Posted on: April 15, 2021

Expect the most note-worthy podcast in today’s show as our guest couple will unpack essential points for the listeners to take in.

It took 42 months for this couple from Columbus, Ohio, to go from zero to 260 real estate deals! Yes, nothing can stop Josh and Tiffany High from hitting the deals despite their challenges!

In this episode, Josh and Tiffany will share their story on how they did all that. They will walk listeners through their journey and their processes and strategies. Tiffany will also give a walkthrough in running their analytics. She will also give out tips on how to generate a lot of leads.

Grab your pen and paper and note those nuggets of wisdom from this episode. It is time to settle in.

Key Takeaways

  • How they started their real estate investing business
  • What they did to convert their first deal
  • Their system in generating leads back then
  • What happens after their first deal in 2018
  • On working with private lenders
  • Scaling their wholesaling business
  • The progression of doing real estate investing and the importance of continuous learning
  • Finding their deals on social media
  • Breaking down their biggest wholesale deal
  • Their advice to get the contract signed on the phone
  • On tracking their process calls to find their quality leads
  • The importance of running the analytics and tracking accomplishments
  • How can people interact with Josh and Tiffany
  • Their marketing channels to generate leads

RESOURCES:

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

Subscribe to Wholesaling Inc

Episode Transcription

Brent Daniels:
Welcome to the Wholesaling Inc Podcast, America’s number one podcast for new real estate investors, where we know that finding discounted properties is the most proven path to financial freedom. I am your host, Brent Daniels, Mr. TTP. And I am telling you this, if I can do it so can you. So, let’s get started. This podcast, this conversation that I’m about to have is the most noteworthy podcast so far this year. All right. So, you need to grab your pen, grab your pad of paper or a scrap of paper or whatever it is, and really settle in because listen to this, let me hook you right now. All right. 42 months, 42 months, it took this couple, this fantastic couple out of Columbus, Ohio to go from zero real estate deals to in 2019 doing 160 deals. And then in 2020 doing another 100 deals. It is my pleasure to introduce the Wholesaling Inc Podcast, Josh and Tiffany High. Say hello to everybody.

Tiffany:
Hi, everyone.

Josh:
After going from Columbus A, Brent, thanks again, man.

Tiffany:
OH.

Josh:
IO. Thanks for having us on the show. Really excited. I’m looking forward to dropping some value to everyone who’s going to be listening.

Tiffany:
You know what’s crazy. This is the first podcast that Josh and I have done together.

Brent Daniels:
That’s bananas. Well, this is going to be perfect because we’re going to get both sides of the story of how you guys started, how you guys got into this, but let’s start 42 months ago. And the reason I bring it up in months is because that’s how I remember everything when I had my young boys. When my boys were born, everything was months, and you guys have a four and a half month, year old, beautiful sailor. That’s your daughter. And you’re still running this business. So, not only can you have a family and be successful in this, but I mean, it started somewhere. It started 42 months ago. How do you guys even find real estate investing? How do you guys find this small niche in real estate investing, which is, wholesaling?

Tiffany:
Yeah. So, it all started back in May of 2017, long story short. My little brother at the time was 17. He got diagnosed with cancer and I was a corporate leader. I grew in the corporate space really fast. I mean, I was making very, very good money and actually did love my job. It wasn’t that I didn’t love my job, but my brother was in Nationwide Children’s for a year. And my parents own companies and the one thing that I was watching was that they never left his side for a year. So, they took turns and there was never one minute, 60 seconds over 365 days that my brother didn’t have a parent next to him. And about three fourths of the way through the year, I’m like, “I’m never going to be able to be that parent. I’ll never be able to leave my 9.00 to 5:00.”
I was traveling all over the country for my job and leading people. And I’m like, “Even if my kid did that today and I had a family, I would be a horrible mom.” I shouldn’t say horrible, that’s a horrible-

Brent Daniels:
I get it. I get it.

Tiffany:
But yeah, I just wouldn’t have the option I should say. And I wanted that option. So, on Good Friday of May, 2017, I woke up, I didn’t even tell him at the time, I just called my dad and said, “Guess what, I’m walking out. I’m walking to my job today and I’m quitting.” And I’m walking in the door and I’m like, “Should I be doing this? Should I be doing this?” And I just laughed. And I said, “Hey, I’m doing this.” I gave them a month notice and said, “Honestly, I might fail, but guess what if I fail, can you take me back? Because I’ve proven myself here. And I just want this opportunity to do something that I think I want to go after.” And I really didn’t know an answer. I didn’t know if I was going to be rehabbing, buying rentals, no idea. I just took the chance and leap of faith.
But it took us six months to find our first deal, we had actually joined a program at that point. And I was blowing all this money on marketing for six months. And now looking back it’s probably because I didn’t know how to talk to a seller. But it’s one thing to get leads in and it’s another to close them. And then we got our first deal, six months in and from there I was like, “Hey, now I got the confidence.” Because sometimes we are just getting ready to give up. I was just getting ready to go back to my job actually. And Josh is like, “Give me two weeks. I know we can do this.” And he was the reason why we got the first deal thing. Thank God. So, from there we made a goal and what was it? 2019. I remember, we’re like, “We can do one deal a quarter or something.”

