The DealMachine Real Estate Investing Podcast

This podcast episode focuses on the business model of wholesaling real estate and provides tools and strategies to prevent sellers from backing out of deals. The host, David Lecko, shares his experience and insights on how to handle situations where sellers fail to close on a deal. The episode covers the importance of contracts, specifically the purchase agreement, the use of a notice of interest to prevent sellers from selling the property to someone else, and the benefits of working with an attorney. The episode concludes with advice for new real estate investors.

Takeaways

• Wholesaling real estate involves finding distressed sellers and getting their properties under contract to sell to buyers at a higher price.

• Contracts, such as the purchase agreement, are essential to protect the time and investment put into finding a deal.

• A notice of interest can be filed to prevent sellers from selling the property to someone else while working out differences.

• Working with an attorney can help enforce contracts and resolve issues with sellers who fail to close on a deal.

Key Talking Points of the Episode

00:00 Introduction

01:01 How does wholesaling real estate work?

04:13 What tools can you use to ensure your deals will close?

05:05 What are the parts of the contract we use for wholesaling?

10:23 What is the purpose of an assignment contract?

11:43 How can a Notice of Interest help you when a seller doesn’t close on a deal?

14:40 Why is it important to work with an attorney to help you with a seller who won’t close?

16:37 What is the best way to approach analysis paralysis?

Links

Podcast: 011: From Struggling to Making $105k on Their 3rd Deal feat. The Polites

https://podcasts.apple.com/us/podcast/011-from-struggling-to-making-%24105k-on-their-3rd-deal/id1667656532?i=1000608582746

Podcast: 065: How to Get Your First Deal in 7 Days with David Lecko

https://podcasts.apple.com/us/podcast/065-how-to-get-your-first-deal-in-7-days-with-david-lecko/id1667656532?i=1000633061788

Free Resource: Wholesaling Contract

https://dealmachine.com/contract

Free Resource: Assignment Contract

https://dealmachine.com/assignment-contract

David's Social: @dlecko

https://www.dealmachine.com/pod

Have you hired a driver to help you look for run down houses that quit on you? Here's why your driver quit!

This one's for anyone who's actually working on quitting their W-2 job to start wholesaling real estate: a strategy for making big checks from finding ugly houses.

If you've got a solid W2, you can hire someone to look for run down houses for you.

There's 3 payment structures for hiring a driver to look for run down houses.

I will tell you why your past drivers have quit, and how to hire and retain them going forward.

I've had the same driver with me for 3 years, and have coached hundreds of DealMachine team members on doing the same.

Summary

In this episode, David Lecko discusses the different payment structures for hiring a driver for driving for dollars in real estate wholesaling. He explains the three payment methods: paying by the hour, paying by the number of rundown houses found, and paying a bonus for closed deals. He emphasizes the importance of setting expectations, ensuring accountability, and having regular check-ins with the driver. Lecko also provides tips for screening and testing potential drivers and highlights the significance of having a contract to outline the payment structure and protect both parties. Overall, this episode provides valuable insights for anyone looking to hire a driver for driving for dollars.

Takeaways

• There are three payment structures for hiring a driver for driving for dollars: paying by the hour, paying by the number of rundown houses found, and paying a bonus for closed deals.

• Paying by the hour is often the most effective payment method as it provides stability for the driver and ensures they are motivated to work consistently.

• Setting clear expectations and having regular check-ins with the driver are crucial for maintaining productivity and accountability.

• Screening and testing potential drivers before hiring them can help ensure they are serious and committed to the job.

• Having a contract that outlines the payment structure and other important details is essential for protecting both parties and maintaining a professional relationship.

Key Talking Points of the Episode

00:00 Introduction

01:18 What payment methods work best for hiring drivers to drive for dollars?

02:03 Why is it not ideal to only pay a finder’s fee for drivers building you a list?

04:05 What is the best way to pay drivers to drive for dollars for you?

05:07 When would it be practical to not pay by the hour?

06:16 How can you make the most of paying someone by the hour to drive for dollars?

