How to LEGALLY Print Money Wholesaling Real Estate

All right guys, so last month we made a little over $225,000 wholesaling real estate without cold calling, texting, or with a big bloated team. And today I'm going to go over how we did it and why most people always struggle. And it basically comes down to 3 things: 1 is marketing, 2 people, and 3 would be systems. So with that being said, let's get on with the video. So what is the number one thing that you need? So you've heard, you've heard me talk about this before, but what you need, the most important thing is a high profitable inbound marketing channel. Now you already know that we do great with Facebook ads, but basically we are able to get leads for $30 and our conversions, we basically get one contract for every 20 to 25 leads. So if you do the math, um, 30 times $20, $25, call it $800, call it like $1,000 it costs us to get a deal. And we make on average anywhere from $17,000 to $22,000 on average per deal. And we do that with good creatives, good ad copy, and good headline. Um, I've talked on the channel before on how we do that, so I'll link that video over here at the end of this video. But if you want to know more information on how we do it, um, book a call with me on Instagram and watch that video. That way you know how. But it's possible to get low-cost leads that are high quality, and we're doing it. So here's kind of like the proof. Um, the second thing will be you need to have a replicable sales process. And what I mean by that is a lot of people think that sales is a God-given talent, but I would disagree. I think anyone can learn sales as long as they understand the fundamentals, the psychology, and as long as you train your team properly. But to kind of walk you through our process, basically the lead comes in and then my team is very small. So we have a 5-person team and 3 are on the acquisitions. We have 2 lead managers or appointment setters, however you want to call them. but basically as soon as the lead comes in, we start the intro call. And then basically they set expectations, right? You know, kind of what the goal is with the conversation, with a call. And then we can ask, hey, what about our ad made you want to look into this a little bit further? So we don't want to sound too salesy, but also we're curious with our tonality. And then basically we want to find out either Are they urgent and ready to sell? Yes or no? If they are, uh, we want to know about their timeline. Okay, so how soon do they want to sell? What is the condition of the property? Are there any possible roadblocks, anything they need to figure out before making a decision? Um, 4, what's the motivation? Like, why are they looking to sell right now? Do we think we're going to be a good fit? Yes or no? Are they distressed or are they just kind of looking for offers, right? And then we also ask kind of about the price. What is the price they're looking to get? And then as long as they are urgent and motivated, then we will, we will make it a qualified lead and set it with the appointment. But if not, if not, we'll let them know, okay, we're not a good fit. And we'll try to refer them to an agent or move them up to the follow-up inquiry on our CRM and start the drip sequence. But once we know that it's a qualified lead, then basically my lead manager is going to make an appointment with my closer and they'll let them know what the next steps will be. Uh, so then my closer is going to reach out to the seller, let them know, hey, are you going to be available at this time so that we can go over the offer for your property? Uh, but basically after that is when we get into the second call, uh, which we call the reprocess call. So basically what you don't want is for your lead manager or setter to build more rapport than with your actual closer, because your closer is going to be the one that's going to be negotiating with the seller, and you got to give them the chance and opportunity to build as much trust as possible so that you can make something happen, right? But once they answer the phone, we kind of set the expectations. And then I have this thing here called the TARP where we basically let 'em know, okay, what's the timeline? Like how long it's gonna take the phone call? What's the agenda? Basically like what we're gonna cover on the phone call. And then what's basically the result? So the result is if we're able to sell, that basically we're gonna give you an offer. And then for the P, permission. So we give them permission to say no, right? So we tell them like, hey, if at any— whenever we give you the offer, if you don't like what you hear, just let me know. You're not going to hurt our feelings, but our job is to kind of give you the best solutions and options for you so that you can make a confident yes or no decision. But once he sets the expectations, he basically sets the stage, kind of going over this stuff that I just covered. And then basically We kind of let them know like, hey, some of the things that I may ask you may sound repetitive, but my goal is to get as much information as possible so that I get it, get everything accurate so that I can give you the best offer and I fully understand your situation. But then he kind of goes into like any roadblocks. So if there's anything that came up on the previous call with the lead manager that they would maybe need to figure out, maybe they don't know where they would move yet, or maybe they need to talk to a husband or whatever, we try to get them on this call together because we don't want the, I need to talk to my partner or my husband or my wife. We want them on the call at the same time and we want to basically know the next steps moving forward and if they're able to commit. And then his job is to dive deeper into the motivation and finding the bunnies into like, okay, what's making them want to sell? And what does selling gonna help those— what is the selling the home going to help them accomplish, right? So that's what we need to figure out. And we need to figure out how much money they need in their pocket after all is said and done in order to do that, right? Um, then we also talk about like influencers. I kind of talked about that as well. Uh, but if there's anyone that they need to talk to when it comes to selling Okay, maybe a family member, realtor, lawyer, whatever. But we basically try to preframe those questions and know the answers to those questions. Because what we don't want is to give out an offer and we don't want to hear like, I need to think about it. Because that's usually a smokescreen. So we try to set up all the right foundations and like heavy work in the beginning so that we don't have to deal with like any smokescreen or, you know, any, any of those things, right? And then basically we can ask for the price and then we kind of let them know how we work. We're a financial, I'm sorry, we're an investment company. We wanna make money, but our job is to find a win-win solution for you. But once he goes over that, then we basically set up the offer call. And then whenever we start the offer call, we kind of go over the TARP again, let