Staying on that loop in your wholesaling business and not hitting big deals? This episode may bring answers to what you are missing in your wholesaling business.
In this episode, learn from Brent about the three steps you need to master to absolutely explode your real estate wholesaling business: Lead Generation, Conversion, and Disposition. Brent will guide the listeners on the right decision for every step to ring that bell and hit that massive success in your real estate wholesaling business.
Do not pass up on this mind-enriching opportunity to learn ways to boost your business! Listen and Learn the secrets to a profitable and rewarding wholesaling business.
3 Steps To Building A Massively Successful Real Estate Wholesaling Business
We are talking about the three steps that you need to master to absolutely explode your wholesaling business. Number one is lead generation. We’re going to break that down. Number two is conversion. This is so important. Everybody thinks that it’s all about getting all the leads, but if you can’t convert those leads, you don’t get paid. The third step is disposition. It’s actually getting paid on these deals and having an exit strategy.
Let’s start with lead generation because this is what gets our blood pumping and gets us excited. There are three ways. We’re going to talk about three things in each step because it makes it simple and easy. We don’t have to over-complicate this. Everybody wants to be smart and come up with all these creative things. What it all boils down to is this is a very simple business. There are only three ways to get leads. One, you do marketing, bandit signs, pay-per-click, direct mail or Facebook ads. These are marketing.
These are people calling you off of your marketing effort. It absolutely works. People have made millions of dollars doing this, but people have also spent millions of dollars, and this is the biggest budget item. When you’re looking at your wholesaling business, it’s your marketing expense. I’m going to caution you that if you’re making a ton of money, if you’re getting these big checks, if you’re making a huge impact in your community and you’re pouring it all back into your marketing, it doesn’t go to your family, portfolio or bank account, so you have to watch it. You have to watch when you are waiting for the business to come to you because you are sending out marketing and you’re spending a lot. Your budget is put towards all of these marketing efforts. Look at your bottom line. It is absolutely critical because your bottom line is what you put into your investments, what goes into your family, and what pays off your debts.
Number two is referrals. You can get leads from referrals. You can go out there and you can be the guy or the gal in your community that people bring deals to and either sell them or buy them. The person that people go to when they find a deal but they don’t know how to sell it. This is huge because you can either go direct to the seller or you can go direct to investors. Other investors bring in new deals. Other real estate agents bring in new deals. People in the community referring you beat-up houses and they want to beautify their neighborhood. You can be that person.
It is the absolute and most profitable, but it takes time. You have to build up your reputation. Typically in this business, you’ve got to start closing on deals so that you get the credibility. People know that when they bring a deal to you, they’ll get paid on it because it gets closed. A lot of people out there, what they’re doing is they’re taking some other wholesaler’s list, they’re marking up these prices, and then they’re going out to their buyers and trying to sell all these deals, telling the other wholesalers, investors or realtors, “Yes, I’m going to buy your deal.” They don’t buy the deal. It’s called daisy-chaining. They’re taking somebody else’s efforts, they’re marking it up, and they’re getting it out to their database. That’s fine. People make a ton of money that way. That is a strategy, but I’m telling you with referrals, it takes time. You got to build it up, make sure that you’re closing, and you have to have an excellent reputation.
Number three is TTP, Talking To People. It’s prospecting. You are either going to the door and door-knocking or you’re picking up the phone and you’re calling. That’s it. You are being proactive. You’re going out every single day and you are having quality conversations with distressed property owners. All of this comes down to quality conversations with distressed property owners or the people that represent property owners like the other investors or agents if you are getting those referrals. When you’re proactive, here’s the beauty beautiful part about it. Everything is on your schedule.
Everybody wants to be wealthy, happy and healthy. Do you know what people don’t talk enough about? How about their time? How about the value of their time? How about the value of being able to pick and choose what you want to do with your schedule? The freedom of schedule is one of the greatest gifts of all time. When you’re being proactive and you’re going out every single day and you’re talking to people on your schedule, your whole life opens up because now, people are working on your schedule, not the other way around.
When you’re waiting around for referrals, you better answer the phone when it comes in. When you’ve got marketing coming in, you better be answering that phone, email, lead or whatever it is. You got to answer it like that or have a staff to do it, but if you don’t have a staff, it’s on you. I get the grind, passion and hustle. I get all of that but I prefer doing that on my schedule. That’s what I’m encouraging you to do. I’m encouraging you to be as proactive as possible, but the action item right now is making the decision.
The freedom of schedule is one of the greatest gifts of all time.
What are you going to do? Are you going to market? Are you going to get referrals or are you going to prospect? Are you going to be proactive or are you going to be reactive? Make the decision because that’s the number one thing. If you mess around here, you’re floating around, and you’re trying to do all of it, you are dead in the water. If you do too much, you won’t do anything. That’s the first thing, lead generation. We got to get these leads in. It’s a big funnel. We got to fill up that funnel. We’ve got to build up that pipeline of leads.
