Posted on: January 04, 2022
WI 855 | Wholesaling Process

 

If you’re looking for a way to get a piece of real estate action, then don’t fret because this episode has got you covered!

Becoming the millionaire real estate agent or the millionaire real estate investor of your dreams is not easy. But it’s also not impossible. Ambitious people who are determined to follow their goals can go anywhere and achieve anything! And the second part of this two-part series will seal you the deal. Brent Daniels is back at it again with his guidelines on how to make money work for you!

Check out the latest secrets in today’s episode.

Wholesaling A to Z – The 17 Steps of the Real Estate Wholesaling Process

Episode Transcription

Our job is to have as many quality conversations as possible to filter through everybody that we speak to see who are going to be the 10, 20, 50, 100 property owners who are going to do business with us.

Have you ever thought about that movie Wolf of Wall Street where he says, “Sell me this pen.” It’s his big famous thing. Every sales guy is like, “I would love the chance to do that.” Everybody’s like, “I’m nervous. What would I say and do?” What that whole story about selling me this pen is we’re deal finders. We’re not deal creators. The whole thing behind that whole exercise, that whole scene is the fact that you don’t sell something to somebody. In our world, you don’t go after people who don’t have motivation, who don’t want to sell their property. You’re not going to convince people to sell a property at the price that you want. You can only pre-qualify them, follow up with them, show them all of the benefits of working with you and have them make the decision.

We are deal finders not deal creators. If that is one thing that sticks in your head, you are going to be wildly successful. When you figure out that we are deal finders not deal creators, you’re not going to live in that place of frustration of, “Why won’t people do business with me? Why won’t these people make a decision?” Our job is to have as many quality conversations as possible to filter through everybody that we speak to see who are going to be the 10, 20, 50, 100 property owners who are going to do business with us. That is the essence.

Recap On The Past Steps

Stop trying to convince people. Go out there with your personality and with your heart of a servant, to go out there and solve the problems of distressed property owners in your community, in your marketplace, in your city, in your town or wherever. That is what’s important. This is part two of a two-part series. The first part was going over the first 7, 8 steps. I screwed up on the first one and I’ll show you where I did. I did want to let you know that all seventeen steps here that I’m going through is a checklist. It’s the order that you do every single wholesale transaction.

Wholesalers are deal finders, not deal creators.

We started with, first, you got to find a list to target. This is where we are pulling our distressed property owners. We’re not going after every property. We’re going after statistically 6% to 10% of the real estate market that is in distress for whatever reason, pre-foreclosure tax default, the renters are making payments, they’re tired landlords, the properties were burnt down, they haven’t been updated. There are so many different reasons why properties are in distress.

Number two, make contact. Quality conversation is the name of the game. When we’re making contact, we have three options. One, we buy people to call us. That’s called marketing, direct mail, pay-per-click, billboards, bandit signs and all of those things. Number three, we get referrals from our network, we get people that we trust. We are known in our area, as the trusted cash buyers or the trusted real estate investors that people bring deals to. The fourth one is being proactive and going out there and you reach out either by door knocking or picking up the phone and calling people. That’s the whole talk to people.

The message is to be proactive. Go out there, make contact and have a quality conversation. From there, we have to qualify every single lead. Every conversation that we have with the property owner surrounds four things. We’re looking for four things. We’re looking for the condition of the property, timeline to sell their motivation to sell and their price. There are four pillars of pre-qual that direct the conversations that we’re having with distressed property owners.

Next is due diligence. Is this a deal or not a deal? Running comps, making sure that the people that we’re talking to are the actual owners, lead follow-up. 99% of the time when you talk to somebody for the first time, they’re not going to be laid outs. You’re going to have to follow-up with them. Be fanatical with your lead follow-up.

The appointment is number six. Number seven is your offer presentation because sometimes you go on appointments to build rapport to build trust. You don’t necessarily want to give an offer presentation every single time if you feel you can go out there and build trust. They need a little bit more hand-holding and their timelines further out. You don’t want to give them an offer now because it’ll be leveraged.

WI 855 | Wholesaling Process

Wholesaling Process: Don’t go after people that don’t have the motivation to sell their property. You’re not going to convince them to sell their property at the price that you want.

 

Contract Acceptance

Remember, time kills all deals. The appointment and offer presentation that’s when we’re going through and breaking down. The offer presentation should feel natural. It’s the natural progression of good pre-qualifying and lead follow-up is our offer presentation. Number eight is the contract acceptance. This is where we’re picking up. We’re moving. Now, we’ve got that signed contract. Now we have the opportunity. They are committed to you and you are committed to them. It’s incredible. You’ve got the contract signed. You’re almost there. The next step is you’ve got to open up escrow immediately.

Opening Up Escrow

What I do is I use TurboScan. It’s an app. You can download it. I take a picture and you could do it with a Google or Apple phone now in turn pictures into PDFs. I use TurboScan because it’s super intuitive and easy to use. I send it right to my escrow officer or my acquisition managers. Right there, at the table, after it’s signed, we send it right to the acquisition manager or we forward the email if it’s an electronic signature if you’re doing a virtual appointment. Give it to the escrow officer as soon as possible because they need time to do their job to make sure that it closes as quickly as possible.

