Transcription
How I'd start wholesaling from scratch, guys. It's Rick G. In today's video, I'm going to teach you three simple steps on what I would do, more importantly, what you would do to get started in wholesaling. Now, now, I have no secrets to hide from you. There's no course to sell you. If you stick with me, I'll show you how to do it. I'll show you the exact implementation and what you need to do in the beginning when you get your wholesaling career started. But before I get into it, do me a favor. Make sure you smash that like button, hit that subscribe button so people can really find the truth about how to get started in wholesaling.
So, we're starting wholesaling from scratch, and it's simple. The first thing you must understand are the fundamentals. And if you do not grasp this concept, nothing else I'm going to teach you is going to work. You see, the missing component for most people in wholesaling is they do everything except what a wholesaler is supposed to do. We have one core mission: locate motivated sellers and buy their house at a deep discount. That is it. Your customer is your cash buyer. Your product are the houses you put under contract, and you're selling the contract. You're not selling the real estate. If we understand that, you simply go over to freeh wholesaling.com. Why? Because we've got 29 years of experience all wrapped up into it, not only to get your first deal but to teach you how to get you your first $100,000. And it's all about the fundamentals. And let me break down how the fundamentals work for you. You have to understand the core fundamentals is a motivated seller, right? I know this is an abused term, but I'm going to get more granular because this kind of means nothing anymore, cuz everybody seems like they're they're a motivated seller. What you have to understand is we need to simplify. If you don't understand it, you don't know what to go out and look for. It. Most beginner wholesalers are all over the board. They go on MLS, they go on Zillow, and the problem, they're just looking for people who want to sell their house. Everybody wants to sell their house. Only a select few need to sell. These are people that have let the condition of the house gone south, they're in a financial crunch, they've lost their job, or somebody's passed away. Regardless, to get a great deal on wholesaling, you have to solve a big problem. Houses on MLS are not a big problem. Are there deals on there? Yes, they are, but not for beginner wholesalers because you don't know how to talk to other reals. You haven't spoken to enough sellers. And I'm going to show you why it's a bad idea to start out doing it. This is my opinion, you can do what you want, but starting out with on-market properties is a disaster. In fact, I'm going to teach you the acronym O.D.N. And you know what that means? They're going to be off-market. Why? Because you have significantly less competition. On-market properties on MLS, sale on Zillow means everyone's going to bid them, and typically the highest bidder wins. That's crazy.
Number two, you're going to be direct to seller. Why is that important? Because the only way you're going to get a great deal on wholesaling is get to the root of the problem. You see, the real estate is just a math problem. You have to get into the human problem and solve a problem for that. The only way you can do that is direct to the seller. Let me ask you this: if I reach out to a realtor, are they going to convey your information to the seller? They're not. They're just going to convey the price they get paid on the commission, and they have an objective to sell it for the highest amount. Number two, you cannot build rapport with a realtor that doesn't own the property. They only represent the property, so you're never going to pass the trust barrier. And let's face it, the battle between wholesale and realtor is like the Hatfield McCoy, and it never stops. The problem is you got too many new wholesalers trying to work directly with real estate agents. Why? Here's why they do it: they think it's easier. But before I get into that, the last one's going to be need to sell. Most of you are trying to go after people who just want to sell. You're wasting your time. It's not wholesaling. I don't teach it. There's plenty of gurus will teach you how to do it. If you want to make thousands and thousands of phone calls and talk to realtors that don't own the property, don't follow the strategy. Off-market, direct to seller, need. If you can hit all three, you get great wholesale deals. Your job is to go out and find them, to be an expert and locate them. You see, the reality is, if you do this, you're going to do the hard work first. We're going to do hard first. Is it hard? Yeah, you're going to have to go through a lot of leads, but when you get the right people, you'll get the right wholesale deal. You're going to have to do the hard work upfront, and if you do the hard work upfront, it's easy to sell your contracts. Contracts sales. What happens though? So that will be second. But what you guys are being taught in most wholesale words is the opposite. You see, they go, "Hey, go on MLS and just call like 25 realtors, and you'll probably get a good deal." You'll get a discount, but it's not, it doesn't go in wholesaler's world. You see, we get deep discounts why? Cuz we go to off-market, direct to seller, someone needs to sell. If I go on MLS, I can probably buy a course out there, seems really easy, all the pictures, all the phone numbers. Guys, the bottom line is it's going to seem easy, but it's actually going to be hard. It's like sitting around eating bonbons. It feels good, but you're going to have long-term pain with it. So if you really want to do wholesale, you got to understand you're going to have to do the hard first, and then everything will get easy after that. But a lot of the programs are completely opposite. What do I mean? If it sounds too good, it sounds too easy, most likely you're going to be buying a course, and you're going to wind up right back with me and Zach at freeh wholesaling.com. I want to prevent it. So let me show you how to get started and easily get your first deal.
