The Complete Starters Guide to Wholesaling Real Estate (Part 2) with Todd Toback #233
You got a property under contract! CONGRATULATIONS! Now, what do you do with it?
Todd Toback is back and breaks down the process of selling your contract, how to advertise it, and how to get the absolute best price. If you are new to wholesaling this episode is a MUST LISTEN! If you are a wholesaling veteran there are many tactics that you can apply that will make an immediate impact on your business! REIMastermind.net
You got a property under contract! CONGRATULATIONS! Now, what do you do with it?
Todd Toback is back and breaks down the process of selling your contract, how to advertise it, and how to get the absolute best price. If you are new to wholesaling this episode is a MUST LISTEN! If you are a wholesaling veteran there are many tactics that you can apply that will make an immediate impact on your business!
Todd Toback has 19 years of real estate experience specializing in acquiring real estate assets below market value. He has flipped over 1000+ Single Family residences, duplexes, triplexes, and other types of property. During his tenure as a real estate investor, he has held a small portfolio of single-family homes, multi-units, mobile home parks, and has extensive experience in lease negotiation.
Todd is the creator of the #1 Single Family Acquisition Training in the country, The No Limits Sales System. This training focuses on the 3 Pillars of making it BIG: acquiring property directly from sellers while learning the mindset, skills, and habits to make it happen. He has trained solopreneurs and large teams to double and then double profits again just by making a few small tweaks. He is an expert in teaching others the art of talking to motivated sellers.
Also, he is the Pioneer of the coaching program, Next Level Wholesaling, teaching solopreneurs how to break free of the bondage of “the one-man show”. He trains other entrepreneurs how to build highly effective teams that produce revenue, how to purchase income-producing real estate, and how to build long-term wealth while drastically decreasing their working hours. After spending a short time with Todd’s training, you won’t ever want to do business the old way again. His passion lies in seeing other people grow, changing the way they play the game and ultimately, their lives forever.
We chat about:
- How to talk to private sellers and close more deals?
- Who is your first hire in real estate?
- What if you are a solopreneur and swimming in day-to-day tasks and want to break free?
- How to get off the treadmill of doing more deals?
- How to maximize your marketing budget and what is the best marketing channel?
- What is the secret to building wealth in real estate?
Connect with Todd!
As you can already tell we have made some changes and a few more are on the way. If you are interested in what we have planned, head over to Patreon.com/REImastermind,
and support the show today. Financial contributions are always appreciated along with a LIKE, SHARE, and REVIEW
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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - JD
We have Todd Toback on the call again this week and Todd I appreciate your time. As always, maybe we can make this a regular appearance.
00:00:12 Todd Toback
Well, let's go. Let's start with today and rock and roll baby.
So we are going to build on the last episode we did together. We talked about acquisition. Now we are going to be talking about disposition and how when somebody gets a property under contract, what do they do with it? But before we do.
I must push everybody to your show because if they have not been subscribing to your show by now, I do not know what they are waiting for. No limits podcast. With Todd Toback. You gotta make sure you find his show and subscribe to it.
Where else can they hit you up these days?
00:00:49 Todd Toback
Well, sure, no limits. Real Estate Investing Podcast is the podcast and if they want to go to nolimitsrealestateinvesting.com they can find go there and listen to the podcast or download a what we call the map. That's the massive action plan, so they're more than welcome to go there.
00:01:02 Todd Toback
And learn more about what we offer, but the podcast is a great place to start and then go into website secondary.
Yeah, there is a lot of great content there, people, so make sure you take a take a listen to that.
So like I said, we are going to build on our last episode together and I really want to talk about the disposition, and you do things very differently than I have heard.
A lot of other people trying to do disposition with them with the properties they get under contract so.
Let us start things off at the very beginning. What is one of the first things that they need to do before they even?
Think about selling that contract well.
00:01:39 Todd Toback
Great question JD. They must do something called a checkup from the neck up and so you know many people look, you know they get into this business, and you are so excited to get that.
Ha ha ha.
00:01:52 Todd Toback
Deal right, but what happens is sometime.
00:01:55 Todd Toback
Times we develop this urgency that we need to sell this property as fast as humanly possible, right? And so, what I think is important is understand that when you have a good property under contract, that is an asset, right? And it is it. It hastes makes waste.
00:02:15 Todd Toback
And that you want to move with a sense of urgency, but you also want to be strategic on how you either keep this thing or hold it as a rent.
00:02:23 Todd Toback
So, either how you will whole tail it, take it down, clean it out, and put it on the multiple listing service.
00:02:31 Todd Toback
Or you may decide to wholesale it for maximum profit, but in either one of those scenarios, any one of those scenarios, right? We want to get maximum profit for this.
