INTRODUCTION – SMART REAL ESTATE WHOLESALING
Do you ever find yourself saying “there are no deals?”
“Marketing is Expensive.”
“I don’t even know what a deal looks like after spending $10,000+ on guru boot camps.”
I got you.
As a real estate wholesaler who has closed over 40+ deals personally, I’ve got some insights to share with you.
After additional thousands of joint venture transactions, other types of deals and 12+ years as a full time entrepreneur…
I have decided to share my secret sauce with you and other real estate wholesaling professionals; established and aspiring alike, in 3 simple steps.
There are 5 main old school marketing strategies that’s making you lose money and waste time that you need to let go of immediately:
- Direct Mailing
- Bandit Signs
- Cold Calling
- Driving for Dollars …and
- Knocking on doors
Let go of these unproductive activities immediately and let the suckers in the market place spend the money, time, energy and resources doing them for you for free.
As I create this, I am on a 6 hours flight between Newark, New Jersey and Sacramento via San Francisco, California for a 2 weeks Consulting gig with Hills Physicians.
As usual, I have defaulted to leveraging this down time to use my iPhone notes to create this publication.
As you will learn later in this publication, Leverage is the major key in the concept of building your real estate wholesaling business on the 3 pillars.
The secrets I will share with you here are timeless but revolutionary at the same time.
It will give you an edge above people that haven’t gained access before you.
Unlike 99% of the real estate wholesalers out there, You will learn how to make $1,000 or more per day even without closing deals.
You will also discover how that skill helps you create a 1,000% better chance of closing more deals more frequently beyond the obvious.
The obvious is that $1,000 per day will help you create more funds for more marketing and more importantly perpetual marketing.
Perpetual Marketing is the secret behind how the gurus position themselves for consistency which is the #1 secret of any trade in the history of mankind.
But if you keep engaging in old school marketing strategies with your money in the modern age, you will still get burnt out like most of the thousands of real estate wholesalers getting started daily.
1st of all, you need to be 100% clear that you are a marketer.
You only get paid for mastering modern day marketing in real estate wholesaling.
Therefore you need to promise yourself to stop calling yourself a wholesaler; you are a marketer.
The truth is that there is a revolution going on in the world of business in general with respect to how revenue is created.
Here is a statement from a former Facebook manager.
“The world’s largest hotel company, AirBnB doesn’t own a single piece of real estate.
The world’s largest taxi company, Uber doesn’t own any cars.
The world’s largest media company, Facebook doesn’t produce any content.”
~ Antonio Garcia Martinez Former Ads Targeting Product Manager, Facebook
What do they have? Data around on how you use those resources.
Based on these facts, let me share the first secrets with you.
As you should know already, real estate wholesaling traditionally involve these 4 steps:
- Targeting and finding motivated sellers.
- Negotiating a 65% of After Repair Value (A.R.V) with the seller.
- Putting the subject property under contract.
- Finding cash buyer or investor to assign the contract to in exchange for an assignment fee of around 10% spread of the A.R.V.
As you can see in that 4 steps, you have been taught by the old school gurus to target these 2 types of people simultaneously.
- A motivated seller.
- A cash buyer.
Those are basically cold prospects.
You have to convert cold prospects to warm prospects and then to hot prospects before you can have a remote chance of them doing business with you.
Converting cold prospects to hot prospects is been done for you by the suckers in real estate wholesaling already.
There are tons of thousands of hot prospects already available in the market place but they are struggling.
They are confused real estate wholesalers who are also investing in over-leveraged deals, buying and then becoming motivated sellers or selling and then becoming your potential joint venture partners or confused and struggling with real estate wholesaling in the modern age and then becoming a potential protege in your network like the Facebook, Uber and AirBnB of wholesaling.
Why not leverage, target and serve that audience by creating a huge network of real estate wholesaler and become the hub and market network for deals nationwide.
Targeting and serving hot prospects a.k.a struggling and confused real estate wholesalers is a lot more profitable because you don’t have to do any selling.
Obviously, that starts by mastering the proven concepts, strategies and step-by-step tactics that I will be sharing with you over the next 9 chapters.
Hence why I will recommend going through this publication at least 10-15 times.
Repetition is the mother of mastery.
You will discover how to use the law of attraction for magnetic marketing and attracting deals…
It’s a concept that I learned from Dan Kennedy via a gentlemen called Mike Dillard through a platform called My Lead System PRO.
It works timelessly with respect to the ever evolving technology driven society.
SECTION 1 – VALUE – The 1st Pillar of the Empire
In this section, you will discover exactly what it means to know exactly how to command top dollars on demand and anytime you want.
This is done by giving your targeted audience exactly what they want, crave and desire.
The only way to make money in real estate wholesaling is to add value to the market place.
Most people have a bastardized definition of what value is.
Most people have an idea of what they think their ideal customers want but of course most ideas will of course yield zero revenue.
Real estate wholesalers think they know what the market wants and that’s typically a motivated seller and distressed property.
That is NOT the definition of value.
Value is in the eyes of the market place and not the marketer’s eyes just like beauty is in the eyes of the beholder.
Unfortunately, you don’t get to assume what the market wants.
However fortunately, you now know better as 99% of real estate wholesalers will continue to assume because they assume that the gurus know any better.
Have you ever heard…
“I have a great idea.”
“I have the best idea that will change the world.”
I am sure you have but let me share a quick fact with you.
Most ideas are poop; just a complete waste of brain and mind resources that will never result in a profitable venture.
EVEN WORSE is that most existing conceptualized and profitable executed idea will at some point go obsolete and worthless.
Here is an example.
When I started my real estate wholesaling business back in 2005, the sellers typically had just my professional advice to work with at the time.
That made it super easy for me to close 90% of all my appointments as clients.
Before the economy crashed in 2008, the sellers were already a little more exposed to the Internet hence a lot more advises and choices.
The prospects would do research on Google before I showed up and would basically find a lot of information that turned to too many objections for me to handle.
It lowered my conversion rate and affected my bottom-line so I had to adjust.
They had choices and there was a shift in my conversion rate from a prospective seller to a “property under contract.”
Basically, the only solution I had was to increase my marketing, prequalify prospects on the phone, and make the sellers sign the contract and fax to me.
I, then, only saw the property during inspection.
It’s called a market shift and with every market shift, the way you add value to the market must also shift in order to sustain profitability.
In essence, there must be a perpetual listening to the market place in order to run a sustainable and recession proof business.
Here is the most important thing you need to know about value.
The consumer defines what it is and it’s your responsibility to make sure you understand it however way they communicate it.
I say that because value is not always communicated in words, or any type of obvious medium.
Sometimes it requires collecting data and comprehensive analysis.
However with the information in this publication, 80% of that heavy weight is done.
That’s why I can’t stress enough that you need to go through this publication at least 10-15 times.
Let’s get into it.
CHAPTER 1 – Branding & The KLT Factor
In this chapter, you will discover 3 factors that will make your prospect see enough value in doing business with you.
In this chapter, you will also discover how the KLT factor helps you attract motivated sellers, buyers and prospects who have already closed themselves on the very idea of giving you money.
You have crossed all the t’s and dotted all your i’s of the text book definition of what the gurus taught you about real estate wholesaling.
May be you are one of the top 10% who actually made it to finally realizing that the one activity you get paid for is Marketing…
Congratulations, that’s a big deal.
But there is a problem.
You attract prospects but in most cases, they choose to not sign your contracts after investing time in marketing prospecting, begging and pleading basically.
The more you beg and plead, the weaker and valueless your offer and services look to your prospects.
Neediness makes it less likely for the prospect is to stick to the terms even if they sign, be open to adjustments and re-negotiations, make the process easy and even help you close the deals.
You have spent money, time, energy and resources on attracting the prospect.
You did an awesome job on marketing and promotion.
But you’ve done a terrible job on closing.
At this point, you figured out that you need to learn how to close the prospects.
Yet again, you stumble into old school gurus who claim that they’ve hacked the secret to closing by handling objections.
Here is the problem with old school sales tactics such as objection handling.
Objection handling is border line synonymous to begging and coming off as needy to your prospects.
The law of attraction is becoming more and more of the driving force of business in the modern age.
Being needy kills attraction and only makes your prospects want to run away from you. It devalues your offer.
