How I helped this Wholesaler make $40k in 30 days (copy it)

I've been wholesaling in the Midwest for the past few years now. From there, it's been definitely a slow journey. I actually just shut off all my cold calling, texting, and mail, and just am now focusing on this.

What's your cost per lead? Because it's been kind of crazy with you because it was like so low.

The cost per lead was about $35.

That's crazy, bro.

Yeah.

So you're kind of spending $2,000 to $3,000 started. And then he got 3, 4 deals out of that super quick. So the ROI probably paid for itself within the first month.

I cut all my marketing expenses and that's getting us, I mean, consistently at least 3 leads a day, if not like 5 to sometimes up to 7 leads a day.

What's up guys? I got my guy Riley over here. Do you want to give us a little background on yourself, your market, and all that stuff?

Yeah, so I've been wholesaling in the Midwest for the past few years now. My primary market was always Wichita, Kansas. Recently I had expanded into a couple of different counties in Oklahoma as well. So I've been strictly wholesaling, you know, since I started. I did, you know, I tried flipping here and there. Didn't go too well. But yeah, I mean, once I— when I had graduated high school, kind of got into the real estate game, was sort of just looking for something to— a catalyst to get me out of having to go to college. So, convinced my parents that that was going to be the ticket and that would work out. It didn't really work like that. It took a while to see success. But over time, you know, eventually got my first deal. From there, it's been definitely a slow journey. But yeah, I've been, like I said, just wholesaling. Kind of, you know, slowly growing and struggling, but trying to, um, to scale over time.

Yeah, it's funny because we met a few years ago and I think both were, we were both starting to, you know, start scaling. Um, and then it's funny that we ended up kind of working together a couple of years later. Um, but if you don't mind telling us kind of like the team size and what you were doing before, you in marketing before you started working with us?

Yeah. So team size as of right now, um, it's just me. Um, I have one acquisition manager who's based in the US. I have, um, a follow-up specialist slash lead manager, um, based in Brazil. And then I have, um, an admin assistant. So that's my entire team right now. Um, and then You said, uh, you asked as far as what I'm doing for marketing.

Yeah, like what you were doing for marketing before and what we're doing right now and kind of how that's going.

Yeah, um, before, man, it was, uh, it's— I feel like I've gone through a lot of cycles trying a bunch of different stuff, having some success with some channels and other channels just failing miserably. So, um, I started Kind of like everyone else, you know, cold calling, hiring a VA, cold calling myself, and then getting into SMS. That's kind of been my primary thing since starting was SMS. And, you know, I've had a texter that will just freaking send thousands of texts every day. You know, you got to make sure they have enough records and just a huge hassle. Cold calling and texting. I did mail for, I don't know, 2 years, which turned into my primary revenue source. So I had those going and then as of recently, I mean, I kind of just went all in on Facebook. Yeah.

Can you tell us what made you want to look into this a little bit further when it came to the inbound? Like learning it yourself?

Yeah. Well, I just saw, I started by seeing the stuff you were posting. I'm like, nah, there's, he's not getting leads for $20. Like, that's just not how it works. There's no way that's possible. Um, and then I remember I reached out to you, like just asking you more questions about it, like how it works. And then you kind of explained that, you know, you're doing it yourself. And I had always thought like. For PPC and for Facebook, like, nah, you need an agency. You need a professional, someone that's trained in this, that knows how to work with the algorithm. And, you know, whatever story I was trying to tell myself to avoid the work, but I just didn't think that that was possible. So, yeah, I saw you, you know, posting your success with it and then got curious. And once I actually saw that it was real, and possible, then I kind of just jumped in from there. Yeah.

Can you kind of talk about the results you've had? Because you're one of the crazy clients that we just set up and it was like super smooth sailing from the get-go, which was kind of crazy, but can you kind of talk to us about your experience with that?

