Joe:  Welcome. This is the Real Estate Investing Mastery Podcast.

Joe:  You want a million dollar tip? Listen, pay attention, write this down. It is way easier to sell buyers what they want rather than what you have. I learned this strategy a long time ago from one of my original coaches and mentors, a guy named Kent Clothier, great guy, and he taught this strategy called reverse wholesaling. In fact, if you go to Amazon, you can probably still find the book Reverse Wholesaling. But what he taught in there was literally life-changing for me at the time. It's easier to sell buyers what they want rather than what you have. And so one of the strategies that I've always tried to do and I try to tell all of my clients and the community and things like that to do is find the buyers first. Find what they want and then go get it for them. Your life will become so much easier when you do that. And so I recently did a video talking about this because we've got this property recently. This is vacant lot listed for three hundred and forty thousand dollars. We got it under contract for two hundred and fifteen thousand dollars and we're now selling it for $260,000. So $45,000 gross profit on a property that was listed. We made a lowball offer. The seller accepted it. Now we are selling the deal and we are doing an assignment, right? Where I thought, wait, I thought wholesaling was illegal, immoral, and fattening, but here we are. We're doing it. So I did a video just recently for my coaching clients and I sent it to them, but I wanted to send this to you guys now in a YouTube video. Five reasons why finding buyers first is better when you are wholesaling. And this applies to whether you're wholesaling land or houses.

But number one, you're going to know exactly what to buy. You're knowing what the buyers want. The buyers will tell you their needs, no guessing, no wasting time on going after bad properties in bad areas where nobody's interested in. Okay.

Number two, you can now close your deals much faster. Why? Because you already have the buyers lined up. And that cash can happen faster. There's this thing called velocity of capital, right? It's all about turning your money as fast as possible. And when you are finding buyers first, or you know what the buyers want, and then you go get it for them, then your cash flow is going to turn much faster. Make sense?

The third reason why this is awesome is that it reduces your risk, right, you get your properties kind of like you're pre sold them in advance, you're not going to get stuck with bad deals that you can't sell. So this reduces your risks.

Number four, you can negotiate now stronger with sellers. Why? Because in the back of your mind, you know you've got a buyer that wants this deal, you have confidence, and you can negotiate better terms lower prices, because you know you've gotten somebody. And in fact, actually, when you know, you've gotta buyer and you know what they're willing to pay, you can actually maybe offer more than what other people are offering on these deals, right?

Number five, you could build really good repeat by relationship. We had a buyer on a deal, we were wholesaling it. We had a huge assignment fee. It was like 30 or $40,000. But the buyer said, Hey, wait a second. Whoa, whoa, whoa. I'm not gonna pay you a $30,000 assignment fee, and we said, Okay, fine. That's fine. No big deal. I forget the exact numbers on this other deal I'm thinking of. But you know, it was we were selling it for like maybe 150. And we said all right, we can sell it to you for 165. And that way we can cover our closing costs and the invest the interest money that we're going to pay to our private investor. So if you want to do an assignment, that's all right. We can sell It to you. For this at this higher price. And he's like, Well, wait Wait a second. I don't like that. No. And he said, right. But if you don't want it, that's fine because we've got five other buyers because we always are marketing for buyers. We've got 5 other buyers that would be interested in it. So one of them, that so fine. It's totally cool if you say no. And he's like, no, no. No, wait a minute. Wait a minute, wait. He says, all right. So how much is this assignment again?

And we were doing this with the realtor. Okay, fine. We'll do this. And we weren't negotiating with this realtor that was bringing us the buyer. Okay. And then you know what happened? Three, four months later, he sent that buyer who paid us like a $30,000 assignment. If he sent us an email saying, hey, do you have any more deals? And he actually wrote this in the email. I don't care what the assignment fee is. Do you have anymoredeals? Because when we are wholesaling, we're buying at a cheap discount and we're selling at a cheaper discount. We're selling vacant land and houses at cheap prices to buyers who are hungry for deals. Even as the market is slowing down, there will always be a demand for deals, for good deals. And so it's called the velocity of capital. It's better to make a quick nickel than a slow dime. So we know who our buyers are, we know where they're buying, we know what they want, and then we go get it for them and we sell it to them and we sell our deals quickly. All right? You've heard it said it's illegal to wholesale.

Well, depends on how you define wholesaling. What we do is absolutely right. You're never going to argue and win this argument about brokering. We're not brokering. Brokering requires a license, obviously, right? When you go find a deal for somebody else that's brokering, you need a license to do that. But what we're doing is we are actually closing on the deals and then turning around and selling them. Now, sometimes there's different ways we do this. And by the way, we almost always use realtors. That's the whole purpose and intent of these brokering rules is to protect, you know, people from scam artists or whatever, right? But also so that the licensed professional realtor can stay involved in these deals. Here's the thing, we're not trying to get around or skirt the rules. We're working with the rules, so we use realtor to bring us buyers. Okay, now, once we get a realtor that brings us a buyer, there's two or three ways we can do this. And oftentimes, I leave it up to the realtor to tell us how to do it. All right, we can an assignment, which is the fastest and cheapest way to do it. Or we can double close on the deal. In other words, use our money or private investors' money to close on a deal, immediately turn around and sell it. That's called a double closing. That's the way I call it.

