Posted on: October 29, 2020

Today’s episode is part one of the conversation between two of wholesaling’s best—Brent Daniels and Pace Morby. With that said, expect this episode to be absolute fire!

Pace has graced the Wholesaling Inc. podcast countless times and with good reason. Apart from being one of the smartest guys in the business, he’s also a proactive, versatile, and dynamic real estate investor and wholesaler who’s always willing to share his secrets and strategies with the world.

If you want to know some next level strategies that can effectively maximize every lead in your database and turn them into lucrative deals, this episode is for you!

Key Takeaways

  • What every deal starts with
  • What the holy trinity of the wholesaling business is
  • What his 2-minute conversation with himself is
  • Why he says “catch me up to speed” and why it’s important
  • How he builds rapport
  • The importance of squadding up
  • Script he uses personally

RESOURCES:

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Episode Transcription

Darrin Bentley:
Hey guys, Darrin Bentley here. In today’s episode, what you are about to listen to is absolute fire. In fact, there is so much gold in today’s episode that we decided to break it up into two parts. So, today is part one of a two-part series featuring Brent Daniels and Mr. Pace Morby, who if you don’t know, is probably one of the smartest guys out there today when it comes to creative real estate deal-making. I mean, he’s awesome. In fact, Pace is typically doing anywhere from 15 to 25 deals per month, every single month.
So in this two-part series, he’s going to break down the super simple secret to converting more leads into more deals. Because at the end of the day, that’s what we all want, right? We want more deals and that’s exactly what you are going to get out of this two-part series.
Pace is going to share some next level strategies for converting what you thought were dead leads into some highly profitable and very lucrative real estate deals. So grab a pad, grab a pen or a pencil or even a crayon, whatever it is that you need to write with and get ready to take some good notes, because Pace is going to show you how to maximize every single lead in your database. So, you are not going to want to miss this. Now, let’s get into part one.

Brent Daniels:
Welcome everybody to the Wholesaling Inc Podcast, America’s number one podcast for new real estate investors. Because we know that finding discounted properties is the most proven path to financial freedom. I am your host, Brent Daniels, Mr. TTP, and I am telling you if I can do it, so can you. So, let’s get started.
I am telling you, you need to stop the car, you need to get off the treadmill, you need to get a pen and a pad of paper and you to get ready to take notes, because I have with me one of the most proactive, one of the most dynamic, one of the most versatile real estate investors/wholesalers/creative deal maven here with me, Mr. Pace Morby. What’s up, brother? How are you?

Pace Morby:
What’s up, brother? Guys, by the way, I’m also a TTP alumni.

Brent Daniels:
That’s right.

Pace Morby:
You can’t leave that out.

Brent Daniels:
Right.

Pace Morby:
I’m a TTP alumni, I love the TTP family.

Brent Daniels:
This whole podcast, the main reason that we do this is to give people the tools out there so that they can be successful and realize their real estate investing dreams, but it starts with sourcing deals.

Pace Morby:
Right, 100%.

Brent Daniels:
Right? So that breaks down to three parts, lead generation, conversion and exit strategy, okay? Or what we call in the wholesaling world, disposition, right?

Pace Morby:
The Holy Trinity, guys. That’s what it is, it’s the Holy Trinity.

Brent Daniels:
It is. That is the three legs of the stool that your wholesaling business is built on. But let’s not talk about lead generation, because we talk a lot about that with TTP and with different marketing channels, and going out there and either buying leads or waiting for them or getting referrals or earning them through being proactive. But what we’re really talking about on this podcast specifically is converting the leads that we have.

Pace Morby:
Right.

Brent Daniels:
It starts with a really important question. When you show up at an appointment, you mentioned that you say right off the bat, catch me up to speed.

Pace Morby:
Right. So if I could go back in a time machine and talk to myself when I first started in wholesale, I would take everything I learned along the way and condense it into a two minute conversation to myself. That two minute conversation would sound something like this. It would say, your job here is not to earn a commission, your job here is to solve the seller’s problem.

Brent Daniels:
Right.

Pace Morby:
So instead of you trying to talk about the house and the this, and the that, you have to realize it’s never about the house.

Brent Daniels:
Right.

Pace Morby:
It’s never about any of that stuff, it’s the seller as an individual and what they’re trying to accomplish. They need to get from one side of the canyon to the other side of the canyon, and you need to build that bridge.

Brent Daniels:
Right.

