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The Flip Talk Podcast | Chris Logan | Real Estate Wholesaling

 

One of the best ways to get into real estate is wholesaling, but it’s not a get-rich-quick game. You certainly have to put in the work, and that sweat equity is what’s ultimately going to let you reap incredible returns. In this episode, Chris Logan, a wholesaler for 10 years, shares some of the secrets of the trade that have helped him succeed in this lucrative niche. Chris highlights several key strategies and insights that have contributed to his success in the industry, including the marketing channel that worked the best for him, the secrets to getting the best deals and returns, and the importance of consistency in this business. Tune in for more!

 

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Finding Success In Real Estate Wholesaling With Chris Logan

 

We’ve got Chris Logan. Chris is a Florida investor, wholesaler and has been in the game for a minute. Been there and done that. He covered a lot of bases and, honestly, has a lot of value and wisdom to drop. We’re excited to talk about that and catch up. Chris, thanks for joining us. First of all, for those who don’t know you or know much about you or your business, tell us a little bit about yourself. The question always is how did you get into real estate? What were you doing before you got into real estate?

The Flip Talk Podcast | Chris Logan | Real Estate Wholesaling

 

Thanks for that intro. I appreciate it. I’m excited to be sharing with your audience and providing value. I’ve known Don for a long time. A great guy. I know he wants to always bring the heat when it comes to value. I’ll do my best to keep up with that. I got into real estate a decade ago. I got started like most people did. I read the book Rich Dad Poor Dad. That lit a fire under me. From there, I noticed that Robert Kiyosaki was coming to Tampa.

My wife and I went to this three-day real estate event. She was my girlfriend at the time. They taught a lot about different real estate strategies. They threw a lot of different strategies up on the board. But the one that resonated was wholesaling. When they said that you could basically take a piece of paper, flip it, and make tens of thousands of dollars. I was like, “I’m sold. That’s it.” I took a class, then got a mentor. From there, I hit the ground running.

I love to say that things are super easy after that. We got our first deal within the first week, but it didn’t happen that way. It took us six months to do our first deal. On that deal, we made $4,000, and that was pretty much the only thing that we needed to see that “This works.” It’s amazing. We went out there and kept focusing and going out there and doing it again.

That’s amazing. Wholesaling is a great way to start in real estate. Sometimes it does promise quick money and huge checks. That’s usually not always the case, and it does involve work. Everybody tells you it’s easy and you’re going to cash tens of thousands or $100,000 worth of checks. It can be done and there are ways to do it, but prepare yourself for the reality that anything worthwhile is going to take time, discipline, and hard work. Wholesaling is no different.

I know you’ve experienced that over the years as you built your company and built out multiple markets. For somebody that’s getting started in real estate, I know you work with a lot of people, getting started in wholesaling specifically. What are some of the key things that you need to know? What are people not teaching you that they should know about jumping into wholesaling?

 

No Substitute For Consistency

I can tell you, after doing a little over 600 deals and having been in this for many years, there’s a lot of stuff that I know now that I wish that I could have shared with me in the beginning. Starting out, it could have given me a much faster of a ramp-up time and could have cut the learning curve. That’s what I looked to do. I’m passionate about sharing that with others.

One of the things that I would have done in the very beginning is I would have focused more on being more consistent. Consistent activity every single day. There’s a book that’s amazing. Two things being more focused and more consistent. There’s two books that I highly recommend. The first one is the ONE Thing, and that’s by Gary Keller. He’s the founder of Keller Williams, one of the largest brokerages in the country.

Basically, with that book hammers down is focusing on one thing. Slimming your focus on the one thing. Every single day, you’re asking yourself, what’s the most important thing that I can do today to make everything else unnecessary? Most wholesalers, from what I find, are very unfocused. They’re spinning their wheels all the time not doing any deals because they’re focusing on learning four different strategies right when they start off.

 

Every single day, ask yourself, “What's the most important thing that I can do today to make everything else unnecessary?” Click To Tweet

 

They want to do wholesaling, flipping, and creative finance. They want to buy and hold. They’re running in all these different directions, but here’s the thing. You only have 100% of energy. If you split that over four different strategies, you’re only given each one 25%. You’re not going to get anywhere. In my business, we didn’t start taking off and scale our business to over seven figures until we started to focus on one thing, do that one thing well, then take off from there.

The second piece to that is the consistency. Most people who start out, wholesalers, they are not consistent at all. Maybe they will make calls to sellers for an hour one day, then two hours the next day, three hours, then none the next two days because they feel like they put it all the time. The reality is, you need to be consistent every single day. I’d rather see someone put in an hour to two hours a day every single day than to do an hour, one day, or two hours the next day, or six hours the next day.

You need enough consistency to build momentum. This brings the second book I’d recommend, which is The Compound Effect by Darren Hardy. That book talks about committing to small activities every single day and gradually building those up to be more. At the end of 30 days, from taking massive consistent action every single day, you’re going to be very happy with that end result. Whereas most wholesalers, they let a month go by and they’re like, “Why didn’t I do any deals?” You weren’t consistent.

Those are the two biggest things that I would share with people, focus on one thing and be consistent. The best way to get into real estate, in my personal opinion, is wholesaling. For most people, when they first get started, they don’t know what a good deal looks like. It’s easy to make mistakes. If you buy a deal and you put money into fixing it up, you’re like, “Shoot.” You could lose money. The same thing for buying rentals.

The Flip Talk Podcast | Chris Logan | Real Estate Wholesaling

Real Estate Wholesaling: The best way to get into real estate is wholesaling.

 

You buy a rental property. You think it’s going to be rented out right away. It may take a little bit of time to rent that property out. It’s more stressful on the finances than wholesaling. It’s very low overhead starting. At the end of the day, you’re ever buying the property. In my opinion, it’s the best way for people to get started in real estate.

I love that. Those are two great resources to latch on to. Anybody that’s not read those books, read those. Those are a must. You talk about consistency. There’s no earth-shattering thing about consistency. It doesn’t sound sexy. We’re like attuned and conditioned. We’ve got to uncover the most awesome nugget or the ninja trick or tactic, but consistency is like, “That sounds super boring.”

I will tell you this, from my business, people I know that succeed through the roof time and time again, small consistent action wins the everyday. There’s no substitute for it. If there’s no takeaway from this conversation other than that, you’re going to come away richer. Be very consistent. That The Compound Effect by Darren Hardy, everything he puts out is amazing.

The other thing too, when people get started, they’re looking for that silver bullet. They’re looking for that red push-button thing where money can fall from the sky. All of a sudden, life gets easier but as you said, it comes down to consistency and focus. Those types of things aren’t sexy for people. It doesn’t sell, but it’s the stuff that works. If you sit there and you’re focused on one thing, you’re being consistent with your activity every single day, and you’re always putting money-making activities at the front. Before you do anything else, you can have wild success in it.

 

Learning From Disappointments

I appreciate that. I’m going to pivot just a little bit. For those reading and me, sometimes the hardest lessons that we learn, we get kicked in the teeth. Those moments in our life teach us a lot. The mountaintop experiences are great and we all love those. I don’t feel like we learn as much from those. From your many years of experience, what would you say is a biggest loss or a disappointment in your life, whether business, personal, or otherwise. What’s one loss or disappointment that you can point to that you feel like you’ve learned the most from? What did you learn?

I’d like to share two if that’s okay. The first one was sticking to your box. As a wholesaler, having done this and having done it for a long time. That’s our jam. We love sales and marketing. That’s what wholesaling is good for. One of the things that we did is we stepped outside of our box. We started renovating properties. Instead of renovating the cookie cutter thing, that’s simple, the three bedroom, two bath, 1,500 square foot, and block house. That’s easy. We chose to take on something that’s way outside of our box. It was a luxury flip.

It was valued at over $607,000. It was wood frame. There were a lot of issues. We had to level floors. We had to relocate kitchens. It was insane. It was the worst project we’ve ever done. We lost a ton of money on it. That’s when we said, “We got to stick with our box and what we’re great at.” What we’re great at is sales and marketing, which again is wholesaling. That’s one of the big lessons that I learned. Coming back to focus, focusing on one thing.

The second thing that I’ll tell you is something that people talk about all the time online. They talk about it like it’s super sexy, which is scaling a wholesaling business to millions of dollars a year. I can tell you I’ve had a team of over 35 people and we have scaled that back significantly. What we’ve found is more income or more deals does not necessarily mean more money for you to take home.

We now have a mentality of “keep it small, keep at all.” Now, rather than scaling a wholesaling business to millions of dollars, multi-millions of dollars. My mentality, and you can ask any big wholesaler who is doing multi-million dollars and had big offices and all that stuff. They were bragging about that for the last several years. They will agree now after some market shifts have taken place. That bigger is not always better.

