Posted on: August 25, 2020

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!

Key Takeaways

  • Why building your buyers list is everything
  • Why you need to reach out to other wholesalers
  • Why you need to post your deals everywhere
  • What to tell buyers when seller backs out
  • What you should do when sellers breach the contract
  • The safest and most effective way to show buyers a property on the virtual market
  • Why you need a boots on the ground
  • How to approach others if you want to trade buyers lists
  • Why you need to mix and mingle and make great connections
  • Common denominators of great contract assignments
  • How to find the right attorney and escrow officer
  • What he suggests to those who are about to close their first deal

RESOURCES:

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Episode Transcription

Brent Daniels:
Everybody. It is Brent Daniels, Mr. TTP, and I am here with my disposition manager, Billy Bell. Billy, say hello.

Billy Bell:
Hey guys, how’s it going? Good to be back.

Brent Daniels:
So Billy, he 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 here locally based and real quick, he’s going to give you the top three things you need to do to double your deal size. And then, we’re going to break down some questions that I’ve gotten online about dispositions and really deep dive this because listen, when you want to make a huge amount of income in this business, it is all about dispositions and your cash buyer database.

Billy Bell:
Yeah, absolutely man. I mean number one, and it could be all one, two and threes, but it’s so important, build your buyer list. Build it, build it, build it. It’s everything. It brings you deals, it doubles your deal size, it is the only true asset in the business. So by far, number one. The next thing is, is creating frequency in your deals. So reach out to other wholesalers, especially once you do get that list built pretty well, reach out to other wholesalers and say, “Hey, let me advertise your deals for you.” It’s not JVing, it’s not that, but it allows you to put out more deals. It keeps your buyers super engaged there so that when you do send a deal out, they know boom, another deal. Let’s go. Don’t sleep on it. You just need to have that consistency. It’s huge.

Brent Daniels:
Now let me ask you this, because this is different than a lot of guys. A lot of guys will take 50%. You decided to take less than that because you wanted more volumes so that you would get more action on your list, right?

Billy Bell:
Yeah, absolutely. It’s all about volume and that frequency is huge. Also there’s… 50% is a bunch. I work with a lot of guys that don’t have… They’re small guys doing one, two deals a month. I want them to get to the point where they’re sending me three, four, five, six deals a month. So I’ll take… I don’t need a ton of money. I don’t need to take 50% of your deals. Give me flat fee, work it out, whatever works for you guys. Work it out, but make it simple, that they know flat fee, I can put that money, reinvest it and bring you more deals. That’s been huge, man. Huge.

Brent Daniels:
What’s the third tip of the top three?

Billy Bell:
It kind of goes hand in hand, but it’s more about frequency and exposure, but keep posting your deals to Facebook, to Craigslist, everywhere to-

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

Billy Bell:
Man, put it out there anyway.

Brent Daniels:
Put it out there.

Billy Bell:
Put it out there first. Put it out there first, and then you can give your priority buyers first priority, talk to them first, but get that exposure and get that consistency, everything. It’s huge.

Brent Daniels:
Awesome. So I’ve got… Guys, this is really 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 really deep dive. But this question says… From Ryan, it says, “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?”

Billy Bell:
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.

Brent Daniels:
Right, it clouds the title.

Billy Bell:
Number one… It clouds the title. Exactly.

Brent Daniels:
Hey guys, talk to an attorney, real estate attorney, in your area. Have them draft up the appropriate paperwork and just have that conversation with them in your state say, “Hey, listen. If a seller just 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 on that?” Have that conversation, guys it’s worth that hour. Now remember, 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 is the typical or what do the big time wholesalers do to protect themselves from sellers backing out?”

Billy Bell:
And that’s it, so once you do that and you just remind your sellers… It’s not about talking to your buyers about it, you remind your sellers, “Hey, this is the legal agreement here. We’ve got to go-”

Brent Daniels:
Earnest money is in. Escrow is open. Ready, willing, and able.

Billy Bell:
Cover all your bases. Cover all your bases.

Brent Daniels:
Make sure you deposit your earnest money if you are putting earnest money down. Now, guys, 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.

Billy Bell:
This is step two in the business.

Brent Daniels:
So okay, here you go. This is a great one from Shellyann. What’s the most cost effective and safest way to handle showing a buyer a property in a virtual market?

Billy Bell:
So the way I’ve done it is all on trust. That is number one. So you got to have… Especially if your buyers 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, so that’s huge. If they try to go behind your back, they should know, “Hey, guess what? No more deals for me.” I’m sorry, but they 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 just because they know that it’s way more valuable to be an honest person and not to do it in the first place. But again, 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.

Brent Daniels:
Boots on the ground.

Billy Bell:
Boots on the ground. A boots on the ground type of person. You can hire someone off Craigslist. I’ve hired people off Craigslist to-

Brent Daniels:
This is really interesting. Yeah.

Billy Bell:
… do several things in virtual markets. Go take photos for me, go open it up. Jump on the forums and find someone that’s… Dude, you guys got the craziest network of people. Hit up your fellow, TTP peers, “Hey bud, help me out. If we can sell this together, I’ll give you 300 bucks or something.” You know what I mean? Like there are so many different ways. It’s simple. It doesn’t have to be-

Brent Daniels:
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 that’s a really great… They love talk, 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 they don’t want to do Uber, they don’t want to do Lyft, they want to get some extra money, these are the people that you want to work with, but if you can get a retired person, that’s the best.

Billy Bell:
They love it. They love it. And just go on that gigs page, gigs page, hire photographers.

Brent Daniels:
What’s gigs? In the Craigslist?

