Posted on: November 27, 2020

If you’ve always wanted to change your financial future but don’t know how to go about it, today’s your lucky day. Rafael Cortez will guide you so you can start your journey to financial freedom right here and NOW!

Rafael Cortez is a real estate broker, investor, entrepreneur, and organizational psychologist. Rafael started his first business at 21 and launched his first company at age 23. To date, he is an organizational psychologist and real estate professional holding ownership in diverse companies across various verticals.

In this episode, Rafael shared all the basics you need to know to start your journey to financial freedom. Jam-packed with motivation, inspiration, and guidance from one of the industry’s best, this is one of those episodes you’ll listen to over and over again!

 

*For the entire week, we are offering $1000 of the tuition cost of each of our programs, Wholesaling Inc Tribe, TTP, Virtual Investing Mastery and REI Radio.

As long as you schedule your call by or before Midnight on Friday (11/27), when you join, you will still be entitled to the $1000 discount.

 

Key Takeaways

  • Changes people can do to generate bigger and more lucrative deals
  • Some of the things he tells his acquisition managers
  • What the “discovery” is all about
  • Key questions you need to ask when talking with sellers
  • Signs to look for to gauge if sellers are willing to go for speed and convenience
  • Why you need to ask the sellers open-ended questions
  • How he’s navigating the current uncharted real estate market
  • What he got consistent with that has contributed to his success
  • Things he’s doing to maintain the size of his deals
  • Average amount they are earning per deal
  • System they are currently using
  • New updates added to his course

RESOURCES:

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Episode Transcription

Darren Bentley:
Darren Bentley here again, and yes, I have to remind you before the sale ends, one last time, that our black Friday event end tonight at midnight pacific standard time. Join any one of our mentoring programs, and when you join, yes, you will save $1,000 off the tuition cost. This is a no-brainer. If you’ve been sitting on the sidelines waiting for the perfect time to take action, you absolutely want to do that right now. In order to qualify for this massive discount, just head over to WholesalingInc.com, fill out an application for the program of your choice, and when you join that program, yes, you will receive $1,000 discount.
Now, by the way, you don’t have to join any program by midnight tonight, but what you got to do is you got to fill out that application before midnight pacific standard time tonight to take advantage of the discount. So it’s got to be timestamped before midnight tonight. Again, WholesalingInc.com, fill out the application, and when you join, boom, $1,000 off the tuition cost. For the best real estate mentoring programs, and I know I’m biased, but these are the best programs out there today. Okay, now onto today’s episode.

Tom Krol:
Bam. Guys, what an honor to be with you on a podcast today. This is Tom Krol, your host of Wholesaling Inc. I’m so excited to be with you. I have the wholesaling course coach on today’s line and we are going to pour some information into you. Let’s get started right away. If you don’t know what wholesaling is, wholesaling is the art of consistently finding discounted properties. If you can consistently find discounted properties, I don’t care what your credit score is, I don’t care how much money you’re starting with, I don’t care about your experience level, you will find financial freedom. So if you can get good at finding discounted properties, that’s what wholesaling is, you will find financial freedom. And myself and my guest today, Raphael, we are here to help you do just that. I can’t wait to get started, so let’s go. Bam. Raphael, can you hear me okay?

Raphael:
Yes, loud and clear.

Tom Krol:
All right.

Raphael:
So exciting.

Tom Krol:
Brother, it’s so awesome to have the wholesaling course coach on the line. I know that your business locally for yourself personally, has been exploding. I know the students deals have been exploding. I just wanted to go over just a quick once-over because I know we’ve got a really special thing that we’re doing for all our listeners today, but we’re going to talk about that in a few minutes. First, let’s give people some really awesome information, stuff they can use right now. So what is going on in your business? Because it’s exploding, you’re doing deal after deal after deal, your students are doing deal after deal. What is going on in this new pandemic world that we’re living in? What are some of the changes that people need to do right now to do bigger deals, more deals? What does all that stuff look like?

Raphael:
Oh, my God. Everything has been so unreal this year, and I want to break all that down one by one. So the deals have changed since the beginning of the year. Pretty much right around March, everything just hit the fan and, and things just became… They got scattered all over the place. But the bottom line, Tom, is that sellers just have more options. And [inaudible 00:04:13], I’m in Phoenix, Arizona, So Maricopa County, it’s arguably one of the most competitive markets in the country. Sellers do have more options, so one of the biggest things is that we have to dig in deeper. When we sit down, and just debrief, and go over negotiations, and deals, and stuff like that, we’re noticing that we have to dig deeper to find better solutions to their problems. So it’s not a matter of just knowing how to negotiate anymore, it’s just wholesaling now, it takes a lot more creativity than it used to, a year or two years back.

