If there’s anyone who can claim to be an expert in running a successful wholesaling business virtually, it has got to be this episode’s special guest. After all, doing 45 months of over a $100,000 in revenue is no easy feat!
Scott Orbon is the co-founder of one of the biggest and most established wholesale companies in the DFW Metroplex. While he first started out flipping houses, he eventually discovered wholesaling, fell in love with it, and eventually dominated it. What’s even more impressive is he runs his lucrative wholesaling business virtually!
If you think running a successful wholesaling business virtually cannot be done, think again. Scott’s story is a testament it can definitely be done. Fortunately for us, the passionate, hardworking, and articulate go-giver shared with us how he makes it all happen. Truly, this is one episode you can’t afford to miss!
- What he does to make the phone ring and be a step ahead of the pack
- How his business is structured in terms of operations
- The compensation structure he has in place
- How he finds quality people to work for him
- Why hiring the right people is crucial to the business
- Who does their property valuations
- How huge his buyer’s list is and how he built it
- What “healthy tension” with the buyers is all about and why it’s an important negotiating rule
- Best advice he can give in terms of mindset
- The Multipliers Mastermind
- Wholesaling Inc – TTP
- The Multiplier Mindset Podcast
- Brent Daniels – Real Estate Coach – YouTube
- Scott’s Facebook
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: Welcome everybody to the Wholesaling Inc podcast. Let’s pause real quick and … I just want to pause for a moment of gratitude because as of today we are number two because of amazing audience because of you listening as you’re driving in your car, as you’re running around, as you’re on the treadmill, as whatever you’re doing to listen to this podcast, the Wholesaling Inc podcast is number two on iTunes in the investment category. Number two in the world. And that is because there’s only one reason why. The reason why we’re number one is because people listen to this podcast and they literally take action and make money. They provide value to the marketplace. That is the only reason why they’re taking this podcast.
This is not necessarily an entertainment podcast. This is an instruction podcast. This is something that you can listen to and really sink your teeth into and inject it right into the veins of your business right now. So for everybody out there that has been taking massive action you are incredible, you are beautiful, you are a weirdo who does wholesaling. Who knows about wholesaling? It’s so incredible. I love it. So I just want to give you so much gratitude.
Usually, I start off the podcast by giving my tips and thoughts but no, this one right here we’re going to just go like a flamethrower. This podcast is so incredible because I have with me a good friend of mine that is based out of Dallas-Fort Worth and he has … Listen to this guys. Listen to me. Listen to this headline. He has done 45 months in his business. 45 months of over $100,000 in revenue. 45 months. Now, not consecutively. But in his career 45 months of doing 100,000 and we’re going to deep dive it today. So it is my absolute pleasure to introduce Scott Orbon. Scott, say hello.
Scott: What up, Brent. Mister go-giver.
Brent: So Scott and I were introduced because we are in an incredible … He runs an incredible mastermind called The Multipliers Mastermind in Tulum, Mexico. Once a year brings together just unbelievable people from all different industries, all different perspectives, and it’s just the best. And if you’ve never been to Tulum, I mean, Google it it’s worth it. So, Scott, let’s go, man. Let’s have a conversation. Let’s start off with when you were just a baby in this … Not a real baby but a baby in business. And with your little toddler legs how did you get started? How did you find wholesaling?
Scott: Man, that’s a great question. I grew up in the construction world so my family for sure just blue-collar and I ended up doing stuff with my hands. Man, I was in construction for the longest amount of times. And I freaking hated it 100%. Man, I knew I had a good brand on my shoulders. And when I first got started in real estate my best friend and business partner, Chris was a broker and I had some construction skills. And so we decided to flip a property in 2009 out of all times was is the shittiest market. And so we did that and then I got a windfall of cash. I had never seen a check over 1,000 bucks. So I think I got 13 grand. And you’re just like oh, man I’m drinking this Kool-Aid. So we started flipping like maniacs at that point.