 

Keep it small, keep it all. Bigger is not always better. Click To Tweet

 

The smarter thing to do in wholesaling is to focus on wholesaling for 12 to 18 months. Only focus on wholesaling, understand what a good deal looks like, and what a bad deal looks like. Stockpile some cash. Keep your expenses low. In 12 to 18 months, start taking down some properties of your own and buying properties sooner. That’s one of the biggest mistakes that I would say that I did not do in the very beginning part of my wholesale journey. I was always chasing the next deal and I never bought anything for myself until much later on.

I go back and I look at what we got those properties under contract for. I’m like, “That property’s worth like 2 or 3 times what we got under contract for.” I would say, folks to wholesaling 12 to 18 months and finally buy stuff when you can make confident buying decision so you know what a good deal looks like. If I could have bought more property sooner, I would have done that.

That’s good. Something you said as you were as you were talking there, a lot of wholesalers get in this mentality of being a deal hustler. You’re chasing the next deal. It’s maybe like a dopamine addiction. I wrote down actionable game plan. You’re advising and playing this out like wholesaling with a game plan in mind, 12 to 18 months, scale responsibly, don’t try to live somebody else’s dream and drink the Kool-Aid that says you need to have a big business and a ginormous team and an office. Believe me, I’ve done that, too. Scale responsibly and have an actionable game plan with an end goal in mind. That end goal being stack your cash, then begin acquiring properties and birth things out and put another piece of the puzzle into the game plan. Is that right?

They’ll play the long game because wholesaling is fantastic in the beginning. It’s something I still do to this day, so I love it. We’ve had wholesale fees of $75,000, $25,000, or $35,000. We have some small ones of like $2,000 to $5,000, too. Again, it ups and downs as far as how much you make on each deal. The thing is, most wholesalers start out. They take that money. They do a big deal and go on vacation.

They don’t want to do that. What they want to do is stack that money. They want to start reinvesting back in the business to get the next deal much easier. They want to focus in the long term learning the business 12 to 18 months, then start buying for the future. What you don’t want is you don’t want to be just wholesaling when you’re like 70 years old and you’ve never bought any properties.

You’ve negotiated these fantastic deals in the past and kicking yourself that you never bought any of that stuff. Focusing on wholesaling and understanding the lessons that it can provide to you is invaluable. It’ll teach you how to market yourself and market properties. It’ll also teach you sales, which is critical for success in all aspects of your life. That’s why I love that.

 

How To Get The Best Returns

Wholesaling can teach you a lot. The skill set needed for wholesaling, you can take and parlay that into different areas as you as an investor and an entrepreneur. That’s fantastic. Chris, tell me what marketing strategies are you seeing with the best returns now? We’ll do a slight pivot here. Direct-to-seller marketing is the bread and butter. Wholesaling is a sales and marketing business. What are you seeing as good marketing strategies with the best returns?

I got to tell you, the marketing strategy that has been working for me over the past years, and we have stuck to this. I’ve tried every single marketing channel. I could give you the details on each one of those like what it takes to get a deal and all that stuff. The one that’s been the most consistent and allowed us to grow the fastest has been cold calling. A lot of people start with cold calling. They’ll get some deals then they’ll go off to like PPC or to something like that.

The Flip Talk Podcast | Chris Logan | Real Estate Wholesaling

Real Estate Wholesaling: The marketing channel that’s the most consistent and allows you to grow the fastest is cold calling.

 

In one of the most competitive real estate markets in 2021 and 2022, we averaged $67 costs per lead. Our average spread was right around like $24,000. The cold calling, I will tell you, it’s important for you to start with because it keeps your overhead low. What’s great about it is once you do it and you get a deal yourself. You can then hand it off to somebody else to have them make the calls for you. You work the leads and that’s how you can grow it and that’s what we did. We grew to a team of like ten people, making calls for us.

We have a call center over in Bangladesh. We even place cold callers for our coaching clients. Cold calling has been my favorite, too. Here’s the other thing, a lot of people try to start out with direct mail and with PPC. The problem is, they’re not good at sales and over the phone and because of that, they end up losing the money that they spend in marketing because they can’t convert the leads. If you can start out with cold calling, get that down, and understand how to talk to sellers over the phone.

