How To Make $20,000 Your First Month Wholesaling (Even With No Money)

This is how I would get started with wholesale if I only had $2,000 or less than that. Now, most wholesalers fail not because they're dumb, they fail because they quit before they even start. So your mindset and your attitude has to be on point. And if you are the type of person who figures it out no matter what, then this video is for you. There's no fluff, no shortcuts, but this is just a real plan to your first assignment check. And I don't care if you are brand new to wholesaling or maybe you've been wholesaling for a while, this strategy, you can use it to start getting deals. Now let's get started with the video. Now there's two ways that you usually will start getting deals. One, you already know that I preach on inbound when you market to sellers and they come directly to you, but on this video is going to be on the outbound. So if you don't have a lot of money to invest in marketing, You basically are going to need to hustle and work for it. Now, let's say that you are advanced and you have the money to get to— if you want to get to $20K to $40K per month, you know, $3,000 to $5,000 in ad spend per month can take you there. Because if your average deal size is anywhere from $15,000 to $20,000, you only need 1 to 2 deals per month in order to achieve that. But with inbound leads, instead of you chasing, the leads come to you. And the speed, I would say it's medium because like once you get started, it's pretty quick. But in order to get there, first you need to make some money, put some money in the bank. And this is best for scaling and leverage because once you figure out how much you need in order to get a deal, then it's just a reverse engineering exercise and you basically go from there. Now let's talk about the outbound and the hustling approach, right? You have $2,000 with this method. You don't have to do too much stuff or spend any money. I'd rather you keep that money and let that grow. But the main difference is instead of the leads coming to you, you're going to have to work and chase for them. So stick to the end and watch the entire presentation. That way you can start getting some deals. Now, the cool thing with this is that it's fast because with the process I'm going to show you, you can start talking to motivated sellers from the get-go. And this is basically best for if you want to keep expenses low. And let's say maybe just you and you have a small team, you can train your team in order to do this. Now, what are we going to do? I'm sure you're familiar with all the websites like PropStream, BatchLeads, all that stuff that lets you pull lists and manually cold call. I do not like doing that. What I like to do is go directly where the motivation is at. So in order to do that, we're going to pull courthouse foreclosure records. And to do that, I'm going to show you an example of how we do it. Now on here, I am on my— let me see if this is recording. Now on here, I'm on my county's, um, website. You can find it based on your county depending on where you're at. So you got to know what the name is, and then you got to look for a website like this. You can type foreclosures in X and X, um, county. So what I'll do is you will click on here, click on foreclosures, and then you want to get the most accurate data. Now the reason why I don't like Batch Leads or PropStream is because this data is usually not updated. So So when it comes to pulling courthouse data, whoever gets the data first is going to be the one who wins. So you got to be super mindful of this. Now it's going to take some work to get this information. So bear with me on how we do it. So you're going to search for them and then you can start seeing like all the notices, right? So here it's by date and then the sale date, and then you have the document number. So what do you want to do is do it where you already know something is going to foreclose, right? So for example, um, this is when it was recorded and then this is when the sale is. So for example, if something was going to foreclose in a month from now— so right now it's August 1st— I will click on this record and then I would open up the record and try to find the address. So we come over here And then you can see here, 2023— 2021, Esperanza Avenue in Mission. So this was just updated today. And basically, if you have no money for skip tracing, what I would do is I would go to truepeoplesearch.com. And I would put this address on True People Search. So 2021 Esperanza Avenue in Mission, you have it right here. You're going to search for it and you're basically going to get some of the records of the person that lives there, right? So let's say is this one This guy, Eduardo. Click on there and basically it's going to give you the contact information. Now, once you have it, you just got to be sure that it's kind of like the right address. You may not get it at the first try, but you got to keep trying these other phone numbers. But once you have the phone number, your approach is going to be a little bit different, right? So first we pull it from your county. and then we skip trace it using True People Search or Fast People Search. You're trying to look for the owners or relatives, and what you want to do is call