We use transactional funding. People inside of my Dirt Flippers program, we have free transactional funding available to everybody. And then the third way is to actually take it down, take down the deal close on it with your money or with private investors money and then sell it a month later two weeks later Whatever on the MLS with the realtor to a and buyers that make sense So this deal here that I'm going to be this way long introduction giving you some information on I'm gonna show you the assignment strategy. We got a great deal under contract We knew what buyers were looking for But what we did is we started calling a bunch of realtors that had sold land recently in that area and we said to them hey, we've got a good deal. Do you have a buyer that might want this? We're working on closing it. We don't know if we're gonna buy and hold it for 30 years. We might hold it and sell it on owner financing to someone else, or we might just flip it. We don't know, but do you have buyer? And we will pay you a real generous commission if you do. So then what happens? Well, this deal in particular that I'm gonna show you in this video on, the Realtor brought us a buyer. And they said, you know what else they brought? They brought the title company, they brought the paperwork, they did it all above board, everybody's happy. The seller got the price they wanted, they got rid of this property, we made a great assignment fee, and the end buyer got a great deal below market value. Alright, so enjoy this video here, hope you learned something from it. I'm going to show you how to actually find these realtors who have these buyers and why it's such a cool thing. I love it because I'm not calling realtors to say, hey will you list this property for me? I'm calling them to say If you have a buyer, I'll pay you a bunch of money if you just send a few phone calls and send a text messages. Hey guys, how you doing? I got something really exciting to share with you. Right now, we're working on a deal somewhere in Florida. It's not this county. I'm going to show you something here that is really, really cool. But this is a deal we got under contract for about $215,000. It's about a four acre property. The seller had it listed the year before. Well, no, had it listed and expired a few months ago for $340,000, right? $345,000 it expired. We offered $214,000 we put it on the well, we didn't put it the MLS yet, but we put it on our website. We, we put it on, I think, land.com for $280,000. Got a buyer really quick, but the buyer backed out. Remember we have three months to close on this deal, right?

And so we're getting a little discouraged because we were thinking we're already counting our chickens before they hatch, eggs before they hatch or whatever. This is something that I've taught before, but my angle has always been a little different. And, but, my acquisitions dispositions guy, my good buddy, Matt, was like, you know what? I'm gonna try something different. So we got on the phone and started calling all the buyer's agents of properties, not as asking them, would you list our property, but calling buyer's agent and saying, hey, we've got a deal. We'll pay you real generous commissions if you can bring us a buyer. So not asking to list, but asking them to bring us a buyer, different little subtle shift that made a huge difference. So with just a few phone calls, he found a buyer that brought us a contract, found a realtor that brought a buyer with a contract to buy it for $2.60. So we're buying it for 215. We're selling it for 260. That's a spread of what? 45 grand. And we're going to pay this realtor 3% commission. But here's the crazy thing about it. All right. Listen, pay attention. We call this agents. We called these realtors of listed properties, the buyer's agents of sold properties that were on the MLS. I'm going to show you todo that here in a minute. And we said, Hey, we are investors. We are wholesalers. So we just were blatant right up front and honest with that realtor, with the realtors. We our wholesalers, we've got a property under contract to buy in this area. We're trying to just assign our contract so we can save on closing costs. We decided we don't want to buy it. So we just want to assign our contact to save on clothing costs. We see that you've recently sold a property here. We're wondering would your buyer make maybe looking for another property to buy here in this same area and we will pay you what three, five, 10% commissions.

Now, obviously, the more expensive the property is, the less percentage maybe your commission should be. But here's the key to make this work. You need to be really, really generous with your commissions, okay? And all that realtor needs to do, they don't care that number one, you're a wholesaler, that you don't own the property, that you're just assigning it. Most likely, they won't care at all, right? All they're hearing is, wait a minute, I just need to make a few phone calls and I can make 5%, 10% commission. What if he said this? What if you said, hey, listen, I've got a property I want to sell and we need a buyer. We don't want to double close on it. We don't want to use our cash to close on it. We just want to assign it. So if you bring us a buyer, we'll pay you 5% commissions on this deal. And if you can bring us a buyer that can close in 30 days, and it actually closes, we will double your commission and pay you 10%. Boom, a mind blown, right? Now you're going to be thinking, that's a lot of money to pay. What I'm telling you, if you could make 10 grand and you pay that realtor 5 grand, you'll still make 5 grand for doing nothing except making a few phone calls. So now you don't have to worry about closing costs. You've got a realtor that's going to be on your side that's going to explain to their client, hey, I got a good deal here for you. Yeah, we're going to have to do an assignment. They're buying it for 10. We're selling it for 20, whatever. So that, but it's still a good deal at 20. That realtor is now going to be on your team. Does that make sense? Helping you close this deal.