Hard closing is one of the most ineffective activity to invest your time in today due to the fact that there are multiple easy leverage points to getting prospects to close themselves on your offers, services and choosing you.
3 of this leverage points is in the K.L.T factor and it’s super easy for you to start leveraging them in your business now.
As I pointed out previously, people have choices and options at their finger tips these days.
If you try to hard close them on your products and services, the options right from their smart phone of similar and even better services are endless and they will end up buying into others.
Therefore it is more important now than ever before to create unique emotional hooks that help your prospect default to choosing to work with YOU.
The only one counter to easy accessibility, choices and options is the simple fact that there is only ONE YOU.
As a real estate wholesaler, you are only one of thousands coming into the game everyday.
The gurus are conducting seminars every weekend, selling their $25,000 programs and creating all these wholesalers who basically send the same yellow letters, hang the same bandit signs.
There are a lot of people doing the same thing and the more people doing it, the less value it adds to the market place.
It’s just supply and demand. Higher supply equals to less value. So guess what we will never have enough supply of…
You stumbled into a prospect and there was an alignment of 3 elements in his/her mind.
Now, he or she is attracted to the very idea of achieving a common goal with you, serving his or her need and simultaneously creating cash flow for your real estate wholesaling business.
The prospect is attracted to this awesomeness of an idea to work with you, and he doesn’t even know why and neither can he explain why.
With this formula, they typically don’t even have a full understanding of how the deal will go before deciding to sign your contracts.
This prospect is ready to sign the contract and doesn’t even mind signing it without the presence of an attorney.
There are no hard closing or objection handling necessary; all they ask for is where to sign up because they are already sold.
What are these factors that need to align and can you reverse engineer it?
It’s the K.L.T factor.
The KLT factor is an acronym for know, like and trust.
The interesting part about it is that your prospects don’t need to exactly know, like and trust you. They simply have to feel like it.
Human beings buy with emotions 85% of the time and justify with logic later.
There is a quick test that you can do to see if you have any KLT equity in the market place.
Google your personal name and see what happens.
1 of 3 things will happen if you are like most real estate wholesaling investors.
- The search will generate all the value you have been adding.
- You will see random uncontrolled information about yourself or…
- You will see nothing.
The 3rd scenario is not what you want. With that being said, go ahead and Google my name “OLA Tux Abitogun”.
The truth is that people will Google search your name even if all you are trying to do is become friends.
How much more do you think your prospects will search when trying to make big financial or buying decisions?
One of the biggest new things in the digital era of eCommerce are product reviews.
People’s buying decisions are highly influenced by these things.
However there is one big influence that can beat the effect of product reviews.
It’s called content marketing.
Content marketing is the act of reverse engineering your K.L.T factor.
With each content (video or written article) you publish to answer questions and solve problems for your market and prospects, you will then increase your brand equity.
Later in this publication, you will discover simple formulas to start increasing your brand equity and boost your K.L.T factor.
Once you get this going, it will virtually be impossible for anything to kill your business forever even if you tried.
Think About it.
When you publish valuable content over and over on the internet, you can’t erase it.
That’s my story right now.
But you need to be aware that you are creating stories everyday with you in it as the main actor.
These stories can be leveraged heavily to increase your KLT and brand equity.
The earlier you start doing that the better and the more edge you will have against all the people that come after you.
The playing field is leveled right now and they may not always be that way.
Here is your first opportunity to experience how easy it is to do this in 5 steps.
- Record a simple video summarizing what you learned in this chapter.
- Transcribe the video into words, title and description.
- Upload the video to YouTube.com, Complete the title, description and search keyword tags.
- Submit and…
- Promote the video link to your social media profiles.
The longer you wait to start building your brand equity, the higher the chances of increased chances of saturated self proclaiming experts.
However remember that the cream always rise to the top.
The K.L.T factor stands for know, like and trust.
These are the 3 stages that a prospect goes through before deciding to sign contracts or buy into you.
Are you still confused on what content exactly to invest in publishing, in order to build a massive attractive brand online?
I will give you a simple formula for that on the next chapter.
CHAPTER 2 – I.L.D.T
4 Steps to Building a Profitable & Sustainable Real Estate Wholesaling Brand.
In this chapter, I want to share a global formula to build an unstoppable and viral brand by leading with value which is the 1st pillar of a profitable and sustainable empire in the modern age.
With this, you will be plastering a web of yourself around the internet in a way that attracts all the deals you want even if you are operating on a shoestring budget.
Traditionally, real estate wholesaling starts with putting out offers on distressed properties in particular effort to find a motivated seller who is willing to sell at 65% of the after repair value (ARV) less the estimated cost of repair or lower.
The more offers you put out, the higher your chances of getting some offers accepted and assigning them for lucrative assignment fees.
That’s what we call a deal.
As you have probably realized by now, real estate wholesaling is a business and that means you need to have a pipeline of offers going out if you want a strong and solid competitive advantage.
These distressed properties come from one place. They come from people.
In order to assign your accepted offers and contracts that you have secured, you also need qualified buyers and investors.
Money comes from only one place. Money comes from people; specifically buyers.
But the money is in exchange for discounted properties that can receive value from fixers and rehabbers and turn to profits.
I say all these to say at the end of the day, you need people.
You need to attract lots of people in order to do real estate wholesaling business successfully and sustain-ably.
In fact, your primary source of results and revenue is attracting people by marketing to attract these interests.
But marketing can be very expensive if you are not applying proper leverage point in accordance with the times that you live in…
With the 5 traditional marketing methods such as direct mailing, driving for dollars, knocking on doors, cold calling and hanging bandit signs, the competition is very high and any of these strategies are very expensive at least in the long run.
Also, all the real estate wholesaling investors are doing the same things so there is no way for you to stand out plus there is a massive banner blindness.
Banner blindness is a term used to describe not noticing a banner because you’ve seen it so many times.
Have you noticed that you don’t pay attention to the big billboard on the highways anymore especially if you frequent that road?
Have you noticed how fast you click skip on ads when you watch videos on your favorite YouTube channel?
That’s what happens when people see “I BUY HOUSES” signs on the road or if they receive 25 letters offering them to buy their houses.
It’s over-supply of the same offer and higher supply equals to lower value.
It’s a universal law in economics.
So in order to overcome this problem of over-saturating potential prospects with a bunch of real estate wholesaling offers, I recommend leading with value in order to stand out.
As you learned already, the 1st pillar is value so I suggest that you lead all your marketing and prospecting with value.
Value simply means identifying the problems and providing information on corresponding solutions.
It also means answering most commonly ask questions of your ideal prospects.
I would go further and ask you to understand the pain of your ideal prospects at a deep level, and learning to help link them with a solution that creates a corresponding pleasure.
If your target market were to be vacant property owners, what pain would they be having for having a non-performing asset laying around?
- Are they getting hit with taxes every month with no hopes of ever creating income from the property?
- Could the owner lack the funds necessary to renovate the property?
- Is the owner traumatized from bad tenant experiences?
Knowing these information and learning how to tell a story that paints the perfect picture that replaces the pain with pleasure will help you lead with value.
When you lead with solving problems and adding value in your real estate wholesaling business, prospects will receive you with those defense walls down.
Getting them to sign your contracts and do business with you will be almost effortless.
The fear of a lot of people when they finally discover that they have to lead with value by producing, publishing and promoting content (content marketing) is this.
“What do I say in my videos?”
“What do I write about?”
There is a 4 steps formula that I personally use for my content marketing.
It’s called I.L.D.T.
- INVEST – Invest time and possibly money in education.
- LEARN – Learn perpetually and consistently without trying to learn it all at once.
- DO – Do and execute on what you are learning as you go without attachment to perfection.
- TEACH – When you teach, you learn twice.
Don’t over-think teaching.
It basically means sharing a summary of what you are learning and discovering as you go.
By doing this, you are automatically producing content, building confidence and a massive opportunity attraction current on the fly for your real estate wholesaling business.
This is the method I have used to produce thousands upon thousands of lines of instruction, value, videos, articles and marketing agents since 2009.
In fact, this publication is a token of that.
The content is real and it reflects real time useful information for the audience that it attracts.
These audience become my customers, clients, partners, deals, results, revenue or source for all of the above. That’s why we call content marketing the gateway drug of opportunities.