them and text them. Now on here, it's not going to be your typical I buy houses for cash script. Here you need to text like a human and talk to them like a human. Tonality is huge. You got to remember that these people are going through stuff where they may be ashamed or just kind of like the whole pressure, just having the foreclosure can be very much for some sellers. So you gotta have empathy for them and you gotta change your whole approach. You can't just offer the standard, "Hey, I'll buy your house for cash," right? Now, let's say you were to cold call them. What we used to do would be like, "Hey, my name is so-and-so. I am with the county and I'm a property specialist. And we actually help people that are dealing with predatory loans or banks." Are you dealing with anything like this right now? And then just try to try and get the conversation going. Now you do not want to sound too salesy. You basically just want to walk them through their options. And typically they have 5 to 6 options, which I'll go over right now. But let's say that you were sending them a text. You can say something like this. Hey, seller name, this is whatever. I noticed your lender may be putting some pressure on you. I've helped other people in similar situations and wanted to see if you're open to discussing some options to stop the foreclosure process. I'm here to help. And usually their options, they have like 4 or 5. Number 1 is basically, okay, hey, do you have the money to pay whatever is owed on the missed payments? That's one of them, which is called a reinstatement. Number 2, it's a loan modification. Can you talk to your lender and Can they give you a loan modification so that the payments maybe can get added to the loan and all that stuff? Now with this, with a loan modification, basically they still have to have good credit and qualify for it. So some people may say that they have it figured out, but a lot of the times they may not get approved for the loan modification and they are still on the hook to, um, losing the house. Number 3 is they can probably list it with an agent, but we gotta let them know like, hey, the traditional sales process with an agent, it's going to take anywhere from 60 to 90 days. And if you wanted to sell fast, you need to make sure that this property is clean. Do you have the timeline to do that? No. Okay, then number 4 is basically you could take over the payments and do like a subject to, subject to, where you pay the arrears and you get it going, and then that can buy you some time, right? Now number 5 is you offer to buy for cash, and then You always want to present your cash offer as the last resource because they want to be understood and they want to know, like, they want to feel like you're actually caring for them, right? And when you're offering the cash, kind of do let them know, like, hey, I mean, I do have this other option available. I mean, we actually can purchase this property. Um, how much would you need to net in your pocket in order to move forward? And of course, you would need to know how much they owe, What are the arrears that they owe? And then basically, what's the ARV of the property? How much can you assign it for? And all that stuff. And I'll talk about doing assignments with buyers because if you are new, you need to have that basically set up from the beginning. But basically, okay, we already pulled the data, we already skip traced, and we are already reaching out to them, right? Like I said, tonality is huge here. And then what you want to do is you want to follow up if they respond. Like, some people may be aggressive, but don't take it personally. Like I said, they are going through a lot of things, so you gotta be able to not care and still be able to, like, follow up. Because a lot of people, like, I've seen, like, they may say F you or whatever, but towards the end, they still need a solution, and your solution may be better than them losing the house. So you got to be able to follow up and book appointments with these people and actually care. You can do it over the phone, or you can do the appointments in person. I recommend in person because you're able to build that trust and rapport to be able to offer them your solution. Now, what if you call them and text them and they don't answer? Well, you can go to the house, you can door knock it, and then usually you can see, okay, have they put a notice, right? Usually the bank will send someone to basically knock on the door and see if they're home. But a lot of times they'll put something on the door and then you can see, okay, is the grass overgrown? Because we want to know, are they— is it vacant or are they living at the property? But if you door knock, kind of do the same script, like, hey, I noticed your lender was giving you some trouble. I was just here trying to see if I could help you with anything. The other thing that you could do is if you have your iPhone, a personalized video text can work very well where you basically You are a human being. You can do something like, hey, Mr. Homeowner, I sent you a text. I noticed here that the bank was giving you some grief. I was just— wanted to see if I could walk you through some options to stop the foreclosure. Let me know if you want to talk. But usually that