And so after a while, we had scaled up house flipping and it was just … Whenever you have a three, $400,000 house you’re spending money. Cash isn’t coming in that quick. And so I just got to a point where man, my bank account was at zero and I needed cash coming in. And I had heard about because I was buying wholesale deals and I was like screw it I want to do this because I can contract something and then get some cashflow within the next 25 days if I can assign in. And that’s what saved my flipping business because I had nine monster properties and no cash flow coming in. I just started wholesaling at seven, eight, 10, 12 a pop. And man it saved me at that time because I didn’t want to wait until a big old $70,000 check came in.
Scott: So, man, I got my fix at that point for sure.
Brent: And then from there did you start … I mean, do you still do flipping? Are you just doing wholesaling? Do you do both?
Scott: Yeah, man. I absolutely don’t do flipping. I did want to scale back. Absolutely not. If I have to chase down another subcontractor I’m going to kill them. It got that lethal. And so man, we decided to really … It’s actually Todd Toback, you know him very well. Todd and I became good friends about over six years ago and he was wholesaling like mad. And really struck up a great friendship with Todd. And so we said, “Hey, instead of us really scaling house flipping and building that we decided to get smart on the marketing side.” And so that’s where we first started to get the calls to come in. As a business owner, here’s your first secret. You got to get the phone to ring. That’s your secret sauce. If you guys can get the phone to ring job number one completed. So we got the phone to ring with Todd’s help. And we just started wholesaling. It was a conscious decision to actually end flipping and I’m so flipping glad I did.
Brent: You can get the phone ringing or you can pick up the phone and talk to people.
Brent: Right. Right. So this is the classic … This is classic. This is marketing and prospecting. It doesn’t matter why. It doesn’t matter what it is. So that goes into my first point and something that I’ve been really focused on is if you boil down this business you have to have quality conversations with distressed property owners.
Scott: Bottom line. Absolutely.
Brent: That’s what you mean by having the phone ring. I don’t care if it’s marketing. I don’t care if it’s prospecting aka cold calling aka TTP. Whatever it is whatever your strategy is you have to have those conversations with distressed property owners. That is just a huge focus.
Scott: Absolutely agree. When I first started again, my personality is to scale something. Just fricking go savage on something. Don’t just pussyfoot in. And have a calculated risk. Do it for a month or two and test it, but fricking get the phone to ring. And then once you’ve got the leads as you say, Brent, start talking with people. And I used to say this a lot too. If you’re not talking with people you’re probably not making money. Let me just say it that way. I remember back in the day when I was in graduate school all I would do is write papers. And I would do a lot of research, but guess what if I wasn’t typing on a screen I wasn’t moving forward. So the same thing in real estate. If I see someone that’s not on the fricking phone they don’t have the momentum. So absolutely TTP, baby all day.
Brent: So let me ask you this. Very interesting and we’ll get into it because his business structure is bananas, guys. You’re going to love it. For all those guys that love virtual, this is the master of it. But what are you doing right now to make your phone ring? What’s working for you? Walk me through your evolution.
Scott: Absolutely. So I think the first thing to realize is when you’ve got a good marketing piece it’s only as good for a season or a couple years. Things change so fast. I think we’ve realized that over the last couple years is that there’s a lot of competition and you’ve really got to niche down on some real quality marketing pieces to make sure that you stand out. Now, again I know a lot of people in the wholesale business that are always anxious to hear, “Hey, what marketing are you doing?” And hey, I get it it’s good for a year or two but guess what things change.
I just saw a post on Facebook the other day it’s you know what, instead of always be closing you’ve got to always be changing. So you’ve got to grow some arms and legs. And back in the day, I used to say, Brent, when there wasn’t a lot of competition out there was, “Hey, do two or three things very well. Go deep instead of wide.” Now, I’ve changed my philosophy on that in saying, “You know what you need to probably have four or five different lines in the water and make sure they’re quality if you want to stay ahead.”
Scott: But you got to stay ahead, man and get that phone to ring. And then you got a whole other subject so you’ve got to filter those leads in through specific means of operations. And we can get to that here in a little bit.
Brent: So, Scott, this will blow people’s mind. Just estimate it doesn’t have to be perfect. About how many pieces of mail have you sent in your career?
Scott: Oh my gosh.
Brent: Come on.
Scott: I’ve probably sent three or four million just for me. It could be five. I don’t know.
Brent: Three to five million pieces of mail.
