If you are still not getting the results you are looking for as a wholesaler, you’re probably asking yourself what the possible reasons may be. Fortunately, in today’s episode, no less than Wholesaling Inc.’s very own Tom Krol enumerated some of the key things you could be doing wrong!
There’s no denying wholesaling can be tricky if you’re still new and still trying to find your way around. The good thing is you can dramatically shorten the learning curve and learn straight from the experts so you can explode your wholesaling business in as short time as possible.
So grab a pen and paper and list down all the wholesaling gold nuggets Tom dished out in today’s episode. You just might find the secret sauce that can take your wholesaling business to the next level!
- The importance of making as many appointments as possible
- Why it’s recommended not to pick up the phone when on the way to an appointment
- Key differences between wholesalers who are crushing it and those who aren’t
- Why it pays to build rapport with homeowners
- How to effectively (and easily) build rapport with motivated sellers
- What sets seasoned wholesalers apart from the inexperienced ones
- Why it pays to be brutally honest with sellers at all times
- How to effectively control the conversation and what you gain from doing so
- Why it’s ideal to build one’s buyers list
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
Tom Krol: Hey guys, welcome to another episode of Wholesaling Inc, and I’m going to give you some really good information, some tips and tricks that you can use right now to either start or explode your wholesaling business. If you don’t know what wholesaling is, wholesaling real estate is simply the art of consistently finding discounted properties. That’s it. If you can get good at finding discounted properties, you can find financial freedom. So I’m really excited about wholesaling, I have been doing it now for seven years and as a matter of fact, yesterday, for the first time in a long time, I actually myself went to a seller’s house. Of course I put the deal under contract at a very, very good price. My brother Daniel, who is my acquisition manager, he had his little baby Faith. I know he hasn’t announced it to anybody yet, but this podcast is a recording that won’t be released for a week or two. So by then hopefully everyone will know, and if not, you’re finding out for the first time. So I may be getting in trouble on this one.
Tom Krol: But guys, I want to go over a few tips and tricks that you can use right now to really explode your business. I’ve got a lot of good stuff for you and it’s stuff that is … we’re going to cut through all the fat and all the BS and get right to the meat and potatoes of how to do your first deal or how to do your next deal. So we’re going to dive right in. The first thing that I want to give you guys as a little tip or a little trick that I learned when I was first starting, and that tip and trick is this; when you do your marketing to find a motivated seller, whatever it is, whether it’s driving for dollars or bandit signs or direct mail or cold calling or television or billboards or door knocking or, or, or, or, right? There’s so many different ways now to market. When you do your marketing to find motivated sellers, these are homeowners who are okay at selling at a low price in exchange for speed and convenience, which is what you can give them as a wholesaler. When you find them, you’re going to want to make as many appointments as possible.
Tom Krol: Now, most of these people won’t be motivated to sell at a discount or sell quickly and that’s okay, right? Because this is a numbers game. But when you first start, I want you to make as many appointments as possible. Now, here’s what you’re going to find. Very often while you are wholesaling you are going to be headed to the seller’s house, or you’re going to be getting ready for an appointment, and before that appointment takes place you’re going to get a phone call or a text message from the homeowner canceling the appointment.
Tom Krol: Now, here is the tip. Tip number one; when you first start your wholesaling business, or if you’re already wholesaling a ton of deals, when a seller reaches out before an appointment do not pick up the phone. And I know you’re like, “Tom, this is crazy advice. What if they’re not going to be there?” I don’t care. Go anyway, do not pick up the phone. The seller is not calling you to say that you’re not closing fast enough and they need to close this hour and not in two hours. They are calling you because they want to cancel the contract. So here’s what I’m going to suggest. Do not contact them. Do not pick up the phone, do not answer the text thread, no matter what it says. Head over to the house and act like you never got it. Or what I would say is just totally ignore it, because you do not want to take that call, because if you do, I can almost guarantee you they are going to, nine times out of 10, be canceling the appointment. And here’s the tragedy with that, is that it’s going to be some of the hottest deals that you’re going to come across.
Tom Krol: What you find with sellers is that some of them are very introverted and private people. They have made a lot of bad decisions over a very long period of time and now they need to use a pawn shop to sell their home, they need fast cash. And that can be embarrassing for some homeowners. Very often we walk into homes and the pets are unkept and they’re making a mess, I’ll just say, all over the place. Or the homes are hoarder’s homes, so the homes are very, very, very dirty and sloppy with piles of debris everywhere. I personally have literally been in homes where we had to walk over piles of just stuff, where you’re so high on the pile that your head is almost hitting the ceiling of the home. And I think that this is embarrassing for a lot of homeowners and they don’t want to show that to other people. So you have to be understanding of that and you have to move slow as fast as possible, if that makes sense. And one of those tricks is don’t allow them to cancel that meeting. They want to meet with you, they’re just private, they’re introverted, they’re embarrassed. So make sure that you do not let them reach out to you right before a meeting takes place. So that’s tip number one.
