Posted on: November 18, 2021
WI 822 | Closing Phone Deals

 

Phone calls are your key to moving your business forward, whether it’s attracting new clients or following up with current clients. In this episode, Johnny Jedrey joins our host, Brent Daniels, to teach you how to get on the phone and make calls that get RESULTS!

So if you want to make a certain amount of income, this podcast will show you what you need to do to hit that financial goal.

How To Master Closing Deals On The Phone: The 20:1 Formula With Johnny Jedrey

Episode Transcription

This will be an interesting show because we’re going to do a goal breakdown with a fantastic brand new wholesaler out of Missouri. He is closing his first deal, so we will talk about that. If you want to make a certain income, I’m going to show you exactly what you need to do to hit that financial goal. We’re going to do the exercise here on the show so that everybody can check it out.

It is my pleasure to bring on Johnny Jedrey. How are you?

I’m so good.

You are from Bland, Missouri, but you do business virtually. You do business in Springfield, but your deal was in Arkansas. You did something interesting. Not only you’re a TTP family guy and have TTP coaching, but you also branch out and do something unique, old school that works in the smaller market, not the bigger ones. You put out Craigslist stats.

I have a small background in copy.

Explain what copy is. What does that mean?

It’s an ad copy. It’s the words that you’re putting down in an ad. I was trying to find different mediums to do that. I messed with Facebook Ads. That was before TTP, and it’s expensive. We went, “Craigslist is free.” We post Craigslist ads with basic copy like, “Do you have a property costing you money? Maybe you inherited it, or you’re a tired landlord. Either way, we can sell it quickly, give you all cash, and no hassles.” We try and post those regularly in the smaller markets. We find that whenever people are responding to a Craigslist ad, that’s not the first thing they have tried. They’re a bit distressed already. This will be the second deal we’ve done off Craigslist ads.

Are the Craigslist ads short and to the point?

It’s very short and to the point.

How many sentences?

There are 3 or 4 sentences.

Is spelling important?

I want to look like a normal person, not super crazy. It doesn’t have to be perfectly correct in terms of grammar and spelling.

To find that deal of a lifetime, you got to talk to 199 people that will never do business with you, but one of them will.

Most people in text messaging are crazy. The spelling is off, shortened, and there are emojis or all these other things. Some of that is somewhat effective, but if you’re negotiating, it’s not best to not spell things correctly and shorten them up. In Craigslist, you’re going into these smaller markets where the price points are lower. Do you feel it’s a better way to communicate with people that own these properties because they’re like, “This doesn’t seem it’s somebody that is going to come in and not communicate with me? They’re going to keep me at arm’s length and be a robot. This person seems real?”

We are marketing the places that have 100,000 people, so it is smaller. I don’t use emojis or anything like that. In terms of the spelling, I don’t necessarily use commas everywhere you’re supposed to. I don’t capitalize everything the way it’s supposed to be capitalized, but there are no typos or spelling errors. The ad image is a picture of my dad and me smiling. We’re in Brown Cow Properties. It’s named after my dog. It’s the name of our company. We’re smiling, trying to look personable and normal. We try to reflect in the ad copy that we’re not some corporate and square. We’re normal people.

That’s in a couple of sentences that you’ve put out there?

It’s like, “Do you have property costing you money? We’re a small family-owned business. We’ll give you a cash offer fast.”

Do you put your phone number? What do you do?

We put phone number and email. You may text, call, or email me. Get ahold of me.

Is it your phone number?

It is a Google Voice phone number. In that way, if my Google voice goes off, it’s from a Craigslist ad.

How many people are responding or going through the phone number versus your email?

It was one email, and that was the first deal. This one was a call. Pick me up and call me. We’ve had a few people respond through text, and those didn’t end up becoming anything. They were responding to the ad, but not in our wheelhouse. They were tenants wanting us to buy the property so they could stay.

How many Craigslist ads are you putting out there?

We’re trying to put out five a day. That’s the limit for one account. Now, they’re all being flagged, and I have to see why they’re being flagged. Sometimes, the rules change, and you have to change where you’re posting them or how you’re wording them. We try and post five a day. I post one in St. Louis, Springfield, Kansas City, and sometimes in Ozarks. It’s a smaller area, but it is with people with money who own houses. Sometimes, we’ll post one in a surrounding city. One time, we had posted in Little Rock, and that’s what got us to Fort Smith.

