Posted on: December 13, 2018

While wholesaling is easy and straightforward, it can be overwhelming especially if you’re just starting out and still finding your way around.

However, while you can’t become an expert wholesaler overnight, there are certain things you can do to help get your wholesaling efforts off to an exceptional start. And that’s what seasoned wholesaler and TTP guru Brent Daniels discussed in detail in this special episode.

If you’re ready to take the wholesaling world by storm, sit down, listen to this episode and take down notes. You’ll find plenty of powerful tips, insights, and techniques that will help you explode your wholesaling business dramatically and take it to the next level!

Key Takeaways

  • Why having quality conversation with homeowners is key
  • What the 4 pillars of pre-qualification are and why you need to go through them
  • Why you need to understand the property values
  • Why you need to create a healthy tension with your cash buyers

RESOURCES:

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

Episode Transcription

Brent Daniels: Hey, everybody. It is Brent Daniels, and if you are listening to this podcast right now, you are beautiful. You are so amazing. It is not normal for the average everyday person to be listening to this Wholesaling Inc Podcast. It is not normal for people to want to learn how to wholesale real estate. It’s not normal for people wanting to know how to hit the lottery in this business, make huge amounts of impact in their community, and also make huge amounts of money, so that you can buy assets, so that you can change your life, so that you can do all these amazing things. This is not normal.
If you are listening to this, then thank you. I love you, I support you. I will do anything that I can to help you be successful in this business. That’s why I put together this specific podcast because I want to reach out to everybody that’s maybe done a couple of deals. Maybe you’ve never done any deals in your life. I’m going to give you four things to focus on.
Four things for the next 90 days to focus on, and if you focus on these four things, your business is going to shoot off like a rocket. It’s going to be bananas. You’re going to, one, have absolutely so much fun in this business, and two, you are going to do something amazing that all of a sudden everybody around you is going to come around. They’re going to be like, “Hey, Bill. Hey, Judy. Hey, Sam. What are you doing out there? What is this wholesaling thing? What do you mean you’re an entrepreneur now? What do you mean you quit your job? What do you mean that you’re a real estate investor?”
All of these exciting things are going to happen to you if you follow these four things to focus on when you are starting out in this wholesaling business, so get a piece of paper ready, get a pen, or pencil, or marker, or whatever. A crayon, I don’t care what it is, but write down these four, really focus on it, and you’re going to skip to the head of the line. You really are. You’re not going to have to worry about this huge learning curve. Even if this is a part-time thing for you, a side hustle of whatever it is, or if you’re doing this full-time, and you’re committed to it, break it down and make it simple. I think oftentimes, when we look at a process like making money, like providing value, we overcomplicate it way too much, so let’s just focus on these four things and let’s rock and roll.
Number one, boom. Number one thing we have to focus on when we’re starting this business is having quality conversations with distressed property owners. Let me say that again. Quality conversations with distressed property owners. This can open Pandora’s box, but let’s stay focused. Let’s stay focused here, okay. Quality conversations. What does that mean? Quality means how is your tone of voice? Okay, how are you reading and reacting to the homeowner? How are you understanding the way that they communicate? How are you understanding their personality style? You know what I mean?
Are you just going in, and you’re just like a bull in a China shop, and you’re just crashing through, and you’re just interrupting, and you’re just going, and you’re just trying to get them to give you an answer and take your offer? Or, are you finessing it a little bit? Are you understanding the way they want this relationship to work? Okay, the quality part is really all that experience that you have. I don’t care who you are. I don’t care if you’re 18 years old, or if you’re 68 years old right now, look at all the conversations that you’ve had and build on those. When was those times? Think in your mind of the times that you had really good quality conversations with people. I guarantee you if you really, really focus on it, it all starts with you asking the right questions and being quiet and listening to the answers.
I’m telling you, being interested in what they have to say is such a vital part of this. If you start focusing, if you really, really focus on it, you’re going to be so good at this. The quality conversations comes from your ability to know what questions ask and then shutting up, and listening, and being interested. Okay, and the quality part of that, like really understanding what is coming out of this conversation. Are you able to like make them comfortable so that they feel okay letting down their guard a little bit and talking to you and being really open and honest? That is such a skill. So really, start thinking about how do I have better quality conversations.
