Posted on: December 18, 2020

What are you capable of pulling off when your back is against the wall? Today’s awe-inspiring guest went from someone with a $350,000 debt to become one of the most successful real estate investors.

Dan Brault is the owner of House Buyers Club in Rochester, NY. He is also running a wildly successful wholesaling business. However, Dan’s success didn’t come easy. Fortunately, giving up is not in Dan’s vocabulary.

In this episode, discover how Dan was able to close 32 deals in just 7 months and pay off his $350,000 debt in less than a year. He even made doing $50k deal look easy!

If you feel like your wholesaling business is not going anywhere and you can use a little inspiration, this episode is exactly what you need to hear!

Key Takeaways

  • His background and how his real estate journey started
  • What prompted him to get into wholesaling
  • What’s currently working for him in terms of lead generation and marketing
  • Marketing strategies he’s using right now
  • How he was able to close 32 deals in just 7 months
  • What his business model looks like right now
  • What he considers a game-changer in terms of re-investment
  • Importance of investing in mentorships and coaching programs
  • Breakdown of a deal he did
  • Why following up is key
  • What double closing means
  • Top three things new and aspiring wholesalers should focus on
  • Books he’s reading right now

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

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Episode Transcription

Rafael Cortez:
What’s up tribe. Welcome to the wholesaling Inc podcast. I’m your host in wholesaling and coach Rafael Cortez. And I’m very excited today because we have Dan [Brought 00:01:02] with us. This guy started wholesaling a few years back, but went in full-time only seven months ago and he’s done 32 deals from then to now. It’s incredible, man. It’s good to have you, Dan. Thanks for sitting down with us and sharing your story.

Dan:
Hey man. Happy to be here. Awesome.

Rafael Cortez:
Awesome. Awesome. You started wholesaling about four years ago, but it was kind of yappy in and out. You were not really committed to it and when all in seven months ago, which is right around the time when we met. What’s your background or how’d you get started in it and decided to take the lead?

Dan:
Yeah. So when I started real estate, that was about five years ago, and I was working in the medical device sales industry at the time. After a few jobs there, I just knew that I had to find a way to work for myself. Also wasn’t loving the options out there for investing in terms of the stock market, 401(k)s and just knew there was a better way to do it. Started learning about real estate and decided to do my first flip while I was working full time. I ended up doing all the work myself, which was a huge mistake, but I did learn a lot, maybe broke even on that one. But after that, learned to never do that again. So I ended up getting a crew and got a crew of about six guys that were full-time for me, the bunch of other subcontractors. And from there it just became an obsession. And after about a year of doing that, I decided to go full-time real estate.

Rafael Cortez:
So you started flipping properties, that’s what happened at the beginning?

Dan:
Yeah. So I was flipping and acquiring rentals. So some of those we were just holding on to and after we rented them out and the BRRRR strategy, we ended up using that on a bunch of them.

Rafael Cortez:
All right. Actually, it’s kind of backwards and that’s the same way that I got started. I did a flip. On the first flip, I broke even. I thought I was going to do better on the second one and I lost on that one. So I started also just rehabbing properties, but it’s normally like the pathway. It’s to start with something with a lower barrier of entry, which is wholesaling, right? So you started flipping and then you even went down to BRRRR method, which is a little more difficult than actual wholesaling, then decided to jump all in. What made you do it? Was that working? Was the rehabbing working and all that stuff or what-

Dan:
Yeah. It was going really well for a while. And then I started to wholesale a little bit and do marketing direct to seller, because I was buying some properties from wholesalers and saw that the fees that they were making. And I was like, man, I don’t want to pay that.

Rafael Cortez:
What is this?

Dan:
Yeah. So I started to just learn about that. So I was like, man, where are these guys finding these properties? And I would ask them and they wouldn’t tell me. And so I started doing the research on my own. I read every book I could find. I went to YouTube University. I got my real estate license just for the education of it. And just started taking action. And from there, I was still really focused on flipping and getting rentals. At that point, I was maybe doing one wholesale deal every two or three months. I really wasn’t committed to that. So I didn’t really like it that much. I didn’t really like the process. I always felt a little awkward showing the house to buyers. So I never really jumped all in on that.