How long does it take you on a daily basis to post Craigslist ads?

It is about six minutes. I have the copy there, so I just copy and paste. It’s very quick, and my girlfriend does it.

What did you make on your first deal?

WI 822 | Closing Phone Deals

Closing Phone Deals: You need to look personable and normal. That should also be reflected in the ad copy – short and straight to the point.

 

I made $10,000 on the very first deal. If that deal came now, we could have made $50,000 or $60,000. We got under contract for $25,000, and it needed $40,000 tops. The dude who did it probably did it for $30,000. The ARV is $180,000. It was our first deal. We had a deer in the headlights. We didn’t even hardly know what a title company was. We were like, “We want $10,000. That’s it. We don’t even know if we’ll get it.” Once we posted it on the Facebook Marketplace, we had a buyer like, “I’ll buy it, sight unseen. Five minutes.” We were like, “This is going to be easy.”

Where was that first deal?

It was in a small town outside of Columbia called Fulton, Missouri. It has 15,000 people, but it’s a higher-end area. It was in an area where houses worth $800,000. It was in a nice neighborhood, and it was the only home that wasn’t nice. The woman living there had gotten sick and had passed away in the house. I had been in the place for some time after she had passed away.

There were squatters doing drugs in the house. It was beaten up. There were some rooms you could not walk in because there would be trash six feet high. We were disgusted when we got that because we were brand new. We were like, “Can this even be saved?” We didn’t realize that we needed a demo, a new floor, and some paint.

It’s amazing what happens when you get 5 or 6 guys in there to tear everything out of a house. All of a sudden, you’re like, “Maybe something can happen.” Things start going up, and then the house is renovated.

The owner had a few other people out there. All of them were like, “There’s nothing here.” We’re out there, fresh face, never done a deal, and the first appointment ever. We’re like, “We’ll see if we can do something.” Everything happened perfectly and fell into place. That was the first $10,000. This one is in Arkansas.

Is this the one you’re closing?

Yes. That will be $18,000 to $19,000. They’ll close in a few days.

They reached out in Arkansas. What happened there? Did they call you?

They called me. I was at dinner with my family, so I let it go to voicemail. I checked out the voicemail, and I was like, “Let me give this guy a callback.” I stepped back and talked to him for fifteen minutes. He was a great and kind guy. He has been a landlord for a long time, and he doesn’t want to be a landlord anymore. I was like, “Send me the address. I’ll look at the numbers and see what I can do.” It’s an area that I knew nothing about.

You’re in Missouri, and this is in Arkansas. How do you get pictures of it, find buyers for it, and do all this to make $18,000?

I asked him if there was any way the tenants could take pictures. The tenants were 92 and 72. He was like, “I don’t know if I want to ask them to, but let me ask the management company to take pictures.” The management company went and took awesome pictures of the place. I was able to see that it needed light work. I can’t remember all of them. It was in the middle, low area.

It’s the fix-up matrix. If anybody’s interested in that, you can get that at TTPInsider.com. Based on the square footage of the houses, there are three main types. One is very easy. It just needs to be cleaned up. The second one needs work, and then the third one is bad.

There were some holes in the wall and some water damage. The floors in the bathroom were peeling up. Everything was outdated. The roof needed patching. I was like, “It needs work.” The house is 900 square feet. It was very cheap. It was $20,000.

You went in and saw the pictures. You figured $25,000. How much did he want for it initially?

Turnkey is the way to go. Not only is it easier to find a buyer but you also get more if you package it properly.

He wanted $35,000.

What price did he agree to?

He agreed to $10,000. He didn’t like the price at first. He bucked at it, so I broke it down for him why I was offering that. I was like, “It’s going to need this much work. I’m taking a risk here because this isn’t this hotbed of action. Once we get in there, maybe it needs more work than I think. I’m five and a half hours away. I’m doing this without being there.” He’s like, “That makes sense. If you can give me $10,000 and cover the closing costs, we’ll do it.” I was like, “Absolutely.” I tried to sell it for a while at $20,000. I reached out to the administrators of the REIAs in the area. I reached out to realtors.