Yeah. Um, I mean, I've had like, there's, there's have been some ups and downs here and there, like since starting it, because I started a little slow just to kind of test it out. And then as I am seeing the leads come in and that like, yeah, it actually is working, I'm just starting to pour more and more into it. So, um, when I first joined the program, um, we went through, you know, we set everything up and I think I just filmed like 1 or 2 ad copies myself. Um, I don't even think we tested any images or it was really just those 2 videos. Um, tested those in only 2 markets. And that started doing really well. So we let that run. Um, and I mean, shoot, we locked up like pretty, pretty quickly, we locked up like 5 contracts. A few of those unfortunately didn't end up panning out, but that once I saw the proof of concept, at least like, okay, we got like, this is generating deals. You know, I spent like what, $2,000 on on ads and like already like contracts are coming in. Whereas with mail, it's like you gotta spend, you know, $5K to like hopefully get a deal.

Yeah.

Um, so once I saw that, I, you know, continued kind of feeding more budget into it, started testing more creatives. Um, and then as of like, I don't know, 2 weeks ago, I actually just shut off all my cold calling, texting, and mail, and just am now focusing on this.

Yeah. Well, what's your cost per lead? Because it's been kind of crazy with you because it was like so low.

So between my Kansas and Oklahoma markets, which was I think a total of, I don't know, maybe 4 or 5 counties, 3 cities. Um, the cost per lead was about $35. I want to say it would range between like $28 to like $37. Um, and then I started testing a, uh, somewhat nationwide campaign, um, with like just a ton of like 100, 120 different cities across the country. And I think as of right now, that campaign is at like $11 a lead.

That's crazy, bro. So you're kind of spending $2,000 to $3,000 started, and then you got 3, 4 deals out of that super quick. So the ROI probably paid for itself within the first month, right?

Yeah, definitely. And I mean, I was able to go and like, I Cut all my marketing expenses. And I think as of right now, I have my budget set to like, I don't know what it is per day, but $3,000, $4,000 a month. Um, and that's getting us, I mean, consistently at least 3 leads a day, if not like 5 to sometimes up to 7 leads a day, just, yep. You know, $3,000, $4,000 a month throwing at Facebook. So. Yeah.

That's good. Did you have any fears before like looking into this? What was like your biggest concern?

Um, biggest concern was I just thought it was super complicated. Um, you know, I thought that I'd have to spend weeks watching videos, reading books. I hate reading, so I was like, shoot, I'm probably gonna have to like read up on how to do this. Um, it's gonna be complicated. I thought, you know, you know, maybe I'll throw a couple thousand dollars at it and it just eats my budget up and I don't see any leads. So that was my fear going into it. Um, which is probably why I like delayed getting into it for so long. Um, thankfully that none of those things were true. Um, I mean, after talking with you on our one-on-one calls and then going through the videos, got everything set up, And even just like messing around within the Ads Manager, you can kind of learn most of it for yourself. And then it's just about like testing what works. So, you know, that took some time just kind of learning, you know, how to use the backend of Facebook. It's, you know, it can be a little daunting at first. But yeah, so far haven't wasted any money. Every, I feel like every dollar has turned into has turned an ROI. So yeah. Yeah.

Because I feel like when you started, it took us a couple weeks to get you set up because I think you paid, but I was like, oh, I'm like, hey bro, I need some videos from you. You're like, oh, I'm over here in Hawaii and stuff. I'm like, okay, let me launch some stuff that I have and see how it performs. But then when you came back and then you recorded the videos that we kind of told you, those perform very well. And I feel like the speed to value is very important where We need to kind of get to work pretty quick. And the way that we teach it is like, okay, you come in, you get an intro basic course that, you know, it's probably like an hour, but that gives you enough context for us to start working. And then, you know, we kind of set up everything ourselves to get you launched and then kind of give you context and feedback and coaching on how everything's working on the backend. But we're still kind of working on that because the, the main skill that we want to have is like that you guys learn, you know, how to do it yourself. So I think like looking back, do you think that it's as complicated as people make it seem?

No, definitely not. It's, I mean, it's, it's definitely not as simple as, you know, signing up with an agency and then just clicking a button and you start getting leads. Like it's not going to be like that because you're, there's such a, a cost discrepancy there. It's like, yeah, if you want the easiest method and you don't want to do any work, like you're, you're just not into, you know, going, setting up your own marketing or whatever it may be, you don't have the time, then yeah, you know, I guess go with an agency, pay $350 a lead. And if you can make it work, cool, like all power to you. But if you like actually want to maximize your ROI, then yeah, just spend at least a week like learning it. And that's really all it takes. It's like, yeah, you don't need an MBA or anything to at least get started and to see results.

