In this episode, you’ll learn 5 ways you can blow your competition out of the water, even if you’re in a highly competitive market. As you know, real investing can be really cutthroat sometimes. You’re not the only one sending out postcards and yellow letters – so naturally other investors are frequently looking at the very same properties you are. Oftentimes, it feels like a mad race to get the seller’s attention and close the deal first, right?
Well here’s something that may surprise you: I’m not threatened by my competition. Why? Because I know how to beat them. And in this episode, I’m going to tell you how I do it.
The fact is, you must separate yourself from the competition, and I’ve got a list of the 5 best ways for you to accomplish exactly that. I’ll explain why these methods work, and how they’ve helped me close deal after deal before my competition even has a chance.
Seriously, you are gonna love this…
What you’ll learn
- The 5 fool-proof methods to help you beat out the competition
- The reasons why creating your own brand is so important
- How helping solve the seller’s problem will translate into profit for you
- How to crunch the numbers so you seal the deal
- What a ‘farm’ is and how to use it to your advantage
Mentioned in this episode
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Download episode transcript in PDF format here…
Hello again, this is Sean Terry from the Flip2Freedom Podcast and we are on Episode number 116 and I’ve got an awesome episode for you today. They’ll answer a big question that I get from a ton of people and that is how to beat the competition.This episode is on five ways to beat the competition in a highly competitive market. When you are marketing for sellers and sellers get multiple different postcards, a bunch of different letters and they’re inundated with other investors, how do you beat the competition? We’re going to talk about the five absolute best ways to be able to gain an edge on your competition and get that deal signed from the seller.If you’re joining us for the first time, this podcast is about wholesaling houses, flipping houses in your spare time or full time and going out making a ton of cash. If you don’t know what wholesaling is, it is a strategy that I discovered back in 2003.I didn’t know anything about, I thought in real estate you had to have cash and credit to get involved, but with wholesaling you don’t and what you’re doing is you’re targeting a very small niche of the marketplace. 95% of the people are going to list their house with a realtor.There’s a small 5% that will … They have a landlord, they had a tenant trashed the property, it could be a fire damaged property, it could be a tax default, it could be a pre-foreclosure, it could be a divorce situation and have to sell it, it could be elderly and they could be elderly and they want to get rid of it. It could be loss of job or whatever the case maybe, but the bottom line is that there’s this small niche.
They don’t want to wait 100 days on market, they don’t want to fix up the property, they don’t want to sell paying real estate commissions. What we can do is we can target those niches … Niches if that’s a word. Target that niche and a seller can call us, we can get that property under contract for a specific price.
Let’s say you have $100,000 retail value, all fixed up retail value, well we can get that property under contract for say 50,000 with a very motivated seller. Now that we have it in the contract, it’s incredibly important because now we control it. We have equitable interest in that property. Now, we have the right to be able to market the property or resell the property between our closing date.
Typically, we sign a contract with the seller for a 30 to 45 day or 90 day closing, depending. We can market that property to an end buyer. What we’re doing is looking for a cash buyer or a buyer that can use private financing. We put it out for say 60,000, what will happen is you’ll sign a contract with a buyer for 60, you take both contracts, bring them to a closing in an attorney or an escrow officer, title company whatever the case maybe and then you’re going to instruct them to do an assignment or double escrow.
The double escrow, the buyer wires in 100% of the funds, all 60 grand of which 50 goes to the seller, 10,000 goes to you. You can do this over and over and over again. You could do this part time. You do one deal a month, you could do it part time around your current job and you can make an extra $10,000 a month.
The cool thing is, is guess what? You have no money out of pocket. You don’t have to buy the house or come up with 20% down or have your credit checked. You only sign the contract with the seller and sign the contract with the buyer. In this day and age though, because back in 2008, 2009, well guess what, you couldn’t find buyers anywhere. You could pick up deals for 20, 30, 40 cents on the dollar.
Now that as the market is coming back, there are more investors coming in to the marketplace and they can’t get properties at the court house steps. REOs are pretty much vanished, so what’s happening is they’re entering into the market and they are learning how to direct market to a seller. What’s happening now is you’ve got sellers where they’re getting lots of different options and you, as an investor, have to separate yourself from everybody else.
