Posted on: May 13, 2021
WI 687 | Wholesaling Business

 

Tune in to today’s episode as DFW real estate investor Josh Broach asks Brent Bowers some special questions. Learn how to develop your real estate wholesaling business with expert insights from Mr. TTP himself. Get the answers to questions like: what kind of scoreboards do leaders need to keep track of? What is the job of the sales team and what is yours? Or even something as simple as: how do you reach your income goals? Find out all the answers in today’s episode, plus some inside knowledge into Brent’s daily routine. Keep those ears glued so that you can keep the business growing as a leader.

The 5 Most Important Things You Should Do Every Day in Your Wholesaling Business

This episode is something new as Brent welcomes guests to join the TTP Monday team meetings. Josh Broach and his sales team are the first to experience this and got the opportunity to ask questions on real estate wholesaling to get clear and realistic answers from Mr. TTP himself.

Episode Transcription

I am excited about this episode because, for the first time, this is going to be different. Part of the TTP Mentorship Program is that anybody in the program gets the opportunity to come into Phoenix, meet with my team and have a team meeting. We do it every Friday and it is a blast. It’s my pleasure to bring Josh Broach here from DFW, Dallas-Fort Worth. He is doing incredible business already but he has got some questions. I thought that it would be interesting to be able to, instead of him and I sitting in my office going over these questions, just do it on the show and let everybody know what this is like.

Maybe a lot of these questions that you have are what people are going through. Josh, you’ve been doing business and flipping. You’re transitioning to wholesale. You brought two acquisition managers and an office manager, your admin here, to sit with my team. You went through the team meeting. We had a great time. Now, let’s get to the nitty-gritty. Let everybody know how long you’ve been doing it and where your business is at now.

I have my real estate license for 5 or 6 years. I’ve done everything from listing houses, selling houses and working with buyers. Flipping houses and wholesaling is what I’m doing. Out of everything I’ve done, I liked the most flipping and wholesaling houses primarily because I don’t have to hold anybody’s hand, wait for somebody to get qualified and baby a seller a little bit. No disrespect to anybody that loves and enjoys that. It’s your passion. At the end of the day, you should love and enjoy what you do every day. I like going out, finding deals and flipping them. I know my market has tons of investors looking for deals and they’re foaming at the mouth. If you got one, they’re going to buy it quickly.

You brought your sales team in. You’ve got two of them, acquisition managers. Each of them told me that they’re getting twelve leads a day.

We’re bringing in anywhere from 17 to 24 a day. I have my marketing team, which is the backend team. They’re doing all the hard work. Without them, we’re not making any money. They’re the ones that are bringing the leads in. They’re calling people, texting people and taking in inbound calls from different things. They’re the ones that bring the leads in, we pass them out and then my sales guys get to work.

People are probably reading this and they’re wondering where do you get 17 to 24 leads a day from.

If I’m being transparent, it comes with spending money. You have to spend money on leads and the backend team. A lot of the stuff I do, I do a batch. They do a great job. It’s all-in-one. There’s a lot of great and different skip tracing companies out there. The aspect of all-in-one helps, too. I know what leads I have. If I already have those leads, I’m not paying for them as opposed to going in there to buy leads, skip-trace them and do this. It lets me know I already have this. I know it’s not being doubled.

They started out BatchSkipTracing.com, Batch Leads and all the other apps that they have. It’s phenomenal. Are you texting and calling? Are you doing any mail?

I’m doing the first two. I’m thinking about doing some mail. The reason I’m thinking about it is mainly that everybody is doing texting and calling. If you look back before texting started hyping up, people weren’t doing that. Your inbox was stuffed with mailers but now, I see a decrease in the mail. Maybe it’s an opportunity there. I’m going a little old-school, too. They’ll do the bandit signs. I don’t see a lot of people doing them now. I’m trying to be creative and not really reinvent the wheel, but I try to see what people aren’t doing still and then what people are doing. I do some stuff on the MLS, too. I try to do a mix of everything and go to work.

