Posted on: February 23, 2021

Get excited as Brent answers the Top Ten most commonly asked Questions for new investors who just started venturing into the wholesaling business.

Know the answers from Brent and get valuable inputs to guide you in handling common hurdles or issues on wholesaling if you are new in the business.

If you are searching for answers, then this is an episode that you do not want to miss!

Key Takeaways

  • On moving on to something else and finding other deals if there is a big IRS lean on the property and squeezes out all the equity
  • Finding cash buyers by joining Facebook groups, calling real estate agents selling properties in the neighbourhood, and talking to bidders in auctions
  • Brent’s suggestion for newbies to start sending a hundred texts a day and see how it feels and start growing from there
  • With LLCs, go the extra step to find the name and mailing address of the managing member through where LLCs are registered.
  • In skiptracing uploading, put both the physical and mailing address and attach it to the mailing address that you are trying to get a hold of.
  • In cold calling, get the numbers or price out of them first or check Zillow and ask more questions.
  • In talking with people with leans, build rapport by asking them at a friendly neighbour pace if they accept an offer on their property.
  • Post on social media that you are looking for somebody who wants to drive part-time to get those dollar drivers, preferably the retirees.
  • Using  DocuSign in sending contracts and other e-signature resources
  • Using TurboScan app in sign contracts face to face
  • On pre-qualifying leads before doing work or comping

RESOURCES:

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Episode Transcription

Brent Daniels TTP:
Hey, everybody. It is Brent Daniels TTP and we are here. We’ve got some amazing questions that you guys have been asking us. So Alejandra, first of all, how do you pick these questions out of all the other ones and how many are we going through today?

Alejandra:
So usually, typically, we go over 10 questions. How I look at the process is just seeing what is the most common questions that we are always getting asked.

Brent Daniels TTP:
Awesome. So, let’s get going.

Alejandra:
Let’s get going. So, our first question is from [Curdy The Great 00:01:20] and he asks, “How do you help someone that’s behind in taxes and mortgages that is owed to the IRS? Will the money she gets from selling her house cover all that?”

Brent Daniels TTP:
It just depends. Obviously, you have to make sure that she has a good amount of equity, right, or whoever. If you run across somebody that has an IRS tax lien, it just depends on what else is owed on the property. For example, let’s take that the house is worth 200,000. You need to buy it for 100,000. They owe 60,000 on it, but there’s an IRS lien on it for 60,000 as well. Right? So now, it’s over what you can pay for it. So, you’re going to have to do some negotiating either with the IRS, which typically they don’t really care. Now, sometimes what they can do is they can take that lien and put it on another asset that the person has, or they can settle and only get a certain amount. So, you can go through that. It’s really, really, really tricky. What I would say is if there’s a huge IRS lien on a property and it squeezes out all the equity, move on to something else. You can find better deals. These ones that are really tricky, can you get them through? Absolutely. Should you? I don’t think so.
Especially if you’re just starting out, you want to get these easy wins. You want to get some people that have significant equity. Remember, when we’re looking for wholesale deals, people are going to trade their equity for speed and convenience. So, find people that have equity. But if there’s only small amounts, the title company will take care of it. So, what they do is they get a payoff statement from the IRS. That’s going to pay off their mortgage. They’re going to pay off their back taxes, pay off any property taxes that they have. Any liens that are on the property get paid through the title company or the closing attorney. So, let them do their job. That’s their job. Your job is to go out there and find deals and to find cash buyers to match them up with. So, let the title company take care of all that. That’s what they get paid for. Got it?

Alejandra:
Got it.

Brent Daniels TTP:
Awesome.

Alejandra:
Okay. Where do you find your first cash buyer and how does that process look like?

Brent Daniels TTP:
Okay, guys, let’s say you’ve got a deal right now and you want to sell that. Okay. First thing that I would do is I would find all the Facebook groups in your local market, join them and post that you’ve got a property, and see who starts responding there. Okay. What you can also do is you can start calling the real estate agents that are selling properties in your area, in that neighborhood, or they’re representing people that are buying or flipping properties. Call them up and see if their buyers are ready to do another deal, do another project. That’s really, really powerful to go after those people.
Then, phenomenal place that people don’t go to and reach out to is any of the foreclosure auctions that are all done publicly in your areas. Go to those auctions and talk to the people that are bidding down there. I am telling you, they’re cash buyers. They represent a ton of people and they’re going to move really quickly on those deals. Okay? So, don’t be afraid to go down. Now, don’t interrupt those people while they’re bidding at the auction-

Alejandra:
Oh, no.