Pace Morby:
Ultimately the questions you ask, the way you structure the conversation is how you build that bridge. When I’m out there showing them I’m building this bridge by asking these questions, the seller is way more likely to go with me than another wholesaler. It’s like, well, I’m trying to negotiate through this used car sales mentality. Which I know you don’t teach, which is why you and I vibe so much.

Brent Daniels:
Right.

Pace Morby:
So I have four questions that I commonly ask, and then from that point, there’s other questions as it goes forward. But the first question always is catch me up to speed.

Brent Daniels:
So, have you talked to these people before? This is something that your team has got. What about, let’s just go to somebody that is sourcing their own deals, right? So I’ve cold called somebody, I’ve talked to them, I’m meeting with them now, we’re going face-to-face, and I say, “Well, catch me up to speed.” Right? Because we can still use it or no?

Pace Morby:
Always.

Brent Daniels:
Yeah.

Pace Morby:
I always do that. So even if it’s just three days later, you talked to them a week ago and you cold called them and they said, “Yeah, reach back out to me in a couple of days,” I always say, “Catch me up to speed.”

Brent Daniels:
Right.

Pace Morby:
Right? Why? Because it’s an ambiguous open-ended question, it sometimes also catches the seller off-guard, where like, “What do you mean catch you up to speed?” Well, you’re in the process of potentially selling your house, so what does that look like? Who have you met with? Why haven’t you accepted an offer? Where are you trying to move to? Have you found your next … catch me up to speed.

Brent Daniels:
Yeah.

Pace Morby:
Then I let them tell me the whole story of exactly what does that canyon look like that they’re trying to bridge. Then I start picking out things that I know I can solve by bringing value back to them.

Brent Daniels:
So we talk about every time that we’re talking with a distress property, because this is the important thing, right, there has to be some motivation there. I know that you are the master of the creative financing deal, so maybe you dip more into some of these traditional sellers a little bit. But for the most part, we talk about on this podcast on the show, 6% to 10% of the market is in distress at all times, anywhere around the country. Okay, and that’s what we target, right?
So these are people that do have that canyon, right? So they’ve got some issue there, but they’re not necessarily wanting to tell us, because they don’t know who we are. They’re not real estate agents, they’re investors. Are they going to come in? Are they going to be fair with me? Are they going to low ball me? Are they going to take advantage of me? All of these things are running through their head as you’re talking, and what you do masterfully is you set yourself up as, hey, tell me about how I can help you, right? I mean, that’s essentially the platform that you’re working on. Not only that, can I even help you? Am I the right person for helping?

Pace Morby:
100%.

Brent Daniels:
Right? Because you’re putting it on the back foot and you’re saying, “Listen, I’m not going to come in and sell you on working with me. I want you to explain to me the situation that you’re in, and if I can help, I’m going to give you some options. If it feels like it makes sense, then we’ll work together.”

Pace Morby:
Mm-hmm (affirmative). How do I come in and fit into this puzzle? I say the word puzzle, because in my mind, I’m trying to make sure that if I’m going to put a puzzle together, I want to aggregate and get all my puzzle pieces in a row. Because have you ever done a puzzle just to get down the end and go, I’m missing three or four pieces. Gosh, dang it. I spent all this time.

Brent Daniels:
Yeah.

Pace Morby:
That’s what happens with wholesalers. They go down this process and they get to this point, they’re like, “I’m stuck. I don’t know where to get the seller to move forward.” I’m like, “Because you didn’t pick up all the pieces in the very beginning.”

Brent Daniels:
Right.

Pace Morby:
So my job, when I ask catch me up to speed is I’m gathering who are you talking to? Because other wholesalers as well that aren’t trained properly, they get all the way down to the end and then the seller says, “Oh, I’m going to list with my real estate agent.”

Brent Daniels:
Right.

Pace Morby:
I didn’t know you were talking to a real estate agent.

Brent Daniels:
Right.

Pace Morby:
Right? That’s a newer person that will run into those issues, or they decide to go with another wholesaler, right? Why did I not know that other wholesaler existed? So for me, I’m getting all the pieces together. That could be who you’re talking to, why are you moving? What are you currently running into? Why haven’t you moved already and why haven’t you accepted another offer? What can I bring of unique value to you?

Brent Daniels:
Love it.

Pace Morby:
How can I show empathy to your situation and provide a unique token of value to you?

Brent Daniels:
Yep.

Pace Morby:
That’s essentially my goal.