You’re going after properties on the MLS. Are there certain criteria that you’re looking for? Is it just as soon as they hit the market, you send them an offer?

I don’t go as soon as they hit the market because everybody has sent them an offer at that time. They’re not too motivated. Even if they are motivated, they’re not to, “Let’s get this down at $10,000, $15,000 or $20,000. Let’s get a fee here,” at that standpoint. I look for stuff that’s 300 days old. You would go for the seasoned ones that have rust on them.

WI 687 | Wholesaling Business

Wholesaling Business: Don’t hire too fast because you think that it’s going to grow. Instead, pull more out of the people that you have.

 

They’ve been on the market for a while. Do you give them a percentage of what they have it on for like 50%, 60% or 70%? Do you look at each one comp and then send an offer?

I’ll do that second one mainly because they’ve been on it long enough. They do have some motivation and it’s not like something new that’s coming on every day. We want to quickly shoot something out. You see, “They’ve been sitting here. I do have a little bit of time to do something. It’s not going to be gone tomorrow but it could be gone tomorrow.” You do want to be active and aggressive with everything you do. I still want to be likable, too.

More questions, let’s open this thing up.

I’m trying to grow my business more. I’m trying to get to the role where I’m overseeing, developing and building a sales team. Not necessarily doing all the sales work but creating an opportunity for everybody. My questions are going to come from that as opposed to the guy who is getting started. My question is, “As a business leader in developing your business, what are the top five things that I should be doing every day business-wise?” I know we did your team meeting and that was great. I learned some stuff from that but it’s like the first things you get in the offers. What are the five most important things you do every day?

From a leadership standpoint, one, you have to remember that leadership is something that we have to work on. It’s another skill. It’s not just like, “Now that I’ve made money, I’m a great leader. Everybody is going to be great.” Number one is you have to study leadership. You got to read the books, get the audibles and listen to a podcast. There’s a great Leadership Podcast by Craig Groeschel. It is phenomenal. I would listen to that and put those leadership ideas in your head.

Number two is to understand this, everything is up to you. The extreme ownership of the success and the failure of this business is up to you. You take that extreme ownership. When you hire people, you have their financial responsibilities in your hands. With that, understand, don’t go and hire too fast because you think that it’s going to grow. I would rather you pull more out of the people that you have than get a lot of people because it looks cooler on Instagram. Everybody is going crazy in the office and trying to recreate some scenes from The Wolf of Wall Street.

That’s what people think is a successful business. It’s not. It’s getting the most out of everybody. Everybody is eating. We start out our team meetings, as we went through, going around the room and talking about gratitude. “What are you grateful for this week?” That’s an important thing to do, not just as a team-building thing but letting people have a little bit of spotlight on them to communicate and everybody is listening to them. It gives them a sense of confidence and builds up confidence. It’s having that little bit where it’s all about gratitude.

The fourth one would be, you need to have that scoreboard. You can’t hold people accountable if you can’t track their numbers and don’t understand, “What are the results of their week?” A lot of times, we think that we just go, set it and forget it. We put people into place and say, “Go get deals.” They need to be held accountable. Here’s the interesting thing. We talked about it in there. It’s not when they’re not winning. It’s when they win big time and get paid those big checks, and then all of a sudden, they disappear, going on trips, vacations and aren’t doing all their tasks. Keeping good accountability is key.

What are some of the scoreboards that we’re keeping results of?

You need to know where your leads are coming from. That’s number one. Are they coming from bandit signs, texts, calls, direct mail or internet leads? All of those things are important. From that lead, how many of those leads are quality? Quality is based on condition, timeline, motivation and price, the four pillars of pre-qualifying. What is the condition of this property? What is the timeline? What is the motivation? What is the price? That is the quality lead. If they can get two of those, typically, it’s a quality lead. A lot of times, if people say yes, they would consider an offer. It gets sent in and now your guys are fist fighting to get a hold of these people and then do more qualifying. It slows down the process if you don’t have more information from your sales guys.