Tom Krol:
So let’s talk about that. So essentially, guys, what Raphael is saying, and you tell me if I’m wrong here, but you’re saying, essentially, things are changing because sellers, they still want to sell at a discount, but they have more options, there’s more wholesalers, there’s more real estate investors. So when you say you’re deep diving, what are some examples? So when you or when your students are with a seller, what are some of the things that you’re doing that you’re saying specifically? What are some of the questions? Or are you spending more time with the seller? Or are you getting there earlier? Are you more like, “Hey, you want to go in last,”? Or do you want to go in first? How are you building that rapport in a new way, in a deeper way? And let’s get specific. Let’s give away some of that wholesaling course that you have. What are some of the questions that you’re asking? What are some of the things you’re telling your acquisition managers? What does that look like?

Raphael:
First off, we really have to wrap our head around the fact that right now, it’s like a seller sitting right in the middle of the ice cream aisle. So they have a thousand options to choose from. And it’s not that they don’t want to sell. A lot of people out there still need to sell, they’re getting anxious about the market, they’re getting anxious about tenants, and all kinds of stuff, so they still need to do it, but they have a lot more options, so they get confused. And it’s really just a matter of having a good discovery session with the sellers, and find out what the underlying issue is. For example, I can think of one of the clients that we had last week, the acquisitions manager, based on the lead manager info, the acquisitions went in thinking that it was all a matter of money, that the highest number is going to get the deal. And after a deep conversation and really getting to know that seller on a one-to-one basis… We have to do it fast, otherwise it just doesn’t work.
But having a real educated conversation with that seller, and reading between the lines, and then asking some of those real good questions that we have in the wholesaling course, she was able to find out that it wasn’t even a matter of money. That’s what the seller was pushing, but after a discovery session, going through the process of why, multiple times, in different ways, he found out that the real issue was not the money. It was that he had a relative that was squatting on the property, they didn’t want to have that tough conversation with them. They were not paying rent, the seller, of course, right now, super anxious because they don’t know what’s going to happen with the market, and it’s just the overall temperature, but that was a problem with that. And if my acquisition guy hadn’t showed up with the mentality to discover, and just went straight for the number, he would have never caught that, and he would’ve just been vanilla, just like everybody else coming to the seller for the property.

Tom Krol:
Raphael, I know that part of the wholesaling course is that you really spend a lot of time on what you call the discovery, which is essentially, guys, just the conversation that you have with the seller. And discovery is… Well, you talk about it because you know it better than I do. Tell us, what is discovery? And Raphael, what are some of those key questions? Or what are some of those responses that you’re listening for? Because I know you just said something that we all listen for as real estate investors, which is, it’s not about the price, which we know is definitely, those are our sellers, when they’re saying, “Hey, I’m willing to exchange a low price. I’m willing to give you a low price for speed and convenience.” So tell me more about the discovery. What do you take the tribe through, the rhinos through? What do you take them through on this discovery? What is that all about? And what are some of the key questions that people who are listening right now, can actually use today on their next seller call?

Raphael:
So the discovery… And I call it the discovery. I don’t know if… There might be a better term, but this is exactly what’s happening. You’re actually discovering and diving a little deeper into what the real issue is because you do want to provide a good overall solution. So it happens. The discovery starts during the [inaudible 00:08:22] process. There’s a series of questions through a script the lead manager goes through and everything. So by the time acquisition shows up and they start having that conversation, there’s so many things that we’re looking at, even before they get to the door, in this case, even before they make that acquisitions call because a lot of the appointments are not in person. But you’re reading between the lines. If you have the opportunity, you’re looking at the property. As soon as you get access through the door, you start looking at the actual property inside, you look for clue. It’s like… You remember the Where’s Waldo?game?

Tom Krol:
Yes.

Raphael:
Where you had to find a whole bunch of stuff, and then you finally found Waldo. Finding the problem reminds me like that. It’s like finding Waldo in the middle of all that mess. There’s just so many things, and it’s so noisy between the conversation, what they’re saying, and then what you see, that if you don’t pay really close attention to some of those key things, you’re going to miss it. Some of the kids-

Tom Krol:
Yeah, tell me, what are they? I’m a new student, and I just come into the wholesaling course, and I’m meeting sellers for the first time. I don’t know what I’m doing. I don’t know really what to say. What am I asking? What am I listening for? Tell me, what are some of those telltale signs that says, “Hey, this seller is willing to exchange for speed and convenience. They’re going to be, probably, willing to give me a low price, if I could do this deal quickly,”? What am I listening for?