Because for me, like what I preach is like simplifying the business. Because as it is, it's like very complex. Real estate, a lot of moving parts. So I'm like, okay, how can we systemize everything and make it more efficient? Where it's like, okay, let's say we market, we get the leads, and our job is just try to contract them and sell those leads. Because at the end, it's just like sales and marketing. But if sales is super important and we never delegate that, why should we delegate the marketing, right? Which is like the two most important levers that we can pull from. Um, and what it did in my business was pretty crazy. So I was like, okay, started kind of posting about what I was doing. A bunch of people were like interested. So you were kind of like one of our first clients. And as I saw people getting results, I was like, okay, I mean, we can really do this. And then we made some tweaks of like the style of like coaching and stuff, uh, and thought, okay, what's the best way that we can teach this so that people can start taking action and start getting results from the get-go? Because for you, like, it was pretty quick, uh, but not everyone learns kind of like the same way. So for you, I think for you, like, you have a good understanding of everything. Uh, some people are not like that and need some, like, they need more support, which is fine. Well, we're here to kind of give you guys the support. But, um, yeah, that's kind of like how we go about with the coaching. Uh, can you talk to us about kind of like what the feedback is with kind of like with the team on how we coach you and response time, kind of like all those things?

Yeah, well, First, I appreciate you kind of, um, like motivating me to just like jump in and get started. Um, cause it took me a while to get there and then finally I made that decision and I was still kind of slacking a little bit. And then you guys went in and helped me set up my ads and then like really showed me that like, hey, this works and trust the system, trust the process and get going. So, um, So I, yeah, I do appreciate the support there. And then also the, the Slack has been great, the Slack and the WhatsApp, just having like, being able to go with questions like throughout the week. You know, we have our call on Thursday, which has been great. If I have something that's not as pressing, um, then I can, you know, ask it on the call and like either you or Paulo, super great, and, um, giving me support on that. And then also you know, just in the, in our group chats, like something comes up, I'm like, hey, why is this ad getting rejected? And then being able to get instant feedback on that, like, because everyone in the group is running campaigns. So it's like, hey, you know, my lead form got rejected because of this question. So change it to this. It's like, okay, cool. Now I can, now I'm off to the races.

Yeah, for sure. Um, what has changed in your I guess, personal life on, I think, how you go about the business now that, you know, it's kind of more systemized where we're more efficient with the ROI since we're marketing on Facebook, whereas before you were having to do mailers, cold calling, all of that complex moving parts. What has that done in your personal life? And then have you had like any like mindset shifts when it comes to kind of being in wholesale?

Yeah, I definitely have. I mean, really over the past like month, I feel like kind of my hope for the future of the business is like maybe I have a, like a light again. There's like a light at the end of the tunnel. Yeah. Because when you have all these different marketing channels running, they're all like super expensive and they're all getting even more expensive. Like You know, it's tough to get your, your cost or your, um, uh, average profit per deal up, but you know, the marketing costs can continue to rise and just squeeze you more and more. So I definitely saw that happening. Um, just stuff getting more expensive. And I remember thinking multiple times, like, I don't even know if I want to do this for much longer. Like trying to think of, trying to think of other, other opportunities, like I remember going to freaking ChatGPT, like, based off, you know, my current experience with things, is there anything else I could do right now? Um, so yeah, I mean, since like learning the skill or owning, um, this skill, it's kind of given me hope. Like, all right, if I can, if you're reversing the engineer, the numbers, like if I spend this much and my sales process is dialed in. Then I can do this much in revenue. And if I can do this much in revenue, then I'm good. Like, I don't have to constantly worry about, oh, well, you know, this channel is performing better, so I'm going to move this budget over here and pull this lever. And, you know, on top of that, a million different KPIs to track. So it's like, it's made things way more simple. And yeah, kind of given me it has like opened my mindset to, I don't know, I'm a little more excited about the business now than I was before. I was kind of getting a little doom and gloom.

