Wholesaling Quick Cash
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: Right. That is interesting, because there are players on the phone that are listening to us right now going, wow that is a great concept to be able to build relationships with local banks. Because, there are a ton of local banks in every market that need to unload inventory, and if you have a source that can move it quickly as is, cash, close in seven to ten days, that is an asset that you can bring to a bank like that.
Now, let’s reduce it down to one property. So, you get a property under contract, let’s say it’s with HUD homes store. Then what happens? You send in your paperwork, you send in your $500 to $1,000 deposit, or whatever the case may be. Now, you have that property tied up, with either HUD, or you get the inventory list and you kind of scan through it. What happens next?
Kent: We are immediately on the phone with one of our cash buyers. We know that we have buyers–we have a stable full of cash buyers that are ready to go. I told you that we’ve got six or seven sales associates that work in our office now; they are doing nothing but building relationships, using a technique that we call question based selling, where they are trying to understand exactly what the cash buyers are looking for, what the kind of return of investment they are looking for.
These are active people; these are not people who told us that they want to buy. These are people who are actively buying for cash right now. And so, because of that, we feel very comfortable that once we have a property, it becomes somewhat of a feeding frenzy. We just turn around and say, this property fits into the profile of what this buyer wants, pick up the phone, make the call, and it is sold immediately.
Kent: It is that fast.
Sean: Obviously, you have a database full of all of these buyers, with all of the credentials, with all of their information, what they’re looking for. So, if you have a three-bedroom, two-bath that is in a specific area of town, certain ZIP code, and it needs X amount of work, you can do a search within this database, and it will give you the buyers. Is that how that works?
Kent: We have a national database–that is exactly right–it will tell us everything that buyers have bought in our market and in other markets. It tells us exactly how much they have paid, when they have closed, everything that we would want to know at a high level about that buyer. It allows us to feel very comfortable that the people we are talking to are real. They are not the people that are trying to tell us what we want to hear.
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