Raphael:
Well, rule of thumb, you want to learn how to make open-ended questions. Meaning, if it’s something that they can answer with a yes or no, your interview process or your negotiation is going to be lacking. It’s got to be open ended questions so they can elaborate. One that I hear all the time is it’s condition of the property. There’s a property in good condition, it’s a yes or no. Change that context, and you say, “Can you tell me a little bit about the property?”, and just open it up that way, now they have to come in and then elaborate on that. They can’t say just yes or no, so that’s one way of structuring an open-ended question. And the whole conversation that we go through, it’s really designed to be open-ended. So as you’re going through that conversations, you’re also looking at the property itself and picking up clues. Is there moving boxes? Are there leaks on the roof? Are there stuff that’s expensive and the seller might be having an issue repairing?

Tom Krol:
I love it. And it’s so funny guys, because I know Raphael and I speak all the time about these deals, especially for him that his team is doing, that our students are doing, and one of the things that he is always saying is, “When you ask these uncomfortable questions, just don’t say a word.” Let the seller… And I know it’s funny because we were just talking about one of these deals and it’s so true. It’s when you are asking those questions that they really can’t be answered with a yes or no, so these are questions that some people say open-ended. Here’s the bottom line, these are questions that require, like Raphael said, a response. And one of the biggest tricks that he and I speak about is just keep your mouth shut. Right after you ask that question, you’re going to be wanting to talk, you’re going to be… It’s going to be uncomfortable, and just hold. Hold like in that movie Braveheart, where he’s like, “Hold, hold.” It’s such an amazing response that you get when you can just shut up, for lack of a better term.

Raphael:
It’s more difficult than it sounds, really, when you drop it out there, and then just the silence comes in creeping, it gets a little weird and uncomfortable, and after a few seconds, it’s like, if you speak first, you lose. That’s the thing. Granted, not all the time, you’re going to be able to get the number. For example, this is especially useful whenever you’re trying to get a number out of the seller or dropping an offer. It becomes really, really uncomfortable at some point. And whoever speaks first, loses the game.

Tom Krol:
Yeah, of course. Yeah, I totally agree. And of course, that’s a no brainer. So I also know that you are… Things have changed. I know that you’re exploding in a very, very competitive market. Your students are doing well. What are some of the other things that you’re doing right now with this pandemic, with everybody being on lockdown, and how are you navigating these waters for these new scenarios that have never really happened before, certainly in your career or mine, in 2020? What is different from 2020 to 2019? And what are some of the updates that you can give us, things at work right now that you’re seeing work for yourself and work for your students? What does that look like?

Raphael:
Got you. So we’re having a great year so far, so number one. But compared to 2019, most of our appointments, and I think this goes for a lot of the wholesaling companies out there, they used to be face to face. It’s just easier to negotiate it that way, but 2020 is definitely a year to pivot. You can’t do the same thing. You can’t approach sellers with the same strategies. You have to pivot. And if you don’t know how to pivot into your conversations that are going to be happening over the phone, as opposed to in-person, there’s a lot of stuff that’s going to hurt you there. Despite COVID, this has been one of the best years yet. And mainly, I think it’s because we’ve stayed consistent in our business, so meaning that we did it when everybody was throttling back.

Tom Krol:
Yeah, consistency. This is why you guys are rock and roll. This is why your students are. But yeah, go ahead. I didn’t mean to interrupt you, but it’s a key word. It’s the main reason why. And Raphael is being conservative here. One of the processes we do with coaches is a vetting process, so he’s not just doing well. He’s absolutely crushing it. But consistency is the key. It is the, for me, number two rule of marketing. First one is go big, second one is consistency, and then all of our other listeners, I hope, know three, four, five, right? I’ll give you guys [crosstalk 00:13:50]. It’s singularity, fast response, and trackable. But guys, consistency. So yeah, tell us, in 2020, obviously consistency is a big part of your success, what is it specifically that you got consistent with?