Tom Krol: Let’s go into a broader section here and talk about tip number two, which is what are some of the differences? And this is going to be a few little strategies here that you see between wholesalers who are just starting or struggling, and wholesalers who are making a lot money every single month consistently. So what are some of the differences between those wholesalers and the ones who are really crushing it? What are some of the key differences? I’m going to give you some of those right now that you can implement in your business right now today. And they’re so exciting because they’re so easy.
Tom Krol: So first of all, one of the most important things, like I said earlier, I went out yesterday and I met with a homeowner myself in person. And I have not done that for a very, very, very, very long time. But the good news is it’s just like riding a bike, it was very simple. And I noticed when I got there that the person I met with was a woman, and as soon as I walked in, I remember this happening when I used to meet with sellers myself, is they immediately want to jump to showing you the house. It’s like they’re uncomfortable so the way they get comfort, the way they seek comfort, is they start talking and showing you the house. And what I did yesterday is I stopped, I slowed down and I built rapport.
Tom Krol: And I stood there and my phone was buzzing and beeping and dinging and all kinds of stuff and I didn’t look at it one single time. I kept it in my pocket and I made eye contact with her and we were laughing. I know everything about this homeowner. I don’t want to go into the details of what I know about her because I don’t want to put it all out there as far as her private information of this homeowner, but I can tell you, I know about her family, her children, what her children do, how they do in school, what schools they go to. I know where she has lived in the past and what her jobs were. I know every single job she’s ever had. I know exactly what is going on in her marriage. I know exactly what her hopes and dreams and fears are. I know where she wants to go and what she wants to do and why she wants to do it because I was actually a real human being and I was an actual friend and I was actually interested.
Tom Krol: So when you’re actually interested, you start to ask questions. So when they’re explaining stuff to you, you’re going back and forth with the seller, and guys, I cannot tell you, this is one of the key differences between an experienced wholesaler and one who’s just starting out, is that they allow the seller to control the framework by following them around the house with a notepad and taking notes about this house, which, if you know anything about wholesale and [inaudible 00:08:29] our podcast, wholesaling really has almost nothing to do with real estate. It’s really more of a pawn shop. It’s really more of a rapport building, problem solving type of service. So rule number one is, or tip number one, is the difference between a new wholesaler and a successful wholesaler is this: build rapport. And you do that by asking questions.
Tom Krol: I am sitting here today, the day before, it is 7:17 AM in the morning. I was with the seller yesterday and I am telling you guys, I know everything about this seller. And of course I got the deal. It was easy because I built rapport and I used a few other little tactics that I will share with you on this podcast right now. So let’s get to it. That was tip number two.
Tom Krol: Tip number three, and this one is in the category of the difference between a new wholesaler and an experienced wholesaler again. And it’s this: experienced wholesalers have confidence. Now, you’re probably sitting there going, “Yeah, Tom, they have confidence because they’ve done a lot of deals.” Well, let me tell you the difference and how you can get confidence right now because it’s easy and it is this way; be a truth teller and a truth seeker. I want you to practice brutal, now remember this word, brutal honesty with the seller. Brutal honesty. A lot of people will say, “Well Tom, that’s just like an ethical or moral thing to do.” No. Yes, of course you always want to be telling the truth and you want to try to avoid lying for ethical and moral and religious reasons, right? However, in this framework, in this instance, this is all about a strategy. This is all about a perspective. Honest people are confident. They naturally put their shoulders back and they put their chin up and they smile. And the reason is is because they are honest and when you’re honest, that comes right through as confidence.
Tom Krol: So how do you do this logistically? How do you put this into principle? How do you put this into action? Whatever you’re afraid to tell the seller, as soon as something pops up in your brain and you’re in the middle of a conversation and you’re saying, “Oh, I don’t want to tell the seller that because if I tell the seller this or that then the seller is going to think this or do that.” Don’t anticipate or assume what the seller is going to do based on what you tell them. Instead, just … because that’s you trying to figure out how to manipulate the situation. Instead, just practice brutal honesty. Be a truth teller and a truth seeker. If there’s anything that pops up that you’re afraid to tell the seller because of what they’re going to think, tell them.
Tom Krol: I’m going to say that again. If there’s anything that during the course of the conversation or the rapport building or speaking with a seller that pops up in your brain and you all of a sudden retract and you start to think, “Oh man, if the seller knew this or if they knew how much I was making or if they knew I wasn’t going to live in the property or if they knew I wasn’t a rehabber, then this is going to happen or if that’s going to happen,” stop that thought from occurring and just practice brutal honesty. I promise you it will build your confidence.
Tom Krol: The other thing that it will do is it will allow your non deals, if you will, to be exposed early. So this is going to be another tip. The next tip guys, I guess this is tip four if we’re keeping count, is this; that new wholesalers tend to have very long engagements, or very long conversations with people who are really not a deal. They really do not want to sell or they do not want to sell at your price. And new wholesalers tend to keep those deals going for a very long time, those conversations. And experienced wholesalers tend to do that … that very, very much. They tend to shorten those conversations and get rid of those deals that are not deals very quickly.