Billy Bell:
In the Craigslist, there’s a… You can just post little gig, one-off jobs. I paid 50 bucks per trip to the photographers. You can do the same thing. Have someone go in, go take more pictures, do whatever you need. Man, I post stuff even in Indianapolis, where I bought a couple of duplexes here in Phoenix. I’ve been to Indianapolis once a year ago before I bought anything.

Brent Daniels:
Guys again, Billy lives in San Diego.

Billy Bell:
Yeah.

Brent Daniels:
He sells all our deals here. My acquisition managers are typically not going there to meet the cash buyers.

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

Brent Daniels:
Awesome. What do you say to another wholesaler or another investor to trade your buyers list with their buyers list? So 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 2000, 2000 to 5,000, it’s trading with other people in your market so that they get your list, you get their list. Now listen, if you think you only have your buyers on your list, you’re wrong. You are absolutely wrong. They are dating around. They’re seeing everybody. They’re swiping left. I mean, they are going. Or right, or whatever it is. I don’t know. I’m married. So anyway, what do you say to trade up buyers?

Billy Bell:
Again, don’t over complicate it. Do you want to double your deal size? Hey, me too. Let’s trade. Do you want to double your buyers list? I mean, it’s a win-win because there’s no selling to that.

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

Billy Bell:
Well then if you send it out, if you use a good program, like your email program, it’ll tell you how much engagement or how much open rate you have.

Brent Daniels:
Yeah.

Billy Bell:
Look, I’ve got 1,000 buyers and 30% of them open every single one of my emails, at least. Damn. All right, let’s trade.

Brent Daniels:
Have some data behind it. Now, if you’re just building and you 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 are… That you didn’t just like download something and you don’t even know if it’s accurate.

Billy Bell:
Tell them what you’re doing, or find someone that’s on the same page. If you have 100, 150 buyers, find someone else that has 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, “Hey, can I trade you?” And he’s like, “No.”

Brent Daniels:
Right. And also guys listen, all these conferences that we go to, all these meetups that we go to, make those connections.

Billy Bell:
Huge. Yeah.

Brent Daniels:
Remember, 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, so mix and mingle and really 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? Now listen, he’s not an attorney. I’m not an attorney. So definitely review this with your attorney. But there’s a couple of things there that really protect you.

Billy Bell:
There are a lot of different things that we’ve put in there over the years by learning lessons. The tough way again, it’s legally so it gets kind of dense sometimes. But the main things of course is your earnest money. First and foremost is your earnest money with a deadline. Today, by the end of the day at 5:00 PM, if your earnest isn’t in, you’re out of here.

Brent Daniels:
Yeah.

Billy Bell:
And most of the time, we haven’t had to pull the deal, even if they’re a little bit late, but it just shows, “Hey look, there are other buyers ready to go. If your earnest isn’t in, you don’t protect your own deal, it’s going to go to the next guy. Let’s go. Let’s keep it moving.”

Brent Daniels:
That’s huge. What about… Isn’t there a provision in there for the cash buyer has to get their funds in before a certain time before close of escrow?

Billy Bell:
Yeah. Yeah.

Brent Daniels:
Because this is what… One of the biggest issues of all time is if you assign it to somebody else and then they assign it to a buyer last minutes and that buyer’s not ready to close, now you’ve got to push back the escrow, now you’ve got to talk to the seller again, now they think you’re a liar, now it causes-

Billy Bell:
That leads into something else. Again, we’ve learned the hard way that I’ve put it. It’s my favor and best clause in there. It’s a basically no daisy chain clause, not reassignable. Every time you build something in like 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, goes back.

Brent Daniels:
And they lose their earnest money.

Billy Bell:
Yeah, and you forfeit it.

Brent Daniels:
Love it. Love it. Last-

Billy Bell:
That takes care of both things.

Brent Daniels:
Last question. I think that 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 escrow officer.

Billy Bell:
Yeah.

Brent Daniels:
How do you find the right one? And how do you make sure that they stay on it?

Billy Bell:
Again, it comes back to your network dude. Always, always build a network, good rapport. Go to someone that’s killing it, that’s doing several deals a month and just 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 going on three years now.

Brent Daniels:
Yep.

Billy Bell:
Same person, which that’s a lot of… Usually people have turnover in that type of space because they don’t know how to match-

Brent Daniels:
And we went through some others.

Billy Bell:
And yeah, we went through some others, but we just 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. So hey, let’s go.

Brent Daniels:
And it was a referral. It was a referral. It was a referral from somebody in our network. Actually, it was a deal that we had assigned to somebody and they preferred to use this person because they were so amazing. We let it happen because we were in kind of transition and they took the business over, so it was really, really, really great. So anybody starting out in this business, they have their first deal. They have their first deal, they’ve got it. They don’t have any cash buyers. What do you suggest they do in closing here?

Billy Bell:
Well, if you have a good… Well, 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 that you… If you have prop stream, they have that.

Brent Daniels:
Ttpdata.com. Ttpdata.com shows you all the cash buyers in your area. What about posting on social media?

Billy Bell:
Post it on social media, especially in the smaller markets, Facebook Marketplace. I mean, 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 just got to protect yourself. Don’t post the full address until you talk to the person. We’ve been over it before, but yeah, do that. Facebook’s huge, Craigslist is huge. Those are all pretty much free.

Brent Daniels:
Just start calling buyers?

Billy Bell:
Start calling… That’s what I like to do is look up… There’s tons of tools to start calling buyers in that area. That way, you know that they like that area already. So I would start… I mean, it’s easy to post, but then start dialing those people.

Brent Daniels:
You are the man. Guys, if you’re interested in joining the most proactive group in real estate investing, it is the TTP program. Go to wholesalinginc.com/TTP. Wholesalinginc.com/TTP. Check out what the program’s about, scroll down, scroll down, scroll down. 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 guys, I love you. Go talk to people.

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