That’s one thing you showed me and it’s very important. Even what we’re bringing in, there’s also potential with the numbers that come in that you could have more than you can handle to where you may not see who to focus on. Though you’re closing deals, you could still close way more deals if you knew who to focus on more with your time.

The success and the failure of your company are up to you, as the leader.

I would rather, by the time it gets to Ryan, my main Acquisition Manager. Here’s the process and you saw it. It’s we cold-call. That goes into Jackie, my Lead Manager. She makes sure that we’re getting as much quality out of those leads as possible. It goes to Chad, who is my junior acquisition manager. He warms it up until the timeline is short to where they’re ready to make a decision. My closer, Ryan, gets those deals. Everybody is like, “Ryan has got the cushiest job ever. He has got these ready-to-go qualified leads.” He still has to lock it up, beat out those 2 to 3 other offers, build a rapport and make sure that these people are going to get to the finish line. There’s a lot there but he only gets 3, 4 or 5 leads a week. If your guy has got 4 or 5 that they had to close, that was their focus, they will close those. Sometimes we throw way too many leads at our sales guys and it distracts them.

To round this thing out, the fifth thing for leadership is to understand that you have to get paid. This is one of the things that is missing in our business is we go, “I just made $20,000, $50,000. I’m going to take this $50,000 and $40,000 of it is going to go here. I’m going to do marketing and hire all these people.” You only take 75% or even $10,000 but 33% of that is taxed from personal income. You’re netting a certain amount and only taking home 75% out of that $10,000. How do you build assets? How do you buy apartments, commercial buildings and single-family residences and do all these things that you want to do if you’re not getting the most out of business? I would set a goal personally that you say, “I want to make whatever it is this year. I want to net $250,000 or $500,000. That means I need to make $20,000 or $40,000 a month.”

Start reverse engineering, “If my income is here, then my marketing, salaries, commissions or personnel costs can only be this much.” That’s going to make you always hungry. This business is going to grow because you, as the leader, are achieving your goal of making this money to be able to pay off debts and buy assets. If you’re sitting there and all of a sudden, your sales guy is making more than you in a month and you’re like, “I’m taking all the risks and running this whole thing. What is going on here?” All of a sudden, negative things start swirling in your head and you start looking at things a little bit differently. If you are setting the goal personally to make a certain amount to take home to you and your family and you’re hitting that, everything else is going to flow.

Also, what you said is good. I value leads, what we spend on them and when we get them because you’re spending money on this. You want your return. When you do what you said, the value per lead rises way higher, too.

You better believe it. You fight for every deal and you want to increase it. You’re protective of the people that you want to hire because they are running the business for you. As a business owner, you need to bring on incredible talent. You can’t just bring on people and hope and pray that they work because they’re a friend of yours that worked at some other job. You want to bring in highly talented people that know, number one, that you’re the leader and the owner of the company but two, that you bring a culture that everybody wins.

I’m not saying you take it all off the top and not pay your people. You have to pay your people. You have to make the commission structure strong so that they can make a good amount but you got to get paid. Many business owners take 5% or 10% of the profits. It’s ridiculous. Why? You can make more being a server at a nice restaurant. As an entrepreneur, you got to pay yourself. The book Profit First does a great job. The beautiful thing is they’re coming out with a Profit First for Real Estate Investors. Depending on when you read this, look for that Profit First book.

What are some major activities? I know being on the phone each day, things like that my sales guys should do daily and let you see?

It’s all hitting their tasks and making sure that the leads that they’re supposed to follow up with that day get done. Not only that but you’re dumping new leads on them. You want them to be following up with the leads that they know they have some information, but also, they have to get to those new leads right away. The number one thing is I try to take everything off of my sales guy’s plate, except for making those calls, building that relationship and going out on appointments. It’s more important to go on those appointments and get in front of people face-to-face. I know a lot of people like doing it virtually but if it’s in your market and you’ve got a fantastic market to set yourself apart in these bigger markets, you’ve got to go to the door.

I’m not just talking about when you have a scheduled appointment. I’m talking, you know this is a rough house. They want to sell but now they ghost you. Now, they’re not answering their phone and something is going on. Send them to the property. You have a deal that you locked up or you’re about to lock up but it has a tenant. The tenant and the landlord are fighting. Send somebody out there to mediate that. Go talk to the tenant, go in front of him, tell him what’s going on, explain the process and that you’re there to help.

Get in front of these people if they’re not answering their phones. You’ve got to get them out there. I don’t want my sales guys comping things, putting together the paperwork or working and communicating with the title company. That’s all stuff that’s on us. What these guys do is they make the calls, go on the appointments, close the deals and stay in touch with the sellers during the process to make sure that they show up for closing.

I had a deal like that you were talking about. The seller and the landlord were fighting. It was a crazy situation because the seller, was her mom’s house. She had passed away. She was about 80 years old, the seller. The squatter was her brothers, which had passed away, ex-wife. She had been there for seven years, paying no rent. This was 33% pa. I was like, “I’m not messing this up.” Immediately, I went over to her house and put her on contract. I was like, “First thing we’re going to do is we’re going to write her a 30-day notice before I close it.” I’m still going to close on it.

WI 687 | Wholesaling Business

Wholesaling Business: Don’t let your sales guys do the paperwork. Don’t let them communicate with the title company. Those things are all on you.

 

I sent it over a certified mail to her and then I went over to the house. Three days later, I was like, “I’m Josh. XYZ sent me over here. She wanted to make sure you got the letter. She got the receipt that you did.” She was like, “I don’t know why she’s kicking me out.” This time a third, I was like, “I know, but if you’re not out, you’re going to get evicted. This time a third, let’s make it easy. I’ll give you $1,000 if you’re out before the 30-day notice.” She was out ten days before the notice and found a new place. I gave the $1,000 to the landlord directly, though it became a 32% pa.

It’s better than zero.

I got to sell it and deliver the house vacant. Now, it’s not a problem.

I will trade that any day of the week. We give cash for keys all the time, especially in this market where a lot of the courts are slow and it’s tough to get a formal eviction and that takes time. If you have to evict somebody, you’ve got to assume that it’s going to cost you between $2,500 and $3,500 to do it. Would I rather give it to the tenant to move them out faster in a shorter timeline? Every time. You did it for $1,000. You can do it for $500, $1,000 or $2,000.

For you, what do you think it takes to reach consistently an extra seven deals a month on top of whatever you’re doing? What extra work is needed? What is it doing?

I would flip that a little bit and go, “What’s your income goal?” I think that people go, “I want to do 100 deals.” “What if 100 deals only made you a gross to a million dollars? What if it was only a $10,000 deal?” What’s the income goal that you’re trying to get to?

I want to be at $175,000 a month.

What’s your average deal size?

I didn’t have the statistics but anywhere from $17,000 to $23,000.

Let’s say it’s ten deals a month.

Some of those deals, I’m also buying myself too.

As an entrepreneur, you need to pay yourself.

Keeping or flipping?

I’m keeping and flipping them because our market is crazy.

Do you want $175,000 on top of the ones that you keep?

I want a bottom line of $175,000.

How many do you want to keep?

I want to pick up at least two a month.

We need twelve deals or you need to increase the amount you get per deal. Number one and we talked about this. You need to blow up that buyer list because you’re selling it to the same people every time. When you do that, you see what they mark it up for. If you have that list, you’re making an additional $8,000 to $10,000. What do they average when they sell it?

Anywhere from $6,000 to $12,000.

You’re taking a deal from $17,000 to $30,000. All of a sudden, you need to get 6 and 8 deals. You could do the same amount of deals but bigger deals. For everybody out there reading, you could double the amount that you get by two things. Number one is you need to anchor lower on your offers. Make sure that you’re going after good deals and trying to pull out. Don’t try to get them as deeply discounted as possible. I know that you are but even push it further than you have. Challenge yourself. Two, you got to get that buyers list. You got to increase that buyers list like crazy so that more people are going to buy it and you’ll get the most amount of it.

