Posted on: March 17, 2022
WI 909 | Real Estate Wholesaling


Like all of us, today’s guest truly understands the challenges of being in the real estate industry, especially when the market is constantly changing. For him, it’s a must to have a series of character-building moments so that you can learn from your mistakes and put an edge on your career.

Learn a thing or two from this episode as today we will be chatting with one of Detroit’s wholesaling captains, Scott Henson. Let’s find out how he’s been able to snatch 15 shiny DEALS in just FOUR months. You’ll be stunned at how he’s been able to do it!

15 Deals In His First 4 Months Of Wholesaling With Scott Henson

Episode Transcription

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It takes on average 90 days from the first initial contact that you have with a distressed motivated property owner to getting that closed and you earning that income. I have on the show an incredible wholesaler out of Detroit, Michigan that has done fifteen deals in his first four months, going full-time into wholesaling and his first deal in four days. Scott Henson, welcome to the show.

It’s a pleasure to be here.

You’re getting out fast. You have some experience. You were a real estate agent for a long time, so you understand the contracts and the processes. There wasn’t a lot of mystery to this business. It was just going after the right properties. Is that right?

Yeah, and then realizing that the margins were a lot better on this end of things. In Detroit, the property values are about $100,000 or less. That’s our average. You’ve been pushing me to try to get that up a little bit. The conversion rate is a little bit higher because it’s an underserved market. There are a lot of people out there chasing those buyer markets, so we looked at it from quantity over quality to try to pump out more deals. Even though our average commission is probably a lot less than the average, it was advantageous to go after some of those deals that nobody else even thought there was value there.

Getting that first deal without batch services, any leads or at least knowing anything about that was going after where I knew there were motivated sellers already out there, the For Sale By Owners. The kind of property that was comped out for probably about $50,000 to $60,000. She had it on the market within three hours of her putting it up as for sale by the owner at $15,000. I’m thinking in my head, “There’s something wrong with this property.” I got to get out there and look at it.

She’s on the phone and was like, “I’m going to take it off Zillow right now because I’ve got about 100 calls. People are offering me this and that.” I said, “I’ll be out there. Take it off Zillow.” She took it off Zillow right away. I came out with the purchase agreement. I looked through the house, and there was nothing wrong with it. There were tenants in there. It was a great family paying rent. It was a little undervalued on the rent, but she did that on purpose, probably to keep them there. I made the full-price offer. I don’t think anybody in wholesaling makes full price offers typically, but at $15,000 where I was going to go down from there?

If the numbers made sense.

I made that full price offer and closed on it almost immediately. We didn’t wholesale because we didn’t want to lose that one, so we bought that one at $15,000. In three days, we had it under contract to sell at $40,000 plus. There’s a $20,000 commission on that. We knew that it was game time at that point.

Things have been going smoothly for you your whole life. You’ve been on this incredible rocket ship all the way up. You had no hardships and didn’t go through anything tough. You’ve always been successful.

Is that the case with anybody? I don’t think so. I was a recovering drug addict and alcoholic for many years. Back when I was 32 years old, I went to rehab. I had nowhere to go. I lost everything. I lost the car, the house and the wife. Everything went out the window. I went to rehab because I had nowhere to go. I had nowhere to live.

I ended up going to a three-quarter house after that, but I have no regrets about any of that and there’s a reason why. Within six months of doing that, I pushed myself to get a new car, a new house and start filling my brain with books. I started filling myself with hobbies. I got some work and started making myself busy. It was one of the biggest character-building moments in my life.

When you start filling your brain with the right thing, it really launches you and it becomes a catalyst to show you what you’re capable of as a human being.

It allowed me to know that you can overcome anything. Our biggest enemy is ourselves. We get in our own way and when you allow things like that to get in your way, that’s going to stop you, but when you start filling your brain with the right thing, it launches you and it becomes a catalyst to show you what you’re capable of as a human being.

I know personally that some of the topmost successful real estate investors have gone through it, whether it be rehab, complete sober living or whatever it is. They redirect those activities towards the business.

