If you’re itching to get into the real estate market but are still hesitant when it comes to purchasing your first investment property, then this episode is the right fit for you!
As we close 2021 and welcome another year, we are bound to find more wholesaling opportunities and scale-out our market. Join our host Brent Daniels and his dispositions manager, Jeremy Thornburg, as they seize up the different ways that helped them to make over $40,000 profit per deal! So you, too, can step up your wholesaling career and start the year with a bang!
Year End Breakdown – Brent’s Dispo Manager Reveals How They’re Able to Profit Over $40,000 Per Deal!
This is an exciting episode because for the first time ever, I am bringing on one of my best friends. We have known each other since the year 2000, we played college football together but why is that important? He is my disposition manager for the last few years. We had our biggest year ever at over $1.7 million with 50% profitability.
That is no joke. My dad, my CFO told me that I am telling you and I have seen all the numbers is absolutely phenomenal. We are going to pick his brain, put him in the hot seat and find out how to dispo and get bigger deals. The fact is that $1.7 million is 42 and a half deals. That is a $40,000 a deal average. It is my absolute pleasure to bring one of my favorite people in the world, Jeremy Thornburg, to the show.
Thanks for having me.
This is exciting. It’s the best year ever, we just celebrated this. We had a great time. It was a huge group effort but everything comes through you. You comp every property, you build the cash buyer database, you communicate with all the cash buyers and you make sure that they are getting to title and closing out these deals. All of these things are critical for us to have the biggest year ever. The question is, what have you learned this year that you think is important moving forward in our business?
The first thing that comes to mind is we did 42 or 43 deals and if you can squeeze out that extra $2,000, $3,000 to $5,000 from every deal, that is going to equal $200,000. If I’m doing the math right, up to $200,000 difference in your business. For some, that is double what they are doing. It’s important to try to squeeze every dime you can out of every deal. That is the mindset I take. Every deal is I want to squeeze everything out of it.
How do you do that and still have good relationships with your cash buyers? There are a lot of disappointed people because you get multiple offers on every single one of our properties and somebody gets disappointed. How do you deal with that?
For most buyers, we have a short-term relationship because they find out that they can’t win me over and like, “Send me the deal first and I will be your guy,” every time. I want the highest offer every time so they realize that out in a short time. It’s like a wave. I will have ten guys that are hungry for my deals then a couple of months later they are like, “I have to pay a lot for your deals.”
I get ten new guys and it’s like a revolving door. I notice I’m not getting what I want then I will come back and knock on their door, “I got this new deal.” They will like it again. It’s like a revolving door of buyers. That is my relationship with them. I have found that if I’m dating them then they are going to give me their best offer.
That is exactly what happened to me when I was in the position to do disposition. When I was starting this business, I was giving it to 2 or 3 guys every single time. My average deal size was $12,000. Your average deal size is $40,000. We are in a big market. It’s been a big ramp-up. There has been good appreciation. Supply and demand have been in our favor, which is fantastic. We do a great job negotiating with the property owners so that we can get good prices so you have a good meaty deal to sell.
If I were to get rid of your cash buyer database, it evaporates. You lose the file. Everything’s gone. You have to start all over. How would you build your cash buyer database so that you can get back up and running and be able to sell these deals, not only quickly but sell them to the right people that are going to close with the least amount of problems?
To start off, I would first leverage other wholesalers who have big lists. You can google wholesalers, call them, act like you are going to buy a property and then just say, “Can you help sell my deals?” They have those 5,000, 10,000 plus lists already. If you are selling to your 2 or 3 buyers that you have, you are going to get way more using those wholesalers. Even if you have to share the profits, you are going to end up having more.
That is the first thing I do is squat up and network. You can use them to trade when you build up your list later on like, “I got 500. Can I trade you my 500 for your 500?” Now you are using them to trade. You bought that and build that relationship with them. At the same time, to build your own list, you got to hire VA who is combing through those Facebook groups. Go to Facebook, Google, Phoenix Fix and Flip group or Austin Fix and Flip group, wherever you are and whatever market.
