To achieve financial success in the wholesaling world, closing one deal after another won’t often suffice. Equally as important is being able to maximize the profit you’re getting from each of those deals.
If you are not making as much money as you would have liked, you are not alone. Many people actually share the same dilemma. Fortunately, today’s guest will help you examine areas for improvement and how you can best address them.
If you are an ardent listener of the podcast, you probably already know Todd Toback. To say he is one of the best coaches in the wholesaling/real estate space is putting it mildly. If anything, he’s not called the “mentor to the mentors” for nothing.
In this episode, Todd shared some of the secrets that can help you get deals on a consistent basis and increase your net profit dramatically. Today’s episode is truly worth its weight in gold, so don’t miss it!
Why You Aren’t Making More Money on Your Deals . . . and How to Change it NOW! Todd Toback
I am extremely excited. We have the absolute best mind and the mentor to the mentors on this show, Mr. Todd Toback. Todd, how are you doing?
I am doing awesome. As always, I am very excited and thankful to be on the show. I love talking to you, Mr. TTP. I always get lots of energy here. I am ready to bring some value to you. If you are reading this as a newbie and want to make more money, do more deals, expand, and see your net profits explode, we are going to give you the secrets and the levers that you can push to drastically increase your net profit. I know that you hear that a lot. I have been in this business since 2001. What we are going to talk about is the number one thing that you can do to radically transform the amount of money that you are taking out of your business every single month.
What we are talking about are massive deals. I define massive deals as a $50,000 minimum net to you wired into your account deal. Todd is going to break it down. He is the mentor to the mentors. Truly, we implemented what Todd has coached into our business. It has taken us from a $12,000 average to a $27,000 average. He is going to break down the four steps that you need to implement to start getting consistent massive deals.
With as much effort as we have, as much cold calling we are doing, as much texting as we are doing, and as much lead follow-up and referrals we get every single quarter, we get a massive deal. It has changed the landscape of our business every single time. We have had some that are over $150,000 deals off of one seller. I know that you do these deals all the time, specialize in these, and dissect what it took to be able to get these opportunities. Let’s break it down and talk about the four ways people can start getting massive deals.
Before I jump into the four, I want to encourage you. A lot of people out there brag about the number of deals they do. That is great. We want to celebrate wins. High five when you have a positive mindset. It is going to be important. What is most important is what you are going to bring home at the end of the month. Not to make this a love fest, but you are the number one coach in the entire country for teaching people how to cold call. After all those hours of phone calls and going through the noes and the maybes, finally, you get the one, which is awesome.
You got someone ready to say yes. You better maximize that deal. I am going to teach you four ways. There are many more ways in which we are going to talk about on how you could find out, but we are going to give you four now to maximize this profit. One of the things that I talk about is you want to create this pressure or this internal combustion engine that is always putting pressure on what you expect out of a deal. Think about what you are comfortable with your monthly income. For some people, they are okay with $2,000 to live with mommy and daddy in their basement. They are okay making $2,000 a month because they could do whatever they want to do.
They have got no kids. They are not married. They live with mom and dad. Most of America is addicted to making $5,000 a month. I am not saying that is right or wrong. If you are reading this, you want more. You want to make a middle 6-figure, 7-figure, or 8-figure income. You have big aspirations. The problem is that all of us, whatever that zone is, have this internal temperature of what we think our income should be, and because of that, we have this internal temperature of what we think our deal size should be. Notice if you are always doing $7,000 deals. Somehow magically, you always make $7,000 or $8,000.
If you are doing $10,000 or $15,000 magically, what do you think happened? Do you think the lightning struck and these sellers who showed up gave you a deal that enables you to make the same amount of profit that you always make and your cash buyer gave you the exact amount? No. You set the tone or your internal temperature. You are like, “How can I change this?” Anything that has been created and anything wonderful has first been dreamed in the mind. Let me give you an example. Let me talk a little bit about the cabin that you have. At some point, did you decide that you wanted a cabin?
Absolutely. I have been thinking about it forever. I grew up that my grandparents had a cabin. They sold it when they got older. Phoenix is very hot. I have got young kids and we want to get out of the heat. Having a cabin is the biggest blessing you can have living in the desert. You can go to the mountains, spend time with the family, and get out of the heat. It was firmly planted in my mind.
All of a sudden, Mr. TTP is on the phone generating leads. What magically appears?
