Hurdles in the wholesaling business are inevitable. Winning in the business, however, requires the right moves. Tips from the experts will help in times of difficulties.
As one of the Wholesaling Inc. coaches, Brent Daniels will give a piece of his mind answering the six biggest questions that most real estate wholesalers get wrong. This episode will help real estate investors to know the red flags in doing the business. This episode will also guide investors to avoid such mistakes to make their wholesaling experience easier through Brent’s tips.
It is time to indulge in this information-filled episode. Learn from the expert and enjoy!
- The first tip, Brent’s attorney hack, to take all title concerns to the title company
- Answer to the second question on how long it takes to hit a deal in wholesaling
- The third tip on working directly with sellers and wholesalers in town
- The fourth tip on the three preferred lists and testing it
- The fifth tip to get the price out in the contract
- The sixth tip to get motivation and the right mindset in difficult times
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Hey, everybody. It is Brent Daniels and I love this. I love the interaction. I love the communication. I love talking to people, obviously. I wear the shirt every day. It’s everywhere. This is the philosophy of my business. I absolutely love it. I live it, okay? One of the questions that I get all the time is, “Hey Brent, I know you’re not an attorney, but…” Okay. Listen, I’m not going to answer any attorney questions obviously, because I’m not an attorney, but let me give you an attorney act, okay? Every title company has an in-house attorney. They will talk to you because you are bringing business to the title company. Any closing attorney, if you’re in an attorney state, is going to have a conversation with you if you have specific items that you need or feel that needs to be in the contract.
Any kind of terms that you’re dealing with, whether it be with the buyer or the seller, take it to the title company. Take it to the title company, let them do their job. This is one of the most powerful people on your real estate team is the attorney for the title company, your escrow officer, and the title company or closing attorney that you work with. Okay, so go to them. Go ask all these questions because I can’t answer those. I want to answer it based on my experience, but I don’t know all of the parts. So go take it to somebody that is an actual attorney and you don’t have to spend thousands of dollars to do it, or hundreds of dollars. You can take it, ask them a question, get your questions answered, especially when it comes to the contract. So that is the attorney hack.
Next, how long does it take? This question, I get all the time. Whether it’s from frustration or whether it’s just from what can I expect. When you start getting expectations in there mixed with your actions that you’re taking, things can get a little bit weird. Seriously, they can, because now you’re expecting to get something in a day, a week, a month. Let me set expectations for you, okay? Just so that you can start this thing and if you’re going to decide to go out, be proactive, every single day have quality conversations with distressed property owners, you need a minimum of 90 days, minimum.
Some of the absolute best wholesalers that I’ve ever interviewed, that I’ve been around, that I network with didn’t do a deal for six months, okay? So really, you have to understand it is consistency for a minimum, minimum of 90 days. I’m not talking about consistency that you hire some foreign cold calling company or prospecting company to make these calls for you. No, I’m saying you do the work. I’m saying you talk to a thousand strangers. I’m saying that you put in that effort because that’s what’s going to get you to that deal faster. I say there was so much raw emotion because I really truly want you to be successful.
I really want you to truly feel how good it is to have that conversation, and with one phone call, absolutely change your financial future, okay? So 90 days minimum that you have to be consistent making the calls, six months is kind of like the cutoff. That’s when you should know what’s going on if you’re on the right path or not, okay?
Number three, working with other wholesalers or other investors in town. This is critical. No longer is it the days that we can just go direct to the seller. We need to go direct to seller and direct to other wholesalers direct to investors, okay? This is so critical because we need to collaborate. There’s no competition in this. We need to collaborate. We need to build up our buyer base. We need to build up our cash buyers so they are just so ready. I’m telling you, there is so much money in the market right now that you can find those great buyers. They’re out there every single day if you’re making the effort, but you need to partner with other wholesalers in town, especially if you’re just starting out, okay?
If you’re just starting out and you’re not quite sure the whole process, then split a deal with somebody else. Split a deal with somebody in your market. If you don’t want to, that’s fine. But you’re going to go through a lot of bumps on the road that you didn’t necessarily have to go through if you work with somebody that has a ton of experience. But going direct to… I mean, we’ve had interviews on the Wholesaling Inc Podcast of people that don’t spend any money in marketing, don’t talk to any sellers and they get only referrals from real estate agents and from other investors. It’s incredible.
You got to start building your business around both, direct to seller, direct to investor/wholesaler. It’s still quality conversations with the distressed property owner, just now they’re represented by somebody. Does that make sense? Hope that makes a lot of sense. Okay, good.
Next. Guys, there’s only six of these. We’re on number four already. Which list is the best? I get this all the time. Which list is the best? I get it. Here’s what I’ll say. You need to get at least three lists. I’m going to give you those three lists that I suggest, but at least three lists, preferably seven or eight different lists. You get a thousand address per each list and you test it out. In some markets, some of the lists like pre-foreclosure lists are going to be totally beat up. The probates, totally beat up. But if you go for vacant land, if you go for multifamily owned by individuals, if you go for your driving for dollars list, which you can put together easily at DealMachine. DealMachine is the app that gives you all the information, use the coupon code TTP to get in there and get a discount of 10 bucks a month off of that.