If you can get good at that, you can be lethal at all of the marketing channels. When you do decide to invest bigger dollars and do those other channels, the return on the money that you invest is going to be so much greater because you’re going to be good on the phone. Being good on the phone is critical for having success in marketing. Cold calling has been the best for us.

Go figure. Talking to people, working a sales script, understanding, and building rapport. I agree. Having a good knowledgeable approach in cold calling allows you to do that. I am a fan of a lot of marketing channels and that is one of the ones that we use the heaviest. I love that.

It’s the fastest marketing channel that puts you in contact with sellers. A lot of people spend money in direct mail. They’ll sit there twiddling their phones by the phone waiting for the phone to ring but I love cold calling. Again, it puts you on the front lines and direct contact with sellers.

Another thing that I know you’re an expert at and I want to talk about is operating in multiple markets. For those that don’t know, you can do real estate anywhere in the world and not have to per se do real estate in your backyard. Wholesaling virtually and wholesaling around in different markets, presents a lot of opportunity and can present a lot of challenges. You can waste a lot of time and a lot of money if you’re not going about it right.

For somebody that’s considering, maybe the backyard that they’re in is just maybe too expensive to invest in and they’re looking for another market or they’re looking to get outside their market. Maybe they’ve saturated or they’re in a very small rural market. What are some of the things that you suggest people look into if they’re looking at another market expanding? Is it population? Is it growth? Is it unemployment? Is it housing prices? What are some of the key indicators that says, “That might be a good market?”

We were blessed to be able to switch virtual a few years before COVID. When COVID hit, a lot of people were scrambling and wondering what they’re going to do. They’re locked inside but we were thriving. That was one of our best years. What we’ve done over the years is we’ve dialed in how to select the market because we looked at a pattern as far as the areas that we were targeting, the territories we were targeting. What was the common theme between all the territories where we were having large assignment fees, an average of around $20,000 a deal?

What we did is we noticed that there was a common thread between two things, the population of an area and the median home price. What I’m about to share with you real quick is how you can select the best territory, the best territories across the country using a free tool and not spending any money. Anybody can do this. The first thing you want to do is you want to pull up Google. You want to do a search for the population and the area that you’re looking to target.

Let’s give an example. Let’s say, you’re like, “I want to target Harris County, Texas, because I’ve heard real estate market is a great market in Houston.” What you would do is you go to Google and you type in Harris County population. What you’re looking for is you’re looking for a population to be a minimum of 250,000 people.

What I find is if a population is less than 250,000 people. You’re not going to see as much demand there. You’re going to see more rural type areas and it’s going to be harder to make larger assignment fees. Why does that matter? Some people might say, “If I can make $5,000 on my first deal or $4,000 like you did on your first deal. That’s a huge win.” If you can put in the same amount of effort that you put in to make 4,000 to make 20,000 or 15,000, wouldn’t it make sense to focus on the area you could do that?

The first check mark is 250,000 people. That’s what we look for. We want areas that have high growth, lots of people are moving to, and lots of demand. It’s going to be easy to sell our deals and lots of buyers. 250,000 people, that’s the first thing. The second thing we look at is we look at the median home price in the area. Now, what we found is if the median home price is a minimum of $200,000, then that combination right there, the population of 250,000, median home price of 200,000. That is a fantastic combination or telling you what a great real estate market is.

Now, one of the other things we like to do is we like to avoid higher price markets like California and New York. Some people call those primary markets. We like to keep our median home price a maximum of like 400,000 or 450,000. Maybe maximum then under, but ideally under 400,000. If we have those two combinations right there, that is the start of a fantastic market. What we’ll do is we test our theory. We’ll go into that market, we’ll pull the top four to six zip codes, then we’ll do some marketing there. See if we get like the leads we get and we get deals. If we do, then we go all out and we purchase the rest of the zip codes. If that’s all you knew, right there, those two steps, 250,000 population and $200,000 median home price, then you’re good.

Some people might ask, what’s the median home price? If you look at houses on a timeline and you have the cheap ones on the left, $50,000 houses and the multimillion-dollar house on the right. If you picture right in the middle, the median and the middle. That’s the middle home price of the most common type of home that’s being sold in the area. That’s what we want. We want the house that everybody wants and can afford.

 

Getting The Best Margins

In your opinion, is there any exceptions to that rule as far as picking a market? You’re talking about metros, by the way. Is there any exception to that like ancillary markets or pockets where you can bend those rules at all or is that your best hard and fast stick to the guns on that one?