Josh:
You’re right. Four deals and the next thing you know, we’re doing four deals.

Tiffany:
Four deals the next month. Then we’re like, “Oh wow. We’re thinking small minded. Let’s do,” I forget what our goals went from there. But we started doing subject twos because we didn’t know how to raise money. And then we joined a program, learned how to raise money and it just progressed ever since.

Josh:
One thing I actually want to do is, I want to back up to that first six months, I think in our society today, it’s the microwave society. We have so much information at our fingertips and people expect things to be done today. They expect results. They start one day, they expect results the next day. It just doesn’t happen that way. So, I think the thing with us that we figured out was one, you have to be consistent, you have to consistently be marketing. And then not only that, but you also have to perfect your craft on the back end of things. Like what Tiff said, the only reason why we got that first deal is because we figured out how to talk to sellers. So, once we were able to do that, we were controlling what we could, getting the marketing out consistently. On the back end of things, we just had to trust the process. It takes time. It’s not going to happen overnight.

Brent Daniels:
So, how did you go from not talking to any sellers, to being able to be comfortable talking to somebody, to the point where they’re going to sign a contract with you and you’re going to get that deal. Like that six months, I mean, a lot of people are going through that right now, listening and watching this. And they’re kind of like, “How do I get better at this? How to get more shots at this?” What was that six months? You guys were having leads coming in, but was the lead follow-up in the pre-qualifying? What were the things that you were really working on to convert that deal?

Josh:
Yeah. To be 100% transparent, the biggest thing was practicing our sales. That’s it. So, we did a lot of studying on NLP specifically.

Brent Daniels:
Sure.

Josh:
And so, there were three different tactics-

Brent Daniels:
What’s NLP for everybody that doesn’t know?

Josh:
Neuro Linguistics Program.

Tiffany:
I think that one thing they have to know though is so we jumped in and we didn’t really have coaching at all. And so, when I said, “Look, you have two weeks where I’m getting, I’m taking my job back.” We were in a coaching program, but we never actually utilized the calls that they gave us. We were one of those students that paid for a program and didn’t actually utilize it. So, he was like, “No, we need to use our coaching calls.” So, he called his coach every day for 10 days and practiced those NLP tactics and landed the deal on the 10th day.

Josh:
I mean, we were literally writing down five sentences a day, reading them out loud and practicing. And literally I took three of those sentences that I would write down every single day and went to that in-personal appointment. And the seller at that point was asking $50,000 we ended up blocking him up at $25,000. So, literally dropped them by half of what they’re asking was. Got our first deal, proof of concept and boom, we just took off from there.

Brent Daniels:
And that’s what we were talking about on the show. We talk about the difference between faith is fantastic. Faith is wonderful. But fact in business is so much more powerful and crossing that bridge, like you were saying, I mean, proof of concept. And that’s when, and now you’re like, “Okay, we can repeat, we can repeat, we can repeat, we can repeat.” And I think it’s really interesting that you’re saying that, “Oh wait, we have a mentor. Why don’t we talk to him?” You spend 10 days talking to them. No, because everything that we want, and I truly believe this, is in somebody else’s brain. It is. It’s already there. If somebody else already has it, we just have to ask the questions. And you put yourself in a position and ask really successful people questions when you do join a coaching or a mentorship.
I mean, I’ve had coaches since I was 22 years. Well, I’ve had coaches forever, but business coaches since I was 22 and I don’t know if I could do business without a coach. I really can’t do it. I’m not promoting here. I’m just literally that is, you tap into somebody that has way more experience. And then in 10 days, all of a sudden it makes up for that 170 days before that, that you were trying to convert this thing. So, fantastic.

Tiffany:
One thing that no one ever told me in the beginning too, is so just a quick stat of our current KPIs is that it takes… Once a lead gets into my system, which by the way, we were using notebook paper by then we didn’t have a CRM. So, once a lead comes in, they call us, say they want to sell, our stats takes 125 days on average to go into contract because we’re really good at following up on old leads. So, if you think about it back then we would get all these leads in and we would write them on a piece of paper and then I’d probably never call them again. And that was one of the biggest mistakes we ever made because the fortune is in the follow-up. So, we were only getting the deals that we just called that week. And then we pretty much lost track of them.

