You may have heard the phrase that real estate is “the best deal in town.” That’s because it can be your ticket to making money, even if you’re starting. However, there are different strategies for buying and selling properties.
In today’s podcast, Brent Daniels will be sharing how to maximize your profit on each deal properly. He notes the importance of allocating a certain amount of time weekly and staying committed to it – this way, you can avoid being too overwhelmed while working on your full-time job and have more money in the bank by knowing what works best for you.
Many people are under the misconception that real estate agents make a ton of money when it comes to wholesaling. The truth is, they only earn 10% commission on what you sell them for and if their property was already worth above average or starting point before negotiation began, there would be no profit at all. Brent, an expert in this field of business, willingly shares his perspective about the 10% rule on commission. This rule is an essential aspect of business that you can significantly benefit from. In this podcast, you will learn what should happen for this rule to really kick off, maximizing your earnings from every single deal you do.
How To Earn $120k Per Year Wholesaling Real Estate PART TIME
Let’s break down $120,000 part-time. There are two ways to slice and dice them. Something that I want you to remember is that when we are sourcing or wholesaling real estate, all of it is finding opportunities and discounted properties. When you do that, you make about 10% of what that property is worth once it gets fixed up that’s baked into the way that we do our calculations and break down our deals and the way that I want you to be offering prices on certain properties. It’s about 10% that you should be earning. You’ve got two options, 6 deals at $20,000 or 12 deals at $10,000. This is going to vary from market to market and the amount of buyers that you have.
This is a great shot, but for the first twelve or so deals for most people, they’re JV-ing with somebody that’s already experienced and splitting those deals 50/50. That’s why I’m going to build this off of the 12 deals at $10,000, even though I want you going after properties that are above $200,000 when they’re fixed up.
Part Time Real Estate: If you’re going to jump into this business fulltime, make sure you have six months of operating expenses for your business and six months saved up for your life.
Let me say that again because a lot of the properties that I come from my coaching students and around this show or on live shows are properties that are under $100,000. The issue with that is if it’s under $100,000, 10% of $80,000 is much different than 10% of $20,000, of $200,000, or $300,000. I want to push you up and challenge you to go after bigger and higher-priced properties so that the 10% rule comes into effect and that you’re getting more for every single deal.
This is easy math. We all get and understand this. Let’s get to the nitty-gritty here because we’re going to deep dive into this. This is the perfect part-time schedule. Number one is, in your mind, if you are doing this part-time, this has to be your full-time priority. You have a career, a job, doing something, and have responsibilities. I want you to continue to do that so that you don’t get financially stressed out.
Make sure if you’re going to jump into this business full-time, you have six months of operating expenses for your business and saved up for your life. Whatever your overhead or monthly expenses is, I want you to have six months. I don’t want you stressed out because stress leads to anxiety, poison in mind, and inactivity. I don’t want that. I want you free-flowing and in the zone of things. You can’t do that if you’re stressed out.
The perfect part-time schedule is 20 hours. We have 168 hours in a week. We can find 20 hours to do this business. I am challenging you to find 20 hours a week. This plan is 20 hours a month. That’s 5 hours a week to be able to accomplish this. You’re getting 15 hours of lead generation. That is picking up the phone and calling people. You should be talking to 10 people in an hour. It will take you 200 people to do one deal. It takes 20 hours of calls to be able to build that up. This is an important one.
The difference between an average person and a superstar is reps and practice.
That second one is something that almost nobody does, and that is the practice and role-play. You’re practicing the cold calling script. You’re reaching out and asking them if they would consider an offer on their property. You practice the script so that you feel more comfortable with it. The difference between anybody like the average person and superstars is reps. It is practice. I don’t care if it’s working on your body, business, relationships, or whatever it is. It is having a positive, optimistic attitude and putting in the reps with energizing enthusiasm. That is it. Putting in those reps is going to set you.
Imagine if you’ve got an extra 50 hours of practice instead of doing that and practicing when you’re on the phone. I’m talking an hour a week of practice like going through different situations and any objections that are coming up when you are speaking with the property owners. Coming up and understanding when you ask somebody if they would consider an offer, and there are only six responses. Understanding that every conversation that you’re going through with the property owner, you’re trying to find out four things, the condition of the property, their timeline to sell that property, their motivation to sell that property, and the price that they want for it.
All of that is in your practice and is what you build up so that you have better skills. It’s practicing anything. I don’t care if it’s the piano, shooting basketball hoops, playing soccer, or anything. Professionally, for some reason, we don’t practice. It’s a huge difference between the people that practice and the people that don’t put in the reps.
Next is fanatical, ridiculous, unyielding, lead follow-up. You are not going to lose deals from too much follow-up. You’re going to lose deals for not following up in time. When they tell you three months, and you don’t call for three months, they already sold their property two weeks a month after they talk to you, things change in people’s lives.
On average, it takes about 30 seconds to do a follow-up because, for the most part, they don’t answer, so you leave a voicemail and text message them. That’s it. This isn’t rocket science. Most people neglect lead follow-up because they don’t want people to say no. They’ve heard no so many times that they get a yes, and they’re like, “This is going to be potential.” You dig a little bit deeper, and it’s not. It’s heartbreaking. It’s only heartbreaking if you’re not being consistent or if it’s the only lead that you have.
If you’ve got 100 leads, you don’t care if that one lead decided that they want to keep the house for another year. Leads follow-up one hour of driving for dollars. Eighty percent of new real estate wholesalers get their first deal from driving for dollars. It’s a fact. Driving for dollars, picking that up, finding the ugly properties in your community, and having a good quality conversation with that homeowner. Imagine that.
Part Time Real Estate: On average, it takes about 30 seconds to do a follow-up because for the most part they don’t answer. So you leave a voicemail and then you text message them. That’s it!
You practice in your scripts, you feel bulletproof and confident, you get one of these property owners that own the ugliest house on the block on the phone, pre-qualifying it based on the four pillars of pre-qualifying, following up with that lead, and then that converts into a deal. That is a normal progression. That is the expectation that you should have with these leads. Driving for dollars is so powerful, and then two hours of appointments. That’s what’s important, going on and getting face-to-face.
If you’re in the market, go face-to-face, two hours on appointments, and driving for dollars lead follow-up. That’s what you want to do if you’ve got extra time. For the most part, this has broken down 20 hours per deal, 200 contacts per deal, and 199 out of these 200 people will say no or not do business with you. The one will, and it will be worth 10%. Push the values. Get it up over $200,000.
Get it to that $20,000 minimum standard mark for your deals because if you have to JV it in the beginning, that’s still a nice profit if you’re 50/50 with somebody that’s local. That’s 20 hours per week, 200 contacts, 199 rejections, 1 deal, and you are off and running. It doesn’t take that many deals. What are we talking about? This is incredible.
Do you know how long this would take in a normal business if you’re doing some other side hustle? It’s not even close to a part-time to be able to fund your real estate business. Go into this business full-time and unleash onto your market with all of your schedules. That is the goal, and this is how you get to it. If you were interested in joining the most proactive group in real estate investing. It is the TTP program. Go to WholesalingInc.com/TTP. Scroll down and check out hundreds of testimonials and what the program’s about. If it feels good in your gut, sign up for a call. I look forward to working with you personally.
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!