How to Close Every Wholesale Deal You Come Across

If you want to close any wholesale deal you come across, there are a few massive mistakes you have to stop making right now. And I see beginners fall into these over and over again. They get a motivated seller on the phone, they fumble through the conversation, and they lose the deal to somebody who sounds more confident. That's why you need these 5 closing frameworks. And if you can master all 5 of these, it's pretty much guaranteed you'll close more deals in the next 90 days than most wholesalers close in a year. But if you ignore even one of these frameworks, you're going to keep losing deals and wonder why nothing's working. Because the truth is, closing deals isn't about having the perfect script or 10 years of experience, but about how understanding motivated sellers and how they actually make decisions. And most people get this completely wrong. Now, I work with more than 500 real estate investors across the country. Some of them are in my Inner Circle program where I personally analyze every deal they bring me. And the number one thing that separates people who close deals from people who don't isn't talent or charisma. It's having frameworks that work even when you're terrified. So in this video, I'm going to break down all 5 closing frameworks you need to master to close as many deals as possible. Let's dive in. The first framework is the Motivation Questioning Framework that gets sellers to say yes. You need to understand that when you're first having a conversation with a motivated seller, the last thing you want to be talking about is numbers. And I literally mean that. Like the last thing in the conversation you should be having a discussion about is the numbers for the property, right? How much they're looking to get for it. The first thing you need to understand is why they want to sell. If you've ever heard me on the phone, you know the first question I ask them, I say, hey, catch me up to speed. What's got you thinking about selling this place? Because I want to hear the why, right? This is where I literally turn myself into their therapist. And all I want to hear about is what has them thinking about selling the house, because this is a twofold effect. Number 1, the more time they spend on the phone with me, just talking to me, the more rapport we build. This isn't some having to learn these fancy sales tactics to build rapport. This is just a simple fact where the more time somebody spends with you is just a vote of confidence they're putting in you by the simple act of just them spending time talking to you. You don't need to be some sales god, Jordan Belfort, in order to do this. Simply just have a conversation with somebody for as long as possible. The second thing is the longer they talk about why they want to sell the property, the more they're just convincing themselves of them needing to sell the property. They're literally just digging themselves deeper down the path of, I'm going to sell this house. And so what you need to get good at is understanding the difference between a bad question and a good question when we're talking about motivation. Good questions are just simple questions that will get them to talk longer. So for instance, they say, I say, hey, catch me up to speed here. What's got you interested in selling this property? And they say, I actually recently inherited this property from, you know, my mom who, you know, she passed away and she left it to me. Right? A good question is going to be something that gets them talking more about that. Like, okay, well, when did you inherit the property? Or how long have you had the property? Right? Something to get them to keep talking. A bad question is going to be where you move on to something else like, well, tell me about the property, what kind of condition it is. No, we want to have a conversation, you know, about what's happened and basically what kind of problems is this creating in their life? Like, well, are you using the property? No. Okay, so who's paying for it? How much is that costing? How long has this been going on? You see what I'm saying? We're trying to understand this problem that the property poses to them rather than moving to talk about the property instead. Now, this framework works of understanding that all you need to do is pretend that you're their therapist because it takes the guesswork out of everything. The problem with so many new reps is they want— they spend so much time trying to think of what it is they're going to say next. Where instead when you're just focusing on what they're saying and trying to get them talk as much, guess what? All you have to do is focus on what they're saying rather than what clever thing you're going to say next. The next framework you need to understand is how to calculate your offer even if you have zero experience. Now look, I'm going to tell you right now that when it comes to wholesaling real estate, the very hardest part is learning how to actually analyze a deal and know what you can pay. It's completely different whether the house is going to be a flip or you're selling it as a rental property. It changes depending on what part of the country the property's in. It changes depending on how nice the neighborhood is. You know, the nicer the neighborhood, the repairs go up and how much it costs per square foot goes up. But with that being said, there is a simple framework you can use to make sure that you're not overpaying for deals, which are going to cause you to have to cancel deals and it's just going to kill all your momentum and also not offering way too little where you'll never get somebody to accept it. But if you did, you would be making quite a bit. What you need to understand is that 80% of every single deal you talk to is going to need a full interior rehab. Have. What I mean by that is they're gonna need to redo everything on the inside to flip the property. This is new kitchen, new bathrooms, new floors, new paint. Okay? And a simple calculation you can use to estimate that repair cost is $35 per square foot. If the property has an ARV of less than $250,000, then if your ARV is somewhere between $250,000 and $350,000, use $40 per square foot. And if it's above that number, if it's above $350,000, you want to be looking at $45 a square foot, and that'll last you pretty well until you get to ARVs that are above, let's say, $750,000, $800,000. The thing to understand is once you can calculate what a full interior rehab is, you will know how to calculate repair costs for 80% of the deals you look at. Now, I use a very simple MAO calculator, and all it does is I plug in my ARV, which I find by just looking at other houses in the same neighborhood that have sold in the last 3, 6, or 12 months, depending on how many recent sales there have been. And I just find the one that has had a full interior rehab, and I use that as a blueprint property. Now, obviously, if you can find multiple of these, take the average of their prices, that's going to be best. But when you're first starting out, you need to remember, this is kind of like horseshoes and hand grenades. You don't need to be exact, you just got to get close. Because you're not actually buying the house. So the key is find the blueprint property, take the ARV, and then from there I just back out all the costs. First, I back out the closing costs that the end buyer will pay when they buy it from me, because remember, the end buyers pay all the closing costs. I back out the closing costs they're going to pay when they sell the property, because remember, these people are going to flip the property, sell it. They're going to sell it on the market because they want to get the most amount of money. Now, typically they're going to have good relationship with a realtor who's going to cut them a deal, but that's typically going to be around 5%, right? This is going to be some percentage to the seller's agent, some percentage to the buyer's agent, and then closing costs again, which they will be splitting with the end-to-end buyer more than likely. From there, we're going to back out the repair costs, right? You're going to either use $35, $40, or $45 per square foot depending on what the ARV of the property is. Then you're going to back out investor profit. This is how we know that our deal is going to be a grand slam for end buyers when we send it to Now, typically investor profit is going to be between 10% and 15% of ARV. What I mean by that is if a property's ARV is $400,000, we're going to want to calculate somewhere between $40,000 and $50,000 in investor profit. This is how we know that it's going to be worth it for the end buyers. And when we actually get the deal under contract and we're looking for that end buyer, it makes it a super easy sell because we say, look, I ran the numbers. You can go ahead, you're going to do a full interior remodel. It's going to cost you $40 per square foot. Then you're going to have a property that's worth $400,000. And when you sell it for that, even after paying closing costs when you buy the property, paying closing costs when you sell the property and paying for the rehab, you're going to walk with between $40,000 to $50,000. And then it's going to be an easy sell to get that assignment contract signed. Now, as I said, learning how to analyze deals is 100% the hardest part of getting into wholesaling real estate. Everything else I can teach you within like a 3-hour period, which is what I do do in my free course that's available on YouTube. However, for people who want to go get their first deal as quickly as possible, that's one reason why people join my inner circle is I actually analyze all their deals for them. I have years of experience analyzing deals so I can tell exactly what I'm going to be able to sell a deal for. And that's what allows me to sometimes pay more than my competition and beat out my competition on deals because I can offer just a little bit more than them because I know where my numbers are going to be. And it takes the guesswork out of figuring out how much you can offer when you can just submit it to me. I tell you what your comps are, what the repair costs are, what comps to bring up to the seller, and how much to offer so that you can go in confident. If you're interested in learning more about my inner circle, where I will help you close your first deal in the next 90 days guaranteed or your money back, go ahead and hit the link down below in the description to figure out if it's a good fit for you. Now, here's where most beginners get stuck. They understand the framework and they know what questions to ask, but when it comes to actually analyzing the deal and knowing what to offer, they freeze up. Because the truth is, deal analysis takes reps. It takes seeing hundreds of deals to know what's a good deal and what's not. And that's one of the reasons why I built my Inner Circle program, where wholesalers like you can submit deals to my team on a daily basis so that we can analyze it within 24 hours. We tell the wholesaler exactly what to offer and what they can sell it for. On top of that, we actually do 4 weekly group calls where we go over deals live to sharpen your skills as much as possible. If you want to be a part of the Inner Circle where we're going to help you close your first deal in less than 90 days, guaranteed or your money back, I'll leave a link down below that you can check out to see if you qualify. Framework 3: How to present your offer without sounding like a thief. One of the biggest problems I see with newbies is they make an offer and they have to offer way lower than what the seller is asking. And they either don't make the offer or they do make the offer and then immediately shrink up because the seller starts to yell at them about how that's way too low. I would never take that. You need to understand we're presenting an offer at where the house needs to be bought. As an investor, that's obviously going to be different than what it is for market value. I want you to think about this from the seller's perspective. Let's say I called you up and you had a house that you own and I called you up and I said, how much do you want for it? How would you figure that out? Well, you'd probably go on your phone, go to Zillow, search your address and just say what the Zestimate is, right? Look, when you make an offer that's way too low, you have to be able to reframe the offer to show them that you're not being ridiculous, that you're treating them fair. And the way you do that is by explaining exactly how you got your numbers. For me, I tell them, look, this is simply a math equation. I know when you look and you see that Zillow says your property is worth X, but it's not taking into account the fact of what we talked about earlier, that your property needs a new roof. It has a kitchen that hasn't been updated in 40 years. It has bathrooms that haven't been updated. It needs new floors. You have carpet that's 20 years old in there, right? Yes, you probably could get that amount that Zillow says your property's worth, but would you be willing to do those repairs that we just talked about? Do you know how much those would cost? Do you know how much time that would take? And when you tell them, look, this is a simple math equation. I understand that. Yeah, I eventually want to be able to sell your property for that, but it's going to cost me all this money to go ahead and get it to that level, not to mention all the time. And look, I'm obviously not working for free. We need to make a little bit of money too. And that's why we came in where our offer is. Does that make sense? And the way I do this is I come at them like a little bit confused if they feel like my offer is too too low. I'm like, okay, wait, I'm sorry. Like, what is it that you were hoping? What, where did you get that number from? And that's where I'll start to say, well, hey, I mean, I was actually taking a look around. I was looking at other properties in your area and I did see some were selling for that, but I noticed that they have X, Y, and Z. They had new kitchens, they had new flooring, they had new paint, they had new bathrooms throughout. Did you plan on doing that before you sold the property? And they're like, well, no, I thought you bought it as is. Like, yeah, absolutely. But we're going to have to give you an as-is price. We can't pay as much as those properties that have already been updated. Does that make sense? See, when you come at it from a point of confusion, number one, you want to act like you're on their side. Like, you can be like, oh, look, I'm so sorry. Like, you never want to become a know-it-all. Like, well, no, look at this comp, this comp, this comp. You don't want to tell them. You always want to be asking them and you want to kind of lead them to the conclusion of, look, we're simply giving you the price that the property needs to be bought at from an investor. Being able to reset the The conversation after making a lowball offer and getting the seller to understand why your offer is where it's at is the number one thing that's going to help you close more deals. Because at the end of the day, these sellers just want to be treated fair. And you need to understand, like I said, put yourself in their shoes where if you looked on Zillow, you saw your house is worth $400,000, and then you got me coming in and I'm offering you $280,000, you're going to have a little bit of shock, right? That's where you need to get good at saying, hey, look, I understand where you're coming from. Can I just show you a little bit about how we got to our number? Explain to them, look, it's a math equation, right? And you go back through and you show them, yes, the house could be worth this, but it's going to need X, Y, and Z, which is going to cost A. And in order for us to be there, we have to be at B. And once you can do that very proficiently, you're going to start being able to close deals left and right. The fourth framework is learning creative deal structures that save dead deals. Now, I am the first person to say you should not spend any time learning about creative finance, like seller financing, subject to, or novations until you have got and done plenty of regular wholesale deals first. It is important to just learn how to do a regular wholesale deal before you spend time chasing these shiny objects. Like I said, like seller finance, novation, and subject to. However, once you have become proficient in doing cash deals, it's important to be able to add these tools into your toolbox for specific situations. For instance, seller finance should be used when a seller wants too much money but their house is paid off because if their house is paid off, they don't have a mortgage on it. You actually can typically offer them more money than what is market value, assuming you're able to get favorable seller financing terms like low down payments, low interest rates. Novations are fantastic when you have a seller that has a nicer property. The whole reason we do novations is because it allows us to sell properties to buyers that are getting conventional financing like FHA loans. But the only way that works is if the property can actually qualify for a conventional financing loan, like an FHA loan, meaning it's going to meet some inspection. So when you have a property that needs a bunch of repairs, you can't just try and do a novation to be able to offer the seller more money. It doesn't work that way. Another thing to be of note with novations is they take longer. If somebody needs a quick close, they're not going to be good for a novation because it takes longer because you still have inspection periods and financing contingencies like you would have when you list the deal on the market. The only difference and the reason why people do an Ovation rather than list with a realtor is we deal with all of it, right? They don't have to deal with a realtor. If there are repairs, we'll actually pay for them and different things like that. Finally, you have subject-to deals, which are perfect when the seller has no equity, right? A lot of times people will buy a property and then a year later they'll need to sell it because they got a job across the country or whatever it is where they need to move quickly, but they don't have any equity in their home because they just bought it. In this kind of situation, subject-to can work really well because you just take over their loan right where it is. And this can lead to you getting some awesome deals, especially when you can do subject to on deals that have really low interest rates. Those make for great rental properties. However, I would not spend any time learning how to do these creative finance deal structures until you're good at wholesaling cash deals. Learn how to do cash deals first, and then once you become proficient in it, learn these other types of creative deal structures so that you can save dead deals that you wouldn't be able to wholesale otherwise. The fifth framework is knowing a follow-up system that closes deals 30 to 90 days later. Guys, when it comes to wholesale deals, it's very rare that they're one-call closes. It's fantastic when it happens. A lead comes in, you call them up, you make an offer, you get a contract signed right then and there. But it's very rare. The vast majority of our deals come from follow-ups, meaning we call somebody, we maybe talk to them about their property, but we're unable to make an offer, or we do make an offer and they decline. And then we're following up with them days, weeks, even months later until the deal eventually gets signed. And what you need to learn is you need to have a system that does this for you. Okay? I have a CRM where every single one of my leads is tracked and there are different drip campaigns depending on where it's at in their city. And there are different drip campaigns depending on where it is in the sales cycle. New leads have a drip campaign just for them. Once a new lead comes in, but it has never been contacted, there's its own drip campaign. Or once we have contacted and made an offer and maybe they declined our offer, that goes into a separate drip campaign just for people we've made offers to, they declined them. The important thing is just because a lead says no doesn't mean it's dead. The only reason we mark deals are dead is because the seller died, they sold the house, or they threatened to sue us, or the deal is in an area where we're not wholesaling, like a super rural area. But if one of those things hasn't happened, we will be following up with that lead for eternum because you never know when something's going to change and then all of a sudden they get one of our automated texts or emails that ends up turning into a deal. I don't know exactly where you're at in your wholesaling journey. Maybe you've never closed a deal, maybe you've closed a few, but you feel stuck. But what I do know is the people who master these 5 frameworks are going to close more deals in the next 90 days than most wholesalers will close in a year. And the people who keep winging it are going to keep losing deals to somebody who's more prepared than them. So if you think this video is valuable and you want to improve your closing skills, don't forget to leave a like on this video and subscribe to the channel so you never miss future content. I'll see you on the next one.