You are messaging everybody in that group, “Do you want to get on my list? I have single-family and multifamily off-market deals. Do you want to get on my list?” You get their email or their phone number. Another great way is being a member of a software company like Batch, PropStream or all kinds of ones out there that have these cash buyers. They have a list of them and you skiptrace them, skiptrace those LLCs and get on the phone and try and get them on your list as well.
The big thing that we have done is we have built relationships with other successful wholesalers around the state here. We have traded lists, sent them deals and set boundaries. Oftentimes, especially when we are getting started, we go, “Other wholesalers that have a big list of cash buyers, will you sell the deal?” They are like, “Yes but we are splitting it 50/50.” We go, “No, we want to make this price. If you want to sell it for more than that, you keep whatever you sell for more than that.” That has kept our profits way higher.
When you get another wholesaler on your list, the first thing they ask is, “Can I JV? Can you get me my set fee?” They are trying to get their cut and you go, “This is how it works with me. The highest and best offer gets the deal. Work in whatever you need to on your end. If you are the highest and best offer, you are going to get the deal. I don’t do preset JV deals. We don’t need you in that capacity.”
That’s because we built a big list. If you are starting from zero then you might need that.
You might need to have that preset arrangement.
That is what I did early on. I was selling it to other big-time wholesalers in town here. I saw that they were making 2, 3, 4, 5 or 10 times sometimes what I was making on these deals because they had the cash buyers. That is when the light bulb went off. That is when I went, “This is a cash buyer game.” That is how you be successful in this business. I was having this conversation with Philip out of Austin, Texas.
It’s almost like there is a race in the business where you are racing income versus expenses. As soon as you get that big deal, that $30,000, $40,000, $5,000 or $60,000 deal, it’s like you hit the boost. You are way further ahead with your expenses. That is the rocket fuel for our business. It’s these massive deals. What was the biggest one? What was the renaissance?
It ended up being, $146,000.
It’s really important to try to squeeze every dime you can out of every deal.
That pushes us and that is a big boost from our expenses but that comes from the cash buyer database. I’m telling you, if you want to make the most and squeeze the most out of every opportunity that you come across, you learn how to negotiate well on the front side and get the seller to give us the price. We always get the biggest deals from that. Get it exposed to as many buyers as possible so that they push up the price on what you make on it.
If you don’t have enough people that want the property, it’s hard to create the frenzy. That frenzy is what drives that price up. That is one tip I want to share too is never have an asking price. Have a suggested starting price because when you have the asking price, you are getting 30 to 40 people going, “I will take the property. I’m giving you what you are asking.” That allows me to go, “That is just my suggested starting price. You are the tenth person to call that said they would take it.”
In order to break the tie, I’m asking everyone to give me their highest and best offer. You would let them know exactly what you are going to do. It’s like a dance. They want that quickie. They want the deal so you have to dance it around and you are in control. You have what they want. It’s important to have that mindset. You are in control of the whole situation. Until you say yes, they got to do what you tell them to do because you have the property.
A quick little announcement that is going to be incredible, everybody that joins the TTP Coaching Program gets to talk to Jeremy every Wednesday. He is doing live support. My whole team on Monday is Jackie talking about lead generation and all the lists and all the operations. Tuesday, it’s me. On Wednesday, it’s Jeremy. On Thursdays, Ryan and Chad are our acquisition managers. They get access to the whole team. It’s going to be absolutely game-changing. It’s going to be phenomenal. What do you do when they are mad at you? When they are like, “Never send me a deal again. You will never last in this business. You don’t know who I am.” How does that affect our business?
I say, “Good riddance,” to him. It comes down to how big your list is. Ten percent of the time when I go, “That is just my suggested starting price.” They go, “What is this, an auction? I don’t have time for this. I will never buy one of your deals.” I go, “If you are not the highest and best offer then take care. I got plenty of other guys that want it.” That is the mindset you got to have. When you have that 10-person list, 50-person or 200, you got to have that more of a relationship and you are going to have to treat it a little differently. When you have that big list, those people get mad because they are not going to be the highest and best offer. They lose out on those situations.