If anybody’s unfamiliar, REIA is Real Estate Investment Association. It’s a group that gets together and supports each other. Usually, the managers of those REIAs have good networks. They are investors themselves, looking and understanding deals. You’re reaching out to them at $20,000, which you make at $10,000.

I called multiple times. I was like, “I have this deal.” He was like, “Here’s my personal email. Send it to me.” I was like, “We’re good. We’re in a personal email. We’re in.” It had been 2 or 3 days. I called him again. I’m like, “Have you had time to check it out?” He’s like, “I have been teaching and doing this and that.” I’m like, “All right.” A few more days went by, I texted him, and there was nothing. This time, I had also reached out to some realtors like, “Do you have anyone who buys house as cash? I have a deal here.” They also had nothing.

I reached out to a few different companies that said they bought houses as cash that I found on LinkedIn, and again, nothing. They all ghosted me. I’m like, “If I’m being ghosted, I did something wrong with the numbers.” I ran the numbers up, down, and sideways. Every time, I was like, “This is a deal.” I found someone on Facebook that was like, “If you guys need help disposing deals, it was a bunch of different states.” Arkansas was on there. I was like, “I have this deal.”

How did you find this person? Was it in a group?

It was completely random. It was some big Facebook wholesaling group I’m a part of. It was one of the larger ones. He’s like, “If you need help disposing deals, let me know.” Arkansas is on there. I was like, “Do you have buyers in Fort Smith, Arkansas?’ He’s like, “I know some people. I was like, “All right.” He sent it over. It’s a 50/50 JV split. I was expecting he would come back and be like, “We have someone at $17,000.” I was like, “I wanted to get this deal done because the guy wanted out from under it. We had talked, and he’s a good guy.” He came back. He’s like, “We have 3 or 4 interested parties at $42,000 and $39,000.” I was like, “What?” It dawned on me that he’s not packaging this as a flip. He’s been doing this quite a bit longer than me. He has an entire network of buyers.

I want to tell readers that if you’ve got a property under $75,000 and you need to find a buyer for it, it’s called turnkey rental companies. Google them in your area. Find whoever works there and work with their acquisition team because they pay the most for those properties. They fix up and put a tenant in those properties, and they sell it for a profit of $10,000 to $15,000 more to a cash buyer-investor from anybody in the world that wants to invest in these turnkey rentals.

It’s called turnkey because they have already been renovated and got the tenants in there. It’s already getting cashflow, and then they plug in some other investors’ capital into that to get the cashflow so as buyers. If you are looking in those areas under $75,000 or even $100,000 in the okay area but a smaller area where there’s not a tremendous amount of buyers, turnkey is the way to go.

It’s 80,000 people, and I didn’t know anybody so I couldn’t find anybody. I was also packaging it wrong. It dawned on me after which it’s not only easier to find a buyer, but you also get more if you package it properly. I have so much to learn on the whole dispo side of it.

You’re young, doing this thing out there, working it, being proactive, making calls, doing Craigslist, and building your pipeline leads. You’ve got an incredible business ahead of you. You were running with this. Let’s do this and break this down. This is the extra sauce that everybody who is serious about wholesaling should go through. I’m going to go through this from the perspective of being proactive, picking up the phone, talking to people, and calling on distressed property owners. You see an ugly house or pull a distress list. You get it skipped traced, call them, and ask them if they would consider an offer. There’s a certain threshold that we can do ourselves. We have to start hiring people, and that takes time. Over the next twelve months, what is your goal for income?

I would like to get to $20,000 a month.

That is $240,000 in a year. This is the way to break this thing down. It takes 20 hours for you to get a deal, and in your 20 hours of calling, you start going and getting deals, and then you go, “I don’t want to call anymore. I want to hire a VA in the Philippines, Egypt, Mexico, South America, or anywhere. I want to hire a virtual system for $5, $6, or $10 an hour.” When that happens, it takes them 80 hours versus your 20 hours. This 2022, you’re going to dedicate yourself to making the calls yourself. You’re going to stay in the saddle and keep the money.

With 80 hours, they have to call 4 times as many people and pay for 4 times as many hours. You got to pay instead of you going in and making the calls. Twenty hours equals one deal, and that’s about 200 contacts versus 800 contacts you would have to have if you have a VA. If you are reading this, write it down. Use this equation to help put together your game plan for the year. You can break it down to daily, and that’s what we’re going to do here.

