Transcription
I spent $78,000 last year on different wholesaling courses, coaches, and mentorship programs. And as a result, I did end up making $260,000 while I was still 17 years old. That was not without struggle. Despite all the money that I spent on these courses, there were still a lot of lessons I had to learn the hard way through months of trial and error, which is exactly why I'm making this video. I want to just give away everything I spent 78 grand in the past year of my life figuring out so that hopefully you don't have to spend as much money and time as I did and can instead just learn from my mistakes and copy what I'm doing now that's allowing me to close multiple 30 and $40,000 deals like these every single month.
With that being said, I've broken down everything I've learned from all the money I've spent and experience I've gained into five main lessons that each drastically changed the way you wholesale real estate that if I had known sooner would have saved and made me hundreds of thousands more dollars. uh with number three and five specifically being the most important.
But in terms of lesson number one, wholesaling nationwide is always better than wholesaling in one local market, especially if you're a beginner. The reasoning for this is very simple. When you do what most people say to do, where you only work in one local market, like your backyard, you have a supply and demand issue where the supply of motivated sellers is significantly lower than the demand of investors and wholesalers that are actually trying to get deals. Because in any given market, there are thousands of other wholesalers that you are competing with to get deals and to talk to sellers because of how popular this business model is and because how many people are selling courses on it. But the issue is that the supply is very narrow. Because if you think of this like a pie, right? And the entire country is a pie and all the deals that are available. When you work in only one market, you restrict yourself to a very small geographical area, a very small piece of said pie, right? And because of this, because of how small the piece is, yet how dense it is, cuz most of us live and are wholesaling in metros, you create a lot of competition because there's just not enough to go around. And so because of this, when you have so much competition, you run into extremely high marketing costs. Where if you're doing inbound marketing, it's $100 to $1,000 per lead that you want to be generating. And if you're doing outbound marketing, it's going to take way more calls or way more texts or way more mailers to actually get those deals because the sellers that you are going after and trying to get deals on, there are hundreds of other people also reaching out to them every single day. What this creates is a very tight margin business because of how high the cost per lead is and how hard it is to actually convert these leads into deals. Because the thing is, when you're in these metro areas, these sellers are very sophisticated and they have so many people reaching out to them that they're always talking to five to 10 companies at any given time and price shopping to see who's going to get them the highest bid and highest price for their house.
So, what this means is that the only way when you're wholesaling in one market specifically to actually make the numbers work and to make it profitable is you have to run in-home appointments. All of the guys crushing with the local model run inhome appointments because when you go inh home there's so much more trust since they can see you in person, they can shake your hand and you can build so much rapport with them that because of that you're able to get much deeper discounts on the deals you do get and you're able to convert a much higher percentage of the people you do speak to into deals. That's the only way to make the model work because of how tight the margins are. And the thing is if you want to go in home like you're free to do that. If that's the kind of business you want to run where you're going around to crackouses all day and meeting these people in person, you can do that. But me personally, that's not what I want to do. I want to run my business virtually. I like sitting in this chair in my home and not in their home and doing all of this just over the phone. And so, if you want to do that, you pretty much have to go nationwide for the economics to made sense. Because when you go nationwide, since the ad platforms have so much more area to target, they have a much larger population to target. The costs go down significantly. When you're doing nationwide, as opposed to being local and spending $100 to $1,000 a lead, you're only spending $10 to $25 per lead that you're actually getting. And so because of this, you can afford to have a little bit of a lower closing rate and maybe a little bit of a lower average deal size. Still good deal sizes and still good closing rates than if you were to go local and were to go inh home. But it doesn't matter because you make up for it with the fact that the leads you get are so cheap.
And this also brings me to my next point, which is that because of how cheap the leads are, you actually have cushion and wiggle room to be able to fail and to get reps in. Because when you are a beginner, the number one most important thing, more important than any course you could buy, than any YouTube video you could watch, even like this YouTube video is speaking to sellers on the phone, realworld experience of talking to sellers, negotiating, comping deals, making offers. That is what you need the most of when you are just starting. And so the other issue that like I said happens with when you're in one market because of how costly it is, it's very hard to break into because if you even want to do inbound marketing in the first place, you need at least 3 to 10 grand a month set aside when you're in one market. But even with you spending that much, that's barely going to get you any leads because it costs hundreds of dollars per lead. Meaning it takes a lot longer for you to actually iterate and learn and get good on the phone. I know at least for me personally, it took me my first hundred leads that I actually ended up speaking to before I really started to get good on the phone and understand the business and learn how to talk to these people. And so because of that, it makes it very hard for people just starting out to get good fast. And speed is what you need. But when you go nationwide, because of how cheap the leads are, if you spend even just three grand a month, let's say, which most people, you know, have enough to be able to spend. And if you don't have that much, I mean, you can just do Door Dash to get that much. But if you spend three grand a month on Nationwide, you can get 100 to 300 leads a month. you are going to be able to iterate and learn so much faster. And when you do mess up, which you inevitably will, rather than with local wholesaling, it costing you thousands of dollars to make a mistake on one lead and not get a deal. With Nationwide, if you mess up, you use a hundred bucks, right? Like, so what? It doesn't really matter. You have so many leads coming in that you can afford to fail and fail fast. And that's how you learn and that's how you gain experience when you're a beginner. And none of the doers want to tell you about that is they want to sell you a course. But the reality is there's nothing more valuable than actual real world experience.