What magically appears is these opportunities. When you are every single day being proactive and not reactive waiting for opportunities to come your way, you get opportunities. I start thinking in my head, “This is one step closer to having enough to buy a cabin, for sure.”
Wasn’t that cabin a TTP lead? Was I wrong about that?
It was off the market. I called but I saw that it came off the market. It was not a distressed seller. I talked to the real estate agent but they have taken it off the market because it was not selling.
The point is that there was this pressure from what you wanted, and because there was this want, your actions then dictate it. You did a cold call to a real estate agent. You accidentally saw this expired listing. You went and locked up. The whole Daniels family is now living in a wonderful cabin.
It is $75,000 under appraisal value.
What I am going to ask you to do is you must put internal pressure on what you expect from a deal. If you are making $10,000, what I automatically want you to do is say, “I am going to do $30,000, $50,000, or $100,000.” Say this in your mind. I am going to show you how to do this. Once you make this decision, you make this commitment. The way you negotiate with a seller is drastically going to change. It is not going to happen overnight.
There is going to be this tension that is always going to be pulling you towards that goal. When you lock up a property and let’s say you normally get X amount or this percentage of ARV or your buyers pay this much because that pressure is still there, you negotiate on a different level. This is something that we talk about in the No Limit Sales System. If you want to find out more about that, go to ConvertWholesaleDeals.com. I go into this in-depth there.
You want to create that tension. How do you do this? We have this faulty programming in our minds. This faulty program always takes us back to our default. Maybe it is not even faulty. It is just the default. What we need to do is to physically program or reprogram ourselves for a new default. The problem is that our brain loves to go back to the default. We must program it, reprogram it, and keep going. It is like how my daughter is getting her braces off. She has to put in a retainer.
We do this by saying affirmations. What are affirmations? I did this with one of our clients here who started in ConvertWholesaleDeals.com. His deals were weak and the size of them. I said, “I want you to say that you make at least $50,000 per deal.” At night, I want you to write this down along with all your other affirmations and say, “I make at least $50,000 per deal. I am extremely happy every time I lock it up. I feel great about making $50,000 per deal because I am offering value to the seller, it enables my business to make a large net profit and also thrive and hire people.”
He also had some issues about making that much but he started to say it out loud. He said his affirmations in the morning and at night. You can do this for any area of your life. We are going to stay very specific on this. Whatever size deal you want to focus on, say it and write it down. It has to be three steps. 1) You have to have a dollar amount. 2) You have to write it down. 3) You have to say it and do it every single day.
One of the things that I talk about with my TTP family members and the TTP program is in this business, you truly find what you are looking for. It is that whole thing. When your wife is pregnant and you are pregnant, you see pregnant people everywhere. If you buy a truck or a car, you see that truck and car everywhere. It is the same thing when it comes to doing these massive deals. The first big check I got was over $40,000. My mind exploded. It was destroyed. It could never be put together the same way again. That is what I want for everybody reading this and everybody in the TTP family. That is what you are talking about.
Anything that’s been created, anything that’s wonderful, has first been dreamed in the mind.
It is getting to that point where you believe and you have faith that you can do it. You cross that bridge to where it is a fact and get a massive deal. You know you can do it again. $61,000 is the average household income in America. People can do deals that size from one call, lead, opportunity, and chance. You are not going to get to those deals if you are not putting it in your head that you deserve it, you are able to do this, you are going to find and solve the problems of the property, and you are going to get paid well. The toughest part that people have is they go, “I can’t believe I am making this much money. I feel like I am taking advantage of these sellers.”
Sometimes my wife will ask me how my day went and I will talk about the business in a certain way. She is like, “You are immune to money.” I am like, “I am always raising my standards.” Gratitude is important. You need to be thankful for what you have. You always need to be resetting the bar and understand that you cannot let yourself go back to the default. Going back to the whole guilty thing about worrying about making too much money, that is part of affirmations.
Whatever that is, you have to decide how you are going to operate your business and what parameters you want. We do not have time to go into the ethical obligations of you making $50,000, $100,000, or $200,000. Frankly, there are guys who are making $500,000, $1 million, or $10 million real estate deals, laughing at us, and talking about making $50,000 a year.
We hallucinate and assume we know what is best for the seller, what will make the seller’s life better, or giving them more is going to somehow make them happier. It is not true. Stop hallucinating, have conversations with these sellers and see how you can solve their problems.