People are trying to negotiate by bullying. When you are new, it’s intimidating. When you are new, you don’t know it. I always thought that somebody was going to ruin my career and my business if I did not sell them a deal like I’d be blacklisted or something. That is all fantasy and fake. There are so many buyers out there for these opportunities. It’s our job to build up that database. What you are talking about having a VA to go in, scrape the list so that you can reach out to all these people, build the relationship and add them to the list is key. What do we pay for that VA hourly?
$2 an hour.
Where do you look that up?
Upwork or Fiverr. It was one of our cold callers. I found her and then I stole her from them. To piggyback on them getting mad, they always try to bully you, “I will get $5,000. I will put it in. Pioneer title? I have it in already.” “That is great but I have not said yes to you.” You are in control. You can let them bully you as much as they want.
You just have to sit back and say, “Okay but this is what we are going to do.” “I gave you what you are asking.” “You are the tenth one. This is what we are going to do. Give me your highest and best by 6:00 PM.” You always have to bring it back, listen to their bullying and say, “Great but this is what we are going to do.”
Are they bullying you by calling, texting or emailing?
I like to be on the phone. I like to TTP it. In one conversation, you can change them from a $320,000 offer to a $350,000 offer sometimes.
How do you do that? How do you change it from $320,000 to $350,000?
By being honest and keeping that healthy tension during the conversation, “Can you do $320,000?” “I would love to but I already have ten people that are asking or over. I’m asking everybody to give me their highest and best offer.” He’s like, “Will $340,000 do it?” “You are around that ballpark but I’m asking everyone to give their highest and best offer by 6:00 PM.” He was like, “Put me down for $350,000.” In one conversation, you got him up to $30,000.
The beautiful thing is we see them buy it for $350,000, put $50,000 into it and sell it for $500,000, $525,000 or $550,000. We sell good deals and still make $40,000 a deal because 1) We are good at negotiating. 2) The market is hot. 3) We never put out a deal where we don’t think somebody’s going to win. That is important.
You do a good job of making sure that it still has to have enough meat on the bones. We are going to see if somebody wants to buy this as a rental like our multifamily deals that we sell all the time. You sell these multifamilies. You are selling it to a different buyer. They are going to pay more. Rental buyers are going to pay more for these deals than a fix and flipper that needs to put significant repairs in. There’s a hierarchy. The bottom of the hierarchy is other wholesalers. They try to give you the lowest price then flippers then rental portfolio buyers and then people that want to live in the property.
You never know which buyers are going to show up. If you set that asking price, you are limiting yourself. That buyer that wants to live in the property is going to pay way more than what your numbers told you. That is why you have to have that technique of, “I sent this out way lower than I should have but I’m going to get it back to where it should have been in the first place.” You got to have that TTP. You don’t want to see that HUD settlement statement at the end and see that they assigned it for $20,000 plus.
I’m fine with $1,500 if I use a network of a great buyer or another wholesaler who had a great buyer and he has $1,500 on there or $2,000, I’m fine with that. If they are the highest and best, I can live with that. If I see $20,000, it breaks my heart. Everything I do is to try to eliminate that from happening.
Let’s switch tracks to the hot button issue, which is hedge funds, selling to hedge funds, finding hedge funds, being introduced to hedge funds, what are they buying and what percentage are they buying? We have sold two to hedge funds at maybe above retail price.
That is the new frontier because these hedge funds are pouring into certain markets. First, you have to know what they are buying. They are not buying anything with solar, the majority of the time. They are not buying condos and townhomes. They are buying three bedrooms plus. Some have certain buy amounts in your market $350,000 or less, just knowing what they are looking for.
How do you find hedge funds?
I have found them through talking to realtors, our network and talking to other wholesalers. I’m wholesaling to this hedge fund. That is where we found a few of them. Checking out these software. These cash buyers are buying the most properties. The majority of the time, they end up being a hedge fund. That hedge fund we recently sold to, had 30 closings in one day.
It’s important to have that mindset that you’re in control of the whole situation.
