Posted on: November 03, 2020
WI 550 | Converting More Leads

 

Today’s episode is the second part of the conversation between two wholesaling and real estate powerhouses—Brent Daniels and Pace Morby.

And since we have two of the industry’s best together, expect to learn effective and proven techniques you probably have not heard of or used before, techniques these two successful entrepreneurs swear by that have helped them get ahead of the pack.

Our hope is you’ll walk away with a complete roadmap on how you can creatively profit from every lead in your pipeline while staying true to your primary objective as a wholesaler—help distressed property owners.

Today’s episode is hands down one of the most powerful you’ll ever hear, so make sure you don’t miss it!

The Simple Secret To Converting More Leads Into Deals – Part 2

Episode Transcription

Welcome to part two of The Simple Secret to Converting More Leads into Deals with Brent Daniels and Pace Morby. If you haven’t already read part one, I strongly encourage you to stop this and go back and read part one. In part one, Pace shared three ways to turn your existing leads into deals. That was completely next-level stuff. In part two, Pace will give you an outline on how to make money from almost any lead in your database, which is insane.

That is a thing because Pace shares exactly how to profit in almost any situation, whether you are wholesaling, flipping or a buyer, you are going to walk away from this episode with a complete roadmap on how to creatively profit from almost any situation and do all this while adding massive value and helping as many people as you possibly can.

Let’s go to this because this is one of the most powerful, if not, the most powerful way to get somebody to decide to work with you or not. It is this line. I want everybody to write this down if you are reading this, “What will it take?” You use this all the time.

Every appointment, every conversation, and everything, it’s like, “What will it take for you to get there?” I might say that one line five different times about a different topic in the same conversation but I’m never making a suggestion. If I go, “What will it take if?” I might throw a, “What if? What if this?” Even pricing-wise. Somebody goes, “I don’t know. What do you think?” I go, “Hypothetically, not saying that this would be my number but what if somebody offered you $180,000? Would you move forward with something like that? “No. I would need.”

You are opening the conversation up. The words, “What if and what will it take,” accompany each other. “What will it take,” is a question where I essentially go back to the puzzle. I now have assembled. “Catch me up to speed.” I now know where all the pieces are. “What are you trying to accomplish?” I now have a picture. I’m holding up this picture, and I know what these pieces are supposed to look like.

I now am asking the seller, “What will it take for me to be able to participate in this puzzle?” That’s essentially what I’m asking. “I want to be on your team and help you assemble this. What will that take?” The seller then says either, “I don’t know. I want this number.” Whatever it is, I then deviate from that and start asking other questions.

I want to stay on this because if they say, “I don’t know,” that leads to the fourth tool I want to give on this show. “What will it take,” is that if then. “If this happens, then what do you want to do? If somebody came and offered you.” I love how you did that. You didn’t say, “If I offered you $185,000.”

I’m non-committal the whole time. I’m the consultant.

How do you stay that way and not go for the close?

Offer to help your clients find a buyer when their offer is way below your number.

I will do in one of the conversations I will share to make 50 calls for my students. We locked up 7 contracts in a 5-hour timeframe. It was good. In the first call, I go, “What will it take if?” She tells me the number. I go, “Assuming I could come up to that number, what would be the next step?” That’s my close. I go non-committal, “Assuming somebody could come up to that number, maybe me or my partners, what would be the next step?” She says, “You need to send me the paperwork.”

I go, “I’m going to have Rochelle call you. We will get this thing done. What you are going to hear is you are going to hear from my title company. Thank you so much.” I’m off the phone. That was the close. People make it way more complicated than it is. I never committed to her still on that number, which is funny. When she says, “I would be good to go at $180,000,” it would be an amazing way to close because people feel like, “This is great. I don’t feel like I was pushed or it was this.”