will get people going. And then if you door knock, you can knock the neighbors for insight and see if they know something about the property. Maybe they know a relative, family member, whatever, and they may know something about the property. You can also search for the obituaries to find relatives because they may be deceased. So you gotta be able to do what other people are not willing to do, right? And then once you're at the house, you can leave them like a flyer, like, hey, call me, I can help you, anything like those sort of things. It's going to work. You can leave a flyer with the options, your name, contact information, and how you can basically help them. Now, if you go into an appointment, remember you need to have your contract ready. There's tons of them on YouTube on how to fill one out. But let's say that you get the property under contract. What you're going to need is the authorization form from the bank for them to disclose information, because we're going to need to reach out to the lender and the attorney and let them know that you're under contract to purchase the property. So what we want to do is be able to postpone the auction and basically get them from that auction period, right? But once you have those two things, you want to connect with a title company that is good at actually doing foreclosures. So what I would do is I would call your local title companies and ask them like, hey, do you deal with foreclosures? Because I get a lot of deals that are under foreclosure and basically we purchase these properties and we help them. So you got to be sure that the department is on top of it. And they're not gonna be wasting any time. But once you get all 3 things, remember you need to present yourself in a good manner. Like don't wear like a bunch of cologne or like ugly clothes, you know, like a Santa Polo. Have your documents ready and really care for these people 'cause the more that you care, the more breakthrough you're gonna be able to have with them. Now let's talk about kind of what the process looks like, right? So once you have it under contract, call the lender, let 'em know kind of what's going on, that you're looking to purchase the property, that you have the mortgage permission with you, and basically tell 'em that you're wanting to purchase the property and then we want to get a delay in the auction. We're gonna buy some time, right? We wanna postpone the sale a couple weeks and you wanna be able to push it to your buyer list. Which I'm going to talk about right now because it's very important that you have this built out. But basically, once you have something on the contract and you have your relationships built, that's basically how you can start making money with an assignment fee. Now you got to be able to run your numbers, the comps, all that stuff. So how do you find buyers? You know, my favorite strategy is just going over to your local Facebook page for real estate investors You know, like it's if you were in Dallas, Dallas, while we're real estate investors, I'm sure you know what the Facebook groups are for your specific county, but you can pull like some list for buyers. But I just recommend kind of doing the Facebook group and getting to talk to the actual buyer that will potentially, you know, buy your property. And it's very easy to see who's actually doing deals. And the goal here is to have a conversation with the buyer and get a relationship going. You can say something like, hey, I saw you're in so-and-so group and you're doing deals here. I'm actually doing some deals myself. I specialize in foreclosures and we can get some really good deals. Mind if we talk about what you're looking for? You know, something like this, right? Or something like, hey, I'm not trying to blast this to everyone. I only send this to like my beta buyers. So it's someone that I can trust. Do you mind if we have a conversation? Or you can do any of this, like, hey, what kind of deals are you sick of seeing right now? Or you can tell them like, hey, I'm pretty much new, but if I bring you something, would you mind giving a look? And 100%, they will be able to help you. For me, about— even though we wholesale a lot, we— I bought a lot of houses, and I'm not like— I will always talk to someone as long as they send me a deal, and as long as they're nice, like, I don't mind having a conversation with them and kind of tell them, no, let them know like, hey, I'm not an agent, just finding off-market opportunities. Do you mind if we connect? And flippers are always looking for deals, right? Um, but you be got to be sure that you can vet them, right? So what kind of properties are you buying? Look at their profile, see what they're posting about. What is their ideal property? Um, are they mainly using cash or hard money? If they use hard money, takes longer than cash, but they can be pretty quick. So you got to be able to close on time and make sure that everything's set from the get-go. What is your typical closing line? Kind of like all those things, right? Um, and then basically if you were to look like a full circle moment, basically with this strategy, you pull the list like I showed you with the foreclosure and the county and do the all that stuff. You're gonna text them, skip trace them, call them, door knock them, send the videos. Then your goal is to get an appointment and and I'm sure you'll get some properties on the contract that way. You may get a lot of nos, but don't let that discourage you. Get on the contract, you build your buyers list, you can assign the deals. And what I recommend in order for you to fast track to $20K to $40K per month is you start saving some of that money to repeat the process, maybe hire other people that can do it on your behalf, or you can reinvest it in yourself or in marketing and go towards the inbound route, which we basically teach. Now, what is the upgrade path? You know, you're gonna have that hustle, which it's a lot of work, but it can still get you $20, $30, $40K deals, and it's not gonna cost you like any marketing spend. If it does, it's gonna be less than $1,000. But after you do that, you're gonna get your first 10 to $10K deals, which then if you wanna keep on advancing, you can then later on also invest on inbound. So like, you know, we do Facebook ads and we crush. I'll link a video at the end of the video on how we do it. And then you start kind of setting up your team, right? You get a CRM. We use GoHighLevel, which lets you do some automations. And then basically the more deal flow that you get, the more that you're gonna scale, right? And by this point you already have a 5-figure per month business. Because you are actually doing the work and you're doing what most people won't do. Now, after you start getting some traction, there's actually 3 models that I like to talk about, right? So you have the solo empire model where it's just you and you may have a very, very small team. So maybe you can hire an admin to help you do stuff. but with this solo model, you can start putting in like another marketing channel where there's inbound. Let's say you start doing Facebook and then maybe you hire like another VA to start helping you talk to the leads that come in. And then it's basically you doing a lot of the work, right? You may have like a bookkeeper doing your taxes and your accounting, all those things. And then your revenue per month can be anywhere from $20,000 to $80,000 using this strategy. And you only need 1 to 3 deals per month. In order to achieve this. And your operating expenses will be anywhere from $3,000 to $6,000 in most cases. Now depending, depending on where you're at, it may be a little bit more like California, but just because the deal size there, it's way bigger. Or also you can go into the strategic scale model, which kind of comes after this where now you have more money to hire more people and that's how you start growing like a lean team and like a lean machine. Where it's still you and then you still have those two marketing channels that are working, but now you can hire some closers and maybe you have like a dispo person that helps you sell the deals and talk to the buyers. You used to have your bookkeeper and then your revenue per month will be anywhere from $60K to $120K. And this is when you're getting like to the big leagues. And then you only need 3 to 6 deals per month in order to achieve that. And then your expenses are gonna basically keep on increasing because it costs money to get deals. But the better that you are, the more money that you're gonna make. And past that, as you start scaling past your first million, it's probably when you're gonna be in the Freedom Builder where it's you, your admin, you have your marketing channels, one or two that are performing very well. Now you have more closers, a follow-up specialist. You have a person dedicated for despo and doing the transaction coordinator, coordinating when it comes to like talking to the buyers, the title company, all that stuff. And then you may have some admins in here. And then this is when you scale to the $100K to $200K per month, which is kind of where we're at right now. And then deals per month is anywhere from 6 to 10, and the expenses are gonna be a little bit higher. So for us, we sit on the probably like $30K per month in expenses, but anything that we make above that, it's basically free. So that is exactly how I would get started wholesaling real estate if I didn't have money, if I was low on funds, and if I was actually able and willing to work and put in the time in order to get my first deal. Now remember, nothing works unless you do. So like I was saying in the beginning, you gotta be the person that is willing to not take no for an answer and do everything it takes in order to achieve this. Because I mean, you've probably seen me do deals, you've seen your favorite real estate influencers do deals, and if they can do it, if I can do it, So can you. So the sooner that you start believing that, the sooner you're going to get the results. And with this strategy, I know that you're going to be able to get deals, but you got to be able to put in the work. So like I said, if you need help with Facebook, click on this link down below so that we can watch how we do it and what we prefer over the outbound methods. Right now we don't do any of this outbound just because our Facebook and PPC does very well. And for me, it's like, I just want less headache. But this is exactly what I would do. I hope this was valuable, and I hope that you crush it.