We open up the escrow and we deposit earnest money. All earnest money can be $1, $1,000, $10,000 or it could be $100,000. Typically, in our industry, we’re doing for about $100. If you’re working with a real estate agent, if they’re representing the seller, they’re going to want 1% of the purchase price. That’s what they’re trained to look for so you need to deposit that earnest money, especially if in your state, you need consideration for a contract to be valid like in Arizona. You need to have that. Deposit the earnest money.

Reaching Out

Number ten, this is when we start going bananas. This is when we start reaching out to every cash buyer we have and telling them how great this property is. You’ve got an off-market opportunity, a perfect fix and flip, a perfect rental property, perfect multifamily and an incredible vacant lot with a ton of potential to add to their portfolio. This is when we have to make it sensational. This is where we need to make sure that our deals pop.

Time kills all deals.

What we’re selling here is the actual contract. We’re marketing the contract. This is what’s interesting because we’re not selling the property, we’re not real estate agents, we’re selling the contract. We’re selling the right to purchase that property. Make sure that you understand that, make sure that you’re not out there trying to sell a property that you don’t own and it gets into an agency-type issue so you want to make sure that you are marketing the contract so they can purchase it. You’re going to put in all the information about the property but truly, you’re marketing the contract.

Cash Buyer Inspection

Number eleven is your cash buyer inspection? Here in Arizona, we’ve got an incredible reputation. 85% of our buyers buy the property sight unseen because we take incredible pictures. We tell them everything that’s going on with the property that we know of and we let them make their decisions. 85% want to buy it sight unseen. If they do want to get in there and see the property, this is where you have to set up when you have an appointment with that seller.

You need to future pace them, “In 2 or 3 days, I’m going to have everybody come through the house. I need a two-hour window for the inspection to bring everybody through. It’s going to be an absolute circus but after two hours, I’ll be out of your hair.” Set that up while you’re on the appointment for a few days out. It gives you enough time to market that to enough buyers to go through it and set the inspection.

We always do it and we say, “We need two hours on Thursday between 2:00 and 4:00. Does that work?” If somebody buys it sight unseen, we say, “We’re good. We’re moving forward. Life’s good.” Keep working with the title and escrow. This is us speaking to the seller. Work with title and escrow to make sure they get all the information that they need from you to close this deal smoothly.

Picking Your Buyer

You pick which buyer you want to work with. This is signing the deal. You use an assignment contract. This is important. Sometimes we don’t pick the highest offer because we feel there’s something goofy going on. They’re not sounding like they’re a real buyer. They sound like maybe they’re trying to lock our deal up to try to sell it to somebody else. I would rather go with somebody that is going to put down that earnest deposit right away, non-refundable $5,000, we’re moving on to thirteen here, this is when you’ve got a legit buyer.

When you assign that deal in our assignment contract, they need to get this earnest deposit in by 5:00 that same day. If they sign the assignment before 12:00 PM, you want $5,000 non-refundable on the same day. If you assign it before 12:00 PM, if it’s afternoon, by 12:00 PM the next day. It needs to be fast.

This is make or break for your cash buyers. If they’re not doing this and if they’re letting this slip or they’re being relaxed with this, they’re going to be relaxed with the whole transaction, which is going to cause a lot of frustration when it comes to the closing date. Whether or not their funds are coming in on time whether or not they’re on vacation when they’re supposed to be closing and signing, a lot of different things come into play. This is a great indicator if they’re being relaxed, “Chill bro or broette,” out there that is going to not communicate as well and it’s trying to get that deal but isn’t going to close when the agreement says to close.

WI 855 | Wholesaling Process

Wholesaling Process: Your cash buyers need to be fast and assertive. If they’re relaxed, they’re going to relax throughout the whole transaction.

 

Clear To Close

Next is you talk to the title company and you get what’s called a Clear to Close. This means that all of the liens are set up. They got all the payoff information. They know all the people that need to sign from the seller’s standpoint and it’s called Clear to Close. This is when there’s a clear title that is ready to transfer to your new cash buyer. This is important.

If you’re not following up on this, this can make transactions go a lot longer. If there’s something that’s sticky on the title that’s clouding it up and the title company can let sooner you can help the family or the seller to fix that, to get whatever paperwork they need or talk to an attorney or whatever it is. You need to understand what happens here. Once you get that clear to close, you’re right there. You’re running down, you’re returning a kickoff, you’re at the 10-yard line.

Buyer’s Funds To Close

The next is the buyers’ funds to close. The buyers’ funds are there. It’s either their hard money or they have wired their funds into the title company. You’re almost there and we go to close the deal. Once the sellers are there, it’s clear to close, they sign, the buyers have their funds in and they’ve signed and everybody’s happy it gets closed. The title company sends you congratulations on your closing. You know what the seventeen is. This is where you get your assignment fee. This is where you get your assignment check and that wire sent into your checking account.

Assignment Fee

Imagine that wire for $37,500 hitting your personal checking account or your business account like that. You open up your app and you’re like, “This is real. I could do this again and again. I could build a business around this.” I could take these funds that I got and I can put that into that property that I want to buy so I can start building wealth. I could get some depreciation and cashflow. This is what we’re talking about. This is how we bring this all together. Those are the seventeen steps.

Sign Up Now

If you are 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 the hundreds of testimonials. Check out what the program’s about. If it feels good in your gut then sign up for a call. I look forward to working with you personally.

 

Impotant Links:

About Brent Daniels

483Brent 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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