Rafael Cortez:
And this is a couple of years back, right? This is not…

Dan:
Yeah.

Rafael Cortez:
Okay.

Dan:
Yeah. So this was three and four years ago.

Rafael Cortez:
Three and four years ago and it was kind of spotty. What was the catalyst? What changed? What made you say, you know what? That’s it. I’m going to do it full-time. I’m going to commit to it. I’m going to take massive action and then just go to town on this thing. This is my truck. What was it?

Dan:
Yeah. Massive failure.

Rafael Cortez:
Okay. Wow!

Dan:
Massive failure. I knew that there was a lot of money and opportunity in real estate. And then I still had an interest in it. I knew I didn’t want to flip anymore. And I knew that wholesaling, there was a lot of opportunity there, but I didn’t like the way I had done it before. I never felt comfortable with the process. I never felt the sellers really had a good experience. And so I knew that I could do it because there were a lot of other people that were doing it really well, but I had to change my approach. And so that’s when I decided to get a coach and with my experience, my personal development background, my sales background and my drive, with the coaching and tactics and strategies that I learned there, it just took off from that point.

Rafael Cortez:
Got you. So you jump into wholesaling and you say, I’m going to go all out and you committed to it. That was what? Seven months ago?

Dan:
Yeah. Pretty much right when COVID hit is when I started.

Rafael Cortez:
Right around March?

Dan:
Yeah.

Rafael Cortez:
So you jump into it, and this is what’s so crazy. In seven months you’ve done 32 deals. Most people right now think that the market is short, there’s no opportunity out there. There’s no way to make a living. And I keep saying, I keep repeating, right now it’s one of the best times really to jump into real estate wholesaling specifically because you can tap into any market. You don’t have to put up with any contractors. You don’t have to deal with permits or any of that stuff for the most part.
And it’s something that you can’t scale it if you want to, but you can start it off also by yourself. You can’t run a solo operation and then start generating revenue and change your financial situation. It’s one of the biggest things that I keep repeating. Now, you jump into real estate and you’re obviously having a lot of success in it that you know. 32 deals in seven months, it’s just crazy. So props on that. It’s pretty amazing. What’s working for you? What would you say right now is working for your company?

Dan:
Yeah. So right now over the past seven months, we’ve done a bunch of different marketing strategies. And if there’s anything that I’ve learned is that you need to be adaptable. Because there’s things that’ll work and then that marketing method will start to get saturated and it might stop working as well in your market or you just find something that maybe you like better. And so the marketing that I’m doing now is drastically different than what I was doing even four months ago. And so right now, our main source of lead generation is TV. And three, four months ago, that would have been a tough bullet to bite because it’s not cheap.

Rafael Cortez:
Yeah. Well, it’s not cheap and it’s also not easy just to start putting yourself out there and say, “Okay. Look at me. I’m the guy that you want to go to for your property if you have an issue.” So are you only doing TV ads right now or what else are you doing?

Dan:
Believe it or not, still doing bandit signs. Those work well here. I have a strategy and a method of training the guys who do that, that it produces consistent leads. And the lead to deal ratio on that is really high on bandit signs. You’re not going to get as many calls, but the ones that do call are usually going to convert at a pretty high level. So we’re doing that. And I’m also doing direct mail. I have a system of sending out real handwritten letters for less than 60 cents a piece. Right now, I’m at a 1.96% response rate, which doesn’t sound like a lot, but compared to the average direct mail, it’s two to three times the average. And so [crosstalk 00:08:11] how that’s going.

Rafael Cortez:
Absolutely. Looking back in 2014, 2015, the response rate on direct mail was 11. 2019, it was point 11. It’s incredible. You are actually doing a couple of things that are somewhat even thought of as being out of date, but that’s the magic of marketing. It depends on the area that you’re in. Some stuff is going to work well for your market, some stuff is not. For example, if you Google abandoned signs in Maricopa County, which is where I’m at, it’s literally on the road, nobody looks at it. You’re not going to get seller calls because there’s bandit signs everywhere.