Yeah, it's funny because I went through the exact same thing. I think it was late last year where I kind of was looking at all my conversions, KPIs, took me like 2 and a half years to track my KPIs, and that was like one of the worst mistakes like I've done. Um, but in December of last year is when I took a look into my business and I was okay, I've made like millions of dollars. I'm like, where's my money? And of course, like, as you start the business, you are very green. Like, you don't know how to be a business owner. You make mistakes and you're going to keep on making mistakes. But in the beginning, I was making like all this money and I'm like, okay, well, where's my money? Right? So it kind of made me kind of look into it and be like, okay, what's the biggest bottleneck that I need to fix? And then looking at the channels is like, okay, my best channel is giving me like a 4.5, which was PPC. And then I spent all this extra money, I think over $120,000 over 2024 on stuff that gave me like a 1 to 2x. And I'm like, I don't like this. And then reading the $100 Million Leads book, when Hermosillo talks about when he figured out how to run Facebook ads, that's when it sparked my idea because I already had agencies that were running my Facebook stuff and I got like a 2x, but I would see the ads that were running and I'm like, this doesn't seem too hard to learn. So I paid one of my friends that worked at Facebook and then She kind of taught me the rundown on how it works, and then I just went to town and started testing like a bunch of different ads, and I started having success pretty quick. And then as I closed like the first couple deals, I was like, damn, like this is good, because now we're like at a 10x, you know, and we're spending probably like $10K, less than $10K a month, if not. I think we've made probably like over $400 to $500. And now we're doubling down even more on Facebook. So what it did for my business, it's crazy. And I just— getting like a 4x, like, I don't think— I think we work way too hard to just get a 4x, right? We want at least like a 10x, 12x, 13x. Because if you simplify the business and you don't have this huge like operation that's like bloated, uh, you end up making way more money than just like spending over multiple channels. And you can get very good at just one channel and you end up making way more money. So that's what sparked this whole idea of coaching because I, I never wanted to get into coaching because I was like, okay, what value can I sort of like provide? But after paying like everyone And then learning how to do this, I saw like a big gap in the market because everyone's doing the exact same thing when it comes to like hiring agencies and stuff. And I'm like, okay, let's flip this on its head and be like, okay, how can we become more efficient? Because as you said, you know, the cost per deal, you can only increase it by so much, but the cost, the cost per contract, you can decrease that by having like a good ad, especially on inbound. And social media with Facebook, it's interactive. So the better that your ad is, the lower that your cost is going to be because it's better than something else and you can make changes way quicker. But then we also talked about the sales process and we kind of taught you a little bit on our process with Novations and stuff. And I know that you implemented them. Sorry, crushing that about with those. Can you talk about that a little bit?

Yeah. That's one of the keys to the success I started seeing early on since starting the Facebook ads is implementing Novations. I mean, before joining the program and like talking with you about Novations, like I knew what it was. I've seen gurus talk about it, whatever. Again, another, another thing I was like, ah, it's too, too complicated, too many moving parts. Like I'd rather just stick to what's simple and what I know works. And then I saw you having massive success with it. Like when you pair the Facebook ads with knowing the Novation process, I mean, your ROI can just, can be exponential. So I went from, now I have not closed one yet, But I went from like having no desire to do it whatsoever to within a couple months we have 3 Novations active on the MLS right now and then 2 that should be next week with I think 3 of those from Facebook. So, I mean, without talking to you about that, I mean, I probably would have been still like scouring for these low-hanging fruit wholesale deals.

So once everything closes, what do you think your average profit per deal was? And what do you think it's going to be now? Now that you implement Innovations?

My profit per deal, it's being in these smaller Midwest cities, it's, I've never been able to get it over like $10K per deal. Implementing Innovations and doing it like nationwide, basically. I think that, um, within the next— once these close, like, you know, let's give it 60 days, I think my average deal size will probably be $15,000 to $20,000. And then maybe by the end of the year could get that up to $25,000, but we'll see.