Brent Daniels TTP:
… because they’re not going to like that. But, go over, talk to them while there’s a break in the action and see if they want to pick up your deal.

Alejandra:
Awesome. So, how many text messages do you send every day? 70% delivery or what should we expect in responses?

Brent Daniels TTP:
We send out about 2,000, two to 3,000 texts a day with a 70% delivery. Typically, we’re going to get about 10% back that have some interest in that conversation. So, it’s about 200 texts a day from that. Right? So if you’re sending out 2,000, you’re going to get about 200 back and it’s just typing, getting through quickly. So a lot of the times, with Chris and Eric, they’ve got responses already cut and paste that they can put in so that they can handle that much volume. Now, my suggestion for you is start with 100 texts and just see how that feels. Because if you get 10 back, that’s very manageable, and then start growing from there. Don’t just go crazy and get overwhelmed, and then miss things that you shouldn’t. If you’ve got too much coming in, then you’re going to miss the ones that you really need to pay attention to. So, start with 100 texts a day. Got it?
Now, there’s a couple of resources for that. If you are wondering, TextMagic is one that you can get into. If Lead Sherpa is available in your area, it’s a phenomenal resource.

Alejandra:
Mind of Mike says, “Now, I have a question about skip tracing, these absentees, because a lot of times, come back as LLCs. I’m not able to get a phone number. What’s the best approach when you encounter an LLC?”

Brent Daniels TTP:
Okay. That’s really interesting and this happens a ton. So with LLCs, you need to go and see where the corporate documents are all gathered. Right? With us, we go to the Arizona Corporation Commission. Look at your corporation commission, look at whoever runs and gives people the LLCs in your area, right, wherever you have to register them. That’s public information. When you register for an LLC or a company or whatever, it’s public information. Go find who the managing member and their mailing address is on there. Now, it takes a couple extra steps, but it can be really, really, really powerful because not a lot of people are going to use those extra steps.
Remember, in this business, if there are hurdles to get past to get a deal done or to go after distress seller, most people won’t do it. Most people won’t do it. Most people just want to give the easy list and go after them and start talking to people. And I love that. But, if you’re in an area where you’ve got a property that is really rough, that you really want to get after, that you really want to take down, go that extra step, go to wherever the corporation commission is or go wherever it is recorded in your area, just Google it. Honestly, you can just Google it and find that information and find who the managing member is, and then skip trace their mailing address and their name. Boom, you got them. And then, attach that to the property, reach out to them, ask them if they consider an offer on their property, lock up that deal and sell it to a cash buyer.

Alejandra:
When do you upload the data to skip tracing? Do you recommend using the physical address template-

Brent Daniels TTP:
Yeah.

Alejandra:
… or do physical address and mailing address template?

Brent Daniels TTP:
Right. So, you’re going to put both of them. But, what they’re going to pull off of is the mailing address because that’s going to be the most likely phone number of the owner, because that’s typically where they live. That’s where they’re going to register most of their phone numbers too. But, you put them both in. When you go to batchskiptracing.com, you put both of them and they’re going to pull it off of the mailing address, but attach it to the property address that you’re trying to get ahold of. So, it’s way better hit rate. See, a lot of skip tracing companies don’t do this or don’t understand that. That’s why people have low contact rate or they’re talking to a lot of wrong numbers or tenants or whatever. Batch Skip Tracing has got the whole system figured out, just upload it and they’ll take care of you. So, a really great question, I get that question a lot, but they usually go off of the mailing address. But, they’ll attach it to the address that you’re trying to get ahold of.

Alejandra:
Awesome. Bill Husson says, “Does your cold callers know what to offer when they first call? Do they also know how to run comps to know the ARV?