them know how long the phone call's going to take, uh, the agenda is, uh, what the result will be, and the permission to say no. Because what nobody else hates— like, people hate, like, salespeople because you don't know, like, how long phone calls are going to take. Or if, let's say, you're a dealer at a dealership and, you know, you don't know what they're doing. So sellers not knowing what's going on can be a deal killer. So we do these things in order to alleviate any anxiety, and they know what's going on at every point of the sales process. But basically, after they start the offer call, they set the expectations once again, where we let them know kind of like what we're going to cover, let them know how much the property qualified for. And then if do they do decide to take the offer, what those next steps would be. And then basically we give out the offer and tell them like, hey, this is what the property qualified for. Like I said, you don't have to pay any closing costs, commissions, repairs. The only thing they're responsible for would be if you have any liens or mortgages. And the other thing would be the property taxes. But besides that, there's no closing cost for you. So with that being said, Mr. Seller, the property qualified for whatever amount. So then it's when we usually get into the negotiating portion of the sales process. So basically if we give out the offer and it's accepted, then basically we send over DocuSign and have it signed. But usually a lot of the times we get a, the price is too low. So we'll try to get to more like price rebuttals where we try to go up and try to just kind of negotiate so that we can meet somewhere in the middle. But if these two rebuttals are not accepted, then basically we will pitch our MLS slash Novation pitch where we list on the open market and try to get them an end buyer to get them the price that they want. They don't have to pay the closing costs, the commissions, or any of those things. But once that is accepted, if that's accepted, it goes over to the— send over the DocuSign to get that contract signed. And if it doesn't get accepted, then we move that seller to follow up. But basically here, you're still 90% there. Now, the important thing is getting that contract signed. So a lot of people, I know that they will send out contracts without reviewing them for the seller. For us, we've done over 300 deals. And on 99% of the contracts, we go over the contract with them together. 'Cause what we don't want is for them to have to send it to a lawyer or whatever. So we want to explain the contract as, as, as good as possible. So basically we review it with the seller. We make sure like all the decision makers are present, and then we kind of like set the expectations of the next steps moving forward. But once we get that under contract, then we will start our dispute process. We send the contract back to the title company and we open title and we start our selling process. Pretty much. And also what do you need to do? So this is a copy of our scorecard. So when I was talking about like hiring and people and systems, you basically need to lead your team like a sports team, right? Where you need to hold them accountable to see, okay, what is the goal? How many appointments you're gonna set? How many offers are you gonna send out? Because in the end, it's all about numbers. Wholesaling is a sales and marketing game. And the thing that we sell is basically real estate. So you got to be a pro and you got to be able to look into the numbers and hold the team accountable and understand them. And I'm sorry, teach them so they can understand how the numbers play a role when it comes to the income that they want to make and to getting to the goal that we need to hit. Right. So for example, Um, Brian and Monica, they are my lead managers. Uh, you can see it here, but this number is basically the appointments that they set. So they have a quota that they need to hit, um, and this is kind of on a weekly basis. And then basically Bini, who's my closer, uh, he has his appointments made here and then the offers given. So usually whenever out of 4 offers, we're gonna get 1 deal under contract. So our closing ratio from appointment to offer given, it's around 25%. Uh, so we know that on average every 4 offers we need to get a contract. So if that's not happening, then I can look at this and be like, okay, well, what's going on? Then we can review the calls and see if the closer missed any steps in any of the sales process. And that's why it's super important to have a system that you can replicate so that you know that they are not cutting anything with the process because every step of the process is super important and it basically gonna have an effect on your bottom line, right? But for example, this is like one of the weeks we got a deal for $20K. And then this was the other week where we got 2 deals for a projected profit of $35K, but knowing how those numbers make sense when it comes to, okay, how many leads do we need? How many appointments do we need to set? How many offers do we need to send out? You need to be tracking those things because that's how you scale and grow. You can't lead a team without having a goal in mind. So that's super important. The other thing is you need to reverse engineer your revenue goal. I made a video kind of talking about this, but basically you can't get free deals. I mean, maybe you will from referrals every once in a while, but what we need is like something that can be duplicated and replicated in a system where if we know we put X amount in, we get X amount out. So I made this calculator where, for example, if you want to make $200K a month and your average deal size is $22,500, you have a success rate of 70%, meaning that if you contract 10, 7 will close. Basically, you can reverse engineer how much money you need to spend per month in order to achieve the revenue goal. Um, and then it takes it into consideration, okay, how— what's my cost per lead? How many leads do I need to get a contract? And then you could reverse engineer these things, um, with the scorecard when it comes to appointment set and offers given so that you get as many deals as you, as you can in order to achieve this goal, taking into account the success rate and the average deal size. And then of course there's underwriting, there's negotiating, there's like the offers given, um, where I'll talk about it in another video, but this is kind of like the brief overview of how it works with the marketing and sales process. So if you are someone that doesn't have any systems or processes or maybe you are struggling and you're not getting the results that you want and you want to see if we can implement our marketing system into your business, then you can book a call, like I said, on my Instagram. And if not, you just— if you find anything from this valuable that you can apply into your business, you can send me a DM, any question that you may have. But that's all I have for the video. Um, I'll link that other video where I explain our marketing process over here. And with that being said, I'll catch you on the next one.