Brent Daniels:
So, the lowest hanging fruit you guys were getting and the lead follow. I mean, it’s all there. I mean, you’re already hunting, you’re already getting them to either call you or you’re calling them or whatever else. You’ve got this opportunity. You’ve got their information, you know that they’re interested in an offer. You just got to convert it. And it takes time. Ours is 92 days on average, from the first time that we talked to them on the phone, the very first quality conversation we have to the time we get paid 92 days. So, everybody out there listening, have patience, but also you’ve got to do your follow-up. You got to do your follow-up and you got to try to shorten the timeline on these property owners, as much as you can, because the shorter timeline that you have, the more likely you’re going to get that deal.
If they have a long timeline, there’s a lot of other opportunities, there’s a lot of other people pouring honey into their ear, telling them that they could buy the house or different strategies or whatever else. So, try to shorten the timeline, but be realistic. We’re talking 90 to 120 days. So, you go from your first deal. Now, you guys are like, “Oh boom, the rocket’s lit.” So, you get your first deal, just going into just the end of ’17, 2017, going into ’18 and then what happens?

Tiffany:
Then we became rehabbers before wholesalers. So, we rehabbed almost, it was between 36 and 40 deals that year. I know that, that sounds like a lot, but we actually made a lot of mistakes and we blew a lot of money. We paid contractors in advance and got screwed. And so, although we might’ve done well over a million dollars in revenue, it didn’t matter because we weren’t netting it. We just learned a ton of ton that year.

Brent Daniels:
Wait a second, when people make a million dollars, that’s not what your take-home?

Tiffany:
Yeah.

Brent Daniels:
That’s what all the gurus say.

Tiffany:
I know. I was like, “No.”

Brent Daniels:
5 million bucks.

Tiffany:
No, we definitely did not net that much that year, but I will say, the mistakes are what made us put more and more processes over time. And one of the biggest pieces of advice I always tell newer people is, be careful on who you do get help from. And you want to make sure that someone already had all those ups and downs because it’s a part of the game and make sure that when you guys are reaching out to whoever it is, you want to mentor you, “Hey, what are some of the biggest hardships you went through? What are some of the losses you went through?” Because I guarantee if they’ve done enough deals, they’ve lost money on something at some point.

Brent Daniels:
For sure.

Tiffany:
And if they haven’t, then they haven’t done enough deals. So, that’s one of my big pieces of advice, is make sure you’re learning from the right people and that they’re not hiding those hardships because they’re real. And there’s one that you can take from a coach or a mentor too, is like, “What’s one thing to prevent me from losing a $100,000 on a deal?

Brent Daniels:
Oh, 100%.

Tiffany:
So, yeah, we made a lot of mistakes that first year on the rehabbing side and it just wasn’t scalable.

Brent Daniels:
So, you guys were just raising money. You had some private investors that would give you the money for the down payment and the fixed up and then you guys would split the deal?

Tiffany:
We pay 12% annualized interest.

Brent Daniels:
Got it. So, just no splits, that’s fantastic for the investor. I mean, listen, obviously investors would love to get the split as well, but 12%. I mean, that’s incredible. And so, do you still work with these people? Do you still get funding?

Tiffany:
Mm-hmm (affirmative).

Brent Daniels:
Oh, wow.

Tiffany:
Yeah. We’ve had the same private lenders that are core base of private lenders since that year.

Brent Daniels:
When did you guys start wholesaling?

Tiffany:
Well, we started rehabbing first. [inaudible 00:12:58].

Josh:
So, in 2018 with those deals, we had some big mistakes that she had talked about and that forced our hand. It was, “Hey, it’s do or die. We’re either going to have to shut up shop because of the mistakes that we were making or we were going to really scale this thing out and create the revenue to make up for those mistakes.”

Brent Daniels:
Got it.

Josh:
So, at one point, we were sitting down and we’re like, “Man, we really got to get this thing going.” So, we realized that we had to do some assignments. We had to do some wholesales because of the time it takes to do a rehab. You first have to go into contract and you’ve got 30, 60 days to close on that contract. And then you got another one to two months to rehab and then you’ve got another month to close on it. That could be a six to eight month process. So, we realized really quickly that we had to start wholesaling and that’s where our model went and we scaled that model. And then-

Tiffany:
So, it was actually like, we were on our, I don’t know, call it the 40th rehab. And I was like, “This is miserable, just rehabbing.” And I was stressed out. I had happened to call a friend in the industry in Columbus and he’s like, “Why aren’t you wholesaling?” I’m like, “I understand the concept of wholesaling, but I actually didn’t know how it physically worked.”

Brent Daniels:
Sure.

Tiffany:
So, he referred me over to a wholesaling event and I went to it and I’m like, “Wait a second. You mean that I can sell a piece of paper?” I remember walking out of the event, I remember I was like, “This is the best thing that’s ever happened to me because I’m really good at sales and marketing.” And the contractor piece was what kind of held us back from scaling. And so, we walked out of that and I think in the first 30 days we did 200 and something thousand locked up in wholesales. And I was like, “This is a game changer. This is going to change our lives.” I’m really good at systems and processes. And he’s the sales guru between us or the sales manager. So, it just worked out really well. And we just took off from there. And then, you have your other set of problems. So, you scale wholesaling and then there’s a whole nother set of problems just like we ran into rehabbing that we had to go back, restart, refinish and get better and better over time.

Brent Daniels:
Listen, when I found out what wholesaling was and I had been real estate since 2004, it took me like eight years, nine years, really. 2013 was really when I figured it out, I was like, “What have I been doing? What have I been doing? This is crazy. This is the greatest business of all time.” Because one, your timelines are way shorter because just to break it down, Josh, you guys said 120 days of followup to get a deal. And then you have another 180 days of fixing it up, taking care of it, paying utilities, paying insurance, paying your contractors, getting it through. Now, listen, the profits, fantastic. You’re going to make more profit typically in most markets flipping than you will with wholesale, per deal. But you can make your wholesale money in two weeks.

Tiffany:
Correct.

Brent Daniels:
You can make your wholesale money in 10 days instead of almost a year. So, I mean, it’s wonderful, everybody out there that is thinking about… Obviously, this is Wholesaling Inc Podcast. So, we were wholesaling first, but making that evolution into fixing and flipping, just understand, it takes a longer time. It takes a longer time and fill in your cashflow needs with assigning deals with wholesaling. Right?

Tiffany:
Yeah. And we’re one of those markets… So, we’re in Columbus, Ohio, and we have friends in Cali where their assignments or wholesales can be up to six figures. You just don’t have that, in my market like the house sells for 130 grand. You know what I mean? So, we do a mixture of both now and we just pay attention to what’s it going to profit? And if it’s going to profit three times, as much as we can make on a wholesale and it fits in within our rehab criteria, we rehab it. But what if it’s going to make 25 grand as an assignment and I don’t have to do anything, why would I not take 25 grand? So, there’s different ways we look at it now. So, we do a mixture of both where last year when we saw, “Oh my gosh, wholesaling is… I can scale this thing massive.”
We kind of forgot about rehabbing. And then, what happened was on 2020, I did an audit of 2019. I went back and pulled every property we sold to the rehabbers and saw what their sale price was. And I was like, “Holy crap. We’re giving up the firm here on some of these deals. Someone in there just went in and put in $15,000 in work and probably made 40, 50 grand off us. Why aren’t we taking on those?” So, then we just got better as time went, on making sure we maximize our exit strategies. And what you should see out of the story is you can’t be everything at once in the beginning. You just got to learn how to get your first deals and you’ll grow from there and always be a student of the game. So, it doesn’t matter if I’m doing over a hundred deals, there’s someone bigger than me and I need to learn from them next. And I just think it’s important to always stay a student of just learning.

Brent Daniels:
Well, listen, the foundation of a real estate investing business, a real estate business is sourcing opportunities, finding deals. Once you can do that and you can do it yourself, you’re not buying it from other wholesalers or you’re not getting it from real estate agents that are hiking it up or whatever else and it’s a rental. If you can find your own deals, you’re in the driver’s seat, you’re going to do whatever you want. You’re going to wholesale it. You can flip it, you can hold it. You can do whatever. And that’s such an important skill to learn, initially, learn how to hunt, learn how to find opportunities, learn how to pre-qualify them, learn about the condition of the property, their timeline to sell, their motivation to sell, the price that they want. Those are the four things that you want to pre-qualify every seller with.
And then it’s all about lead followup. You start building in those disciplines, you’ve got a real business, you’ve got a real business. And then from there you can do whatever. I think that the path is learn how to find the deals first, which we call wholesaling, that’s all wholesaling is. I mean, wholesaling, yes, we assign it in that or whatever else, but it’s really just sourcing the real estate opportunity, pay off your personal debts. I firmly believe in not being a financial just stuck to paying all that interest and then start buying assets. I mean, that’s the progression of a real estate investing company, right?

Tiffany:
Yep.

Brent Daniels:
So, you guys have just been cranking, I mean, over 260 deals over the last two years and just some stats for everybody here, 62% of your guys’ business, Josh is rehab in 2020, and you make 32,000 and the other 38% is wholesale and you make 8,500. So, 32,000, 8500. This goes perfectly with your, if we can make three times on and this should be a rule that everybody follows for real, if you can make three times that you can on a wholesale on a flip, flip it.

Tiffany:
So, the other thing with that is we don’t take on full guts. So, there is another piece to that criteria is we used to take on full guts and we ran into so many unknowns. And so, if you’re newer in the game, personal advice, don’t take on full guts. I think that you really need to take your experience and make sure that you’re doing, if you jump into rehabbing that you take on cosmetic rehabs and it’s a stepping stone to really making sure you understand the permitting process and all that. Because once you get into a full gut, it’s a totally different ball game than slapping some paint up and putting granted down.