Brent Daniels:
Well, and I think it’s important, because I hear it often, especially with people just starting out, that these sellers keep lying to me or they’re not telling me enough, they’re being real short with their answers or whatever else. Well, I know it’s because you’re not asking the right questions.

Pace Morby:
You’re actually giving them permission to lie to you.

Brent Daniels:
Yes.

Pace Morby:
In the very first five minutes, I always establish the fact that I know that you’re talking to a dozen other people. It’s impossible in wholesale for you to talk to a seller that hasn’t been reached out through text message, blah, blah, blah, blah, blah.

Brent Daniels:
Sure.

Pace Morby:
So the person who wins is the person who brings all of the pieces to the table, figures out what kind of puzzle they’re trying to create and then helps that seller create that puzzle. So if you haven’t asked real estate agent questions, wholesaler questions, or maybe even other investor, why aren’t you renting the property out?

Brent Daniels:
You told a fantastic story about your wonderful wife, Laura, really busting you down after an employment where you went in and you wanted to build rapport and you wanted to talk for hours and hours and hours, but what was the missing thing? I mean, really touch on that.

Pace Morby:
So I had an appointment, this is about four years ago, something like that, that I went to the appointment, I was there for two hours, I’m like, “Dude, this guy loves me.” How many guys have felt this way?

Brent Daniels:
It’s in the bag.

Pace Morby:
“Oh my God. This guy loves me.”

Brent Daniels:
Yeah.

Pace Morby:
Meanwhile, I didn’t actually understand his whole situation, I just built rapport, talked about his thing. His wife passed away five years ago. What have you been doing since then? Rapport, rapport, rapport, rapport, rapport. Now, I’m in the friend zone. In the friend zone there ain’t no money, okay? So, I want to be in the consultant zone where I make money. So I can be friendly, but I don’t want to be your friend.

Brent Daniels:
Right.

Pace Morby:
So, I don’t build rapport. Anyway, so here’s what happened. I go to that appointment, I’m feeling so confident. I call my wife, who was my transaction coordinator at the time.

Brent Daniels:
Yeah.

Pace Morby:
“Hey babe, we’re going to this appointment in three days, we’re going to lock this guy down.” We go to the appointment, I-

Brent Daniels:
Calling your shot.

Pace Morby:
Oh yeah, I got it. I’m calling the shot. Book Babe Ruth, right? It’s going right field. So my wife comes, we’re there an hour and a half. We leave the appointment without the contract and it’s another follow up thing, and my wife says, “You lost that guy 15 minutes into the appointment.” I go, “Into this appointment?” She goes, “No, your first appointment. You didn’t establish credibility.”

Brent Daniels:
Credibility.

Pace Morby:
That’s the thing. So I don’t build rapport, this is one of the things I teach, I don’t build rapport by being friendly, I build rapport by showing credibility.

Brent Daniels:
Yep.

Pace Morby:
I show credibility by aggregating the puzzle pieces, spreading them out with the seller saying, “Okay, I understand what you’re trying to do here, let me see what I can bring to you in terms of value.” That can be as small as … let’s talk about a couple of specifics on value. It could be, oh, you have all this stuff in your house, why don’t just keep it and let me buy it with all this stuff in it?

Brent Daniels:
Right.

Pace Morby:
Right? It’s small as that.

Brent Daniels:
Yeah.

Pace Morby:
I mean, you’re going to trash the house anyway, it doesn’t really cost your end buyer that much more money.

Brent Daniels:
Right.

Pace Morby:
So if you’re going to wholesale it, just leave it in there. It could be that small. We all know about that. What about moving expenses? What about probate services? What about helping them find another place to go or helping them find a rental? I mean, those are four of maybe 50 things I can name on and on and on in terms of value that you can give to somebody.

Brent Daniels:
Mm-hmm (affirmative). Mm-hmm (affirmative). Oh, I say there should never be an excuse, there should be all the little things that they send up, all the little objections for not taking action now, because you know as well as I do that time kills all deals.

Pace Morby:
Right.

Brent Daniels:
Right? If you can’t shorten their ability to make a decision, then they’re going to go with somebody else. Nine times out of 10, they’re going to go with somebody else that knows, that comes in with different solutions. It could be just as much as I don’t want to leave yet because of all this stuff, I don’t want to leave yet because I don’t know where to go, I don’t want to sell this yet until I get a few other offers, right?

Pace Morby:
Right.