We stick to that. There are certain territories that you could test but we’ve had so much success in those types of markets. I take that back. There was a market that we went into that’s not far from one of our major markets here in Tampa Bay. It’s a little bit more of a rural area. At the time we went into it had a had a median home price of around $150,000. I will tell you, like clockwork. Every single deal we locked up, barely had a $5,000 assignment fee.

The thing is, we were able to do volume out of there. Here’s the thing, in the more rural markets, you’re not going to have any problem with sellers saying yes. You’re going to have a problem finding buyers to buy those deals. In cheaper markets, it’s easier to find sellers and harder to find buyers. I like the major metros because it’s easy to find sellers and find buyers and you’re not going to have problems selling your deals.

You bring up a great point, acquisition and disposition. As a wholesaler, those are the cogs to the contract and getting collected on payday at the title company. Is one more important than the other, or you’re treating them both equally? They’re a little bit different beast. Talk through like the acquisition and disposition strategies as you see it. Like you talked about, lower margins, maybe higher volume. How do you analyze the acquisition and disposition strategies? Are you placing more importance on one or the other? How do you play it out that investing is real?

A lot of people say, “You make the money when you buy and not when you sell.” In wholesaling, you can make money on both sides. The better deal that you negotiate with the seller, the easier it’s going to be to sell on the dispo side. The higher the price you pick it up with the seller, the higher price and the harder it’s going to be on the sale side. One of the things that I tell people that are getting started and even people that are trying to grow, people that are stuck at like $300,000 and they can’t move beyond that.

This is a huge tip. In the beginning, when I first started, we were trying to break past $300,000. I thought that if a seller wasn’t willing to accept my offer at like 50% of market value or 55%, then it wasn’t a good deal and I should move on from that deal. I’ve got to tell you, I left so much money on the table being so tight like that and not being flexible on my numbers. Now, how we do it is we’ll make an offer to a seller.

Ideally, in our markets, we like to be anywhere between 50% to 60% of the repaired value of the property. If we can get it 50% to 60%, fantastic. If we can’t get it for that but we can get it close to that, we still pick it up. At the end of the day, if we need to go back to the seller for a discount because a buyer isn’t willing to pay enough to be able to get us our company minimum spread that we look for, then we can always make up that on the back end with the seller.

We’re much more fluid now and much more flexible. That’s what I recommend to everybody, too. If you’re just getting started, don’t get hung up so much on the numbers because the more hung up you get on the numbers and you’re scared that you’re going to put the deal on a contract. It’s going to be a good deal and not going to be a good deal. It’s going to waste time and you’re going to lose deals.

If you think it could be a good deal, if there’s even the smallest part of you that thinks it could be decent, you can make something on it. I don’t care if it’s $1,000, $2,000, or $3,000. Lock it up because you’re not buying the deal when you’re wholesaling. You’re not physically buying it yourself. Who cares? If you pick it up and got it too high. It doesn’t matter. If more wholesalers could approach deals like that and more people, it doesn’t matter if they’re new or seasoned, approach deals like that. They would do a lot more deals.

The bigger guys that are doing hundreds of deals a year, they are flexible on their numbers. When they go to sell it, they go back and they pick it up on the seller side. The buyers will tell you, “The repairs are a lot greater than I thought. Did you see these floor joists here?” They’re eaten up with termites. Did you see the settlement that’s going on the property?” Maybe the seller didn’t tell you that. You go back and you say, “Because of these things, we need a discount.” From there, you agree to a price you can sell to your buyer for and move on.

One thing I would add to that is always set crystal clear communications with your buyers and your sellers. Be completely transparent about what your intentions are. I know wholesalers can get a bad name if they’re not operating ethically. We never want anybody to operate outside of any ethical boundaries. Have a conversation. You’d rather have the awkward conversation upfront than later.

If you need to frame the conversation with your seller like, “Here’s where we’re going to be at, a good look at it, depending on what our partners are going to say.” It’s always the best approach, in my opinion. If you do need a price reduction on the back end, it makes that conversation a lot easier. Words matter. Be abundantly clear. I’ve seen it done the wrong way. Let’s put it down.

A lot of people, they’ll do it the wrong way, so people are clear on what that looks like. For the record, I don’t believe in doing business this way, but a lot of people will know it’s not a deal for them. They’ll know there’s no chance it’s a deal at that price, and they’ll lock it up with a seller. They’ll get the highest offer from the buyer and renegotiate with the seller to create the spread. I don’t believe in doing business that way. What I believe is if you know the deal is tight and the seller is not flexible, you know where you need to be and the seller is telling you they want to be here.

