Posted on: July 14, 2020

Are you an aspiring wholesaler with pressing questions you need expert answers to? Today’s your lucky day as no less than America’s most proactive coach will answer them for you!

In this special episode, Mr. TTP himself, Brent Daniels, answered 10 of the most burning questions aspiring wholesalers have. In addition, he also generously shared some effective tips and insights you can use to get your wholesaling adventure off to a superb start.

If you’re an aspiring wholesaler, consider listening to this episode a must!

Key Takeaways

  1. How to get your ARV if you don’t have PropStream
  2. What to do if there are no comps in the area
  3. Why you need to build your driving for dollars list
  4. How to ensure buyers/sellers don’t back out when they see you’re making a huge assignment fee
  5. Numbers you should keep when using Batch Skip Tracing
  6. Where to get list scrubbed for DNC use
  7. Why it’s important to know who to work for
  8. How to go about building a team
  9. Tax difference between double close and assignment
  10. How to go about text blasting

RESOURCES:

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Episode Transcription

Brent Daniels:
Woo-wee! Hey everybody. It is Brent Daniels, Mr. TTP, known as America’s most proactive real estate coach. Also known as the grownup Dash for The Incredibles. So let’s jump right in, guys. We have 10 questions that I feel need a little bit more explanation, and that’s what we’re going to do. A little side note and a little disclaimer. I am not an attorney, so I cannot answer legal questions. I’m not a CPA. I cannot answer accounting questions. But you have an attorney on your team if you are reaching out to your title and escrow company and reaching out to their in-house counsel. You should be asking them these questions, sitting down with them. If you have any questions about the business, make sure you talk to them. Anything about paperwork, any way about structuring your deal, talk to the attorney at the title company. They’re going to make it as smooth as possible. Or if you’re in an attorney state, talk to your closing attorney. Have that conversation. The more deals you bring them, the more they’re going to work for you really, really hard. So let’s jump right in.

Anifa:
From King Cashton. Number one. “What if you do not have PropStream? Do you add Zillow, Trulia, Redfin, estimates together and divide by three? Is that how you get your ARV?”

Brent Daniels:
Yeah. Great question, and you can definitely do that. Just literally put the address in Google. All three of those will pop up. Click through and go real quick, get the number, get their estimate of value. Add them up, divide by three. Now if they’re way off, if Redfin’s at 150 and Zillow’s at 80, there’s going to be some issues there. So dive deep into that. You can use Redfin. That would be my preferred resource to be able to get in there, but when you’re ready to level up, make sure you get into PropStream. TTPdata.com. Definitely check that out. It’s $97 a month and it gives you everything. So that’s definitely… But keeping it free, keeping it real low cost in the beginning, use those. Redfin is probably the one that I would favor the most because you can, if you scroll down to the bottom of the page, it allows you to adjust the comps to make sure that there’s not any weird outliers on there. So great question. All right. [Anifa 00:02:53], next question.

Anifa:
Okay. So Sergio Onginaga wants to know, “What if there are no comps in the area that are close by or the last house that sold was two years ago?”

Brent Daniels:
Yeah, this happens, especially if you’re going after properties that are a little bit outside of the outskirts of town, a little bit more rural. It’s a little bit tougher. So what you want to do is you want to rely on the real estate agent that specializes in that area, right? Just reach out to him and literally just say, “Hey, listen, I’m buying this property. It needs a lot of work. If it’s totally fixed up, what do you think you could sell it for?” And start building that relationship. Having real estate agents in your squad is so critically important because they can let you know what people are actually buying it for, and if you’re selling to a lot of flippers, that’s the question they want to know, is what’s the most can they sell these properties for once they’re fixed up. Reach out to a real estate agent.
If they’re being rude, if they’re being sassy, just move on. Don’t be intimidated by them. Have a really good conversation. Remember, it’s all about your tone of voice and you got to be likable. So have a really good tone when you call them up. Have some energy and enthusiasm. Don’t feel intimidated by them. They’ll sniff it out in a second. There you go. So the number one best way to understand if you have a deal is put it in front of your cash buyers. Buyers determine value on everything. I don’t care if it’s a tube of toothpaste or if it’s at a house. I’m telling you the buyers determine. It’s not the appraisal. It’s not what an agent thinks. It’s not what you think. It’s what a ready, willing, and able cash buyer is willing to pay.

Anifa:
Is willing to pay for it. Yup.

Brent Daniels:
That’s it.

Anifa:
Boom! Good answer. Good answer.

Brent Daniels:
All right. On to your next question.

Anifa:
Next question is from Kim Curry, and she said, “If I use PropStream for [inaudible 00:04:37] generic cold calling list, should I rule out Driving for Dollars since PropStream has all the vacant homes already on there?”