This concept is the very reason why your gurus take the time out to produce, publish and promote videos at least once a week for you on YouTube and other channels.
If a newbie real estate wholesaling investor finds a referral deal and doesn’t know what to do with it, who do you think they are more likely to call to joint venture with or make that money with?
A content creator on YouTube who they’ve learned from or a person that’s not on the radar?
That’s not a trick question.
Your ever growing content puts you on people’s radar consistently and perpetually.
Not only are you the expert, you attract the best deals for joint venture opportunities.
I know because I shared my first 4 deals with my mentor resulting in close to $100,000 for us both without him spending a dime on marketing.
What I am sharing with you here is basically turning that proven concept into a system that have deals chasing you down.
Imagine building something so massive and being able to make $10,000 per month without spending a single dime on marketing. That would be neat right?
The rest of this publication will serve as your first steps which is the fact that you are already INVESTING this time and possibly money in LEARNING this.
All you have to do is to start sharing.
The I.L.D.T workflow guarantees you become a highly respected expert in the real estate wholesaling business.
This is not one of those scenarios where you call yourself an expert like a clown.
You become the expert because you plugged into an unstoppable source of knowledge and you are also feeding the marketplace as you go.
That’s what an expert is.
Check out this simple 5 steps process and use as a quick guide for practice.
- STEP 1 – Read a page, a chapter or a video.
- STEP 2 – Take some notes as you do.
- STEP 3 – Record a video of yourself sharing what you learned in your own words using your simple smart phone.
- STEP 4 – Use your notes to write a short 50 – 100 words description of what you shared in the video.
- STEP 5 – Publish the video on your personal branded YouTube channel.
Not too many people are doing this at the moment so it is definitely time to get going before the gurus start selling people a $10,000 program on how to use simple content marketing to attract lucrative opportunity and real estate deals online.
Start practicing with reading through this publication.
Take notes and after each subsequent chapters, turn on your phone camera and follow that simple 5 video publishing steps.
Don’t over-think it.
Practice makes perfect.
Go ahead and start creating a massive web of authentic real time content that brands you and attract opportunities and deals to you.
As you build these agents (a.k.a content) around the internet web, they live on for as long as the internet lives.
When people decide to research before signing up with you as they will, they will simply find additional reasons why it’s an awesome idea to work with you.
Your conversion rate from prospects to signed contracts will 10x.
Opportunities will also present even when you never spend a dime on advertising and marketing for it.
It’s not exactly magic but it will feel like it. It’s basically the result of learning how to invest time and turning it to equity.
This concept of using content to attract opportunities is timeless but know that it gets harder the more people find out about it.
However as always, the cream always rise to the top.
This process, because of the perpetual learning, will keep you at the top.
Remember that you are supposed to already be investing in yourself.
I simply recommend that you start sharing what you are learning.
When you do that, you create channels to attract massive opportunities into your real estate wholesaling business.
CHAPTER 3 – Data Collection
How to generate real estate wholesale deals by marketing intelligently for free and for life.
Imagine sending ONE email and your $3,000 mortgage payment for the month gets paid just like that.
Compare that to waiting forever on your next or first real estate wholesaling deal that may never even close.
Imagine knowing the exact segment or demography that responds the best to your messages; gender, age group, interests etc, equipped with this type of information about your prospects, how easy would it be to create solutions that you know they want for a fact?
Before this publication, you were probably exposed to 5 main marketing strategies, all of which fall short of the level of business intelligence you need to operate a smart real estate wholesaling empire.
For example, direct mailing starts with access to data about property owners in distressed situations such as foreclosure, divorce, death, bad tenants, tax delinquency etc.
However that level of data is not enough to compete in this modern age.
Back in 2005, it was good enough because there was no oversupply of real estate wholesaling investors as we have today.
The competition is a lot higher now therefore you need a better competitive advantage.
You need to collect a lot more information than just names, property addresses and status.
All you get with that is an ability to send letters.
That’s too much of a wide net to cast and it’s just too expensive due to the competition.
So even though, there is a list involved in direct mailing, mailing that list is a cold marketing strategy because the prospects don’t know you; much less liking and trusting you.
The K.L.T factor is missing.
In essence you have to sell them on doing business with you as opposed to being already sold before their subscription to your list or network.
Marketing without collecting primary data a.k.a contact information, will make you dry up your marketing budget very quickly.
Your primary objective when marketing to a brand new cold prospect is to offer them some type of valuable information in exchange for their contact information such name, email address and phone number.
That simple concept creates a major difference in your sustainability as a marketer.
As you collect this first level of data, you are building a list of highly interested and targeted audience that you can keep marketing to for free.
That gives your real estate wholesaling empire strength to carry through long term in marketing bandwidth.
As you are probably becoming more aware now, the real estate wholesaling business is basically a survival of be fittest.
The person that can spend the most on marketing wins the game. But spending the most without a plan to sustain the limitations of your budget is a losing battle.
It’s about knowing how to preserve your resources using leverage and not necessarily by holding back on spending.
If you are trying to win the game of lowest spending, all you have to do is stop spending.
I’m guessing you want more than just low marketing spending; you want profitability.
So you need to create multiple leverage points that creates a funded perpetual marketing machine for your real estate wholesaling empire.
If all you do is market to prospects without first level data collection hacks like building a list of prospects’ contact information, you will create ultimatums in your marketing funds and time budget.
Your marketing won’t last long enough.
To take it a step further, first level data collection is not enough. In order to market and generate revenue cost effectively in the modern age, you need to collect data about first level data.
For example, it is not enough to have the names, property addresses and status of preforeclosures in your city.
You also need to know the age group and gender that respond to your marketing messages the most.
It’s even better when you collect more data about the type of messages they respond to the most.
What if you also have information about other interests common to your prospects?
Not only are you able to customize your offers and services to what they want, you can also create other joint venture and partnership about opportunities for the market at large on a larger scale.
That’s when you know that you are truly building a real estate wholesaling empire and not just chasing after your first or next deal.
So in 2006 after closing about 7-10 real estate wholesaling deals, I quickly realized that the typical idea of available cash buyers sold to us by the gurus was complete BS.
First of all, there were too few of them available to buy the properties I was getting under contract.
In addition to that, the few cash buyers typically have 1,001 reasons why it is not a good enough deal for their criteria.
At first, I believed them and sulked around claiming there were no deals.
I had buyers ready to go or so I thought but the properties I had under contract did not fit their criteria.
According to them, those were not deals.
After observing my mentor, Anthony, a little bit, I realized that he was attracting his end buyers who were not necessarily cash buyers from the mainstream.
These buyers were willing to pay a little more for these discounted properties than 75% of after repair value.
I decided to take this idea a little further.
I built an online platform that collected first level data a.k.a contact information from people interested in properties with in built equity; I built a list of 500+ buyer prospects which turned out to be a community that expected my daily email offers religiously.
From 2006 to 2008, getting qualified buyers for the properties I had under contract was the least of my issues.
I would simply send an email to my list when a property becomes available and a few people would either be interested in and qualified to buy the contract or they would have someone in their network who is willing and able.
Collecting data and building my list and network to source buyers was the smartest thing I did for my real estate wholesaling business back in 2006.
The dumbest thing I did that exposed my business more to the recession in 2008 was to stop promoting and building that list.
Your favorite gurus and the ones that get result in the game do the same.
You can see it in the very same way that you’ve consumed their information till now.
If you watched their video on YouTube, they would encourage you to subscribe, like and share.
That’s data collection.
If you visited a website, they would offer a free subscription to their newsletter, that’s data collection.
If you visited a website even if you don’t subscribe, your data is still being collected…
That’s the modern age.
After subscribing through one of the gurus content distribution channel, you would receive emails and other types of notifications about newest content releases.
They are able to create a living connection with you, the prospect, because they lead with value in exchange for your contact information; basically, they collected your data.
In previous chapters, you learned to lead with value. However giving all your knowledge and wisdom away is not enough.
With any type of marketing, you establish connection with a prospect. But in order for you to be able to continue to serve, you need on-going connection with the prospect.
That’s only possible when you collect at least first level data from them; their contact information such as email addresses and/or phone number.
Therefore you are able to continue to send more valuable information and special offers to them.