So I'm going to erase this because I got a lot of information to go through, and we have little time. So let's go. So we know we're dealing with motivated sellers. I'm going to put up the O.D.N. so you understand that's all about the fundamentals of wholesaling. So the next thing is we have to create and get leads. Well, Rick, I don't have any money. I don't have any time to start. I hear you. I had the exact same problem. If people tell you you need a ton of money to get started in wholesaling, I promise you they got something to sell you. The first thing you have to do is what we call outbound marketing. What is outbound marketing? This is when you're going to have to go out and chase people. Why? You had limited amount of experience, a limited amount of money, and you're going to have to go out. The easiest way to do this is tack what we have our called government lists. You don't know what they are? Go to freeh wholesaling.com. I will share them all with you. They are all there. Now, once you do these, you are going to come what we call a list ninja. Remember, your lists are suspects, people that most likely would sell their property that you can go off-market, direct a seller, that needs the sells. How do we find government lists? Don't worry, at the end of the video, I'm going to show you all the government lists and the ones you're going to attack initially, off the bat. I'm just giving you a strategy now, and then you're going to study these lists and you're going to deep dive into them, and that's what I'm going to do.
The next phase that you're going to do is now you have to execute. This is where most wholesalers just fall off. What do I mean by execute? Now you got to take your idea, your theory, your free wholesaling education, freeh wholesaling.com education, and you got to go operate. Meaning, you actually have to do it. Stop negotiating with yourself and get it done. How do we do this? We pick a marketing medium. This is simply the way we're going to deliver our message to our customers. How are we going to do that? Simple. You got to actually go out and do it. So I'm going to give you a quick couple of examples. One of my favorites, reverse driving for dollars. This is basically when you take sticky notes, put them on people's doors. Perfect for pre-foreclosures, tax delinquencies, anything like that. You can do the method called driving for dollars. A lot of you guys are going to do cold calling. Some of you are going to do texting. The list goes on and on. I'll show you more, but the idea is you're going to pick them. And my suggestion is pick one. If you're on a limited budget, you're most likely going to do with cold calling or driving for dollars. Driving for dollars has always been the staple. You just go around and look for ugly houses. It's not hard. It's all in pre wholesaling.com. We got to get you a strategy. If I dropped in your market, I would run you exactly through this. And here's the key: once you execute, you just keep executing. You don't stop. If you've committed to make 200 cold calls a day, don't stop at 25. Don't stop at 30. Don't stop at 40. Come up with a marketing plan and stick to it. This is where you're going to have to do what we call force discipline. But this is what you want to do with with it. And the key here is just don't quit.
Now, here's what I want you to understand. This is how everybody starts out in wholesaling. If you think you are going to skip the fundamentals and jump down to some automated system where you don't have to talk to anyone or or anything, shut the video off because it's not going to work. You're going to have to get the time and energy into it. And what happens is, I I'll show you step three in a moment here, but you you are basically what we call a JV wholesaler. Yes, I'm using a sports analogy, but I want you to understand you're starting out on the JV team. Everybody asks me, "When do I get off the JV team?" You're going to get down to five deals. Does everybody understand that? Five deals is what it takes. If you don't get five deals, you can't get off the JV team. Why? Statistically proven, I'm doing this 22 years. The people who do five or more deals typically have what it takes to survive in wholesaling. They have the grit, they are accountable, and they love the business. People that only do one or two deals, they typically just give up. Why? Because they quit. So here's the strategy: just don't quit. This is the key. And you're going to have to start out with outbound marketing. Everybody wants to tell you how to do inbound marketing starting with no experience. Here's the problem: is you do not have the practice, you do not have the repetition, and it's going to be problematic. How do we fix all this? If you're going to execute, you have to have quantity. Ready, 10x whatever you think you need, cuz you're going to need more quantity plus experience plus practice is going to make you a winner in this. Now, quantity. Rick, I only think I need 500 leads. Multiply it by 10. You need 5,000. Simple. I'm just showing you the math. The next one, experience. How do I got experience? Making thousands and thousands of contacts with people. And then practice. This is when you actually practice your craft. Yes, Kobe Bryant, Michael Jordan did not become incredible athletes by just showing up. They practiced 10 times what they ever did in public. Remember, you're rewarded for what you do in private in public. Meaning, you're not going to get credit until the deal comes up. So quantity plus experience and practice, this is how you do it. This is the JV of wholesaling. Get the five deals. Here's the point: I don't care how long it takes you to get there. Some of you going to get there in a month or two. Some of you could be a year or two. Here's the differences: just don't quit. Execute. You just have to get your list. You have to pick a marketing medium. Stay in the rules, and freeh wholesaling.com, you can get anything you you want to get done in wholesaling.