WI 822 | Closing Phone Deals

Closing Phone Deals: Working 10 hours a week is enough to hit your income goal, but you need the right contacts.

 

For 20 hours and 1 deal, there are two sections here. There’s the $10,000 section and $20,000 section. The $10,000 section is for markets under 500,000 in population. Typically, the deals there are on average about $10,000. If it’s over 500,000, it will be $20,000 you should be getting per deal. You’re going after these smaller markets under that 500,000, so you need 24 deals times $10,000, and it gets that $240,000. How many hours is that? 24 deals times 20 hours is 480 hours total of you calling. Do you think you can do 480 hours of calling in a year?

I think so.

Let’s say that you’re working Monday through Friday. You’re working 5 days for 52 weeks. Let’s say that you take a month off and get 48 weeks. This is realistic. You’re going 48 weeks of work. For 48 hours, you’ve got 10 hours a week of hitting the goal. There are some little facts I want to point out here. Number one is you need to have enough contacts during these ten hours. To get the contacts, you have to have good data. If you’re skip tracing, make sure that you’re using Batch Skip Tracing.

Some people try to do it with different companies, and you get 20% to 30% fewer results, so make sure that you get good data. Number two is you got to use a dialer. We use Batch Dialer. This is not an ad for Batch, but they have produced this so that people can hit these numbers. Batch Dialer helps you talk to that many people in these hours. From there, do a fanatical lead follow-up. You get that one deal for twenty hours by making sure that nothing slips through the cracks.

You have 10 hours a week for 48 weeks. You look at it and go, “Let me look at the whole calendar for the next 12 months. Which four weeks am I going to take off? I’m going to get those out of the way.” It’s going to make your girlfriend, family, and your life happy. You’re going to coordinate and be with them. It gives you a little breather and a little reset.

You set that in your calendar, and then you go, “This week, where am I going to find my ten hours?” I’m going to do it from 9:00 to 11:00 every single morning and get it done. You hit it, and you go, “It’s 9:00 to 11:00.” This is the secret sauce. You need to make sure when it’s 9:00 that you’re not messing with the lists, dialer, lead follow-up, not answering emails, and texting. You press that dialer, and you are off like a rocket.

For those two hours, you get energized, stand up, and have good enthusiasm. This is money and hunting time because the beautiful thing is that deal of a lifetime that comes around once a week is how you find it. You got to talk to 199 people that will never do business with you, but one of them will. That’s the tough filter. Can I be rejected? 180 of those will flat out reject you, and 20 of those will say, “Maybe I want an offer.” Nineteen of those are going to be way too high, not realistic, or changed their minds, and one you will close. That is the equation.

We’re adding this numbers analyzer to the coaching program. We’re beta testing it, and it’s going to be phenomenal. You could plug this in once, and it will tell you what to do, how to do it and keep you on track. It’s an accountability tracker as well that we built out. I’m super excited about it. I have been talking about it for years. Can you do ten hours a week?

It’s doable. I’m doing two hours a day.

If you make $240,000 in a year in Bland, Missouri, you will be the richest person there. It goes a lot further than $240,000 in San Diego. That’s the breakdown for you specifically. For everybody else, you can certainly do this breakdown, this analyzer. That’s the breakdown of how you get to $240,000. It is going to keep you accountable. You have $28,000 on your first two deals. Craigslist ads have the path to get to $240,000. Thanks for being on here.

Thank you so much.

How do people get ahold of you? If people are in the area and want to squad up, or maybe they’re in some of these areas where you’re going to be working, what’s the best way? Do you have an email or an Instagram?

My email is Johnny@BrownCowProperties.com.

For everybody interested in joining the most proactive group in real estate investing, like Johnny here, it is the TTP family. It is the TTP Coaching Program. Go to WholesalingInc.com/TTP. Check out what it’s all about and the testimonials. Everything you get inside of the coaching is incredible. If it feels good in your gut, make sure that you sign up for a call, and I look forward to working with you. That’s it, Johnny. Great job. You crushed it.

Thank you, Brent.

For everybody out there, as always, I sign out by encouraging you to talk to people. Until next time, I love you, guys. See you.

 

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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!

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