got to go through the process, you’ve got to see when they want to close. You’ve got to work with them a little bit and it’s takes about 90 days from that time to you actually getting money in your account, actually getting a deposit or a big check, they take a picture of post it to Facebook, let everybody know how awesome you are. Right? It usually takes about 90 days, but how many new contacts are you having every day? Are you using a marketing channel that’s not getting you enough at-bats or using a Pay-per-click or Direct Mail or something and you’re in a market where it’s just not giving you the amount of calls that you need to be successful? You need to track that.
Okay, if you are doing TTP or cold calling, how many contacts do you need to get a lead? How many leads turn into a deal? I mean these are all things to follow, but let me keep it straight here. Number one is how many contacts, how many new owner contexts did you have? Number two, if you are going to use a proactive approach for getting deals, which means one of two things, either you’re going to the doors and you’re door knocking, or two, you’re going to pick up the phone and you’re going to cold call them, what we like to call in the Rhino tribe, TTP which stands for talk to people. How much did you prospect? How much time did you spend prospecting? Because it’s very, very important to understand how much time you are being proactive.
Why does that matter? Well, that matters because if it takes you three hours and you get a deal and that deal pays you 10 grand, guess how much you made per hour. You made $3,333 dollars and 33 cents an hour. If you get a $10,000 deal from three hours of calling, right? Absolutely. So you need to know how much am I getting paid for my time because it mentally puts a sliver in your brain and lets you understand that everything, everything financially that I want in my life can come down to picking up the phone and making those calls. Everything can come from going out into the neighborhoods and knocking on doors and getting in front of homeowners. Now let’s definitely door knocking is definitely a less, I mean you literally don’t need anything, there’s no barrier to entry, you can go out right now and do it. There’s no excuse to not get deals right now guys, there’s no excuse. It’s all taking action.
But if you want to go out and knock on doors, go for it. There’s no process to that. If you want to get a little bit more sophisticated than definitely do the cold calling because it’s going to get you a lot more context, but how much did you prospect and break it down? How many hours did you actually prospect to get a deal and how much was that deal worth divided by how many hours you are calling. You will be shocked in the TTP program. I literally have people that are doing $1,000, $2,000, $3,000 thousand dollars an hour. It’s incredible.
Anyway, moving on. How many leads did you get? Number three. How many leads did you get this week? How many leads? Because you need to know how many of the people that you were talking to are actual leads. Now remember when we’re breaking down a lead, we always break in my business and what I coach is you break it down into three types. There’s only three types of leads. Hot, warm, and looky loos. Okay, hot, these are people that are going to sign a contract with somebody in the next seven to 10 days. They’re going to sign a contract. They’re ready to sell now, their timeline is short. They want to sell.
A warm lead is somebody that wants to sell, but their timelines longer. Okay? They’ve just got a longer timeline. Whether it’s because they have a tenant in there, whether they’re cleaning it out, whether they’re going through a probate, whether there’s some sticky situation in the courts, whatever it is, there’s a ton of different reasons why, you know, maybe they’re moving to a different place and their home, won’t be ready for a certain amount of time, but there’s always a reason why it takes a little bit longer for the warm leads.
And then the looky loos. These are people that just want to know what you’re going to offer on their house. These are people that have no interest and they don’t want to sell. Remember, ask the question, how long have you been thinking about selling? When you asked that question, you’re going to find out real quickly if these people want to sell their property. Now, they might be coy, they might be standoffish. They might not tell you exactly what you’re wanting to know right off the bat, but you’re going to be able to get a sense of do they actually want to sell or are they just looking to see if somebody will give them a ridiculous price or give them retail without having to pay real estate commissions or you know, are they just wanting to see what their house is worth so they have a mental idea.
You know, there’s a lot of different reasons why people say yes or call you up from a marketing or say yes when you ask them if they would consider an offer in their property. So how many leads, how many offers did you make? Are you making an offer on every single deal? Are you sending them a written offer? You should. In this market baby, oh yeah, you absolutely should be sending an offer to absolutely everybody make that standard business practice. But how many offers did you actually make? Like talking to these people either face to face or on the phone, how many offers did you make? Is it enough? Are you making too many offers? Are you making not enough offers? You know how many of the offers are getting accepted? You know, this is going to tell you a lot about the way that you’re valuing the properties.
Remember in, especially if you’re new to this podcast, if you’re new to wholesaling, the number one most difficult thing in this business is to know if it’s a deal or not a deal. If it’s a deal or not a deal. The second hardest thing is how big is the deal. And all these things come with experience. All these things come with getting out there and getting, you know, comping a lot of property and being around, making a lot of offers and understanding what buyers are wanting to sell things at.
Of course we can blanket and say get it as low as possible and I 100 percent confirm that that works. Absolutely. Get every deal as low as possible, but you need to know if it’s a deal or not a deal and how big of a deal it is because when you’re first starting out, you’re going to leave money on the table. I’m just telling you, you’re going to leave meat on the bone and some of these things because you’re going to think that 20 grand is a huge payday, but somebody’s going to make 20 on top of that because they just know the buyers better, they have a bigger cash buyer database, whatever it is. Don’t be discouraged by that. Just keep learning. Really understand. And the only way to do that is make a lot of offers, make a lot of offers and understand deal or no deal. And how big is the deal? How many deals did you sign up? Did you go on a lot of presentations?