So what's step three on here? It's simple. The next one after that is now you step up the big leagues, and we are going to create systems. But here's the problem, guys. So many people want to go from here all the way to here, and you can't do that. I'm going to erase it because I don't want to encourage it. Everybody wants a shortcut. But remember what I said: if you do the hard work up front, it will get easier. If you don't understand the fundamentals of wholesaling, no matter how great of a scaling system you create to create a real business, you're going to struggle because you don't understand the fundamentals of wholesaling. Master the fundamentals of wholesaling, and you can do anything. So how do we master the fundamentals of wholesaling? It's simple. I'm going to flip this over for you.
So guys, we're going to go from the JV to what we call, I'll show you on the other side. We simply going to start with the education, and you're going to attack outbound marketing or go to government lists. Learn more about it. freeh wholesaling.com. So let's flip over and do a little cheat sheet here. So now I'm going to give you a little bit more detail. Now I put rules on this side, and I'm going to start with them first. Rule number one: O.D.N. Off-market, direct to seller, that needs to sell. You hit all three of those, you are in the right spot. And remember, we don't sell in wholesaling, we qualify, we educate, and we solve problems. If you think you're going to come in here and be a slick car salesman or like one of these internet guys, you there's no magic word to get people to sell. You have to become educated, and you have to become very confident, and you have to solve people's problems, and just keep them in their lane. If you can do that, you make a ton of money. You don't have to sell, but you have to be like a guide. I tell people all the time, we are not selling luxury cars. Everyone who sells me a house, I'm solving a problem. If you solve a problem, you find the right people to solve a problem and execute, you can do anything you want. So O.D.N. Next one: don't quit. Rule number three: don't quit. Rule number four: don't quit. And if you don't quit, I'll teach you how to be a marathon wholesaler and avoid being a sprinter. What's a sprinter? Someone who looks good on the internet, or somebody did wholesaling and they said they're doing wholesaling, they're technically doing speculation. I don't teach that. People who go in and out of wholesaling, people who leave the country, go back and forth, go back and forth, it means they were never wholesaling to begin with. I've been wholesaling for 22 years. I've done great every year. Have I had tougher years than the others? Absolutely, but I didn't quit. I'm a marathon wholesaler. If you want to be a sprinter, go follow someone that did five or six deals and take their training method. It's they're everywhere, but I'm just telling you, if you want to last, you have to learn the fundamentals of wholesaling.
The next one: no excuses. No excuses. If you're giving excuses to anybody, myself, Zach, your mom, your dad, your business partner, get rid of them. They do not help you. If you're making an excuse, you're not making money. Just stop it. If you're in the habit of it, recognize it, get rid of it. And the last rule is to two-year sacrifice. When you start out on wholesaling, a lot of you could take up to two years to get off the JV team. It's it's okay. Some of you put ridiculous time. "If I don't get X amount of deals in 30 days, I quit." You already quit. If you come up with that. People ask me, Rick, how many phone calls do I got to make before I get my first deal? I go, I don't know. But if you set a number after a thousand, don't even start. If it had to be 150,000 calls, would it be okay to get your first deal? That's the attitude I need. You have to just burn your bridges and go all in. I'm not telling you to quit your jobs or do anything irresponsible, but you can't dabble in wholesaling. You have to go all in. When I started out wholesaling, I had a full-time corporate job, and I did this on the nights and the weekends for the first eight months of my career. I went all in. I just, I didn't make an excuse. Yes, I had a very time-consuming job, but the job was not the my ends to a mean, and I wanted to get out of it. Wholesaling was my key.