Now, the common objections that people have to going nationwide, really the main one is, well, how do I dispo deals? How do I comp deal? Comping deals, I mean, you just got to get good at comping. Like, it's just a skill. The more you comp, the better you get. But with disping deals specifically, if you keep watching until the end of this video, specifically lesson five, I actually go over the biggest thing I learned regarding dispositions and the way that you have to be thinking about and dispoing all deals to where if you actually learn how to do dispo properly. Not only does it get easier to dispo deals when you go nationwide, but you're able to do it in a way where you barely have to do any work. You don't need buyers list, anything like that, and you still made an average of like 30k per deal. So, obviously, he watched till the end of the video cuz I will show that.
But you also might be wondering, well, can't I just go into one market and even if I'm a beginner and don't have much money, I can just cold call or like cold text to get experience and get leads for cheap? And that's the second thing that I want to touch on on my second biggest lesson where so many people go wrong in this business is that there is no reason whatsoever that you should be doing outbound marketing. And outbound marketing genuinely is what kills most people's business. And I'm going to explain why. To understand this, you have to understand the two reasons why outbound marketing exists. There's only one of two reasons or situations when you would ever do outbound marketing. One is when your time you have more of it than money. So basically people that don't have money but they have a lot of time. So when you're starting out, you're a beginner and you're basically paying the due of time instead of paying the due of money to get experience and hopefully make money so you can hopefully transition into inbound marketing in the future. Right? If you're not in this bucket and you actually have money, there is no reason for you to be doing outbound marketing because with these leads, like I said, you're paying with time. It takes an average of 6 months to go from lead to closed deal with cold calling or cold texting leads. And that's on top of the fact that it also takes a lot of follow-up. It takes 10, 20, 30 touch points per lead of you calling them every week. Do you still want to sell your house? Do you want to sell your house? Like, are you ready to sell it? Until you finally end up getting a deal. It is what I like to call headaches per dollar. Okay? And the more money you make and as you scale and as you want to live a good life, you want to lower your headaches per dollar as much as humanly possible. Okay. Also, because of this, there is a smaller average assignment fee on the leads you do get from outbound marketing since on average they are a little bit less motivated because of the fact that you are reaching out to them. Okay.
So the second reason you would ever do outbound marketing and you do have money. This is the only reason you would ever do outbound marketing. If you actually have money to do inbound marketing is if you are B2B meaning you are in a company that sells very high contract prices and you would target like you work with specifically high-end enterprise businesses clientele. And those people have to like go out and headhunt and like manually find companies to work with because their their niche is so small like they can't even do in my marketing. This doesn't even remotely whatsoever apply in wholesaling. We are what's known as a BTOC market and we target quite literally the opposite. We target every homeowner in America. So, that does not apply. Meaning, if you have money, there is no reason to be doing outbound marketing. Because if you have money and you put it into inbound marketing, you will be able to do the least amount of work per deal and have the lowest headache per dollar and have the highest close rate. Because with inbound marketing, these leads are coming to you. They are warm and they are ready to sell. There is no following up with them until they're ready to sell or convince them to sell their house. They're ready to sell their house. They just want to see if you can give them a price that makes sense for them. And if you can, you do a deal immediately. And that's the key thing. It is instant with inbound leads. when they reach out, it's either a deal or they're disqualified and you can't do a deal with them. But there is no without outbound waiting until, you know, they become a deal or waiting until they want to sell their house. With inbound, if they are a deal, you get a contract signed within 24 hours of them reaching out. And if it's cash, you get paid within 30 days of receiving that lead. Or if it's an ovation, 60 days, 90 days. But the point is, it's instant. And especially in a business like wholesaling where there already is a lag time from work to when you get paid, it makes it very hard to stay in business and to be profitable and especially to get it off the crown if you have a six-month lead time and a six-month cash conversion cycle. Right. Also, as well with inbound, the average deal size is obviously going to be a little bit higher since these leads are more motivated. But the key thing is that it's just very easy. Not just from the sense of what I was explaining, how it's a lot less followup, a lot less work, but the conversations are so much easier. There's no convincing people to sell their house or anything like that. It's simply just people reaching out and it's more of like a sifting and sorting model where you're just kind of picking what deals you want to take on. But all of my deals that I've done, like all the best deals that I've done, the deals where I've made the most money on, they are literally lay down conversations. Like it's people that reach out like, "Hey, this is what I want." And then I just offer them a little less than what they want. And we ran a price and we just do it immediately. Like it is so ridiculously easy. You don't I don't want to say you don't need sales still, like obviously you do and you're going to do better if you know how to sell to people. And there's obviously some people that are just bad on the phone and can never get deals. But it is so much easier. And so, especially if you're a beginner, it makes the learning curve a lot easier and just makes your life a lot easier in terms of getting deals because it's less competitive than outbound, right? Like outbound like you got to be good on the phone. You're talking to cold leads. And so, especially if you don't have a sales background and you're not good in sales, it's going to make it a lot harder for you.
