Mistakes are inevitable in any business venture. However, learning from those who’ve gone before you will make your real estate wholesaling journey much more manageable.
Join one of Wholesaling Inc’s coaches, Brent Daniels, as he gives answers to the six most common questions that real estate wholesalers get wrong. Get expert advice and avoid making the same mistakes by tuning in on this information-packed episode!
The 6 Biggest Mistakes Most Real Estate Wholesalers Make… And How To Avoid Them
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.
Asking Attorney Questions To A Non-Attorney
I love this, the interaction, communication and talking to people. I wear the shirt every day. It’s everywhere. This is the philosophy of my business. I love it. I live it. One of the questions that I get all the time is, “Brent, I know you’re not an attorney but…” I’m not going to answer any attorney questions because I’m not an attorney but let me give you an attorney hack. 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 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 terms that you’re dealing with, whether it be with the buyer or the seller, take it to the title company. Let them do their job.
One of the most powerful people on your real estate team is the attorney for the title company, your escrow officer or closing attorney that you work with. Go to them. Ask all these questions. I can’t answer those. I want to answer it based on my experience but I don’t know all of the parts. 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. That is the attorney hack.
Setting Unrealistic Time Expectations
Next, how long does it take? This question, I get all the time. Whether it’s from frustration or whether it’s 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 so that you can start this thing. 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. Some of the absolute best wholesalers that I’ve ever interviewed, been around, I network with, didn’t do a deal for six months.
Patience doesn’t mean that you just sit back and hope the things happen in your life.
You have to understand. It is consistency for a 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. You talk to 1,000 strangers. You put in that effort because that’s what’s going to get you to that deal faster. There was so much raw emotion because I truly want you to be successful. I want you to truly feel how good it is to have that conversation. One phone call can change your financial future. It’s 90 days minimum that you have to be consistent making the calls. Six months is the cutoff. That’s when you should know what’s going on, if you’re on the right path or not.
Only Going Directly To Sellers
Number three, working with other wholesalers or other investors in town. This is critical. No longer is it the days that we can go direct to the seller. We need to go direct to seller and direct to other wholesalers direct to investors. 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 and our cash buyers. They are so ready. I’m telling you, there is so much money in the market that you can find those great buyers. They’re out there every single day if you’re making an effort but you need to partner with other wholesalers in town, especially if you’re starting out.
If you’re starting out and you’re not quite sure with the whole process, then split a deal with somebody else 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. We’ve had interviews on the show of people that don’t spend any money in marketing, and don’t talk to any sellers. 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, which they’re represented by somebody. All of that makes a lot of sense.
Limiting Your List
There are only six of these. We’re on number four already. Which list is the best? I get this all the time. 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 preferably 7 or 8 different lists. You get 1,000 addresses per each list and you test it out. In some markets, some of the lists like pre-foreclosure lists are going to be totally beaten up. The probates, it’s beaten up but go for Vacant Land, multifamily owned by individuals, Driving for Dollars list, which you can put together easily, a 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 a month off of that. Here’s the list, Drive for Dollars, Vacant Land in town and multifamily owned by individuals. Those are your top three.
Pricing Your Property Too Low Or Too High
Pull 1,000 from each one of those. Skip traced it. BatchSkipTracing.com. Use the TTP code again. Get the phone numbers for them and test those out. As you’re building your business and as you’re making a lot of calls, remember, you can go through about 50 addresses an hour. I only want you to go through your list 2 or 3 times. Do the math there. If it’s 50 an hour, how many addresses do you need based on how much you’re going to commit? How much time are you going to be able to commit to making those calls? The best list is break it down. You have to test it in your market. I can’t tell you that sitting in Phoenix, Arizona is going to be different in Phoenix than it is in San Diego, San Antonio, Chicago or Omaha, Nebraska. It’s going to be different. You got to test it out. We’re 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 and I’m sure they’re going to. I love it and I love you. If it goes to the best, bring it but I want you to have the information and the instruction so that you can go out there, take action and not be afraid to take action. You’re also being patient but really proactive. Patience doesn’t mean that you sit back like the secret and hope the things happen in your life. No, you’re going to take serious actions.
Pricing property. 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, an appraiser or another wholesaler, investor to help you out with the pricing. You feel confident. I remember when I was starting out, I had no idea. I was so incredibly nervous to put a property out because I thought that people would think that I was an idiot, 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’ve been leaving a ton of money on the table. It did. For the first year, it happened.
I left $250,000 on the table the first year. That’s real but now I know. I’ve trained my disposition manager and my acquisition managers. We know what to look for in what areas because of the experience. Your results equal your education. Get it under contract, put it out to your buyers and see what they say. I’m not saying go at what Zillow says it is, what it’s worth, what it will 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, you can go back to another wholesaler in town that knows what the heck they’re doing.
Giving Up After A Rejection
Last one is motivation, mindset during tough times, rejection, these 90 days or 5 months when nothing happens. The people that pushed through this win and they win big time. It sometimes takes time for the law of cause and effect to catch up with your life. 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 were going to be successful. You’re going to be successful but you got to keep putting it in. Keep this mindset strong, read good books and read good shows.
Let me tell you this. I remember one day, it was a Friday afternoon where I was done. I had been on the dialer for two and a half hours. I had talked to over 40 people. I was tapped out. It was Friday. It was fall time. The weather outside was beautiful here in Phoenix but I stuck it out. I said, “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. Tommy was ready to sell his property that day. 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 away. He said, “Yes.” It’s one call. I sold that for $112,000. I put it under a contract for $60,000 because I didn’t give up. I had to do something. My back was against the wall. There was no other way. I was not going to get a job and throw this all away.
Your results equal your education.
This is my dream, my passion, what I was built for, that pilot light, that fire inside my head to do it. Do you feel that way? Honestly, do you have that? 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 got this. You’re one call away from changing your life but if you keep bringing yourself down, if you keep saying, “It’s not going to work for me. The market’s too tough. There are so many different other businesses that I can be doing,” then this isn’t right for you.
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 one call away. You are the best. I hope this answered a lot of questions that you had. It’s a lot of fire because I’m passionate. I love you because of the absolute best. If you’re ready to take your business to the next level, go to WholesalingInc.com/TTP. Check out that whole page. It’s going to tell you exactly what the TTP program and the TTP family is all about. Go check out the hundreds of testimonials. I hope to work with you personally. Until next time. You’re 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!