They are going to pop up on these things as one of the top buyers in your market. You can get that at PropStream, TTPData.com. That gives you the list of the top cash buyers. You can sort them by how many linked properties and the volume of the properties that they are buying. It’s phenomenal. Check that out to start pulling in. You got to pull on the string a little bit and get it to the point where you find the real estate agent that is representing the hedge funds, build that relationship and then sell those deals.
They are not for the big rehab projects. They want to keep it under $30,000. They only buy in certain areas and they are looking for very specific criteria. The beautiful thing is if you reverse engineer what they are looking for and you put your efforts towards these. You can offer people a lot more for their properties, knowing that you can sell it at retail or above retail prices to these hedge funds that are looking to get as many properties as they can. Hedge funds will stop on a dime. They will stop funding. They will send an email, cut it off, lose their earnest money and all of a sudden, they will be done. You don’t want to necessarily build a whole business around it but it’s a good strategy to get big deals.
It’s a great strategy when you find that property that just needs a lipstick, it’s already in rental condition or fix or flip condition already. A lot of people are asking me, “What are they going to pay?” You don’t know until they do their inspection. I want to stress that you evaluate every deal like it’s going to be a wholesale deal because if you are, “This is a tight deal. I’m going to close on it and hope that this hedge fund can combine to the price.” It’s too much of a risk. Evaluate every deal like you would normally then go and check, “What are my buyers going to pay for? What’s his hedge fund guy going to pay? What’s offered if you’re closing on it?” You can check every route and be like, “This was the highest and best.”
Let’s get tactical here. What do you use to blast out deals?
I use MailChimp, which some people have had problems.
How do you not have problems with MailChimp?
I did it back in 2019 when I started to rack up. I sent out the first blast, instantly red-flagged. They are like, “Prove to me where you got your list.” I had to show them a web form, the website and wrote out this nice email then they are like, “You are good to go.” I have had some of our students do the same thing and they still said, “You are not good to go.” There are all these other different platforms that do email blasts but I have only used MailChimp. I can only tell you about MailChimp.
Walk me through your process to dispo. We have got the deal, the pictures and the access set up. What do you fill out to send? Is it through a website?
I go to MailChimp and I have a preset template.
How did you build the template?
I took it off the old dispo guy, Billy. I tweaked it a little bit. You can have different squares where you put the picture. I keep it real short.
You can build a template in MailChimp?
Yes. I have our brand logo at the top then I have the picture of the house and then I have the box of the details. I keep it real simple. On the top, I do the suggested starting price in red then I have the address, the bedrooms, the year it was built and anything particular about it like if it has a pool or a giant lot size.
If somebody wanted to get an example of this, where would they go to join our email list? If they wanted to buy a property, how would people see what this looks like?
They can email me. I can send them a sample. You say, “I want to join your buyers’ list.” At Jeremy@OfferArizona.com. It’s real simple. I don’t put comps unless I need to sell this property. I’m trying to push this right past where it should be. I will throw the comps. If not, I’m like, “This is a great deal. I’m sending no comps.”
How do you title the subject of the email so that it catches the eye and hooks them?
I will put, “Off-Market/Wholesale,” then I will put a dash, whatever it is. Like Phoenix, this ZIP code if it’s a hot ZIP code.
Whatever hot there is. If it’s the neighborhood, the ZIP code, the city, the area, whatever is the known popular thing among investors, you need to put that in your subject line.
I will let them know what it is, fix and flip, buy and hold or multifamily. I want my buyers to know what they are opening up. I want it to catch their attention and be like, “That is exactly what I’m looking for.” I have buyers from Tucson, Phoenix, Flagstaff on this list. If they are a Tucson buyer, I don’t want to waste their time opening up a Phoenix property. That is why I let them know about all that. Going back to the comps, I don’t put the comps on there because every buyer evaluates the property differently. He might think it’s worth $400,000. If I’m telling him ARV is $380,000, I just lost $20,000 right there. He might be better at that area than I am.
The blast goes out and are people responding to you by phone? Is it text or email?