Tom Krol: Now, the reason that they’re able to shorten those conversations and get rid of so-called opportunities a lot sooner than a rookie is because they are honest, because they are willing to just say, “Hey, this is a deal and this is not a deal.” So one way that you can do that is by, again, being honest and being brutally honest and being up front. One other little caveat to this tip is this; one thing I noticed with people who are doing a lot of deals, they’re making, 25, 50, 100 thousand dollars a month consistently, is they control the conversation by interrupting the seller. Now take this with a little grain of salt, but I’ve noticed that people who tend to control a conversation, they are doing two things all the time. Number one is they’re getting clarity by asking questions. This is something, by the way, that I learned personally from Robert Kiyosaki, is that he taught me that whoever asks the questions controls the conversation, which I think is awesome.
Tom Krol: So they ask a lot of questions. And number two is that they interrupt a lot. They are constantly interrupting the seller. So if the seller is saying something that doesn’t make sense, they’re constantly interrupting and redirecting the conversation. So just practice this. You can practice this with your spouse, but let them know, don’t just start interrupting your spouse. I don’t want to get crazy hate mail. But just start to learn how to control the direction of a conversation by interrupting the person you’re speaking with. And you’ll notice that if you ask questions and if you interrupt, you will be able to control the conversation. So it’s a little tidbit there.
Tom Krol: Okay guys, so here is one last tip that I want to share with you, and you could implement this right now today, which is this; the best wholesalers in the country, the ones who are crushing it, they are building cash buyer lists all the time. I don’t care what your exit strategy is, whether you are signing contracts or buying and selling the property or rehabbing it or becoming a landlord or doing subject two deals or whatever. It doesn’t matter. The most successful real estate investors in the country, the most successful wholesalers, they have the largest and freshest cash buyer list. So, number one, let’s just start with an action step, right now today, go out and build your cash buyer list. It’s super easy to do. If you’re a tribe member in the Wholesaling Inc or you’re a Wholesaling Inc student, just go into the modules, look at the modules on how to build your cash buyer list. If you’re not a rhino in the tribe, then just check out some of our other podcasts that we’ve done on Wholesaling Inc that talk about building your cash buyer list.
Tom Krol: But here’s what I can tell you. The biggest cash buyer lists win. The reason that the biggest cash buyer list win, and it’s so funny, just as a side note here, I was watching this show called The Undercover Billionaire. And the premise of the show is that it’s about a billionaire who is sent to a city that he doesn’t know, that he’s never been to, where he has no contacts, and they take everything away from him except for a truck and a suitcase of clothes and 100 bucks. And the challenge is he has to start from scratch a million dollar company in 90 days. And that’s the challenge. And I won’t give away any spoiler alerts, but if you haven’t checked out Undercover Billionaire, I strongly recommend that you do that. And guess what his first rule was. As soon as he got to the new city, his first rule was find your buyers first. You guys, this is a billionaire, right? So something worth taking a look at.
Tom Krol: So here’s what I’m going to tell you. No matter what your exit strategy is, find ways to find your buyers. Your buyers are going to tell you all about your marketplace. Your buyers are your reality. Nobody cares what you think the home is worth. Nobody cares what the seller thinks the home is worth. The only person whose opinion matters is the buyer. That is it. So I really want to encourage you guys, if you want to quadruple the size of your assignment deals right now, then you must have a big, big, huge cash buyer list of real estate investors with a lot of cash who want to buy properties. They’re going to teach you about your market. It’s important to have those people in your life. You can learn a lot from those people. It’s going to produce amazing results. So I really can’t encourage you enough, build that cash buyer list big and build it every week and make that part of your business to continue.
Tom Krol: So many wholesalers, they start off with a handful of buyers, sometimes they’ll call them, they’ll say that these buyers are reliable. When you have reliable cash buyers, it’s a small list, five, seven people. All that means is you’re leaving a ton of cash on the table. Your cash buyers should be … there should be a feeding frenzy around your deals, no matter what your exit strategy is. They can give you immediate feedback on deals. They can change your business and change the trajectory of your financial future. So build those up.
Tom Krol: So I hope that those tips and tricks, they really help you. I want you to get motivated, get out there, go and meet. Go back into your database right now of every single seller who’s ever called you, go and book an appointment right now. Practice interrupting them. Practice controlling the conversation. Practice building rapport. Practice not picking up the phone if they call you before a meeting because they’re going to cancel that meeting. Go out there, go today, go meet with a homeowner. There’s still a ton of time left in the day to go and do this. Just go do it right now, guys, this business can change your life. If you want to cut through all the fat and the fluff and get right to specific instruction, head on over to Wholesaling Inc, Wholesaling I-N-C .com, fill out an application, and if we like what you have to say … and by the way guys, we actually do look at those applications, so make sure that you fill them out and you’re thorough because there’s a few little things we’re looking for in there. Fill it out, if we like what you have to say, we might even bring you on to be a rhino. All right guys, I’m giving you guys a rhino salute. You can’t see it through the microphone. All right. Enjoy the day and here’s the victory bell.
Tom Krol: There’s that beautiful original victory bell. I love it. All right guys, go enjoy the day and we’ll speak to you next time.