So let's jump over here. So we've already have the game plan here. So if you're starting out a JV wholesaler, basically you're going to gather your marketing list, go after the government list. Why? Where there's smoke, there's fire. And when there's fire, you can do anything you want. But it's much easier to find the smoke than the fire. We need to find people that need to sell their house. That's why we always start you with government lists. Now, keep in mind, you're going to get some resistance on these lists. Me and Zach recently just did a video and categorized them and told you about all the issues with them. Overcome resistance with persistence. It doesn't mean be mean, it means use your rapport building skills and talk to the employees of the government, just like you talk to your motivated sellers. Get to know them, get to know their families and their pictures. They're the gatekeepers. And if you sweet talk them, you can pretty much get anything you want. It doesn't mean you're going to bat 100%. My favorite types of government lists: code violations, pre-foreclosures, probates, and tax delinquencies, hands down. Go to freeh wholesaling.com. We have a heck of a lot more. Once we do that, we are doing our outbound, are going from zero to five deals. How long does it take, guys? I don't care. How long does it take? Let me ask you, when you started out walking, did your your parents give up on you with the first five, 10 times you fell down? No, they kept having you practice until you walk. They go, "If he doesn't, if Timmy doesn't walk by Friday, we just give up. We're just going to give him up like a stroller forever." No. Take that same attitude. If your parents won't give up on your walking, why would you give up on wholesaling? Here's the differences: you have to motivate yourself to do it. Don't give up. We're going to start out with the outbound leads. We're going to gather our government list. And so then the next one to talk, we talk about choosing a marketing medium. Let's go a little detail. Most of you going to text. Most of you that don't have a lot of money, you're going to start out cold calling, reverse driving for dollars, leaving a sticky note on the door. I like the max reverse driving for dollars with code violations and pre-foreclosures, which I put up right here, boom, boom. And you can do it with tax delinquencies too. Don't do it on probates. I'll explain why later. Door knocking. This is how I got started. Use the door knock. Pre-foreclosures takes a lot of guts to do it. Only do it if you feel safe and secure, and it's legal in your neighborhood. Make sure you're not breaking any laws. And then God forbid, don't forget networking. Networking is going to your local investor meetings, REAs, Real Estate Investor Associations. Network with all the other investors you can find. Some of your best friends there. You're going to find lenders, you're going to find brokers, you're going to find hard money guys. You're going to find most likely a potential JV partner. Just attend the meeting. Go before and after. That's where all the real networking happens. And I love them. The key here, guys. Oh, and then I put on there bandit signs. A lot of you overlook bandit signs. Was one of my key starting things out. In the first six months, I did seven or eight deals off bandit signs when I had no idea what I was doing. Why? It's simple. If you go to freeh wholesaling.com, I'll show you exactly how to do it. We simplify it. And no, I don't teach you to put thousands of dollars on bandit signs. You can get by with 10 or 20 bucks. The idea is get a few bandit signs out there, get some traction, get a deal so you can get some money in your account. You're not going to make money going broke. Don't let gurus tell you to invest yourself. And I do believe in that, but in wholesaling, I'm giving you the information for free. Me and Zach are the only ones that do this. Why? We want to do deals with you. If we show you value, show you our methods, and we stand behind them and give you the truth, then you guys are a lot more likely to do deals with me because that's how most people do deals with me.
Now, the next one is, once we get the five deals, I'm going to teach you inbound leads right here, okay? So now I'm showing you the varsity blueprint, and if you understand the varsity blueprint, you understand how this works. So we've done five deals. I'm going to stress to you, do not stop doing the outbound marketing. But Rick, it's exhausting, it's hard. I'm doing driving for dollars, I'm doing a reverse driving for dollars, I'm doing digital bandit signs, physical bandit signs. I get it. But for us to keep the momentum, if you stop outbound marketing, your lead flow is going to stop because now we're going to add a new lead flow that's going to cost some money and some time. Once you want to go past five deals, once you do five deals, I want you to do inbound marketing. The easiest way to start out is direct mail. Rick, does direct mail still work? Yes, I've been doing it over 18 years. It's reliable, it's scalable, and I'll show you how it works. Rick, what kind of return can I get on direct mail? You always start out at two times return, meaning if I put $5,000 into direct mail, I want to make $10,000. And your goal is, once you get experienced, which is usually 6 to 12 months, you can get up to an eight times return. How exciting is that? Say you put three grand in, three times would get you 24,000. You have to look, look at investing in inbound leads as an investment, not an expense. You got to work me through it. Go over to mailing mastery.com, and I will show you exactly how I do it. I don't charge a dime. Why? Because it works. I want you to do deals with me. Go to mailing mastery.com. I'll show you exactly how to do this.
