This is the continuation of the Flip2Freedom podcast transcription. In this episode, Sean interviews the nation’s #1 wholesaler, Kent Clothier, and finds out how he created a wholesaling empire – averaging over 50 deals a month.
Sean: So, typically, you would call anywhere from two to three, to five at a particular time, you would have your sales team do that? Or, do they literally call one, and if you don’t get an answer within an hour they call another one?
Kent: They’re probably going to call one or two. Out of courtesy to their customers, they are going to give them that hour to get it sold, because we don’t want to step on people’s toes. We are selling a house or two every single day, so there’s always going to be one more around the corner, we know that. We are in a business of where our buyers on average buy three houses a year from us, so our business is very relationship-oriented. We don’t want to sit there and just run them through a mill, if you will.
What we are doing is calling one or two, getting them amped up, hopefully getting them to react, nine out of ten times they are the ones that are reacting and they pull the trigger right away.
Sean: Are they buying straight cash, or do you guys provide any hard money financing at all for them? Or, are they just buying cash. . .
Kent: They are either buying cash–we do have a couple of different options for them as of recently, we’ve got some people that will help them leverage their cash. But, nine out of ten times we are dealing with cash buyers. We may teach them and introduce them to some people that will help them leverage that cash, but the way that they got into our database, and the way they landed in our lap, was about the virtue of them paying in cash for previous transactions.
Sean: And, then they sign a contract. What is the typical deposit that you get from them?
Kent: $2,500 escrow, it is hard after 24 hours. They are not going anywhere. They know that they are not going to cancel on us.
Sean: So, you get a contract, they go hard, and then they need to send that contract in. Do you have an in-house closing agent, or do you have a closing agent that is like a typical escrow company, title company?
Kent: We have a closing attorney; her office is located right down the street from ours. She handles all of our closings; everything goes there and basically, we hand off, and we are out of it.
Sean: So, you hand it off, they go through a process, close the transaction, you get the wire within a couple of weeks or whenever the sucker closes. There are two interesting points there; number one you get a lot of deals from the local banks, and obviously the HUD Home Store. But, the process is very simple, and I think that the biggest asset is having that database of buyers.
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