Scott: Yeah. I have had some pretty epic-
Brent: So what is it 100,000 a month? 200,000 a month?
Scott: I think my max when I was at 150,000 a month. And again that’s when there was a lot of competition. You want to really force your hand at structure and have a systematized business, blow something up. I meant to figure it out afterwards. But you know what you got to know that it works. Test something. And that’s what we did for a while. Now I quit doing direct mail 100%. The returns aren’t there. That’s a whole other subject that afterwards, we can chat about.
Brent: So okay you have all these people calling in. You’ve got distressed owners, you got regular people, you’ve got all these different … The phone’s ringing its coming in. You’ve got a lot of action coming in. How do you pre-qualify who’s going to be a deal? Who’s going to do business with you and who’s not? So we talk about on this podcast pre-qualifying based on the condition of the property, their timeline to sell the property or when they want their money, the motivation or what’s their problem, and then what is the price that they want. Where does your calls go to?
Scott: Right. So from an operation’s standpoint because again I’m structured a little bit different. I’ve got a staff of 15 people. And so it’s a machine. You got to constantly beat the machine. And so just like Henry Ford, he’s got an assembly line, I’ll set my whole business up that way. Now, again the first domino is marketing. You’ve got to get the phone to ring. Now, the first point of contact for us is in-house virtual assistants and they are the ones screening those calls. They are the ones that are simply asking simple questions. “Hey, you have property and do you want to sell it?” And they’re screening that and then they’re making the judgment hot, warm, or cold. And then they’re logging back into the system and assigning that to the appropriate acquisition manager for whoever is due that day.
Brent: So is this someone you pay hourly?
Scott: Absolutely, hourly.
Brent: Is this somebody that’s in the country or out of the country?
Scott: In the country. I’m a big in the country guy.
Brent: I think a lot of people when they hear the word VA they think Philippians. They think India. They think all over the place. But VA, guys you can find a ton of talent. And this is something that Scott has really implemented in his business is why restrict yourself to the talent in your town. Why not get the best talent around the country and run this thing like it’s 2018 and organize it in a way that he prefers to organize it, which is basically … Guys, by the way, he has no office. If you’re watching us on YouTube, he’s in his house. That’s where he works from, okay. Because people are all over the place and his business partner he lives in Tulum, Mexico. So I mean, this it’s an interesting, it’s almost bizarre, it’s exciting, it’s this new model that I love that you’re sharing it. How many virtual assistants do you have answering your phones?
Scott: Right now I have two.
Scott: Yeah. That take the incoming calls.
Brent: I mean, is it a full-time right job for them?
Brent: Or, one is morning one is evening?
Scott: Two full-time right now. And there might be a little bit of a shift difference there because it is … Let me say this too you. The VA are people they’re not just there to grind all day. You guys have to be consciously aware of the emotional capacity. You know this, Brent, better than anybody. You can’t just grind someone and expect them to be on the phone eight hours a day. You got to break it up. And you’ve got to make sure that they feel heard. You got to make sure that they receive the energy and they get the praise. So it’s not just hey, there’s a lonely servant VA. No way. They’re the first I’m contacting. You know what we measure how many times they tease stuff up and they get bonuses for that. So we fold them into our culture. They’re not just periphery or just … No, they’re a bottle part to the whole organization as a whole.
Brent: I think it’s a huge mistake for people to think you set it and forget it with VA’s.
Scott: Agreed. Well said.
Brent: You know what I mean. It’s a huge mistake. Okay, great. So they look at the deal. They have experience and they know this one’s hot, warm, and cold based on just their experience. I mean, do they have a checklist? Act like you’re speaking to somebody that’s never done a deal before and they get an incoming call from a marketing. Or, they’re talking to somebody cold on the phone from a cold call. What do you do to be able to put those in different buckets?
Scott: Got you. Now, I think if you got a new VA and they’re just starting in on this you need things very structured and systematized. We need to spell it out so it’s one, two, three easy simple. And so for our VA’s they’re a little bit more on the sophisticated sides so they know the feel of it. They know the stories things like that. But again, if you’re new to this and I know you preach this a lot, Brent, you’ve got to get in and you got to make sure that seller is talking first. You’ve got to make sure you hear the whole story, and you’ve got to ask questions, and you’ve got to hear yourself then.