So it's just a great way. Now that realtor will bring you a title company or closing company or a closing attorney that can handle the deal. And they're going to be more interested in helping you close this quickly because they're going to get even more commissions. Now it could just even be still like, listen, I'll pay you 5% commissions and I'll play an extra $2,000 if you can close it within two weeks or 30 days or whatever. If you can bring me a good buyer and we just do an assignment. Do you understand? Like, so before what we've done is we've called realtors saying, hey, would you list my property? What if now instead you call realtors and say, will you bring me buyer and don't even list it? So how do you find these buyers? Let's just say this is another county I'm in, all right? We're just here looking at vacant land, and sometimes Redfin acts a little slow here. Let's try this again, vacant land. All right, here we go. And let's look at solds in the last month. Done. All right. Now we've got land sold in the last month, and let's say I'm going to remove outline, and we're just going to draw a little area where our property is, and let's zoom in a little bit here. Hold on. So again, we're at sold in the last month, vacant land only. All right? And let's draw in an area where our property is at.

Okay, boom, look at this. Let's sort it by most recent sold, here we go. Okay, guess what's gonna happen, watch this. We click on this guy, scroll down, bought with, boom. Now, sometimes some markets don't give you who the buyer's agent was, just the listing agent. So, you know, call the listing agents. But what I'm telling you is call these buyer's agents up and just Google, Madeline Garcia. There's a phone number right there. Now, that's maybe the phone number for the realtor. So you can click around and get information on these realtors. There you go. There's a mobile phone number right there. Like you get different information on different links that you go to. Sometimes if you go realtor dot com, you get better information on who the buyer's agents are. But again, call Madeline up and say, Madeline, hi, my name is Joe. I'm an investor in St. Louis, Missouri. I see you just sold a property here in Lehigh Acres 33971. I have, I'm, I I'm and investor. I have a whole, you could even say I'm a wholesaler if you want, but, because That automatically, if they get triggered by that and start going into breaking into hives because you're an evil, wicked wholesaler, you don't want to do business with them anyway, right? So just be like right up front. I have a property down the street from yours under contract. I got it under contract to buy it for five grand. I don't know if I want to, and I'm looking to just, I just want to sell or I just want to flip this contract to somebody else.

And if, I don't know if you, if you have a buyer that might be interested in this or not, but I'll pay you 10% commissions. And if you can bring me a buyer that can close within 30 days, I'll pay you an extra thousand dollars as a bonus. You wouldn't be interested in helping me with this, would you? And by the way, I just want to just, I want to do an assignment. I don't want to have to double close so I can save in closing costs and all of that. Do you have a buyer who would be willing to pay me five grand for my contract or, you know, or pay me 10 grand for contract? And then that's it. The realtor will handle everything else. They'll handle the paperwork. They'll hand if they have to list it on the MLS or maybe they don't. They'll handle finding the title company that can do this. You know what I mean? It's just got to be a good deal and be honest with them. Say, you know, we've got it under contract for $2,500. If I can make, I want to make at least a $5,000 assignment fee. So whatever commissions you want to make on top of that, just let me know. Like if you can get a buyer that can make. If you get a, if you can bring me a buyer, that can buy it for 20. I'll make five. You make 15. You know, like whatever the numbers are, right? But you call these agents up, they're going to be hungry. And they're gonna be like, oh my gosh, this is great. I've got a buyer, yeah, he's looking for more deals in this area. He or she, let me contact them and find out what's going on.

So this is just like, just look for these recent solds and call Omar. What's up, Omar? How are you doing? I am trying to look for information here on these areas. Direct number right there. You understand what it's saying here, how powerful this is. And you can find out within, you get this under contract. You can find it out within a week or a couple of days, whether it's a good deal or not, that realtor is going to go and look at the property. They're going to tell you, you know what, man, that's not a good deal. There's no road access there. You know, it's on the wrong side of the tracks. Like I went and looked at it. By the way, you can tell the realtor, you know, when you go look at it, we take some pictures of it for me. That realtor can also list it for you if they want. Maybe you like the guy and you're like, you know what I can't, I don't have any buyers right now, but I'd be willing to list it for you. Boom, there you go. But that realtor will give you feedback on the property. They'll go look at it they'll take pictures. They'll tell you whether it's a good deal or not. But you just be straight up front and honest with them. I am looking for a buyer. I can just do, I just want to do an assignment. I don't want to a double close. I'd rather not even list it on the MLS.

You can bring me a buyer, I'll pay you 5%. I'll bea 10% commissions. And you'll be shocked how many realtors can just make a few phone calls and we'll get you a buyer and a contract and an offer within a few days. Mind blown. You understand like maybe you're like a duh, no duh, Joe, of course. But what blew me away when got so excited about this was again, this was normally in the past, and I've called realtors, I've called them trying to list my properties. Now I'm calling them to just bring me buyers, that's it, and let's not forget, let's just forget the listing. So this deal, we bought it, we have another contract for 215, we've got two more months to close until we have to close. We got a realtor that's bringing us, that gave us an offer for 260 with a $25,000 earnest money deposit with a one week inspection contingency in there. And we're paying that realtor 3% commissions. And they know it's gonna be an assignment. So I'll keep you updated on this deal. But I hope this maybe inspires you because this makes everything so much easier. All right, sorry for the long video. I could have said the whole thing in just 30 seconds, but I think you should be excited about this. Hope you're doing well.