Dan:
Right.

Rafael Cortez:
They work really well for buyers though. So that’s another strategy that we use bandit signs for. So what does your operation look like right now? So when started talking around seven months ago, it was you coming in and that was it, I remember.

Dan:
Yeah.

Rafael Cortez:
Yeah. We worked together and then did a couple of things there. And from that point, what did it look like then? And then what does it look like right now? So I kind of want to fill in the gap of what happened within those 32 deals in seven months.

Dan:
Yeah. So when I started out, it was just me. I was doing everything from A to Z. I was doing all the marketing. I was taking all the calls. I was locking up the contracts, selling the contracts, doing all the transactions coordination, everything, and trying to build the business at the same time. But at that point, I was motivated. I had a whole lot of debt to pay off and I don’t like being in debt. So I want to pay it off as quick as I possibly could. So over time, I got my first VA and they started just doing some admin work for me. After that, I think I got another VA and I have someone out there posting signs for me. And then I had some VAs doing texting for me. I was doing SMS marketing. Through all that I learned, man, I really don’t like managing people that much.

Rafael Cortez:
[inaudible 00:10:03] finding the right people, right? Sometimes it gets a little tricky. Yeah.

Dan:
Yeah. I tend to be very direct and I’m super driven and I know what I want and I’m very impatient. So that makes it difficult for me to manage people. So about a month and a half ago, I hired a COO and now he’s obviously still in training on parts of the business. So he’s managing all the team. And so we have our leads manager, who’s answering the calls and I’m still assisting with that as well. We have two more leads managers that we’re planning on bringing on to replace the one, because he’s sort of part-time. And then we’re actively recruiting for another acquisitions person as well. I’m still running acquisitions because really I’m very good at it. So I have a really-

Rafael Cortez:
That’s what you’re doing. That’s your thing.

Dan:
Yeah. A really high closing ratio. Being the closest to the money is the last thing I want to hand off. But I have the goal of by Q2 2021, to be completely out of the day-to-day operations of the business. And really transitions from filling those individual roles to the operator, to just the business owner. Because I have a lot of other things I want to focus on. So right now I’m really focused on dialing in all our systems, documenting everything, putting together a full training portal and just making sure we’re running a really tight ship.

Rafael Cortez:
Nice. Nice. I like how you’re approaching this thing as a business. So it was a hustle at the beginning and you were literally at the verge of bankruptcy, right? About a year ago. And then you jumped into this thing and you started developing and building it up as a business with the mentality of, okay. This is not what I want to do forever. I want to create a platform and then jump out. So it’s something that can be turned into a business, which is, it’s not always hustle. It’s not the thing that’s going to take away your freedom, on the contrary, it’s going to create revenue and then give you the ability if you’re smart about how you put it all together to create a legitimate business that can help people. So you started really hiring out for the marketing spot, the lead generation spots first, right?

Dan:
Well, I got my admin first and then I sort of transitioned them a little bit. So they were doing some of the text message marketing for me while doing some of the admin stuff as well. So yeah.

Rafael Cortez:
When you say admin, are you talking about a transaction coordinator or… ?

Dan:
Oh, no. So they were handling emails. They were just doing basic clerical work.

Rafael Cortez:
Got you.

Dan:
They weren’t doing transactions coordination stuff at that point, they were helping organizing my lists and pulling the lists, skip tracing, all that sort of stuff that it’s easy to train someone how to do as long as you give them instructions. It’s not a really high dollar value task. And so it’s okay if I’m giving that to someone else, a VA they’re not expensive. And so giving that task off, freed me up to spend more time on revenue producing activities.

Rafael Cortez:
Right. Yeah. That’s smart. A lot of the times, if you start putting together a list and you get real granular, I know at the beginning, I lost hours doing that kind of stuff. And then just dissecting it, breaking it down. And at the end of the day, if you spent four hours putting together a list, that’s four hours that you’re not closing. That’s four hours that you’re not focusing on your high revenue generating activities, that would kill your business and in no time. So right now, you have a systemized approach to the whole thing. What does your business model flow look like? How do you break things down now?