And there’s motivation in two ways that I look at it. It’s either based off the price or the story. They might not know the price but they’re motivated by the story. And so it may be low, medium, or high on either one of those, on the price or the store, the pain, or whatever that is. And so again, we’ve been able to make a system out of that and they can see that where okay should I push in a little bit more. And if someone is on the fence like hey, there’s low motivation but there’s a great price, there’s a certain pushback. Now, if the price is amazing but they don’t have any motivation to sell then there’s a certain pushback for that. And what happens if they’re both medium. The price is somewhat close to maybe warrant a visit and the motivation is somewhat medium there, well, you got to pushback on that too.
And so we’ve been able to draw up some things where they know when to pushback and press in. And the other thing I’ll say too, Brent, is our VA’s man, they don’t like to give cold leads out. They don’t. They want to give 100% hot. And we will actually do a live transfer on the hot leads. Boom. Hey, I want to get you in with Fred my acquisition manager and he wants to hear you right then. Boom. And than also send over those warm leads as well. But they’re tired of kicking over crap over to the acquisition manager because the acquisition manager is great at a couple things that’s it. It’s negotiating and closing.
Brent: That’s it. That’s it.
Scott: And that already means that they’re talking to people.
Brent: That’s right, baby. That’s right. So your acquisition manager’s now … How many acquisition managers?
Scott: So we just moved up to our fourth acquisition manager right now.
Brent: Awesome. How is their pay structure?
Scott: Their pay structure is always based off profitability off the deal. And so recently right now we just hired a new sales consultant to come in and restructure our whole compensation plan. And there’s two ways to actually pay someone out to really motivate someone, in my opinion. It’s either the volume of deals so you’re pleased with the volume that they’re closing at. Or, two the size of the deal. There’s a difference between a $5,000 assignment fee and a $50,000 assignment fee.
Brent: You bet it is.
Scott: So our previous structure was structured around the size of the deal. And what we realized we were limiting the volume of deals. So we went back over and said, “Hey, if you guys can contract more than nine deals then you get 15%. If you get more than 14 deals then you get up to 17. And then if you get more than that then it goes all the way up to 20%.” And so we flip-flopped. Now I’m not saying one side’s right and one side’s wrong.
For us, it’s all about volume. So we want to put the carrot out there for the volume side. But again, what I’ve heard across the board just so everyone understands I’ve talked to a lot of people. If you could pay anywhere from about … The range is, obviously, about 10 to 20% depending how great they are. That’s usually the payout. But again, if you’re only closing a couple of deals and an acquisition managers get 10% you better feed them because they’re worth it. If I’m a great sales guy and you only got me a couple leads and you’re paying me 10% I better be closing out at least 10 deals to make it worth my time.
Brent: Or, they leave.
Scott: Or, that’s right. There’s so much opportunity out there, goodbye.
Brent: So let me ask you this. Where do your acquisition managers live?
Scott: So we actually have one in Florida and actually, the other three live here in the Dallas area.
Brent: Okay, got it.
Scott: So yeah.
Brent: Do you see them face to face?
Scott: Yeah. I actually we do, man. We’re big on culture. We’re actual virtual culture. But we’re actually hanging again out this Friday night. Just had a team outing for lunch. And so absolutely, man. I love hanging with them they’re great people. And a good rule of thumb is if you don’t like the people you’re working with don’t hire them.
Brent: I love it. How do you find your talent?
Scott: Oh, man, that’s a great question. You know what I’ll be honest, man it has been tougher this last year to find a quality acquisition manager. Now, our process is this. We don’t hire off any type of resume. We don’t hire because they have major sales experience. What we go off of is hey look, we want to see your assessment. We want to see how you truly are wired.
Brent: A personality assessment?
Scott: Yeah. So we have a pretty hardcore assessment that we have. And you know John Pyke who comes in and assesses motivators, values, and talent, and personality. And so we come in and we screen out 95% of the people because they’re not in the top 5%. And here’s the other thing that I’ve learned too, Brent. We hire off of assessment. They come in here and tell us all those accolades that’s great. We go off the assessment. So someone could BS. And then eventually it’s our job to make sure that there’s chemistry. Make sure that there’s character. And make sure that there’s some basic competence. And so it’s been getting harder to find good quality acquisition managers.