I will put my phone number on there and my personal email. I say, “Call, text or email me.” A lot of people don’t put their personal information on there but I love doing the TTP. Here’s another tip. I don’t answer the phone, texts or emails, right away. If you do, now they are in control. They think, “I saw this email. I have the advantage now because I’m the first one to call them.” I let it go marinate for 30 minutes. I have a little spreadsheet, buyer’s name, contact information, notes, offer and whatever they tell me. I put them in order of when they called, texted or emailed in every deal.
Sometimes they are not hot, knowing you only got three people. Ideally, you want a hot one. You set the price right where it’s not too high, not too low. You are getting 20 or 30 people wanting the property. I go in there, I let it marinate a little bit then I come back, I’m like, “Sorry, I missed your call. I was talking to all these buyers. My phone is being blown up.”
It can get intimidating when people try to negotiate by bullying.
I’m setting that tension like, “I’m going to have to give them my best offer here.” If answer that phone right away, they are like, “I will take it.” What are you going to do? You have to lie to them like, “I got a bunch of calls.” “You just sent this to me 30 seconds ago.” Never lie. You want to be honest all the time and stick to your word.
That is why I let it marinate and I’m like, “Sorry, my phone was getting blown up,” because it was, hopefully. “You are the 3rd or 4th person that wants to property.” They call you and when you don’t answer it, they will text you and say, “I will take it.” You got all this evidence and truth to use against them to create a frenzy. That is what I do.
I try to lift my energy and not to answer it when I’m vulnerable. One time I answered the phone, I got butt-naked out of the shower, a buyer called, I picked it up and he’s like, “I will take the property.” I’m like, “You are the third one that wants it.” He’s like, “What’s your buy-it-now-price?” I was in a vulnerable situation. He got me and I said a price. I never do that. I always say, “Give me your highest and best.” He got me with that, “What’s your buy-it-now-price?” I said $10,000 what the suggested starting price was. Once I say that, I have to stick to my word. I was like, “Never again am I answering the phone butt-naked out of the shower.”
You got to be in a positive area. You got to have lights on, be standing up, be powerful, be confident and be certain. It’s the same thing that we talk about when we talk about going on seller appointments. You need to have certainty and likeability. You can’t be a jerk to people or you are just going to build a bad reputation. It’s not going to feel good to do business with us. We don’t want that.
We want them to know, “Come correct. Come with your best stuff. If you want this deal, we are going to work with you. We are going to make this as smooth, easy, fun and exciting as possible. If you are not the highest and you are not the best then we are going to go with somebody else that is. Maybe we will get you next time.” If you go with that low energy and it’s a weird time of day or you did hot yoga and you are all exhausted. This plays into when you send out those properties and as you are negotiating it. Are you finding that in the morning is the best time to send out deals?
I like to send it out in the morning. It gives me all day to talk.
What days don’t you send out deals?
What about Saturdays?
I have never done a weekend either.
If you blast out deals Friday, Saturday or Sunday, you are going to lose so much money. It is an absolute fact. Real estate investors that are cash buyers are wild. By the time it’s Friday, they are checked out. It’s the lowest open rate and response rate. If you have the lowest open and response rate, all of a sudden, you have fewer people that are going to want the property. Fewer people means fewer profits. It does. That is the fact.
From there, you select it, you build the relationship, you get the deal sold, you follow up with them and make sure everything’s going smooth and you move on. Let’s move on to the last thing that I wanted to talk about, which is comping properties. This is a big and tough thing when we are starting as the whole fact is this a deal or not a deal? The second question we ask ourselves is how big of a deal is it? When it comes to comping, when you are looking at the comps, what are you looking for?
The first thing I look for is the cream of the crop. The one that has already been remodeled and the highest per square foot within plus or minus 200 square foot. Let’s say, we had a 1,500 square foot house. It was 3:2. I want to find the same bed and bath, plus or minus 200 per square foot and the highest sold best looking remodel.
Yes. You don’t want to compare a 2-story and 1-story.
If it’s two-story, you can’t do it with a one-story. If it’s a three-story or basement and they don’t have these, you got to make sure that it is like-for-like. The same amount of levels plus or minus 200 square feet typically and in the neighborhood first. You are looking for, what is the king sale in that neighborhood? What is the highest sale? What is that one that they just went all out on the remodel and it looks fantastic and they sold it for the highest price?