And this is the key thing about it, and this is why I was saying this is everybody's big misconception is you're like, well, what if I do genuinely not have any money and I have a lot of time on my hands? That's where people get it wrong because people are under this impression that I can only do PPC ads where, like I was saying earlier, you got to spend three to 10 grand a month to even enter into sort of any sort of PPC cuz the leads are like 100 to 200 bucks a lead, right? The key thing here is that if you do the inbound marketing right, which I'm going to show you right now, you can get into inbound for the same or less cost than outbound marketing to the point where as long as you have at least like a,000 to 2,000 bucks a month, you can get into them inbound marketing. And if you don't have a,000 to 2,000 bucks a month to spend, it's actually more worth worth your time to go Door Dash for like 10 20 bucks an hour and then get the money and then just spend it on the inbound marketing channel I'm going to show you rather than if you were to be cold calling people from a dollar per hour perspective. And the way that you do this is with what I want to talk about in lesson three, which is that Meta Ads is the best and most untapped marketing channel that, like I was just saying earlier, if you use it correctly, you can get the same exact leads people get on PPC for $200 to $1,000 a lead, but you can get them for $10 to $50 a lead. Meaning, if you go nationwide and you're doing it virtually, you can never ever have to do outbound marketing and can just skip right to inbound marketing and start off with the highest quality leads possible without breaking the bank whatsoever.
So, to give context on this, I have done PPC. I'm not saying this from an outside perspective. You can see right here, I spent $20,000 of my own money last year over the course of two and a half months running PPC ads. Uh, and then also another $7,000 in agency fees uh to actually have the agency manage the PPC for me. Because that's one of the issues with PPC is that you have to have an agency managing it. If there's not an agency managing it, goodbye to any chance of you getting results with it. It's too complex to do on your own. With that, I had a $200 cost per lead on a nationwide campaign. I wasn't even local. If I was local, I'd be looking at $500 to $1,000 a lead. Okay? But this was the issue. I had a $200 cost per lead on PPC. And I'm not even joking when I say this. The leads were the same leads I got on Facebook and Instagram. And when I say same, I don't mean I think they were the same quality. I mean, I had the same people reach out to me on a Meta ad a month later reach out to me on the PPC ads. The quality and the people I was speaking to were the exact same as Facebook and Instagram. But Facebook and Instagram, which is Meta, right? Those leads were costing me $20. I paying $20 a lead on Meta and I had no agency fee cuz it's something that I do 100% on my own since AI does all of the heavy lifting for me. And once it's all set up and you have AI make the ads, it only takes one hour a week to manage. unlike PPC and all that where there's a lot of manual work, a lot of optimization and a lot of complex keyword setup, right? And so this is when I really realized and this is what made the bid click for me was that this is the way to go and that Meta is by far the best channel. The reason Meta is so cheap is because of a few things. One, they have the best social algorithm on the planet. Okay, they have 52,000 points of data. No, that's not a joke. 52,000 points of data on every person on their platform. They actually have predictive algorithms to where like they can literally tell what someone is thinking in their head before they even go out and act upon it or like say it out loud. It it is ridiculous. So, because of how good the algorithm is on Facebook and Instagram, it's to the point, by the way, where they've tried banning the social medias like from the country. Because of how good their algorithm is combined with the fact that nobody is doing this, because this is, as I like to say, wholesaling is a very antiquated and dinosaur industry. And like, like you said, you've probably never heard of meta ads before because everybody's telling you to do paper. It's the only thing people know about because of how untapped it is and because of how good the algorithm is. Like I said, it's the best advertising algorithm in the world. the leads are so ridiculously cheap. When you combine this with doing it nationwide, which is why I said earlier, you want to go nationwide. Because when you combine the three of these things where you have an untapped marketing channel where relatively speaking, barely any wholesalers are using it because they don't know how to do it. You combine that with going nationwide where you give the ad platform the most amount of people to target possible, the entire country, and you target markets that most people are never targeting whatsoever and that aren't getting hit with ads or people reaching out. And then you also combine this with the fact that AI right now is extremely good and has gotten to the point where AI makes better ads than humans do. And I'm not joking. I have been running Facebook ads for the past three and a half years in my life. I ran a Facebook ad marketing agency for this uh before this for 2 years specifically. And we are now at the point I and I have spent thousands of dollars on UGC creators for people to make ads. The ads that AI can make, this right here is Hitchfield AI specifically. This literally you can get in for as low as like 10 bucks a month and the highest most expensive one is 200 bucks a month and that can make you infinite ads. The ads that this makes are better than the ads humans make and they perform better than the ads that humans can make and that have humans talking in them. And I notice I used to run ads like that. And so when you combine all of this, you get ridiculously cheap customers. Like I said, literally $10 to $50 a lead on the absolute worst case scenario. But like I said, for me, I'm like around $20 a lead. And these leads are just as good as PPC. And this is also why you never want to do paper lead. Is paper leads the other big lead source like for inbound marketing that people think of when they think of wholesaling? But this is the issue with paper lead. There's objectively zero reason to do pay-per-le if you know how to get your own leads and do your own market. And I'm not exaggerating when I say that because when you actually think about it, payer lead, their business model is they spend a certain amount of money to generate the lead and then they sell it to you at a higher price than it costs them to generate it, right? Meaning they can never sell you the lead for less than what it cost them to generate or for the same price. They have to they have to mark it up and sell it to you for more than it costs them to generate. Meaning obviously you're paying the middleman fee, which isn't an issue if it works, but this is the issue with it. They charge a flat rate per lead. Okay? So with PPL, let's say you agree on $100 a lead. And when you're agreeing with Lead Zolo or Property Leads or I Speed to Lead, these are the three biggest ones, and they all operate the same. Their lead sources are everything. They say if you looked in the fine print or if you asked them, you'll get leads from Facebook and Instagram. You'll get leads from Google Ads. You'll even get leads from cold calling and cold texting or mailers. They like the leads are from everywhere. But this is the issue. When you have a flat rate per lead that you're getting charged $100, they are incentivized to just get the leads for as cheap as possible. Because if they spend $10 to generate the lead and sell it to you for $100, they have a $90 margin. But if they spend $80 to generate the lead on Google Ads or SEO, the highest quality, you know, uh, mediums available, and they sell it to you for $100, they now barely made any money, right? And so what you'll notice, and I have spent, by the way, I've spent $10,000 of my own money on PPL. And anybody that spends money on PPL, or if you spend money on PPL, you can verify this is not something I'm just saying or making up. They get all of their leads from Facebook and Instagram. And these are the guys that spend the most amount of money out of anybody in this industry on advertising. They're spending all their money on Facebook and Instagram ads. Why? Because they know that it's the best platform and the most available platform. I always say, don't listen to me. Don't listen to any gurus. Don't listen to any YouTube videos. Where's the money going? What are the top players actually doing? And the top advertisers in this industry that has that process, the most amount of spend are the PPL companies. And they all are dumping all their spend into getting leads from Facebook and Instagram. And you know this, if you get leads from them and ask the leads where they came from, they're all going to tell you they saw something on Facebook and Instagram. And they do this because of what I was saying earlier. This is by far the best platform to get leads on right now and is so ridiculously cheap yet has such high quality. But the issue with it is that they use how good the platform is to their advantage because with Facebook and Instagram, you actually control the quality with the messaging of your ad of what you say in the ad. And so what the PPL companies are going to go and do, and this is what nobody's going to tell you because most people just don't know how advertising works. I come from an advertising background, which is how I figured this out. All they're going to say in their ads, and I know this is I've seen their ads, they say, "See what your home is worth or get a competitive offer on your house. get a bid for your house. Some of their ads are crazy enough and they literally say, "We'll pay you any price you want for your house." What this does is it gets them ridiculously cheap leads. I'm talking the leads are 5 to 10 bucks a pop, but the leads are the lowest quality possible, but despite that, they're still able to sell it to you for $100 cuz that's what you agreed to and that's what you're agreeing to buy. So, you're paying ridiculously marked up prices for leads you could get for a fraction of the price if you got them yourself and that you would get at a much higher quality, which is why PPL is the dumbest thing ever listed. You literally only do it if you just don't know about this. But now you do know about this because you're watching this video. So, there's no reason to do PPL because you can get your own leads. Um, and with PPC, just for context as well, I did close one deal from the leads that I got from uh PPC. It was a $40,000 deal. So, I didn't actually lose money. I I did made money, but like I said, with how expensive the leads are, it's just so ridicously hard to be profitable on that. Versus with Meta, it's like it doesn't matter how good you are at sales, anything like that, it's impossible to lose money because of how cheap the leads are. And this is what I'm saying is that when you're a beginner, if you have just one to three rand a month, you have enough to do meta ads and to get a deal or two a month. and most importantly to get a lot of experience. And even if you have no money, your time is so much better spent doing Door Dash. Like every hour you do Door Dash, you have enough money to buy a lead from meta ads, right? So it's like you're better off door dashing for 2 hours a day and then running meta ads than you are cold calling for 2 hours, 3 hours, four hours a day to get the same amount of leads that are way worse and with way more work and way more hardship, right? Like there's literally no reason to be doing that. And like I said, there's no agency fees when you run meta ads because you have AI do everything for you and make all the ads for you for the same exact quality as PPC as better quality than PPL but for a fraction of the price.
So now I hope you're able to see how this is all starting to connect because once again out of all the money that I spent on courses and out of all the time that I've been doing this, nobody told me this. This is stuff I had to learn myself just through trial and error and this is why like I'm so passionate about it. But when you combine all this, right, when you go nationwide, so you're able to get the whole nation you can target and you're able to get leads for much cheaper. It allows you to stop having to do outbound marketing to go right to inbound marketing. And now you're only talking to the highest quality leads possible with inbound marketing. And it's really, really profitable. You can easily get a 10 to1 ROI by doing this. All because you set it up foundationally correct from the first place by not going down into one local market, by not doing outbound. And that now brings obviously me to lesson number four.