07:10 What will make people want to drive for dollars for you more than for other jobs?

08:03 Why is it important to set the right expectations with drivers you’re going to hire?

09:07 Why is it important to meet with your drivers regularly once they start working with you?

11:10 How will this strategy work for you as a real estate investor?

12:47 What strategy do we use to make sure the drivers we hire are serious about the opportunity?

14:37 What kind of contract can you use to secure your working relationship with your drivers?

Links

Podcast: 075: Make $10k-24k from Certain Down Houses with David Lecko

https://podcasts.apple.com/us/podcast/075-make-%2410k-24k-from-certain-down-houses-with-david-lecko/id1667656532?i=1000635664435

Podcast: 065: How to Get Your First Deal in 7 Days with David Lecko

https://podcasts.apple.com/us/podcast/065-how-to-get-your-first-deal-in-7-days-with-david-lecko/id1667656532?i=1000633061788

Free Resource: Driver Contract

https://www.dealmachine.com/drivercontract

David's Social: @dlecko https://www.dealmachine.com/pod

Are you frustrated that you have to ask your boss permission to take a vacation?

In this podcast, we teach you how to be your own boss through the proven business model of wholesaling real estate.

Wholesaling real estate allows you to make big checks for finding ugly houses.

Ryan leads this episode today, on marketing tips for finding those ugly houses. He quit his job in 2019 making $8500 on his first ugly house and has done 420 deals since then.

Summary

In this episode, Ryan shares his strategy for marketing in real estate wholesaling. He discusses the importance of driving for dollars and creating a mailing campaign. He also emphasizes the design of effective postcards and the impact of personalization. Ryan explains the value of multiple touch points with leads, including postcards and cold calling. He highlights the importance of consistency and having a clear process in order to achieve success in wholesaling.

Takeaways

Driving for dollars is an effective way to identify distressed properties for wholesaling.

Designing postcards with personalization, including a picture and a personalized message, can increase response rates.

Utilizing multiple touch points, such as postcards and cold calling, can improve the chances of connecting with potential sellers.

Consistency and having a clear process are key to achieving success in real estate wholesaling.

Key Talking Points of the Episode

00:00 Introduction

02:04 What is driving for dollars?

03:09 How does the appearance of your mail piece affect your strategy?

04:26 How do we design the postcards we mail out to our leads?

05:44 What makes our postcard design stand out from others?

07:05 What makes a personalized postcard more effective for direct mail?

08:28 How can you make sure your direct mail campaign is effective?

10:08 What is the best way to handle phone conversations with your leads?

12:04 How can the presentation of your offer make a change in the conversation?

13:32 Why should you market to your leads more than once if they don’t respond?

14:56 How can this strategy help you get in touch with more leads?

David's Social: @dlecko

https://www.dealmachine.com/pod

Ryan's Social: @heritage_home_investments https://www.heritagehomeinvestments.com/

Are you tempted to borrow private money and flip a house?

Today I interviewed a house flipper who transitioned to full time wholesaling.

You'll be surprised to hear why he chooses wholesaling real estate as his business model of choice after 20 years in the business.

Summary

Matt DuPre shares his journey in wholesaling real estate, starting with accidental discovery and transitioning from fix and flipping. He discusses the effectiveness of direct mail and using DealMachine for marketing. Matt also explains how he finds buyers for his wholesale deals and offers advice for those starting out in wholesaling. He emphasizes the importance of belief and perseverance in the industry and offers support to new wholesalers.

Takeaways

• Wholesaling can be a profitable alternative to fix and flipping, allowing for quicker and less risky transactions.

• Direct mail can be an effective marketing strategy in wholesaling, especially when combined with other channels like texting and cold calling.

• Cash buyers lists and social media platforms like Facebook can help find buyers for wholesale deals.

• Belief and perseverance are key in succeeding as a wholesaler, and it's important to adapt to market changes and buyer preferences.

• Support and guidance from experienced wholesalers can be valuable for those starting out in the industry.

Chapters

00:00 Introduction and Background

02:21 Discovering Wholesaling as an Alternative to Fix and Flipping

05:19 Earning Higher Assignment Fees in Wholesaling

07:48 Marketing Strategies and Finding Motivated Sellers

10:11 The Effectiveness of Direct Mail in Wholesaling

12:18 Using Deal Machine for Data and Marketing

13:37 Finding Buyers for Wholesale Deals

15:43 Using Cash Buyers Lists to Sell Wholesale Deals

17:24 Adapting to Market Changes and Buyer Preferences

21:30 Transitioning from Fix and Flipping to Wholesaling

22:18 Finding Buyers for Wholesale Deals

24:03 Advice for Starting Out in Wholesaling

26:02 Balancing Wholesaling with a Full-Time Job

27:57 Using Social Media to Connect with Others in the Industry

29:40 Offering Support and Guidance to New Wholesalers

29:59 Conclusion

This is the podcast for 10Xing your income and replacing your W-2 with wholesaling real estate, a strategy where you can make big finders fees for finding rundown homes.

In this conversation, Zack Boothe shares his strategies for handling objections when trying to get a contract signed. He emphasizes the importance of setting expectations upfront and pre-closing the seller to avoid objections later. Zack discusses three common objections: the need to talk to someone, the need to review with an attorney, and the desire to sleep on the decision. He provides practical tips and scripts for overcoming each objection and encourages listeners to practice and improve their negotiation skills.

Takeaways

• Set expectations and pre-close the seller to avoid objections later.

• When faced with the objection of needing to talk to someone, ask curiosity questions to understand their concerns and offer solutions to involve the person they want to consult.

• When faced with the objection of needing to review with an attorney, validate their need for legal advice and offer alternatives such as reading through the agreement together or giving them time to consult their attorney.

• When faced with the objection of needing more time, express understanding and offer a timeframe for signing the contract, while still giving them the option to cancel if they change their mind.

• Remember to be human in sales and treat the seller with respect and empathy.

• Practice negotiation skills by recording and reviewing appointments, and continuously improve through self-reflection and learning.

Key Talking Points of the Episode

00:00 Introduction

01:37 What are the top 3 reasons people don’t sign your contracts?

02:32 How can pre-closing help you overcome seller objections?

04:38 What is the importance of the first call with a seller?

05:22 What can be the challenge when you have a lead manager reaching out to sellers?

08:45 What is the best way to overcome objections from sellers?

11:37 What can you learn about negotiation from reading Never Split the Difference?

14:25 How can you overcome succeeding objections from sellers?

18:13 What can you do to avoid being shopped around by sellers?

21:31 What is the reality behind sellers wanting to sleep on the offer you’re making?

23:47 What makes sales challenging for most people?

25:47 How can your approach be the thing that’s preventing you from closing deals?

27:07 How can you get better at closing more deals?

Links

Book: Never Split the Difference

https://www.amazon.com/Never-Split-Difference-Negotiating-Depended/dp/0062407805

Podcast: 065: How to Get Your First Deal in 7 Days with David Lecko

https://podcasts.apple.com/us/podcast/065-how-to-get-your-first-deal-in-7-days-with-david-lecko/id1667656532?i=1000633061788

Are you somebody that KNOWS entrepreneurship is for them and want a proven business to go ""all in"" on?

Our guest made $15,000 from a run down house and has built a lucrative business ""wholesaling real estate"" - a way to make a finders fee for finding a run down house.

Tune in to hear how our guest ""Level Up Property Investment Group"" aka LUPI G, has completely changed his life in Houston, Texas

Key Talking Points of the Episode

00:00 Introduction

01:03 How did Lupi get in touch with the seller of his first wholesale deal?

02:02 What were the numbers on Lupi’s first wholesale deal?

03:00 How did Lupi find a buyer for his first wholesale deal?

04:36 What was Lupi’s easiest deal like?

05:44 How did Lupi find his easiest wholesale deal?

06:43 How has wholesaling changed Lupi’s life?

08:36 What was Lupi’s experience in changing his life with real estate?

10:48 How can you connect with Lupi?

Links

Instagram: Lupi G

https://www.instagram.com/global_l.u.p.i._g/

David's Social: @dlecko

https://www.dealmachine.com/pod

Matthew Hintz shares how he made $30,000 on his first wholesale deal and how he started his business to help a friend. He explains the process of finding inherited properties at the courthouse and how they found buyers and closed the deal. Matthew also provides tips for effective cold calling and strategies to avoid spam filters and improve contact rates. He discusses the importance of driving for dollars and knocking on doors, as well as setting goals for the business. Finally, he talks about using DealMachine for granular mailing campaigns, and leveraging its features for unlimited contact info and routing.

Takeaways

• Wholesaling can be a lucrative business if done right, even for beginners.

• Driving for dollars and knocking on doors can be an effective way to find distressed properties.

• Building relationships with realtors can be beneficial for wholesalers.

• Using tools like Deal Machine can streamline the wholesaling process and improve contact rates.

• Setting specific goals and having a recovery mindset can lead to success in wholesaling.

Key Talking Points of the Episode

00:00 Introduction

01:02 How did Matthew make $30K on his first wholesale deal?

03:41 Where did Matthew meet his first business partner?

04:43 What was Matthew’s first lead source for wholesale deals?

06:33 How did Matthew reach out to the probate leads they listed?

07:46 What are the best ways to cold-call leads today?

10:48 How should you register the phone numbers you use for cold calling?

12:08 What is the best way to find success in driving for dollars?

16:57 What did Matthew do after closing his first wholesale deal?

19:09 How has Matthew’s driving-for-dollars process changed since his first deal?

20:33 What are Matthew’s goals for 2024?

Links

Free Trial: Deal Machine App

https://www.dealmachine.com/pod

David's Social: @dlecko

https://www.dealmachine.com/pod

This one's for anyone who wants to be a real estate investor, but doesn't have the money to buy unlimited rental properties or flips. Our guest, Anisa fell in love with wholesaling real estate, where instead of taking a property down as a rental, she could make $12,000 from it right away, move on to the next deal and build her cash reserves up.

She started by reaching out to motivated sellers in Facebook groups and built relationships with real estate agents. Anisa explains the benefits of wholesaling, such as not having to purchase a property and avoiding market volatility. She discusses the challenges of negotiating deals and finding cash buyers. Anisa also shares her goals for scaling her business and her strategies for determining offer prices. She highlights the importance of using DealMachine for driving for dollars and direct mail campaigns.

Takeaways

• Wholesaling real estate involves reaching out to motivated sellers and building relationships with real estate agents.

• The benefits of wholesaling include not having to purchase a property and avoiding market volatility.

• Negotiating deals can be challenging, but it's important to be conservative with repair costs and provide tangible evidence to sellers.

• Finding cash buyers involves using strategies like posting deals in Facebook groups and reaching out to investors who have purchased properties for cash.

Key Talking Points of the Episode

00:00 Introduction

00:48 How did Anisa get started in wholesaling real estate?

02:18 How long did it take for Anisa to find a motivated seller?

03:18 What made Anisa look into wholesaling real estate?

04:40 Why is Anisa reluctant to buy properties?

05:32 What motivated the seller of Anisa’s first wholesale deal?

06:35 What challenges did Anisa face when she started looking for wholesale deals?

07:30 What was it like for Anisa to do her first wholesale deal?

08:20 How did Anisa make the offer for her first wholesale deal?

10:00 How did Anisa find a buyer for her first wholesale deal?

11:11 What marketing channels does Anisa use to market to buyers?

12:47 What are Anisa’s goals for 2024?

13:25 How does Anisa choose an exit strategy for a deal?

David's Social: @dlecko

https://www.dealmachine.com/pod

Cole Stephenson shares his experience of making $10,000 on his very first wholesale deal. He started by consuming free content from Jerry Norton and participating in his challenge to make five offers a day. Cole used online platforms like Facebook Marketplace and Craigslist to find motivated sellers. He developed a texting script and focused on building rapport with sellers to identify their motivation. Cole secured his first deal by offering 70% of the estimated after-repair value (ARV) and negotiating with the seller. He found a buyer through a contact in the industry and closed the deal successfully. Cole plans to scale his business and acquire 20 properties for long-term rentals.