“Assuming I could come up to that number,” is also an amazing line because I’m saying, “Come up to the number,” which essentially is telling you that’s way higher than what my number would typically be. Sometimes that creates a psychological seed in their mind. I go, “Assuming somebody could come up to $180,000.” It’s, “Up to,” not, “Pay.” “Assuming somebody could pay $180,000,” is not the way to say it. “Come up to $180,000,” which means, “My number is way below that. I’m not going to tell you what that number is but it’s way below that.” However, if you want to move forward at $180,000, I will say, “I will see either my partners are okay with it or maybe I can help you find a buyer to do that.”

There have been times where a seller won’t budge on a number. I go, “Why don’t you let me help you find a buyer?” They go, “Why? I like working with you. What will it take for you to buy my house?” I go, “Honestly, you don’t want to know my number. I’m so far below that number that I would rather help you try and find a buyer. I’m not saying, ‘I can,’ but I would rather try and help you find a buyer.” They come back to me in the same conversation and go, “Honestly, I want to move forward with you. What is it going to take?”

I have already gotten all their puzzle pieces. They have a breath of fresh air because now they are not hiding anything from me, lying to me or anything. It’s like we are best friends. I have all the pieces. I know their whole story. They don’t want to have to go to the next person and tell that whole story all over again. Paint the picture of what they are trying to accomplish and go through the whole rigmarole because everybody else they have talked to doesn’t care about all this stuff.

I’m already deeply embedded. This is not just a great way to have a conversation. This is also a great way to be so deeply embedded in their mind as the only person they want to work with that when you say, “I’m not a buyer at $180,000,” they start chasing you and say, “Where would you need to be?” I go, “I’m way below that.” They start saying, “I could talk to my sister and see if we could do $160,000.” I go, “Assuming I could come up to $160,000,” is still come up to $160,000 even though we have dropped them $20,000.

Jamil has watched me do this live in person. We did it in Harrisburg, Pennsylvania. We go to an appointment for a random guy on Instagram who goes, “I’ve got an appointment in Pennsylvania. Will you go?” We go to this appointment. It’s in-person in Harrisburg, Pennsylvania, of all places. The guy who set the appointment says, “I have had four conversations with this guy. He won’t give me his price. I don’t think I could ever negotiate with him but my buyer wants this property.” I go, “That’s great. Let me go.” Within 40 seconds, I had the price and dropped him $60,000.

This is how it happened. What I said is, “Catch me up to speed.” He says, “We have been talking and negotiating.” I go, “What number did you settle on?” He goes, “We haven’t talked about numbers.” I’m like, “Would you want somebody to call you off of Craigslist about a car and talk to you about the tires, the steering wheel, the seat, and all that stuff and never talk about price?” He’s like, “No.” I go, “Let’s talk about price.” He goes, “I want you to make an offer.”

I go, “Go back to Craigslist. Do you want to put a car on Craigslist and tell people, ‘Make me an offer?’ Would you rather at least set your price knowing that maybe you are a little unreasonable, so somebody is going to come underneath where you want to be?” He goes, “Of course.” I go, “Why are you selling a house that’s worth way more the same way that you wouldn’t even sell a car? Where are you trying to be? Give me the unreasonable number.” He gives me a little number. It was $140,000, which was retail. I go, “That’s perfect.” After you sell with a real estate agent at $140,000, I’m planting a seed that that’s a retail number without saying, “That’s retail.”

WI 550 | Converting More Leads

Converting More Leads: People make the process way more complicated than it is.

 

It’s because you are confirming and approving. You are not causing that friction and not using that language that’s making them feel Spidey-sense is going off. He’s like, “This guy is going to do something.”

“He’s trying to negotiate with me.” I say, “That’s perfect. You sell with a real estate agent, get $140,000, and have your repairs. It sounds like you are trying to be around the $109,000 range in your pocket.” I watch him and he goes, “Honestly, I have $109,000 in my pocket.” I go, “I’m not a buyer for you at $109,000.” He has given me a price, and we have negotiated him down. I go, “I’m not a buyer for you but I could help you find a buyer. It might take me 6 months to 1 year but I could maybe find a buyer at $109,000.” He goes, “Where would you want to be?”