And the one thing that I’ve learned too I’ll throw this in there. You don’t want the top 1% salesperson, in my opinion. And the reason why is because they’re a pain in the ass. They’re a drama queen. Or, her. And I don’t want someone throwing up a fit because they think they’re the best thing since sliced bread. I don’t want that ego to come in and disrupt because they know that they’re the top 1%. No. I’d rather have an emotionally stable, solid, and culture, and chemistry because I don’t want to have one person bring in and throw off everything.
Brent: Got it.
Scott: Because it [inaudible 00:22:13].
Brent: So I know the people listening heard you say the name, John Pyke.
Brent: And he’s a part of the Multipliers. Is that a service that he provides around the country or is that just a special deal for you guys?
Scott: No. No, no, no. So I’ll give you guys this as a resource. The Talent Genius. If anyone is curious reach out to Brent or myself and I can get you and connected. And he does an assessment and that assessment is phenomenal. I would always say, “Hey, assess yourself first. Get a clear understanding and then you can bring him in and he can consultant and make sure you bring the best hire. And what I realize on this too, Brent, I know this is true for you, one bad hire will set you back three to four months.
Brent: Oh, and probably three or 400 grand.
Scott: Easy. And then if you get the right hire, the right hire can at least get you minimum of 100 grand plus. And in certain organizations, it’s 250 or 450 or 700,000. So here’s what I would say. Here’s the take away for people. Don’t half-ass your hire.
Brent: Love it.
Scott: If you’ve never hired before, there’s no reason to think that you’re a badass at doing it. My language is getting a little bit more hard.
Brent: It’s all right.
Scott: Here’s the deal. Outsource it, brother. Outsource it. Get someone who’s been there done that. Has got 10, 15 years because you’re not smart enough. Don’t think that you’re smart enough when you’re not. Pay the money. If an acquisition manager is at least guaranteeing you another 150,000 plus go spend 1,000 bucks to go get a coach to help you how to hire the right person and then have you assemble that right position. Right seat, right person. It’s worth the investment. If you want to deal with the of three months of crying because you made the wrong hire, no. Do it right the first time.
Brent: How do you find those people? A Google for it? Do you search it? John Pyke, right. I assume he has a website somewhere.
Scott: Yeah. John Pyke The Talent Genius. And so if you want him to come in and help you hire someone he’s got his set fee. I’m sure it’s probably going to be minimum of two, three grand minimum. Don’t quote me on that. But again, obviously, the best place right now is to post online. And I don’t really know the top five or six, and if someone wants to know I have that list. Indeed and Hiding Hire.
Scott: LinkedIn and Craigslist all of that. No, you’re posting out there but here’s the thing. When we have a post out there we have everyone that week for that assessment, they have to fill that assessment out. And then John says, “Okay, here’s top five.” And now the 99 assessments we get we’re probably only looking at three or four.
Scott: And then once I get that investment get on the phone with that person because people are flaky. You got to get on the phone, you got to put the carrot out there, establish relationship, build some good energy, show off that position, show that you’re a human being and that you’re unique, and that’s huge. Before we used to make sure people jumped through two to three to four hoops. Now, people are so flaky and people get scooped up just like that. If you like the assessment get on the phone immediately.
Brent: Talk to them.
Scott: Geez, can you believe that, start talking to people? Geez.
Brent: Oh, man I think we dropped it four or five times in the first 26 minutes.
Scott: It’s like a movie the title.
Brent: So your people get a lead, they got all the info. Who does your evaluations? Who makes sure that this is a deal or not a deal? Because when we’re starting out, and this is just for people that are starting out, the toughest thing is this a deal or not a deal and then how big a deal it is. Am I leaving money on the table? Am I thinking this is the deal of a lifetime? Who values your properties?
Scott: Right. So there’s a couple different aspects of that. Number one, if they’re highly motivated I’m going out there for the most part. Again, they have to be at a nine or a 10. They might not know the number and they may be a little bit timid but if they’re highly motivated I know someone can close them face to face. And that’s one of our rules.