Raphael:
Well, we stayed consistent, more importantly. When everybody was throttling back in March, April, and May, we saw a lot of people just hold off on marketing and then stop what they were doing. Well, in this business, if you stop that, you’re not going to get revenue in June, July, and August. So we just rode out the… We didn’t know what to expect in my business because COVID hit, but we still stayed consistent with what we knew. So we trusted the process, we followed the process, and yeah, we did see a dip there for a little while, but that was expected. And sure enough, all that marketing that we did in those months, just set us up for the following months. As of the last quarter, it’s booming. So yeah, consistency is one of the biggest things that’s working out for us right now. Now, we were able to stay on top of the changing times because we’re always looking at our KPIs, our metrics, we’re always tracking, and we’re seeing what’s working, and we can actually put our finger on it.
Meaning that if we have an issue in the business model, we can actually go back and see what stage that issue is at, and come in, and fine tune it, and fix it. So we were able to make the changes to the business and pivot, but one of the things that helped a lot there was creativity. So prospecting for us is consistent. So we have some core marketing channels, driving for dollars, direct mail, cold calling, and SMS, and stuff that we have in place, but then we got creative with the marketing. So we started looking and pivoting to find more effective pools of sellers. [inaudible 00:15:31] list, it’s a vanilla list, so everybody’s hitting that. But we got heavier on the creative side, and then just creating different avatars that work well, for example, stacking lists, pre-foreclosure, vacant, driving for dollars, and that’s a really good strategy to come in, and then just hit a whole different demographic because after a period of time, you’re going to be the one that has that list. Nobody else has got one particular list.

Tom Krol:
I know that your students are listening. The rhinos are listening and going, “Well, Raphael, wait. Don’t give away all our secrets.” So I know you have some new strategies. Yeah, so I get it. I know you’re [crosstalk 00:16:04].

Raphael:
Sorry, I don’t know how to hold back.

Tom Krol:
But you guys, Raphael, there’s a reason why he’s doing well. There’s a reason why the rhinos are doing well with him, and the reason is, is that one thing that he said very quickly, because I think Raphael, you’re the first person that I’ve ever met that actually speaks faster than I do. So one thing that he said was that he punched the gas. A lot of times, guys, this is such a rookie, amateur mistake, don’t make this mistake. When it gets a little turbulent, the first thing that a lot of rookies or amateurs do is they pump the brake, and that’s a huge mistake. You want to punch the gas, and that’s one thing that I know Raphael did, and hiss students did, and that’s one of the biggest reasons. So not only did they find some new lists that no one else was working with, they found ways to put lists together, to identify the most motivated sellers that were willing to sell at a discount quickly for cash, but also, their strategy pivoted quickly.
And that’s all because of another thing that he said, which was watching those KPIs. Raphael, he still is a rhino, and his story was starting off in TTP, and as a wholesaling rhino. And of course, there’s no way that the coaches, that’s their number one deal is tracking, and KPIs, and split testing, and that’s the key. So because of that split testing, because of that KPI tracking, he was able to pivot, take the whole tribe in a new direction where they’re just crushing it. So Raphael, a lot of investors right now have been talking about deal size. And I know you have done things specifically to ensure that your deals are big, and that they stay big, and they’re getting bigger. What are some of those things that you and the students are doing to really be able to focus on that number, and make sure it’s wholesome, and it’s repeatable, and it’s something that you want to scale?

Raphael:
The thing is, that you make the money, not when you sell it, but when you acquire. It’s the cardinal rule right there. If you lock them high, you’re not going to be able to push them and [inaudible 00:18:13] them, and then make a make a [inaudible 00:18:13]. So the way that we have our negotiation, and it’s actually in the course as well, is we break it down into three different parts. So we don’t go for one number and then create a spread off of that one number. We actually break it down into three different levels as we go through the conversation, as we go through the structure of the negotiation with the seller, and then we’re in the discovery session, and then we move on into an offer stage, and then closing the deal stage. But there’s multiple things that play into it. And what we do is really break it down into three different sections, so we can get a bigger spread out of the deal. And right now, let me look at it, my KPIs, I think right now, we’re around $23,000 per wholesale deal.

Tom Krol:
That’s per deal? Wow.

Raphael:
Yeah, on average. Granted, there’s deals that are a lot smaller. We just closed one that’s 11K, came in a couple of days ago, but the average, it stays around the 20, 23K. But that’s how we do it, we just break it down in different sections as we go through the process and it works. It works.

Tom Krol:
So I know you have that system that you guys use, which is basically, there’s three touches with the seller where there’s a price, and then there’s, essentially, you’re continuing to work that deal. I get it. And I guess that’s how you’ve been able to edit to keep your assignments healthy and large during this change. That’s good stuff. All right. So let’s tell everyone about what we are doing with the number one wholesaling course in the country. There’s no doubt about it. There is not a course around that has more testimonials, more endorsements, that is more proven, more sound anywhere on the planet, nationwide. The no BS, no fluff wholesaling course, the number one course, we’ve been running around with Thanksgiving and everything else, but guys, here is the deal. If you are able to go to WholesalingInc.com and fill out an application for the wholesaling course before midnight California time, before midnight, before 12 midnight California time, pacific time, if you can fill out an application, if you fill out an application before that time, we are going to remove $1,000 off of the tuition of the number one wholesaling course on the planet.