Like if my students, if I have a student call me up and said, I’ve been on 10 appointments and I locked up two deals, well I know a couple of different things right off the bat, right? Because they told me their numbers because they track their numbers. One, they’re only getting a 20% closing ratio, so it has to be one of two things. One, they’re terrible in front of people and they need to work on their presentation. Or two, they’re not pre-qualifying hard enough before they go on those appointments. Remember, we pre-qualified based on the condition of the property, the timeline to sell, the motivation to sell, and the price that they want. Okay. That’s the four pillars of prequal. You can watch every YouTube video on wholesaling around. Those are really what it comes down to. I mean, everybody has their own spin on it and whatever else. And here’s your 17 point, whatever. It doesn’t matter. Four things. There’s only four pillars. Condition of the property, timeline to sell, motivation to sell, and what price do they want.
So how many did you sign up? How many buyers did you talk to? How many cash buyers did you add to your database? Honestly, how many? Do you only have like one or two in there? Do you have a handful, five or ten or do you have 10,000 to 20,000? And how many did you talk to? How many, how many of them were just chomping at the bit for your deals? You’ve got to track it. It’s huge. I mean on the buyer side that is unmistakably huge. How many assignments did you make? How many assignments? How many did you actually assign out of the properties that you put under contract how many did you actually assign? Track it. You know, if you’re putting a bunch of properties under contract, but you’re not assigning them, then obviously you have some issues with valuations or going back to it, is it a deal or not a deal? And how big of a deal is it? So how many assignments did you make?
How many closings did you have? Whew, how many closings? That’s the, oh man, that’s the best day, right? You get an email, you get a call from either the closing attorney or the title company and says, this deal is funded and recorded, oh, where should we send the check? I mean, Oh my gosh, it is such an awesome day. I want those days every single day. That’s what we push for to have one of those days every single day. It’s incredible. And how much did you earn? How much did you earn? How much you earn this month? Like really earn, like how much did you put into your bank account? How much did that cost you to make, right? What’s your net? What goes home to you and your family? What goes home, what gets reinvested in your business, what gets spent on maybe hiring people? You know what I mean? Like how much did you actually earn? Because if you know how much you’re earning and how much is coming in, you can start forecasting how you can build your business.
You can start putting together the pieces and the people and the marketing channels and the strategy to be able to grow and grow and grow and grow and grow and provide as much value as possible to the marketplace. But you need to know how much you earn and you know it’s, it’s really interesting. Do you know why? And that’s it guys. That’s the list. That’s the list. How many contacts, how much did you prospect? How many leads did you get? How many offers did you make? How many deals did you sign up? How many buyers did you talk to? How many assignments did you make? How many closings did you have, and how much did you earn?
Do you know why we don’t track our numbers? Because I’m numbers challenged, Brent, I took a DISC test and that DISC test tells me that I’m a driver personality and I don’t look at numbers. I’m not analytical at all, right? Or I just, you know, I just, I like people and I like making, you know, talking to people and I just get deals and it’s just great. The number one reason why we don’t track our numbers is because we are absolutely terrified that we aren’t taking enough of the right action. I’m putting that in quotes, right? Action. We take a lot of action and we can talk to a lot of people, but is it the right action? Are we really moving people through the process to be able to help this? Or are we just spinning our wheels? Are we creating logos and websites and business cards and different marketing strategies and having mastermind meetings four times a week and are we, whatever, you know, partnering up with people and you know, coming up with ideas and sitting around strategy meetings the whole time.
Or are we out there making an impact. Are we out there talking to people every single day talking to distressed homeowners every single day? That’s the right action. That’s the action that gets you paid. That’s the action that you got to focus on 100%. You got to be focusing on talking to the these distressed homeowners because I’m telling you, these sellers and buyers, they want to deal with superstars. They do. They want people to take care of them. A lot of times these people are very confused about the process and or they’re scared and or they’re not great at making decisions and they need somebody to really provide a ton of value for them. They want a superstar. They want somebody that tracks their numbers. I’m telling ya, not that they didn’t want it like directly, but they want somebody that’s a professional that can make the process as smooth as possible.
Because remember in wholesaling, people trade their equity for time and convenience. Speed and convenience. Okay? And that’s what you’re there for. So you need to be able to track your numbers. I’m telling you, it’s going to take you from doing one or two deals a month or quarter or whatever to making this a huge robust business for you. And you have to track your numbers so you know where you’re at so you know that you’re putting the money into your pockets so you could buy assets. And when those assets just start growing and growing and growing and all of a sudden you’re this mega millionaire, all because you went out and you provided value and you’re smart with your money, you decided to invest and not consume and you tracked your numbers because you, you are a professional. You are the real deal. You’re not out there willy nilly guns blazing and having nowhere to go and no direction, no target to shoot at.
So if you want to put together your goals, you’ve got to put together the goals based on tracking your numbers. You can do this, you can do this. I believe in you. You are bad asses. So yeah, make sure you track your numbers. Make sure that you keep it organized. You can definitely have the VA do that. If you want more help, if you want just to expand your business. If you really want to be a part of the most proactive group in real estate investing, you have to sign up for a call at my wholesalinginc.com/TTP. Set up a call there, wholesalinginc.com/TTP. The program is just going unbelievable. People around the country are just doing incredible things. I’m so proud of them and it’s just, it’s simple but it is effective and it is a step by step system for building the absolute most profitable wholesaling business possible. So check that out.
Also, as an extra bonus for listening to me rant and rave about numbers on this podcast, if you need any skip tracing go to batchskiptracing.com, when you check out and use the coupon code Brent and you’ll get it at 20 cents if it’s under a certain amount, I think it’s under 5,000 addresses. Also, make sure you check out my YouTube page at Brent Daniel’s real estate coach. Other than that, guys, I love you all. I want you all to be successful. I want you all talking to people. I encourage you every single day to talk to people and really go out there and make a huge, huge, huge impact in your marketplace. And when you’re doing that, make sure that you track your numbers. All right? Until next time. See ya.