We did a massive deal up in Riverside, California. It is funny because, in the end, I was not sure I wanted to do the deal because the guy was not sure about the place that he was going to move to. I was making a lot of money. I tried to throw the deal away four times. I have been on the phone with my team because of the way the market is. I want to show them what is possible, and they can do bigger deals.
The guy was like, “I want to do this deal. We are going to do very well on it.” I feel great about it. He feels great about it. It is above that $50,000 mark. I want to encourage you. Reset your internal thing. You are like, “It can’t be that easy.” It is that easy. The less you question this and the less analytical you get, the more money that you will make. We have people who convert wholesale deals here. Their mantra is, “You can’t go back.” Let me talk about that and I will be clear on affirmations.
Is there something specific? Can you give some specific language that has helped you out in the affirmations? Are you just saying, “I do massive deals of X amount?”
I do wholesale deals and make a minimum of $50,000 profit per deal. My deal sizes are ever-increasing and I feel more confident. What you want to do is attach a specific number and also the emotion. My confidence and deal size are ever-increasing and my joy is constantly increasing. If there is some conflict that you feel with that, that is fine.
You got to say it to yourself and speak the truth to yourself of where you are trying to go. If you need to change your affirmations, that is fine. I will say it again. Number one, choose a number. Number two, attach the emotion to it. Those are the two main things. If it does not feel right, say it again until it does feel right. These can be fluid.
The emotion part is critical. If you are living in your parents’ house or on the wrong side of town and if you want to get your kids into the best schools and have the best opportunities, these are the emotions that Todd is talking about connecting to these goals and affirmations. These opportunities happen.
When you get these massive deals, it changes not only your brain chemistry but also the opportunities you have to grow your business, get out of debt, be able to move, and set up a life somewhere you want. It is incredible. Do not just go with a pen and paper. Go through the motions and not attach the emotion to it. You should imagine that the pen has all the emotions that you have bottled up inside you. You are putting it into that piece of paper every single day that you are writing these affirmations.
I created a cheat sheet for how to say your affirmations. That is also in ConvertWholesaleDeals.com. If you want to check that out, that is fine. Let’s talk about number two. This is confidence. This builds on affirmations. You notice the people who make the most money. We did a live event. Someone came up to me and said, “The people doing well have a different aura about them. You and Brent have the It factor.” I am like, “We still put on our pants one leg at a time like you.”
A lot of this comes from intentionally building our confidence. It is intentional that you gain confidence by keeping promises to yourself. From the very fact that if you say affirmations and take that commitment, you are going to build on your confidence. If you tell yourself you are going to work out and you work out, you build credibility with yourself.
There are two ways that you can build confidence. You can build your internal confidence but the other part about this is building confidence with your sellers. If your sellers are confident that you can get the deal done, your price will drastically go through the floor. How do I know this? I have dealt with contractors. I do not know if you have ever dealt with a contractor. I have had my share of good results and bad results. I have shopped for discount contractors on my primary residence.
Sometimes it turned out good. Most of the time, it turned out bad. Long story short, we had a high-end contractor come to our house. He was extremely confident. He talked about all the other things that the other contractors did wrong and focused on himself. I guarantee you this guy has a minimum profit in his mind that he wants to make. Long story short, my wife was like, “I do not care what this guy costs. We are hiring him.” Guess who paid the price that day. It is this guy.
You got to build the seller’s confidence in yourself. That day, the contractor did the best. One of the things that you can do with a seller to build their confidence with you, which also increases your value and enables you to come in at a lower price and make a larger profit, which will, in turn, increase your bank account, is to run the show. This is not for every personality type but it works for 3 out of the 4. You want to get verbal commitments from your seller.
A lot of these people are natural procrastinators. They do not want to fix the property and deal with the tenant, probate situation, foreclosure, taxes, or whatever these problems are. The reason why they are selling to you is that they are a natural procrastinator. They want someone like you to come in, take charge, and tell them what to do step-by-step or at the very least have them come to the conclusion of what to do next.
At every step of the process, you ask the seller, “What needs to happen for us to do business? What is the next step? How do we define that? What is the date and time for you to be able to say yes or no? No is fine. I want to know how we can get on the same page. We can decide if we can do business or if you need to go and list with a real estate agent or another option.”
When you say this, it gives you confidence in two ways. Number one, you feel great because you are not chasing the deal, “I am pushing them away.” Number two, the seller feels great because this guy is a professional. When you get a verbal commitment from somebody, they know that you have been to school. They know, “This guy comes to play.” Brent was a football player. If someone comes in and you sack the quarterback, you are like, “These guys aren’t joking around.” You gain the seller’s respect by getting commitments.