Raphael:
Wow. How amazing is that?

Tom Krol:
Guys, this is super exciting. It’s only going to be for Black Friday. There’s no exceptions. You guys, you know us, so fill out the application. If we like what you have to say, if you have been listening, and you have been wanting to get into wholesaling, and right now, you’re working from home, there is no better time than right now. Raphael has this course totally updated with new methods, super focused methods that are going to just cut through all the fat and get to the right sellers right away. It’s really, really exciting. Midnight California time, it’s going to remove $1,000 off of tuition, but it’s got to be in. The application has to be in. We cannot do it if it comes in at 12:01 AM. One minute after, it’s a no go. So midnight, super exciting. $1,000 off tuition. Guys, that’s amazing. Raphael, what else is going on? Any other updates in the course? Or I know you’ve got a whole bunch of new tactics that you’re teaching everybody. What else is going on in your business of the course?

Raphael:
Well, we are. We’re really adding a lot of it. There’s solid information already in there, but we’re coming in and adding a lot of this stuff that we’ve found useful throughout the pivot. We’re talking everything about marketing, on approaching sellers, how to structure the business, because even that stuff, as far as operating systems, how to structure all that stuff, it has changed because of COVID, and because of the way things are moving now. So there’s a lot of things that play into it, and we’re also going to be breaking down on how to approach, and feed your buyer’s list, and keep those nurtured. Some of the gold stuff that I think everybody should be capitalizing on right now is, if you’re looking at marketing, make sure you stack your lists. I don’t know if you’re familiar with that concept, stacking lists, but-

Tom Krol:
Yeah, one of the things that Raphael really… And I don’t want to say that he was a pioneer in this area because there were certainly a few people doing it, but he was one of the only guys that I knew that really took this concept to heart, and implemented it, and split tested. But essentially, stacking, guys is just… What Raphael does is he shows you how to get these very highly specialized lists. And there are multiple lists from different sources. He shows you a way to streamline it and then put them together to cherry pick the very, very best deals to laser focus on. This way, what it does is, not only does it get you the deals as fast as possible, but it saves you a ton of money.
So you’re not wasting marketing dollars, time, resources, energy, and focus on really, deals that are never going to take your low offer. So we already know guys, if you’re already a seasoned wholesaler, most homeowners do not want to sell their homes. And the homeowners who do want to sell their homes, they don’t want a low price. So what Raphael has done is discovered a way to just pinpoint, and triangulate, or whatever the best word is, to figure out how to figure out those people who are on these very specialized lists, multiple times, and then go and specifically speak to those homeowners, make them an offer, and do a deal. And then you tell me, Raphael. You’re the coach. I’m… [crosstalk 00:23:32].

Raphael:
Yeah, so we do. We have that in place, but also, in addition to that, we do have a very specific multi-channel marketing process. So we come in, and then pretty much, we become the go-to person for that seller because they’re seeing us in multiple different ways, not just through a phone call, or a cold call, or a text. It’s a variation of things. And we have this particular process on how we break it down and we’re seeing great results with that. So yeah, that’s the stuff that we’re adding onto the course, and then just revamping some of the stuff that’s already in there. But yeah, at the end of the day, you have to move fast, you’ve got to take action, you can’t spend, for example, two days analyzing a deal because by then, someone will have taken it from you. Again, this is something that you say all the time, massive imperfect action is okay, and that’s really what we’re looking for here.

Tom Krol:
Guys, if you want to stop learning and start earning, this is the number one course in the nation. Raphael has taken this course and totally updated it with all new tactics to deal with the pandemic. This is a way for you to save money, get in, do a deal, and change your financial future right now. Guys, go to Wholesaling Inc, Wholesaling I-N-C .com, fill out an application for the wholesaling course. If the application comes in before for Black Friday, before midnight California time on Black Friday, starting from right now, from the time you hear this podcast, until Black Friday, at midnight California time, we will take $1,000 right off. End this year the right way. Start off next year the right way. I will see you guys on the other side. Fill out an application, if we like what you have to say, if Raphael likes what you have to say, he might even bring you in to be a rhino. Bam.

Raphael:
Let’s do it.

Tom Krol:
All right, brother. Thank you so much for your time today. I know you’re running around with the family, so go do what you got to do. Enjoy it. And guys, I’m looking forward to speaking to everybody when they’re inside the course. All right, we’ll talk to you soon.

Raphael:
Let’s go.

Tom Krol:
Thanks, Raphael.

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