Scott: Second thing. Is again, we’re just using basic math. 70 cents on the dollar minus some repairs. And if they’re close we’re going to go set an inspection. Okay. Now, the acquisition managers when they’re on the phone with the seller, and the numbers look within the ballpark range, we’re setting an inspection. Why? And there’s a good rule here. Sometimes it’s not the prettiest person it’s the first person who gets the deal. So in today’s world, everyone knows it’s highly competitive. Get out there. Get the ball rolling. And so the last aspect of that, Brent is I have a full-time comp runner, that’s all she does, man. She runs comps, and she throws out hey, this is a great price to pick this property up. Here’s a good price. Here’s the walkaway. And the acquisition manager he’s got a little bit of play on that walkaway because we don’t want them to get stifled. But that comp runner is sending that and that’s her zone. She knows the numbers. She knows the repair. She knows what it might sell for. So she’s feeding that information to the acquisition manager.
Brent: Got it. And that person’s also virtual?
Scott: She’s virtual, right.
Brent: Okay. And then your inspector, you have an actual person that goes out maybe per trip you pay them?
Scott: So he’s on salary now.
Brent: Salary, awesome.
Scott: Yeah. So full-time. Love it because he serves as an inspector. He also serves as a runner and pickup artist. Dropped off paperwork.
Brent: Pickup artist.
Scott: He’s really great. He’s so [inaudible 00:28:07].
Brent: Awesome. So you get the deal. Your people lock them up. You got your superstar sales team. You got the right value. You’ve got the phones ringing. You got everything coming in. That’s great, but we all know you’re not getting any money wired into your account until you either take this property down and whole tale it or wholesale it maybe. Literally, assign this contract. So that all comes down to that beautiful, beautiful, robust, healthy cash buyer database. Maybe. That’s what it comes down to. So how big is your cash buyer database if you were to-
Scott: I think we’re close to 25,000 maybe more.
Brent: And how did you build it?
Scott: Now, here’s the secret sauce. I’ll put something juicy out there. You ready? All right. So without a doubt, the biggest leverage point in your business is going to be your buyer’s list. Let that soak in for a minute. Where else can you push a button and you’re starting to get offers. Okay. Various again. Now, I preface it this way. Again, in changing times I’ve been riding my big old buyer’s list for five-plus years. And so it is growing a little bit stale. Everything grows some mold, bro. But outside of that where all your listeners in smaller towns or B towns or A towns whatever, you got to start building it. Cumulative growth each day one thing at a time.
And so here’s what I’d say. You still skill train get to increase your buyer’s list. Because it’s huge. You’re digging the well before you need the water. And so you never know when you add a name that buyers the guy that’s paying $7,000 more. So now, we get into the practicals on building this fricking list. Okay. Get your list up to a couple grand of people. I mean, hijacking. Start finding agents that have done cash transactions, put out bandit signs, go look on Facebook, go steal. Do whatever it is go get that list. Get on websites. Get on Zillow. Start capturing. Start doing capturing deal. Put it on Craigslist. If you have to start off organically, what I would say is get up to 1,000. Get up to 2,000 right there. Now, here’s the biggest fricking swing on the fence. If you got to go buy a list go buy it.
Brent: Go sell them.
Scott: Go find a competitor. Hey, this is where you go out and you make the big ask. And this is again, you’re making a big ask to sellers. You’re making a big ask at other wholesalers. If you’re not making big ask in your career then you’re swinging for singles. Okay. Go find those other 12 other wholesalers who are established. Go find those other 12 newbie wholesalers. And here’s the key. You ready? Trade.
Scott: You got 5,000 and he’s got 5,000. Don’t worry about the semantics you just almost doubled your list. There’s going to be some overlap. Where else can you double your list? Okay. Now, this is my little platform to brag a little bit. For the people who don’t want to trade okay you’re a little selfish weenie. Okay. Where else can you double? Okay. You want to be ancillary that’s cool. You think you have the market cornered, false. Okay. Trade. You guys are both in the same business together. Make sure it’s someone that’s also cool, they’re not just an idiot you’re trading with. It’s a small community. And trade. It’s all about whoever can get the deal first.