Dan:
So that’s one of the things is, we’re talking so much about this being a business. And I think that’s where a lot of people make a mistake. Is that they think you can just hustle and make it work. And that’ll work for a little while, but to create a lasting business that you can really scale and grow and have great margins, you need to actually create a business. And what’s great about this is that you don’t have to have this specialized background in construction or anything, like you do, if you really want to get really good at flipping. Or you don’t need a ton of money to start either. That’s the thing. The startup costs are low. It’s basically marketing and people. And if you’re starting with VA’s, that can be really affordable depending on who you’re using four to 10 bucks an hour, no taxes or anything.

Rafael Cortez:
Well, that’s also a few deals into it, because you can start by yourself. You can wear all the hats coming in and do the calls.

Dan:
Absolutely. Yeah. I do.

Rafael Cortez:
Yeah. Do the calls, set up the marketing, set up lead generation one deal, two deals, three deals come in and then you start plugging people into it. And you start driving yourself away from the tasking as the heavy stuff that takes a lot of time. 80, 20, right? Basic 80, 20. 80% of the activities out there are not going to give you that big result. 20% of the activities that we are going to be doing are going to give you 80% of the results. Yeah. And when you look at it that way it’s, you can start plugging people into it that way and then just actually start stepping away gradually from the thing. Yeah. But I-

Dan:
You got to save a portion of those initial revenues, because if you go out and you spend them all, you’re never going to be able to build a business.

Rafael Cortez:
Absolutely.

Dan:
[inaudible 00:15:20] invest a large portion of that in the business so that you can hire. So you can get the right systems, you can get a good CRM and phone system and all that stuff that isn’t crucial upfront. But if you want to grow and you don’t have those systems in place, it’s going to be so harder and it’s going to be a lot more work. So that I can’t stress enough is when you’re running, if you want to create a real business, you have to reinvest in the business.

Rafael Cortez:
Absolutely. What was the game changer in terms of reinvestment in the business for you?

Dan:
Props to you and your operating system. Going from a version of Podio that I had sort of built out myself, I took some of the apps that other people built and sort of customized it, but it was still a lot of work. It wasn’t really smooth. It didn’t flow that well. And it wasn’t investment. If you want it to be a business, it really needs to be an investment. And so I invested in an operating system in CRM that really flows smoothly and freed me up from a lot of the little tasks that does a lot of things for you. It just automates things.
And so for me, that made a big difference. And then you piece together the phone systems and you might try out a few different ones, but there’s a lot of people that are doing this at a high level. And you can learn what they’re doing and what they’re using and what’s worked for them and what hasn’t. And so for me, that’s been a huge component of this going from where a couple of years ago, I didn’t like wholesaling. I didn’t enjoy the process at all. To now where it’s a great experience.
I have sellers telling me that I’m their savior and I’m their hero, because they enjoy the process so much and because I’m really helping them, and it’s not awkward anymore. Doing those appointments on the DISPO side, they aren’t awkward anymore. Everyone’s having a fine time with it. No one’s uncomfortable. Everyone is very clear about what to do and what to expect. And so for me, just learning from people that had had the success that I wanted to achieve and modeling them was one of the best things that I did.

Rafael Cortez:
Well, you said a lot of things there, and I think they were key. One of them was modeling and then the other one was clarity. I think a lot of times when we don’t, and I’ll speak for myself, but a lot of times when I don’t like something, when I feel uncomfortable with something, it’s not that thing that’s making me uncomfortable, it’s the fact that I don’t understand it yet. Not clearly laid out, I have an idea of what it looks like, but I’m not a 100% sure. I’ll take on that and people will feel that. For example, if I don’t know what the process is, I can’t explain it.
If you’re sitting down next to a seller and you’re trying to negotiate a property, but you don’t know how that negotiation works, you feel uncomfortable and people feel that and it transfers over. So I think at the end of the day, it’s clarity. You did something very smart which was cut the learning curve. You picked up things that, okay. I’m not good at this. I’m not good at this. I want to learn more about this, get better at this and plug this in. And then you started filling in those things. So it kind of became about who instead of how. Who can I go to to get better stuff in place or better systems or cut the learning curve by three years and save me hundreds of thousands of dollars.