Now, once you do this, this is what we call scaling. So now you're getting incoming calls. I'm going to teach you how to answer your phones live, and you want to get going. The goal here is turn your five deals into 10 deals as soon as possible. The key with direct mail is you got to give it 90 days. If you're going to come in and you go, "It doesn't work," it is a process, it is a business. You have to come up with a marketing plan, you have to come up with a budget, and most importantly, you have to execute. You have to keep the marketing going. It takes about 90 days to get your first contract on direct mail. But here's the cool thing: it builds momentum, and if you'll stick to it, it'll work. If you're going to panic and get scared, don't do it. It's just the truth. You're stepping up. We're getting you into what we call the varsity wholesaling, and varsity is going to require more of a commitment because you're doing things that you've never done before, to makes you uncomfortable. Now, once we get it, we're scaling, we get a two times return, eight times, I don't care. It's three months to 12 months, and then we get that going, and then you can decide if you want to pull back from some of your outbound marketing, or more importantly, can teach you how to outsource it to other people, which leads us to the final part of the system here, which going to be down in three, and we're going to do systems and scaling. Why? Because that's what creates the big money in wholesaling.
Now, a lot of people are telling you that you can scale this thing forever. I'm there are limitations in how you can scale wholesaling. I've been around 22 years. There is no billion-dollar wholesaling corporations because all real estate is local. So with the advent of virtual wholesaling, it is much more nationwide, but you still got to understand it. The the idea is to get your 10 deals, now down to 20 deals. At 20 deals, 10. Once you get to that, consider doing systems like X leads. You don't have to use X leads, but X leads is the all-in-one wholesaling platform where you can do your marketing, you can do your acquisitions, and you can do your dispositions, and you can get that going. And keep in mind, inside X leads, we have the ninja mode built to help you with automation and follow-ups. Most of you guys are terrible in follow-ups. If you work with an X leads, you can actually work with me and Zach, join our community, and do everything for one like low monthly price, which is way lower than any guru you're going to get out there. And keep in mind, you get unlimited skip tracing. Nobody else offers that except us. Check that out. But you want to add systems to it. Once you add systems, you want to get the 20 deals. If you want to get the 35 deals, now we're talking about considering hiring employees at this point. Why? Because you have worked in every seat in your company, and you can easily teach marketing, you can easily teach acquisitions, and you can easily teach disposition. So many people want to outsource this when they've never even done a wholesaling deal. That's not sustainable. So you have to understanding. And then once you want to do like 35 plus deals, I'm not talking about month and year, you can do the system what we call leverage, and this is using other people, other resources, using your scaling inbound outbound. You can do local, you can do virtual, and you set up a system. Everybody can communicate on. The truth of the matter is, very, very few people ever get past this point. And then everybody wants to teach all these advanced systems down here. I recognize, being a wholesaler for 22 years, very few people get past five deals. And that's why I'm so passionate about trying to teach you not only get your first deal to get your first 100 grand, because I want to show number one, you can do it if you put in the hard work. Stop trying to cheat yourself. There is no shortcut. Anyone who tells you I have a method so you don't have to wholesale and fight with all those other wholesalers, I promise you, they're getting into your pocketbook. There is no substitute for hard work. If you'll do the hard work, if you'll have the hard conversations, you'll do the marketing, and you focus on people that need to sell their house, direct the seller, that are off-market, that is the wholesaling zone. That is the fundamentals of wholesaling. Fishing around with retail sellers and realtors is never going to get you a great deal. In fact, that's what drives most people out of wholesaling. The fact of the matter is, that's not wholesaling. Wholesaling is about working with sellers with problems and putting a deal together that most realtors would never even dream to take down because they're too scared to ask for it. You're not. You're built of a different breed. You're a wholesaler.
So if we want to go from JV to Varsity, this is the truth. Don't worry, this is recorded, you can check it out. And guys, let me know in the comments if you are going to join the Varsity wholesale team, but you got to do the work. There is no substitution. Remember, it doesn't matter if you paid somebody 100 grand or you went through the course training free with me and Zach at freeh wholesaling.com. Everybody goes on the wholesaling journey, and you're going to have to experience it. Dig in, do the hard work, and learn the art of wholesaling. To me, the highest skill set you can learn in real estate, because if you can master wholesaling, there's no stopping you in wholesaling, and that's my favorite part about it. So guys, let me know in the comments if you're going to take advantage of becoming a Varsity wholesaler. And as usual, if you got value from this video, smash that like button, hit that subscribe button so other people can find the truth out about wholesaling. This is Rick G. I'll see you in the next video.