If you are like most people, it is likely that you did everything on your own when you first started out—looking for prospects, babysitting the files, providing exceptional customer service, you name it.
However, no matter how hardworking or motivated you are, you can end up burning yourself out if you continue to do everything on your own. The good news? You don’t have to!
In fact, if you want to get to the next level, you have to find a way to sell properties for maximum profit with as little involvement as possible.
How exactly should you go about it? That’s what Todd tackled in today’s episode. So if you want to boost your revenue dramatically and enjoy more time and freedom, consider listening to this episode a must!
- Importance of sorting out the transaction within the first 48 hours
- Why you should educate people on your buyers list
- What other options you have apart from working with a title company
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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Todd Toback: Hi, this is Todd Toback, and welcome to the fourth episode on a special podcast series on how to take your wholesaling business to the next level. Now you may be listening to this podcast and you’re a brand new wholesaler, and that is okay. Or you may be listening to this episode, and you’ve done the deals, right? You’ve hustled, you’ve met with those motivated sellers, you’ve found your cash buyers, you’ve put them together, and you’ve made some money.
Todd Toback: You bought low and sold high, and you’ve cashed some really, really big checks and I want to congratulate you. Now, this episode is all about dispositions, right? How to sell your properties for maximum profit with as little of your involvement as possible. Now, if you haven’t listened to the first three episodes in this series, I really want you to encourage you to start with that first episode. It’s very, very important so that you can get a global picture, a big picture of what this looks like. So that you can have a wholesaling business that generates 40, 50 $60,000 a month or more, net in your pocket without your day-to-day involvement.
Todd Toback: Now, I don’t want to say this isn’t any work, right? Of course it’s work. You’re going to have to grow as a person. You’re going to have to invest in people, you’re going to have to be a leader. But I can tell you the rewards are enormous. In our last episode, we talked about hiring an acquisition specialist and we had to get past some fears, right? And also when we’re going to sell our properties to our cash buyers, there’s some fears there, right? That we’re going to have to get past to really elevate to get to the next level an to make the kind of money that we want to make, and to be the business owners that we’ve always dreamed of.
Todd Toback: And so this episode is really going to focus again on the disposition, the selling of our properties for top dollar to hungry cash buyers. Now I can tell you in my business, I remember what it was like. I remember I used to lock up a property, and I used to call up my one or two favorite cash buyers, and I used to tell him about my property. And I was what they call the CBE, a cash buyer employee. I used to sell my houses for too low. I used to go there and they used to beat me up on price. I used to get my contract signed, get their earnest money deposit, run it over to escrow, and constantly sit there and babysit the file. Oh my gosh. It was a nightmare. And then I’d have to call the seller and keep my deal together, because I felt like I had to do everything. I felt like I had to provide this customer service to everybody, and it was really hurting me.
Todd Toback: Now want you to ask yourself for a second, okay what it would be like if all of a sudden you got a ding, right? A little text message in your phone that says, “Matt locked up a new contract.” And your not Matt, right? Matt is someone on your team. And you look at your phone and you’re saying, “Wow, I never spoke to that motivated seller.” And at the same time, somebody on your team is taking that file, and sending it over to the title and escrow company, letting them know that a file has been opened. Or better yet an email goes out automatically. How nice would that be? And your title company will call up your motivated seller, schedule a signing, get all the paperwork signed. And inspection is automatically scheduled so that your buyers can go look at the property. An email is prepared, a text message is prepared and sent out on your behalf.
Todd Toback: And now you have a flood of cash buyers who are going to your property at a specified time, to create a feeding frenzy to bid up the property, to get the highest price possible that you could ever imagine. Okay? On a property that you have never been to. Okay. Now imagine that closing happens. The highest offer comes in, it’s 10, $20,000 higher than you were getting on your previous assignment fees. The whole closing is handled by somebody else. And all of a sudden the deal is done and you have a wire in your bank account, without ever having to visit the property. Without ever having to meet with a cash buyer. Without ever having to keep the deal together, and babysit the motivated seller. Or pray that your buyer gets his closing funds in time.
Todd Toback: And let me tell you this is possible and I’m going to share how in this episode. Now, if you haven’t listened to the last episodes on acquisition, if you want that email to hit your inbox saying a new property has been locked up without your involvement, you’re going to have to hire an acquisition specialist. And that’s okay, right? It’s amazing. It’s going to free up a ton of your time. But if you want to outsource the back half of this, you’re going to have to hire a disposition specialist. Now this person can be your personal assistant, right? They can also handle some of the marketing if you identify these positions, and lay out clear responsibilities.
Todd Toback: And something that I teach all of our Next Level Wholesaling students in our coaching program, is that if you lay out these specific positions specifically, and give people clear expectations of what you expect of them, you can actually have one person handle multiple roles. Like marketing and disposition, and also be your personal assistant, if their bandwidth allows for it and they’re doing a fantastic job. So in our company, and I’ll share with you how we actually sell our properties is, once a property is locked up by an acquisition specialist, an email goes out to the entire team, right? It raises morale, everybody’s excited. An email goes out to the title company. And our acquisition specialist also sends an email out to the title company letting them know we have a new property under contract.