How do you start building up that confidence if you are new to this, you are coming from a different industry, or you have been in the military forever? It is a different kind of confidence. It is the confidence in being able to communicate effectively with distressed property owners. Do you suggest role-playing or scripts? If you talk to somebody that is completely fresh in this thing and they do not have the experience to speak the language, what advice would you give them?
There are three things. Number one is our No Limit Sales System if you go to ConvertWholesaleDeals.com. I am always going to tell you to buy that. I will not apologize because the price is embarrassing for the value that you will get. We will continue to give away everything we can for free. When you educate yourself, your confidence goes up. Even if you do not buy this, if you role play, your confidence goes up. If you are broke, watch these videos. I got 2 or 3 other videos on this channel.
You’ve got to take a chance. You can’t be scared of losing the deal. You’d rather lose a couple of $6,000 deals and get a $90,000 deal.
If you are reading this, you can check out some of the other interviews or training. It is not even an interview. It is more of training that Todd and I did or more specifically Todd did on the Brent Daniels YouTube channel. Check that out.
You can watch those free videos and do awesome. I had a client one time living in his car. I am like, “I am not sure this guy is going anywhere.” He got the stuff, implemented it, and did some deals. He built that himself. Imagine how low your confidence is living in your car. Step-by-step, you build it up gradually. The other part about this, and that is going to be in step number three, is taking chances. You got to be able to take some chances. Going back to confidence, when you are dealing with a seller, you got to learn how to be reluctant and be reluctant while also having confidence.
One of the things I tell new wholesalers is don’t be scared of losing the deal. It is hard to kill a motivated seller. If you kill the deal, you didn’t kill it. It was already dead. You tell it to Mr. Seller, “If I am going to buy your property, I have got to be able to make a profit. If we can come to terms on this and you and I feel good about it, I can take on this project but I am not going to be able to buy at a price where I can’t make money. Knowing that, would it be worth continuing the conversation?”
It is being reluctant with the seller but also being confident to get the deal done, “Maybe I am not the best option for you, Mr. Seller. I know you want $140,000. I can only pay $100,000. If you want $140,000, I can give you the name of three real estate agents who might be able to list it for you.” Do you see how confident I am? They are like, “I can’t believe this guy is telling me to call real estate agents.” I throw it away. If it comes back, it was meant to be.
If I am over there like, “Please, Mr. Seller. Sell to me so I can make $6,000,” they are going to run to the real estate agent anyway, and you are going to live in what I call wholesaler poverty. Do not live in wholesaler poverty. That is the real epidemic going on. You got to have the ability to throw away the deal. Number three falls into this. Go out there and take some chances. You could take a chance by throwing away a deal.
Say, “Mr. Seller, we may not be a fit. You do not have to do business with us.” That is okay but you can also take chances by going lower than you normally would. What is the reason why we do not go low on a deal? We are talking to a seller when negotiating and they say they want $200,000. We come in and offer $100,000. We say that. I do not know about you but I was scared to death to lose a deal when I first got started.
Create that friction to build up that wall that they build up so that they do not want to talk to us anymore. You do not want to offend somebody. The cardinal sin is offending a motivated seller. You lose the deal and then you are frustrated. It attacks your confidence and then you stop writing down your goals. You start thinking all these wild things in your head when you do not have to.
Part of that goes back to confidence. All of these things work together. I say, “Mr. Seller, I know you are asking $200,000. What if I could keep you out on $100,000?” I got a smile on my face. That makes all the difference in the world. If I say, “I am only giving you $100,000.” That is different than saying, “Mr. Seller, I am not saying this is the end goal. What if I could give you $100,000. Is that something that you would even consider or not?” I am showing this confidence but I am friendly. I am giving myself room.
A little bit of this comes with skill. The cushion is finesse. I got a little swagger that will project and the seller can say, “There is no way I would take $200,000. You must be kidding.” I would be like, “You want $200,000. I am at $100,000. What is the lowest you take?” Instead of going up to that, maybe I get that deal at $170,000 where I would have gotten it at $190,000. You have got to take a chance. You can’t be scared of losing the deal. I would rather lose a couple of $6,000 deals and get a $90,000 deal.
