Steven Leigh has successfully closed a number of Wholesaling deals, and his only training so far has been listening to podcasts, networking with other people in real estate, and reading some of our favorite books (like The Four Spiritual Laws of Prosperity)! Wow!
During this conversation, Cody picks his brain to learn exactly what he did so that you can have Wholesaling success, too.
The First Deal
- Steven sent his first mailing to a list of people sourced through ListSource. His list only included single-family homes that were non-owner occupied (absentee owners) where the owner had 40% or more equity in their property, and the property’s last sale date was at least 5 years ago.
- He narrowed down his list further to people in two of the hottest zip codes, and he decided that by finding which ones had the most cash buyers or cash transactions.
- Steven’s budget only allowed him to send 100 mailings, and he got his first deal from one of those 100 postcards! (That’s not typical, but it is awesome.)
- The daughter of a property owner called back saying they weren’t interested in selling that property… but they were interested in selling several other properties. The owner used to manage several rental properties with her husband, but he passed away and she was unable and uninterested in continuing to manage the properties.
- Steven spent most of the time he was communicating with the sellers building rapport, and comparatively little time negotiating the price. The time spent building rapport is HUGE. Relationships are the core of Wholesaling.
- He put one of the properties under contract for $25k. Then he found an investor who wanted to buy in that area through a networking group online and assigned the contract for $28k.
- After closing, Steven made an assignment fee of ~$3,000.
Value of Return Mail
- Steven got another deal using a strategy that everyone should do, but few people do: by responding to return mail.
- “If you’re not doing something with your return mail, you’re throwing money away and you’re wasting leads.”
- Using BeenVerified, he found the Facebook profile for the person who sent the mail, who was the daughter of the property owner. Afterwards, he built rapport.
- He ultimately made over $41,000 from that deal!
- Never Split the Difference: Negotiating As If Your Life Depended On It by Chris Voss & Tahl Raz
- Profit First: A Simple System to Transform Any Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz