Everything wrong with Wholesale Real Estate

Wholesale, wholesale, wholesale. Everybody wants to get into wholesale. I appreciate you clicking on this video. I want you to be successful, right? But right now, most people in the wholesale business are broke because they're relying on hope. They don't know where the next deal is going to come from. They don't know how many calls they need to do to actually close consistent deals on a month-to-month basis. They don't know if their market even works. They they are stuck in their local market, right? So off the bat, I'm going to tell you: Texas, Florida, Ohio, New York, California, and Arizona— you will need to ignore these markets, especially as a beginner. Why do I say that? Not only is everybody and their mom trying to wholesale there, right? Now you're competing with a bunch of people. These are big markets where you have to play to play. Pay to play, pay to play. I'm sorry, it's late, right? So you got to think, all these big wholesale companies will not go into the middle of Louisiana, a tiny market, and try to close deals with their big marketing budget. They will go to Texas, they will go to Dallas, they will go to Houston, they will go to Austin, they will go to Arizona, they will go to Tempe, they will go to Scottsdale, they will go to New York, they will go to New Jersey, they will go to the Bronx, whatever big city is in these states, right? And close deals because they have a huge marketing budget, because they have a huge team, because they have been experienced for years and years and years. You are not that. You don't have a huge marketing budget. You don't have an in-person team in an office with 30 sales agents ready to close deals. No, you don't have a transaction coordinator. You don't have an acquisitions manager. You don't have a dispo manager. You don't have a team of closers. You don't have any of that. So why would I sit here and tell you, hey, go wholesale in Texas? I am putting you in the deep waters with sharks and you will never succeed, right? You might get lucky on one, I'll tell you that. You might get lucky on one. That's how easy wholesale is, right? But you will never have a consistent deal flow, and that is the problem. You need to stop basing your business off hope and base your business off KPIs, key performance indicators. That will let you know what money you're gonna make this month, what money you're gonna make next month, and what money you're gonna end the year off with. And you're gonna know what effort you need to put into the business to actually get those results. Now, if you don't put up those numbers, you know you're not gonna get those results. But if you do, you will, because you back-tested these strategies. You know what numbers you need to hit to get what results, right? So my numbers is I talk to 75 people cold, I send out 3 offers— 3, 1, 2, 3, that's it, that's 3 phone calls— and I get 1 contract, right? And I can show you my CRM to let you know that this is true. Right? This is a business of numbers, just like any sales business. So you need to stop relying on hope. And I'm going to let you know what most people are doing in the business. They're getting a random house under contract to wholesale. They are in a random market with a random pool of cash buyers. They hope their random cash buyers will like the random house. Now they hope to maybe get a wholesale fee. They don't know how much they're going to make off the wholesale fee. They don't know what the type of buyer is and if they'll come back and buy another deal, because they don't know if they're going to make money off that deal. Right? Normally, you're selling these deals to people that are not experienced in the game. Right? So they will buy one deal, lose money, never buy again. That is a problem. You need these buyers to come back and buy, buy, buy, buy, buy, because they're making money off of your deals. The only way they're making money off of your deals, if your deals are good deals, and you get them under contract very, very low. Right? You need to stop being random. You need to stop listening to these gurus that wholesale is free to get in. It is not free to get in, especially off-market. On-market, you can do it for free, right? But when you're doing it for free, you are dealing with real estate agents that are most of the time lazy people. Out of 10 real estate agents that you call, only 2 are answering the phone, right? They're super lazy people. That's why I don't like working with them. That's the— what's one con of on-market. Number 2, Sellers are not motivated. That's why they're working with a real estate agent. They know how long it's gonna take for their property to sell on the market. They know they have a bunch of random people walking in and out of the house. They know they're gonna have to come up with some type of money for closing costs. They know that the agent is gonna take a fee, right? These are all the things that the seller has accepted, right? And before even putting it on the market, they have probably gotten cash offers. During the property being on the market, they have gotten cash offers and they said no, right? So this property that has been expired or that has sat on the market for around 150 days, what makes you think that they will accept your cash offer? Now, going the creative way, that's different because interest rates are pretty high right now. A lot of flippers are not making money off their deals. They're sitting on the market. So that could be a great way that you can do it. But that's the only way. Selling— trying to put deals under contract for cash offers on the market is a huge waste of time. Not only that, but when it's time to actually sell the deal to a buyer, most buyers do not want a ran-through deal. What do I mean by a ran-through deal? I mean that this property has been sitting on the market for 150 days. Let's just put Dallas for example. Every single Dallas investor has been sent that deal by buy some buttfuck wholesaler that can't get his own deals, right? So he's out here sending on-market deals to investors saying, hey, I could probably get this under contract for $20,000, $30,000 under, and then I'll get $5K. Can you, can you do that? These investors have already seen this deal. The same way you don't want a girl that the whole city has been with, right? You don't want that girl because she's not special. Everybody has seen her, everybody has talked to her, everybody has kissed her. You don't want this girl. You want a girl that nobody knows. You want a girl that's nice. You want a girl that respects you. An on-market deal will not respect you, right? So, OK, you've got a buyer that wants to buy the property. Miraculously, you got— by a miracle, you got a buyer ready to buy. This guy will negotiate his ass off. Every buyer will. But off-market is way easier because you have bigger margins. On-market, when you are selling a deal, you are not making more than $7,000. You are not making more than $8,000. $10,000 is the max, max, max, max, max, max. You're not making more than $10,000 on market, and that's struggling for weeks, weeks, months, months dealing with real estate agent after real estate agent, sending out offers, being asked for proof of funds that you don't have because you're broke, right? This is the stuff that you're dealing with on market, right? That's why I don't recommend it. A lot of people, a lot of these wholesalers will tell you, hey, go on market, buy my $50 or on-market course, buy my $100 on-market course, here, here, you can do wholesaling for free. And then you don't get a result, and then you shit on the guru. Which, fault on the guru because they know you're not gonna get results from that. I know you're not gonna get results from that, that's why I don't recommend it. I recommend you save money and you go off-market because off-market is where the money is made, right? Now, I did tell you all the states that you're not supposed to be in, like Texas, Arizona, Ohio, because they have a terrible buyers list. You got New York, California, right? These are all markets where you got big, big companies spending millions of dollars in there, right? You can't jump in the water with sharks. You just don't have the skills yet. You don't have the budget yet, right? You don't have the experience yet. That's why I tell you to go to these smaller cities. In these smaller cities, there's less— a lesser pool of wholesalers trying to close deals., right? Therefore, I can thrive there. I don't want to be in Texas competing with all these other wholesalers. I want to be in Louisiana with maybe 2 other wholesalers. And because my skills are so good, because my script is so smooth, because I'm so efficient with the way I run my business, I know I will succeed. Because I'm able to track my numbers. I'm able to know how many deals I'm going to close this month, how many deals I'm going to close next month, how many deals I'm going to finish off the year with. This is what you need to do. You need to track KPIs. You need to have databases. You need to use CRMs for buyers and sellers, right? You need to have all this information to track. That way you're able to scale. Because I know you don't want to just do $10K a month. I know you don't want to do just $20K a month. And when you do make $20K a month, you're gonna want $40K a month. And you're not gonna be able to scale if your business is super fucking complicated and you're basing it off hope. You need to stop basing your business off hope. It's enough of that. You need a proven system that will let you know, hey, I will make money. All I got to do is talk to 120 people cold. Out of those 120 people cold, I need to give out 15 offers. I give out 15 offers, I get 1 contract. And because I know the market that I'm in, because I tested it before I went in there, I will make money. Because I know the days on market match, because I know the estimated average sale price, checks out because I know the market is blue, because I know how many buyers are in the market, because I know what's the Facebook support, because I know what type of real estate agents are in the market. You have to know what you're doing. If you don't know what you're doing, you will fail. And if you keep failing and failing and failing and failing and failing, you will quit the business, right? That's common sense. I don't judge you for it because I would be tired too if I did it for that long and I didn't close any deals. I was able to do that when I was 14 because I was 14, I didn't have no bills. I didn't tell anybody that I was wholesaling. I told people, oh yeah, I'm trying this business, hopefully it works, right? I didn't go out and told 20 people, hey, I'm starting wholesale real estate. Watch, I'm gonna be a millionaire, right? So now I'm thinking about all these other people that I told I was gonna be successful with. So me quitting is gonna feel terrible, right? So I did it for 7 months, I got my first deal by luck. This was not— this, well, it was hard work because I kept going and didn't quit, but it was luck. I was trying bandit signs, I was doing door knocking, I was driving for dollars. Just by sheer luck, I got my first deal. Once I got that deal, I noticed, hey, I'm gonna go broke very, very soon because I was stupid. I went and bought a car. I told you guys the story already, right? So then I started investing into mentorships. This is what got me to the point that I'm in right now. If I— I wouldn't be this successful if I didn't pay for mentorships, if I didn't pay for the information, right? So what are the main takeaways? Pick a small market. Have a script. Have 3 CRMs: one for your KPIs, one for your buyers, one for your sellers, right? Make sure you're calling Monday through Saturday. If you can't do Monday through Saturday, make sure it's at least 3 of those days. Make sure you're calling in those 3 days at a minimum, at a minimum of 3 hours, right? So you can at least hit 50 contacts. If you can do 50 contacts and by the month you'll hit maybe 1,000 contacts, you will close a deal. It's just a numbers game. That's all it is. If you hit the numbers, you will make money, right? Make sure you're using a dialer. Make sure you're paying for skip tracing because all of this is off-market. Everything is off-market. Off-market makes the money. I'm only gonna teach you off-market because that's what works for me. I'm not gonna sit here and tell you an on-market bullshit strategy that doesn't work, right? I'm not a bullshitter. I'm here for you to make money. I want you to make money because I didn't have that person that was willing to work with me one-on-one when I was first 15, especially not for the price point and the money that I had at the time. But make sure you have a dialer. Make Make sure you have a script. Make sure you have good contracts. Make sure you build rapport with these people. And it doesn't have to be bullshit rapport like, hey, I have the same dog as you do. Oh, you broke your leg? Oh, I broke my leg too. No, the rapport of I know what I'm doing in this business. This is our sales process. This is how it works. This is how I will help you. Because they don't really give a shit about anything else. They only care about the result. The same way you don't care about how much work needs to be done. You only care about the money you're going to make with wholesale. Right? So make sure you're building rapport, you're building these relationships, you're closing deals, you're doing your follow-up calls, you're building a network of buyers in whatever city you're in, you're keeping track of them, you're keeping up with them, and you will succeed. It's very, very easy. You just have to do the work, right? And as long as you work hard for maybe 3, 4 months, you will make a lot of money. Because I'm giving you the blueprint. I'm giving you the cheat sheet. I'm fast-tracking you to success. You don't have to go out and put bandit signs anymore because that doesn't work. Driver for Dollars doesn't work. Using True People Search for skip tracing doesn't work. Calling from your phone, your own personal phone number, multiple people, over 20 people a day, and they're not answering the phone— you will get marked as spam. It doesn't work, right? Not using a dialer doesn't work. Hiring VAs when you're first starting off— if you can't make cold calls yourself, how do you expect to train some random Indian guy and some random Filipino guy to be a killer on the phones when you're not a killer on your own? How do you expect to hire a random person to make offers for you when you haven't made 100 offers yourself? It's a lot of these things that these, these gurus will tell you to do that just doesn't make sense. But that's enough. I was just— I'm just rambling at this point. I just want to let— do a YouTube video. I need to— I need to be consistent with YouTube videos, right? The same way I'm consistent with wholesale, I need to be consistent with YouTube. The same way you need to be consistent with wholesale so you can make money and be in my position. But that was just me rambling. I hope you guys learned something from it. If you did, comment down below if you want. Uh, if you're interested in me mentoring you, you want to, you want to get the fast track, you want to get the blueprint on what I'm doing in my wholesale business currently in 2024, you can DM me, contract. It is not free. I don't mentor for free. I'm not doing charity work. I'm building a network of successful wholesalers that are using my strategy so we can all make money together. That's the goal, right? This is not charity work. I'm not here to— if you have $5 to invest, bro, you can't do anything with $5, man. Like, it's nothing against you, but it's just, it's a play, it's a pay-to-play game. If you have $500 to invest and you have more money to invest in a mentor, you can DM me, contract, and we'll go from there. I'm gonna keep posting YouTube videos. If I don't post another YouTube video by the, by the end of this month, you guys DM me, you're bullshitting, because I probably am. But yeah, like, comment, subscribe, all that stuff. And any other questions, you you guys can comment them down below, you can DM me, and I will try my best to answer it. You guys have a great night. Deuces.