Brent Daniels:
They want to feel warm and cozy with what the process is going to look like.

Pace Morby:
That’s another one too. So let’s say a seller says, “Well, I’ve got all these offers coming.” I go, “Great. How can I help you with that?”

Brent Daniels:
Yep.

Pace Morby:
I go, “Even if I end up not buying the house from you, I’d love to at least tell you whether these offers are credible or not.”

Brent Daniels:
Yeah.

Pace Morby:
Do they have the right earnest money? Do they have the right title company? Are they a one-page contract or is it written on a napkin? If I’m not the buyer for you, and it very well may be the possibility I’m not a buyer for you, at least let me show you where there’s a credible buyer and who’s not.

Brent Daniels:
Yep.

Pace Morby:
So if your job, which is to decipher all these offers to ultimately make a decision, there’s nobody better than an actual real estate investor to help you decipher which one is real.

Brent Daniels:
I think that leads into the second question, is what are you hoping to accomplish?

Pace Morby:
Right, 100%.

Brent Daniels:
Right? What are you hoping to accomplish? Because we go in, we’re like, “Well, they just want to sell their house for cash.”

Pace Morby:
No, not even close to the case.

Brent Daniels:
Right?

Pace Morby:
Right.

Brent Daniels:
So, what does that question open up in the minds of a distressed property owner?

Pace Morby:
So last night I did a seller call for one of my students, and he’s like, “She’s on the cusp, she’s ready to go. Da, da, da, da, da. Can you please talk to her? I got to get her over the edge.” I’m like, “Sure. I’ll talk to her.” So same thing, catch me up to speed. I always play stupid. So if you’re listening to this and you are hearing us talk about all these solutions and you’re brand new, you don’t need to have all the solutions, you need to know somebody in your local market who has all the solutions.

Brent Daniels:
Right.

Pace Morby:
So go squat up, that’s one of the most important things ever. Go find a TTP student, go find a sub-to student, go link up with somebody that’s been trained by Brent Daniels at Wholesaling Inc, otherwise you’re going to feel that intimidation of what do I have to offer? What you have to offer is a relationship with somebody who has value, right? Moving expenses or whatever it may be, whatever the value is. So-

Brent Daniels:
Or just the experience.

Pace Morby:
Just the experience.

Brent Daniels:
Just being able to understand if you’re spinning your wheels. Because that’s a tough thing. When you start out, you don’t know if it’s a deal or not a deal.

Pace Morby:
Right.

Brent Daniels:
Right? Having somebody in your local market to squat up with, to run the comps, to understand what properties on busy streets go for versus properties that are in the middle of neighborhoods-

Pace Morby:
Or one side of Thomas or the other side of Thomas Street, or whatever, right?

Brent Daniels:
Right. Yep, yep.

Pace Morby:
So I had somebody DM me, or not DM me, text me here in our local market and they say, “I have a 2:00 buy appointment. This guy has major problems. Can you come?” I’m like, “Bro, I’m super busy. I have my whole day planned out to the minute. If you can push it to 6:00, I can make it work.”

Brent Daniels:
Yeah.

Pace Morby:
So, I’m trying to help people out. Even people your level, my level are always willing to help you, or have somebody on our team help you.

Brent Daniels:
Right.

Pace Morby:
Right? So I have a whole acquisition team, like Tino and Zach and all these other guys and Nick that will go out on appointments to help people in our local markets. So, don’t ever feel intimidated. Wholesalers in your local market will want to squat up with you and then they can also help you find a buyer.

Brent Daniels:
Yeah, and like you said, find the people that are a TTPer, Wholesaling Inc. Whatever it is, find somebody that is really serious about it that is in these mentorships, these programs, these families, because they know we preach so hard to squat up, squat up, squat up, because it works. It’s a win-win for everybody in that, it benefits everybody to do it.

Pace Morby:
It’s so simple. I feel like I’m going to high school, because I’m just hanging out with my friends, we’re going to lunch together, we’re having a good time. That’s how simple it is. People want to over-complicate it. You want to go into your local market, if you’re a TTPer you should go into the TTP Facebook group and say, my goal is to go create a bunch of problems with a seller that I am not equipped to get, and I’m going to ask my other TTPers to say, come help me, go to the appointment or go whatever.
So I told somebody, big piece of advice I gave them this morning, is I said, your job is to go create problems you can’t solve and bring those to people who can.

Brent Daniels:
Right, right.