That is the goal. That’s what we’re going to talk about, how you can create that separation. Think about this. You got a seller. They get a multiple different cards and let’s get to put yourself in their shoes. You get a seller, they want to sell their house.
They don’t want to go through traditional means, so what are they going to do, they got 10 different postcards in the mail, they got a yellow letter in the mail, they’ve seen a TV commercial with the guy on there that wants to buy their house, they open up their Valpak and they got someone in there that wants to be able to buy their house, they see signs all the streets and they have all their …
Here are their friends or neighbors or whatever selling the houses in a matter of days listing on the MLS but they want to sell and now they have choices so they turned around and they start making some phone calls to talk to some people. The initial contact is incredibly important. Now, they started making some calls and they have appointments and they have people come over and look at the house.
The first thing I can say that I have on my list here of my five, the number one … They’re not in any specific order. All of these are incredibly important. If you’re able to do all of these, you will definitely beat out your competition. If you can do one or two or three, that’s going to help you in your case, but they’re not in any specific order. One doesn’t have more weight than the other.
The first one on my list though is I have create a brand, because what happens is 80% of the consumers out there would rather do business with a brand versus just an independent dude. If they have a choice, they’re going to go with a big brand. Why? It’s because they’re conditioned, they’re programmed to do business with large, big box or brand companies.
A lot of these big companies, they do tons of marketing, brand marketing. It’s not direct response, it’s all brand-based. What we do in my business is I own the company 1-800-FAIR-OFFER. 1-800-FAIR-OFFER is actually a national brand. We sell counties all across the entire country, but in the Maricopa County, I own 1-800-FAIR-OFFER.
What we do is we market under the 1-800-FAIR-OFFER brand. When our seller or actually my acquisition manager or my sales guy shows up, he has a shirt that says 1-800-FAIR-OFFER, has a card, this is 1-800-FAIR OFFER. We don’t get the cars wrapped because I don’t like doing that. I’m not going to wrap my Range Rover and he’s not going to wrap his trucks, so the bottom line is that he walks in branded. He has a presentation on his iPad that he goes through that specifically targets personality types that talks about the company, who we are, what we do.
It basically just drips with credibility. Branding is incredibly important all the way around. We answer their phone, 1-800-FAIR-OFFER. Our logos are 1-800-FAIR-OFFER. We have our business cards, our shirts. Everything we do is based around that brand. Our email with correspondence back and forth is through the brand.
The bottom line is that we’re now competing against the independent, the non-branded real estate investor. Now, a non-branded real estate investor, we got two different people that walk up, one guy walks up, he’s professional, he hands his card, he has a shirt on, he has his iPad presentation and he’s going to walk in and he’s going to walk around the property, he knows how to build rapport with the seller.
He knows how to read their personality type, are they more of an analytical person, are they driver, they just want to take charge, they just want to have fun or they’re social consciousness that they’re worried about the neighborhood. They take charge of the conversation and really get a good grasp of building rapport with that right personality type there.
Then what they do is now they go walk through the whole house, they do a presentation through their iPad and then they make a logical offer to a seller instead of pulling a number out of the hair. Then now another guy shows up behind him or showed up before him, before Steve, my sales guy, and then they’re kind of walking in, they’re in flip flops, shorts and a t-shirt and whatever and I’ve done a lot of deals with my flip flop, shorts and t-shirt, but as the competition gets more steep, then you have to up your game.
The guy walks in flip flops, shorts and t-shirt, he walks around the house, he introduces himself as Joe Blow Home Buyers or whatever and he pulls a number arbitrarily out of the air and says, “Here’s my card or my contract. Call me if you’re interested.”
What’s the difference? If you were going to sell your house and you’re going to go with someone that dripped with credibility that could get the deal done, you want to have someone that you can have confidence that can get that deal done and close it. Then you have someone that just kind of comes in or they’re brand new or they just got started or they went to a seminar for a weekend and now they want to come out and buy their house and they are kind of unconfident.
Which one do you think is sellers is going to be with? Even if a person is seasoned and they walk in and they were going to compete against something or somebody with a brand, sellers will tend to go with the brand even if the price is a little bit lower because that confidence and that credibility.