Brent Daniels TTP:
That’s interesting. So Bill, first off, get the number out of them first, get the price out of them. That is the art of this. That is the art of asking really great questions and following the TTP script. It is a numbers game. The more distressed property owners you speak to, the more successful you’re going to be. It’s a simple business, the very simple business. So, let’s say that they’re not going to give us any information. They’re not going to give us a price. You call me. I have no idea, but we’re asking several different times how we get the price or what price they want, and they don’t give it to us. Okay. Well, then, what I’ll do is my cold callers, we’ll look at Zillow, because in our Tyler is a button. You press the Zillow button. It comes up and they’ll give about 66% of Zillow as just a shot across the bow. Okay? It’s very simple. It’s not overthinking. I need to know if these people are motivated. I need to know what their expectations are.
Now, initially on the first call, a lot of times, they’re a little bit guarded. They’re going to stiff arm me a bit. They’re going to build that shell. They’re going to have a lot of reflex nos. And to really define that, it’s like, when you go to a car lot, then you’re walking around and they’re like, “Hey, do you need some help?” You’re like, “No.” Well, why are you on a car lot? You know what I mean? But, you just have that natural reflex no because you want to protect yourself. You don’t want to be taken advantage of and you don’t want to be sold to. Right? So, it happens the same at a clothing store or whatever else or wherever you’re going.
So anyway, throwing out that number is going to give you some idea if you’re going to be in the ballpark with these people or not. If they say that that sounds pretty good or maybe a little bit more, you know that you’ve got a really, really hot lead and you need to be all over it. Okay? So listen, get the number out of them, get the number out of them. A lot of times, they’re going to ask you, “How much are you going to offer me? How much are you going to offer me? How much are you going to offer me?”
That’s fine. If you want to take a shot across the bow or you can defer, my partner runs all the numbers. Let me talk to him. I just want to get… Condition is important with this property. Can you tell me if you’ve done any major remodeling to your kitchen and bathrooms in the last five years? Can you tell me if you were to invest into this house, where would you spend your money? What do you think needs to be improved? What do you think needs to be renovated? That type of thing. Those questions are going to draw their condition out of the property. It’s going to open up the conversation and it’s going to allow you to keep asking them what price they want, what price they want. Okay. And then, it’s going to allow them to feel more comfortable in that conversation as opposed to just being on the phone for 15 seconds and be like, “Oh, I want 100,000.” And on Zillow, it’s 250. You know what I mean? That happens by the way. It does happen. It doesn’t happen often, but it happens.

Alejandra:
Awesome. Austin says, “What do you say to homeowners with liens when calling them? How does that dialogue here-”

Brent Daniels TTP:
The same thing, guys, don’t overthink this. Just ask them if they would consider an offer on their house. It is a little bit creepy. You’re going to pause friction in these conversations. If you call up and say, “Well, according to public record, I see that you owe 7,800 on a private judgment that you got in 2017.” You want to build rapport? That’s not the way to build rapport. I’m telling you, that is not the way to build rapport. The way to build rapport is simply ask them if they would consider an offer on their property, have an unbelievable tone of voice, right, don’t go too fast and don’t go too slow with them, so pacing is really important, and just sound like a neighbor. Don’t sound like a credit collector that’s asking them about some debts that they owe. You know what people don’t want to talk about to a stranger? Debt. Okay? They don’t want to just come out-

Alejandra:
That’s true.

Brent Daniels TTP:
… and be like, “Oh, yeah, that judgment. Yeah. Well, that I shouldn’t have that or whatever else or I’m working on it, or I got that paid off or anything like that.” Just ask them if they’d consider an offer on their property. If it gets into the conversation, you can say, “You know what? Listen, I’ve worked with a lot of people. I understand that you have a recorded judgment on you here.” You can ask that later in the conversation if you’re building that relationship, if you’re building that rapport. And then, you can bring that up. But, don’t just bring it up off the bat and hit him in the face with it, thinking that they’re so desperate that they’re going to sell their house to you. Could it happen? Sure. Does it happen often? No.
In my experience, and trust me, I’ve tried this. I’m not just saying this because I’m like, I didn’t try it out. I tried it, foreclosures, liens, tax default, all of it. I would start out the conversation with that and it wouldn’t… And then, I just open it up to being friendly neighbor. I want to see if they would consider an offer in the house. And then, they naturally would tell me about it or I would ease it into the conversation. So, don’t go crazy with it.

Alejandra:
Paul Sullivan says, “How do you hire and pay your drivers?”

Brent Daniels TTP:
All right. This is drivers, driving-for-dollars drivers. A couple of different things, honestly, I just posted it to my personal Facebook page. Just saw, if anybody-

Alejandra:
Instagram.