It’s trading one addiction for another. I’ve studied DISC Personality profiles for a long time. You have your drivers, influencers, amiable and analytics. Typically, your drivers and influencers have some addiction problems, whether it be to work, to alcohol or to whatever it may be. They’re addicted people. They have to be nuts about what they’re doing.

There can be a healthy addiction. You could have the addiction of wanting to go out and serve the community as much as possible or build a business. Some people turn and get super healthy. There can also be a healthy focus.

It’s redirecting what your interest is. I watched something with Tim Grover, Michael Jordan’s coach. He said that you need to find people that are sick as you are. I don’t know how to put it in any different way, but I love helping people, and that’s what I know now. I know that I honestly love building relationships and the network of this. The money’s a side effect of it. I love building a team. Maybe they go home and say, “Scott showed me something about myself that I didn’t know existed inside of me.” That feeling right there is so fulfilling that it’s second to none.

What an inspiration you are, honestly. Some people don’t get out of that, but you did. You redirected, and now, you’re off and running. Let’s talk about Detroit.

Detroit is a unique market. The average price point is going to be less than $100,000. Sometimes, it’s not less than $100,000.

What’s going on with the economy there? What’s going on with the area? We have a lot of readers and a lot of viewers of the YouTube channel in Detroit. It’s a big market. The price points are incredible. There are a lot of opportunities there.

Your renter to first homeowners is about 50/50 there. About 50% of the people that occupy Detroit are renters. It has one of the highest turnover rates for renters. Eviction rates are one of the highest in the country. The month’s supply year over year hasn’t changed compared to a traditional market to where you’re below one month of inventory. In that market, you’re still at three months of inventory. There’s a ton of inventory to cycle through and that’s why I’ve seen an opportunity there. I’ve serviced that as an agent and I’ve seen that there’s an underserved market there and still a ton of inventory.

You can call the homeowners there and they’re not being bombarded or saturated with everybody else calling as well. They might be now that I’m talking about it, but go ahead. Call me up and do anything. We’ll work together on that. That market is unique because of the quantity you can go through. If you like excitement or fast-paced deals, it’s a great market because it’s one after another. I have so many deals come in to my plate that I have to analyze and teach other people all to analyze. I forget about a deal because the next one’s right in front of me all the time. If you have a fast-paced mind like that, it’s a great market.

What’s the average price point that you are getting these deals at and then what’s the average that you make on them? You made $20,000 in that one. You also jumped the gun here because we got a bell ring to do on some of these things, so we’ll break down another deal. What’s the average deal size?

WI 909 | Real Estate Wholesaling

Real Estate Wholesaling: There can be healthy addiction, like the addiction of wanting to go out and serve the community as much as possible.


The average deal size is going to be anywhere from $30,000 to $60,000. That’s going to be the actual ARV on the house. Some of these houses might be $10,000 to $15,000 to start. The ARV might be $30,000. The commission or the fee that you’re going to get off of that is going to be closer to $3,500 to $7,500. We’ve started targeting other markets where the commissions or the fees are going to be a lot more in that area, but on average, it’s going to be around less than $100,000 by far. $75,000 or less is going to be your top there.

There are some keynote neighborhoods in Detroit. There are 205 neighborhoods, give or take, in Detroit. The biggest problem most people struggle with and I don’t see a lot of virtual wholesalers tackling this market is because when you have these neighborhoods and you can go on Google maps and click the neighborhood and outline it. I can comp a property right here on this street, and that might be worth $10,000 or $20,000, but in this neighborhood, it might be worth $100,000 and that’s just two streets over. A lot of people don’t know that.

They come to me with those deals too. When I hear virtual wholesalers that come to me and are like, “I got this property here. It’s worth X, Y, Z,” I’d be like, “I’m sorry. It’s not. You got fooled by the neighborhoods because that much changes so quickly in that area. It can be less than a quarter-mile away.” You can’t just do a radius search. You got to do a neighborhood-by-neighborhood search.