As you build that list, your business grows.
And as I mentioned before, one email offer can pay your monthly mortgage for the month and even more.
You can create affiliate partnership and offer other people’s real estate related product to your subscribers.
It is also worth noting that data collection allows you to learn more about your prospects in proactive and passive ways.
An example of proactive ways is sending a survey to your list to learn more about how you can best serve them.
When you make data collection the primary objective when marketing, it’s a guaranteed strategy to better business intelligence and more importantly, you get to create perpetual opportunities to market to your best prospects for free.
Sales will happen and contracts will be signed without you having to sell.
It will have direct and on-going impact on your bottom line.
What if you just download a vacant property list from listsource and send them letters?
Could you still find and close deals? Sure you can, but the chances are a lot less.
You would create dead connections but you will need luck and lots of hope to operate your real estate wholesaling business.
A DEAD connection is created when you don’t use the first connection as an opportunity to collect data thereby not having the ability to continue to connect without additional marketing expenses.
So ultimately, it depends on the call to action in those letters.
If your letters offer the prospect a downloadable from your website in exchange for their email addresses, you will be creating a living connection because you are collecting data.
If you are attempting to get a prospect to call you, you are creating a dead connection.
If life happens and they are not able to call you immediately, you lost money in marketing to that prospect and you will have to spend money again in order to have a chance of getting their connection ever again.
Never spend a dime or a second in time again on marketing without the primary goal being data collection.
In addition to collecting first level data such as their contact information, the tools nowadays will help you collect more levels data about the prospect to help you make more intelligent business decisions when it comes to marketing.
If you are not collecting data, you are not able to follow up effectively with your prospects.
Both selling and buying prospects need more than 5 exposures on an average before deciding to sign contracts and/or do business with you.
I am often tempted to create ads and content designed to close without data collection.
I come from that “always be closing” A.B.C sales mindset. But things are changing fast.
In the modern age, A.B.C stands for “always be creating” or “always be collecting data” A.B.C.D.
Getting contracts signed and closing sales in the modern age requires business intelligence which is only acquired through data collection.
SECTION 2 – AUTOMATION – The 2nd Pillar of the Empire
Do you like the idea of making money in your real estate wholesaling business while you are sleeping and snoring deeply dead in the middle of the night?
Most real estate wholesaling investors try to outsmart the universal laws and the rules of high performance and hyper growth.
One of those rules is…
“Thou shall leverage existing resources, trends and ocean waves.”
Another one and probably more important one is “thou shall not swim against the trend of the ocean.”
In fact, we all start with some level of existing resources if there is life even if all you have is life.
With a little bit of “above average” desire and will, leverage will create a behemoth size real estate wholesaling empire.
That doesn’t mean a $20,000 deal this month and then nothing for the next 3 months after that or never.
I mean $10,000+/month in absolutely predictable monthly cash flow into your business.
The beauty about that is the fact that AUTOMATION as a key pillar and form of leverage also increases your chances of having $20,000 windfall days dramatically.
99% of real estate wholesaling investors have been trained with approaching their business with a manual labor mindset.
They feel the more they do, the more results they create.
Basically, they setup the business in a way that requires their direct input before they can make any money.
A bigger problem is when it’s not just a knowledge problem but more of a mindset issue.
I’ve met people that would rather feel like they are active than actually making money or creating valuable results.
The conventional knowledge is to send direct mail, drive for dollars, cold call, knock on doors, and hang bandit signs.
If you have ever tried any of these things, you would already know that they are labor intensive strategies that generates results for a limited time if any at all.
I believe there is honor in labor but I also believe you can go broke thinking that higher labor equals to higher productivity.
At the end of the day, the more value you add to the market place, the more money you will make. Manual labor is a low productive input in a technology driven age.
The only reward you get for manual labor is from selling your time.
Have you noticed that at a construction site, the hardest working person from a physical and manual labor standpoint is the lowest paid person?
You can actually observe this same thing across every work of life.
It makes sense because manual labor translates the lowest to actual value added than every other form of labor.
Jeff Bezos, the founder of Amazon, is the first $100 Billion man in history because he has added the most value in history.
Clearly, he hasn’t added the most manual labor value.
He is simply the guy behind the most valued results creating automated machine ever.
It’s called Amazon.
With Amazon, you never have to leave your house to shop ever again.
You can simply grab your smart phone and have everything you want delivered to your door steps while actually spending less money.
You don’t have to agree with it.
The numbers speak for themselves and most importantly, the numbers agree with the concept of automation. The same rule applies for real estate wholesaling investors.
Results are created in your business when you create deals that allow end buyers and investors to find and secure properties that they can add value to and make profits from.
So your key performance indicator (K.P.I) is not necessarily how many properties you put under contract.
It starts from how many contracts created that gets assigned to an end buyer for assignment fees because that’s when results are actually created in a traditional real estate wholesaling business.
The top 1% of the real estate wholesaling game simply focus on anything that triggers more K.P.I, more revenue and results as fast as possible; not necessarily humanly possible.
Machines are learning more and more.
Artificial Intelligence is a real fast growing reality in every business model you can think of from medical to real estate and all types of industries.
Most real estate wholesaling investors acts as if it’s not applicable to them.
Some do this under the excuse of being a newbie and having a low marketing budget.
That excuse would only be valid if computers were more expensive for certain classes of people.
That’s clearly not the case.
Anyone can pick up a decently performing computer laptop at Best Buy at a low cost of $150 – $250 these days.
Adding world class automation to creating results in a real estate wholesaling business is just a few clicks away.
I will share it all in this publication and implementation will improve the quality of your life and business by 1,000%.
Most people I know personally are hard workers.
However most of them are not remotely close to their fullest potential in productivity or income.
Clearly hard work is not the secret of high performance and productivity.
It is not in real estate as well.
However automation is a major key to building a high competitive business now than ever before.
Time is the most valuable resource that we have as human beings.
We all have just about 24 hours of time on any given day.
When you apply automation to your real estate wholesaling business, a lot of repetitive and redundant activities don’t have to involve you personally or your personal time.
You can then wisely and strategically invest your time in activities that trigger higher KPI for more results and more revenue.
When I started my business back in 2005, I did direct mailing to preforeclosures list to create at least 100 exposures per week for my offer to purchase their properties.
The gurus created so many gimmicky tactics that was sold to students such as hand writing the letters, using only yellow papers and etc.
I, too, bought into some of those stupid stuff.
I would manually apply stamps, lick envelopes and stick them.
It was an excruciating process to get exposed potentially to 100 prospects.
In these ever evolving modern age, exposure can be completely automated therefore increasing consistency, which is the number 1 secret of success in real estate wholesaling.
So the 2nd pillar of a smart real estate wholesaling business is automation.
It will be applied mostly to the relationship building and perpetual prospecting and personal branding processes in the business.
Before automation, these was a time consuming and yet unproductive activity in the business.
I had spent time in the past with prospects that didn’t turn to signed contracts.
It’s not that our offer doesn’t get rejected anymore but none of my personal time is involved in getting through more exposures, prospecting and the only people I spend my personal time with are those who have already said yes to doing business with me.
Society in general is moving more and more in this direction.
Failure is basically guaranteed when you become stubborn and get stuck in old school ways.
What that means is that you are spending your precious limited time on activities such as begging people to do business with you, while your competition gets it done a lot more faster and easier with automation as they spend their personal time with real valuable and signed up clients only.
Swimming against the ocean (society) trend is a guaranteed way to lose in the modern age.
It may not seem like that yet because you are on the fore front of the trend.
In the real estate wholesaling business, 99% of people are still chasing deals and prospects and quitting after failed tries.
But soon enough, more smart real estate wholesaling investors will be created by our movement and becoming one will be harder for you simply because of supply and demand.
Right now is the time to upgrade your business by simply taking the action steps in this publication.
Traditional real estate wholesaling is dead already but as usual most people wake up to that reality when it’s too late.
It reminds me of 2007 when my buddy and mentor Bob advised me to adjust strategies as there was a market shift going on that will disrupt the whole real estate world.
By 2009 that I woke up, it was too late.
The whole real estate world had collapsed a whole year before I felt it in realty.
Don’t be like the “old me”. Setup your 2nd pillar, automation, into your business starting one layer at a time.
It’s not a one time event.
It’s a mindset.
It’s an on-going event for a real estate wholesaling business that wants to be around for a long time.
CHAPTER 4 – Living vs Dead Connection
How to capture your prospects business with precise, accurate and right timing.
I covered the concept of the living and the dead connection a little bit on the last chapter where we discussed data collection.
You learned that a primary reason for collecting data is to create living connection with your prospects.
But I don’t feel that we’ve done enough justice in making sure you understand why focusing 100% of your resources on creating living connections only is key to maximizing your empire’s fullest potential.
Have you ever started a campaign with all your hopes up because of the success stories and testimonials only to run out of marketing budget? If your experience is any close to mine, you may have even gotten a response lead that seems so promising but the prospects goes cold on you.
That’s not fun; is it?
The reality is that timing is not always right for your prospects.
You can write the best ad copy, do all the right things in your marketing and your prospects will still say “no” or “maybe”; simply not ready.
Your prospects make their buying decisions based on how they feel 85% of the time.
They may justify with logic later, but most decisions are emotional in nature.
In order to build emotions up to a level that creates decision that favors you, time and patience must be involved at some point.
You can’t skip the role of time and patience in your business.
When you try to skip the role of time and patience in your prospecting and marketing activities, it leads to suffering and wastage of resources.
Back in 2009, I discover the use of 2 types of landing pages with digital marketing.
The first type is to buy marketing that drives online traffic to a sales presentation.
If a prospect doesn’t buy, I basically lost the cost of marketing to that prospect.
This system is not patient.
It is designed to collect money as soon as possible.
I went with this option, spent $700 and attracted lots of visitors to the website and got one customer which resulted in a $20 Commission.
I lost $680.
The second type of marketing drives online traffic to a lead capture page.
It offers some kind of valuable information in exchange for an email address and/or phone number.
Once they submit their email address, they are redirected to the free gift they opted in for.
But they are also presented with an offer to buy something typically at a price less than $100.
If the prospect doesn’t buy anything during that online session, I have not lost any money because I can contact them again without spending additional money on marketing to them.
How? Email marketing follow ups.
That’s why I encourage my clients to focus on creating systems that allow them to talk to 100 prospects in 1 minute as opposed to spending 100 minutes with 1 prospect.
There are studies that shows that customers are exposed on an average of 7 times before they make their buying decision.
Majority of the time, your marketing will basically act as sowing seeds. You have 2 choices;
1. Get very good at planting these seeds as they build momentum and buying emotions on top of each other or…
2. Try to hard sell your prospect with sleazy sales and closing tactics.
In real estate wholesaling, what I have learned over the years is that you can’t say the right thing to the wrong person and you can’t say the wrong thing to the right person.
Often a deal would fall through and you may try to trace what could have gone wrong.
It’s typically never one thing.
There are lots of moving parts in any type of business and as you are realizing in this publication, real estate wholesaling is no different.
All you can do is control what you can control and ignore the rest.
Your ability to identify the factors you can control and differentiate them from others is the actual first step to control.
You can’t control when prospects will respond to your marketing and decide to sign your contracts, but you can control how many seeds of marketing you are sowing and the message that your marketing promotes.
Knowing for a fact that timing is not always right for your prospect to decide and buy, what if you can set up a system where timing is always right for your empire when the prospects are ready?
This was the idea that created the concept of living and dead connections.
With living connections, a connection was created with a prospect and you can continue to connect with them over and over again without spending additional marketing dollars.
With dead connection, sure a connection is created but it’s a one time event.
In order to connect with the prospect again, I would have to spend additional marketing dollars.
This is one of the major factors that sets the winners in real estate wholesaling apart from the losers; exploring smart loopholes such as finding ways to preserve resources with leverage while building them in blocks over and over again.
The right timing for your prospects is not a variable that you can control.
However with the technology of these days, you sure can create campaigns that makes it possible to position your brand, empire and real estate wholesaling business to serve prospects once the time is right for a prospect even if it’s dead in the middle of the night.
For example, you may have been marketing to a preforeclosure prospect for a while.
It’s now 6 month after the initial contact and they’ve decided to move forward with getting rid of the property.
If you had created a dead connection initially, you wouldn’t have been on their radar and the property would have gone to someone else.
But if your business was smart enough to initiate the contact with a living connection, you’d be in radar and timing would have been right on both sides of that relationship.
It happens all the time in my business.
I get clients who sign up 2+ years after initial contact, others who sign up on initial contact and everything in between.
My initial contact starts with offering valuable information to my targeted audience in exchange for their email address.
The collection of the email address and/or phone number initiated a living connection allowing me to continue to follow up with more valuable information and occasional offers to sign up.
Sometimes when I get a sign up or sales, I trace their history on my customer relationship and management software (C.R.M).
It’s so much fun to watch the different variations.
Even better, I’m able to use this information to continue to make our email follow up sequence convert to sales better.
I am sure you have probably seen this in operation with your favorite gurus. How do you know when they have uploaded a new video?
You probably get a notification by email, text message or as a suggestion on your favorite social media feed.
Could you leverage this opportunity with direct mail, cold calling, knocking on doors, driving for dollars or bandit signs?
You can’t because those marketing strategies are old school and they create dead connections.
You create connections but you have to spend money again to connect again.
That gets very expensive because the average clients take an average of 7 exposures before deciding to buy from you or sign up with you no matter how good you are at selling.
The best part about this is that living connections can be automated 100% into your real estate wholesaling business in a few short steps.
You will learn more on how to set it up properly throughout the rest of this publication.
Too many people start a real estate wholesaling business with freedom as a goal in mind.
But then most of them end up with series of manual labor driven marketing ideas.
Many people will lose money and even worse, waste time in years testing out marketing strategies that only generate dead connections.
These are guaranteed ways to go broke and lose hope in believing in yourself and real estate wholesaling.
The guaranteed way to build a real estate wholesaling business is to setup marketing strategies that only generate living connections (i.e ability to continue to follow up with automated marketing without having to spend additional money.)
How much more money do you have to waste on dead connections marketing strategies?
Aren’t you tired feeling like you are throwing money and time down the drains?
At least, you can replenish money but you cannot replenish time. Either you realize it or not, time is of the essence.
Lack of respect of your personal time will let you waste time on deciding not to invest in bad strategies much further.
Commit right now to never investing another dime or another second of your time on marketing strategies that does not collect data as primary objective again.
Every dollar you spend on reaching prospects using a dead connection is another dollar that could have created 20 living connections.
It’s a bad habit that has everlasting effect on your potential.
Listen, I used to get tempted all the time to try out dead connections marketing strategies.
It’s usually due to a desperate urge to create fast results, signups and growth.
What I’ve learned over time is that it is a fast and guaranteed way to lose money especially in the modern age.
The only possible exception is to “may be” sending direct mailing with a letter that has a call to action that offers a free information at your website as opposed to the traditional “call me now” call to action.
With that being said, it’s worth noting that snail mailing is overpriced for the modern age.
There are more cost effective, efficient, specific, measurable, automated, result-focused, time-bound smarter, strategies to attract all the deals you need than snail mail.
CHAPTER 5 – The Follow Up Machine
How to Create a Deal Generating Machine by Automating List Building, Relationship Building and Non-Salesy Follow Up in your Real Estate Wholesaling Operation.
As you are realizing by now, it’s very easy for your real estate wholesaling business to run out of gas because marketing can be very expensive.
Let me share a best case scenario with you.
After Joe had spent $7,000 on a guru boot camp training, learning all there is to know about real estate wholesaling, he spent the next 3 months going to his local REIA meeting trying to figure out what the next step was. Finally, he had an epiphany.
He realized he is never going to attract any deals from wearing “I buy Houses” t-shirts and handing out business cards.
After thoroughly observing the top players every month at the meetings, he discovered there is only one thing they have in common.
They all actively market every month to distressed properties and property owners.
He decided it was time to buy another course focused on the direct mailing strategy. A discount code for list source which is a website that lists distressed properties also comes with the course; that’s even better or so he thought.
Direct mailing simply involves downloading a list of out of state owners from list source and sending a letter to each record expressing interest in purchasing the property.
That process seemed pretty easy for Joe.
He decided to setup a monthly budget of $500 per month which will allow him to send about 350 letters per month.
After about 3 months of consistently sending letters, he had received about 4 response calls that all resulted in no appointment.
He was devastated.
He was so disappointed to say the least.
Joe was so sure that he’s got the secret of the real estate wholesaling trade figured out.
In reality, he had figured something out but he was missing a very important attribute of long term successful business ventures; Sustainability.
Basically, he learnt how to build a bridge without proper sustainability studies for the bridge to last hundreds of years.
What use is it if you can build a bridge that will collapse only 12 years later?
Architects and civil engineers do all types of studies when planning to plant structures.
Part of such studies are sustainability, maintenance, cost vs effect on the economy and many other studies.
Joe, like many other newbie real estate wholesaling investors, get in the game with expectations that are either unrealistic or unprepared for.
The gurus have made it seem as if all you have to do is start marketing and the calls will start rushing in.
Joe like many others received the shocker of his life instead; ZERO RESULTS.
Of course, ideally every single letter you send out was supposed to trigger a call back to you from a motivated seller. In reality, it doesn’t work like that.
What happens in reality is that your letter shows up to prospects mail box with 10 – 25 other letters.
Once the prospect open their mail box and see all these letters in similar tone offering to buy their properties, it puts an average prospect into research mode.
“There must be something valuable about my property that these people want.” They think.
The idea of calling you back is devalued at least in that instant.
Based on what I shared with you in other chapters, you’ve created a dead connection by creating a marketing campaign with a call back as a call to action.
The best chances you have as always lies in how big your marketing budget is.
Are you positioned to send follow up letters in a cost effective way?
Essentially, the timing is not always right for your prospects on your initial contact; 99% of the time due to multiple reasons.
The first reason is that your letter showed up with tons of other letters.
There are tons of real estate wholesaling investors just like you trying to capture their next or even first deal ever.
So as I was saying, you need campaigns that allow you to follow up beyond initial contact without breaking the bank.
A campaign setup with the expectation of quick hits also limits you to one stream of income.
The reality is that the one type of offer you decide to focus on may not serve the desire of your prospect.
In fact, you should ask questions with your campaigns in order to identify the best way to serve the desire of your average prospect.
By doing that, you will allow your prospects to setup multiple streams of income for you:
- Educational Offers
- Take over with high equity
- Shortsale deals
- Subject to deals
- Foreclosure help
- Paid consulting
- Property management
- Brokerage services
- Fix and Flip
- Joint venture partnerships etc.
These are just 10 of the multiple different income streams attached to a smart real estate wholesaling empire.
Most real estate wholesaling investors are just looking to flip for quick $20,000 days.
Most of them wait for ever and never close a single deal.
With a follow up and living connection driven campaign, all you have to do is ask your prospects as many times as possible for as long as they are connected “how can yo best serve them?”, Then deliver.
After all, the continuous living connection is free.
Once you help them a few times, it’s okay to offer them opportunities that will in turn pay you lucratively.
You won’t have to sell them on buying rental income properties from your network.
They are educated and no selling is required.
Also, there are different types of horizontal and vertical client classes of people among your prospects.
Here is an example.
Some clients are quick decision makers while others are laid back.
They need to build emotions and trust for your brand over time in order to make a buying decision of any type.
Also, some of your clients already made up their mind that free or cheap is equals to low quality while others are always looking for bargains.
With a follow up driven campaign, you can capture your money from all types of clients and timing is always right when they do decide to buy because the follow up machine is always running for you even while you are sleeping.
Traditionally, when timing is wrong and your letter shows up, you lose money.
The timing is mostly wrong for your prospects.
That means, you are mostly losing money in a traditional real estate wholesaling marketing campaign.
Thanks to technology. Today, we are able to create follow up machines.
We are going full circle back to the secret being the type of connection being created with your initial contact with the prospects.
Customer relationship and management software (C.R.M) are a must follow up machine to implement in this time and age.
As the name implies, initiating and nurturing a relationship must be the primary objective of any campaign you run in the modern age.
Otherwise, you will be throwing your hard earned money down the drain.
The first step in that flow is offering valuable information in exchange for prospects contact information.
The information can be in a digital ebook, PDF, online video etc. Every time a prospect opts in for the information, you collect their name, email address and possibly phone number.
As your web form collect these information, you are building your list.
The list you are building is the next #1 asset right next to time in your career as an entrepreneur.
The real estate properties are not the asset in the modern age real estate wholesaling business.
Your personal time and data list are the top assets you must manage in order to give yourself the best chance of prosperity.
Part of most C.R.Ms is a tool called the autoresponder.
As new prospects information (records) are being added to the list, an automatic email campaign sequence is initiated that will send periodical email follow up to the prospect.
The frequency of the emails is your choice. It can be anywhere from every hour to daily to weekly the choice is yours.
I recommend setting up daily email autoresponder emails for at least the first 7 days of subscription.
That means when a new prospect subscribes by optin in for your free valuable, they will receive 7 emails (one per day) for the next 7 days automatically.
In addition to that, I also add new timeless emails to the autoresponder sequence as time goes by. By ‘timeless’, I mean it is not seasonal specific email such as email you would send on independence day, Thanksgiving or Christmas Day.
It is not time specific. Prospects can receive the email any time, day or season and it would be valuable and still make sense to them.
A C.R.M can also be used to send one time newsletter broadcast on demand.
The fundamental difference between a broadcast and an autoresponder is the fact that a broadcast is sent one time to your subscriber just like an email while autoresponder emails are automatically sent based on time of subscription to the list, events and/or actions taken by the subscriber.
The follow up machine also gives you the opportunity to serve both low ticket and high ticket types of prospects.
As I mentioned earlier, some prospects are more attracted to low ticket bargains and offers while others don’t believe there is quality in the product unless it’s costs high tickets prices.
That’s why some folks are more attracted to name brands at whatever they cost while others just want to satisfy an active utility need at a bargain.
When you market without consideration for proper follow up, you will miss out on one of these classes of people.
But when you understand and lead all marketing with value in exchange for collecting data, you can use the follow up automation to test, track and measure different types of offers and then simply focus on the offer that converts to revenue the most over time.
Our follow up email copies follow one of 3 simple structures.
If you are subscribed to my newsletter, you can start observing after reading this as I share it with you.
- Common question, story(optional), answer, and call to action.
- Common problem, story(optional), solution and call to action.
- Common pain, story(optional), meaning a related story, pleasure and call to action.
As you can see, no emails are sent without a call to action. However, each email is designed to lead with value and act as our agents in real and right timing.
A call to action is the part of the email that tells them what to do next; buy, click, subscribe, watch video etc.
Back in 2012, I decided to test out a $5,000 offer of a coaching product.
Within a 2 weeks period, that process extracted some higher ticket buyers from my database that never bought my $47 product.
After interviewing one of them, I found out that he thought nothing good could come from a cheap $47 product.
He was wrong but more importantly, I was losing money until I made a high ticket priced program available.
After a few months of selling the $5,000 program, I decided it wasn’t worth the 8 hours of my personal time in coaching that I was offering.
I increased the price to $15,000 and reduce the coaching time to 3 hours.
I sold more and obviously increased the average value per client.
In addition to being able to test and perform all types of experiments with response and conversion rate, a follow up machine or C.R.M positions your real estate wholesaling business empire for consistency and perpetuity.
These 2 things are my personal secrets of success in all my endeavors.
That’s why this is a smart real estate wholesaling strategy.
It does not assume you are a super human who is consistent by default.
The machine and automation positions you and your business for consistency.
For that very reason, I’ve consistently created hundreds of thousands of valuable content that continues to serve me, create revenue and build my empire since 2005.
Immersing yourself in all the chapters of this publication at least 10 – 15 times will help you make complete sense out of these whole concept.
We are done with the aspect of setting your real estate wholesaling empire up to receive from using automation to lead your promotions and marketing with value.
But who are we giving these value to?
The more important question is how do we position the empire to scale at will and on demand?
Over the next few chapters, you will learn how to drive quality traffic of highly targeted people cheaply using scalable automation.
You can setup the best looking websites and webpages on the internet and oncarrot all you want.
But without people visiting the website, you run a dead business.
Leading with value and automation will guarantee that you are positioned to dominate the real estate wholesaling profession across the nation.
