Posted on: March 24, 2022
WI 914 | Wholesaling Deal

 

We’re dropping gems today as we dig deeper to where the magic of deal-making happens.

DealMachine is the highest real estate investor software for lead generation. It is designed to help real estate professionals in finding off-market candidates, building lead lists, and of course, obtaining error-free real estate data to close quality deals. Matt Kamp, the Vice President of Partnerships in DealMachine, will give us an overview of how you can generate more leads via driving for dollars. Make sure to listen throughout the end because we will be sharing a discount code exclusively for you!

Everything You Need to Know to Close Your First Wholesaling Deal

Episode Transcription

We are talking about where 80% of brand-new real estate wholesalers or investors find their first deal, first opportunity, first discounted property, and it comes simply from driving for dollars. This is going out into your community, onto the streets, and finding the properties that need the most renovation and love.

To put it very simply, they are the ugliest properties in your community. For several years, the number one resource that has helped real estate investors and wholesalers is DealMachine. I want to talk about all the updates and give you all the stats so that you have the expectations of, “How many properties do I have to find to get a deal? How do I go out there, get those deals and start those quality conversations with the property owners?” It is my pleasure to bring back onto the show and YouTube channel Matt Kamp from DealMachine.

Matt, how are you?

Mr. TTP, thanks for having me on again.

I am excited because we are going to be talking about quality over quantity. That is what you get from your driving for dollars list. It is a list that other people don’t have. You can’t simply download it but you have increased the filters for your DealMachine app showing all the other kinds of distress in the market. We are talking about pre-foreclosures, tired landlords, and some of these unique distressed property lists. I will let you go into it because you are going to do a much better job than I am. Talk to me about what is going on with DealMachine and what are you seeing as the most effective way to build your driving for dollars list?

You nailed it on the driving for dollars front of like, “This is the number one strategy to find that first deal for newbies to get out there.” You are building this list that no one else has access to. You are building a list that is exclusive to you, and because of that, you are going to have a way less likelihood of going up against a ton of competition. You are looking for those diamonds in the rough that you can only find by putting in the sweat equity, either you personally or hire a driver to go, do that, and build this list. It is about the quality of lead over quantity. We are always looking at our data to figure it out. Let’s give people a real guide to set goals and say, “Here is how many leads you need to be looking at to be able to get to that next deal.”

Equality over quantity is what we are talking about there. On average, when you are looking at pulling some list or buying some lists versus driving for dollars, I’m looking at our data and we can get to that first deal. You are typically looking at 4X to 5X the marketing spend you need to do when you pull it or buy a list versus building this exclusive list yourself. That is what we mean by equality over quantity of lead. I’m excited to show off some specifics in the software and the new updates we have been had and released for you folks. I appreciate you having me on.

You are the best of the best. I’m a big supporter of DealMachine because I do these interviews on this show and it is 50/50. Fifty percent of the time, people are saying, “I got this deal from driving for dollars,” as opposed to some other lists or techniques. They are getting this list, the quality, and then calling them. They get the phone number for these property owners, call them up and ask them if they would consider an offer. It is that simple.

If this is your first time reading this, you are only getting into, “What is wholesaling? How do I find discounted properties? How do I go and find these incredible deals that I see all these interviews of people closing and they are making $10,000, $20,000, $50,000, or $100,000 on?” It starts with building your driving for dollars list. Keep it simple. Ugly houses equal big checks. That is the focus.

It requires you to build good habits to take action on building the list, following through and consistently doing that.

DealMachine has spent more money. You have more support staff and data. You have been investing and reinvesting. We use it in our business every single day. I have a driver out there building our lists throughout Arizona, not only in our county. It has been a huge benefit to our company because we closed a lot of deals and made a lot of income from driving for dollars. That is the fact. Matt, let’s get into this thing. Talk to me about some of the updates that you have done with DealMachine.

One main focus of anything that we are doing is how do you build that list? How do you get out there? How do you be able to most effectively and efficiently drive that area? Put out the highest quality leads and pull that into your list and DealMachine App. We are a mobile app first so you are typically out there driving around it and tagging things. We double that down on customer support there as well. We’ve got a two-minute response time in terms of our customer success team. If you are out there and need any help, we are here to support you there too.

Step one is to build that list. Step two is to talk to people, making that call. On average, if you look at our data, it has popped up a little bit in terms of the number of leads that you need to get to that deal. You need to put in that hustle and talk to people like that. The number of leads typically if you are in a market like a St. Louis and Midwest Market, you are looking at closer. Aim for the 300 to 400 lead goal. Shoot for that to be able to say, “If you land that first deal and consistently follow up with some more success, aim for that number to be able to put into DealMachine and reach out to.”

If you are in Phoenix, California, or somewhere a little more competitive, you are looking at 2X to 3X, closer to the thousand lead number. That is where it gets important to be able to use technology, add drivers to your team, and people to go out there that will help you out on hitting that lead number like you are doing within your local market. Everything we are building is focused on that.

To clarify, Matt, do leads mean addresses? Are these properties that you see that you are adding to your DealMachine app?

Correct.

These are 3 to 400 ugly houses. If you are in a big market, it is 600 to 1,000 ugly houses. About how many ugly houses can you add to the app per hour if you are virtual driving it through Google Maps or something like that? Do you have an idea on that, Matt?

WI 914 | Wholesaling Deal

Wholesaling Deal: With DealMachine, you’re building a list exclusive to you, and because of that, you will have a way less likelihood of going up against a ton of competition.

 

On the conservative side, on average, you will see 20 to 30, especially if you are going to take pictures of houses but we see people get out there. If you get used to this and you are in the right area where you have got a lot of options around you, we have seen people do up to one a minute. This is a process you can get better at and then consistently train at. Setting that 30 leads an hour limit is a goal-setting. When you hit 300 leads and we are doing 30 an hour, find 10 hours of driving and that is where you can put in the work to get to that first deal.

I will tell everybody out there the strategy that we implement is we don’t go out and drive, then start calling them. No. We get updated every single day and get the phone numbers. We are adding it to our driving for dollars list that we are calling every single day. You can start taking action on day one. You can drive out there, add 20, 30, or 60 properties, get the phone numbers and start making the calls because what I see is some people use this as creative avoidance. They are like, “I’m going to go out and drive and wait until I get to that 600 to 1,000 leads in this major market before I start reaching out to them.”

That is a huge mistake. Don’t fall into that only because you are out there and building it. That is fantastic but the magic happens when you are proactive, you reach out and have a conversation with that property owner. It is not only about building the list. You can do it simultaneously and at the same time. As you are building your list, make sure that you are reaching out to them either by call, text, knock on their door, or use a mail. You can also send out postcards through the app, which a lot of people do as well and get a lot of success from that.

When I was starting, I didn’t have a huge marketing budget so I had to rely on my voice and work ethic to go out there and find these opportunities but if you do have a little bit of a budget, you can invest in the mailers. You are calling and texting them. Maybe you are door-knocking and sending a mailer on the hottest leads in the marketplace.

The fact is, at some point, that property owner either has to find a lot of money and the contractors and organize to get that property fixed up and get top market value, or what they do 95% of the time is they sell it to somebody like us like a real estate investor to be able to go out and do the work because they don’t have the money, the time or the expertise to go out there and fix it up themselves.

That was a phenomenal tip of saying, “Don’t put it off where you create the whole list and start calling.” Take action where you are going out there, go into the field, drive around and add those leads. You can pin the property right there and keep going. Build a strong list and then come back and call that same day where you can take action on it. We look back and see like, “What are the most successful investors doing?” You are right. They are doing a combination of the skip trace, calling, texts, email, door knock, or that short-term feedback loop. They are putting them on a mail campaign to stay top of mind. When you would call, you have a little more familiarity then but they are taking action where they are not only taking action on building the list but they are following through.

They are consistently doing that. It requires you to build good habits to do that. That doesn’t mean it is very easy to put it off and say, “I will call once I have enough leads.” Go now. We had a guy on our YouTube Channel where in the first seven days, he was doing this where you would make calls every single day. In his first free trial with us, he landed a $50,000 wholesale fee. It is like, “This is very much possible.” This is something that you don’t want to go into it expecting your first call to be successful but you are not going to have results like that unless you take direct action right away.

Follow-through is what matters. It’s being able to consistently follow up with your leads to land that deal.

It is rare. I have at least 60 episodes of people that have gotten their first deal from DealMachine. That is why we talk about it and I push it because I want to simplify this business as much as possible. There is nothing simpler than driving around, finding ugly properties, adding them to your database, keeping it organized, and staying in front of them. If you do that enough, you cannot lose. It is impossible. I don’t care if you are speaking a different language. I want you to communicate as effectively as possible. I’m serious when I say that you can go and screw everything up with no experience. You will find motivated property owners on this list, guaranteed.

You said fixer-upper property or physically distressed properties. Those can look a wide variety of different ways too. We see people who are successfully driving to nice neighborhoods that have properties with a little bit of something askew. Those little things can drastically increase the odds of that particular property owner who doesn’t want to deal with that particular property anymore.

Let’s get into the updates here.

You are going out there, building this list, marketing in this list, calling people, and sending mail like that. This is the lead’s view. All of those leads when you tag a property when you are driving around, this is where they live here. We would see the most successful investors. They are going out, driving, using their phone to tag the properties, and coming back to their desktop to manage this part of the process. This is the thing we wanted to upgrade for people because this is where that follow-through is what matters. It is taking action on that and being able to consistently follow up with your leads to land that deal. You can see a ton of upgrades here.

We have a new simplified menu coming out very soon to be able to show you, “Let’s access our maps, leads, the selling. Those sales pages we have talked about before the property pages, dispo, mailers, our list builder, and all of that.” It is easy to find with a new menu but what is rolling out live, which some of you already have, is this lead’s view. One, you can see a list builder help you score those leads and understand where we should focus our time. How many lists is that particular lead on within DealMachine?

We will help you filter that way but you can view any lists easily here where you can pull up different tabs and say, “I’m going to pull in a tab around leads that were on this new bulk skip. Here is a variety of different leads that I can easily pull up and jump between each list.” That way, you have got tabs to work from and make it real easy for you to look back and forth on all the leads that you have added here.

Where this is super helpful is if you are using multiple technologies, getting a list from different sources, going here and want to add leads and import a list from other different things that you are doing outside of DealMachine, you can use this as a hub to be able to look. Not only score the leads based on this number but come in, take action and drive a particular list.

WI 914 | Wholesaling Deal

Wholesaling Deal: Step one is to build that list. Step two is to talk to people and make that call.

 

There are top companies and people that I’m coaching getting better results by going out, uploading their lists, filtering it into DealMachine, sending somebody out that they pay hourly to then go out and verify that these properties are truly in distress. Only because they are on a list doesn’t mean that they haven’t been remodeled, people have no interest in selling that property, they are in good shape, or there is no real motivation.

They are filtering through to find the worst properties that are on a pre-foreclosure list, a probate list, a tired landlord list, and a tired multifamily list. They are putting it into DealMachine, getting somebody out there to put eyes on it, and verifying that these are good properties. If you are only getting started, don’t go through all that. If you have the manpower and a big budget to be able to hire enough people to be able to do that, it is fantastic but if you are only starting, this is a great way to go after very targeted lists because it is going to show you, “Here it is. You drove for dollars. They are also behind in their taxes.” These are critical things as we are getting more into a market of quality, not quantity.

Especially if you are on that limited budget, you have got to focus on those highest quality leads and that is where you should be spending most of your time as well. Regardless of what your budget looks like, you have a resource you can get back, being able to come in and import leads. You can use our list builder and create your lists right inside DealMachine or any outside lists that you talked about there. Coming in and verifying that these are physically distressed properties on top of those other criteria of what that list already came from, to begin with, that is going to tell you an extremely high-quality lead that has all these different potential motivators.

This drive list button, when you click on it, you will see these leads are spread out a little bit. You will see 25 different properties pop up. It will estimate for you how long it is going to take to be able to go and drive past each one of these. You can automatically come in here and create a task for yourself to go drive it. When you jump on the mobile app, you can easily click, “Drive this list and go on.” It will lock on your location.

If you are a scaling investor, you can assign it to someone else on your team, have them go out there and drive it that day. The goal is, “We want to make it extremely easy for you to as efficiently as possible.” Verify the condition of each of these properties within your list. It will import that GPS right into the DealMachine app and say, “Go.” This is the fastest route possible to drive past these leads.

I love it, Matt, because I hear all the time, “When I call on this list, they have been called fourteen times already. I can’t get ahold of this person. The phone numbers aren’t right or they are not answering.” How about once a week, you and your whole team or if it is only you, spend a day going to these properties and knocking on the door? As long as you feel like it is safe, go to the door. See if you can have a conversation with this property owner that you can’t catch on the phone. You can filter out the people that you have already talked to who have either said that they don’t want to sell or they are in the lead pipeline that you are following up with.

The average contract rate for cold calling is 7%. What do you do with the other 93% that are on your list? You either have to text them, mail them or go to the door. It depends on what budget you have but a strong strategy is to stay proactive. Once a week on a Wednesday, you go out, go to all the properties and knock on the doors of all these properties that you haven’t been able to get ahold of the property owner.

In such a competitive market, you’ve got to find ways to stand out.

These are the things that are going to be so critical in 2022 because it is getting to these property owners that other people aren’t having conversations with. When you are negotiating one-on-one with that property owner, you get the biggest deals. Think outside of the box a little bit here. Matt has given you all the tools that you need to be able to go and target the right people so that you are not wasting your time talking to people where properties are already in good shape, want retail, or whatever else. Go to these properties that are stacked on multiple layers of distress. Make it fun. Make it with your team. If you are by yourself, squat up with somebody in your market. You get into the car, drive around and find these opportunities. I’m telling you, it is going to be huge.

You are dropping gems. I love the door-knocking example. That is phenomenal because, in such a competitive market, you have got to find ways to stand out. If you are already driving that Lyft, you are doing something that people pulling a list or buying a list from somewhere else are not doing. They are not physically driving by. Take advantage of that time. If you can door knock like that, the majority of communication is on money so you have a much higher chance of being able to build a rapport with people, build a true relationship and communicate on another level with them. I love the idea of driving that list and combining that with door-knocking.

What else?

Other upgrades that I wanted to highlight are coming. They are not quite here yet. We have a pretty big facelift coming on the map side. We do have upgraded data that kicked in mid-January of 2022. We have upgraded data when it comes to skip tracing and property owner data. That is going to be updating daily where it used to be weekly on Mondays. You can see these new clean interfaces coming out as well as a new D for the onboarding experience. Once that is live, people are going to jump in and be able to be guided 2 or 3 DealMachine to make their first phone call and send their first piece of mail.

It is helping you coach through that uncertainty, take action right away and be able to start using the app right away. We see it is such a direct connection where if people are going out, adding that property and reaching out to that owner, they are going to see the value. They are way more likely to stick around with us because we are giving them the tools and helping them overcome those hesitations. We are going to be doing a better job of that with that onboarding tour. That is all coming.

As well as the last thing on the D for D side and upgraded map, where our new map view is going to be able to come in, we are going to have faster loading, smoother driving, better zooming in and out, improved route planning, a whole new facelift there and a virtual D for D upgrade too. Make sure to stay tuned. That will all be coming out. I’m excited to relay that bit by bit to you and make sure you are some of the first people that have them.

The stats in smaller markets, 300 to 400 addresses per deal. 600 to 1,000 addresses per deal in the bigger markets. Remember, in the smaller markets, the average deal size is about 10,000 and in the bigger markets, it is 20,000. We are talking about going out there, putting in the work to build your list but remember, that lists last. To talk about a strategy that my team implements, we keep our driving for dollars lists in action year-round.

WI 914 | Wholesaling Deal

Wholesaling Deal: If you’re on that limited budget, you have to focus on those highest quality leads. That’s where you should be spending most of your time.

 

They will tell us they don’t want to sell now, but at some point, they are going to sell. The number one rule in our business is if the property is in rough condition and it is an ugly house, it stays in our database until that property sells to somebody else or sells to us. Eventually, they might not want to sell now but they will want to sell in the future when something happens, whenever the decision comes up that they are going to make to sell that property. It is going to happen.

Unless they are going to take a bunch of money, which most people don’t, they are going to have to sell to a cash buyer because a conventional loan won’t lend on these properties. We are talking about the roughest properties out there in the marketplace that need cash offers. Keep them in your database forever and keep talking to them. Keep building it. You might need 300 to 400 addresses to get one deal but you might pull out 10, 15, or 20 deals from those addresses over time.

The whole goal here is to be able to focus on that quality of lead, getting out there to drive for dollars where you can do that best, be able to consistently stay top of mind with them, truly getting out there and talk to people. That is where you are going to be putting together long-term success. I’m excited to show all this stuff off and give people the tools to do that.

Matt, thank you so much for spending some time talking about all the updates. Remember, DealMachine loves this channel. They love Wholesaling Inc Rhino Tribe. They give the biggest discount possible. Make sure that you use the coupon code TTP when you are checking out at DealMachine.com. Matt, you are so quality. You are a superstar and the best. Thank you so much for jumping on here and giving us all the updates.

Thank you. I appreciate the time as always. Good luck to everybody out there.

For real, 80% get their first deals from driving for dollars. It is a staple list that you have to build. Make sure that you are doing it every single week. These are the big deals that come from these opportunities because they need the most renovation. That is it for me. I will end this episode as I always do, encouraging you to go out there and talk to people. Until next time. Love you, guys. See you.

 

Important 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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