A lot of that comes to not only taking a chance on the price but also taking the chance of going after these properties and not overthinking it. As you are driving through the neighborhoods and see a rundown house, and there are a ton of cars in the front of it, write down that address or go to the door if you feel comfortable. Take action right away. If you see a sign that is for sale by the owner and it looks like a rough house, call that sign immediately. Do not overthink it. Take a chance. Every day, you got to be taking chances. These days build on each other.
All of a sudden, you have got confidence and you are achieving the affirmations that you are writing down every day. Those affirmations go from, “I do $10,000, $20,000, $50,000, and $100,000 deal.” This is real life. Taking that chance is another way of saying, “Be super proactive. Do not overthink it.” Do it with the two things that Todd Toback taught my company. We have it on our wall and in our office. It is the number one thing that we point to when we are talking about negotiation. That is certainty and likability.
That is a beautiful mixture. It is the perfect mixture of being able to have that confidence but also being able to have the right tone of voice and build the right rapport and the right relationship so that you are likable. When Todd turned it off there and was talking about how would you take $100,000 as opposed to going right at them and being aggressive, it is a different tone. There is likability there. Likability is the most underrated aspect of this business. If you start working on your certainty and likability, you are going to be unstoppable.
Sometimes we have different styles but those core tenets that we talk about are the same. It is likability and certainty. We talk about these principles in the No Limit Sales System. You can be who you are. Our personalities are different but the same. You are very likable and confident but in a different way. I can’t even put it into words. I love the fact that you talked about how if you see something, go for it.
If you are analytical and love looking at the computer, comps, and spreadsheets, you are going to have to work on this. You can and you will. Those are the people who struggle the most because they want to spend their time analyzing the property and then making an offer based on logic. This is not logic. You need to go on emotion. That is where your affirmations will kick in. If you start looking at a spreadsheet of what you think you should make, that is where your affirmations need to come.
It is the toughest in the beginning. I have seen time and time again. This is the absolute truth in my experience with the people that I have been around, coached, heard from, or reached out to on social media. Once the analyticals get past that threshold and they are taking consistent action, they are beasts. They make the most because they stick to the plan and understand this game. Once they sprinkle or pour in that certainty, likability, and that emotional part of it, it is unstoppable. You can’t get them to shut up.
That is part of it too because they break over that hump and then they are steady. That is when you get dangerous. Let me talk about the fourth and final here. That is when you get a deal, slow the heck down. You sold once. If you are wholesaling, keeping, wholesaling, or flipping, you sell this deal twice. Now is the time when you are dealing with your cash buyers. You need certainty that there is going to be competition right behind them.
You need the certainty that if they do not buy this property, somebody else will. You need certainty that if you do not sell it to this cash buyer, you can take this deal down yourself. You may not be thinking this. You are brand new. I want to let you know that you got $1 million of capital in your network that is ready to flow into your life. You got to know that. Slow down and go back to your affirmations. When you have got a deal, close your eyes and say, “This is what I want to make. This is how I am going to make it.” Once you start talking that way, you start to turn levers.
If you locked up a bad deal upfront, you talk to your seller and push them up. If you are here and not at that, one of the things that have to happen is your seller either has to come down on price or your buyer has to come up to meet your minimum standard. That happens in our company. Know that and slow the heck down. It is not a race to the finish to sell your deal. You have done the work. Put it through the finish line, make $50,000 a day, and move on to the next one.
Those are my four tips for you. There is a lot more. I am excited to go out there. 1) Say your affirmations, write them down, put the emotion, and get the amount. 2) You got to build your confidence. Do that by getting verbal commitments with the seller having confidence in you. Also, you want to have reluctant confidence in that. 3) You got to take chances. You can’t be scared of losing the deal. It is okay to go low. Watch your tonality. 4) Slow the heck down.
ConvertWholesaleDeals.com is the training program. I do not care if you are new or if you have a team of ten acquisition managers. The top people in the country use this training. That is why they are the top companies in the country. Check it out. Todd, you are the man. These four are going to make a huge impact. Thank you so much for that.
To anybody out there that is interested in joining the most proactive group in real estate investing, it is the TTP family. Go to WholesalingInc.com/TTP. Check out what the program is about. If it feels good in your gut, sign up for a call. I would love to work with you personally. Todd, until next time. For everybody out there, I always encourage you to talk to people. Until next time.
- Brent Daniels – YouTube
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About Brent Daniels
Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…
Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!
Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…
A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!