Dan:
That’s the thing. Is that, if you look at any really successful person, professional athletes, really successful business people, they invest in their careers. They invest in coaches and mentors and programs. And those things are not cheap. But if you want to be cheap, that’s what you’re going to get. You get what you pay for. And so you get the education, you get the relationships, and sometimes the relationships are worth everything that you spent on that mentorship or that coaching program.

Rafael Cortez:
Absolutely.

Dan:
Because you meet those people and then they introduce you to other people and you learn from them. And you’re learning from everyone. The circle of people that I associate with now, and I talk to on a daily basis, are so different than who I associated with one, two, three years ago. It’s night and day different. And so investing in those relationships, investing in those programs and training, it’s key if you really want to succeed in anything.

Rafael Cortez:
!00%. I agree, man. I always make an effort to be the dumbest guy in the room. If I’m not in that place, I got to do something else. All right. I need to step it up a bit more. And it’s not that you’re cutting off relationships or anything, it’s just self-improvement, right?

Dan:
Absolutely.

Rafael Cortez:
And I just mentioned this, I can’t remember to who, but we were in a mastermind yesterday and same people in the mastermind, but you meet up with the same people and they have the same mentality. They’re always growing as well. So they learn things, they bring it back to you and now you’re learning things from the same people, but it’s because you’re tapping into that space, right? And it’s the power of the network. YouTube University is going to teach you a lot of things. You can piece it together if you want to, but it does not come with the additional benefits of having those connections, those friendships, those people to go to. It’s a game changer, really, if you’re trying to make a difference.

Dan:
Oh, 100%. And it’s another level of accountability, because you have people, if you’re talking to them regularly, you’re talking about what you’re doing. And so YouTube University doesn’t have that. And I think that’s where a lot of people get stuck. Is they get stuck in education mode and they don’t actually put it into action. And if there’s anything that I’ve done over the past year that’s really made a huge difference for me, it’s yeah, I got all that education and I paid for it and I did lot of research and learning, but I took action on those things and I took consistent action.
And it’s about that compound effect of those little daily changes that you’re making. Finding one little thing that you can improve on every single day. Looking at your process, where are the holes? What’s falling through the cracks? What’s taking longer than it should? What are you not enjoying as much as you could? Or what are your sellers or buyers not enjoying as much? Where can you improve your experience for everybody and make a better business? And if you’re doing that every single day and every single week, you’re going to be so much further than where you thought you could be in a year.

Rafael Cortez:
Yeah. But I agree. I agree. And it’s enjoying the experience as you go through it. It is a hustle. It’s not easy. If it was easy, everybody would do it. So there’s going to be difficult. There’s going to be a lot of work that goes into it, but it’s not a secret. I think the reward or the juice is definitely worth the squeeze on this one. So a hundred percent. Yeah. No man. It’s amazing. You’ve done 32 deals over the last seven months, a year ago. You said earlier that you were in the edge of bankruptcy and you had how much to pay off?

Dan:
Over $350,000 in debt.

Rafael Cortez:
Okay. Over $350,000 in debt. And you just made a massive, massive turnaround. Right now you have deals in the pipeline. You have one massive deal, particularly that I want to tap into. I want to dive into it. Just want to see what your particular process is, but it sounds like a pretty healthy deal. First, what’s the rundown on the deal.

Dan:
So this is a single family home. It’s a big ranch. It’s like 2,400 square feet in a hot zip code here. And it’s been vacant for, I think, seven years. Yeah. It was purchased as a flip, they put $80,000 into it and they were almost done and they ran out of money. And instead of selling it in that condition, they just let it sit. And now there’s holes in the roof. The basement had five feet of water in it. There’s mold everywhere. He just threw away all that investment. I don’t know why. People do weird things.

