Join My Luxury Wholesale Coaching Call For FREE // Tyson Smith & Matthew Tooker

Would it be advantageous for me to just concentrate on contacting sellers and then turn it over to you guys? You'll find the buyer for me. We'll split the deal.

It's a double-edged sword. I mean, here's the thing. While yes, you know, if we're thinking about the future here, you're going to want to have buyers, right?

Right.

And building those relationships early is going to be really helpful. And something that it's kind of a— I don't think we've done a good job of communicating is that finding a buyer and assigning it is like 33% of the battle. 33% is getting a seller, getting it under contract. 33% is finding a buyer and assigning it. But there's another 33% that's actually getting the deal closed, right? Just with the title company and everything like that. Now, these deals are a million times cleaner and smoother than, you know, traditional deals from, you know, regular wholesaling or anything like that. But with that being said, there still are things that come up, and, um, that's where our expertise is huge. We had people bring us deals that they already have assigned, and they still want to give us half because of how good our team is at just actually getting deals across the finish line. When it comes to this, this, uh, ménage à trois of dealing with the seller, buyer, and title company, and then sometimes also lenders and stuff like that, We're just really good at making it work. Um, but to answer your question, look, yes, you absolutely could just focus on getting sellers, but the whole thing is we really are efficient. Like, this is a very efficient business. Of the, the, the 3 primary things that we do between analyzing markets, building connections with the buyers, and finding sellers for those buyers, they can all just really be done in tandem at the same time. So look, get any low-hanging fruit, right? Like, as you're coming through and you're pulling lists and you're looking at comps and you see, okay, there's this new build property that's for sale for $4.8 million, and you can see, hey, the builder's name is right there in the description, might as well give them a call, you know? Yeah.

So makes sense.

I mean, you're going to want to have those, those developer relationships. Like, look, Doug, if you want to go ahead and do 10 deals this year and JV every single one of them with me and Matthew, we are not going to stop you.

I don't want to do that.

I don't want to go on your own, and we know that. So it still is a good idea to start building those relationships.

I do have some experience. I've done wholesale, I've done retail, I've done rehab, I've been a landlord, I've done lease option, subject to, but I haven't done anything for 10 years. Okay, so I'm rusty. I'm, I'm rusty. I'm starting over here. I also want to compliment you guys on your program. I've been in a lot of programs, uh, the way you guys respond when someone— when we're in the, uh, Telegram, when The way you're always adding value. I'm just saying, I've been in other programs that once you sign, see you later, you're on your own. So I just want to say I appreciate you guys are very professional and I like what you've got here and I plan on doing a lot of deals.

Well, Doug, I really appreciate you saying that. And I mean, this is why— I mean, there's two things here. We're so confident in our program. We know our process works, but also like we want to see you win, right? That's why we put this 90-day guarantee on our program. Is we know that if you do, you know, the bare minimum here and you have the access to the right resources, the system works so well that it will work for you. And so that's why we're here inside the boardroom to get you the help you need. You know, like, that's our— you know, we want to be there for you and, and, um, to make sure that you get your questions answered.

So I do have a couple questions about, um, contracts. So if I have a guy right now who is looking to sell around, uh, I think he said July, August. If the stipulation that I put in the contract is for him waiting 6 months, does that go in the contract or do we just wait? How does that work?

What do you mean waiting 6 months? You said you want July or August?

Yeah, obviously that's not 6 months.

Sorry.

But he wants to wait a couple of months until he sells the property before he moves out just because he wants privacy and all that. Um, does that go in the contract or does that— do I just wait on that?

Well, so it depends on exactly what he wants, right? If he's just like— if he's waiting until then for a certain reason because that's when he wants to move out, in a perfect world you just set the close date to be then, right? There's no reason you can't get it papered right now.

Okay.

And you just put the close date to be in August or whatever it is he wants to leave. However, maybe he's in a situation where he wants to get paid now But he wants to be able to stay in the property. That's where you use the seller in possession agreement.

Okay.

That was my second question. I assumed I would just set the closing date in escrow later for the first question, but yeah. So thank you.

How's your pipeline looking?

Good, man. I just got another deal in Raleigh. I'm assigning right now.

Heck yeah. Yeah, man. What's one of your closings coming— I know you have a couple of closings coming up in the next—

Yeah. That Charlotte deal's finally coming together on the 22nd. So that's a week out. It's like a 7-day $85K spread, or $85K. I'm paying like this agent that managed the whole fucking shit show that it was, uh, feet on the ground for the move with the seller.

Uh, so it was $160K spread that you're splitting?

No, that's the— that's West Palm Beach, right? That one's still— so we actually— the, the buy— there was whatever. Every deal has a little bit of a story, right? But, uh, the long and the short is that it's actually on the— we put it as an Ovation, um, on the market, and I think we're gonna move it probably relatively what we were gonna sell for off market. But, um, that one's not— that one's not done yet. But yeah, Charlotte's closing on the 22nd. Um, we've got our deal, um, so what was that, $115K spread together, um, for Phoenix on the 8th. I've got, um, yeah, the West Palm Beach that I'm still working on. What else do I have in the pipeline right now? Fuck, man, I I like forget sometimes, like, gotta look at my numbers, man.

It's a good problem to have.

No, it is, totally.

Do you have some solid developers in Raleigh?

I do, yeah, some really good ones, man, for sure.

We have some, uh, we have some stuff we're looking at. I'll send them to you later to see.

Okay, great. Yeah, definitely, 100%. And then anything in South Florida, man, like West Palm Beach, Boca, Fort Lauderdale, Tampa— that's not South Florida, but whatever— Tampa, Sarasota, Um, is good. And then, yeah, Charlotte as well, obviously, um, in North Carolina. So, and Atlanta and DC. This one thing you got to be clear, this is what I'm noticing too, guys. I know you've probably dealt with this a lot. By the way, Matt, are you like in the ocean, man? Like, where are you? Look, you're like in the— you're like vanilla sky, bro. Yeah, wow, let's go, dude.

He's in Newport.

Nice, man. Is that what you're saying? You're saying right on the ocean?

Yeah, it's a hotel. They just redid it called Surf and Sand.

Oh cool.

Yeah, I've stayed there. I've stayed there. I know that.

Yeah, yeah, yeah. I mean, the views are out of this world. Opening up the screen door at night and just hearing the waves crashing is a good little R&R.

Like with some of these guys, dude, they try to bait and switch it. Yeah, I'm a developer. Yeah, I'm a builder. Yeah, and they're just fucking wholesaling, dude. We had this deal with this dude in Raleigh. He, again, whatever, he, he put it together, but it was like his intention yesterday, I'm buying it, I'm new in developing, building, I'm bringing on a partner, we're doing this. Oh, now the story has changed today. Oh, but I have a buyer at $650,000 when he was going to buy it at $635,000. I'm like, listen, bro, I'll give you $10,000, but moving forward, if you're not an end buyer, we don't need you to shop our deals. All right. Like, straight up, just tell me what the deal is. You're going to buy it? Cool. If not, we can figure something out. But I'm not doing this whole, like, daisy chaining bullshit.

You are going to run into that, and it's good to be wary of people like that. One thing I always try to do is find out, okay, what's the company? Look it up. Try to get a proof of funds from them if possible, to try to vet them out to make sure they're not a wholesaler. Because one thing I've found On the normal side of wholesaling, you almost are okay with anyone seeing your deal. You just want someone to buy it. But a problem that you can run into in the luxury space is when developers start to get your property that you have under contract sent to them from 3, 4, 5 different people, it devalues the deal in their mind. Even if your price to them was better than all the other prices they have gotten, immediately in their mind— and I believe this is touched on in the developer interview that we have, but he's like, when all these different people send me deals, it's too much of just a cluster. And I, I don't know who has it. It looks like there's 4 different people that have their hands on it. I don't want to deal with all that crap. I'd rather just deal with one person. And they'll just move on from a deal just because they got it sent to them from 4 or 5 different people, which is why I'm putting together right now, uh, a guide essentially that'll say, hey, in week 1 of having a property under contract, you should be sending to only developers that have listings for sale or sold in this area. Week 2, you can start to reach out to agents of those developers and go through them. Then finally, on week 3, if there's other wholesalers or people that say they have connections to developers, at that point you're in your last week of inspection period or something like that. I, I'd say throw all the cards on the table and try to get as many eyes on it as possible, and maybe you'll get something done. But I think having a cadence for people to look at and be like, all right, here's what we should do the first week, here's how I can vet these people, and then week 2, here's who I should send it to. Because occasionally you're going to call a developer, he doesn't get back to you, there's some like, he's, he's busy. You call his agent and immediately it's like, bam, yeah, my guy would be interested in this. They get a hold of that developer and move the deal for you. So we're going to put together a sheet that's essentially a cadence, um, of how we like to send those out, kind of in, in order from what we've done historically.

Perfect example is a deal I just did with Tyson Smith and Matt. I said, you know what, I got this. The seller was difficult. I didn't want to go out and just, you know, try to deal with this whole thing and then try to disco myself. I said, hey Matt, will you go and just walk this and, you know, talk to the seller? He went and did it. Made it happen. Now we've got $115,000, you know, assignment that we're putting, you know, that we're, you know, closing on. Great. Like, you know, this is what makes— this is the value in, you know, in being here. This is what I signed up for.

Just about what we talked about with texting, um, so this is something that, that Matthew explained to me, and I was like, oh, fuck, because I began— I come from the world of traditional wholesaling where it's, it's a much more grindy, hustling type of thing where like there are certain things of like, uh, for instance, when I'm sending people a text, I always thought of a text as an invitation to a phone call. Like, I'm not thinking, oh, I'm going to sit here and text back and forth like schoolgirls. I want to get them on the phone so I can get a deal closed. And Matthew's like, no, like, why? These people want to talk over the— they want to text you. Just text them. And I'm like, really? And then I start to look, and he's showing me all these, all these deals he closed because just all entirely over text, right? So yeah, um, I want you to talk kind of about that cadence. Um, and then also, just while I'm thinking about that, quick little thing is if you've watched any of my other videos or my other sales trainings, I'm like— another bad habit I have from traditional wholesaling is trying to get people to sign contracts immediately. If I get a verbal yes, I'm trying to send them a contract and like will do anything in my power to get them to sign a contract right then and there on the phone. And where it's like very pushy. We don't want to do that here. Okay, we find it, send them a contract, let them review it, whatever. Um, and I, yeah, because I need to, I need to make a training. I'll probably make it like a PSA tomorrow, um, on that in the community, but I want you guys to hear it as well. But yeah, Matthew, if you could talk to him about the texting cadence of like, because obviously you're not going to sit there and just text every single question that's on the phone script.

Yeah, so my— just over the last 2 years, I would say 30% of my deals I've done completely over text, never talked to someone on the phone before. And the reason for that is some of these people are so busy with their normal lives, they have people hit them up on a normal basis, and they would rather just keep things simple and over texting. So the way I kind of pivot to just doing texting is if I'm talking to a seller and I can clearly get, um, okay, I've called every time that I text them something and then try to call them and get them on the phone, they never answer, but they always text me back right away. It only takes 1 or 2 times of that happening for me to go, okay, this person doesn't want to talk on the phone, they want to do this completely over text. Or if I'm trying to make an offer on a property and I'm trying to call someone multiple times and I'm not able to get through with them, but then they text me back, I just completely shift to doing it only over text. So I prevent— I present offers over text. I present my key questions that I have, whether it be an easement on their property or something like that. I'm going to be putting out a training in the school community that you guys will get access to of kind of when I transition to texting and then how that cadence goes with these people, how I present an offer via text. Because when you're on the phone with someone, it's a lot easier to get the point across, hey, our offer is going to be here, there's no closing costs. Keep in mind that if you were to sell on market, here's what you'd pay, and you can explain that better. But I have a way that I send people offers that I'll put the purchase price and then parentheses, I'll put what that would equal to if they had sold on the market. And in all these different sections of the text, in the way I send it to them, um, it's laid out with the purchase price, the close of escrow, any additional terms, the earnest money, and they can get a clear and concise picture of what it's going to look like. And they can also see when they read a text like that from me, okay, this is the same as if I sold for $3.65 million on market, even though they're offering me $3.4. After all the fees and everything. So there's a way that you can go about completely texting people to get deals done, and some of these people just straight up don't want to talk on the phone, and that's okay. The more pushy we are just calling someone over and over again, it hurts these deals big time. When the person hasn't answered your last 4 or 5 calls but they're texting you back, that should tell you something, and that should tell you that I want to go just the texting route. With this person. So I'll be coming out with the training. There's going to be a PDF that will show you kind of how I talk to these people, how I present an offer to someone. And the more professional and pretty the text can look, the better. A lot of people get into the, the habit of they have 4 or 5 questions about a property and they send 4 or 5 individual texts, and that's just information overload for some of these people. So there's a cadence where I'll ask them one specific question and I'll explain why I'm asking this. I'll say, hey, I have a couple of topics I need to cover with you. I'll make it as easy as possible. And the first one I'll send, hey, we need to know whether or not the property is on septic or sewer and whether or not it has gas or electrical. The reason we need to know that is XYZ. And then I'll send that text and they can literally say, respond with gas, sewer. Okay, I got those two questions answered. Now on to the next thing. And you can keep it very simple with these people. The last thing you want is for them to have to be exerting energy and work into having— the more simple you can make it for them, the better. If they feel like they need to send you back a massive paragraph response to your question, it's something that they're probably going to be like, yeah, just, I'm not going to deal with this. I get these texts all the time. So when you can differentiate yourself and make it a simpler process for them, it just becomes— your odds of getting that deal done are astronomically higher. And some of these people, as much as you have phone fear calling some of these people, sometimes these people just don't— they don't like talking on the phone with people. They're used to— they don't want to get stuck on a 30-minute call where someone asks them all the same questions and then never provides them an offer, which maybe they've had that situation happen before. And then occasionally what will happen with me is as I get into the conversation with someone over text, and I present an offer to them, at that point they'll want to get on the call with me because they go, this guy's dialed in. He was able to present exactly what the offer would look like. He asked me all the right questions. Now it's worth me getting on a call with this guy. And a lot of times people will start to pick up your calls or want to get on a call to review everything. And I usually give people the option to that. So at the end of me texting them an offer, I'll say, if you want to jump on a call to go over any questions, that you have about what this would look like, feel free to shoot me a couple times that work for you and we can do that. And if they say, oh, you know what, here's my questions and just text them to you, just keep it over text. Or occasionally after someone has seen something professional in writing like that, they'll say, okay, let's jump on a call and go over a few questions that I have on it.

Go ahead.

Gold, dude. That's gold, man.

How about this?

Can you just dump one of your, like, a few good examples of like back and forth you've done on SmarterContact and just put it in a freaking PDF. I'd love to just read it so I can be like, oh, they're going to ask it because I don't know what people would ask me and I'm not going to be prepared.

I could do a Loom video just going through a couple conversations that I've had start to finish with people completely over text on SmarterContact because I've had multiple deals and I've had deals. You guys are going to laugh when you see some of the texts I've sent sellers messages before. And said, "Hey Don, I wanted to see if you had interest in selling your property." And I get a response back that says, "Don was my late husband who passed away. I'm not interested in selling." And then that turned into a $150,000 assignment fee 2 months later. But you'll see the whole entire cadence that I have with this person. This was an older seller that I never talked to on the phone, not one time. She didn't like to pick up the calls. She liked to get back to me at her own time. Sometimes it took a day or 2, but I wasn't pushy with her because if you hit them up over and over and over again, they're eventually going to go, okay, this person is just overbearing and it can cause you to lose the deal very quick. So you have to toe that line. But yeah, I'll put together a Loom video of a screenshot of a bunch of conversations I have with people along with the PDF showing you guys kind of the cadence of how I talk to people when it's completely done over text. There's one thing I want to leave everyone with before we're off And this is something that over the last year I've really developed and it's helped me a lot in terms of lead flow. This is totally different than everything else that we've talked about, but a great source of free lead flow can be from developers that you build relationships with. What does that look like? These developers can send deals on a daily basis from other people. It can't— I wouldn't say go straight to the talking to a developer about this, but later down the line of becoming close with the developer, you're talking to them often, say to them, hey, you get sent deals all of the time. From now on, any of the deals that you don't want that you get sent, pass them off to me. You know that one, that's a good lead of that either someone has tied up already or that you can go contact in 2 to 3 weeks. And go lock up that deal, or you might have a buyer for that deal and you can tell the developer, hey, I'll split. And I'm very generous with them. I'll say, hey, I'll split my fee with you 50/50 if I get a deal done from it. And I've had multiple deals in the last 3 months that developers that I sell deals to have sent me an address and said, hey, someone just sent me this at 2.1. And I'm like, okay, I'm going to go. I have another person in that area that was looking to buy. I send it to them at 2.2 and they say, "Hey, we're good to go." At 2.2, I tell that developer, "Hey, hey, get it under contract and assign it to me." I actually do all of the paperwork for him, by the way. The less work these guys have to do, the better. I'll literally make the assignment, send it to them on DocuSign to me and do all the work for them. Or I'll even pay them on deals where they send me an address and I add that to my pipeline. I reach out to that seller in 2 weeks and go get that deal done. And 2 months later I'll text that developer, hey, got a deal done on a property you sent me, here's $25 grand, and send it to them. And I promise you, the first time you pay a developer on one of those, they are going to start sending you every single deal that they get sent that they don't want. They might be full on their capacity for building right now and they say, hey, we need to wait till a couple of our deals sell before we can buy anymore. And they send you something, hey, if I had the funds right now, I would buy this. See if you can move it. And you can start to have synergy with these developers where they have another reason to talk to you, and that can be to send you a deal because they know all they have to do is send you, uh, an address and you can go get a deal done. Or maybe they have homeowners who called them because they saw they're doing builds in the area, but they— that deal wouldn't work for them, and they can pass that off to you. So I actually have a couple developers now that call me their acquisition manager. And when a seller calls them or someone, they say, "Hey, go to my acquisition manager. Here's his phone number." And they'll send me deals and I'll get deals done from that. And then I'll— you just have to make sure that you don't let greed get the best of you and don't pay that developer on that. Because if you do pay them, they go, "All I have to do is copy and paste the text to this person and I can make money." And all of those leads that they're getting are very motivated people because either someone has it under contract or someone's working it. In the background, and it's just a great way, um, after you build a relationship with a developer, that you can make them a little extra money and that you can be getting a bunch of extra good motivated leads.