Second part of that is the actual conversations, themselves. Listen, it only comes one of three ways. One, you wait for people to just talk to you about real estate because maybe you told some people, you made a post on social media that you’re now looking to buy houses, and maybe something just kind of falls into your lap. You’re just waiting around for it. Two, you by those conversations. You buy the conversations by paying for direct marketing, right. You pay for direct mail, you pay for pay-per-click, you pay for bandit signs, you pay and have people door-knock for you, or put signs out on the street. Whatever it is you pay for those conversations.
Or, three, the way that I prefer is that you go out and earn those conversations by picking up the phone. The whole path is laid out for you. If you’ve ever been to my YouTube channel, you can easily get there at Brent Daniel’s Real Estate Coach. Check that out, or the Wholesaling Inc YouTube page. Either one, a ton of great info there, but pick up the phone and call these people. Talk to people, be on offense every single day. Okay. That’s the conversations part.
Now, distressed property owners that is getting the right lists. What are the right lists? Is it tired landlords? Is it tax defaults? Property tax default? Is it people that have code violations? Is it people that just got thrown in jail? Is it people that are foreclosing on their property? There’s so many different techniques, but you got to be focusing on the people that have signs of distress. It is so huge. Quality is what you’re saying and how you’re saying it. The conversations is, “Are you waiting for it? Are you buying it? Or, are you going out and earning it?” Distressed property owners is, “What lists are you focusing on?” Boom. That’s number one baby. We are heating up on this podcast. Oh, my gosh.
Number two, you’ve got to pre-qualify them based on the four pillars of pre-qualification. Okay, write this down. It’s going to save you so much headache and so much time running around town, going on appointments with people that want to waste your time, and that will never do business with you. Number one, the condition of the property, okay. The condition of the property, you have to know what the condition of the property is.
What you’re listening for and you’re asking about is whether or not that property needs a lot of work, okay. Now, not every wholesale deal, the property’s beat up, but I would say a majority, if I’m being honest with you, a majority, I’d say 90 to 95% of these properties are in original condition or have had dramatic, dramatic, dramatic issues with them, and distress with them, and just overall just neglect. Okay, so the condition of the property.
Number two is their timeline to sell. People will tell you that they would consider an offer on their property in 2025 after their son graduates from high school. It’s happened. I’m telling you, the timeline to sell is so important. You’re looking to zero in on the people that want to sign a contract today, okay. Who’s going to sign a contract today, or in the next 30 days? That’s how you start building up your pipeline. That’s how you start following up with people. You start shortening that gap between your first conversation and when they sign your contract. Okay, timeline to sell. Very important.
Number three, their motivation to sell, or what is their problem? Okay, what is their motivation? Why would they want to sell? Here’s the thing, the real important thing is that they want to sell. There’s plenty of people that need to sell, guys, there’s plenty of people that need to sell, guys and gals. I am telling you, there’s people that were foreclosed on properties, lose properties, they just won’t take any action. You need to find the people that want to sell. Let me say that again. Want to sell.
Do you ever remember that movie where he’s like, “Sell me this pen?” Right, The Wolf of Wall Street. “Sell me this pen,” that whole thing. Do you know how that worked out? Do you know how that really works out? Basically, the pros, the professional people out there that know how to sell, don’t sell to people that aren’t in the market to sell a pen. That’s basically what it is. So really, really focus here, guys. Focus on the people that want to sell, okay,
Number four is their price. What is the price that they want? Okay, you need to pull this out of them. Again, you can go to the YouTube page, you can listen to this podcast. There’s a ton of info on how to pull the price out of them, so check that out online. It’s a little bit entertaining. You’ll love it. Okay. That’s number two.
Number three thing to focus on in this business as you’re getting started out is understanding the values, understanding the property values. One of the hardest and biggest hurdles that I see with people starting out is the simple question of is it a deal or no deal? Okay, is it a deal? Is there equity there? Is an investor going to buy this, and I am going to make a spread, or is it no deal? Am I buying it? Am I offering too much for this property? It is something that you really have to focus on, being able to pull the comparables and get the values that you need. Okay, there’s a ton of different sites. Zillow, Trulia, Redfin, E-appraisal, you can check those all out. They’re going to give you some kind of idea. You always want to kind of be in that 50 to 60% of that value. That’s a little secret. Okay, 50 to 60, then maybe 65% depending on your market, and that’s only if you’re above $100,000. If you’re below that, get it as low as you can.