Takeaways

Consuming free content and participating in challenges can provide valuable knowledge and guidance for getting started in wholesaling.

Building rapport with sellers and understanding their motivation is crucial for securing deals.

Negotiating skills and the ability to analyze numbers are essential in wholesaling.

Finding a reliable buyer and closing the deal successfully are key to making a profit in wholesaling.

Key Talking Points of the Episode

00:00 Introduction

00:51 How did Cole make $10K on his first wholesale deal?

01:45 How did Cole find his first wholesale deal?

02:37 What was Cole looking for when he was reaching out to leads?

04:38 How did Cole run the numbers for his first wholesale deal?

06:31 What is the importance of building rapport with sellers?

08:57 Why is due diligence critical in real estate investing?

10:36 How did Cole find the buyer for his first wholesale deal?

12:51 What was Cole’s first JV experience like?

16:13 What does Cole’s strategy for finding sellers look like today?

19:10 Why did Cole decide to get into wholesaling real estate?

21:35 How much has Cole’s life changed since getting into wholesaling?

23:47 What is Cole looking forward to in 2024?

Links

Podcast: 097: 6 Ways To Help Someone In Foreclosure with Devin Robinson

https://podcasts.apple.com/us/podcast/097-6-ways-to-help-someone-in-foreclosure-with-devin/id1667656532?i=1000641409769

David's Social: @dlecko

https://www.dealmachine.com/pod

Dominique Brown shares his journey into wholesaling real estate, starting with his discovery of the concept through an interview on the Breakfast Club. After getting fired from his job, Dominique decided to pursue wholesaling and partnered with a friend who was a real estate agent. They began driving for dollars and found their first deal, a hurricane-damaged property. They sold the property through a partnership with Net Worth Realty and made a profit of $7,000. Dominique has since completed over 50 deals and continues to build his buyer's database.

Takeaways

Wholesaling real estate can provide an entrepreneurial opportunity for those who are not suited for traditional nine-to-five jobs.

Driving for dollars is an effective strategy for finding distressed properties to wholesale.

Networking with experienced wholesalers and real estate agents can help beginners learn the ropes and find buyers for their deals.

Building a buyer's database and utilizing email marketing can help wholesalers quickly sell their properties.

Key Talking Points of the Episode

00:00 Introduction

01:14 What is Dominique’s background?

11:03 How has Dominique’s success impacted his lifestyle?

19:45 How has Dominique’s childhood impacted the way he approaches real estate?

21:22 Why is it important to focus on one thing if you want to succeed?

22:01 What was it like for Dominique to buy his first duplex?

26:32 How did Dominique find his first few off-market deals?

33:02 Why is it important to calculate your BRRRs accurately?

39:35 What does Dominique’s portfolio look like today?

42:03 How did Dominique make his business sustainable through market cycles?

47:16 What is Dominique’s favorite deal like?

54:26 Why is it important to get better at hiring people for your business?

57:27 What lessons did Dominique learn from his favorite deal?

58:28 What is Dominique’s least favorite deal?

01:07:34 What lessons did Dominique learn from his least favorite deal?

01:10:51 Why are relationships important in real estate investing?

01:19:01 What is Dominique's advice to his younger self?

01:21:10 What is the most overlooked or overhyped investing strategy today?

01:24:02 How can you connect with Dominique?

Quotables

“That’s a great thing as an investor – to actually hold your properties because it’s one of the things that set people apart, in the long run, is who has actually ridden through that time and allowed these properties to appreciate versus constantly selling and turning and chasing your tail to some degree.”

“I think it’s good to have a default setting of I’m gonna try to hang on to these and then when there’s really moments and times where it makes sense to let go of a property, then do so, but for it to be sort of Plan B and not Plan A.”

“If there are scenarios where you can own real estate and it didn’t really cost you anything, and now you’re getting the mortgage paid down and the appreciation and cash flow, then that’s great too.”