That is how I’m going to sell the property. I’m going to go like, “You see that $400,000? This is the potential.” Especially on a market, that is going up. It’s going to be that and then some. Maybe if it’s a market that is tanking a little bit, you are going to do averages because it might be worth money.
What do you mean by averages? What does that mean?
Your top three comps.
Do you add them up and divide them by three? From there, how do you know what to offer? Just so everybody knows the process, every lead that comes in is followed up with Chad. Chad is our junior acquisition manager. He then shortens the timeline. When they are ready to make a decision, plus or minus two weeks to a month, he sends it over to Ryan. Ryan closes the deal. As we are getting it closed and negotiated, he goes to you and says, “Jeremy, what’s the highest I can go on this?” How do you break this thing down?
The lead comes in, Chad will filter it out if it has all the pillars and it’s looking good. They will mention me on Podio and then I will take a look at it. I will go in there and do my comp. I send them a little lower than the max of what we can do. It’s a mental thing to see a higher number. Our maximum allowable offer is $300,000.
Ryan hates it when I tell him this, “I don’t want to give you the highest.” I think it’s a mental thing where your acquisition guy goes in there and he goes, “I can go up to $300,000.” I want them to have the mental picture of like, “I wanted this as low as possible.” Maybe $270,000 is the maximum allowable offer in their head. Even though he knows that you can do a little more, I want him to only see that number on Podio.
You got to be powerful. You got to be confident. You got to be certain.
Podio is our contact management or CRM. All of that is communicated through the system in our CRM. Ryan goes, “$270,000 is the number.” Jeremy gave him $270,000. He comes back and he goes, “Can we do $285,000? Their lowest price is $285,000.” We are like, “That works.”
He will call me from the car sometimes. He’s in an appointment, go out there and be like, “I need to go talk to my finance manager. He likes to call me.” He goes in there and he calls me, he goes, “$285,000. We already had a done deal.” That’s a good deal.
When you are looking at it because there are a lot of different calculations on what is your max allowable offer. You have got ARV, you have figured out what’s the after repaired value and then what do you do to get down to the max allowable offer?
We did our comp. Let’s say it was $300,000. We got our biggest and baddest comp at $300,000. We will times that by what our market percentage is, the investor is wanting 10% minus holding costs, closing costs and realtor commissions. I like to do 0.84% from Phoenix. It does not leave them a lot of room for the holding cost and all that. Our highest and best offer guy is not going to be a realtor and saves on costs and has cash. We are figuring out that range, the highest and best, even though with this market being 0.89%, 0.9%.
I wanted the lowest number in Ryan’s head. ARV times 0.84%, minus repairs and our assignment fee, which I started out at $25,000. In reality, this number that I’m giving them is more like a $40,000, $50,000 deal when it’s all said and done. That is what we have been getting. What you put down there is usually what you average out.
That is what our brains do though. We find what we are looking for so if that is what it is, that is what we find. That is how it works, especially with what we do because we are so proactive with our lead generation. Seventy percent of the time we are negotiating against another person but the 30% that we are not, we get a phenomenal deal. Ryan does a great job of pulling the price out of the seller. That is phenomenal.
It makes dispo so easy when your acquisitions guy just killed it.
This is important. You have done very well selling the deals and very well compensated for doing it. It’s been a phenomenal year, all the way around. Some people go, “I paid $350 for somebody to dispo their deal.” I say to them, “You are losing so much money because we have a sliding scale where if you make $0 to $15,000 on a deal, you get 5%. If you make $15,000 to $30,000, you get 7.5%. If you make over $30,000, you get 10%.”
There is an incentive for you to get the most out of every deal. Not only that, there’s an incentive for you to keep building the cash buyer database so that we can get bigger, more robust and hungry cash buyer database, which then leads to bigger deals. It’s a huge mistake if anybody out there is throwing dispo under the bus, making it seem like, “It’s easy. It’s not hard to sell these deals.” You are right. It is easy to sell these deals and make $10,000, $15,000 or $20,000. It is much harder to average $40,000 a day.