Brent Daniels:
For sure. Yeah. Well, and then getting the right contractors that are going to show up on time that they’re going to keep it in budget. With contractors, there’s that saying you get, it’s either time, quality or cost and you only get two of those. So, what do you want? Do you want it to be fast and really good quality, then it’s going to be expensive. Do you want it to be okay quality and fast, then it’s going to be cheap. So, it’s interesting to find the right people and it takes some time. It takes some time to be able to develop those relationships and get that consistency and get your crew. So, I want you to think Josh, of the biggest wholesale deal that I want to do a breakdown on. So, start getting the-

Josh:
The biggest wholesale deal or the biggest deal?

Brent Daniels:
The biggest wholesale deal.

Tiffany:
Clean one.

Brent Daniels:
Hold on, let me ask you this because you guys do a fantastic job of this. You guys are loud on social media, you are. Not like crazy, but you’re yourselves. And how important do you think that is in our community to have that courage, to be loud about what you guys are doing?

Tiffany:
I’m a big advocate. And so, the reason why I’m loud on social media by the way is because take note of this, every single one of my private lenders came from following me on social media. So, some people look at like, say, I put a deal out there and I’m like, “Hey, I purchased this at X, Y, Z. This is what my repairs, where I listed it for this profit.” I’m not posting that to brag about the deal, I’m posting that because I want to people with money to follow me. Not only do I want people’s money to follow me, every single person sitting in my office who works for me is from social media following me.
So, when you put your company out there, your culture, your success, these things aren’t to brag about it to your peers, you need to strategically be posting on social media, LinkedIn, Facebook, and putting yourselves in communities where someone’s eventually going to knock on your door and say, “Hey, how do I be a part of this?”Or, “Hey, how do I land on a deal like this? What does private lending even mean? Oh, let me teach you how to self-direct your old 401k.” And that’s how these conversations get started. So, I am loud on a purpose. You know what I mean?

Brent Daniels:
Of course.

Tiffany:
So, I always say everything you do in life, and this gets deeper as needs to be on it with intent. And I have an intention when I post these things, I encourage my community, my friends, my peers in industry, put yourself out there more because you want to start getting into the rehab game, you need private money. How do the private money lenders find you social media? How else?

Brent Daniels:
Love it. Deal.

Josh:
Wholesale deal. I got it in mind. What do you want to talk about specifically?

Brent Daniels:
How do you find it? Marketing channel? If it was from a certain list, what resources you use, but just give us the whole rundown.

Josh:
So, the one I’m thinking of particular, I believe it was a cold call. So, then they came in and actually it took us several times to reach out, follow up was key with this one. We got him on the phone, had a brief conversation with him. Wasn’t able to have that quality conversation with him, but we knew where they sat with things. And we knew it was a deal. So, consistently followed up, consistently followed up. We’ll get them on the phone, just go a little bit more through that process to have that quality conversation. Finally, we identified that we had to get in person, which majority of our deals are locked up over the phone. Unless we see that it’s something like this, it’s a hot opportunity. We got to get in front of them.

Brent Daniels:
When you say it’s locked up over the phone, does that mean you’re sending them a contract digitally?

Josh:
Yes.

Brent Daniels:
And are you staying on the phone with them to sign it? Or are you just sending it?

Josh:
We are staying on the phone to get it signed.

Brent Daniels:
So, you’re saying, no, give everybody advice here. So, you’re saying-

Tiffany:
We should definitely talk about that.

Josh:
For sure. So, we actually learned from doing it the wrong way. We would send out, let’s just say 10 agreements because someone said, “Yes, send it to me. Let’s go.” And we would send it out and it would never come back. And we were asking ourselves, “They said yes to the price. We sent out the agreement, why are they not signing? Why are they not signing?” And then finally, we’re like, “No, we got to stay on the phone and actually walk through this. If they have questions, we need to address those questions. There’s some sort of fear and anxiety that seller could have, and we need to help them overcome that.”

Brent Daniels:
I love it.

Josh:
So, just being on the phone, being that other voice of reason on the phone too, to help make them feel 100% comfortable with everything is really what gets you that signature at the end of the day, it gets the deal moving forward.

Brent Daniels:
I love it. And it’s the exact same thing that I do here in our business. And I train my acquisition managers to say, “As a professional courtesy to you, we’d like to go through the contract, go through the agreement and just make sure that all your questions are answered so that we can move forward and get you out of whatever the situation is.” But a professional courtesy, I mean, you could use that, if you feel weird about saying, “Hey, will you stay on the phone and go through this contract?” Don’t do that just kind of make it seem like this is normal. This is what most of the people that I work with, or most of the other property owners that we work with, prefer us to stay on the phone and just go through the contract. So, I think it’s huge.
And listen, it goes into the abyss. You send it to that email and they’re not on the phone with you and you’re not scheduled that you are going to go through the contract, you never know. And then you play the anxiety game. Then you play the, “They’ve seen it. I see that. They’ve seen it. It shows me right here. They’ve reviewed the document, but they haven’t signed. What’s going on here? Are they leveraging me? Are they really… Did I send it to the right person? Is this actually the owner?”