Yeah, that's crazy because if you double your LTV and then you're decreasing your cost per acquisition, if you spend the same amount of money, you're pretty much like doubling your business, which it all comes down to the bottom line, right? It's all extra profit because you became more efficient. So, you know, when people come into the program, yeah, like the main thing that we help with is marketing, but like I said, like I've invested so much money in this extra stuff that we can just help you implement the different things. If it's like sales process, KPIs, hiring, onboarding, different things. And I think that as long as you are— you have access to like a ton of resources that we can help with. And for you, I mean, you've implemented a ton of those things and, you know, if you've made crazy improvements, so I'm very proud of you. And you know, I love that you just keep on crushing, just getting all these deals, right? What do you think, why do you think that most wholesalers fail?

Shoot, I mean, there's endless reasons why. I think, well, newer wholesalers probably fail because they don't, or they underestimate the, I guess, the amount of activity that it actually takes to number one, generate a lead and then generate enough leads to close a deal. Like most of the time, your first 3, 4, 5, 10 leads, like most likely aren't going to be a deal unless you're insanely lucky. And if your first lead that comes in is a deal, then you should probably go to the casino and start playing blackjack or something. But, um, so I think that's part of it is underestimating the amount of activity that it takes to generate a deal because you are getting a pretty— most of the time getting a pretty massive payout. Um, and you can't just, you know, cold call for 2 hours and expect someone to be willing to sell it, you know, 50 cents on the dollar. So, um, and then like more experienced, um, wholesalers and business owners. I think probably one of the big reasons is just overinflated teams and spending way too much on marketing, ROI going down month over month, which is what was happening to me. And yeah, I mean, if I didn't make a change, like, I don't know if I'd still be doing this, to be honest.

Yeah. Yeah. I think that getting your first couple deals is the hardest and then when you get those deals, you, I think you just need to reinvest that into like more coaching to do things better. And then that way you have a blueprint. So that's why I'm huge like on coaching. I've invested a lot of money in coaching. It's always given me an ROI. But yeah, just kind of having a game plan and system where everything just is more efficient is super important. But What do you think has been, what do you think has helped you the most with our coaching?

Um, number one, implementing the Novation strategy. Um, I had a ton of questions about it at first and kind of getting over that hump of like not looking at it as this huge scary thing, I guess, that's going to like take a ton of work and, you know, people aren't gonna go for it and whatever. Getting over that, um, so that's been huge. And then, yeah, like I said, just the, the constant, um, support in our group chats. Like, if I have something, um, that's going wrong or I need troubleshooting, then I have people that I can reach out to that you know, we're all doing the same thing, have the same goal. So we can look at other people's accounts and be like, hey, this is what's working, this is what's not. And we can, you know, bounce ideas off each other. So that's probably been the most beneficial for me for sure. Yeah.

Because I think it only took like 2 calls for us to go over the Novation program, the Novation kind of like strategy and you nailed it. What do you think, like, What skills do you think you have that make you really good at this?

Um, shoot, I don't know. I mean, I'm not, I'm really not great at sales. Um, I'm not, uh, wouldn't say I'm a great CEO, business owner. I don't know. I, um, I think that, I mean, if I see something that works, like I'm going to implement it as fast as I can. And I don't know, I think I have a pretty high risk tolerance. Not that I'm like, you know, going to go out and take on a bunch of debt, but it's like, I mean, shoot, I kind of threw away all my marketing as I'm like, hey, I got a little success with this. I see that it's working. You know, let me throw this away and, and go all in on this. So, um, but other than that, I mean, I don't know. I feel like I don't have any like special skills. Like I'm not some sales ninja or whatever. I just, I wanted to do this. So, you know, there's a pretty, pretty clear steps and instructions on how to get started and how to have success. And you know, there's tons of people that already know how to do it, so you don't really need to be.

No need to reinvent the wheel.

Yeah, you don't need to reinvent the wheel or be some, you know, freaking high IQ like Alex Hormozi type dude. You just, just follow, you know, what other people are doing to see success and, and do it enough times.