And the fourth thing I wanted to talk about which is that with the leads you are getting you have to be lowballing sellers. Okay? You cannot be not lowballing sellers. And I'm so passionate about this because there's so many people that are trying to like spread this misin like whole propaganda of like oh you know when you talk to sellers you got to do the anchor like uh other investors are paying this much for their house. What what if somebody offered you that? And like this whole sales philosophy of like people being against lowballing for some reason. This is very simple to explain cuz in all like the courses I was in programs I was in the main thing that people were advising for was like this NPU or like RJ Bates method. No hate RJ Bates by the way. Love him like he's a right guy. He knows what he's doing. But they like this method basically of like not actually giving people an offer in a low ball and for some reason expecting them to reduce their price and it's just unreasonable cuz objectively speaking this is only going to work on people who are stupid and who are emotional. If seller has half a brain on their head they're not going to give you a price and then give you a lower price before you make them an offer, right? Like that's just not going to happen. That only works on people that are dumb. And even the people that this does work on who somehow give you a lower number even before you make an offer. And then that way your first offer is your MAO and like you're trying to get them to say yes and all that, you would still get a much deeper discount if you actually lowballed them because you have to understand how human psychology works, right? And how this science, right, of lowballing and the sales process works. Our goal in the sales process when talking to leads objectively, plain and simple put is you want to get their bottom dollar price. Your goal is to figure out what is the least amount of money they will accept for this house. And then that way you can decide if you want to take on the deal or if you don't want to take on the deal. That's all the goal is. And the thing is sellers have to feel like they are winning. Like in all sales, not even just in this, in all sales, a human will never say yes to something. Like in a sales environment, we will never say yes something. We'll never do something if we don't feel it was our own decision to do so. So nobody will ever cuz we we all have egos as human beings, right? And we don't want to ever like admit defeat or admit someone won us over, right? And so what happens is when a seller's asking a certain price and you offer them lower than that, which you're always going to do, right? like the I mean the odds that a seller's asking price is a deal basically doesn't exist. And even if it is a deal, you still don't want to offer that price because of this. But when they're asking for a certain amount and you offer lower than that, even if that's an amount they would be fine accepting, even if it's a good offer, they still mentally are losing, right? They feel like they are losing because they asked you for 100,000, you offered 80,000. And that would be admitting defeat if they accepted your offer, which is what no seller wants to do. So they have to feel like they are winning, which is why lowballing works. This is why this has been around for centuries, probably longer than the centuries, thousands of years in all forms of commerce in the world. And it will always be around and it will always be the best tactic and as people like to say, the oldest shirt in the book because it makes them feel like they are winning. When they want a h 100,000 and you offer them 50,000, the goal isn't to get them to say yes. The goal is to get them to say no. Because when they say no, they're in a counter with what they would actually accept. And this does a few things. One, it guarantees you actually get their bottom dollar out of them. Because when you offer them low enough and you lowball low enough, what happens is in their mind they'll mentally check out and be like, "Oh, this is like probably not going to work. This guy probably can't buy my house." So, I lose nothing by being honest with him and telling him what I would accept. Cuz it like they almost throw it out. Think of it as like they're throwing out a Hail Mary when they counter. They're like, "Ah, there's no way he can do this anyway. I might as well just tell him what my lowest price would be, right?" And then that's how you get an actual honest response and how you get their actual bottom dollar, right? Because they don't even think you're going to be able to do it. So, they have no reason to have their guard up anymore. or they like let their guard down. And the second reason it works is because they feel like they're winning. Cuz when they do counter with no, I can't do 50. If I were to sell it, I would need 70 rand, right? What happens now is when you then go back to the underwriters, you go back to your people and you come back with 70 rand. Now it's not they went down from 100 grand to 70 rand. It's hey, you went up from 50 rand to 70. Who's winning and who's losing? You are the one that's losing in their mind and they are the one that's winning in their mind. Even though you just got them down 30 grand. And even if for context, that same seller who you can do that with to get them to 70, if you offered them 70 out of the gate, there's a 0% chance they would have accepted it. Why? Because in their mind, they're losing. That's why you need to lowball cuz it guarantees you get the lowest dollar amount possible. And it, like I said, it plays on human psychology. It makes them feel like they are winning. But once again, this whole of like expecting a price reduction without actually giving a price and all that, it's just stupid. It barely works. and the people it does work on, you would still get much better results if you actually lowballed them. And I put a photo of Eric Klein here as he's like his I follow modified version of his process that I've made and modified and crafted myself based on my sales experience. But generally speaking, cuz he kind of popularized the whole like virtual account method withdrawal number. You want to be following a process similar to that where you actually get people hyped up and bought in. And I'm telling you once people can like hate on it and say it doesn't work. Anybody that's doing deals knows that's not true. That [ __ ] works. Okay? When people get bought in and they get a real offer and it anchors them low, they are going to just naturally spit out their lowest price. And the thing is this works on any sophistication level. Even ourselves, when a buyer does this, if a buyer is good at lowballing and talking and they lowball on our house, even though we lowball for a living, we know about lowballing, we know what they're doing, it still is going to work. It still is going to work. That's how effective this is. And this is why you have to be lowballing sellers because the most unethical thing you can do to a seller is not closing the deal and not getting them at a low enough price possible to where you end up having to back out of the deal, the deal falls through, you have to renegotiate with them or to where you just don't get it under contract and some other dumb wholeseller gets under contract and they end up messing the deal up or where the seller just ends up procrastinating and never selling their house. So that's why you have to be lowballing sellers.