Number two is conversion. This is so critical and probably the hardest step as a coach to teach people how to do and really get in there. Lead generation is great, but converting it. This is what it’s about, prequalifying, lead follow-up, and seller appointment or the phone appointment where you get the seller to make the decision to trust you to get the deal done.
Prequalifying, we talk about it all the time. We prequalify every seller based on the condition of the property, their timeline to sell, their motivation and their price. Traditional real estate and people that are going to sell traditionally is about the property. People that are in distress, it’s about the person. Six to ten percent of your market, of the nation’s market, of every property in the United States is in some kind of distress. There are too many deals. Don’t worry about competition. It’s all about collaboration. There is a conveyor belt of deals. Let me get that through right now.
Drive around. If every property in America is looking great, in great shape, everybody is taken care of it, and everybody is paying their bills, mortgages and everything, then I’ll stop saying that, but it’s not going to happen. There’s so much opportunity, but we’ve got to be able to convert the sellers. They have to want to sell. They’ve got to trust you to get the job done and they got to have a problem that you can solve. That’s a prequalified seller. It’s the condition of the property, timeline to sell, motivation, and the price.
Now, lead follow-up. You are not going to lose deals from excess follow-up. You will lose deals by not following up. It’s the struggle that everybody goes to. They love hunting. You guys out there love being proactive. You love lead generation, and then it goes to lead follow-up and it slips through your fingers. I don’t understand it. You’re doing all these efforts. Get rewarded for it. You got to do your lead follow-up. Three calls, three texts, if they don’t respond, give them a couple of days, 3 by 3. Don’t get crazy. Don’t call them a dozen times back-to-back but three calls, three texts, and there’s your lead follow-up. It’s simple. Don’t over-complicate this.
For the seller appointment, you need to get advanced agreements before you go on these appointments, “If what I say makes sense and you feel comfortable and confident when I come out, are you ready to sign the agreement and the paperwork?” I caution you to use the word contract. A contract is what you sign with your mobile phone company and you’re like, “Why did I sign this? There are so many hidden things.” Contracts feel a little bit icky, but agreement or paperwork, no big deal.
“Is there anything stopping you from signing the agreement when I come out there?” Get the objections first before you go to the appointment. Prequalify before you run out to every property. Get them prequalified and get some advanced agreements. The appointment and getting the contract sign is a natural progression of your prequalification. There are no magic things here and there, zingers and all this stuff.
The third part is disposition. What do you want to do? Do you want to wholesale? The beautiful thing about wholesaling is it gives you the capital or the money that you need to be able to do a lot of other things like quit your job, hire people to do different roles, buy cherry-picked properties, and be able to build up your portfolio. When it comes to disposition, you’re either wholesaling it. You’re just selling the paper, going to fix it up and flip it, wholetail it where you close on it, and then just put it back on the market, or you’re going to keep it in your rental portfolio. Three things. What a surprise. You’re either wholesaling it, flipping it or you’re going to keep it as a rental.
You are not going to lose deals from excess follow-up. You will lose deals by not following up.
With wholesaling, disposition all comes down to your cash buyer database. It needs to be as big as possible, and that’s going to make you the most amount per deal because everybody has a different strategy for what they want to do with the property. If you’re only selling to flippers, you’re not going to make as much as if you’re selling it to people that are building up their portfolio. Build your cash buyer database with both of them. Build them with everybody. If somebody wants to wholesale on top of your wholesale. You’re building your cash buyer database based on all of these things. That’s for wholesaling.
If you’re going to fix and flip, I’m going to bring some people on that are absolute experts at that if that’s your passion. If you want to build up rental, I’ve got killer people coming up in episodes in the next couple of months that have huge portfolios that are going to break it all down. What are you going to focus on? Have an honest look at yourself and your business, and at these things that I just broke down. Lead generation, marketing, referrals, prospecting, which do you choose on the conversion? Which are you the weakest at? Is it lead follow-up? Is it pre-qualifying and comping these properties? Is it the seller appointment? With disposition, are you going to wholesale, fix and flip, wholetail or are you going to keep this in your rental portfolio?
Simple, guys. Three steps under those steps. Look at it, examine your business, find where you’re weak at, and start challenging yourself now to start improving on your weaknesses. It’s going to explode your business. You’re going to get out. I’m going to ring this bell for you because you are going to be closing deals. You’re going to change your financial future. I love it because you’re going to be taking action.
That’s it, guys. Very simple three steps. Remember it. Don’t over-complicate it. If you want to take it to the next level, you’ve got this figured out, your business is rolling, you’re getting good at this, or you really want to take it to the next level, then check out the TTP Program. I will mentor you personally. It’s at WholesalingInc.com/TTP. Check it out, scroll down, check out what the program is about and check out all the testimonials. If it feels good in your gut, sign up for a call. I would love to work with you personally. You guys are the best. I love you. See you.
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!