made $145,000 in 30 days with real estate (here's how)

A real estate wholesaler explains how they made $145,000 in 30 days using arbitrage, a method where you control a property without owning it. They spend $8k to $10k monthly on Facebook ads targeting motivated sellers, then present two offers: a cash deal or a novation contract that lets you assign the deal to another buyer.
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This property right here made me $145,000 in just 30 days, and I didn't have to own the property. I didn't have to flip the property. I wasn't even the lender on the property. What we did is something that's called the Real Estate Arbitrage Method, and this works anywhere in the country. And I'm going to show you exactly how you can get opportunities just like this one that are ready to close that you can just sell for max value, and I'm going to break it down shortly. Now, a lot of people think that you need to flip houses in order to make six figures per deal. But the reality of things is, like, just like Airbnb doesn't own any properties, or Uber, they don't know any cars, we don't need to own the house. The only thing that we are doing, we're just flipping the opportunity. So we're controlling the opportunity, and that's exactly what the real estate arbitrage method is. Now, just to get an idea, this property, this is the one that made us all that money. As you can see, pretty nice property. You know, we didn't have to do any repairs or anything to it. All we had to do was put up good photos and find a buyer for it, right? Now, how exactly can you get deals like this? Now, you gotta understand that with this method, it's different than traditional wholesaling because we are still getting, you know, sellers. So it's the seller, you, and then your job is to find a buyer for max value. Now Before we talk to these people, we need to get them. Now, the reason why I love Facebook, because it's the only platform where you can directly call out specific pain points that would, you know, attract motivated sellers. Meaning you can do ads that target divorce, foreclosure, inheritance, downsizing, moving, and you just get them to raise their hand. And as you can see, this is our campaign. From the last 30 days, we contract one in 25 leads. So we don't need to spend a huge amount a month. We spend anywhere from $8,000 to $10,000 per month, and we generate anywhere from $80,000 to over $100,000 per month while keeping our profit margins very, very lean. So I have a team and they can do like everything on my behalf. All I need to do is be in charge of the marketing. Now, when it comes to any business, there's only 3 things that matter most. One is gonna be your cost of acquisition, which is the CAC. Number two is the LTV, lifetime value, or average profit per deal in our case. And then number three is going to be the cash conversion cycle. Now, marketing is 50% and sales is the other 50%. A lot of people blame the marketing, but if their sales process is not aligned, you're not gonna be able to get deals. Now, how do you drop your cost per contract? Well, you do it by having great ads. If your ads and your marketing is not good, your cost of acquisition is going to be high. How do you increase your lifetime, you know, gross profit per customer is you have to fix your sales process and you got to have more offers into your business so that you're able to help more people. Now I'll be honest with you, things are way harder now, uh, just the way that the market is. There's a lot of blood in the water. People can't pay their mortgage, the interest rates are pretty high, and we've been in inflation for, you know, 3, 4 years, right? We've been in a recession. So all these raising costs are affecting us. You see more inventory in the market, there's more competition on the market, meaning if a buyer is going to buy a house, they have way more options to choose from. So if you understand these 3 things, then is when you're going to be able to make more money. The way that our approach is different is once you get the leads from your ads is we don't try to hard sell them. What we do is we consult them and we figure out exactly what's going on in their life, their motivation, their timeline, any roadblocks, influencers, and that's exactly how we earn the trust and structure deals that actually work. And if you do this, if you treat these people like actual human beings and you focus specifically on the motivation and building the trust where you can just, you know, walk them through their options you're going to get more deals, right? And then all you need to do is do your job and dispose the deals to find a buyer that's willing to pay that. Now, when it comes to the sales process, what is very important is always letting them know exactly what the next step is. So you need to set up the proper expectations, meaning how long the phone call's gonna take, what you're gonna go over, what's the result of the phone call, and do they have the permission to say no if it doesn't work. But basically, we have a 3-step process. I've done a video on this. We have the intro, which we figured out what made them reach out. If we think it's a good fit, meaning if they're motivated and they are urgent and ready to sell, then we're going to set up an appointment, whether it's going to be in person or over the phone. There, the job of our closer is basically just to earn more trust and dive deeper into the motivation so that we can earn that rapport, right? Because if we're going to negotiate, we gotta earn that trust. Because if we don't earn that trust, it's very easy for them to say no or for us to be, you know, ghosted. So after we set up the appointment call, we're going to set up the offer call. And in the offer call, we let them know exactly what our offer is going to be, how they can work with us, and the future, the next steps in working together. But basically, whenever a lead comes in and we're going to give them an offer We're gonna give them two offers, the cash offer. Okay, that's supposed to say cash. And then the other one is going to be the novation offer, right? So a novation is basically you market the property on the open market or anywhere that you can find a buyer and you set up the expectation that the timeline in closing is not gonna be as short as 30 days with a traditional wholesale deal, but that we're going to basically find a buyer that's, you know, able to pay more. And once we earn the trust, it's very easy to navigate this way. And the cool thing is that you can plug this into any market in the United States. Just the thing that I recommend is you need to pick a market that has low days on market, meaning if properties are selling in less than 3 months, I think that's good for this market. But anything above that, that That means that you're going to have way more competition in terms of other properties around. And you want to have a median house price that's above $250,000. That way you can plug innovation, because with a cash offer, let's say that you are $100,000, and if the property is worth $200,000, you need to be at $100,000. And most sellers are not going to give a 50% discount. But with an innovation, you could increase your purchase price by 15-20%, right? So if you can get it at like $120,000 to $125,000, you're able to sell it for like $160,000. I mean, you're still making $20K where you wouldn't be able to move it, you know, if you only offered cash. For this specific property, we got it for $370,000 and the property was worth around $500,000 to $525,000. Now you want, you want to be able to still buy the property, um, and then once you have a strong market, I mean, even if you don't end up making $100,000, you can make $30K, $40K, $50K. But what I did was very good, is like I built a really good rapport with the seller. So for him, his main thing was he just wanted to be sure that the property was going to close. So I told him, okay, don't worry, we'll close in 30 days. Would you allow me to market this property? I'll let you know exactly who would be coming, and you know, um, if I can find the buyer before then, I'm going to do that. Is that okay with you? And he said yes. So all I had to do was put the property in the contract. I built that really, really good rapport, and I earned earned his trust where I think— where I told him exactly where I need to be at to have a margin because I didn't know if it was going to sell for, you know, $80,000, $50,000, whatever, um, because of the way that the market is, right? But once I figured out that his main thing was assurance and security, then, you know, I just told him exactly how we work and how we can get there. So this works in any market, and you can plug in the that you can plug this into your ad account and use these ads that we teach all of our students in any market. And if you can do a nationwide and this will deal anywhere, that'll be huge. And then you don't have to be just married to selling on the MLS. You can still wholesale. You can use InvestorBase, Investor Lift, and Facebook groups and all that stuff, right? So now that things are harder, we just gotta work more. Smart, and it's going to take more effort to move deals. But the cool thing is, if you persevere, once the interest rate's lower, you're going to be able to make more money. So if you are interested in working with us, where we show you exactly how to build this into your business so you don't have to be chasing or doing cold calling or just grinding, book a call down below and see if you qualify. You're going to be doing deals, that way I can help you make more money, but we'll teach you how to run the marketing, how to run the sales process, and how to sell deals. Because remember, the arbitrage economy is here. We create the value, we just don't hope for the value to show up. So I hope this was helpful for you guys, and I'll catch you on the next video. Thanks.
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