If you want to get to those twelve deals a month, you have to look at how many leads does it take you to get those deals. You go backward and you go, “It takes us 50 leads to get a deal. We need 600 leads in our pipeline to close these twelve deals.” If that’s the case, how do you get to those 600 leads? How do you get that quality? How many people do you need to be able to do that? If we’re looking at it and you say, “Brent, my sales guys each can take twelve new leads a day. That is 60 a week. That is 120. We’re at four weeks. That is 480. I need to get 120 more leads.” I’m doing round numbers here. I don’t know if it’s 1 deal for 50. You just do the Math.

From there, you go, “Where are we getting our leads from?” You invest more into that channel. As you’re doing that, that’s you sourcing them. As we talked about and as you have a lot of experience, you need to get referrals. You need to have people bringing you these deals to dispo but you can’t do that unless you have a big, robust, healthy and hungry buyers list. It all starts with the buyer’s list. That’s how you get to buy two properties for $175,000. You know how to get leads and deals. Let’s get more out of every deal and then pour more gasoline on the number of leads coming in at the top of the funnel and you’re there.

WI 687 | Wholesaling Business

Wholesaling Business: You could double the amount that you get by doing two things. One is you need to anchor lower on your offers and two, is to increase your buyers list.

 

It’s like almost the first one. As far as you, what is your daily schedule in the office? What do you do each day?

It depends. A lot of my day is coaching. I’ll spend about an hour a day in the real estate and wholesaling business, reaching out, making sure everything is going clean, comping some properties and looking at it. I’ve got a good flow to my schedule. My schedule is open. I wake up about 7:30, which everybody is like, “You get to sleep until 7:30?” Sometimes. I’ve got kids. I get the kids to school. I’m usually on the phone calling all the students that need some help from the texts from the morning.

I’m doing some podcasts and videos. I’m looking at any of the deals that we’ve got done, typically around noon. I exercise three days a week on Monday, Tuesday and Thursday. I work out at 12:00 or 1:00. I like working out in the middle of the day when my body is feeling it. From there, it’s on the phone. I’m making connections with a lot of top people from around the country, whether it be in the coaching side or real estate side, talking to people. I get texts, calls, DMs and all sorts of different things. We’re on the phone all day.

I know your life is different but for somebody like me, what would you say?

In the wholesaling business, when I started out, the morning was made for finding deals and the afternoon was made for doing deals. From 9:00 to 12:00, I was making my calls. From 12:00 to 12:15, I would eat lunch. You don’t need an hour for lunch. Knock it off, everybody. From 12:15 to 1:00, I would do a lead follow-up. From 1:00 to 5:00, I would go on the appointments, lock up the deals, manage the deals and do the transaction.

As I started hiring more people, it became managing and making sure that they were up-to-date with their tasks and building the cash buyer database. That’s where you’ve got the team for the sellers. Now, you need to go hunting for the buyers. You need to be building up all those relationships. It’s what I would suggest for your schedule. If you’re not necessarily doing the sales side of it, following up with the leads and going on the appointments, then you need to be building relationships with the buyers, selling those deals and building that healthy tension with them.

You said you got an acquisition team. It’s all you’ve been focusing on and the next step for you is to become dispositioned yourself, build up a team and relationship and then get that too swamped so that you can handle yourself and the business and then fill somebody over there?

Once you build it to that point where you’re at that point and you’re like, “I’m only doing five hours’ worth of work in this real estate business,” then this opens you up for those opportunities for building those big and robust rental portfolios, raising capital to do some development. More flipped deals, networking with people that are doing syndication deals with big properties or it depends on if you want to get into coaching. If you want to stay in the real estate business, then you start looking at what’s the next evolution. Here’s the deal. Wholesaling is the foundation, and then all these little houses that you can do in real estate are developed. You can be the developer, build a rental portfolio, do fix-and-flips, be the money guy and the bank. Those are the different silos that you can go to. It depends on what you want to do. What do you want to do?