That’s number one, create a brand. If you don’t have a brand like 1-800-FAIR-OFFER, you can create your own brand. I’ve heard other people that create their brands and it’s all on their marketing, it’s on their t-shirts, it’s on their letterhead, it’s on their email marketing that they do. Every part of their business that touches a seller, it’s in a branded state and they can build that brand.
I would say build a brand number one. Number two is offer a higher price. This is interesting because the rule of thumb in wholesaling is a couple of different things when it comes to pricing. As the market shifts, you have to be flexible in your pricing. As the market declines, you can be more aggressive. What I do to watch market trends on a monthly basis, I look at the inventory levels that are current where we are in the market.
As our inventories decrease, there’s more competition, we have to increase our pricing when it comes to securing properties. If the inventory increases, that means there’s more supply in the marketplace, now we’re going to have to turn around and we’re going to have to get properties at a lower price so we can turn around and sell them.
The only reason the property wouldn’t sell is because of pricing. That’s it. I don’t care what property there is out there, it’s just pricing driven. If you have a property that’s not selling for some reason, guess what, get the price adjusted down dramatically and sell that property quick.
We’ve got offer price, incredibly important. The majority or actually the typical wholesaling offer price is ARF, after repair value times 70% less repairs, less profit equals your offer price. For a theoretical example, you have a $100,000 house and that’s the ARV, that’s after the repair value.
70%, 70,000 less … Let’s say there’s $10,000 in repairs, that brings you down to 60,000, less the $10,000 profit that brings you down to $50,000 for that offer. You’re going to come in and you’re going to offer $50,000. In a highly competitive market, let’s say I go in, I might turn around and offer for the exact same property, I might, instead of offering 50, I might offer 65 or 70 for the same property and still be able to turn a profit.
Why is that? Because instead of doing the traditional 70% less repairs or even the other method is take the three lowest and the low comps, average those out, add them up, divided by three and then turn around and offer 80% of that number, what’s going to happen is you’re going to come up with a number, it’s going to be pretty much round your $50,000 to $60,000 number when you do that.
What’s the alternative? How can you do your pricing different in a highly competitive market? What we do is we look at all the pending properties around the area. There are a lot of pending properties and you can do this using like Redfin or you can do this using say Zillow if you want, but we look at all the … Or even MLS, you can have an agent pull comps for you on the MLS, but we look at all the pending properties, is it a high demand area.
In a very competitive marketing, you’re going to see a ton of pending properties around. Then what you’re going to look at is look at what is the lowest available property in there. What is the lowest available, because what’s happening if you’re in a very competitive where there’s lots of pending properties there, that means there’s a lot of activity and then if you look at the lowest priced available property …
You’re not even looking at sold comps. You’re looking at what is the lowest available property that’s similar within a one mile radius. That’s what you’re looking for. Let’s see the lowest available property is say $98,000 and you’ve got houses that are 120, 150, 160, 180 and you’re looking in down there and you’re going, “Holy cow, the lowest available property is say $98,000.”
I want to be at least 10% or 15% below that number. What you’re doing is now just creating your spread. I want to be able to offer a price on a property about 10% below the lowest there. You got 98,000, so if you can offer theoretically for 89,000 your argument is I am the cheapest house around the entire, in a super heart market, if you can’t make these numbers work, I can find 10 other people that will. If you can, be the cheapest available property.
Let’s say theoretically ARV there is say 120 and you’re going, “Holy cow the numbers don’t really work. How the heck can I do that?” What will happen is you’ll find, is because in a highly, very competitive market, people will jump up and purchase that property either, A, to buy and hold on to it or do minimal fix to it and they’ll stick it out on the market for a reduced price. Just trying to make real estate commissions or just trying to flip it to make $5,000 to $7,000 to 10,000 on it.
The interesting thing is you want to be the cheapest available property, so when a buyer looks at a subdivision, they look at a quarter section whatever they look at, a one mile radius and they look at all the available properties, there’s tons of pendings going on and you’re the cheapest available property, well guess what, that’s a good deal for a buyer.
You can’t do this if you’re in a market that is not highly competitive. In Denver, this is what I’d be doing in Denver. I’d be very aggressive because you have properties there, just properties alone. You got a property in the contract, you could turn around and sell it at a high price. Phoenix, very similar. Other different markets, very similar.