If the house fixed-up is lower than 100,000 in your market, get it as low as you possibly can. I’m telling you, deal or no deal. And then, how big of a deal? It happened to me guys, my first three deals, I lost out on $90,000 because I sold it to my cash investors, and they resold it. They wholesaled it to people that they knew for a combined, on the three of them, of $90,000. So, deal or no deal, and how big of a deal is it?
So if you can get somebody that you trust locally that can really help you out, real estate agents are incredible. Give an appraiser two or 300 bucks to sit down with you for two hours and really show you how they do their work. Really show you how to get the basics of getting the comparables. Worst case scenario, guys, just lock it up as low as you possibly can, and it’s best when they give you the price first. Understand the values, that’s number three.
Number four, you need to create a healthy tension with your cash buyers. What does that mean? That means they need to feel like they need to make a decision now, and they better not mess around, and they better go with the terms that you are putting out, which is, and I hope is they go with your purchase contract, obviously. That they are putting down a sizeable non-refundable earnest deposit. If you don’t know what earnest deposit is, Google it.
I’ll give you a quick idea, is it shows you whether or not they’re serious. Okay. If they put together, we always require five if not $10,000 non-refundable earnest deposit on our deals. Okay, that means if they back out tomorrow, if they back out in a week, if they back out right before it closes, they lose $5,000 no matter what. Okay, that is going to show you how serious they are. You want them to not mess with you on the values. You want it to be, and obviously, you don’t want to overprice it. If you overprice it, then there’s no healthy tension. You can’t have healthy tension.
Now, the number one way to have the most healthy tension out there when you are putting out your deals to your cash buyer database is have a big cash buyer database. I mean, seriously, build it up, build it up, build it up, build it up, feed it, feed it, feed it, feed it. Your cash buyer database is what is going to make the difference between making $5,000 a deal and $25,000 deal, 100%. When I started out, I was making $12,000. I was selling to the same three guys every single time, they took everything. I felt relieved that they took it because I inherited, it’s a great thing that Tom Curl talks about. I inherited the anxiety of the seller, and I didn’t want them to lose out on deal. I didn’t want to lose out on the deal myself. I wanted to make sure I got paid.
See, the problem is most of the time when we start off, we’re like, “I hope I get paid on this. I hope this is a deal. I hope that I make some money here.” As you start to get more cash buyer database, and you understand what they’re looking for, and you understand how to build in, and create a healthy tension when you put out your deals, then you win big time. Okay, so it’s just building that up, building up your experience level there, and creating healthy tension with your cash buyer database every time.
So guys, that is the four that you need to focus on when you’re starting this business. It sounded like a lot because I’m a big talker, I get it, but it is quality conversations with distressed property owners, pre-qualify all of your leads, understand your values. Is it a deal or no deal? And how big of a deal is it? And create healthy tension with your cash buyer database.
Guys, you could literally take this podcast, implement it into your business right now for free, and go out there and start doing deals and bigger deals than you ever have done before. If you want to take it to the next level, if you want some additional help, if you want to be in a mentorship position with me, then go to wholesalinginc.com/ttp, set up a call with my team. We’d love to discuss if it’s the right fit for you, and if you are, you are going to join the most proactive real estate investing group in the country, no doubt about it. Wholesalinginc.com/ttp. Take it to the next level.
You can also see me on my YouTube page, which is Brent Daniels Real Estate. You can see us, all of us. We have an incredible YouTube page getting built up right now at Wholesaling Inc, and I’ll give you a little bonus, all right. We talked about having quality conversations. You want to have conversations, you’re driving around, you’re getting a list of a 100, or 200, or 500 rundown properties. Driving for dollars. You don’t have a huge budget. You don’t want to pull lists, you just want to use your eyeballs. You understand that there are deals out there by just driving around and seeing these rundown properties.
Take those, get the addresses, get the owner’s names from your property tax assessor, or have a virtual assistant do it, and send it into batchskiptracing.com. I’m telling you, if you put in the coupon TTP, right, The Coaching Program, TTP has a coupon. You get it for 18 cents an address, you get the numbers for those homeowners. Come on baby, this is just bananas, like get out there and do something. And I really, I love when you take the information here, and you implement it into your business, and you get value out of it, and you win, and you make money. Then you come, and you join my TTP Program, baby. And then you’re off to the races.
So, that’s it. I love you guys all. I hope this brought you some value, and I encourage everybody, everybody, everybody to talk to people. Until next time, see ya.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling