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!
The Simple Secret to Converting More Leads into Deals – Part 1
What you are about to read is absolute fire. There is so much gold in this episode that we decided to break it up into two parts. This 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 when it comes to creative real estate deal-making. He’s awesome. Pace is typically doing anywhere from 15 to 25 deals per month. 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.
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. Grab a pad, pen, pencil, even a crayon or 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. You are not going to want to miss this. Let’s get into part one.
Welcome to the show. America’s number one show for new real estate investors because we know that finding discounted properties is the most proven path to financial freedom. I am telling you if I can do it so can you. Let’s get started. I am telling you, you need to stop the car, get off the treadmill, get a pen, a pad of paper and get ready to take notes because I have with me one of the most proactive, dynamic, versatile real estate investors/wholesalers/creative deal Maven here, Mr. Pace Morby. What’s up? How are you?
What’s up? By the way, I’m also a TTP alumnus. He can’t leave that out. I love the TTP family.
This whole show, the main reason we do this is to give people the tools out there to be successful and realize their real estate investing dreams. It starts with sourcing deals. That breaks down into three parts, lead generation, conversion and exit strategy. It’s what we call in the wholesaling world, disposition.
The Holy Trinity, that’s what it is.
That is the three legs of the stool that your wholesaling business is built on. Let’s not talk about lead generation because we’ve talked a lot about that with TTP and with different marketing channels. We’re going out there and either buying leads, waiting for them or getting referrals or earning them through being proactive. What we’re talking about on this show specifically is converting the leads that we have. It starts with an important question. When you show up at an appointment, you say right off the bat, “Catch me up to speed.”
A real estate agent’s job is not to earn a commission. Their job is to solve the seller’s problem.
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, “Your job here is not to earn a commission. Your job here is to solve the seller’s problem. Instead of you trying to talk about the house, this and that, you have to realize it’s never about the house. 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 and you need to build that bridge. Ultimately, the questions you ask and how you structure the conversation are 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. I’m trying to negotiate through this to use car sales mentality, which I know you don’t teach, which is why you and I vibe so much. I have four questions that I commonly ask. From that point, there are other questions as it goes forward. The first question always is, “Catch me up to speed.”
Have you talked to these people before or is this something that your team has got? Let’s go to somebody that is sourcing their deals. I’ve cold-called somebody and talked to them. I’m meeting with them. We’re going face-to-face and I say, “Catch me up to speed.” Can we still use it or not?
I always do that. Even if it’s just three days later, you talked to them a week ago and you cold-called them. They said, “Reach back out to me in a couple of days.” I always say, “Catch me up to speed.” Why? 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?’”
“You’re in the process of potentially selling your house. What does that look like? Who have you met with? Why haven’t you accepted an offer? Where are you trying to move to? Catch me up to speed.” I let them tell me the whole story of exactly what does that canyon looks like that they’re trying to bridge. I start picking out things that I know I can solve by bringing value back to them.
Every time that we’re talking with a distressed property because this is the important thing. There has to be some motivation there. I know that you are the master of the creative financing deal. Maybe you dip more into some of these traditional sellers a little bit but for the most part. We talk about on the show, 6% to 10% of the market is in distress at all times, anywhere around the country. That’s what we target. These are people that do have that canyon. 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 lowball me? Are they going to take advantage of me?” All of these things are running through their head as you’re talking. What you do masterfully is you set yourself up as, “Tell me about how I can help you.” 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?” You’re putting it on the back foot and you’re saying, “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. If I can help, I’m going to give you some options. If it feels like it makes sense then we’ll work together.”
“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. Have you ever done a puzzle to get down the end and go, “I’m missing 3 or 4 pieces. I spent all this time?” That’s what happens with wholesalers. They go down this process. They get to this point of like, “I’m stuck. I don’t know where to get the seller to move forward.” I’m like, “It’s because you didn’t pick up all the pieces in the very beginning.”
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 get all the way down to the end and then the seller says, “I’m going to list with my real estate agent.” I didn’t know you were talking to a real estate agent. A newer person will run into those issues or decide to go with another wholesale. Why did I not know that other wholesaler existed?
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? Why haven’t you accepted another offer? What can I bring of unique value to you? How can I show empathy to your situation and provide a unique token of value to you?” That’s essentially my goal.
It’s important because I hear it often, especially with people stating that, “These sellers keep lying to me. They’re not telling me enough. They’re being short with their answers.” I know it’s because you’re not asking the right question.
You’re giving them permission to lie to you. In the first five minutes, I always establish 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. The person who wins is the person who brings all of the pieces to the table, figures out what puzzle they’re trying to create and then helps that seller create that puzzle. If you haven’t asked real estate agent questions, wholesaler questions or other investors, why aren’t you renting the property out?
Don’t build rapport just by being friendly. Do it by showing credibility.
You told a fantastic story about your wonderful wife, Laura, busting you down after employment where you went in and you wanted to build rapport and talk for hours. What was the missing thing?
I had an appointment years ago. I went to the appointment. I was there for two hours. I’m like, “This guy loves me. How many guys have felt this way? I got this. This guy loves me.” Meanwhile, I didn’t understand his whole situation. I built rapport, talked about his thing. His wife passed away years ago. “What have you been doing since then?” Rapport. Now I’m in the friend zone. In the friend zone, there’s no money. I want to be in the consultant zone where I make money. I can be friendly but I don’t want to be your friend.
Here’s what happened. I go to that appointment. I’m feeling so confident. I called my wife, who was my transaction coordinator at the time, “We’re going to this appointment in three days. We’re going to lock this guy down.” We go to the appointment. I’m calling the shot. Babe Ruth is going right in field. My wife comes, we’re there for an hour and a half. We leave the appointment without the contract and it’s like another follow-up thing. My wife says, “You lost that guy fifteen minutes into the appointment.” I go, “Into this appointment?”
She goes, “Your first appointment. You didn’t establish credibility.” That’s the thing. This is one of the things I teach. I don’t build rapport by being friendly. I build rapport by showing credibility. I show credibility by aggregating the puzzle pieces, spreading them out and sit with the seller saying, “I understand what you’re trying to do here. Let me see what I can bring to you in terms of value.” Let’s talk about a couple of specifics on value. It could be, “You have all this stuff in your house. Why don’t you keep it and let me buy it with all this stuff in it?”
It’s small as that. You’re going to trash the house anyway. It doesn’t cost your end-buyer that much more money. If you’re going to wholesale it, 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? Those are 4 of maybe 50 things I can name on and on in terms of value that you can give to somebody.
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 because you know as well as I do, the time kills all deals. If you can’t shorten their ability to make a decision then 9 times out of 10, they’re going to go with somebody else that knows and comes in with different solutions. It could be 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.” They want to feel warm and cozy with what the process is going to look like.
That’s another one too. Let’s say a seller says, “I’ve got all these offers coming.” I go, “Great. How can I help you with that? 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. 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. 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.”
That leads to the second question. What are you hoping to accomplish? We go in and we’re like, “They want to sell their house for cash.”
Not even close to the case.
What does that question open up in the minds of a distressed property owner?
I did a seller call for one of my students and he’s like, “She’s on the cusp. She’s ready to go. Can you please talk to her? I got to get her over the edge.” I’m like, “I’ll talk to her.” It’s the same thing, “Catch me up to speed.” I always play stupid. If you’re reading to this and you are reading 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. Go squat up.
That’s one of the most important things ever. Go find a TTP student. Go find a Sub-2 student. Go link up with somebody that’s been trained by Brent Daniels in Wholesaling Inc. Otherwise, you’re going to feel that intimidation of like, “What do I have to offer?” You have to offer a relationship with somebody who has value moving expenses or whatever the value is.
Just the experience. 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. Having somebody in your local market to squat up, with to run the comps, to understand what a property’s on busy streets goes for versus properties in the middle of neighborhoods.
Anything in your life, you don’t have to know everything. You just have to take that step.
One side of Thomas Street or the other side of Thomas Street. I had somebody text me in our local market and say, “I have a 2:00 buy appointment. This guy has major problems. Can you come?” I’m like, “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.” 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. I have a whole acquisition team like Tino, Zach, all these guys and Nick who will go out on appointments to help people in our local markets. 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.
Find the people that are a TTP, Wholesaling Inc. or somebody that is serious about it that is in these mentorships, programs, families because they know we preach so hard to squat up because it works. It’s a win-win for everybody in that. It benefits everybody to do it.
It’s so simple. I feel like I’m going to high school because I’m 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 to your local market. If you’re a TTP or 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. I’m going to ask my other TTPers to say, ‘Come help me go to the appointment or go whatever.’” A big piece of advice I gave. I said, “Your job is to go create problems you can’t solve. Bring those to people who can. You need broker problems all day long.”
Essentially, “Catch me up to speed,” shows me all the puzzle pieces. I get the story. “What are you trying to accomplish?” It tells me what that puzzle is supposed to look. We can start assembling it and having a conversation, “I see all the pieces. I see what you’re trying to accomplish. Let’s start assembling this together.” You got to go find a house. We’ve got a deal up in Colorado. Seller says, “I can’t sell until I find another property to move into.” I go, “Perfect.”
Instead of jumping into the price and negotiating with the seller, what I do is I get into a follow-up sequence of 2 or 3 months and we finally got him into a contract because we helped him find a real estate agent where he wanted to buy. The agent found him a house. He then says, “It triggers me to sell all my other stuff.” Value add. I brought value. I asked, “What are you trying to accomplish? How can I participate in that?” I went out and made it happen. We’ll make like $100,000 on that deal.
We have amazing opportunities and all it is is asking people, “Catch me up to speed in your process. I want to join your team. What are we trying to accomplish?” The seller is like, “This is my consultant. This is my guy.” I’m showing credibility. There is no amount of talks about your cat, your favorite color, what car you drove, where you’re from or any of that stuff that will never trump credibility in that fashion.
In my head, when you’re talking about, “We helped him find a real estate agent that got him a place to do that.” In my head, I revert to when I started. I was like, “I’d never talked to a real estate agent before. How do I know that I’m saying the right things to them? 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, “Do it. Pick up the phone and call a couple of real estate agents and see if they’re willing to help out.”
It’s funny how all of this business comes down to one thing, TTP. I say that to people all the time, “Here’s the script for doing anything you’ve never done before.” I call an agent, “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?”
Ironically, I would get further with that agent than if I called them and said, “My name is Pace. I did 21 transactions last month in September. I know everything about real estate.” The advantage is to the newer person because you’re falling on your sword and somebody is there to help you. You have an advantage not knowing everything. TTP, Talk To People, get on the effing phone and 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?”
If you say it in the right tone of voice, not trying to be powerful with them and then hang up, it’ll work. Use your personality, talents to communicate, skills that you’ve used for years in whatever job, industry, parenting, high school, if you’re younger or college, you’ve had enough conversations, you’ve talked to enough strangers to pick up the phone and say, “I don’t know what I’m doing but I need your help. Can you help me out?” That solves so many problems. It’s remarkable how many problems that solve.
It’s crazy. 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. That’s TTP. People go, “What’s the one thing that comes down to him?” I’m like, TTP.”
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!