Josh:
And guess what, all of a sudden you’re 10 calls behind, that you could have already made to get to the next seller.

Brent Daniels:
Because it’s in your head. Because you’re so excited, you want to celebrate that little, you want that shot of dopamine that’s going to be like, “Yes, the contract is signed. I love it.” And you’re waiting and waiting, waiting. So, just everybody out there, listen to what Josh and Tiffany are saying here, get them on the phone, keep them on the phone, get the agreement, the paperwork signed on the phone and you will win. Right?

Josh:
Absolutely.

Brent Daniels:
By the way, this cold call that you did, do you remember what list it was from?

Josh:
I do not remember.

Brent Daniels:
Okay. Do you remember what his motivation was?

Josh:
So, the motivation was a divorce. Maybe that was what it was from. So, this couple was going through a divorce. And so, again, we realized that we had to get in front of these people. They’re a little bit older, not as technology friendly. So, we went out there. We actually had several meetings in person. There was a whole bunch of things we had to get very creative with helping them logistically moving furniture from point A to point B, helping them find a place, even getting creative on the back end because they needed funds before they could buy another place. So, literally every trick in the industry we had to come up with and provide that as a solution for this deal in particular. But this is actually a deal that we looked at. And in the beginning of 2020, we looked back and this was a big wholesale for us.
And we did an audit on that deal in particular. And we’re like, “Man, imagine if we to rehab this, it was a very easy rehab, the only cosmetic rehab.” And the person that we sold it to, we’re real big into, look, I don’t know, if I make money, you make money. Great. I want to count your pockets.

Brent Daniels:
Leave meat on the bone.

Josh:
Right. It’s a win for everyone, that’s great. But this was a huge eye-opener for us, that man, we need to start doing these light cosmetic renovations because that could have been a six figure deal for us.

Tiffany:
[inaudible 00:27:07] deal.

Josh:
So, we made 47,000 on the assignment, but the rehab were made 75 plus based on what we saw that he had done and everything like that.

Tiffany:
And he renovated it in like two weeks. So, I mean, this was a big mistake on our end that we didn’t rehab.

Josh:
This could have been a hundred plus thousand.

Brent Daniels:
Listen, listen, everybody out there is listening saying, “Oh, woe is you guys, you only made 47,000.” First of all, let’s ring this victory bell. Come on.

Tiffany:
Oh yeah.

Brent Daniels:
I love it. 47,000 from one phone call. From probably a divorce list. Do you guys go after the divorce list?

Tiffany:
Yap.

Brent Daniels:
Where do you guys get your divorce list from?

Tiffany:
We pull that from Tangy with Foreclosure Daily.

Brent Daniels:
Yeah, absolutely.

Tiffany:
So, we can pull it from the county. The problem with the county is that when they send you the data, they don’t know if they own a house or not. So, they are just sending everyone that went through a divorce where she filters out, who actually owns real estate.

Brent Daniels:
Awesome. Yeah, she does probates. She does foreclosure. She does divorce, Foreclosures Daily or probatesdaily.com. Phenomenal. She gives a discount to Wholesaling Inc listeners.

Tiffany:
Yeah, she’s great.

Brent Daniels:
So, TTP. Use TTP as your discount on that and you’ll get hooked up. Fantastic. Now, let’s go into, because you brought some notes here, Tiff.

Tiffany:
I did.

Brent Daniels:
And I think that this is really important. I think this is really where people are going to get just an incredible amount of value because, and I talk about it on the show here that you got to track your numbers. That’s the difference between amateurs and pros, is you got to track your numbers. If you don’t know your numbers, then how are you going to get predictable? And if you’re not predictable, then you’re just hoping things are going to work out. Predictability is what sets us up to hire people, to scale, to make really smart business decisions, to decide if we want to quit our job now or not. It comes down to tracking your numbers and figuring out how many people do you have to talk to, to earn a living, in this business. and then to go and go and build a business and be like a true entrepreneur.

Tiffany:
Do you want to talk about what you guys track on the acquisition side first? And then I’ll say why this is important.

Josh:
Yeah. Yeah. So, one thing that we track on a daily basis is I want to know how many quality conversations we have.

Brent Daniels:
Love it.

Josh:
And when I say quality conversation, I’m talking in our script, how many people are we taking all the way through the script?

Brent Daniels:
Love it.

Josh:
And then from there, how many of those people-

Tiffany:
So, we call that a process.

Josh:
Correct.

Brent Daniels:
Yep. Process.

Josh:
That’s a process. We want to know how many processes we have on a daily basis. And then from those processes, how many offers are we having on a daily basis as well? And then we know that based right now actually, our team is crushing it on offers to deal right now or just under four. So, if we make four offers, we have a deal signed.

Tiffany:
It’s crazy.

Brent Daniels:
So, this is when you say offer verbally.

Tiffany:
Mm-hmm (affirmative).