And when you do finally get a seller to accept an offer and you get a deal done, the fifth lesson, this is, like I said, by far the most important thing, and this is what makes everything else that we were just talking about, and specifically this nationwide model where you can get super cheap leads, get a lot of reps in, you don't have to be tied down to one market. This is what makes that all work. And this is something that I'm so passionate about because so many people don't understand. This is one of the most undertalked about things in this industry. And this like radically changes the way you run your business. But every deal you get must be sold on the MLS on the open market. Always. And this is where people mess it up. Even if you can sell a deal off market, you shouldn't sell it off market. And I'm going to explain to you why. It's very simple. The only reason people buy houses offmarket is to save money and avoid the competition of the MLS. I'm going to let you process that for a second. The only reason people do it is because they're looking to save money and buy houses for less than it would cost them on the open market. And most importantly, avoid the competition because when a house is listed on the open market, that is a good deal. Especially if it's an investor deal where it's like asis, it's a house that needs to get fixed up. Those deals don't just sell. They sell within a day. I know this because I have done this countless times and I have been responsible for bringing hot deals to the MLS and moving them immediately. This deal here, does this just right here? This deal, I remember this. I made 43 grand on this deal. Small town, middle of nowhere. This deal we sold, like I'm talking about within an hour of it being on the MLS, I had multiple people ready to buy it above full price cash asis, 7 days, no inspections. And we were getting like for the time it was on the market, I'm talking 10 plus above ask cash offers a day. It got so crazy, I had to take the house off the market. And when it was off the market, I still had people cold calling me trying to buy the house. That's how ridiculous the MLS is. When you put a good deal on there, it [ __ ] moves. And that's what people are trying to avoid when they go off market. They're trying to save money. That's why we get deals off market cuz we're trying to avoid the competition of the MLS. We're trying to save money. We're trying to find unsophisticated sellers. So ask yourself if that's what we do and that's the intention of buying offmarket. Why would you want to be an offmarket seller? Right now there's a few reasons for this and these are the main misconceptions. One, people think, "Oh, well if I sell it off market, I don't have to pay the realtor fees." This is the issue with that and why it's dumb. you still net the most amount of money by listing on the MLS because buyers on the MLS the and this is the reason behind why they overpay. They're paying for convenience and security. Okay, we all know buyers don't have time to go find deals themselves. That's why wholesaling even exists in the first place, right? That's what the MLS is is it is the most convenient place for buyers to buy deals cuz they find sellers that already want to sell their house. They're already motivated. They have a price that they want for their house. They have photos of the house. They have a contact person or contact. So, it's the most convenient place for buyers to find deals cuz they can just look in their area and see all the houses for sale, right? And that's what they pay a premium for. Is that convenience? Just like when they work with wholesalers, they're paying a premium for wholesalers, right? So, when you combine the premium they pay wholesalers and the premium they pay buying a house on the market. That's how you get deals sold above what they're worth. And the second thing they're paying for is security. Because you have to, this is a very real thing. And we know this if you're a wholesaler, you know this how common it is offm market to be dealing with these dodgy sellers, scammer. Like there are people that just lie about them owning the house or just like how many sellers literally think it's okay to like because they want more money for their house, they think they can back out of your contract. We have become accustomed to this as we're used to dealing with problems as wholesalers. But I want you to really think for a second. Can you imagine if a house listed on the MLS with a real estate agent and the seller decides after accepting an offer the day before closing, someone offer me more money. I'm going to accept their offer and I'm going to ghost these guys. Bro, the agent would lose their [ __ ] license. Okay, these are all licensed real estate agents with fiduciary duties to uphold. And if they violate any of the laws, if they do anything dodgy, anything that is unethical, their license is gone. They're kicked out of the brokerage. They might even get sued and fined. They're done for. So, because of that, none of that ever happens. When you're dealing with the MLS, I'm not saying deals don't fall through. Deals fall through. But what you don't deal with, and this is why people like buying on the MLS, you don't deal with people trying to scam people or doing unethical things that they shouldn't be doing. It doesn't happen because of licensed agents and their fiduciary duties uphold. And once again, that is something buyers pay for and value is that security of having licensed agents, licensed seller companies, and that guarantee of not having to deal with the [ __ ] we have to deal when we're dealing with offmarket properties, right? And so because of this, they pay the most amount of money. This is the other misconception is that the MLS is for retail buyers. This is a big thing especially that has popped up in the last few years with like this whole like noation trend, right? of like selling deals retail and with loans and all that, which is great. I've closed novation deals, buyers with traditional loans on the MLS. But this is what people like misunderstand. They think the MLS is only used to sell deals to retail buyers and that the only time the MLS buyer would pay more than an offmarket buyer is when they're retail instead of an investor. But this is not true. The people that buy on the MLS, whether it's a retail buyer or whether it's an investor buyer, always pay the most. And what I've actually found is that the like price discrepancy for how much they overpay, the investors are actually the ones that overpay the most on the MLS because they're the ones that are the most hungry for deals. And like I said, they're the ones where it's the most rare for deals to be found on the MLS cuz it is so rare for a good deal to hit the open market, which is why I say when a good deal does hit the open market, it moves immediately. And that's the other thing is that because of the fact that they are used to competing and they are hungry for deals and they will overpay for the houses because the fact that they're paying for that convenience and security, you also do the least amount of work because these people are debt. There are not like people like it doesn't matter what the market is, the recession is anything like that. There is never going to be enough good deals
and houses priced at a reasonable price in America. There is a reason why the average sale price of a home in America is 10% less than the average list price. Because on average, people list their house 10% more than it's actually worth. So because of this, once again, doesn't matter what the market is, the recession, anything like that. If you actually have a good deal and you price it right, the house moves immediately and they come to you, what does that mean? You don't have to do any work.
