Posted on: March 04, 2019

When it comes to wholesaling, your success and failure can rest on several key factors. Ranking high on the list is the wrong belief system. How important is your belief system? For starters, whatever you tell yourself and believe to be true is true for you.

While the idea of being mindful about the stories you tell yourself can seem like an unconventional concept for many, it can actually spell the difference between success and failure in the wholesaling space.

If you’d like to understand the importance of the right belief system and how it can impact your wholesaling business, you’re in luck. In this episode, no less than America’s top wholesaling coach Tom Krol discussed the significance of the right belief system and how you can use it to achieve wholesaling success.

As an added bonus, Tom also shared a few actionable advice you can apply immediately so you’ll achieve wholesaling success. You’re definitely in for a treat so don’t forget to join him! Besides, the wisdom, insights, and tips you’ll learn in this episode might just be what you need to propel your wholesaling business to the top!

Key Takeaways

  • Why the wrong belief system is a difficult thing to work with
  • Why you need to be very careful about what you tell yourself is true based on the evidence you’re seeing
  • Why it’s recommended to take an experience on its own accord
  • Why a large part of your assignment fee is a direct reflection of your confidence and belief system
  • What some of the generalities are in wholesaling
  • Why it’s easy to be part of the 98 percent as opposed to the 2 percent
  • Why you should not prematurely build a negative belief system based on just a limited number of experiences

RESOURCES:

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Episode Transcription

Tom Krol: One of the most important reasons that some people are successful and some people fail is that they have the wrong belief system. I want to talk to you about how not to prematurely create a belief system and then how to deal with it and how to be very careful about the story you tell yourself. Because whatever you tell yourself and you believe to be true is true for you. So we’re going to talk about this. It’s a little bit of an out-there concept, but if you can make this change, I promise you that you will have amazing, amazing results.
Hey, guys. My name is Tom Krol. I’m America’s number one wholesaling real estate coach. And today I want to talk to you about belief system and let’s make this change right now so that we can start to get effective, successful results in a very short amount of time.
You know this YouTube channel is all implementable stuff that you can implement right now. Actionable advice. So as soon as this goes off, take action immediately. And if you want to continue to get really awesome, effective, no-fluff, no-BS, all meat-and-potato advice, subscribe to this channel.
So here we go. Very often when you have new wholesalers, new real estate investors, they will have a very, very tiny amount of experience. And then they’ll build this whole story in their brain about their market or about wholesaling. Right? For instance, they’ll just be getting started and their coach or their mentor or their trainer will say something like, “Oh, we want to go for $10,000 per deal,” or something like that.
And then they will go to a REIA meeting, a Real Estate Investors Association meeting, and the head of the REIA or some wholesalers out there, they’ll say, “Oh, well, wholesaling’s great here, but the assignment fees are very, very small. They’re like $2000, $3000.” Right? Or they’ll say, “Oh, wholesaling is great here, but it’s a very competitive market and that means that this is going to happen and that will happen.” And what will happen is a new person, or even the experienced wholesaler or real estate investor will take that, that little seed, and they’ll plant it in their brain and then they’ll grow this whole story about what’s going on in their market.
This happened to me actually when I first got started. I went to a REIA meeting and the people at the REIA meeting said exactly the same thing to me. They said, “Oh, don’t do this. Do that. Because the assignment fees are very tiny.” Here’s the deal. The other time that this happens also, by the way, is you’re just getting started wholesaling, you have no experience and you just make you some phone calls and then you’ll have a few people will say, “Oh, well, you know, I’m not interested in selling. I just want to know what you’re willing to offer me.” And you’ll have maybe a hundred phone calls, and of the hundred, like 60 we’ll say that.
And then you’ll tell yourself this story that, “Oh, wholesaling is good in other markets, but in this market, people want full price.” By the way, as a side note, everybody wants full price. Ninety-nine and a half percent of the people you talk to are not going to be the right type of seller for you. So just put that aside for now.
But here’s the deal. One thing I’ve learned as a coach is that if I can help and I can give instruction and we can give action steps and we can really push people to their first deal, but the hardest thing to work with is a belief system that’s inaccurate or wrong. Because if you believe something to be true, it is true.
Here’s my advice. Be very, very careful of what you tell yourself is true based on the evidence that you’re seeing. Now, this is very difficult to do. It sounds easy, but it’s actually very difficult. If you talk to the 98% of people, the people who live paycheck to paycheck, they work for somebody else, they have a job, these people are what I’m going to call logical. Right? Things make sense. Right? So for instance, you would say in wholesaling, wholesaling is all about finding discounted properties. Right? But it’s very logical. Right? If you want to test this, go speak to the majority of real estate agents and you’ll say, “Well, I’m looking to pay 40, 50 or 60 cents on the dollar for a nice home in a nice area.” And agents will literally laugh you out the door. Right?
They’ll say, “There’s no such thing. That’s when the economy was bad. Now the economy is good. Good deals like that don’t exist.” Right? Which is ridiculous because we do deals like that every single week. We buy houses 30, 40, 50, 60, 70, 80 cents on the dollar every single week. Every single week, we do that in a very small market in Florida.
If you want to see how a belief system then can take people who are intelligent people, but they’re logical and they look at the evidence and they don’t go any deeper than the surface level, and then they work their whole lives. Right? So if you look at what’s going on is that they have a belief system that’s just wrong. It’s not that they’re good or bad people. It’s just the wrong belief system because they’ve taken a little bit of initial evidence, right, or they’ve been trained by other people who have the same belief system and they’ve adopted this as their story and then they make decisions on actions that they should take based on this belief system.
But what if the belief system is wrong? What if the belief system is wrong? This happens very often to new wholesalers. They’ll get some initial evidence or some initial results from experiment and they’ll say, “Oh, based on this experience, I’ll extrapolate that out in the whole entire journey is not going to work for that reason.” So the next time you have an experience, take it on its own accord. Take it as a standalone experience. Don’t try to build a case for your market, especially if you haven’t wholesaled more than 50 houses.
If you haven’t wholesaled 50 houses, try to take everything as a new experiment and a new result and stop trying to build a case for one argument or the other or your belief system. Just know this, and I can tell you this is absolutely true, there are people in your market right now who want to sell their home very fast for cash. They are willing to sacrifice price for convenience and speed. They are willing to sacrifice price for convenience and speed. Those people exist. They’re in your market. I don’t care how big your market is. I don’t care how many competitors are in your market, how many wholesalers, how many agents, how many houses, what the price of the houses are. This is just the truth of the matter.
Additionally, I’m telling you that your assignment fee, a large part of it is just a reflection of your confidence level and your belief system. The size of your assignment fee, which is the profit you make from wholesaling houses, the size of that check is a direct reflection of your confidence and belief system.
Now, are there generalities in wholesaling? Yes, there are. In areas where the homes are very, very expensive, like Los Angeles, San Diego, New York, Miami, Chicago, Dallas, the assignment fees are larger, because the spreads are larger. So that is true in general. There are bigger, bigger deals to be had.
Are the deals smaller in places like Jackson, Mississippi and small little tiny markets where there are homes that are regular priced homes for 80-, 100-, 120,000. Are the assignment fees smaller? In general, yes.
But can you do consistently big, big five-figure deals in both of those markets? Absolutely. Yes. 100%. But if you believe that the correct amount for an assignment fee is $2- or $3,000, then you’re going to be in your market doing $2- or $3,000, and I’ll be in the same exact market doing $10- and $20- and $30,000 deals because it’s the belief that’s there. It’s the belief system. So I can tell you on this piece of advice, it’s a game changer. It’s very difficult to be the 2% and not the 98%.
The 98% of people are logical, the 2% are wealthy and they get to the heart of the matter and they know how to have the right belief system and they can increase their faith and their belief based on, not the evidence of what they’re seeing, but what is achievable.
This is an out-there concept, I know, but if you start, remember this, you’re the average of the five people you spend the most time with and if you start spending time with people who are millionaires and who are very successful, healthy, wealthy, well-balanced people who are at the destination that you want to arrive to, trust me when I tell you, they don’t have the belief system that that things are limited, that assignment fees are limited, that the number of deals are limited.
Their potential is through the roof and they make statements that are a little outlandish, but they accomplish the statements. That’s why they’re in the 2%. It’s easy to be in the 98%. It’s easy. But the 2% of people, they are very careful about what they believe. As a matter of fact, if you ever noticed, if you’re on the phone with someone… I’m honored and privileged to have a group of people who I’m very close with who are very, very, very wealthy and very successful in a lot of areas of life and they’ve already arrived at the destination. And I noticed when I was first getting introduced to these people, if I would start to say something that wasn’t lining up in their belief system, they would say, “Oh, hey, Tom, something just came up. I got to go. Bye.” And they would hang up.
They won’t even listen. They won’t even let it penetrate their brain. So this is so important. This is such a huge divide between people who are struggling and people who are just exploding. There’s such a huge gap there. So pay attention. Be cognizant of it. And at least, at the very least, if you could take one thing away from this is don’t prematurely build a negative belief system based on just a limited number of experiences. So that hopefully is a good takeaway for today. God bless. Enjoy the day and we’ll talk to you soon. Bye bye.

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