Josh:
Yes.

Brent Daniels:
But they’re pre-qualifying them before they’re giving a number or are they just throwing a number?

Josh:
They go through our script. That’s that quality conversation called a process call.

Tiffany:
Yeah. A lot of people ask the question, “Well, why aren’t you giving an offer to every process you do?” And there’s a bunch of reasons because they might not be qualified or they might need to be referred to an agent. So, what we see is about one of every two processes we make an offer.

Brent Daniels:
Right. We call it leads and quality leads. Quality leads of the people that we know, the condition, the timeline to sell their motivation and their price. We’ve pre-qualify them. So, what you’re saying is a process lead is somebody that you pre-qualify.

Josh:
Absolutely, yes.

Brent Daniels:
Awesome.

Tiffany:
So, he just told you, let’s just assume for numbers sake that we land a contract for one out of every eight offers. So, everyone get out of their pen and paper because I’m going to shout out some numbers. And so, what happens is a lot of peers in the industry, I think the biggest thing that people run into is they’re just operating every day and they don’t really know what they’re supposed to be doing. We literally know what our team needs to be doing every hour of every day. And then the next day we go over, yesterday’s KPIs to make sure we’re staying in line with where we need to be going to get hit the revenue goal. Right?

Brent Daniels:
Yap.

Tiffany:
So, let’s just assume that you want to hit a $100,000 this month, and your average profit per deal is $12,000. So, the industry standard right now, if all you do is wholesale is we call this the success rate. So, normally the industry standard is 60% close, 40% fallout due to title issues whatever. Ours, we use 70% because we rehab so we have a little bit better success rate with closing. And then I just made an average number of you guys should be tracking this, how many leads does it take to get a contract? So, for the sake of this offer, we’re going to say our average profit per deal is $12,000, our success rate is 70%, the leads per contract is 75, which I think is a pretty good industry standard.

Brent Daniels:
It’s great.

Tiffany:
Eight offers per contract. So, then that tells me, “Okay, if you don’t know your revenue goal, guys, you won’t know what you have to do to back this down.” So, you need to get very clear with what the revenue goal is. So, let’s just say it’s a $100,000 dollars. So, if you take what the 70% success rate at the 12,000 profit, you need 8.33 deals to close. So, the 12,000 times eight, you hit you up for tier 100,000. So, then you take the 8.33 deals to close and you divide it by 0.7 because that’s the success rate. And it says you actually have to put 12 houses in contract and eight of them will close, essentially. Right?

Brent Daniels:
I love it.

Tiffany:
So, if we break that down to weeks, we take 12 contracts divided by four weeks that says, I have to get three contracts a week. If I get $12,000 times three contracts well that’s 36,000 in projected profit. Now, projected means that now 70% of the 36,000 is actually going to close. So, if I get 36,000 and projected profit, 25,000 should close on average. And so, what that says is, okay, if I got to get three contracts and I got to take 75 leads times three contracts.

Brent Daniels:
Is this quarterly?

Josh:
So, this is broken down on a monthly basis. You can do the same thing quarterly.

Brent Daniels:
You get just three-

Tiffany:
No, this is for one month.

Brent Daniels:
To get to a hundred thousand?

Tiffany:
For one month. I’m just using our average.

Brent Daniels:
To get to 100,000.

Tiffany:
For a month.

Brent Daniels:
Got it.

Josh:
If your goal is quarterly, then now all of a sudden the number should change.

Tiffany:
So, I’m just trying to keep the math simple for one month. So, if I have 75 leads a contract, I got to produce three a week on average based on what my average profit per deal is, I got to produce 225 leads a week to get down to that. So, now, I know what my marketing has to produce. So, if now you’re not surprised or understanding if you produced 180 leads this week. Well, what does that mean? If you’re not tracking this, you don’t know if you should increase, decrease, whatever. You know what I mean?

Brent Daniels:
Mm-hmm (affirmative).

Tiffany:
So, that equals 45 leads a day. So, that’s someone with these stats says, if you’re not producing 45 leads a day, then don’t be surprised if you don’t hit the contracts. So, then you take it down to eight. If you land one of eight offers. So, it’s eight offers a contract and you need three contracts. Your team needs to produce 24 offers a week. So this is why we’re big on daily huddles. Because if say we go into a Wednesday or a Thursday and we only see three offers have been made. Well, guys no wonders why we’re not performing because the stats say that my three guys evenly split out, need to be making X, Y, Z offers per week, or don’t be surprised if we don’t perform. So, when you get that granular down into your numbers, it helps you understand why you are, aren’t performing.
And you aren’t predictable, if you aren’t tracking these things. And guys, if you want to be here in 10 years, you need to become a predictable, consistent company. I don’t care, if you want to make 10 grand a month or a hundred, you still got to be tracking down to the granular. How many leads a day do I need to produce? How many offers? How many processes?