And I and this is what sounds too good to be true, but I'm telling you this is the truth. If you just put all your effort into how do I get the best deals possible, which when you're going nationwide and you have so many leads to choose from and when it's all inbound leads that are high quality, you can afford to only take on banger deals and not do any of these deals that are bad deals or that are tight deals. And when you take on banger deals where you have the house at half of what it's worth, where you have a 50k spread, 100k spread, when you have these massive spreads, you can afford to list these houses at crazy prices that moves them very fast. And like I said, when you do that, you literally don't do any work. Once it's on the market, your work is done. The buyers come to you, you accept the best offer, and you close.
And I I know it sounds too good to be true cuz all the gurus love selling you on this idea that dispo is like the hardest part of the business so they can force you to do a 50/50 JV with them. The hardest part of this business is getting the good deals. All of the money that you make is directly correlated to what you do to get the deals. But once you have a good deal, the deal is going to move if it's on the open market. And that's why I love it because it's guaranteed to sell your deal if it is good. And that's also the other thing is that the only way you make nationwide work is you got to be doing uh on market. You have to be listing all your deals on the market because in small towns there is no investor lift. There is no investor base. Like with investor lift, investor lift is a great platform. I'm not saying it's not. There is an objective truth though about investor lift that most people don't want to confront. It only works in metro areas. Okay? You're not selling a deal in the middle of nowhere in Montana on Investor Lift, bro. The buyers on Invest Lift are looking to buy houses in Dallas, in Scottsdale, in Miami, in New York City. Like, they're looking to buy in metro areas. And that if you look at all the investor content that's out there, all the deals those guys sell, it's all in those kind of areas. Right? When you're doing nationwide, you don't even have another option to sell your deal. You have to go on market because in small town, that's the only place these people are buying houses. And there's not enough data for you to pull, for you to scrape cash buyers. Like same with like investor base and all that. So that's how the model works in the first place, which is why most people don't go nationwide cuz they don't know about this, right? But that's the key thing is when you do know about this, which you now do cuz you're watching this video, it opens you up to so much potential because when you learn how to sell deals nationwide, which really is just learning how to get good deals, cuz once you get good deals, you just find an agent to list them and you're good. Now you can do nationwide, which gets you all the benefits I talked about earlier. Ridiculously cheap cost per lead, ridiculously high quality leads, all inbound, no outbound. You just you just have to pick and choose the best deals. And then all you have to do when you have a good deal, reach out to local agents in the area and get the house listed.
Now, here's the caveat. Here's the uh, you know, too good to be true part of it, right? Or here's the actual downside of it. There's only really like one or two. These aren't even downsides. These are only downsides of people that don't run their business the right way. The real reason people don't like to do the MLS. One, people just don't even know about it. So, there's people that genuinely don't even know it's possible to list it on the MLS, which by the way, the way you list it on the MLS is you get an attorney and fact document signed. It's a onepage document. just gives you authorization to sign listing agreements on behalf of the owner. That's how you list it without needing a license. And then you don't work at you don't work with a local agent who actually is licensed in that state and they're the ones who listen and you sign the listing agreement. But the real reason people don't like to do the MLS is because you have to be honest with sellers cuz there's no way around it. The house is on the open market. They see exactly what the house is listed for, exactly what you sell the house for. And that is true. I'm not going to sit here and tell you that's not true. You can obviously double close. You can do things like that. But they're going to see what their house is listed for. This is the thing though. Whether or not you sell it on market, off market, whether or not they see how much their house is selling for, you should always be honest with sellers, if you run a business where you lie to sellers, where you're like cheating people, where you're dishonest, you don't deserve to be in business. You don't deserve to have made money in the first place, right? And so, if you're actually honest with people, which if you know what you're doing, being honest with them and telling them you're wholesaling their house and listing it, it won't actually hurt your close rate. If anything, it'll actually help it if you learn how to explain it properly, which if you want to know how to explain it properly, just keep following this channel. I'm going to have videos coming out on that soon. But when you're actually honest with people, you deserve to get paid. And you don't deserve to get paid if you're not honest with people. And this is also why I say it's the safest possible way of wholesaling because it forces you to be honest to people. Because when you go and look at all the regulations that are getting passed against wholesalers in the country, all the regulations and all the issues and lawsuits are with people that weren't honest with their sellers. They lied to sellers and they were bad at what they do. They weren't able to close the deal and they screwed sellers over, right? this way of wholesaling where you list the house on the MLS and you're honest with your sellers. It's the safest way of wholesaling because the laws that are getting passed are not only against dishonesty, but it's also against people that are brokering without a license cuz that's their main argument is that wholesaling is brokering real estate without a license. But with me, all my deals I'm working with licensed agents. Licensed agents bring the buyers and my licensed agents are who I work with to list the house. So, they're technically my partners on the deal cuz they get paid out of the deal, right? Cuz you do pay them a commission. and you still end up netting the most amount of money. But yes, you end up paying 3 to 6% in commission, which is offset by how much more you sell the house for. But because of this, I am safe against regulations because of the fact that I can always just lean back on, hey, I'm not brokering without a license. I I'm actually partnered with a licensed agent in the state. So, it protects you and it'll allow you to do this for years and years and really decades to come as long as you're honest with people. There's nothing actually wrong with wholesaling, right? Amazon's a wholesaler. They've been around forever. They're one of the largest companies in the world, right?