Rafael Cortez:
Some people have a lot of money. They [inaudible 00:22:59].

Dan:
Yeah. And so we used text message marketing to sign the guy. We got some contact, but man, it was tough to get ahold of this guy. There were at least three separate occasions where he said he was going to meet me at the property and he didn’t show. Either he wouldn’t answer his phone or he wouldn’t reply to text or he wouldn’t answer emails. And then he would get back to me a week later and have some excuse. And so it was probably three or four months of me just following up with him because I knew there was opportunity there. And finally, got him to commit to a time.
And I was polite about it. Sure. I was super annoyed that I had showed up there three times and he didn’t show. But in the end, I got the deal. I was able to take him through my sales process, use the same script and sales process that I always use and got that pain out of him. Went straight into price, got the agreement from there, got the agreement right then and there. That’s what I do every single time. And so that deal in the end, that’s going to be a $50,000 wholesale deal.

Rafael Cortez:
Wow! So you had a followup of four months to try to get this guy through the door. And you were seeing all the red flags. So the property is vacant. The property is run down. The property it’s in a hot spot. So he knows he’s got something in his hands. You just can’t get ahold of the seller to save your life. Four months of follow-up go by, about how many times do you think you reached out to the seller?

Dan:
At least in the beginning, probably three times a week. I sort of tapered down as we go on, but I was calling him from different phone numbers.

Rafael Cortez:
Did the stealth thing. Yeah.

Dan:
I was texting him from different numbers. I would call, he wouldn’t answer. Hang up, I would call right back again to see if he would pick up. I was trying everything. But I-

Rafael Cortez:
That’s what it takes. That’s what it takes. That’s really what it takes.

Dan:
Having the follow-up is key because there’ll be a lot of people that the timing just isn’t right. And timing is everything. If you’re a day late, you can miss out on a great deal, because someone else got there first. Because trust me, you’re not the only one trying to get that deal.

Rafael Cortez:
They’re getting bombarded with calls, with even letters still. A lot of people still do direct mail, but not letters, phone calls, text messages, voicemail drops, there’s all kinds of stuff going out there and they’re getting bombarded. They know what’s happening. They know that they can’t just raise their hand and 50 people are going to have run to them with an offer. So you just have to be top of mind somehow some way. You’re going to lose a lot less deals because you’re following up too much than if you don’t follow up at all. That’s a key. It’s simple. If you have something, if the red flags are there, you already qualified that lead and it’s now a prospect and it’s somebody that you can close, stay on it. You can’t be shy about calling. You can’t be shy about reaching out.

Dan:
Right.

Rafael Cortez:
That’s the thing.

Dan:
Yeah. You got to get on the phone.

Rafael Cortez:
Absolutely.

Dan:
I can’t even count, hundreds probably close to a thousand different sellers that I’ve spoken to that initial conversation. And I’ve gone through my script so many times. I know it so well that when I was training one of my people yesterday, they asked me how many times I had gone through that. Because right now for me, it’s so fluid. The tonality, that is so important to the script that we use and all those little nuances. He was asking me, “How’d you feel when you first started this?” I said, “Probably the same as you.” Because it’s awkward at first. And it takes a lot of practice. I reworked my script so many times. I wrote it out by hand so many times to commit it to memory. I was doing, on the side, just role-plays with another buddy of mine two to three times a week, just so I could get it down.
So yeah. Anyone who’s starting off or maybe you’re doing one to two deals a month, or maybe not even quite that much, but yeah, it’s going to take a lot of work. But this is a business that you can really scale up, create a solid, strong business with great margins and really systematize it to the point where you can get people running it for you and helping you out to whatever degree you want. There’s a lot of people that they want to still maintain some role in the day-to-day operations. And that’s great. The point is that you can pick and choose what you want to do once you have those systems in place. And once you put in the time, because it’s going to take time, it’s going to take a lot of work, but it’s going to be worth it.