Brent Daniels:
Kim, listen to me. No. You need to build your Driving for Dollars list. This is where you’re going to get the biggest, juiciest deals. I’m telling you, the ugliest houses is where you’re going to put together incredible deals. So keep building your Driving for Dollars lists, even though you can pull it from PropStream. Remember, you’re not the only one pulling it from PropStream. The only custom list that you can have is you actually putting the sweat equity in, either virtually behind your computer, if you need any instruction on that, check out our video on virtual Driving for Dollars or get in your car and get out there right now. Good?

Anifa:
Good.

Brent Daniels:
Next question.

Anifa:
All right. Next question from Denise Lorraine. “Brent, wondering how you get buyers to not back out when they see your assignment fees or the seller to not back out once they get to the closing table, since you indicated that you have an average of 27K on assignment fees.”

Brent Daniels:
Yeah. We average 27,000 on our deals. I’m telling you, I get this question a lot from the TTP students and just people through YouTube. I think it really needs to be broken down. Here’s the thing. Certainty and likeability, right? That’s going to build your confidence. If you’re certain about your pricing and you’re likable, you’re not a jerk out there in the community, people are going to applaud you for getting really big deals. I’m telling you. If you have a really big deal, have a conversation with the buyer and say, “Listen, we negotiated like crazy with this. This is one in a thousand that we hit a home run on. Do you have any issue with us making a big spread on this deal?” Then just be quiet. If they say yes, if they said no, if they get a little bit wiggly, then move on to the next buyer. Truly. Move on to the next buyer. Don’t let them dictate how much you make on your deals that you negotiated, okay?

Anifa:
Yup.

Brent Daniels:
So that’s from the buyer side. Have that conversation. The bigger your buyers list is, the more backup offers you’re going to have, the more opportunities you’re going to have to make the most amount, and you absolutely deserve it because you are solving problems out here. Now with the seller, you can ask your title company to do what’s called a blind settlement statement where the seller only sees their side of the settlement statement. If your title company or closing attorney doesn’t want to do that, totally understand. Typically the seller doesn’t even look at the buyer’s side. If they do, and they get mad or ask about what the assignment fee is, say, “One of my strategies is to sell to one of my investors that I’ve networked with. They wanted to do the deal, and so I sold it to them.” That’s it.
At the end of the day, the net to the seller is the same. As long as it’s the same, then they’re typically okay. So don’t overthink it. I think a lot of times we think that it’s going to screw it up. Or I think what that question really comes from is you don’t feel like you really deserve that big of a check.

Anifa:
I didn’t want to go there, but that’s definitely confidence.

Brent Daniels:
Right?

Anifa:
Yeah. Confidence. Yup.

Brent Daniels:
You feel like you’re making too much on this deal-

Anifa:
I thought that.

Brent Daniels:
… or you feel like the sellers should be making more, or you feel like the buyers should be getting a better deal. Stop it. You’re hallucinating. You don’t know what’s best for them. They have their own lives, okay? Put it out. See how much you can make on it. You’re providing an unbelievable service. Be confident that you should be doing massive deals as quickly and as often as possible.

Anifa:
Great answer.

Brent Daniels:
Next question.

Anifa:
All right. This one is from Jaylen Foster. “Hey Brent, should I keep all the numbers that come from Batch? They give you seven numbers at a time.”

Brent Daniels:
Yeah, guys. Batch is skiptracing.com. That’s where you go to get the most accurate phone numbers for the addresses that you’re trying to get ahold of. So a lot of times they come back with up to 10 numbers. What we use in our business, we only keep the first three. The way that it works is the most likely number is going to be the first and then second, third, and it’s all a percentage base. So by the time it gets to the seventh or 10th, you’re really wasting your time with dead numbers, faxes, numbers to tenants or other family members. So I only do the first three. A lot of people do just the first five. So you don’t have to do all of them. You would be wasting your time. You’re going to be spinning your wheels. You’re going to be having conversations with people that have no idea about the property. So three to five, that is the key.

Anifa:
Isaiah Jones wants to know, “Brent, where do you get your list scrubbed for DNCs?”

Brent Daniels:
Yeah. Isaiah, great question. dnc.com. dnc.com. That’s where you can. You upload your list, it’ll scrub it and give you back the numbers that are not on the DNC. So, super easy. [crosstalk 00:09:09]

Anifa:
All right. This one is from Wreckin E-N-T. Interesting YouTube name. Anyways. “Hey Brent. I would like to know your thoughts on getting a job as an acquisition associate for a wholesale business into a way of wholesaling.”