Todd Toback: Now our title company, it’s very important that you train them to actually be an extension of your team. Now your personal assistant, who also may be your marketing person, but this is someone on your team, okay? Make sure that the seller in this transaction has been called. Now preferably, okay, you have now trained your title company to do this for you. To call a motivated seller, to get the paperwork out immediately. And I can tell you it’s so important to button up that transaction within the first 48 hours. Something that we do is we send that paperwork out. We have all the deeds signed, we have all the escrow paperwork signed by the seller, and once that is done, okay, the deal is done in the seller’s mind.
Todd Toback: Now, you may be thinking, “Todd, how can you do that, okay, without having your cash buyer lined up?” You can do that. If the seller needs to sign some additional paperwork down the line, okay? That is okay. That can happen. But whatever it is, it’s the mere fact of the seller signing that initial paperwork. Okay? Now if you’ve trained your escrow and title agent to do this, they’re going to walk your sellers and your buyers down the path without your involvement. Okay?
Todd Toback: Now your disposition manager at this point you should be monitoring, and an email and a text message goes out to your cash buyers letting them know about the property, right? Now we have a scheduled inspection date that we have. So whenever we have a property under contract, there’s one inspection date with a half an hour window. We tell everybody to show up on time. Everyone knows our policy, $5,000 EMD, non-refundable, one inspection time, and you have 24 hours to get in your bid. Now it’s really important that once you have your buyers that you indoctrinate them, you train them. That you give them that documentation, so that they know they need to show up on time. They know that they can do an inspection, they know that it’s going to be non-contingent, and they know that they have to get their money in within 24 hours. And if you do that, you’re not going to have a problem.
Todd Toback: So when you get people on your buyers list, you have to educate them on day one. That’s very, very, very important, and let them know the deadline. Now once you’ve got that deadline, your administrative assistant, or your disposition manager, okay, again it’s how you define it, okay, is going to accept that highest offer. Once that offer is done, once that offers accepted, again, you don’t have to do this. That offer is signed by an authorized person on your team, right? Highest and best. You can also use an agent, a real estate agent to do this for you. An email is sent out to the escrow title company saying, “This is the second half of the escrow. Please contact them and make sure the EMD is in.”
Todd Toback: Now it’s escrow’s job, if you’ve trained them, to verify that EMD is in. If it’s not in, they’re trained to call up our disposition manager and boom, we move onto the next buyer. They get their money in, email goes out, and now the deal is done. Now, very important here. If you’ve had that conversation, that your title company should be handling all the title problems. They should do that. If a lien pops up, or a judgment pops up, or if a spouse needs to sign, they need to handle this. And I can tell you at one point it got really chaotic in our business, and our team was actually handling a bunch of title issues. And our title company actually became lazy and complacent and it wasn’t their fault. It was our fault, right? We actually started doing their job, and it became this huge whirlwind of trying to get deals done.
Todd Toback: Well, I can tell you we moved to a new title company who now handles this all for us. Now I can tell you that your title company, or your closing company will handle this for you. Okay? You just have to set that expectation. And if they won’t, there’s another one for you. So we have a student in our Next Level Wholesaling Coaching Program, and he said, “Hey, my first two title companies, they won’t do this.” And so he did a little searching and boom, he found one two hours away from him. Now you may be thinking, “Wow, I can’t work with a title company two hours away from me.” Yes, you can. The great thing is is that you should never have to go to a title company. Okay? Your seller should never have to go to a title company. Your buyers should never have to go to a title company. Everything can be handled by a notary or courier, and it makes it really, really easy.
Todd Toback: So now you can expand your network of title and escrow agents across your state. How awesome is that? Right? Recently, we did a deal where the seller actually had a spouse who was on title and the spouse had disappeared, right? Nowhere to be found. We tried to Skiptrace her, and look her up on White Pages and no one could find her. And I said to the title company, “Hey, we need you to handle this.” Well, needless to say, we’ve trained our title company really well. They contacted an attorney, they got a judge to sign off. And long story short, I don’t even know how they did it, but we closed.
Todd Toback: And that’s all because we’ve delegated that, right? We put that responsibility on the title company and said, “Hey, it is your job, your end result to make sure these files close. Work with a seller to make it happen.” And I can tell you that this will free up hours and hours and hours of your time. I’m telling you, you’re going to love it. All right? So this was the fourth episode in a five part series. I really hope you enjoyed it. By now you can see that you don’t need to be involved in the day-to-day operations of your business. You could automate your marketing, you could automate your acquisitions, you could automate your disposition, if you have a process and you really, really are able to let go, and free yourself.
Todd Toback: I promise you, you’re going to see your revenue go up, your free time go through the roof and also your fulfillment where the business is going to go up. I promise you. All right? So if you’re interested in hearing more, watch out for this next episode. I’ll also look into our Next Level Wholesaling Coaching Program. Real excited for the results we’re seeing for our students there. If you want more time, more freedom, and you want to explode your wholesaling business, then head on over to wholesalinginc.com/nextlevel. But otherwise I’ll see you on the next episode. Can’t wait to hear success stories, and we’ll talk to you soon. Bye.