I’m glad that you mentioned that because I’ve comped a lot of properties in Detroit. It’s neighborhood-by-neighborhood. You cannot be like, “This one that’s a mile away got sold.” It’s a whole different world.

The one mile away might be 25% occupancy on the whole block. A lot of times, I’m looking into the analytics and what Detroit is doing with taxpayer dollars. They have certain keynote neighborhoods that they’re trying to revitalize those efforts on. I try to focus on those areas too. I try to get into those areas and figure out where they are going to be putting the money. That means property values should come up.

How do you do that research? It’s not just Detroit. There are a lot of different areas. The reason why I push you to get into the higher markets is because on average, you make about 10% on the assignment fee or what you earn on wholesaling properties. It’s about 10% of the after repaired value. When the property is beautiful, it’s typically about 10% of that we earn. When you’re going after properties that are $30,000 or $70,000, you limit the amount of income.

I don’t know about other areas, but Detroit has this Motor City Mapping and Data-Driven Detroit. These are websites out there that you can find. They score off of sociability, crime rate, occupancy, and all these different key factors that tell them where we should focus our tax dollars on. If you’re driving for dollars and you go out there and they put speed bumps in on the street, those are tax dollars being spent on that street. Think about it that way as well, like, “Why would they put speed bumps here?”

They want to follow the construction.

If I know where they’re putting money at, there’s an effort there to try to say, “We like this neighborhood as a city. We want to make sure it stays maintained as a high occupancy rate.” As far as some of our holdings, we buy properties as well and hold them too, for some of our properties out there, we focus on those areas because we think that there’s going to be some appreciation down the road. That makes sense to us.

Having a partner with a home improvement company opens some doors and some of those other markets that we haven’t talked to as well. It’s a unique approach too. When he goes out and pitches something as far as a roof or windows and the price is too much for him, we go in that way saying, “We can also offer you a cash offer on that property.”

You’re building relationships with the contractors.

Try to be a value builder. Ask yourself how you can take your expertise in the industry to best help people.

Joe, my partner, owns a home improvement company. We’re in the same office. He’s right next door. It’s like how you’re next door to somebody you work with. We share leads back and forth. His leads become my leads, and my leads become his leads. It works vice versa. It’s a different approach on the text campaigns to saying, “Are you in need of any home improvements? Are you in need to have a contract? Do you need a property management company?” Try to bring value. It’s like you say all the time. It’s trying to say, “How can I help you?” It’s not to try to make an offer on your property. If you want to sell or fix your property, I have a solution for you.

Templeton said it in the interview. He said, “How can I be that network connector?” That’s what I’m trying to do. I’m trying to be a value-builder. How can I take my expertise and my years in this industry or market and help you best? It forms a relationship that lasts a long time.

That lady whom we sold the first house gave us two of her other two properties to sell right after that because we were a buyer. A lot of people think that we’re trying to go in, take them out, and try to get them low. I came at that as an agent to list. I said, “We could probably list this and get you more money for it.” She goes, “I want to get rid of a quickly. I’m done with it. I had to put a hot water tank in it. I’ve collected rent on this thing for about many years. I want to get out quickly.” As soon as I got the money out of her pocket, do you know what happens? She got two other properties. I was like, “That’s perfect.” 1 of the 3 was the one that we closed.

I love the idea of going to all the different contractors. Roofing, for sure, and plumbing, it’s probably not kitchen remodels. It is more like an aesthetic, but anything that is mechanical is necessary. Anything that’s necessary for these properties, you can go and build those relationships. Maybe, you go on appointments on other leads and they’re like, “We want to fix it up and sell it,” and you’re like, “Do you need a roofer?” It’s a two-way street.

It’s building that referral network. The referral network was something I learned as a real estate agent. It is building a relationship with the probate lawyer, bankruptcy lawyer, plumber, roofer and contractors. If I send you business, could you send me business? It’ll happen. The law of reciprocity is true. The Go-Giver taught me that as well. Seeing what’s in yourself and giving out there comes back to you.