However, you have to learn the last piece of that puzzle and that’s what the next section of this publication is all about.
An average real estate wholesaling investor is basically stuck in a dangerous zone.
Anyone can drive for dollars, send direct mailings, knock on doors and hang bandit signs.
I agree that confidence for cold calling can be hard but the fact remains that it is simple enough to do.
All these traditional strategies will expire completely soon because they are already saturated with newbies that the gurus are pumping into the market daily.
Eventually, wholesalers will start looking for greener pastures on modern media as covered in this publication but you will be way ahead of them.
Your money is already in the hands of people.
You need people.
So let’s go learn how to attract all the quality buyers, sellers and partnership prospects that we want.
SECTION 3 – TRAFFIC A.K.A PEOPLE
The 3rd Pillar of a Real Estate Wholesaling Empire.
How to attract motivated sellers, Qualified Buyers and business partners that will do 100% of the work of building your real estate wholesaling empire while you chill.
Previously in this publication, you have been prepped and you learned exactly what to do to extract maximum revenue from your marketing activities by leading with value using automation.
But we have not spent time on the most important part of the big picture.
What is the big picture of a real estate wholesaling empire?
I used to watch a show called the profit on CNBC hosted by Marcus Lemonis.
His purpose on the show was to troubleshoot businesses that were facing trouble.
He used a concept called the 3 P’s; Product People and Process.
The 3 P’s is applicable in all businesses including real estate wholesaling.
If you are struggling in getting your business off the ground or to the next level, the problem can always be traced down to one of the P’s.
- Product – Real estate properties.
- People – Buyers.
- Process – How to get the product to the buyers.
In a well oiled and leverage systemized business, all the P’s can also be traced back to just one of them and I want to prove that to you in this chapter.
One of the main concepts you should have picked up from learning smart real estate wholesaling is leverage.
If you want to build your business sustainably, you cannot just depend on a linear growth as that leaves no room for errors.
You need to have other entities and systems outside of yourself and personal time building for you as well.
Exponential growth needs to be the goal.
We are going to take the time to troubleshoot your real estate wholesaling business from that standpoint using the 3 P’s.
2 of the P’s will be sourced from one of them; People.
- PRODUCT – Even though, the product are real estate properties, we get this from “people” in the wholesaling business. In order to have it, we need to attract abundance in traffic of people; motivated sellers.
- PEOPLE – I think we are clear that we need to attract qualified buyers. It is important to note that the money (revenue) in any transaction comes from and by way of the qualified buyers.
- PROCESS – This is how to get the product from the sellers to the buyers. If you want to build a scalable business, joint venture and partnerships are a big part of the process. Team building and partnerships in particular will create a system that runs with or without you. Remember that Warren Buffet advices you to find ways to make money in your sleep as the only way to financial freedom. So “process” traces back to “PEOPLE”.
In essence, you need to attract lots of people in the form of motivated sellers, qualified buyers and serious partners in order to build your real estate wholesaling business.
As you can see, these people have to be qualified one way or the other.
No matter how good you are with your promotional and marketing copies, most people you attract will not be qualified.
This is what I mean.
- From every 10 sellers you attract, only 1 or 2 would be motivated.
- From every 10 buyers you attract, only 1 or 2 will be qualified, willing and able to buy.
- From every potential partner you attract, only 1 will be serious and hungry enough to take action.
These are no issues as long as you understand that it’s truly a numbers game.
I don’t try to control the uncontrollable.
I simply focus on making the numbers work for me and I don’t take anything outside of that personally.
People are not perfect but yet you and I need them to be a part of the process.
You need them but you don’t need particular persons.
It can be anyone who is ready to fill the gap.
Therefore for every time you need 1 or 2 motivated sellers, you need to market enough to attract at least 10 potential sellers.
The same truth applies to attracting buyers and sellers.
There is a quote by Norman Vincent Peale…
“Shoot for the moon. Even if you miss, you’ll land among the stars.”
When you operate with zero expectation of any particular one human being, you can’t miss.
Zero expectation of any particular one human is always the right expectation because it prepares you to build independent systems with humans and modern age machines.
That’s the irony of needing people to build a leveraged and smart real estate wholesaling business empire.
I have put together challenges over the years to help my partners and protégés get their business off the ground or to the next level.
It works for the few that takes action.
Most recently, I created a challenge called the 17 days challenge which was designed to help smart real estate wholesalers build their personal brand.
It is called a challenge because that’s exactly what it does.
When I launched online in 2009, that’s what helped create the much needed momentum.
It separates the timid from the serious ones.
It’s an athletic thing that’s designed to extract greatness.
As expected, only 1 person out of 25 I showed it to as an experiment participated within the first 10 days of launching it.
Of course, they all had legitimate excuses.
I always tell people.
If it was easy, every one would be winning.
If everyone was winning, we’d all be losers.
In order for a few to win, majority have to be losers.
It is always a simple game.
It may sound horrible to expect most people to be losers but believe me, enough people are winning.
They just happen to be the minority.
It’s a matter of choice.
It is important that you know this because you will be learning how to attract people over the next few chapters.
Your expectation on statistics needs to be in the right place.
Expect that only 10% of the people you attract even with well written and designed copies and creative will take action and do.
The good news is that you don’t need more than that 10% to run a profitable and sustainable smart real estate wholesaling empire.
The losers of the game are ultimately those who don’t take action.
Mastering the art and science of modern age people attraction gives you options.
In business and life, you need options in order to operate from a place of abundance.
When you operate from a place of abundance, more qualified and quality people will want to be a part of that.
The alternative to that is to not have abundance in options of people.
This will put you in a position to come off as needy to the few people around you.
In essence, you will end up pushing them away.
No matter what direction you face with this time-proven concept, it will create a vicious cycle in that same direction.
Abundance, choices and options are always better but even more in the modern age.
People have choices; thanks to the internet.
You need to position yourself to have choices in people as well.
You need to position your personal brand as the prize.
As far back as 2010, I had mastered the skills and attracted up to 50,000 unique visitors per month to one of my websites organically.
There is an art and science to it but it’s simple.
Over the next few chapters, I will reveal all the secrets in an oversimplified way.
You will learn the organic as well as the scalable way to attract all the motivated sellers, qualified buyers and seriously motivated business partners to help take your real estate wholesaling business to a million dollars empire.
As usual, nothing is guaranteed without consistency.
Clearly consistency is one of the hardest things for humans to do.
With these methods, you will be positioned in a way that consistency is inevitable.
You are ahead of the curve. It’s the right time more than ever before to master this skill.
Once upon a time, smart phones were a stretch for an average person to use. Today, it’s a necessity of life.
Don’t wait till it’s a necessity for every real estate wholesaler to become an online traffic generation master.
It’s the last piece of the puzzle and it’s a skill that will be applicable for the rest of your business life in any type of business.
All the motivated sellers, qualified buyers and business partners that you need are hanging out online.
It’s left for you to master how to attract them in abundance.
CHAPTER 6 – ORGANIC DEALS ATTRACTION
Being raised a Nigerian kid, I gave up a long time ago on the notion that Nigerians would want to be my client.
I always believed that a prophet has no value in his own town until I stumbled into this secret I am about to share with you.
So Back in 2007, things were going so well that I started to receive calls from prospects that I never marketed to; including Nigerians.
Apparently, I had helped a lady avoid foreclosure, flipped her house while she walked away and never had to have sleepless nights ever again.
She knew someone who knew someone who knew someone who was a Nigerian going through a similar situation.
This someone was a friend of mine for years and never knew that I was into real estate much less helping her avoid foreclosure.
She had graduated just like me back at around 2004 and her father had somehow convinced her to purchase a 2 family new construction in Newark New Jersey as a wealth building strategy.
Units in the house would sit there for long periods of time and not getting rented out.
Meanwhile she had a nice entry level job at Pricewater Corporation where she was earning a decent salary.
She had about $20,000 in savings already which she ended up spending on paying mortgages and other expenses on this non-performing asset.
By that time she learned about my services, she had exhausted her savings account and was quite frustrated about the idea of owning real estate ever again.
I helped her and I made about $30,000 in that process from spending zero dollars on marketing.
So let’s trace our steps backwards again. I helped someone and they referred people in my own circle back to me.