But here’s the list. Drive for dollars, vacant land in town and multifamily owned by individuals. Those are your three, top three. Pull a thousand from each one of those. Skip trace it, batchskiptracing.com, use the TTP code again. Get the phone numbers for them and test those out. Now, as you’re building your business and as you’re making a lot of calls, remember, you’re going to talk to about… You can go through about 50 addresses an hour. So, and I only want you to go through the list, your list two or three times so do the math there, okay? If it’s 50 an hour, how many addresses do you need based on how much you’re going to commit, how much time you’re going to be able to commit to making those calls, okay? Got it. Good.
So the best list is break it down. You have to test it in your market. I can’t tell you, sitting in Phoenix, Arizona, it’s going to be different in Phoenix than it is in San Diego, than it is in San Antonio, than it is in Chicago, than it is in Omaha, Nebraska, okay? It’s going to be different. So you got to test it out. We are rolling.
Pricing property. This is huge and this is the second to last one. I hope you’re getting a lot of value out of this because I’m being raw and being real. I want to bring this to you because it’s the questions that keep coming up, keep coming up and I’m sure they’re going to, and I love it and I love you guys. You guys have the best. So bring it. But I just want you to have the information and the instruction so that you can go out there and take action and not be afraid to take action, and you’re also being patient, but really, really, really proactive, okay? Patience doesn’t mean that you just sit back like the secret and hope that things happen in your life. No. You’re going to take serious action, okay?
Anyway, pricing property. Put it under contract. Put it under contract, get it out to your buyers. Remember, everybody wants to be educated on pricing properties. Yes, reach out to a local real estate agent that you’re friends with or an appraiser or another wholesaler or investor to help you out with the pricing so you feel confident. I remember when I was starting out, I had no idea. I was so nervous. I was so incredibly nervous to put a property out because I thought that people would think that I was an idiot or they would laugh at me, or worse, I’d be putting it out at way too low of a price and they’d make so much more money on top of it and I’d be leaving a ton of money on the table.
Listen, it did. It happened. So the first year it happened. I left a quarter million dollars on the table the first year, for real. That’s real. But now, I know. Now, I’ve trained my disposition manager. Now, I’ve trained my acquisition managers. Now, we know what to look for in what areas, because of the experience. Your results equal your education. Your results equal your education, okay? So get it under contract. Put it out to your buyers and see what they say. See what they say.
Now, I’m not saying go at what Zillow says it is or what it’s worth or what it’ll be or more than what it’s worth, but if it’s something that seems like it’s a reasonable price compared to some of the comparables around the area, don’t overthink it. Put it under contract, get it out to your buyers. See what they say. That’s going to be the best way for you to learn about the values. Also again, you can go back to another wholesaler in town that knows what the heck they’re doing, okay?
Last one, motivation. Mindset during tough times, during rejection, during these 90 days where nothing happens, these five months where nothing happens. The people that pushed through this win and they win big time. It sometimes takes time for law of cause and effect to catch up with your life, okay? If you’re putting that cause in, which is talking to people every single day, the end result, the end effect is going to be that you are going to be successful. You’re going to be successful. But you got to keep putting it in. You got to keep this mindset strong. You got to read really good books. You got to listen to really good podcasts.
But let me tell you this. I remember one day, it was a Friday afternoon, I was done. I had been on the dialer for two and a half hours. I had talked to over 40 people. I was done. I was tapped out. It was Friday. It was fall time. The weather outside was beautiful here in Phoenix. But I just stuck it out. I just said, “I have to get my three hours. I have to get my three hours.” I gritted my teeth. I hated it. The very next call, I talked to a seller named Tommy, okay? Tommy was ready to sell his property that day. Actually, Tommy had an investor that came over the day before, dropped off a contract for him to sign for $55,000.
I asked him if he would sell it to me for 60,000 if I came over right now and he said yes. One call. I sold that for $112,000, $112,000. I put it under a contract for 60. Just because I didn’t give up, just because I was… I had to do something. My back was against the wall. There was no other way there. I was not going to get a job. I was not going to throw this all away. This is my dream. This is my passion. This is what I was built for. This is that pilot, like that fire inside my head to do it. Do you feel that way? Honestly, do you have that? Do you feel that way? If you do, you can push through. You can get there all the way through and be successful in this business.
I’m telling you, you have got this. You’re one call away from absolutely changing your life. But if you keep bringing yourself down, if you keep saying, “It’s not going to work for me.” If you keep saying, “The market’s too tough right now.” If you keep saying, “There’s so many different other businesses that I can be doing,” then this isn’t right for you. But if you’re going after this, if you’ve got that passion in your belly, that you know you’re going to be an incredible real estate entrepreneur, you’ve got this. Keep going. You’re just one call away.
You guys are the best. I hope this answered a lot of questions that you guys had. A lot of fire today because I’m passionate. I love you guys. You guys are the absolute best. If you’re ready to take your business to the next level, go to wholesalinginc.com/ttp. Check it out, wholesalinginc.com/ttp. Check out that whole page. It’s going to tell you exactly what the TTP program, the TTP family is all about. Go check out the hundreds of testimonials. I hope to work with you personally. Until next time guys. You’re the best. Love you. See you.