Pace Morby:
You just need to broker problem solve a lot, right? So, essentially catch me up to speed shows me all the puzzle pieces, I get the story, and then what are you trying to accomplish tells me what that puzzle’s supposed to look.

Brent Daniels:
Right.

Pace Morby:
Now, we can start assembling it and having a conversation. Okay, I see all the pieces, I see what you’re trying to accomplish, let’s start assembling this together. Okay, so you got to go find a house, we’ve got a deal up in Colorado right now. Seller says, “Well, I can’t sell until I find another property to move into.” I go, “Perfect.” So instead of jumping into price and negotiating with the seller, what I do is I get into a follow up sequence of two or three months, and today we finally got him into contract. Today we got him into contract this morning, because we helped him find a real estate agent where he wanted to buy, the agent found him a house. He then says, “Great.” Now, triggers me to sell all my other stuff.
So value add, I brought value. I asked, what are you trying to accomplish? How can I participate in that? Then I went out and made it happen. We’ll make a hundred grand on that deal.

Brent Daniels:
Well-

Pace Morby:
Dude-

Brent Daniels:
Come on.

Pace Morby:
Ring that bell, bro. Come on.

Brent Daniels:
You ring that bell.

Pace Morby:
So, amazing opportunities that we have and all it is is asking people catch me up to speed in your process.

Brent Daniels:
Yes.

Pace Morby:
I want to join your team, so catch me up to speed, right? Then also, our team, what are we trying to accomplish? Now the seller’s like, “Oh, this is my consultant, this is my guy.”

Brent Daniels:
Yep.

Pace Morby:
So, I’m showing credibility. There’s no amount of talks about your cat, your favorite color, what car you drove, where you’re from or any of that kind of stuff that will never trump credibility in that fashion.

Brent Daniels:
Right, 100%. I think it’s so important just to touch on, because in my head when you’re talking about, well, we helped him find a real estate agent that got him a place to do that, and in my head, I revert back to when I started, I was like, “Oh my gosh, I’d never talked to a real estate agent before. How do I know that I’m saying the right things to them and I’m linking them up with a good person that’s going to help them out? How do I make sure that they’re taken care of so that this moves along?” The answer is, and I found this, just do it. Just pick up the phone and call a couple real estate agents and see if they’re willing to help out.

Pace Morby:
It’s funny how all of this business comes down to one thing-

Brent Daniels:
Talking to people.

Pace Morby:
TTP.

Brent Daniels:
That’s it.

Pace Morby:
It really does. I say that to people all the time, it comes down to TTP. So, here’s the script for doing anything you’ve never done before.

Brent Daniels:
Yep.

Pace Morby:
Okay, here’s a script. I call an agent, “Hey, Betty Smith, nice to talk to you over the phone. My name is Pace. I know absolutely nothing about real estate and I’m trying to help a seller. I’m hoping, and I don’t know how this all works, but can you walk me through the process of what this looks like?” I actually, ironically, would get further with that agent than if I called them and said, “Hey, my name is Pace. I did 21 transactions last month in September, and I know everything about real estate, bah, bah, bah, bah, bah, bah.”
The advantage is actually to the newer person, because now you’re falling on your sword and somebody’s there to help you. So you have an advantage not knowing everything, just TTP. Talk to people, get on the effing phone and just say, “I know nothing about what I’m trying to accomplish right now. Can you please help me? Is there a way for you to make money in this as well?”

Brent Daniels:
If you say it in the right tone of voice, and if you’re not just trying to be powerful with them or trying to be and then hang up, it’ll work.

Pace Morby:
Right.

Brent Daniels:
It works, it works, it works. It’s just use your personality, use your talents to communicate, use your skills that you’ve used for years and years and years in whatever job or industry or parenting or whatever it is, or high school if you’re younger or college or whatever. You’ve had enough conversations, you’ve talked to enough strangers to pick up the phone and say, “Hey, listen. I don’t know what I’m doing, but I need your help. Can you help me out?”

Pace Morby:
Right.

Brent Daniels:
That solves so many problems. I mean, it’s remarkable how many problems that solves.

Pace Morby:
Yeah, it’s crazy. I mean, it’s the same thing. Anytime I go to the bank, it doesn’t even have anything to do with real estate like you’re mentioning. Anything in your life, you don’t have to know everything, you just have to take that step.

Brent Daniels:
Right.

Pace Morby:
That’s again, TTP. People go, what’s the one thing it comes down to? I’m like, TTP.

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