What’s the big goal? What do you see going forward? I love asking this question on the show because it’s important that we have a vision for the future but stay present at the moment and do the work. You’re closing five deals. You closed a deal while you were in Phoenix before we even started this episode.

My dispo manager texted me and said, “We closed on Strathmore.” I was like, “That’s perfect.” I was in the bathroom doing my hair when I got the text.

Once you get to the point or once you win this game of wholesaling and sourcing the opportunities, what’s the big vision?

We want to do our annual goal. I know I want to do 100 transactions this year at about an average of $7,500. That gives us $700,000 in revenue there. The big goal would be where you’re at. I don’t like working. I don’t think anybody enjoys working. I work my butt off. I’m the guy that put a couch in his office so that when he’s there past 12:00 AM, he can sleep there instead of driving an hour home.

My big goal would be what your team structure looks like. It’s setting up the appropriate people, finding the correct people, testing them, making sure they’re capable of doing that position, teaching them to the best of my ability, and maybe starting some other businesses on top of that but only having to come and meet with my managers 5 or 10 hours a week to go over to KPIs and other stuff like that. I sit down and narrow that down and be able to say, “This business is sufficient. Now, I can start doing some of the things I want.” I want to travel with my son and show him the world. I want to show him Economics. If they taught Economics more in school, we would have a different country and a different world.

I want to teach him the things that I wish somebody would have taught me at that age. You said, “Show me your five best friends. I’ll show you your future.” If I had those five best friends when I was eighteen doing bad things and getting in trouble with the law, if I had a whole different circle at that age or in that age bracket from growing up, my whole life would have been a little different. I don’t regret anything. Every step I’ve taken to get to where I’m at was a necessary step to allow me to be able to deal with what I’m dealing with.

WI 909 | Real Estate Wholesaling

Real Estate Wholesaling: Seeing what’s in yourself and giving out there – it definitely comes back to you.


At that same aspect, I could have been like, “Dang it,” but I can make it better with my son. I can make that next step better for him. I can make him the best version of myself and make sure he grows quickly and prospers to do whatever he’s meant to do. I’m not going to force anything down his throat. I know that I’m going to try to help him find his true vision and his true path and push that all the way forward and give him a path to success and financial freedom.

He sees you doing it.

He’s driving for dollars with me. He’s like, “Daddy, are we driving for dollars?” I’ll say, “Yeah.” He’s only four.

How do you get your deals? What do you do?

We have a multitude of different ways that get them. I have all the batch services. I BatchLeads, BatchDriven and BatchDialer. We stack a list of motivations. We do absentee vacants. Your disposition manager, Jeremy, and I looked and there are 20,000 or 30,000 vacants in Detroit and absentee owners on top of that. It’s a very high mark with absentees. We stack for motivations. That’s one way. I have a little bit of a spiff program. That’s why we went with DealMachine and BatchDriven. BatchDriven allowed us to add more drivers at a discounted price.

They’re not all the time doing it. If they see a house, they tag it and say, “I got one. Put it in there.” I’ll give him a little bit of a cut of the deal. I’ll throw him 5% or 10% of the deal from whatever we get on the profit. I’ve got ten drivers that I’ve got to add to the BatchDriven that we might add properties that way. Then, my two acquisitions guys and I go out and drive probably 2 or 3 hours a day looking for properties. We target geo-target certain areas. We have that. Then, I always look at FSBOs because that was my gold right off the beginning.

On Zillow?

Yeah. Unlike other markets where you might think that you go to Zillow and look for the old Zillow FSBOs, I go in there to look for the one day. I filter it down to For Sale by Owner, one day on the market. They might not know what their property is worth. They might not have an idea of what that should be priced at. They just threw it out there. They’re always throwing it up here because they think somebody is coming in down here. I’ll come in there, and I’ll use data to say, “This is what your property is worth. I know you put it on there. You do have a want or need to sell it, right?”

They say yes, and I say, “What does your timeline look like? If I could get a close in 14 to 30 days, is that something that you’re prepared to do?” I used the four pillars of motivation there. I go into it and I’m getting those yeses. By the end of the day, I’m making offers on all my For Sale by Owners. I don’t hear too many people on shows about wholesaling talking about calling For Sale by Owners. Why do you think that is? I don’t hear too many people talking about marketing to For Sale by Owners.