Brent: It’s really interesting when you have people that are really guarded with their cash buyer database because they assume that they’re married to these cash buyers. Listen, those cash buyers are not married to you. They’re dating everybody in town. Okay. They’re putting Craigslist ads and going on dates. They’re on Tinder. They’re on Plenty of Fish. They’re on Match.com. They are dating around. So don’t think that your buyers are the only … You only have them on their list. They’re everywhere, okay. I love this, love this, love this. It’s been a huge influencer in our business. We took our business just from what Scott told that right there, we took action on this over a year ago and went from an assignment fee of 14,000 to over 23,000. The only reason why is because of the size of the buyer database.
Scott: It is.
Brent: Different buyers have different strategies for different properties. Somebody that’s a buy-in home is going to pay a lot more for. Somebody that wants to live in the property like an owner occupy that’s scrapped up all the cash and just wants to fix it up themselves is going to pay way more than the fix and flipper that’s been doing it for 25 years and needs to make 15% margin on every deal. That is just absolutely beautiful. Now you mentioned something to me that we implemented as well in our business and it is called healthy tension with your buyer database, right?
Brent: That tension that helps them to move faster and say yes to the deal faster. Can you talk about that a little bit?
Scott: Absolutely. Healthy tension’s a great rule when it comes to negotiating. I mean, that’s really what negotiating is, is tension. You’ve got something and someone has something they want and you have something to give. And so the biggest thing you can do to negotiate is agree too fast. So it comes down to a timing aspect. So when you’re trying to buy there’s none of that. Okay. When you’re trying to sell, first in loses. Okay. You’re shooting yourself in the foot if you’re agreeing on stuff too fast. And so you’ve got to set up systems, you’ve got to set up your psychology so that it isn’t a rushed process. You’re dating okay you’re not just jumping in saying, “Okay, let’s go.” So the way this works out for us and again this is a philosophically this is how it works out for us. And last year, I mean, it made us another $300,000 easy. Just the fact that I’m not going to take the first offer I’m just not.
Now, I want to speak to the newbies here and even the amateurs or the experience. We know all know this that if you take that first offer and you say, “Okay, it’s first come first serve,” then fine that’s great. That’s your system. Okay. But where do you create the tension? Where do you create the competition? So I have a huge list and if I have 18 people I want to go look at a property, I want to put them all in there at once. Now, are they going to be happy about it? No. But here’s the deal. The question is who wants it the most. Price is what someone’s willing to pay not what you’re willing to offer. Say that again. Price is what someone’s willing to pay not willing to offer. Not what you’re offering. So if you offer hey, I want 20K for this property and that investor one of the 18 goes out there and he’s like, “Man, my grandma lives next door and I want to live next to grandma. I’ll offer you 65.” Go for it.
Brent: At that price, yeah.
Scott: Take the opportunity. So here’s what I’m saying is that you have to create opportunities for people so they can compete for that property. Either by price okay or by buyers list or the way you negotiate with time. Hey look, I’ve got an offer today another one’s coming in tomorrow I’m going to push it out a little bit more. But here’s the deal. Stretch it. Create healthy tension because you’re going to see a lot of the motivation desire if you can maintain that tension and not agree to something quickly.
Brent: I love it. Let’s put a bow on this thing. Let’s wrap this up with something that you’re just really deep into which is the psychology, you mentioned it before, and the mindset of this business of owning wholesale business, of being an entrepreneur, of being successful. Give me your best three minutes on what somebody starting out here needs to do? Or, somebody that’s been doing it for a while. Anybody. Let’s just talk about anybody. I don’t know why we categorize it. Anybody. Just give us your best three minutes of what you think mindset wise for this business that you need to be successful?
Scott: Right. I would have waxed eloquent. And I listen to a phenomenal nine-minute podcast and Dan Sullivan on Multipliers Mindset. And he’s a strategic coach. He’s one of the best coaches out their hands down for entrepreneurs. And he said there’s four C’s. Number one, you got to be committed. Number one. That’s it. You got to be committed.
Brent: Love it.