Something you can even say is like this, “Mr. and Ms. Seller, you know that my offer is here and this is where I need to be. I’m confident I can make it work at this number,” and you are. “You want me to be here, I’ll tell you what. I can’t make any promises but give me two weeks. Let me get inside. Let me do my due diligence and see if I can make it work. If I can make it work, fantastic. If not, we can part ways and you can do whatever you’d like to do.”

What we found is that’s a good way of getting an offer accepted because at that point, the seller knows it’s a tight deal and they’re almost expecting you to come back. We give them the option, say, “We could part ways like we mentioned, or if you’d like to move forward,” because we’re prepared to move forward. We would need to be at this number and we can make it happen. Sometimes, we surprise ourselves and we can make it happen at the number we didn’t think we could make it happen at before. The point is being upfront. As Jason said, “You’re planting that seed so they’re almost expecting you to come back if they know they’re trying to push you on price.”

If your MO is to lock it up at any price and you’re setting a reminder on your calendar to immediately call them back in two days because you know that you locked it up too high and you’re getting some shenanigans going on. You need to examine some of your life choices, but wholesalers, you can get a bad enough name. The industry has some knocks on it. It’s always best to communicate clearly, effectively, and operate ethically. You’ll win every day, for sure.

 

Ninja Phrases

As we turn the corner, I always want to ask, whenever I talk to a wholesaler, somebody that’s in sales and is good at closing a deal. Do you have any, like your best closing line, a killer closure phrase, or handling a major objection or anything? Quite honestly, sometimes that little pivot in the conversation with the seller can unlock any gold nuggets or little ninja phrases that you see that work.

Are you talking about the acquisition side or the dispo side?

The acquisitions. Talking to a seller. You’ve got some major seller objection and you are stepping up to the plate. Any gold nuggets you can think of?

It’s funny. My business is split in two. My wife is the one that does acquisitions and transactions, then I focus more so on the dispo and the marketing. I’ve handled a ton of seller conversations. The biggest one that I see is when people are making an offer with a seller and the seller doesn’t give them a number. It’s getting that number out of the seller for them to be able to give you that because at the end of the day, the number you might give could be higher than the number the seller’s thinking.

You may say something like, “If we were to purchase your property cash, cover all the closing costs, no realtor commissions, and buy the property completely as is, how much are you looking to get for your property?” She would say something like, “You called me. Why don’t you give me an offer?” That’s popular on cold calls.

What we do is we drill like three layers deep. We say, “I understand that you’re not sure of a number. Let me ask you.” A lot of the stuff that we talked to, they have a magic number in the back of their mind where they knew if they to get that number now, they’d move forward. Do you have some type of number like that? They’re like, “I do, but you called me. You give me a number.”

Most of the sellers we talked to, they also have like a ballpark range of where they need to be. Do you have some type of range where you’d like to be? At that point, they’re like, “Somewhere between $150,000 and $160,000.” At that point, you know that they would accept $150,000 at the lowest, then you move on from there. That’s something that’s big. Another area that people leave money on the table is when they’re making calls.

Let’s give an example of the cold call situation. They’re calling, finding out if the seller is interested in selling, and a seller will say, “I’m not interested.” The biggest mistake that wholesalers make is saying, “Thanks. Have a great day.” This one thing I’m going to share with you will give you a 25% bump in leads. This is 25% of leads that are left on the table if you’re not doing this. What you want to do is go three levels deep. How you do it is like this, you say, “You’re not interested in selling. No problem. Let me ask you, do you have any friends or family that would be better looking to sell now?”

They’re like, “I don’t have any friends or family looking to sell. No problem. Let me ask you, is there anyone on your street that is looking to sell or maybe that you want them to sell? Maybe they have a fence that’s creeping over on your yard. There’s a tree hanging over or something that’s annoying. Maybe the house has boards on the windows. Anything like that? Nothing like that. Let me ask you. Do you have any other properties you want to sell? Maybe something that needs to be fully remodeled? I do have this other property.”

It’s funny because usually, with one of those three types of follow-ups that we have, they’ll say yes to one of them. “There is this house on my street. It has boards on the windows, and I can’t stay in the sky. He lives out of the country. He comes in once a month and barely takes care of anything. He makes the street look terrible.” They get enthusiastic. You can ask him for the address and you can get the phone number.