Follow the plan. Yeah, I think for you, just like we could sum it up, it's just like taking action and then having a plan and just follow through. And then just showing, just keep on showing up and doing it because I think you're kind of like my ideal client that they just come in, they do the work, they show up, and they just keep on doing it and taking action. I feel like a lot of people have like limited beliefs where I feel like the mental attitude is very important because if you don't believe that you can do something, you're always going to be shooting yourself in the foot. But if you have that mentality like, hey, I'm gonna go out here and just try my best and do it, then if everyone's having success, why not you, right? I mean, we're nothing special. Like, you know, I consider myself the same. Like, I'm nothing special. I just think that what I do very well is like I take action pretty quick and then I have a disproportionate amount of belief in myself because It comes indirectly just from just like having like doubt and fear and stuff where when I feel those things, it's like, okay, let me just get to work and do the thing. And I think it's okay to be, to have, to have doubts and, you know, to be afraid, but you need to take action on those things and then just negate that with like extra volume and extra work and, you know, just putting in that extra time because if you do that, consistently enough, you're gonna have success no matter what. There's no, there's no, there's no, there's no way that over a long time horizon you keep on trying and you don't win, right?

Yeah, exactly.

So I think that's how I would kind of break it down. But if you would describe our program in one sentence, how would you describe it?

One sentence. Um, Hmm. I don't want to be corny and be like life-changing or something. I don't know. Let me think of something more practical. Um, I guess that would be it. Practical and applicable. Yep.

Practical. I like that.

It's not like a bunch of motivational fluff, like, you know, the videos about how to have a sales mindset. Like, it's, it's like, no, this is what you do. To get leads in the door and here's how you can increase your ROI and just follow the instructions and see results, you know.

Follow a plan. Mm-hmm. Would you recommend our program to someone else?

Definitely. Why?

What do you think makes us different than some of the other stuff that's out there?

Um, I mean, I've been a part of multiple programs and courses and I mean, a lot of them, you know, there's some that are like, it's a bunch of fluff and it's about, um, all this motivational stuff. And I mean, that's important in, for certain case scenarios, but not when you're, you know, really trying to like getting in the weeds of. Building a business, trying to, um, get an ROI. So, um, yeah, I like that it's everything in there. It's super simple to follow. Like everything is very, um, step by step with support along the way. And it's not like, uh, oh, here, you know, pay me $12 grand and I'm going to hop on a Zoom call with you once a week and do a Q&A. Like I've been a part of those and it's like, It's honestly ridiculous what coaches can get away with. But it has been, yeah, it's been well worth it. I mean, I've spent more on agencies in a month than on this program, and I've seen zero results with these agencies. And I've, you know, got immediate results with the program.

So Yeah, that's huge. So I think, what is your goal now? Like how big do you want to scale? What's your like your 6-month goal?

6-month goal, really just keep like a small team, you know, don't get too, don't get too excited, try to, you know, hire people and scale marketing like crazy. Like, just keep the same team, um, and then really just increase profitability. That's because that's been my, um, my, uh, the weak point in my business for so long is like just these cycles where one month is amazing, feel on top of the world, and then the next month I'm like, yeah, I don't even know how I'm going to, um, how I'm going to pay these people. So increase my profitability. And I would say, um, you know, as I'm moving towards, like I shut off all these marketing channels going all in on Facebook. Um, I really want to get to like 10, 15 leads a day. And then if I can get to within 6 months, 10 to 12 contracts a month, Facebook alone, then that would be incredible. So that's kind of what I'm shooting for. Yeah.

And it's very doable. As these deals close, we just need to make a marketing plan because if we know our conversions with, uh, like lead to contract and average profit per deal and success rate, now we know what we need to spend in order to give the team the opportunities to talk to these leads and close them. So it just becomes like a plan, and once you set it in place, I mean, you just need to stick to the plan and follow it. And now you know like what you're shooting for instead of just throwing spaghetti at the wall and hoping that something sticks, right?

Yeah.

Okay, Riley. Thank you so much for your time, man.

Yeah, thank you, bro. It was awesome. Thanks for having me on.

Of course. Thank you so much, brother.

See you, man.