Posted on: August 25, 2020
WI 500 | Double Your Deal Size

 

If you’re looking for effective ways to double your deal size, you’ve come to the right place. Today’s rockstar guest shared 3 top ways to double your deal size and then some!

Billy Bell is Brent’s amazing dispositions manager. Billy also owns Bell R.E.I., a reliable source for deeply discounted and off-market investment properties. Regardless if you’re looking for fix and flip opportunities or rentals to build your portfolio, Billy has a steady supply of properties at reasonable prices.

In this episode, Billy shared a lot of information and tips of massive value. Aside from learning how to double your deal size, you’ll also learn key tips that will not only guarantee your success but will also give you peace of mind (hint: you’ll know how to protect yourself when the seller backs out).

If you’re looking for effective tips from the person who single-handedly increased Brent’s average profit for each deal from $12,000 to $27,000, this episode is for you!

The Top 3 Ways To Double Your Deal Size! With Billy Bell

Episode Transcription

I am here with my Disposition Manager, Billy Bell. Billy, say hello.

How’s it going? It’s good to be back.

Doubling Your Deal Size

Billy lives in San Diego and he does dispositions for my company here in Phoenix. He also does dispositions for a lot of different companies that are locally based here. He’s going to give you the top three things you need to do to double your deal size. We will break down some questions that I’ve gotten online about dispositions and deep dive into this. When you want to make a huge amount of income in this business, it is all about dispositions and your cash buyer database.

It could be all 1, 2, 3, but it’s so important. Build your buyer list. It’s everything. It brings you deals, doubles your deal size. It is the only true asset in the business. By far, it’s number one. The next thing is creating frequency in your deals. Especially once you get that list built pretty well, reach out to other wholesalers and say, “Let me advertise your deals for you.” It’s not JV-ing, it’s not that, but it allows you to put out more deals. It keeps your buyers super-engaged that they’re still there. When you do send a deal out, they know. Another deal. Let’s go. Don’t sleep on it. You need to have that consistency. It’s huge.

Let me ask you this because this is different from a lot of guys. A lot of guys will take 50%. You decided to take less than that because you wanted more volumes, so you would get more action on your list.

It’s all about volume and that frequency is huge. Fifty percent is a bunch. I work with a lot of guys who are small guys doing 1, 2 deals a month. I want them to get to the point where they’re sending me 3, 4, 5, 6 deals a month. I don’t need a ton of money. I don’t need to take 50% of your deals. Give me a flat fee. Work it out, whatever works for you. Make it simple that they know that I can put that money with a flat fee, reinvest it, and bring you more deals. That’s been huge.

What’s the third tip of the top three?

It goes hand in hand, but it’s more about frequency and exposure. Keep posting your deals to Facebook, Craigslist and everywhere.

Even if you’ve got some buyers that are hot on it in five seconds?

Put it out there anyway. Put it out there and you can give your buyers first priority. Talk to them first, but get that exposure and get that consistency, everything. It’s huge.

Questions From The TTP Family

This is important. I’ve got some killer questions here from the TTP family in the private TTP group that we have. Anybody that joins the TTP Program has access to this unbelievable group where we deep dive. This question is from Ryan, “When a seller backs out of a contract with you, what do you say in an email to your buyers that you sent the deal out to?”

First of all, before you even get to that point, you have to record a memorandum of sale. If a seller starts to get shaky, record a memorandum of sale. I’m sure it goes by a similar term all across the country. There are similar things you can do. That way, it records your contract so they can’t back out without going through you first.

It clouds the title. Talk to a real estate attorney in your area. Have them draft up the appropriate paperwork and have that conversation with them in your state. Say, “If a seller decides that they don’t want to honor the agreement. If they’re going to breach this contract that we have signed, what happens? What can I do to protect myself from that?” Have that conversation. It’s worth that hour. Also, you can go to the title companies. Remember, this is the hot tip. Closing attorneys, title companies, go sit down with their in-house counsel. Say, “What do the big-time wholesalers do to protect themselves from sellers backing out?”