Brent Daniels:
That’s great. So first of all, you have to decide who you want to work for. I think this is really, really, really important. I think this is a huge advantage, and I think it’s a really smart plan and a really smart question, because if you can get in and get the experience of working as an acquisition manager for somebody that knows what they’re doing, you’re going to cut your learning curve down incredible. But you have to make sure that the owner of the business and the training and the management and everything is there and is on point. You don’t want to get in there with the expectations that you’re going to get this amazing mentor that’s going to help you out, but their golfing seven days a week and never there, right? This happens all the time in real estate, all the time in wholesaling. You get to the point, people want financial freedom.
Once they get the financial freedom, they have freedom of schedule. So I would say, find somebody that’s on their way up. Maybe somebody that hasn’t made it to that million, two, three, $10 million business yet. Catch somebody when they’re at their 500,000 to $800,000 business, because they’re still in it day-to-day. They’re going to pour into you more and you’re going to see that business grow and you’re going to be a part of it. It’s going to really feed that part of you that wants to grow and learn and do something special in this business. So find somebody that’s not all the way at the top, because they’re not going to have time for you. They’ve already made it. Find somebody on the climb up.

Anifa:
Smart.

Brent Daniels:
What I would say is go to, once everything gets loosened up, if you can go to real estate investing associations-

Anifa:
Groups.

Brent Daniels:
… meet up groups, or find the groups that are online. Reach out to the admins of the Facebook groups that are fix and flip groups, real estate investing. See who is looking for a really good acquisition manager. And then, here’s the thing. It’s your choice. Don’t just go with the first one. Make sure it feels good in your gut and make sure that you see and meet the other people that work there and see what they think about the culture of that business, because you don’t want it to crush your soul and your dreams working somewhere that they just don’t care about you.

Anifa:
That’s very-

Brent Daniels:
Anifa.

Anifa:
Gustavo Rasto wants to know, “Can you go over building a team?”

Brent Daniels:
Gustavo. Great. Building a team. It’s really building a business, but here’s the thing. First thing first. Don’t put this in front of you going out every single day building your lead pipeline and getting deals and getting income for yourself. This business is made. This is a cash machine. This is a lottery. Guess what happens with cash machines and lotteries? They pay you. They pay you. They pay you. So make sure that profit is first in your business. If you really want that to be concrete in your mind, get the book Profit First. Read through it. You’re going to understand. Now if you’re building a team, what I like to do is first take the operations and the organization off of your plate. You can do that with a VA. I do it through upwork.com. You can get a VA that can go through your email.
They’re going to organize your lists. They’re going to make sure everything’s organized in your dialer. They’re going to make sure that your lead pipeline is organized. They’re going to deal with your CRM. They’re going to do all these things for you. So start there. And then the next step is, what are you best at? Are you best at knee-to-knee, belly-to-belly with the seller, but you hate selling your deals or do you love the action of selling the deals and you hate going into all these, distressed property owners and all their emotions and all that? So decide which one you are. If you are the one that loves being with the seller, stay there and hire a disposition manager, okay? They’re going to build your buyer base, your cash buyer base. They’re going to sell your deals. They’re going to handle everything there.
If you don’t want to deal with the seller, then you become the disposition and hire an acquisition manager. So that’s where I want you to start. We can definitely deep dive the way that my team is in a different video, but I don’t want you to start thinking about hiring before you have made $30,000 net to you a month for three straight months. Got it? Two more questions.

Anifa:
Two more questions. Second to last, from Scott Morango. Sorry if I pronounced that wrong. “Can you please explain further the tax difference between a double close and a sign?”

Brent Daniels:
Well, again, obviously guys, I’m not a CPA, but I will tell you what my CPA told me. The CPA told me that there is a difference in the tax liability between an assignment and a double close, because the double close you are taking ownership of the property. You’re going to deal with short term capital gains. With an assignment it is fee income. I’m not an attorney and I’m not a CPA. So definitely reach out to your CPA. It’s one conversation and call them and see what their thoughts are on it. And the last question, Anifa.

Anifa:
Sabrina Martinez wants to know, “Do you verify the number before text blasting, like call and confirm the voicemail, or just blast and adjust?”

Brent Daniels:
No, just blast it out because of the cost. I mean, we use a batchleads.io for a dollar. If you use the TTP code, you can get 500 free texts and test it out and see the field. But the cost is so low for texts that just text out and get the response and then filter it from there. Don’t go through the process of just wondering if these are the right numbers. The best way to do it, text them, have them respond, and then you know. So don’t go through the extra hoops. Remember we want progress, not perfection. Progress, not perfection. Get it out there. See what’s going on, and you got this.

Anifa:
[crosstalk 00:14:50].

Brent Daniels:
Great questions today, gals.

Speaker 5:
Yes, it was really good.

Brent Daniels:
Yeah.

Anifa:
I liked it.

Brent Daniels:
Any final thoughts?

Anifa:
Let’s get out [inaudible 00:14:59].

Brent Daniels:
If you’re interested in joining the most proactive group in real estate [inaudible 00:15:01] the TTP program, go to wholesalinginc.com/ttp. Check it out. If it feels [inaudible 00:15:09] in your guts…

Anifa:
Then go with it.

Brent Daniels:
Sign up for a call. All right, guys. I love you. Until next time. Talk to people.

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