Brent Daniels:
Well, and then you add the human element. What if your acquisition manager goes on vacation, who’s covering for that? What if somebody’s sick, who’s covering for that? You know what I mean? You’ve got all these little things going on. You’ve got the analytics and then you put people into the positions to win. And when you hire somebody, listen, you have their financial responsibility is in your hands. So, you need to be the rainmaker. You need to be able to provide that 225 leads or whatever it is to be able to get to the point where you are closing three deals every single month or week or whatever it is to break it down, to get to the goals that you set. But if somebody’s just doing it, if you’re just doing it yourself, it’s easy to track. How many conversations are you having to get to a lead? How many leads are a contract? How many contracts close? And what do you make per contract that closes? Simple math.

Tiffany:
And if you’re not tracking this, what it’s going to result in is turnover? Because what’s going happen is your sales force is going to say, “Well, I’m making these offers. I don’t understand why.” And then what happens is you’ll walk in the room to like, “Well, make more offers.” “Well, how many offers?” It just eventually they see, “Okay, you’re not putting the right resources in my hand. We don’t understand your vision, what we’re supposed to be doing.” And they’re going to leave. So, it’s really big that not only to become a predictable company, but if you really want to sustain talented people, you need to be setting a clear plan in place in front of them to be able to perform against.

Josh:
Even for the person who’s doing this on their own too. I mean, people have pure anxiety just not knowing. How many more people do I need to talk to until I get a deal? They’re just like, “What am I going to get a deal? What am I going to get a deal?” If you’re not tracking these you’ll never know.

Brent Daniels:
All right.

Josh:
Right?

Brent Daniels:
Right. And when you’re starting out, you have to build up. You got to build it up. You got to build up your lead pipeline. And if you start with zero leads, it’s going to take 90 days to build up a pipeline. It’s going to take six months to get the deal closed, you know what I mean? And a lot of people, and I’ve seen some of the most successful wholesalers around the country took five to six months to get their first deal. That’s just real. You know what I mean? But it’s going through, it’s keeping that confidence. It’s keeping up and understanding that other people are doing it. We do an interview. We show people every single week of people doing this, to give an example that you can do this. So, don’t get discouraged if you’re in that first start, you’re building up your momentum, the trains kind of slowly creaking down the tracks, it’ll build up momentum. It will.
And then your first six months, $0, your next 36 months, it’s been bananas. Millions. You’ve made millions. I mean, it’s absolutely bananas. So, you guys do something cool. You guys are in Columbus, you have a few different kind of trainings that you guys do. How do people find out about that and interact? And if they’re feeling you, they’re either hearing you, they’re seeing you and they’re really feeling like they connect with you guys.

Tiffany:
I mean, we’re on Instagram, Facebook, Tiffany, and Josh High.

Brent Daniels:
And real quick because I didn’t get to it. And I think that this is important. How do you guys get so many leads? What’s your marketing channels? What does that look like?

Tiffany:
So, he knows nothing about our marketing, so I handle all that.

Brent Daniels:
Your conversion.

Tiffany:
Yeah.

Josh:
I do the sales. She does a 100%-

Brent Daniels:
Which is important. Listen, in this business, it breaks down three parts, lead generation, conversion, which is sales and exit strategy, which is flipping or wholesaling or whatever else. So, lead generation, how do you get 200 leads a week?

Tiffany:
Yep. So, we primarily do RVM, SMS, cold calling and Facebook ads.

Brent Daniels:
Love it.

Tiffany:
A lot of people ask me why I don’t do PPC. I’ve just never had a great experience. So, not that it’s not wrong or right, if it’s giving you a return, keep doing it. I’ve just personally not been good at scaling that. We used to do direct mail. We don’t do it today. No, In particular reason, we are thinking about doing a very niche list coming up, but those are our primary channels. And then we also buy off wholesalers who buy and try to buy fire damaged houses. We have other little niches that aren’t as big as the cold calling, SMS, RVM and Facebook.

Brent Daniels:
Love it. Thank you guys. Incredible, incredible. What an incredible podcast. I mean, a lot there to unpack. Definitely, if anything you didn’t catch all of it the first time through, go through it again, listen to it and watch it again. And yeah, exciting. A couple of the resources Foreclosures Daily or Probates Daily. Definitely check that out, coupon code TTP. And if you’re interested in joining the most proactive group in real estate, it is the TTP Family. The TTP program go to wholesalinginc.com/TTP, that’s wholesalinginc.com/TTP. Check it out, scroll down, check out all the testimonials, keep scrolling and scrolling and scrolling. You’re scrolling finger will get tired because of all of the testimonies, the success stories, but now seriously. Just like these guys, I’ve worked personally with you guys and I’d look forward to working with you.

Tiffany:
Thanks for having us on the show.

Brent Daniels:
So, thank you guys. It’s so incredible. Thank you guys and everybody out there. As always, I love you and encourage you to talk to people. Till next time. See you.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling