4 Wholesaling Lies That Cost Me $1,000,000

Most wholesaling gurus are lying to you about how easy this business is. I've closed over 300 deals and made millions, but before I got started, I used to believe the same BS that everyone's preaching online. Just put the property in the contract and get paid. Cold calling is the best marketing channel. One deal a month and you will be set. But here's what nobody's telling you, and these are the 4 things that almost made me quit and that made me lose over $1 million over the last 2 years. And understanding these 4 brutal truths are the difference between you making $3K per month to $30,000 a month to $100,000 per month. Now let's talk about the 4 truths, and at the end of the video, I'm going to show you how to fix them. Now think of wholesaling like owning a restaurant. You would think that when a customer orders the food, that's when you get paid, right? Well, it's basically the same thing with wholesaling. When a customer comes in, that's kind of like when you are putting the property under contract. But before they pay, you know, let's say they have a busy day in the kitchen and the kitchen mess up their food, or maybe they find a hair in in the food and they don't like it, that doesn't mean that they're going to pay. And that's the exact thing, the exact same thing that happens when you are wholesaling, right? Something can go wrong and a deal can fall through. Why? Because you're dealing with inspections, with buyers, with agents, with lenders, with market conditions that will put a toll on your process. So you need to be very good at all points of the process. And then this is the same reason why a lot of wholesalers quit, because it could be the difference between you losing a $20,000 deal, $10,000 deal, $15,000 deal, and it just takes longer to close. So wholesaling is never guaranteed until the money is in your account, and then you need to be very good at multiple things. Now, here's where things get interesting. Most wholesalers think of— think about fishing. They think that you can get a fishing rod, go to the shore, and just pray that you catch one fish, right? But let's say that you were to invest in a boat that has sonar and you know the best locations of where to fish. That boat is going to give you 50 fish a day as opposed to just one. And the main thing is that marketing spend is non-negotiable. Now remember, the people that we're dealing with is like finding a needle in a haystack. And that's why we need to use our marketing dollars in order to use those to reach the people that we want to talk to, which is motivated sellers. Now, when you're doing cold calling, you need to do a lot of outreach. You need to get 100 nos before you're doing a yes. And just so you know, we use inbound, we use Facebook ads, And last week we spent like $2K and we got 2 contracts with $25K revenue and our average is $20,000. So with the same spend, I'm more efficient because I have a boat and most people have a fishing rod. They're praying that they catch a fish, but me, I know exactly where the fish is at and I have better equipment. So you need to think about your marketing dollars as investing and you need to invest into your business so that you make more money. And most people think that you're just praying, hoping the deal just fall on your lap. And that's further than the truth. You just actually need to go out there and go where the fish are at. And that's how you find motivated sellers. 'Cause what we do, we put on great ads that speak directly to their pain points so that they want to work for us, right? And our cost is cheaper and that's why we're able to make more money 'cause we're more efficient and we know where the fish are at. And it gets worse. Now, most wholesalers, they're married to one exit strategy. Now, most wholesalers put a property under contract, let's say $70K, and then they try to find a buyer for $75K. To $80,000. They make anywhere from $5,000 to $10,000 per month. But for us, we're able to make $15,000 to $20,000 per deal. And the way that I like to use this analogy is imagine a taxi that only goes to the airport and he charges $20. But within that same car, let's say someone drove for Uber and they didn't just go to the airport, they went elsewhere. But then also they used Uber Eats, they used Uber Black, for the same service, he can charge $60 as opposed to $20. So that's why, that's why it's very important that the only way that you control how much money you make is by having multiple exit strategies at your disposal and that you're not only married to one exit strategy. So with our process, we're able to contract one for every four offers that we send out. And our average profit per deal is $15,000 to $20,000 because our process is just way better than what the competition is offering. It's the same seller, but we make double than what everybody else makes. And in the end, it all goes back to our bottom line, which is our profit, because we're just way more efficient. And let's look at the other thing, right? When it comes to the 3 levers that control everything. Now let's get to the one that almost killed my business. There's only 3 things that you can control in your wholesale business. One, your cost of acquisition, meaning how much does it cost you to get a contract and how much does it cost in order to close that, uh, contract, right? Number 2 is how much profit do you make per deal? And number 3 is in how long do you usually make the money? Now, the way that I like to give this analogy is imagine that you have 2 vending machines, right? On one vending machine, let's say that it costs you $1 for every Coke that you are going to sell, and you can sell that Coke for $1.50, right? Now let's say that you had another vending machine and you were able to negotiate with the suppliers and where instead of it costing you $1 to get a Coke, let's say that it costs you $0.50 to buy a Coke and you were able to position this vending machine in a busy street where people can actually pay $3. Now you're making $2.50 more than you would have with the first example, right? And if you are able to do this, you double your business because now you are making more money and it's the same vending machine. You just make more money with the other one. And if you understand what your cost per contract is, how much money you're making, and in how short of a timeline you can make that money, you're going to become invincible. And those are the main 3 things that you need to control in order to make money. And these people make it seem like it's just so easy, but there's time and there's skill, and you can only own 2 of those skills, which is how much it's going to cost you and how much money you're going to make. Now I know what you're thinking. You're probably saying, Fidel, this sucks. How do I fix this? Well, I told you in the beginning that I was going to tell you how to fix it. So The two main things you need to fix is gonna be your cost per deal and how you acquire leads. Now with the Arbitrage Ads method, you already know that I'm a big fan of Facebook. I have multiple videos here on the channel on how we do it, but we're basically able to get $20 to $40 leads when everyone else is paying $100 plus. Now this is today on one of my campaigns, 8 leads for $11, 4 leads for $25, and we're able to contract one in every 20 leads. So this should get us a deal tomorrow, right? So that's how you fix your cost per deal, right? You just need to have better marketing. And inbound is way better than outbound. Why? If you think back of the example that I gave you with the fishing boat, we have a boat and most people have a fishing rod. So who do you think is gonna get more fish? Of course the boat, right? So that's exactly what we teach our students. And I'll tell you more about that later. But the other thing that you need to have is a killer sales process. Now remember the vending machine example where we put that in the busiest street and we're able to make more money than just selling Cokes for $1.50? Well, that's what everybody else is doing. They're just wholesaling and praying that they find a cash buyer that's going to give them their assignment fee so that they can flip it. Well, we flip that on its head and what we want is for retail buyers and investors and anyone who can see the property to give us the highest and best offer. And that's how we're able to double the assignment of what we typically make. So if the traditional assignment fee is $8,000, With the same property and the same seller, we can make double that because we own the boat. And now we can guide them through their options. And if we can put in a killer sales process where we have a lead manager and a closer and multiple exit strategies, we can crush. And if you're thinking, well, how do I do this? This is what we teach our students on how to do. I actually had my guy Riley, that's going to be the interview for next week, and I'm going to show you how he is making $70,000. His first 90 days with me and he was almost ready to quit. So I taught him how to do novations and we plugged in our done-for-you arbitrage ads method. And then his return and his cost per contract was super low. Now he's making a lot of money per deal and that's what we're able to fix all these things, right? And now most of our students that come in that are spending $2K to $3K per month, we can scale them all the way to $30K to $50K per month while being very conservative with their marketing dollars because we're able to plug in, plug in the boat and Killer Sales process like the vending machine and just make way more money. So if you are interested and you're a wholesaler who's doing deals and wants to see how we can implement this into your own business, please click on the link down below and book a call and let's see how we can help you. Like I said, this is only for people who are ready to scale. So if you're just thinking about the options and you're not ready to make a decision, please don't book a call. This is only for people who actually want to scale and we have a ton of proof to prove this. So if you're interested, click on the link down below and I'll catch you on the next video.