A lot of people think that if people put their property on For Sale by Owner, they are wanting more than they can get if they list it with a real estate agent. Typically, it’s like, “We brought all these real estate agents in. They told us it was worth $150,000, but I want $180,000 so I’m going to test the market myself. Why would I pay an agent? I can do this myself. I watched a few YouTube videos. I’m going to save the 6%. I used to be in real estate. I’m not anymore, but I understand the process, so I’m going to put it on.” That’s typically the mindset that you run into. It depends on the market that you’re in and what’s going on, but it doesn’t mean that you can’t give them an offer of whatever you want to give them an offer for.

Then, they can keep that in their mind when it doesn’t show, because 9 times out of 10, you’re right. They are overpriced. They’re going to find out. If they do want to sell, they’re going to have to either adjust their price or do something else.

Wholesaling is the best business. It has the lowest barrier to entry you will ever see. And it’s growing by leaps and bounds.

Let’s break down a deal. What deal do you want to break down? Let’s get into the nitty-gritty here.

Should we break down that first deal? That was the monster that unleashed the beast.

Let’s go.

Joe Minauro, my partner, owns a semi-successful home improvement business. I was right on the border and COVID happened. I got laid off as a digital marketing manager. I came on a tour. I was like, “I’m going to start a business.” I was getting this unemployment money and then came the time to where COVID was done and they’re not helping you. I got to get to it or get off the pot. It was one of those two.

A real estate contact of mine who owned a successful title business was like, “Do you want to do title sales for me? I’ll give you a $60,000 yearly salary and full benefits and commission on top of it.” I’m thinking that’s great, but I’ve done that so many times for so many people. Also, I don’t know what it is about me. I start picking apart somebody’s business, so I am like, “Okay,” and then it gets across to where I don’t end up sticking with it or whatever it may be.

I said to Joe, “You’ve got some money sitting around. We’ve talked about selling houses together. Let’s give this a go. Let’s source of money at this.” He bought BatchDialer for me right away. I didn’t have the money to get everything. We didn’t buy any lists at that point. I didn’t even know what a motivated list was. Coming in from a realtor, I called expireds and FSBOs, and you did the same. I would have rather been calling these lists than those back then, but long story short, he took the money. I said, “Let’s give it a go. Let’s give it 30 days and see what happens. If it doesn’t work in 30 days, I’ll go take that job and you keep doing what you’re doing.”

I started cranking the phones calling anybody I could that I thought might be a motivated seller and it was within four days that the Zillow FBSO listing came up and it has been there for a few hours. She said, “I’ve been called 100 times. People asked me for land contracts. I got all these offers.” I started going through like, “What’s wrong with the property?” She said that the tenants weren’t paying enough and weren’t paying as much as they should, but she has had them there for eight years. That’s why she got them a discount on rent. I said, “That’s not a problem. Is it month to month?” She said, yeah. I was like, “It’s either they can come up on the rent or they can leave. We can find a new tenant.” She was like, “That’s fine,” so I said, “I’ll be out there tomorrow. Take it off Zillow for me. I don’t want you to get bombarded anymore. You’re going to get a bunch of calls if you don’t.” I played that card a little bit. She said, “I’ll meet you out there.”

I met her out there at 10:00 AM the next morning and had the purchase agreement made out. I don’t think too many wholesalers make full price offers. I had $15,000 written on there. I’ve looked at the comps, and in my head, I was like, “If this property is good, it’s $50,000 or $60,000.” I walked through the house and met the tenants. They were great quality tenants. The house also needed less than $5,000 in rehab. It’s not something you’re going to deck out to the nines, but it’s a tenant-occupied property. A tired landlord is a traditional statement.