Rafael Cortez:
One thing that happens too, is that people try to delegate too soon before everything’s kind of settled in and everything dialed in to their operation to the way they do business or they work on it. They just want to hand it over too soon. And that’s really… If you don’t take the time to hand it over to the right way, it can be a problem. So you got ahold of the seller finally, went through it. What was the situation?
He’s sitting there with a vacant property. He’s dropped $80,000 into a rehab aside from whatever he bought it for. And this guy was not making any sense at all. He was giving you the run around. However, you sat with the guy, you went through your process and then you closed it right there. I’m assuming that you had to do a deep conversation to figure out what the real problem with him was, right?

Dan:
Honestly, I still don’t have a good reason as to why he didn’t sell it. I don’t know if he just was the most hopeful guy in the world and just eventually hoping that they would get the money to fix it. And I can understand that for maybe six months or a year. We can find another way to make that money back and then start this property again, but seven years?

Rafael Cortez:
Yeah. Were they in financial distress, where they…

Dan:
So it was an older gentleman. He had wanted to do flipping as basically his retirement. So I’m not going to say he was in huge financial distress, but he at least wanted to get something out. There was pain about the project. And so I was able to leverage that, because at that point he was still paying taxes on it. He had put all that money into it and he just wanted to get something out and he just wanted to move on. And so I was able to work on those pain points and help him to move on. Bring out the pain and motivation that he had. And also couple that with, hey, if we work together, this process is going to be so smooth. Here’s what we do. Here’s how we do it. And we can solve all those problems and finally let you move on. That was what he was really looking for. It was just this thing weighing over him that’s been there for seven years. It was this big failure that he had never really let go.

Rafael Cortez:
If you don’t know what the problem is, you’re not going to be able to solve it. And it’s not always money, simple as that.

Dan:
Yeah. 100%. I think that’s a mistake that I know I used to make. And I know that a lot of newer wholesalers and investors tend to make is they focus on the dollars. And at that point you’re having an intellectual conversation and that is not what motivates people to sell their property. What motivates them is solving their problems. It’s solving their pains. And so you need to get and find what their hot button issue is. What’s their motivation? What’s the pain behind it? What are their personal feelings behind it? And that’s where you can get the price drops. Because you go through all that, you spend most of your time there and building rapport and getting those pain points. And then the price conversation is quick.

Rafael Cortez:
It is. And it really becomes a value add, because you’re adding value on your end through the solution and they’re adding value on their end through the equity, right? So that’s really kind of where it happens. I get asked all the time, “Why would people sell for 70%, for 60% of the property value?” It’s not about the price sometimes. There’s a million things that can be happening at any point in time, you just got to be there top of mind whenever that happens, and then come in and solve it. What was the ARV of the property?

Dan:
That one is about 240. It’s going to need about a hundred thousand in work. I got it for 50,000.

Rafael Cortez:
You got a property for 50,000. This guy dropped $80,000 a while back into it and whatever else he bought it for. So he’s got it-

Dan:
Yeah. I think he bought it for 70.

Rafael Cortez:
Yeah. Wow!

Dan:
He bought it for 70, put another 80 into it.

Rafael Cortez:
So he took a $70,000 haircut and all he wanted was to just move on. Wow. Okay.

Dan:
[inaudible 00:31:14] it wasn’t about the money anymore.

Rafael Cortez:
Okay. Those are crazy good numbers for a deal in New York. So you locked it for 50K, are you selling the contract? Are you taking it down?

Dan:
This one, I am double closing. So generally, if my fee is more than 20,000, then I’ll do a double closing. If it’s less than, I’ll just do a straight assignment of contract.

Rafael Cortez:
Okay.

Dan:
So on this one, I’m doing a double closing because it’s a big fee. So we’re able to do simultaneous closing so it’s same day. So I don’t even have to put any money down. I signed my papers and my buyer signs his 30 seconds after me. And since the funds only need to be there at that day, my buyer brings the funds to closing. We use his funds. Part of that goes to the seller. Part of it goes to me. I walk away and we’re done.