Brent Daniels TTP:
… wanted to do Instagram, Indeed, you can post to Indeed. But really, don’t worry about any of these things. Just post to your social media and just say you’re looking for somebody that wants to drive part time. You’re going to find a lot of opportunities there. And then, just find somebody that’s going to be reliable but also has a schedule. My advice is get somebody that’s retired. One, they don’t look suspicious driving around and they’re much more kind. They’ll get out of their car and talk to somebody that is in the front of their house, but the house is all beat up. You know what I mean? Or, it looks like it has potential or they might be putting out a sign, like a for-sale-by-owner sign. The older retired people, just get out and go talk to them. So, that’s what I did. I found some great retirees that would drive around. They wanted to make a little bit of extra money to supplement what-

Alejandra:
Wow.

Brent Daniels TTP:
… they were doing and they just wanted something to do, to be honest with you. So, I think going after retirees is really, really a strong strategy.

Alejandra:
Okay. Our next question is from [Xtani Baxi 00:13:49]. Do you recommend using DocuSign to sign contracts or any other service? Also, do you use it for both in-state and out-of-state?

Brent Daniels TTP:
Yeah, we do. Unless we’re going to meet in face to face and just get the contract signed or unless people want to come to our office to sign the contract, we’ll just send a DocuSign. I’ve used it for years. I think that you can use any of them. Honestly, there’s a ton of e-signature resources that you can use. So, I use DocuSign. It’s just simple, easy. It alerts me when the contracts get signed and then the process starts. That’s always exciting when you see that you get that email, that the DocuSign is completed. Boom. Now, you’ve got that signed contract. Or, when you send it to the cash buyers, we almost always exclusively send the DocuSign to our cash buyers. They’re so ready right now that they’re going to sign really, really, really quickly. So yeah, it’s awesome.
In-state and out-of-state, if we’re not meeting with them, if we can meet with them, we’ll do it face to face and just get it signed up. And then, what we do is if we do get it signed face to face or anything, I have TurboScan. It’s an app on my phone. So, we’ll scan it right there at the table with the seller. And then, I’ve sent it directly to the title company that fast so that they know we’re serious, a little pro tip there.

Alejandra:
A little pro tip?

Brent Daniels TTP:
Mm-hmm (affirmative).

Alejandra:
Clint Wheeler says, “Do you run comps on all the leads that come in from the driving-for-dollars leads or do go through them until you pick them first?”

Brent Daniels TTP:
So, it depends on what you mean by lead there, Clint. So, a lead is not just that it’s in your database because there’s thousands of thousands of thousands. A lead is when somebody says yes or maybe they would consider an offer on their property. When it comes to that, then yes. When they want an offer on the property, we’re pre-qualifying them based on the condition of the property, timeline to sell, motivation to sell, and the price. Then, we’ll start comping those properties. But, I’m not going to send it to my disposition manager to comp or my acquisition managers to look at the comps unless they want to consider an offer in property. Listen, don’t do work and just hallucinate and assume that you need to know everything about a property before you understand if somebody has a problem that you can solve. Quote-unquote, motivation, they need to be motivated.
Remember, with wholesaling properties, it’s different than traditional property. Traditional, the 94% to 90% of people out there will sell traditionally with a real estate agent. They don’t have a problem that you can solve. So, it is about the property with these people. The 6% to 10% that we go after, that are in distress, it is about the person’s motivation, the person’s problem. It’s not about the property. It’s about the problems. It’s about their motivation. So, you need to get that information before you do any work on it. Now, if you want to go and get some experience comping property, that’s fine, but don’t get lost in it. Don’t get lost in this whole thing of doing too much of the analytics before you understand what people’s problems are. That’s the most important thing in this business. That’s why we get big checks. That’s why this is a cash machine. It’s because we solve the problems of the seller. And then, we solve the problems with the cash buyer that needs a property. So, they can make a profit and you can make money. So, there you go.
If you’re interested in joining the most proactive group in real estate investing, it is the TTP Program. Go to wholesalinginc.com/TTP. I personally mentor you. You get my cellphone. We text, we call. It’s crazy. It’s bananas, right? But, it’s the truth because I want you to be as successful as possible. I want to work with you and I love you. So if you’re interested in that, wholesalinginc.com/TTP, check it out, scroll down, keep scrolling, the little scroll things like tiny, because there’s so many testimonials. Nobody, nobody has more testimonials. Check it out. If it feels good in your gut, sign up for a call. Until next time, you’re the best, TTP.

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