Referrals are traditionally a respected source of traffic, leads and deals for real estate wholesaling businesses and other businesses.
When you think of technology, it’s pretty easy to think referrals are obsolete.
That couldn’t be further from the truth.
Traditional referrals on steroid are what you would refer today to as Organic Deals Attraction.
It’s part of the natural ways of having nature and the ecosystem sending you deals.
It’s still a real thing and I want to share it with you.
It goes back to the concept of adding value. When you add value to a market place, it will reward you.
It wouldn’t matter if you are a prophet in that neighborhood or not.
It’s the way that the universe keeps itself fresh.
As I’ve said previously, marketing is expensive for obvious reasons.
Your competitors are all trying to market to the same audience and bidding for the same attention.
Any form of free deal attraction strategy will help you offset massively in marketing cost.
It will have direct effect on your bottom line profits over time.
With the 5 traditional methods of real estate wholesaling marketing, direct mailing, driving for dollars, knocking on doors, cold calling and bandit signs; sure you can get referrals.
But referrals on steroids using machines, social media algorithms and artificial intelligence is a different animal entirely and I want to share that with you in this chapter.
With traditional referrals, people have to explicitly refer my services to their circle of influence.
However in this modern age, their behavior is all I need to track, leverage and create the referrals by myself; even without their permission.
Actually, by using the available technology today to receive value from me as a market leader, they are automatically permitting me to use the data from their activities to perpetuate more business for myself.
How sweet would that be to apply that to your real estate wholesaling business?
It’s not about violating their privacy.
It’s about the fact that you and I as producers have been granted the permission by the very act of using social media for their own enlightenment and education.
So imagine an individual who is a tired out-of-state rental income property owner or landlord.
His name is Brian.
Brian is exhausted with the ownership of his property in Garwood NJ.
He has now concluded that he needs to get rid of the property.
He doesn’t want to sell the property.
He needs to get rid of the property.
There is a 2nd distinctive difference in that equation.
The latter “wants” while the former desperately “needs”.
As a real estate wholesaling investor, your business lives and dies by motivated sellers.
The first resource that Brian decided to use to execute getting rid of the property is Google.
He went online and searched the term phrase “sell my house fast in Garwood NJ.”
As soon as he searched, he stumbled into one of my YouTube videos where I was offering a fair offer within 24 hours for Garwood homes in any condition.
It was a match made in heaven.
He submitted a request and detail form.
I had deliberately positioned this short 1 minute video on YouTube and optimized it for the search engines targeting the search keyword term phrase that Brian typed in.
To say the least, it’s a skill and it’s called the Search Engine Optimization.
After a little research and finding out that Brian’s property was worth $200,000 in after repair value, I decided to call him and tendered an offer of $125,000 subject to repair estimate not exceeding $5,000.
I calculated my offer with 65% multiplied by $200,000 minus repair cost estimate of $5,000.
Offer = (65% x A.R.V) – Repair
Brian happened to be one out of every 5 leads that submits to this form.
I wasn’t just lucky.
I knew the statistics from experience and I find the results pretty predictable over time.
Wouldn’t you want such predictability in your real estate wholesaling business?
The best part about the search engine optimization strategy is that it cost nothing more than time to record these videos and upload them to YouTube for every cities I want to target.
While I don’t depend on free marketing strategies 100% of the time, I recommend taking advantage of it to offset your marketing cost.
Remember the concept is to leverage all these social media activities to generate more leads, deals and businesses by way of referral.
As soon as Brian landed on my video and he noticed that it’s offering exactly what he was looking for, he watched 100% of the video 6-7 times.
While he did that, the YouTube algorithm recorded his activities including the likes, shares and his clicks around the video as engagement.
Because of this data being collected, YouTube algorithm decided it’s good enough reason to suggest the video to more YouTube visitors located in Garwood.
Less than 2 weeks later, Damien who lives in Garwood as well saw the same video as a suggested video.
Damien has no relationship with Brian but Youtube have their collected data and location in common.
They both logged in to YouTube with IP addresses associated with Garwood New Jersey.
In essence, Damien was referred by Brian and they had never even met before.
In addition to that, these types of referrals can be happening simultaneously in multiple locations as long as the criteria for targeting fits.
Scalability is much more predictable.
As a proof, there is a very high chance that you found this publication through a search activity on the internet; YouTube, Amazon etc.
Also, have you noticed that YouTube tend to suggest more of my videos to you the more you watch?
That’s the algorithm codes at work.
YouTube and Google measure how long prospects spends on our created content as engagement.
They use that data to determine how much more of our content will be suggested to existing and similar profiled prospects.
It’s a really neat process.
I want to share the steps you need to take to tap into generating prospects endlessly from this territory.
Again, it’s called Search Engine Optimization.
We refer to it as organic because this prospects stumbled into your services because they are actively in the market searching for your solution, something related or similar by way of Google.
YouTube, Google, Amazon and other similar platforms give you and I this opportunity because we help them by producing useful content for their users.
They reward us by putting our branded content in front of even more prospects.
Our content are used to attract other brands who have chosen to pay these platforms for advertising and exposure as opposed to creating organic content.
As always, the market is true to its game.
It will reward you based on the value that you add to it.
If you have time to create organic articles and/or video content consistently, it’s a highly rewarding marketing activity.
Just like Brian and Damien, the first place every one go to do research on desires, needs and services is Google; not their mail box or doorstep which the old school real estate wholesaling investors are still stuck on.
When you master search engine optimization as a lead generation skill with consistency, success and endless flow of highly qualified leads are guaranteed.
It’s the fundamental difference between search and interrupt marketing.
They both have their place but free and organic leads (people actively searching) are much more powerful.
The only downside is that is can take time to start rewarding you.
But it’s well worth the wait and the fact that it helps maintain sustainable profitability is a real icing on that cake.
Creating organic content is a must anyway if you are a serious professional marketer.
You might as well learn how to optimize your content for the search engines and get them working for you for free.
It’s a timeless concept.
It’s just easier now than ever before. The smartest business people in ages past wrote articles and books for what we referred to as libraries.
It’s the most trusted way for you to expose your brand to the market place because you are giving first before asking.
Back then, there were limited space on the library shelves.
In this time and age, anyone can learn this skill. The good news is that there are unlimited space for your content in the digital space and clouds.
Your prospects can access them from their fingertips anywhere with internet access.
However that’s not an excuse to not get started now.
The easy access is the very reason you need to go out of your way to start publishing organic content to attract prospects to you.
The only barrier you have is a strong enough desire to get ahead of the curve.
Here are the 5 STEPS to successful search engine optimization marketing strategy:
STEP 1 – RESEARCH
This step involves doing market and keyword research. You will come up with as many frequently asked questions (FAQ) as possible as related to your ideal prospects’ needs.
Example for attracting a seller – “sell my house fast Garwood New Jersey” or “how to sell my house fast without an agent”.
These are phrases that motivated sellers would type and search on Google, YouTube and other search engines.
STEP 2 – PRODUCE
In this step, you will create content that answer each one of the FAQs you’ve come up with.
Answering this questions is what increases your K.L.T (know, like and trust) factor in the market place and in the eyes of your ideal prospects.
STEP 3 – PUBLISH
It is then time to post your content to the internet for the public to see.
My favorite place to post my content is to my blog and YouTube.
Google shows this content to relevant searchers on the internet.
STEP 4 – OPTIMIZE
In this step, you will optimize your posted content so that it has maximum visibility to your ideal prospects via the search engines.
This is how the search engine will know what search phrases and terms to make your content visible for.
You simply want to make sure that your targeted search term (FAQ) is in the title, description and keyword tags of your published content.
STEP 5 – PROMOTE
In this last but not the least step, you need to promote each new piece of content to your list and network subscribers, with a newsletter broadcast as I explained in the automation section of the publication.
By doing this consistently, they will trust you more and send more referrals your way intentionally and non-intentionally if you will.
Of course, they will also be more inclined to want to do more business with you.
Do note that content can come in the form of an article, a video, an audio, an ebook and basically any form of medium that’s easy for your prospects to consume information on.
The idea in this chapter is to push so much consistent content into the marketplace with a call to action to contact you for additional help to an extent that your brand become irresistible to not want to do business with.
That’s organic because you are truly helping people make their lives easier and getting rewarded for it.