She put a roof on it a few years ago and there was a new hot water tank. That’s why she got motivated to sell it. I was like, “Here’s the offer for $15,000. Here’s proof of funds. We’re going to buy this property right now. We’re going to close on it for about three days. Is that okay with you?” She said, “Yeah, of course.” I made the offer and we got it titled right away. My partner’s mom works at a title company right in the area too, so we got it right underneath there. We got that under contract and got it closed for $15,000. It ended up being $60,000 in change. After everything, we put it right back in the market and didn’t touch it.

With the tenants in it?

Yeah, and not even on the MLS market.

WI 909 | Real Estate Wholesaling

Real Estate Wholesaling: What makes this business so incredible is when you can squat up with incredible people.


Was it a For Sale by Owner?

Yes. I had probably about 100 calls a day on this thing even at the price I put it. I put it up at $55,000 and I was still getting a ton of calls on it because of the neighborhood it was in. We ended up closing on it for $44,000 to $46,000. In three days, we had an offer. We had it written with proof of funds and closed on it within 30 days. That deal netted us roughly $22,000.

You had $22,000 from you just calling a For Sale by Owner on Zillow the day it came out. I love it.

It’s the best business I’ve ever seen. It’s the lowest barrier to entry business I’ve ever seen. If you want to be a realtor, you’re looking at all the expenses and all the positions you have to fill. You have to be your own admin, own secretary, own marketing team and own sales team. I have people coming to me because they see the business now too. It’s growing rapidly and you can contest to that. This business is growing by leaps and bounds. The turnout that we’ve seen was impressive. It shows how many new people were there.

There was an incredible amount. We spoke in front of probably 500 or 600 people and I would say 90% were just getting into it. It’s incredible. It is a business that works if you do. That’s it.

You get what you put into it.

How do people get a hold of you if they want to reach out to you, want to find deals or want to maybe join your company?

I’m going to give my phone number. It’s 586-200-7401 or you can find me on Instagram @ClosingTimeInvestments. Some of that stuff is on there. You can go on and call me.

If you’re in Detroit and you want to reach out and see if maybe Scott wants to buy the deal, JV with you on a deal or has a position in the company for you, reach out. You’ve got his phone number. Let’s see how many people we can get to text him and say, “Great job on the closings.” Cheer him a little bit. We all support each other in this. What makes this business so incredible is when you can squat up with incredible people. The fact is we’re a small tribe. If you go to any barbecue in the country and start talking about wholesaling real estate, 99.999% of the people will have no idea what you’re talking about.

My mom had no clue.

Support each other support and support people that are out there doing amazing things and being positive.

Surround yourself with people who are bigger and better than you so you can grow.

Also, the last thing I want to share is you get better at chess by playing somebody better than yourself, so I need other people that are better and bigger than me so I can grow and so this thing can get bigger.

I love it. That’s awesome. Thanks for coming on here.

Thanks for having me.

To clarify, you can check BatchLeads, BatchDriven and BatchDialer out. BatchLeads gives you the list of the distressed property owners, allow you to get the comparables, and do a lot of background research. Make sure that on any of those, you use the discount code, TTP. You get a discount there. The driving for dollars DealMachine is an incredible driving for dollars app. Use that coupon code, TTP. They love the Rhino Tribe and TTP. They give us the biggest discount that they have, so use that TTP discount for DealMachine.

Also, he mentioned the four pillars. The four pillars of pre-qualifying every single seller every single time are the condition of the property, timeline to sell, motivation to sell it and the price. Those are the four things that you want to pull out of the conversation with the property owner. If you’re confused, not sure, or if you haven’t had a lot of conversations about real estate, this is the skeleton that you can work off of it.

If you are interested in joining the most proactive group in real estate investing, it is the TTP Coaching Program. This is the TTP Family. Go to Check out what it’s all about, see what comes with the coaching and check out all the incredible wholesalers from around the country that have exploded their business in the coaching program. If it feels good in your gut, sign up for a call. That’s it. I will sign off as I always do, encouraging you to go out there and talk to people. Until next time, I love you guys. I’ll see you in the next episode.


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About Brent Daniels

WI 909 | Real Estate Wholesaling 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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