Scott: You might not have the confidence, you got to be committed. You got to start with commitment. I’m talking you know what screw this I want to get this freaking done. I got nothing. I’m throwing it all out there I want this. I’m getting greedy. Mentally I’m tough. No matter how hard it gets I freaking want this. That’s number one. Number two is courage. After that commitment, something’s going to be tested on the courage side. Okay. And you’re going to have opportunities and that’s not courage. The courage is when you seize an opportunity. And when you have fear guess what fear doesn’t go away it’s just your courage cuts through that fear. So when you’re like, “Man, I don’t know if I can go do this big deal I’ve never done this before.” Man, that’s where you need to have a strong conversation with yourself saying, “Dude, this is where I need to man up or woman up.” This is courage. It’s hard but so what I’m cutting through it.
Three. Competence. It’s going to test your competence level okay. And guess what skills can grow. Skills can grow. Don’t start questioning your competence. Stick with the commitment first and the courage. Then it’s all about your competence. You may not have it you may have it, but those can grow. That’s the third point. And the fourth one is watch your confidence grow afterwards. Okay. Confidence grows after those three. Commitment, courage, competence, confidence. So it’s in that order peeps that’s all I’m going to say. It’s in that freaking order. When there’s days where I’m shaking you know what I have to usually resolve to say, “You know what I’m committed. Or, you know what this is where I have to face something,” it’s hard as hell. Victors never leave them. And I got cut through it.
And then I learned something about my competence skill. And said, “You know what I need to sharpen that.” And my confidence grows. And you know what when you’ve got confidence it’s contagious. Your team feeds off of it. Your wife feeds off of it. Freaking you feed off of it. Get in that zone. For me, that progression, Brent, was huge. There’s days where I’m off my game. I’m sure there’s days where you’re off your game. It was just a basic system a filter for me to say, “You know what I got to go back and up my commitment level on this.”
Brent: Got it. I love that.
Scott: I can get courage on this. Or, you know what my competence you know what I need some help on that skill because I was wavering. Sharpen that competence skill I’ll need. And my confidence begins to boost up a little bit. So that’s my three minutes and I’ll shut up.
Brent: I am literally going to put those four C’s on this wall, man. I love that. That was brilliant. I absolutely love it. The commitment part just going after it and just doing it and taking that action, I mean, that’s why we’re called the rhino tribe here because it’s just like a rhinoceros. Just see something and goes. That is so connected with the values that we hold so strongly here on this podcast and in this company. So I absolutely love it. Man, you are the man. I love it. Tell me what is the best way for people to you reach out and just give you some love or give you some attention. Or, maybe just whatever.
Scott: Facebook me, man. My link will be on there. Just Facebook me. And anyone who reaches out I’ll say hello. I learned from Brent and Brent and I have these competitions about when we get on the phone it’s an hour and a half call. So again, and I will say this and I know Brent you would say this too. I wouldn’t be here if someone didn’t give it to me. And I know there’s a lot of people like, “I won’t charge.” You know what hey, reach out if you need something I’m open. And anyone’s got any question I’m open.
Brent: And I will tell you just from personal experience, guys, your goal you should put this up there. Your goal someday … Maybe it’s this year maybe it’s not for 10 years, but should be to get invited into the Multipliers Mastermind because it is bananas and it is just filled with absolute just superstars. So that should be a goal. Check it out. You can check out their website at multipliersmastermind.com. But it’s an invite-only so I won’t get too much into it. But guys, just amazing stuff. It’s 45 minutes on this podcast of just amazing value. Listen to it again. Thank you for hanging in there. Thank you I have so much gratitude for your continued attention to this podcast through your continued taking action, that’s what the whole point of this thing is. There’s no value in this unless you take action, which is phenomenal.
If you’re looking to join the most proactive real estate program in the country go to wholesalinginc.com/TTP. That is my personal cold calling coaching program if you’re one of those proactive maniacs out there. And also, if you want to see this if you’re just listening to this audio you can go to my Brent Daniels real estate coach on YouTube and actually watch this, it’s worth the watch for sure. Put it up on the big screen, baby. So Scott, thank you for lending us some of your time and really dropping just an incredible amount of value. I love you, brother and I encourage everybody out there to talk to people. Until next time see you.