The Secret 80-20 Trick Real Estate Wholesalers Use Now

If you're still cold calling and texting in 2025, I got bad news for you, but you're going to be going out of business. But the wholesalers who make the switch to what I call the lazy 80/20 business model are the ones who are crushing it right now. My name is Fidel, and I've done multiple 7 figures wholesaling real estate, and I've never been as profitable as I am right now. Last month, we made over $200,000 in profit with $10,000 in ad spend while working only 3 to 5 hours a week. So in today's video, I'm going to be breaking down the exact lazy model that took my business from $30,000 to $50,000 a month, super stressed and working 24/7, to making over $200,000 a month. So you want to stick around for the video and make sure you subscribe.

Now, you probably got into real estate wholesaling because someone told you that it was so easy, but by now you probably know that it's not as easy as it looks or everyone makes it seem. So I'm going to compare the old way versus the new way. So right now you're probably cold calling and grinding 8 hours a day Maybe you're using paper lead companies and paying $200 to $500 a lead, or maybe it's taking you 80 to 90 leads to land one deal. Or maybe you're managing a ton of VAs doing cold call SMS with people who don't want to talk to you, or maybe your cost per contract is above $3,000. Maybe just like grinding over and over and over and you feel burnt out. I have been there, but there's a better way. And what is the lazy 80/20 way? It starts First, with inbound Facebook leads. So you need to control your marketing where you are getting a lot of leads that cost you very cheap, and then you gotta make as much as you can per deal on that channel. So with us, it cost us— actually cost us less than $30 now, which I'll show you later. And then it takes us 20 to 25 leads to get one contract. And I run a very, very Excuse me. I run a very lean and mean operation with 6 people. I just hired a new sales guy who's doing very well, and our cost per contract is around $1,200, and we make anywhere from $20,000 to $22,000 a deal. And then I work like 8 hours a week on my wholesaling business, and this way is more predictable and scalable. And I'll show you exactly why. So what is the 80/20 breakdown? If you've never heard of it, basically says that 80% of your results come from 20% of your effort. And what is the 20% that matters to me if I want to be able to run a lean and big business? Well, number one, it starts with the marketing channel. I love inbound because the people are coming to you and you're not chasing after them. So with us, we use Facebook ads that target specific pain points. So for us, it's not a generic, Sell your house fast for cash, generic static ads that every agency uses. We make very good ads that call a specific pain point, and our hooks are so good we're able to get leads for $5, $10, even $15. And we call foreclosures, downsizing, moving, vacant properties, problem properties, divorce, any of those pain points that get you the most amount of deals. That's exactly what we do, and we just put the ads in front of the people that would relate to them. And that way we're kind of like virtually door knocking thousands of people a day, and our cost is just very cheap. Number 2 is the proven sales system. So we get a contract for every 4 offers that we send, and we make on average $22,000 per deal because we built a replicable and reputable sales process that gets us sellers to sell the property to us and for us to help them So those two things are one of the most important things. And then number three, I leverage team. So my team is very good. And then my job as a founder and owner is to be able to train them and attract them so that they want to work with me and give them the resources that they need in order to succeed and help them achieve their financial goals. So if someone wants to make $100K a year with me, I lay out the plan and then I make sure that first, number one, they are core value fit. And then they can relate to my mission and the goal for my company. If they do that and they're coachable and trainable, they will win because sales is not God-given, it can be taught. And then the better that you learn it, the more you are able to contract. So a lot of people have this misconception that you either have it or you don't. I disagree, it can be taught. And as long as you follow the process, you'll be able to get deals and I'll break it down shortly. But with a team, you got to give them those resources to get better. And then you as the founder, you need to be there and coach them and train them so they can keep on getting better. So those 3 things are the— is the 20% that gives me the most amount of results. Right now I'm actually in Europe and my team is back home and they're working and I'm talking to them, making sure that they are getting deals. We just got 3 deals last week and People think that you can't scale out of a wholesale operation. For me, like I said, I only work, you know, 8 hours a week max with the wholesaling company, and you can enjoy your life and your business because in the end we build this business to serve our, our, our needs and family and make the money that we want to make. So I feel like a lot of people are doing things the hard way when there's an easier way, and I'm going to teach you how we do our ads. So A little bit of cost comparison. Paper leads cost anywhere from $300 to $500. Our Facebook leads cost less than $30. So this was one day, uh, today actually, 11 leads at $7, 3 leads at $28. So we are sub $30 now. So we're very efficient. And then for cold calling, you need anywhere from 80 to 90 leads to get a deal. And then the regulations keep on cracking down on cold calling and texting, so you're going to become on getting harder. So the better that you can get at making ads and getting leads cheaply, you're not going to rely on an agency, you're going to get more— the better results. So for us, we're spending anywhere from $10K to $15K a month, and we get 8 to 10 deals closed. And we make around $150K to $200K a month. And that's what works for me and my business. I have no need to scale it. I don't want to scale it. I feel like it took me a long time to get here. So you got to be able to have a plan and then figure out what it takes to get there. And it basically starts with marketing and sales. And I want to talk to you about our sales system flowchart. So we follow a 3-step sales process. We don't do one-call closes. I think those are very hard to do because our— if you think about it, selling— someone who wants to sell their home is one of their hardest decisions that they want to make. So for us, we do this a lot of times for sellers. They haven't done this in years, so we got to be able to ease them through. So we have a 3-step call. The first call is the intro call that my lead manager does, and then his job is to qualify the urgency and motivation, meaning, hey, if we come to a deal today, are you ready to sell the property? Yes or no? Yes. And then 2, we want to know if somewhere along the conversation there's some sort of motivation that is making them or will want them sell to us as an investor for a discount. And then one of the things that we do with this intro call is we don't make it sound like salesy. So since we use a lot of Facebook ads, we— the first thing we ask, hey, Mr. Homeowner, what about the ad? Maybe you want to look into this a little bit further, because now we spark the curiosity, like, okay, what even made you reach out? Because you may, you may be better off left, you know, just keeping the house or listing with a realtor. So we kind of disqualify ourselves in the beginning, and then they're selling themselves to us, right? And then we just position our company as the solution to that. And then assuming that it's urgent and motivated, my salesman— my follow-up, um, I'm sorry, my lead manager is going to set an appointment for my closer. And then his whole job is to build as much rapport as possible and dig deeper into the motivation and talk about like the property and what we need to do in order to in order for them to sell the property to us. So we use something called the TARP method. It stands for timeline, agenda, result, and permission. So at the start of each call, we let them know how long the phone call is going to take, the agenda, what we're going to cover. The result is what's going to be the result of the phone call. So it's like, okay, Mr. Homeowner, in this, in this case with us, with the closers, like, hey, I'm gonna let you know how it is that we're gonna give you a cash offer, but first I need this information. And then, and sorry, the P is for permission. We always tell them permission to say no. Hey, Mr. Homeowner, if at any point you don't think you're going to be a good fit or you don't like our offer, don't be afraid to tell me no. You're not going to hurt my feelings, but at least you will know what your options look like. Fair enough? Yes. And then you proceed. And then this helps you handle objections before they come, and then you're able to present solutions and tweak your offer in order to solve the problem that you discovered. Step 3, after the process call is, you know, completed, we talk about the motivation, the next steps, potential roadblocks, influencers, anything we need to figure out before selling. And then we set up the offer call, which we lay up in the, in the second call. We will let them know, hey, after I talk to you, I'm gonna talk to my partners and they're gonna let me know exactly how much the property qualifies for. We'll let you know what that is and what it looks like. So I don't let my closers be the ones that are making up the offer because I want him to build as much, as much trust as possible. And it's not in his hands. Basically, he needs to talk to the partners and then he stands like a middleman to make sure that we get a price that makes sense for them and us. And it's just easier to negotiate and easier to get a deal, right? So offer call, we do the same tarp. Hey, it's going to take this amount of time. We're going to go over this, get permission to say no. And the result is we're going to give you your offer and let you know what it looks like, right? And then with that offer call, we let them know what it looks like if they want to work with us, and then we give them a cash offer, and then we'll negotiate back and forth. And then if we, if we can't land at our cash deal, we'll pitch the Novation offer. Usually we're going to get them the contract, and then we close it and just keep on doing the process. But this on the acquisition side allows us to get 1 deal for every 4, 4 offers that we send out. And I do this with a very lean team, like I was saying in the beginning. So basically I have 2 lead managers, um, I have 2 closers because I just hired one, and then I have one dispo manager. So the closer, their job is to talk to the hottest opportunities and talk to the people that reach out to us and give them an offer. That's very important to me. By the time that the appointment is completed and we send out the offer, I want it to be at least 2 days. That way we get more properties under contract because we have our metrics and we know exactly what that looks like and how many leads we need to have weekly basis, how many appointments, how many offers, and how many contracts. So if you're not doing it like this, you're losing money. Um, and like for us, like last month we spent $15K, we got more than 200 leads, we got 11 contracts signed, and the total revenue from that is going to be over $200,000. And then for me, it's less than 20 hours a week, so the ROI on my time and everything is around 1,400%. And I can show you some of the results that my clients are having. So if this sounds like something that may be of interest, pay pay attention to this. One of my guys, Ryan, he is getting a— he used to be at $5K cost per contract, now he's on half of that. He makes like $25K per deal. He's in a very competitive market. Now, not everyone is going to achieve super cheap leads, but he's— you're gonna— it's gonna help you with your conversions. We hear Jordan, he just joined like 45 days ago. We spent $2,500, he got 4 contracts. I think he's making like $80K his first month in, which is crazy. And then over here I have one of my other clients, Jason. He's in a very competitive market. He's also, uh, his cost per deal is like $2,500, but all of the other channels are way more expensive. He has 5, and his average profit per deal is $27,000. So here's over $100,000 with working with us. This other guy, Riley, making over $70K, and he was going to make like $100K. So at the time of this recording, he's probably at $100K now. He's crushing, doing very good. Um, this is a campaign of another client— 155 leads in the last 30 days, 227 leads in the last 60 days. So I mean, it's crazy. Less than $12K in ads and over $100,000 in profit. So you can build a lean and scalable business. You don't have to do the cold calling and the direct mailing and the paper lead and be chasing. If you learn this skill, you're going to do this on your own, which kind of takes us to my part. We do exactly this. We help implement our system into your business. I call it the Arbitrage Ads Method. We do your campaigns for you with our winning ads. You get all of our scripts, ads that are crushing. We plug those onto you. We teach you how to record ads, how to make ads, how to use AI to make ads so that cost per lead is always low and that you can always improve on your marketing. You get 4 one-on-one implementation calls with me for your business, any strategy. And then you get weekly coaching calls run by me once a week. And then you get daily Slack support— support, I'm sorry— with my, with my team. And then they're experts at marketing. So we're going to teach you the skill so that you can keep on getting results like this. And basically, a lot of our clients, the, the investment Pays for itself within the first month. As long as you're coachable and you do the work, you're going to make this happen because I know you're smart. And if you're watching this, I know you're smart and you can do this. Anyone can do this. You just need to have a plan and someone along you to guide you through the path. And then if you are just interested in this, this is for someone who's already been doing deals. If you have the ability to invest $2K a month at least in marketing, if you are serious about scaling your business and you got to be coachable, you got to do the work, and you got to show up, and you got to be systems focused. And this is not for beginners or people who can't invest in marketing or people who want to get rich quick without putting in the work, because this takes a lot of time and it's not as easy as everyone makes it seem. So I'm always going to be honest with you, telling you what works, what doesn't work, what we do, and what is the best way to scale your wholesaling business. So If you like the video, please like it, share it, subscribe, and I'll catch you on the next one. All you need to do if you're interested, click on the link down below. Let's book a call and I'll, I'll build you a custom marketing plan for you and help you scale to $100K a month or wherever you want to build to. So with that being said, I'll catch you in the next video, guys.

Thank you.