What to look for when wholesaling real estate- Payneless Flipping Secrets

We are live. What is going on, Nathan Payne? How you doing?

I am doing great as always. How you doing, brother?

I'm feeling great today, man. So today what we're going to be talking about is what to look for when wholesaling real estate. That's a question that gets searched a lot online, and that's a question I get a lot. So we're going to bounce in, we're going to talk about it, we're going to, we're going to make sure you guys understand what to look for when wholesaling real estate. But before we get into that, let me introduce myself and you'll introduce yourself. So you know if we're even worth listening to. So my name is Nathan Payne. I've been in the business for 7 years and I've done hundreds of deals, millions of dollars in transactions. I've done anything from pre-foreclosure, probate, you name the list, I've done a deal. You name the state, done it. So we're here to kind of share with, with you our expertise so you can go out and know what to do when wholesaling real estate. Nathan Valley, who are you?

Yeah, guys, my name is Nathan Valley. Been wholesaling for about 5 years. Um, done a bunch of deals, a bunch of different states. I'm known for locking up over 100 contracts in a single year. Some of you might have seen a 30-day challenge I did a little while ago. It's where I picked a totally brand new market where I had no contacts, no resources, nothing, and did a $20,000 deal in 30 days and only spent about 2 to 3 hours Monday through Friday working on it, and $0 on marketing, uh, marketing expenses. So that was pretty cool. And Yeah, it's a little bit about me, dude.

It's amazing what you can do in this job when you know what you're looking for when you're wholesaling real estate, right?

That was, that was one of the biggest things in early on in my career. And I actually think that's the, the biggest enemy to people getting started is— and it seems like a really simple question, and a lot of you watching or listening, you think you might like be, oh yeah, no duh, I know what to look for when wholesaling real estate. But no, no, guys, guys, Hear me out, you are going to want to watch this because I promise you it's the biggest killer right now to you doing more deals and making more money.

So our plan, as we've said, is we're going to answer this question for you, and we promise by the end of this video you're going to know exactly what to look for when wholesaling real estate. So without further ado, let's dive right in. So Nathan, we all know the basics. You gotta pick an area, you gotta pick a place to go market, right, to start looking for deals. So the That's one thing I want to start off with is you guys have to focus on one place. I know nationwide wholesaling has become attractive. I did it for 2 years because I was like, oh, I can get leads everywhere. If you, if you're starting out, focus in one area, okay? Just one, because you have to master that area so you understand if you get a good deal or if you get a crappy deal. A lot of things differ and depend on like the location, right? Like one street could be worth millions, then the next street could be worth you know, half a million, right? It really just depends. So first you got to pick an area. So when knowing what to look for, you know, you got to start in one place.

Would you agree, Nathan Payne? 100%. And, you know, guys, just to, just to reiterate that, you know, again, doing national wholesaling, being in all these different markets, again, that was really sexy, uh, a number of years ago. Don't hear that many people talking about it, not nearly as many today as there was, you know, even just a few years ago. The reason is because a lot of people lost a lot of money trying to do wholesaling nationwide. Because guys, picking one market, it's, it's one of the biggest advantages that you can use in real estate, right? If you pick stocks or something like stocks, if you have insider knowledge, right, that's, that's illegal, right? Insider trading, you're not allowed to kind of know stuff. Real estate Guys, real estate, if you know the ins and outs, if you know that neighborhood, you know that street, you know that corner, you know, guys, that's just a competitive advantage, right? And guys, every, every market is different. Every state is different. Every buyer is different. And that's why going nationwide is so hard, because real estate is hyperlocal.

You nailed it. Now, guys, we're going to be going through this pretty quick to answer the question because we could go really in-depth, but We don't need to. We're going to give you the basics so you can take action with what we're going to tell you. So once you pick that market, what's the quick funny—

the re— the reason he mentions that, guys, is to really just remind me that we're supposed to be going through these quick.

This man can talk about the one market thing for hours, okay? So we're, we're busting through this. So number 2, once you pick the market, what do you got to do? Well, you got to know who you're going to target, right? You got to know who right?

Who you're looking for.

So that's the thing is the question is what to look for. Well, look, you could hit up— there's so many different lists and you can, you can go on a bunch of trainings on YouTube and people are like absentee owner, tired landlords, which is pretty much the same thing, but they're just old. They have owned the property for longer. Tax lien, pre-foreclosure, probate. You go on any of these services and we love Batch, but they have a lot of different options. Who do you go for? You don't have all the time in the world. Maybe you don't have all the marketing dollars in the world.

Who do you look for?

For me, I pick the person that I believe is going to have the highest motivation and the least amount of leads, so I don't have to go through thousands and thousands. When I first started, they said unknown equity— there's like one of my coaches said unknown equity, high equity, so that means they own a lot of their equity in the property, or we don't know. And those lists had like 20,000, 30,000 people, so that means you had to blow through those. You had to like call, hire cold calling teams. They It was a lot of work. What I like to do, what I tell people to do, and our clients— and we're going to be talking about a certain situation that we have a win right now— targeting probates and pre-foreclosures. So, and that's why, because— and the reason why is because, uh, less leads, harder to get a hold of because they're getting blasted by people, so they don't really answer. So you got to be like a sniper and aggressive to get a hold of them. But when you do, they're usually pretty motivated. So you got to pick I would just say pick a list. Nate, what would you say when you pick a niche?

Yeah, guys, that's it. So when you're looking to get started wholesaling real estate, we're not even— we're not looking for deals. We're looking for problems that we can solve, right? We're looking for motivated sellers. The motivated seller is what makes it a deal, right? You can have a deal, but if the seller is not motivated, good luck. Right, in any real estate transaction. If the seller is not motivated— specifically with wholesaling, right— if the seller is not motivated, good luck, right? But if you have a motivated seller, if you've got that one piece right, guys, everything else you can, you can make happen. So, and again, when finding a motivated seller, that's the number one thing we're looking for. But we got to narrow it down because again, like he said, just because somebody has equity in the home doesn't make them a motivated seller. Just because it's a second home—

makes them not motivated. They almost own all of it. Why would you be motivated to sell if you're like, man, I own— I don't need to sell? The people that I would say are motivated are people who are about to lose all their equity, right? Or they're about to lose their home. Or people who've inherited the home in the probate process and they're like, I don't live there, I don't need that house, I just need to sell it.

So you have to look especially Yeah, and especially when, when someone's just getting started, you know, guys, you don't— or at least when I first got started, I was broke. I was like dead, dead broke when I first got started. I'd spend like $37 on skip tracing and be like, oh man, I hope this comes back to a deal. So all the other strategies, ah, that can cost a lot of money reaching out to a lot of people. Well, what if I just only spent my time going after the highest quality, most motivated people? And then, yeah, it might be a really small list, but what if I spent a disproportionate amount of time with those highest quality people, right? And I don't need to spend 6 to 8 hours on a, on a dialer. I don't need to spend, you know, $2,000, $3,000, $4,000, $5,000 a month on direct mail and, you know, not get any calls, or putting out bandit signs. What if I just reached out and spent my time? And you don't need to spend a lot of time when there's not a lot of people, right? And you're also— you're making the most progress because again, you're reaching out to the most motivated people. Again, guys, quality over quantity, right? Not only do you make a lot more progress and it's a lot more fun and you, you learn so much more and get further, but It's also way, way, way, way, way less expensive than the shotgun approach of let me just throw a whole bunch of marketing at the wall and hope something sticks.

And that's what a lot of people start with. That's what I started with. I spent $10,000 in mailers hitting the unknown equity list and absentee owners. Didn't get a deal. I don't want that to be you guys. I want you to go get a deal and be profitable and not be $10K in the hole and being like, oh my gosh. Okay, so pick one market, pick a list. This, this is what I recommend. So once you pick the list, right now you need to understand how to market to them. But before I even get into how you should get a hold of those people, I think people feel more comfortable if they start to understand how to have that conversation, like what to say. Because if you're like, well, let me market and then let me figure out what to say once it happens— some people do that. But I think it doesn't take that much effort to understand the conversation. So again, what are you looking for? That's the next step. How do you talk to these people that you're going to be working with? So what to say? What are you looking for? So what are you looking for? And you could even say this is a lead qualification process, this is a sales process, and this is where the money is made. Because you can put me against someone who's just, hey, do you want to sell your house? Hey, do you want to? And he's just looking for that low-hanging fruit. For me, I'm looking to understand the situation, not necessarily, okay, are they willing to sell at a discount? Because a lot of people, they're not there yet. They want as much as they can get. So you have to be able to understand how to have this conversation. That's what I think is the next step. Understand how to talk to people. Then let's get the marketing going. Let's do the texting, let's do the calling, let's get in front of people's houses, let's knock, leave notes, mail, you name it, doesn't matter. But you've got to understand that the money's made through the conversation. Nathan, do you have anything you want to add to that?

Yeah, guys, I'll give you, I'll give you the quickest rundown. Um, if you got a pen, pad of paper, whatever, or maybe rewind, watch this again. So here it goes. Whenever I talk to a seller, this is how I qualify them. I ask these questions every single time, no matter what. First question: Right, and I'll bring these up casually throughout the conversation. Hey, Mr. and Ms. Seller, uh, let me ask, have you ever thought— have you guys considered, you know, maybe just listing it with an agent and sort of going that route?

No?

Okay, interesting. Well, what's, what's holding you guys back from just doing that, right? Oh yes, you are looking into that? Oh cool. What's held you guys back from just moving forward with that, right? I want to find out their why. Next question. Right, we already asked about listing it with an agent. Question number 2: Hey, Mr. and Mrs. Seller, have you guys considered maybe just fixing it up yourselves and, and then selling it? You know, you'll definitely get more money that way. If not, well, what's held you back from just moving forward with that, right? If yes, what's held you back from just moving forward with that? All right, question number 3: Mr. and Mrs. Seller, Have you guys considered, you know, maybe just kind of renting it out and going that route? Right now, normally you don't even get to finish this sentence and they cut you off and they're like, oh my gosh, no, we don't want to rent it out and deal with people trashing the place and, you know, all that good stuff, right? Usually pretty easy one. But then, guys, you know, as you probably have guessed, I'm also going to ask what's held you back from moving forward with that. That's what we're doing with every one of these questions. We get the answer, but then we want to go one step deeper. What is the why behind it? So have you considered listing with an agent? Have you thought about fixing it up yourself and selling it? Have you thought about renting it out? Question number 4, right? And this is kind of an optional question, and you got to have some emotional intelligence, right? So it depends on— they might have already answered this in the conversation, but if not, I'll ask. Mr. and Ms. Seller, can— is just staying in the house an option? Can you just keep it? Or, you know, do you have any kids or anything that you'd maybe want to pass the house on to, or any family, friends? Now guys, why are we doing this? Well, if you've noticed, you might say, oh Nate, why would I ever ask that? That's, that's all their other options. Guys, that's exactly why we ask it, because that's all their other options. Right? And so now, rather than being that cheesy kind of pushy salesperson, we're doing the exact opposite. We're genuinely asking these questions. Well, hey, well, why not do this? Why not do that? Why not do that? And what happens is they end up telling you why they are the perfect fit for you and why they need to work with you. Guys, if I ask somebody, hey, have you thought about listing with an agent? They said, yeah, we're, we're you know, meeting with one on Friday. I'm like, okay, well, what would, what would kind of keep you from, from just moving forward with that option? And if they say, well, we're planning to list it for $450,000, but if we get $450,000 cash and not have to pay the realtor and going through that process, like, we'd do that. Then at that point I say, yeah, probably not going to be able to get anywhere close to that. Listing it with an agent is definitely your best bet, but if circumstances change, please feel free to reach out anytime, right? Boom, on to the next person. So we want to disqualify, and they'll tell you exactly, you know, uh, um, what they need and why you're the perfect fit for them.

Let me add some of that, Nate. So the beautiful thing about these types of questions, which I love asking, is they— everybody wants to find the 4 pillars of motivation, but you can't just go up to a seller and be like, why are you selling, and get all the juice. Maybe some will spill it, but a lot of them hold their cards close to the chest, right? They don't want to tell you. So this is a really good way to get this information without going straight and being like, hey, how fast you need to sell? And then getting all that information, because sometimes they won't tell you. But if you're like, hey, have you considered listing it? They'll usually say no. And you'll be like, how come? And they'll say, because my timeline. And they'll go into their timeline. I can't because I need to go quick. Or, hey, The condition. They'll start talking about the condition. I can't listen. I don't want people walking through the house. It's trash. So you don't— it's trash. You don't have to, you don't have to ask these questions necessarily because these questions will pull them out. Um, have you considered fixing it? You know what, I honestly, I'm really motivated. I don't have any money. I don't have the money to fix it. You didn't have to ask them, do you have the money to fix it? They tell you, right? So what Nathan just asked, uh, is asking, pulls out the 4 pillars of motivation, and then you dive in a little bit deeper. So it's just a better way, in my opinion, to get that information, and you're coming off salesy like you're trying to pull out this information so you can rock them. You're, you're really trying to help them make the best decision. Because again, if you say, have you considered listing it? And they're like, yeah, I would say then you should do it because it's going to make you the most money. It really is. But it's not the most convenient thing. But if they don't care about speed, if they told you they don't— their timeline, they don't care, they're like, we can sell whenever, then that's your best option if that's what you want. So anyway, That in a nutshell, guys, is what you're looking for. You're looking for the person— once you take them through this, this, this question process to understand their motivation, you're looking for the person that is still on the phone with you. Because if at the end of all these questions they're like, yeah, I might just list it, well, can you list it for me? Yeah, maybe you can, you can point them in the right direction. But if, if they answer these and they're not who you should be working with, get out of there. That is the killer of this industry, is staying on the phone with the wrong people that will waste your time. And what are we looking for when we're wholesaling real estate? We're looking for the people who are willing to chat after this filtering process. Nathan, you want to elaborate on that? Are you good?

Yeah, no, man, I couldn't have said it better myself. Guys, the biggest killer, especially with people getting started, is wasting time. And the worst part is wasting time without realizing it, right? We're either cold calling through a list or we're talking to sellers that we think are motivated, but it's, you know, something that's not even remotely close to a deal, or a seller that on face value sounds motivated, but the reality is that person's never going to sell, right? And that happened to me a lot in my career, and, and especially early on. I wasted so much time, so much time, to whereas if I was able to recognize, no, this just— this, this is not a motivated seller, this is not a motivated lead, Boom, I can cut that off and move on to the next one. And then also, you know, again, doing that with the highest quality, uh, motivated sellers that I can, right? The highest quality lists, right? They might not be the biggest list, but that's exactly why I want to go after them, is because it's going to be the one that costs me the least amount of money. So I can be the most efficient with my money, but also the most effective with my time. Takes a lot longer to call through a list of 10,000 people than a list of 10 to 100, right?

100%. Well, look, we could dive in deeper, but if you guys like what you've heard, and I would just say it's time to take action. Look, we gave you the market. We said there's a list. Go hit it. Go ask these questions. If you've gotten that far and you're still like, I don't know what to do, hit us up at painlessflipping.com. That's what we do. We help people. With their deals. We hold people's hands and help them start this business. We actually have a client which I took him through this process, and as we speak, he's hitting me up and saying, what do I do? I got someone that's really motivated. They're saying they need to sell or they're going to lose it. Look, it requires action. There's nothing pretty to it. He told me he called 40 people today. And by the way, this is his first, his first day calling. Now he's gone through the process. He said he called 40 people. He only got a hold of one person. That's what he said. I only got a hold of one person, but out of the one per— the people they talk to, the one guy is like, dude, I got to sell this thing ASAP. So can you imagine doing a couple more repetitions going through that process? He's going to find more and more people. Now it always doesn't work out like that. You might get ahold of people, you might not get ahold of people, but you got to stay consistent and there's people that need to sell. So if you haven't had success, it's probably because you're working on your LLC, you're working on a website, you're still thinking of your business name to what to call your business. You think you're doing stuff that's important. But you're not. That's usually what happens when people don't see success. Take action and you guys are going to go get deals. Nathan Payne, that's all I got to say. You got anything to say before we wrap up?

Nah, man, you guys got it. Go crush it. If you need anything, feel free to reach out to us. Otherwise, have a good one, guys.

See you on the next call next week. Later, everybody.