But like I said, this is what makes everything else work from earlier. And even if for some reason after seeing all this, you you like are only trying to wholesale in one local market. You want to keep doing that cuz it does work. I'm not, by the way, I'm not at all saying PPC doesn't work or PPL doesn't work or outbound doesn't work or wholesaling in one market doesn't work. All of these things work, right? Like there's a reason people do it and made money with it. I'm never going to be delusional enough to say they don't work. I'm just saying there are things that objectively work better. But even if you wholesale in a local market, even if you have a buyer list, once again, because of the fact that the deal is always going to sell for the most on the market, you should still always be listing it and you're just leaving money on the table if you're not. Cuz once again, the only people looking to buy off market are people looking to save money. But that is really it. Those are the main five lessons that I like I I wish I knew these is when I was starting. That's all all I will say. And all the money that I spent on courses, if I spent all that money and just had someone tell me all these things out the jump, that would have been well worth all the money that I spent. I didn't need any of the other information I got. Like if someone had just told me all this, I would have paid him 78 grand for it.
And also for sticking around to the end, I actually have a bonus, just some quick little rapid fire ones. Uh, but basically, don't ever work, especially with this model when you're going nationwide. It's going to be tempting to try to cop out and work with the a national title company. That way, you don't have to find a new title company in every location. Do not ever work without a state title companies. They take way longer to close. They cost way more. They also mess up pretty much all the time since every county and state is different, and if they're not local to that county, they're not going to be able to do it right. And then also buyers and sellers just don't trust them. So especially when you're on the MLS, like you know with with those buyers, you got to do things a little more traditionally and work with the local title company. So always make sure the title company you work with is local to the county. So title companies like this, this is a random title company, but you know what I mean? Like people that have an inerson office, they're in the county. They're going to be the fastest, the cheapest. I've had closings where we paid like $300 in fees. I don't even know how those guys are in business, but it's super cheap, super fast. They'll help guide you through specific local county requirements so your deal actually closes. And they are trusted by the buyers and sellers. So when you're on the MLS, you won't have any issues because like I said, MLS buyers don't want to work with wholesale title companies that are out of state.
Also, for comp, please don't use prop streaming comp. I'm not going to explain this. It is just bad for comping. Zillow is the best comment tool. Do not let it deceive you that it is free. It is the best. It has always been the best. It will always be the best. Um, and then also for signin, quick little sauce, use panda.com if you have the money to spend for it. Not necessary. You don't have to do it when you're starting out. You focus on other things, but if you have the money, use panadoc for signin because it lets you text sellers a link. And sellers don't have an email, you can text them the link. And even the ones with an email, they don't know how to use it. So, you always want to touch them a link to make signing over the phone easier. And it also lets you see in real time as they fill it out because you should be having them fill it out while they're on the phone with you. But that is actually everything. I genuinely hope this was helpful. And if you implement the stuff that I talked about in this video, uh, well, for there's no income or earning claims. I just want to give a disclaimer. I'm not claiming you can make money doing this. That would be illegal. Uh, there's no income or earning claims. I'm just merely showing you what I'm doing. But using all the stuff that I just taught in this video that I don't really see anybody else talking about on the internet, you can run a business that has 80% plus margins, is 100% solo, does 50 to 100 a month. Full transparency, I've never done 100 grand a month uh myself yet, but that is the goal for this year and I know I'm going to get there. And that's while only doing two to five deals a month, working only 30 hours a week. Once again, no income or earning claims. I'm not saying you can do that. I don't know who you are. I'm just merely saying that that is a possibility, something that I have been able to do and that I will be able to do this year running the business like this. That's because of how optimized everything is and how efficient you make it. But if you found this video helpful, please like, drop a subscription. I'm be posting videos like this literally every week. Super in-depth content that I don't really see anybody else posting in wholesaling as I have a lot of unique insights to provide. Also, follow me on Instagram. Same thing. We have daily content there. Most valuable content in all wholesaling. And then just in general, check whatever links are in the description. I probably have free training, free resources there. Uh, if you want a copy of the contract I use to wholesale, you can just DM me the word contract on Instagram and I'll probably just send you that for free. And any other questions, let me know in the comments. And I hope it's helpful.