When you’re looking at that, you want to be strategic and you want to know the days on market for properties and the inventory levels. If you have days on markets that’s under 30 days, that’s an aggressive market. That means it’s very highly competitive. If you have days on market that’s 90 days, well guess what, then you’re going to have to offer a lot better price for your property on that.
You can offer higher. Like I said, if someone else goes in at 50 grand and you can go in at 65, 70 grand, you will get that deal. I can guarantee it. It doesn’t matter if you’re a brand or not, you’ll still get that deal because you can be more aggressive in your pricing especially if you have a good buyer’s list.
The next one in number three is you can close quicker. This is interesting. Let’s say you got two different investors, they walk in and one guy says, “You know what? I’ll give you a $70,000 …” Or it could be 470, it doesn’t matter what the price is, it doesn’t matter if you’re in California or whatever you’re at. Let’s call it theoretically $70,000. “I’ll give you $70,000 and let’s write a contract and we’ll do a 35 to 45 day close.”
The guys goes, “Well, that sounds good. Let me think about it.” Then another guy comes in, me, I come in and say, “Listen, you know what? 70 is a good number, but you know what? What’s the best price you can do if I can commit to closing this thing by next Friday?” You shut up and the guy goes, “Wow, yeah.” “I’ll sign the contract. I’m the one that’s going to write the check. We’re going to close next Friday, but you know what? I’m not going to do 70 because I can buy houses all over the place also, but what’s the lowest you can go?”
Then the guy goes, “Wow man, if you can close next Friday, well maybe I could do 65.” Then you come back and say, “Listen, I’m closing next Friday. You know what? 65, how about we do 62.5 and it’s a deal?” You sign it, so now the other guy offered 70, you’re going at 62.5 because you can commit to close sooner. That gives you a ridiculous edge over the competition because you have the ability to close quicker.
Here’s the thing. What if you don’t have a check that you can write and close on it? What if in having a week time frame to be able to wholesale a deal is pretty difficult, so what can you do to be able to put yourself in a position to be able to close on a property quicker?
The first thing you can do, number one, is become close friends and work a deal with a private money lender where you can secure a property and you secure the property in both to your names, so he has controlling interest, you have controlling interest for the purpose of flipping the property and splitting the profits 50-50.
Think about it, you would lose that deal, but today because you can come in and you can close quickly on it, then you can turn around wholesale and you can flip that deal and you can make a profit. If you think about that, if you can go in and you make a deal with a hard money lender and you say, “Listen, you know what? You turn around and get it to 62.5 and you’re going to turn around and you’re going to sell it for say 79?”
It opens a profit, you get that deal that nobody else gets and it’s literally you sitting down with a hard money lender and say, “Listen, I come across these deals. Am I typical contracts with 30 to 45 days? If I could go in there and I could close in a matter of a week and we can both be on title, I’ll do the work, I’ll do the marketing, I’ll negotiate, I’ll get in the contract, we’ll get it in under contract under both of our names, we both have controlling interest, you fund the thing and then we’ll turn around and wholesale it out to my list and split the profits.”
A hard money lender will be all over that. The goal for you is to have enough capital to where you can have $200,000 or $300,000, $400,000 in the bank and you can be able to go boom, you can pull that trigger. I’m in the process of putting together my own private placement where I’m going to raise five million dollars and have my own hard money fund in transactional funding fund, I guess you could say.
We’re putting it together that right now, we’re going to be launching it around the first of the year. When it comes to do that, I’ll be able to, with my sales guys, be able to come in and move very quickly on deals. We move quickly on deals anyways. If it comes down to a time frame, I’ll tell him we can close in a matter of a week anyways because I can get the deal done.
Still, to be able to have a fund, to be able to make that happen and also to be able to lend money, hard money, it’s a great way to also create another revenue source but able to move quickly on property. Closing quicker is crucial.
The next one, number four, is create a farm. What is a farm? A farm is used, in a realtor’s term, is essentially what you … My phone is ringing off the hook here. What you do is you are going to own a specific area and what Realtors do, they farm a specific area so all their marketing is completely focused in the area.
I teach in the Flip2Freedom Academy and I’ve done coaching calls on it. There’s a way inside a list source you can go in and you can actually target and actually pull a list of the top investor friendly zip codes. You can pull a list of the top investor-friendly zip codes. I’ll actually give you a web address that you can go to and I got a video that you can watch. I’m going to show you exactly how to do it’s pretty killer…
It’s the top investor-friendly zip codes. In this particular case, what happens is if you know the top three to five most active investor zip codes, what can happen is now that can be your farm. All your marketing is happening within those five zip codes, your direct mail, it goes to everybody that has at least tenure ownership. For pre-foreclosures, it’s going to all those people. For tax defaults, to all those people. For divorces, to all those people in the zip codes. Bandit signs are in those specific zip codes. Billboards are in those specific zip codes.
If you’re going to do like a Valpak campaign, it’s in those specific zip codes. What you’re doing is you’re owning it. Owning that specific area and you’re going to just over saturate that anybody in that area that’s going to sell a house, well guess what, they are going to come to you because if you do …
Like Maricopa County is a gigantic county, my total available marketing list is about 300,000 to 400,000 names. You’re cranking, we dropped 100,000 mailers a month that takes us about three and four months to go through those names. Our farm is pretty much Maricopa County, but guess what, I could really narrow down to the top five to 10 best, highest demand zip codes and only target in those specific codes if wanted.
For me, I target everybody, but if just getting started out and you want to own area, like if you’re in L.A. or maybe Chicago or if you’re in parts of Florida, whatever, Texas, you can own three to five different zip codes and target all your marketing right there.
Number five, this is incredibly important, because number five is about you filling the need of the seller. Let’s think about it. You’re going to walk in, you got one investor and you got another investor. One investor, you got investor A that walks in, he walks into the house, he walks around, he shakes hands with the seller, he talks to him, he looks around the house, he says, “Okay, I can give you $80,000 for the property.”
Then you have another investor that walks in and he’s walking around the house and while he’s walking around the house, he’s talking to the seller. He’s asking questions like, “How is it going? So, tell me Mr. Seller, what’s the reason for selling?”
I only go, “Well, you know …” This and that and give this long drawn out story and then they go, “Mr. Seller, what would be the ideal situation or anything that’s kind of holding you back, you’re kind of nervous about when it comes to selling? Well, I’m kind of nervous. I don’t have any family here and there’s a lot of stuff in the house. I’ve never really moved. I haven’t moved for 30 years. I’m really nervous about the whole moving process and being able to get out in time and all that type of stuff.”
Now you’re sitting there, you’re talking to them and they’re nervous about selling or maybe the seller says, “Hey listen, I’m strapped in cash, so I need the money to be able to go locate another property or another rental and if it’s on closing day and I’ve got to move out over the weekend, I can’t be able to do that.” That makes me nervous.
They’re not going to talk to the guy that’s just walking around the house, shakes their hand and gives them a number of $80,000, but if you walk in there and you are sincerely interested in them and solving that problem, you will get that contract even if your price is lower. Why? Because you are filling that need.
Now, with the seller, you’re in a situation and the seller goes, “I really have apprehension about moving.” You say, “Listen, what if we did this Mr. Seller? What if we sign in the house, we get everything done and what if I had a crew come over. Obviously you’re going to have to pay for it because obviously it can’t be, but we align the crew to come over and what they’re going to do is they’re going to come, they’re going to pack up the whole house for you, they’re going to be with you. I can actually be here and help facilitate if you want and help you pack up the property and load up a truck and then help move to your next location, would that be of interest for you? I can help facilitate the whole thing. There’s great moving companies out there that I have worked with before, I’ve referred before. They can help you basically wrap up everything in the house, takes the incomplete burden off you and be able to help you move in to a new apartment, a new house or whatever you like, is that sound fair?”
Then they go, “Oh yeah.”
“Actually, you can write that in the contract. I will put that in here for you and I can help you out.”
Now you have a situation where you have the seller, they need the cash, “I got to have the cash before I can move. What do I do?” You say, “Listen Mr. Seller, why don’t we do this? What if we structure the deal to where we closed on the property, we held 50% of your funds in escrow and dispersed 50% to you? Then you had a week to be able to move out of the property but you’d have funds to be able to secure it. As soon as you gave possession, you gave keys to the property, then the balance of the money would be released, would that sound fair?”
“Oh my gosh, that would be incredible if you could do that. That would be great.” “Okay, first to be able to do that, obviously we’re going to have to work on pricing and stuff, so here’s where you can be to be able to make that happen. I’ll even write in the contract and we’ll both sign off on it so we will be good to go.”
That is a great way to be able to negotiate. There’s all sorts of different situations that sellers have. It might be a divorce situation where the husband and wife don’t want to talk to each other. What you do is you can facilitate the transaction between the two and be the communicator, almost like a marriage counselor. I’ve done that before.
There’s situations like … Steve was out at an appointment today with the seller and the seller is literally paralyzed from his neck down. We’ve got to be able to structure a deal to be able to help the seller move and be able to get out of the house in a timely fashion because they’re moving back east with their family members. They have family members coming out but they need capital to be able to do it so we have to structure a deal accordingly.
We have other sellers where they have loans in place on the property, there’s limited amount of equity and they want to be able to do something with the property. There’s ways to structure that. Obviously I teach in the Flip2Freedom Academy, but the bottom line is that how you structure the deal is incredibly important.
I want to talk real quick back to zip codes. If you go to flip2freedom.com/zipcodes, there you can go and you’re able to watch the video on exactly how to pull the zip codes for free out of list source and know the highest converting zip codes at flip2freedom.com/zipcodes.
I’ve got some … Competition freaks people out. Competition, they’re like, “I don’t know. I can’t do it. I have five other investors and especially if you’re brand new.” It’s kind of difficult, but just know this, your timing is impeccable. You did not want to get involved in real estate in 2008, 2009, it sucked. Now is the time to get involved because, guess what, sellers …
Motivated sellers want to sell and cash buyers want to buy and this is a great time to go out and make a ton of money. Don’t let competition stop you. Here’s a great clip I found in YouTube. I’m going to actually play the audio for it but it talks about competition and just like …
The competition is almost like a game. In sports, there’s competition. You either can step up with passion and go after what you want or you can kind of cower and go, “I don’t know in competition …” Then quit and not do it, so you got to listen to this. It’s awesome. It’s about a minute and a half or so and it’s a great inspirational, motivational clip on competition.
Audio Clip: Here’s the thing that makes life so interesting. The theory of evolution claims only the strong shall survive. Maybe so. Maybe so, but the theory of competition says, “Just because they’re the strong, doesn’t mean they can’t get their asses kicked.” That’s right. See, with every long shot come from behind underdog will tell you is this.
The other guy may in fact be the favorite, the odds maybe stacked against you, fair enough, but what the odds don’t know is this isn’t a math test. This is a completely different kind of test. One where passion has a funny way of trumping logic. Before you step up to the starting line, before the whistle blows and the clock starts ticking, just remember out here, the results don’t always add up.
No matter what the stats may say and the experts may think and the commentators may have predicted, when the race is on, all bets are off. Don’t be surprised if somebody decides to flip the script and take a pass on yelling uncle. And then suddenly as the old saying goes, we got ourselves a game.
Sean Terry: I love that clip. We got our self a game. What I like about it is … Back when I was a kid, back in Vermont, you’re playing around in your rough house and when you’re 4 or 5 years old and your friends, you take their index finger and bend it all the way back until they say, “Uncle.” They start screaming and then you win and you got it. You got them to say uncle and you beat them and you beat that competition.
It’s the exact same thing in this business. People get started and they get started and they go, “Well, I’m excited. I want to become successful. I want to do it.” They send out 500 post cards and they get 10, 15 calls or whatever the number is and they go on appointment or whatever and another investor outbids them or if something happens and they go, “Well, I tried it and it doesn’t work.”
People do that about new opportunities. They do that, they come in, they go, “Oh I really want to do it.” They’re excited about it, but when it comes about taking effort to going the next mile, to going that next step, “I tried and it doesn’t work.”
Here’s the deal. Listen, if this was easy, everybody do … Everybody would do it. There’s no way … I have a high school education, never went to college, I joined the Marine Corps when I was 18 years old, went to the Gulf War in 1992. I read a ton of books and self-educated, but the bottom line is that I’m not the smartest guy, but guess what, I’m tenacious.
If someone says I can’t do it, I’m going to do it anyways. My father-in-law said, “This can’t be done.” I talked to a Realtor and he said, “There’s no way you’re going to get these deals. All the more professionals get those deals.” People I talk to said, “This is crazy. You can’t do that.”
When I started to podcast, people were like, Why did you start a podcast giving all your content away for free, giving all the information away for free is going to create competition. I don’t believe in competition. I believe in abundance. The bottom line is this is that people want to start something, then they listen to other people’s opinions. They don’t have an opinion themselves, they listen to other people’s opinions and then they give up on their dream.
I make more in a month than the average person makes in like, I don’t know, six years, five, six, seven years, whatever. A crazy $100,000 a month but the bottom line … It’s done through wholesaling houses, this business and you can do it. You have what it takes to make it happen.
You know why I know? Because I know me. I’m not the smartest guy out there. Believe me. There’s people I ran that walk into and ran into and I’m like, “Man, that dude is smart. If he got in this business, he’d kill it.” They’ve either run businesses before, they are super intelligent and they can come in this …
There are people that listen to my podcast that come in this thing and they get up to $100,00 a month in record time. What it took me years and years to accomplish, they do it just like that, because they’re smarter, more intelligent, know how to run their business better.
I don’t know, but the bottom line is we are the perfect time. Get a backbone, step up on your dreams, go after this thing with a vengeance like you’re going to go in and you’re going to make it happen no matter what and you’re not going to give up. I don’t care what happens, you’re going to give it everything you have. Everything you got to make it work.
Listen, we’re not talking about … We’re talking about finding a motivated seller. It’s a number’s game. You don’t have to be smart, I’m proof. It’s a number’s game. The more people you talk to, you will find a motivated seller. It’s called the lay down. You get it under contract and if it’s at a good price, you put it out to the marketplace, you will find a cash buyer and you can make the spread.
Once you realize it’s only a number’s game, you’ll get it and then it just becomes strategically increasing those numbers and strategically following up with those leads and being in the right place at the right time so when they are ready to sell, they call you. There’s a way to do it and you can do it through creating a brand, you can do it through offering a higher price, you can do it through closing quicker, creating a farm and filling the need.
Here’s the deal. If you got two different investors, you got investor A, investor B. Investor A walks in the house, he walks around, there’s no branding, he does … He walks around the house, looks at the house, talks to the seller, builds a little rapport, not deep rapport, a little rapport and says, “Okay, I’ll give you $80,000.” Fills out a contract, gives it to him and doesn’t try to close them, doesn’t try to get the deal done and then says, “Okay, I want you to think about it and call me back,” and walks out the door.
Then I show up or one of my guys show up. They walk in, they’re professional, they’re branded, they have a card to show them, they got a shirt that they’re wearing, they walk in, they’ve had a good experience on the phone prior to that. My guy walks in for the sole purpose of building rapport with the person, they find something in the house that they can make a connection with. They listen to what the seller needs, they ask the right questions with the seller.
They walk around, they know their marketplace better, they know where we are in inventory levels, they know where we are on days on market, so they can offer a strategically higher price that still makes sense to make a profit. Then they find out exactly what the seller needs and they structure an offer in a way where, guess what, the seller can get what they want and they feel great about making the deal.
Then when it comes to closing and sitting down and breaking out the contract, they don’t go, “I will think about it.” You don’t think about it, you got to help them make a decision. We’re closing the deal. They’re going to go in and they’re going to close the deal. They’re going to negotiate and they’re going to be tenacious and they’re going to walk out with the contract. That’s how you can differentiate yourself how you can beat the competition twice on Sunday. It doesn’t matter. You can do this and it’s about becoming a master of your game.
I hope this episode has done you well. Listen to it over and over, because guess what, you want to be the guy. You want to be investor B that walks in there and you want to go in there professional, knowing specific exactly where you need to be, where you can sign the contract and go in there, read that personality type, be able to structure a deal correctly, offer a quick close if you have to and get that deal under contract.
Go to flip2freedom.com/zipcodes. There is a video on there and on that video, it will show you exactly how to uphold the highest investor active zip codes in your marketplace for free. I will see you in the next episode next week for episode 117. We’ll talk about more killer stuff. Until then, have a phenomenal week. Take care and God bless.
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