I could sell a property in five minutes, most of the time. It’s like, “Take $25,000.” It is eight hours of conversations on the phone that stretches that out to $40,000.
I’m going to ask the question that I’m going to give you some time to think about it. I want to ring this bell. Whatever deal dispo-wise is crazy, wacky or fun that’s popping out to you in 2022. If you live in Arizona or specifically in Phoenix but anywhere in Arizona and you want some help comping and getting your deals sold, Jeremy@OfferArizona.com. Reach out to him. We can help you out if you want to get bigger profits on the deals that you have. Let’s break down a deal.
Let’s break down an 80% completed, new build in Lakeside, Arizona. It was one of my favorite dispo because I had no idea where to price it. I believe I sent it out at $335,000. I started at $335,000. It was tough. I could not find a lot of comps because it’s a new build. It’s 80% completed. You only know what the repairs are going to be. It did not have a garage door and all this stuff. I was like, “I’m going to have to do a lot of work if I have this price wrong.” Sure enough, I did. It was 30 calls right away.
I was way too low. Lakeside, Arizona is a great place where everybody wants their vacation home. You are getting all kinds of buyers that want it for themselves. You have people wanting to get it for an Airbnb. They are calling and asking questions, about what it needs, if it has HVAC AC. I’m on the phone all day long. I told them, “I’m getting calls like crazy. Give me your highest and best and I will try and make a decision by like 8:00 PM tonight.” People were like, “I will take it $235,000,” then it was $340,000 and then it was $350,000.
I don’t do it every time because if you have the same buyers, they will catch wind of what you are doing. That’s what I’m saying. It’s like a wave of what buyers I’m working with. This one in particular had a lot of new buyers that I did not work with a lot. What I do is I get all their offers in and I start rejecting the bottom like, “You are $340,000,” My highest was $375,000 at this point. “Sorry, I appreciate you trying to get this deal but there were a lot higher offers.” What you do is you start rejecting these lower offers. They go, “Where do I need to be at? What do I need to be? I want this.” They had so much more room on this property.
Whatever their numbers were. This is a $150,000 deal at this point. They love this spot and they wanted it to be their vacation spot, “What do I need to be at?” I’m like, “To be honest, there was way higher.” “Is it $380,000? Do I need to be at $380,000?” “It’s in the ballpark. What’s your highest and best? I don’t like to share other people’s offers. What’s your highest and best?” “$395,000 is the best.” Now, the guy that was on top is in second. The guy that was at the bottom is now on first then I go to the next guy and reject him the same way.
I went through it all the same way. By the time the guy that used to be one top is now in fifth place. It’s the first time I’m rejecting him because he was at the top. Now, he’s back in the top and he went back and forth this way. I’m like, “I told you to give me your highest and best. What’s going on here?” I’m teasing them because I’m not trying to break my word.
I’m bringing it back to them, “You told me that was your highest and best. You are the one that is breaking your word.” You don’t want buyers to think that you are trying to get the price out of them. I’m sitting back, letting them do their own thing and letting them break their word. It ended being $405,000 or $410,000.
You started it at $335,000 and got it up to $410,000. What do we net on it?
It was a $100,000 something deal. It was a JV deal that someone brought me. We had to share and our cut was $70,000. It was a big deal even with it being a JV 50/50.
Let’s ring the bell for that. That is awesome. Thank you for being on the show. Thank you for being part of the team. Nothing is better than celebrating with the people that you love we certainly celebrated it at the company party, which is incredible. Thank you for joining us on this show. If you want to reach out to Jeremy, it’s Jeremy@OfferArizona.com. If you are interested in joining the most proactive group in real estate investing it is the TTP program. Go to WholesalingInc.com/ttp. Check it all out, check out the testimonials and check out all the people that have had success.
If it feels good in your gut, sign up for a call. 2022 coming up is going to be bananas because every single day, Monday through Thursday is going to be support calls. Not only that, you get access to my cell phone number. We work together privately and one-on-one. I look forward to working with you and that is it for this episode. As always, I sign off encouraging you to go out there and talk to people.
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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!