Once you do that, it’s not about talking to your buyers about it. You remind your sellers, “This is the legal agreement here. We’ve got to go.”

Earnest money is in and escrow is open. Ready, willing and able.

Cover all your bases.

Make sure you deposit your earnest money if you are putting earnest money down. If this is going above your head, don’t worry about it. Come back to this when you get a deal because I know a lot of you guys out there are having those quality conversations with distressed property owners, and you’re building up that lead generation.

This is step two in the business.

This is a great one from Shellyann. “What’s the most cost-effective and safest way to handle showing a buyer property in a virtual market?”

WI 500 | Double Your Deal Size

Double Your Deal Size: Put a deadline on your earnest money. There are other buyers ready to go. If your earnestness isn’t in and you don’t protect your own deal, it’s going to go to the next guy.

 

The way I’ve done it is all on trust. That is number one. Especially if your buyer’s list isn’t that big, you should know who your buyers are. You should have talked to them. You should have trust, a little bit of rapport with them. That’s huge. If they try to go behind your back, they should know, “No more deals for me. I’m sorry,” but you’ve got to realize that that’s the consequence. We’ve maybe lost one deal out of hundreds because of this, so I don’t worry about it too much because they know that it’s way more valuable to be an honest person and not to do it in the first place.

If this is a problem, if you do need a solution for this, there are so many different ways you can get an agent on your team that can go out, a boots-on-the-ground type of person. You can hire someone off Craigslist. I’ve hired people off Craigslist to do several things in virtual markets like go take photos for me, go open it up. Jump on the forums and find someone. You guys got the craziest network of people. Hit up your fellow TTPers, “Bud, help me out. If we can sell this together, I’ll give you $300 or something.” There are so many different ways. It’s simple. It doesn’t have to be crazy.

A tip with that is if you get onto Craigslist and you look for people that are willing to take photos or if you post an ad about getting a photographer out there, you can build a relationship in any market with that person to not only take pictures but you can also train them up. Have that photographer go out there and start building some rapport. Find somebody who’s great.

They love talking and they’ve got a lot of time. A lot of times, if you get an older retired person or somebody that maybe has crazy hours and don’t want to do Uber, don’t want to do Lyft, they want to get some extra money, these are the people that you want to work with. If you can get a retired person, that’s the best.

They love it. Go on that Gigs page and hire photographers.

What’s Gigs?

On Craigslist. You can post little gigs, one-off jobs. I paid $50 per trip to the photographers. You can do the same thing. Have someone go in, go take more pictures, do whatever you need. I post stuff even in Indianapolis, where I bought a couple of duplexes here in Phoenix. I’ve been to Indianapolis once before I bought anything.

Billy lives in San Diego. He sells all our deals here. My acquisition managers are typically not going there to meet the cash buyers.

Build your buyer list. It’s everything. It brings you deals and it doubles your deal size. It’s the only true asset in the business.

It’s simple. I know it seems crazy, and you want to protect your deal and all of that, but it’s simple. Don’t overthink it. Hire someone, take care of them, and be cool with them. It’s easy.

What do you say to another wholesaler or another investor to trade your buyer’s list with their buyer’s list? This is a tactic that we talk about all the time. If you want to go from 500 to 1,000, from 1,000 to 2,000, 2,000 to 5,000, it’s trading with other people in your market, so they get your list, you get their list. If you think you only have your buyers on your list, you are absolutely wrong. They are dating around. They’re seeing everybody. They’re swiping left or right, or whatever it is. I don’t know. I’m married. What do you say to trade up a buyer’s list?

Don’t overcomplicate it, “Do you want to double your deal size? Me too. Let’s trade. Do you want to double your buyer’s list? It’s a win-win because there’s no selling to that.”

What if they say, “How good is your list?”

If you send it out, if you use a good program like your email program, it’ll tell you how much engagement or the open rate you have, “I’ve got 1,000 buyers, and 30% of them open every single one of my emails, at least.” “Let’s trade.”

Have some data behind it. If you’re building and don’t have that data yet, let them know what you’re doing to build that cash buyer database. Let them know the efforts that you didn’t download something and you don’t even know if it’s accurate.

Tell them what you’re doing or find someone that’s on the same page. If you have 100, 150 buyers, find someone else with 100, 150 buyers. You guys are straight-up traders somewhere close, that way, they’re in the same boat as you. You’re not going up to Mr. Bigshot, “Can I trade with you?” He’s like, “No.”

We go to all these conferences and meetups to make those connections. It’s not the speakers on stage that are going to give you the most. It’s the people in the crowd with you that are. Mix, mingle and make those connections. You’re going to find friends for life, and you’re going to find people that are going to trade up your list with you. What should all great assignment contracts have? What are some little tips? He’s not an attorney and I’m not an attorney, so definitely review this with your attorney, but there are a couple of things there that protect you.

There are a lot of different things that we’ve put in there over the years by learning lessons the tough way. It’s legalese, so it gets dense sometimes, but the main thing is your earnest money. First and foremost is your earnest money with a deadline. By the end of the day at 5:00 PM, if your earnest isn’t in, you’re out of here. Most of the time, we haven’t had to pull the deal, even if they’re a little bit late, but it shows, “There are other buyers ready to go. If your earnest isn’t in and you don’t protect your own deal, it’s going to go to the next guy. Let’s go. Let’s keep it moving.”

That’s huge. Isn’t there a provision in there where the cash buyer has to get their funds in before a certain time, before the close of escrow?

Yes.

One of the biggest issues of all time is if you assign it to somebody else and they assign it to a buyer at the last minute, and that buyer’s not ready to close, now you’ve got to push back the escrow. You’ve got to talk to the seller again and they think you’re a liar.

That leads to something else. We’ve learned the hard way that I’ve put my favorite and best clause in there. It’s a no daisy chain clause, not reassignable. Every time you build something in this, you can’t say, “Don’t do this. It needs to have an immediate consequence. If you do this, if you try to reassign this, immediately void, and it goes back.”

They lose their earnest money. It’s released.

You forfeit it. That takes care of both things.

Last question. This is absolutely critical because without this, your business is going to be running at about 65%, and that other 35% is picking the right closing attorney or an escrow officer. How do you find the right one? How do you make sure that they stay on it?

It comes back to your network. Always build a network, good rapport. Go to someone that’s killing it who’s doing several deals a month and figure out who their escrow officer is. Ask them to share it with you. That’s how we got ours, and we’ve been with the same person for a few years now. That’s a lot. Usually, people have turnover in that type of space because they don’t know how to manage that.

We went through some others.

We found a big guy that was doing so many deals. Not a lot of escrow officers know how wholesale works. We found one that specializes and does a bunch of wholesale deals. Let’s go.

It was a referral from somebody in our network. We had assigned a deal to somebody, and they preferred to use this person because they were so amazing. We let it happen because we were in transition and they took the business over, so it was great. For anybody starting in this business, they have their first deal, they’ve got it, and don’t have any cash buyers, what do you suggest they do in closing here?

It’s your first deal, so you probably don’t have a relationship with a title company yet. A lot of times, they’ll have buyers, but you can go on tax records. There are tons of them. If you have PropStream, they have that.

TTPData.com shows you all the cash buyers in your area. What about posting on social media?

Post it on social media, especially in the smaller markets like Facebook Marketplace. We live in a big market but especially the small, medium-sized ones. I hear people that only use that and they kill it. The only thing is, you got to protect yourself. Don’t post the full address until you talk to the person. We’ve been over it before. Do that. Facebook and Craigslist are huge. Those are all pretty much free.

Start calling buyers.

That’s what I like to do. I look up. There are tons of tools to start calling buyers in that area. That way, you know that they like that area already. It’s easy to post but then start dialing those people.

You are the man. If you’re interested in joining the most proactive group in real estate investing, it is the TTP Program. Go to WholesalingInc.com/ttp. Check out what the program is about. Scroll down. There are a lot of testimonials. Nobody has more testimonials. I’m telling you that. If it feels good in your gut, sign up for a call. I look forward to working with you personally. Until next time, I love you. Go talk to people.

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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!

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