Rafael Cortez:
Awesome. Double closing is for those who are new to wholesaling. It’s you are actually taking the property down, meaning that you’re buying it. It’s going under your name for a very brief period of time. And then you are selling it right away to the end buyer. You close two times, so you double close on the same day. So you take it from your seller and then your buyer takes it from you, but there’s a legal transfer that’s taking place in those, those transactions. Now, thank you for sharing that. And really breaking it down for us, giving us that picture of how you’ve gone through things from even a year ago, and then started crushing at seven months ago to 32 deals now, it’s insane. What are the top three things that new wholesalers or aspiring wholesalers need to be focusing on?

Dan:
One, I would say taking consistent action and not getting stuck in education mode. Yes. You want to continually educate yourself, but you need to put that into action.

Rafael Cortez:
Absolutely. Absolutely. Yeah.

Dan:
I would say another one is, you don’t need to reinvent the wheel. Learn from people who are doing it successfully. Model the behaviors, the mentality, the mindset, the body language, the physiology of those that you want to be like. What are these people doing? You can do that too. You might not be where they are now, but you can get there by modeling the behaviors that they do. And-

Rafael Cortez:
Love it.

Dan:
… the third thing I would say is make sure you’re actually creating a business. And that goes down to constant improvement and systematizing. You can’t hire people if you don’t have systems in place. You can’t give someone a training manual or instructions on how to do a job if you don’t have that stuff documented. Because then if you hire someone and you don’t have those systems in place or your training documented, they’re going to be coming to you every five minutes with questions about how to do something. And you’re not going to be saving yourself any time. You’re just going to say, “I might as well just do it myself.”

Rafael Cortez:
Yeah. You can scale systems or you can scale chaos, one of the two.

Dan:
So doing those things, really treating it like a business, modeling the behavior of others and just constantly taking action to get a little bit closer each and every day.

Rafael Cortez:
I love it. What book are you reading right now that you think somebody needs to go get.

Dan:
Oh man, that’s tough. I inhale books.

Rafael Cortez:
Yeah.

Dan:
I got a few hundred right here. So right now, I’m reading a book on copywriting. I think it’s The 16-Word Sales Letter or something like that. It’s for just writing ad copy. But some of the recent ones, The Ultimate Sales Machine by Chet Holmes-

Rafael Cortez:
Oh, it’s a good book. Yeah.

Dan:
… Is phenomenal. Read that recently. The Ultimate Blueprint for an Insanely Successful Business by Keith Jay Cunningham is also really good. That’s more on the financial side of things and looking at how you’re analyzing and making financial decisions in your business, but also super important. And then for just a general business book, Traction is huge. Or really any of the books in that series, Rocket Fuel, Get A Grip, any of those, but Traction is a little more robust. And so that one, it really breaks down for people, what are the different meetings you need to be having on a regular basis? How do you run those? What are the different roles you need to have in your business?
The different functions. What is each person doing? How are you even deciding those different things? What’s your organization chart and your accountability chart look like? And just really how to run a business. For people that are looking to really scale and create some consistency in their business, that is key. Learning how to structure things, because now everyone knows how to do that right off the bat. Not everyone went to business school, most wholesalers probably didn’t, but you can learn all that stuff. And so that book, I know most wholesalers or real estate investors that I’ve talked to have read that book. And a lot of them use that system to run their business. So I would highly recommend that one too.

Rafael Cortez:
Yeah. That’s a great, great cornerstone book. Awesome, Dan. Well, thank you so much, man. I appreciate you sharing your journey with us and really breaking it down. So there you guys have it. Massive action. If you want to get those $50,000 deals coming through the door, it’s doable and this guy has done 32 deals in the last seven months, which I still think it’s insane. Thanks for listening. There has been no better time than now to jump starting your wholesaling career. So if you’re ready to take advantage of the best opportunity out there to create wealth, if you want to cut the learning curve and you want to do it fast, scroll down, head over to the wholesalinginc.com website. Again, that’s wholesalinginc.com and schedule a call with our team, have a conversation. If it works, you might get an invitation to become a tribe member. And if so, I look forward to working with you personally. In the meantime, stay focused. You got this.

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