I want to flip. Your goals are going to keep changing. My big goal is to get a twelve-unit apartment complex at one point, keep flipping, getting a 24 and 36-unit apartment complex, keep holding all those units like that at 12, 24 and 36, and building my rental portfolio like that.

Remember that’s a full-time job, reviewing and looking at those deals. I’m not a full-time job. It’s another business in itself. You need to be available for that business too and make sure that your ATM doesn’t run out of money. You’re constantly filling that up with making sure that your people are running and doing it. It takes a while. It’s not like you just click your fingers in six months and your team is perfect. You hired the right people. They’re going to stay with you forever. Your systems and marketing are going to work the same that they are forever and ever.

You’ve got to stay on top of all that, review all the deals, look at the leads, get in there and see, “Are we missing opportunities here? What’s slipping through the cracks?” All those things take time until you can hire somebody like Jackie. She is incredible. She has got it all, but that took two years to get her to this point. That’s her and I working together. I talked about my schedule and being free to coach all day long but one reason only is because Jackie and I have been working for hand in glove with each other to make sure that she could take over everything that I was doing.

Wholesaling is the foundation. And then all these little houses that you can do in real estate are developing development.

You gave me a lot of good stuff during this show. Before we were hanging out, the biggest thing that I’m going to take away is the meeting you all had like, “This is this. I know this where this is this.” Everything about each person and list is detailed. You can see where you’re getting deals and how many leads this call is bringing. Everything is detailed to a science.

It’s a scoreboard. Jackie’s job before this was she was a professional house sitter. She would house sit in people’s places all over the country. Luckily, she started dating one of my best friends, Jeremy, my disposition. They got married and I was able to pull her over. It took a while but once you get the right people in place, pour into them and let them have ownership of it, that would be the sixth thing on that list of leadership is to let them have the ownership of the role. Guide them, be there, encourage them, support them, love them, but let them have the ownership of the role because if they have the ownership of the role, they’re going to start making decisions without you and that’s going to take off.

Are you saying that, “Don’t micromanage and try not to do that?”

We’re starting right at our best month in business ever. It’s a $400,000 month. It’s absolutely bananas and that’s with five people. You don’t have to have a giant crew. You just need to get the most out of everybody.

I had one more question but you answered it.

This has been good. We’re going to wrap this up. I’m so glad that you’re here and you brought the team. It’s going to help them visualize and see what it looks like to build, grow and be like a family-type feel to it. I’m excited that you’re here. I’m glad that you decided to do this. I know you wanted to wait, ring the bell, do a traditional podcast and we certainly will. I thought that this was cool and you had some good questions.

I appreciate it.

Josh, thank you so much. Everybody else out there, if you’re interested in joining the most proactive group in real estate investing, it is the TTP family and TTP program. Go to WholesalingInc.com/ttp. Check out the website, what it’s about and all the testimonials. If it feels good in your gut, sign up for a call. I look forward to working with you personally. As always, I encourage you to talk to people. Until next time, I love you, guys. See you.

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About Brent Bowers

Brent Bowers, is an investor and coach with a focus on buying and selling vacant land. As an Army Officer with over 8 years of service, Brent was spending a great deal of time away from his family, and he knew he needed to make some changes in order to be more present with his wife and children. In a short period of time, Brent was able to expand his business, hire a team, and (most importantly) spend quality time with his family while still working hard and helping others. While Brent invests in many different types of real estate, his favorite investment strategy deals with buying and selling vacant land, and he enjoys sharing his expertise in this area with his coaching clients. Brent chooses to live his life based on Bob Burg’s quote, “Your influence is determined by how abundantly you place other people’s interests first.” He is passionate about helping other people find success in real estate investing, particularly in land investments.

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