I’m not playing games. There’s no smoke and mirrors. It’s truly how you should be talking to people. What I told the guy, and this is within the first four minutes, “We are not a buyer at $109,000 but I would love to at least see the property and see if there’s any potential that I could float this by somebody else that would maybe come up to that $109,000 but I’m definitely not there.” He says, “What’s your number?” I go, “It’s not even close. What are you trying to accomplish?”

I have already beaten him down in terms of, “I don’t want to buy the house. I have taken my sales cap off. I’m not there to sell you any more. I have already told you I’m not your buyer. Since we are not even buying the house, why don’t you tell me what you are trying to accomplish?” We find out he’s got a lien on the property that he has to pay in 30 days and can’t afford it. It’s $18,000. I go, “You have this going on and this much equity. It sounds like if you sold this somewhere around $75,000, it would solve all your problems, and you would be done with this.” He goes, “Probably.” I go, “Why wouldn’t you take an offer at $75,000?” He goes, “Honestly, I would.”

That doesn’t happen.

It happens all the time. Sometimes it takes 4 minutes or 1 hour but it depends on how many puzzle pieces they have. He was never thinking about selling. They had cold-called this guy. He was like, “Honestly, I took your call because I needed to solve this problem.” I go, “It’s a good thing we met because we can solve that problem at that price.” They contracted at $75,000 and sold it for $99,000. I didn’t make a penny on it but I have a good story to tell.

Let’s go back to when you ask, “What will it take?” They go, “I don’t know.” This is the fourth tool that I want to give everybody. You go into, “Why don’t you?”

I will say, “Why don’t you list with a real estate agent?” I usually have already said that but sometimes I will push them in that direction again. Sometimes pushing them away is showing them, “I’m not here to close.”

Let’s lay the table out as, “What will it take for you to accept an offer?” Is that a question you would ask? “What will it take for you to sell this property?”

I usually say, “What does it take for you to move forward?”

There should be no smoke and mirrors when you’re talking to people.

They go, “I don’t know.”

Let’s say it’s a probate deal. They say, “Honestly, I did this the other day.” Follow-up is key in this business. We are not always going in there and doing one-meeting closes and one-call closes. Sometimes it’s 3, 4, 5, 6 or 10 conversations to gather all this stuff. Let’s say it’s a probate situation. I dealt with this. I don’t bring a price and have them bring a price. I go, “When you and your siblings got together on this property that you inherited, what was the price you came up with?”

“We haven’t gotten that far yet.” I go, “This would be a wasted conversation because we are not going to accomplish anything. Why don’t we do this? Let’s set up a call next week where it’s me, you, and maybe one of the other siblings, and guys who have accomplished what your price and timeline are.” They know the expectation in my next call is, “What are you trying to accomplish? Where are you trying to be? What if?”

If they say, “I don’t know,” and truly have a reason they don’t know because they have siblings they have to talk to in a probate situation, don’t try and close them. Set the seed for the next conversation. However, if you talk to the decision-maker and say, “I don’t know,” I go, “I started not knowing many things either. What will it take for you to know that you are making the right decision?”

I will ask them and say, “Let’s say you can wave a magic wand. In two months, you have sold the house. Where would you live, and how much money is sitting in your pocket?” That’s the question I ask. I start unfolding and painting a picture of where they are going to be living and how much money they have in their pocket. I construct the deal backward.

If they truly don’t know, you start giving them options, “Why don’t you list it with an agent? Why don’t you rent it out? Why don’t you fix it up and sell for a retail value of all these other beautiful renovated houses?” It’s all of these things like different options that they have.

What’s that game where you go to an arcade and the little heads pop up, and you bump them down?

It’s the little gopher.

It’s the gopher thing or whatever it’s called. What I do is I’m the guy underneath popping those up, and I’m behind them, also gently having them hit it down with their own hammer. I go, “Here’s an agent.” “I don’t want to go with an agent.” I go, “Nobody likes agents. They are the freaking worst. I have agents that worked for me. I feel like they don’t do anything.” That’s gone. The next one is, “Why don’t you do a renovation on the property?”

“I don’t know. We don’t know what we are doing.” I go, “Honestly, people who try and do the renovation on their own end up paying double or triple going through the thing. In the end, they don’t make any more money. They hate each other and lose family members over it.” You go through all these things and I also say something like, “I know you have talked to these other investors. Why haven’t you accepted one of their offers?” They will say, “I don’t know. I’m gathering offers.” “How do you know you’ve got the right offer?” I’m still consulting and asking questions.

I pop up the wholesaler and go, “What would an investor need to put on their contract to make it make sense?” They go, “That doesn’t sound legit.” I will kill that, too. I let them bring all that stuff up if they say, “I don’t know.” “What if this or that? Why don’t you do this or that? Why aren’t you?” I utilize that as a way to bump. The only head left standing is the one in the middle, which is my head. Here’s the final question that I ask them. I am already on their team and know we are heading in the right direction. I say, “What are we going to do?”

WI 550 | Converting More Leads

Converting More Leads: Don’t bring a price. Have your clients bring a price.

 

This is so important. All four of these things come down to you are not building rapport. You are building a bit of a relationship but the ultimate rapport is collaboration. This is collaboration. He’s getting it to the point and asking all of these questions so you can be on the same team.

Where are the puzzle pieces? What is the puzzle supposed to look like? Can I help you assemble the puzzle? What are we going to do with the puzzle when it’s all done? That’s all it is. What happens is when you first start, you are sitting in there asking questions like, “What’s your price? This, that and the other.” I remember going through training a long time ago, that was taking a clipboard and, in a very polite way, you need to make fun of their house.

“That looks like a new roof. How old is that air conditioning unit?”

They know what you are doing. You are not being a consultant and helping them put a puzzle together. You are downplaying or making fun of their situation. If you can learn one word, the word I would want somebody to learn is empathy. I’m an empath. When I know somebody has a problem, that problem becomes my problem. That’s why one of the reasons I’m such a good closer is because I get sucked into people’s world and start going, “What are we going to do here? We’ve got to solve this problem. Let’s go.”

The next thing you know, they are like, “I’m running this race with Pace. This is awesome.” When I go on other investors’ appointments with them, and I’m shadowing and watching them, the seller is bringing up these things about, “My kid has this disability.” You skirt past it and start making fun of how her kitchen looks like crap. I’m sitting there thinking, “You missed the most important part. It’s empathy.”

I don’t think that it’s necessarily that people don’t have empathy. People are worried about what they are going to say next. They don’t feel confident and have some of these things that you have learned. That’s why we are giving you these tools to practice, use it, get out there and do that. A lot of times, they are stuck in their head thinking, “Don’t screw this up.” You miss the whole thing. If you are thinking about what you will say next, it’s hard for you to listen. That’s why it’s important, even going in with something like a pen in this whole thing. It’s understanding, listening, going through it and going, “I’ve got it,” when you are starting out.

The ultimate rapport is collaboration.

I 100% agree with that wholeheartedly. If you are going to write things down, you don’t write things down to make fun of their house. You write things down about what’s going on, and you take notes. What you do if you are brand new is you say, “Do you mind if I take notes?” If you are on the phone and doing this virtually, then you can pause, “Tim, hold on a second. Let me write that down. I want to make sure that when I talk to my partner, I’ve got this all straight.”

What you are doing is you are not trying to solve problems or do anything like that on that call. You then get somebody you have localized or squatted up with and you go, “I’ve got this list of fifteen problems that seller is going through. Can you help me get on the next call to provide the value?” I tell my students, and I know TTP-ers are encouraged to do this too, “Go screw up.” You need to screw up and create a bunch of problems that you bring back to somebody else and say, “Help me solve this.”

This is why people take mentorships from TTP. It’s because they know they can come back to the mentorship and say, “I have these problems.” I’m in the Facebook group because I’m a TTP alumnus. It’s amazing what people bring back to the table and go, “I have these issues.” Other students who are more experienced are like, “I’ve got 42 good answers.” I call those people Han Solo. You can’t be Han Solo and take over the evil dark empire. You have to assemble a team. Don’t be Han Solo. You need to bring the team together.

Read this again if you didn’t catch it. Write down all four of those, “Catch me up to speed. What are you hoping to accomplish? What will it take/what if? Why don’t you?” These are things that you can start implementing. I know that the synapses in your brain are firing like crazy because you are like, “I know I can use this. This is so good.” What’s your schedule? Let’s touch on it. What time do you wake up?

I naturally wake up between 3:00 and 4:00 in the morning.

That’s not natural.

When I say that, people are like, “What alarm clock do you use that wakes you up?” I’m like, “I don’t need an alarm clock.”

What time do you go to bed?

Usually at 10:00. I will get solid five hours of sleep.

That’s enough?

Not always. I don’t want to lie and tell people that I’m always refreshed. I have so much ambition that the only time that I can have uninterrupted answering emails. I don’t want to email. I want to answer an email to people with respect and take five minutes to answer an email or get back to my text messages from the day before that I missed. I have my phone here upside down. I know it’s an emergency If somebody calls because most people don’t have my cellphone number.

WI 550 | Converting More Leads

Converting More Leads: Write things down about what’s going on and take notes.

 

I go through my Instagram DM or Facebook, look at everything I have going on, take the information, and put it into my calendar. I know where I’m going to be and what I’m doing all day long. Here’s why. I hate being told what to do and where to go. It’s that old adage, “If you don’t stand for something, you will fall for everything.” If I don’t have a schedule planned out, I will let the universe pull me every which way.

I time block everything in blue blocks. If it’s a red block, do not interrupt that. It’s sacred time. My team has access to my calendar as well. If they see it’s blue, they know that it’s an elevated thing. Let’s say it’s blue and says, “Pace is going to stop by the office and do this.” My team says, “Pace has an appointment with the seller that the acquisition team is having a hard time closing.” They know to turn that red and put me in that appointment.

I set my day and allow people to adjust my schedule. It doesn’t happen that often. Maybe it’s one adjustment per day. I set my schedule and know what I can say no to daily. I made a list this long of things I need to accomplish before I go to bed and time blocked all of that stuff out. As annoying as it is, I put my phone down and stopped doing anything. People think I’m on Instagram all the time. I’m probably on Instagram fifteen minutes a day. I’m so quick and fast at it.

Everything is put out, and nothing deviates me from my day. However, when it does, I’m like, “I wasted four hours of my day because I said yes to something I shouldn’t have said yes to.” What I should say is, “Yes, but it needs to be in three days.” Here’s the thing. You are sitting there, looking at your calendar, knowing and realizing how much dead space you have. Here’s what my day looks like.

You hate dead space.

It gives me anxiety. I have this list of things to do. People need my help. People are asking for this. Why did I lose an hour of my day?

Every single TTP family member has my cellphone number. I love the action and being in it. The silence, the chilling or whatever. Maybe it sounds crazy.

I don’t know I could ever let go of it. I know what it is. It’s nothing about craziness. The older I get, the cockier I get in this position. I feel like the universe gave me a set of gifts, and it’s my responsibility to exercise those gifts. You are the same exact person. If I feel like I’m not exercising those gifts, I get this high anxiety of like, “I’m wasting my time. I gave up a day of my life.” Family-wise, this is the balance that people want to know about. I have a wife and kids. If you haven’t gotten your wife on the same page with you as an entrepreneur, that’s a big step you’ve got to take.

The universe gave you a set of gifts, and it’s your responsibility to exercise those gifts.

3:30 to 6:00 in the morning is Pace’s time. Nobody bothers me. From 6:00 to 7:00, I typically do one-on-one calls but now I’m doing it with my bookkeeper and other people on the East Coast because they are three hours ahead of me. 7:00 to 8:30 is family time. That’s one hour and a half in the morning every single day. The rest of the day is work stuff that I fill in, Zooms with my students, appointments, raising private capital, going to construction projects, and everything that you could ever imagine. At nighttime, I spend three hours with my family. I have four and a half hours with my family about every day. On Sundays, half-day is all family.

What about your Saturdays?

I love to work on Saturdays. My wife goes with me because she’s my real estate agent. We go drop by properties.

Jamil Damji, if you don’t know, is the third part of the Wholesale Hotline hosts. We had talked about doing a pow-wow with you, me and him at my cabin in Flagstaff, going over and trying to deep dive not only our businesses but also our goals, what we want to do with our lives, and all these things. Jamil was like, “There’s no way. Pace will be out in the streets getting a deal from some pre-foreclosure that he pulls up.”

“We are in Flagstaff. Who wants to go on an appointment? Let’s go.” I spent an hour on the phone with my attorney. I’m going to create a series on my YouTube channel called So You Want to Be a Millionaire? It’s going to be all the nasty stuff that you have to deal with but it’s also fun stuff. I have a seller that we contracted. We are going to make $37,000 on an assignment on this deal. It’s a pretty decent deal.

Somebody I know watched a live stream of mine, got the address, went to the seller, snaked me and did what’s called a tabletop closing outside of the title. They transferred the, deed, gave the guy cash and all that stuff. I get on the phone with my attorney and go, “What do we want to do?” He goes, “They are already closed. The seller got his money. It’s going to be about $10,000 to litigate this guy.”

I go, “I want to litigate the seller and the buyer. I want to put a lis pendens on the property,” which means pending lawsuit in Greek. I’m going to put a pending lawsuit on the house and do a whole ten-part YouTube series about what does it look like to sue somebody that snakes you. My cost is $10,000 but I will have damages. I have never lost 1 of these lawsuits and won all 6 of the ones that I have had to go through. I know I will get my money back.

WI 550 | Converting More Leads

Converting More Leads: If you don’t stand for something, you’ll fall for everything.

 

This is nothing you have to worry about in your first five years of being in business. When you start doing a ton of volume, you have these issues where you get a buyer that snakes you and you go, “That sucks. I lost out on that. I don’t have the money to defend myself.” I’m luckily in a position I can. I’m going to do it and document it. It’s called So You Want to Be a Millionaire?

Watch this ten-part video series about how I sue this guy over in 2022. It’s going to be fun. Let’s do it. That’s all I want to do. It’s the same thing as you. I just want to do real estate, hang out, teach people, help people and do deals with each other. It’s the absolute most fun position to be in. I don’t know why everybody doesn’t quit their job and get into wholesaling real estate.

People are trying to do it and working on it. If you are reading this, you are a tiny minority that has that pilot light inside them that wants to be a real estate investor. I love them for it. I know you do, too.

Thanks for having me on.

For anybody interested in joining the most proactive group in real estate investing, it is the TTP family. Go to WholesalingInc.com/TTP, check it out, and scroll down. If it feels good in your gut, sign up for a call. It will either be with me or my right-hand guy. I look forward to that.

Everybody starts with the TTP family. We all are TTP alumni. I’m in it. I wouldn’t be where I am without it. When I found out about it, I was like, “I don’t need a call. Sign me up. Whatever it takes, I want to be in.” Join the TTP alumni. You would be in with me and a lot of other very successful investors who started being afraid to talk to sellers and now are freaking dynamos. Thank you.

As always, I encourage you to talk to people. I love you. I will see you.

Important Links:

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!

About Pace Morby

WI 550 | Converting More Leads“My passion is to motivate and inspire entrepreneurs and investors around the world. This is the kind of stuff that makes me excited to jump out of bed in the morning.

I’ll give you the access you need to THRIVE in creative real estate.”

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