That’s huge when it comes to that. On the dispo side with selling deals, I find that a lot of people have an issue with getting beat up on price. A wholesaler will send a deal out, and a buyer will be like, “What’s the lowest price that you’ll go?” There’s two things you can say. The best thing I would say here is, “I don’t have a lowest price. I have an asking price. How much is your offer?” That’s one thing you can say. Sometimes buyers will also come to you and they’ll be like, “Let me ask you, what do you think the repair estimate is on this property? How much do you think the repairs are?”

At that point, what they’re expecting you to do is say, “The kitchen is at least $20,000 there. The bathrooms are $10,000.” The buyer’s mind is like, “It’s going to cost that to do it. It’s not going to cost that, right?” He knows that. He’s like, “That’s why I need a $15,000 reduction.” The whole stuff is like, “Ugh.” Instead, what they need to say to the buyer, when the buyer says, “How much do you think the repairs are going to be on the property?” You can say, “It doesn’t matter what the repairs are. I’m not the one doing the remodel.”

I love that. Once you start sharing numbers, they’re going to look different for everybody. Somebody that’s hiring a high-end GC to do all the work. That number is going to look different. Somebody that’s doing all the work themselves. Your number is your number. The wholesaler, something I’ve learned over and over again. The only number I have is the asking price, the suggested stocking price. That’s all we need to know.

I don’t give ARVs, numbers, and rehabs. I don’t even provide comps. Investors need to do their own work. That’s how we do it anyway because every time I put a number out, that’s something else for somebody to argue about. When we get approached with “What is your take on it?” you respond like that, like, “I don’t know. What do you think? It could be anywhere from $500 to $500,000. It’s up to you.”

You’re going to take my numbers that I give you and you’re going to run your own comps anyway. Go ahead and let me know where you’re going to come in at.

I love that, though, the three layers deep. Friends or people on your street neighbor, neighborhood, and other properties. The interesting thing as you were talking through that was people like to talk. Not everybody, but generally, people want to share information. They want to be like, “Let me tell you about this.”

Even though they may be guarded in the situation or not, as a wholesaler and anybody in sales, you’ve got to actively listen. You’re like a magician weaving in the right words at the right time. You’re trying to take your conversation can opener and open up this conversation. Questions like this, three layers deep allow people to start talking. That’s when you shut up and listen. Some of the best wholesalers I know say fewer words and you land deals. That’s oftentimes a misconception that a type A, an extrovert, gung-ho or typical car salesman type of mentality is the best wholesaler locking up deals. It can be the case.

There’s a lot of very good introverts at sales. I’ll tell you why introverts can be great at sales. Introverts don’t like to talk much but they do ask questions. They like to ask questions. They’ll ask a question and sit there. When someone is more extroverted, they may talk all the time. Introverts are asking questions. In sales, he who asks the best questions gets the right answers.

 

Introverts can be great at sales. They don't like to talk much, but they do ask questions. And in sales, those who ask the best questions get the right answers. Click To Tweet

 

I’m going to come up for a breath now. Chris, I appreciate that you joined us. I told you I’d keep it short and sweet. I kept my promise and this has been a very enlightening and very actionable discussion. I appreciate it. For those that are wanting to get ahold of you and find out a little bit more about what you’re doing, how you can help people. What’s a good way people can follow you on socials or reach out to you?

If you’d like to follow me on socials, my handle is ChrisLoganREI. You can follow me on Facebook, and I have that across all the platforms. You can follow me there. I also have a passion for showing people how to get started in wholesaling anywhere in the country. If you’d like to apply for coaching, you can go to VirtualWholesalingMadeSimple.com. Fill out the form and if I like what you have to say, I’ll consider bringing you on as a client. I can’t take on everybody. I have a max capacity, but I love showing people how to make money in wholesaling anywhere in the country.

Don and I talk about this. For those that don’t know my story, I met Don in 2017. Getting good mentorship and good actionable advice from somebody that’s been there and done that is a game changer. Avoiding the common pitfalls and bumps in the road. If you can maneuver around that with people’s help, you need to do that. Investing in mentorship, coaching, and learning how to do this business the right way is key. Chris, I appreciate you taking the time and what you’re doing for the real estate community. Thank you so much. This has been another episode of Flip Talk. I’ve been your host, Jason Lavender. Until next time.

 

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