00:02:43 Todd Toback
Deal and so you can understand that that if you have structured your contract correctly, you know you should have 30 days (about 4 and a half weeks), right?
00:02:50 Todd Toback
There are some deals where we went in a contract on Friday, and we had to close on a Monday, and I understand there are certain circumstances where that happen.
00:02:57 Todd Toback
But you are going to have at least 30 days (about 4 and a half weeks), and so understanding that you must now say, OK, I have this deal.
00:03:04 Todd Toback
Now I need to be responsible, and I have a quote unquote fiduciary responsibility to myself and my company.
00:03:11 Todd Toback
To now get the maximum profit right, and that is going to be really, important now. Let me say this.
00:03:18 Todd Toback
If you are brand new in this business and let us assume that either you have not done deals or you have done a few.
00:03:25 Todd Toback
So, a lot of new wholesalers out there. They develop these buddy relationships with their cash buyers, right? And they have this genuinely like subservience, slash, superior relationship with their cash buyers where the cash buyers are, like, quote unquote Big Brother and this wholesaler is little brother right? And that is not always the case, but there is a tendency.
00:03:47 Todd Toback
To be that way, right? I am the guy coming in with the cash and you are just the deal Finder, and so that's where that attitude comes from.
00:03:55 Todd Toback
And So what that that really what that relationship is code for is I'm going to sell this to you lower than I think I should write or I'm going to.
00:04:07 Todd Toback
No, I'm going to sell this to you at the expense of getting a higher price, and so I think we have to get our head straight on that.
00:04:15 Todd Toback
Is that a lot of people out there like, well, I like you know to have my relationships and I like this guy and I like that guy and I don't want to ruffle the feathers. Well, the reason why they like you?
00:04:24 Todd Toback
OK is and I don't mean this in a rude way, but the reason why they like you is because you are selling them properties below market value far below where you should.
00:04:34 Todd Toback
So I don't know if I went too far ahead there JD, but.
No, no, that's exactly where I was. Hoping you were going to go. You know the and I'm going to be the first one to admit this. You know, we've been in this mindset.
Uhm, that when, when and a lot of real estate investors do this, especially when they get into wholesaling is that we do have our favorites.
We we establish those relationships and we in sometimes before we let it go out to the rest of the buyers list, we might even.
I give a couple of them a quick heads up like first refusal. Kind of a thing and I can definitely see how that's going to shoot you in the foot to a certain extent.
00:05:13 Todd Toback
00:05:19 Todd Toback
Oh absolutely, because what happens.
00:05:21 Todd Toback
Is you know, especially when you start sending them to the same one, right? And especially if you do assignments, they start to see what you make, right?
00:05:28 Todd Toback
Maybe it's 15, maybe it's 20 and by the way, I, I hope I hope to God it's more than 20.
00:05:35 Todd Toback
You know, and then maybe it's 30, right? They start to get, uhm, you know they. They may say they don't get upset underneath, right?
00:05:44 Todd Toback
But believe you may they notice right? And there's just a little mental note, and so they know in the next property.
00:05:50 Todd Toback
OK, I have a room to negotiate here or say this or say that and so you gotta let the market take it where it's at.
00:05:57 Todd Toback
So true story. So a while back I taught a course called bigger deals and I noticed by the way it through my private clients that I take on.
00:06:08 Todd Toback
Uhm, occasionally and uh, you know the difference between people who struggle and the ones that really are crushing it.
00:06:17 Todd Toback
The ones who crush it are doing bigger deals, period, right? They're not doing the ones who are crushing or not doing little $7000 deals here. $10,000 a year at the.
00:06:25 Todd Toback
Walls you know you'll see them do 2525 thirty two 1886 seventy 254.
00:06:33 Todd Toback
You know you'll see those kinds of deals, and I noticed that and I said I've got to teach this course called bigger deal.
00:06:39 Todd Toback
So I took a group of 35 people and I said I'm going to double your deal size. OK, this is the goal of this.
00:06:46 Todd Toback
Eight week challenge here. I'm going to double your deal size. We're going to start with this mindset.
00:06:50 Todd Toback
And it's important to negotiate right on the front. And we talked about that in the first episode, but the back end man, you guys are just leaving so much money on the table.
00:07:01 Todd Toback
I said but one of the things that's going to be requirement for you to go in this course is that you're going to have to get uncomfortable right? The relationships.
00:07:10 Todd Toback
That you have with your cash buyer.
00:07:12 Todd Toback
This are going to change, right? And you're going to have to learn not to be. It's OK not to be liked, but you have to be respected.
00:07:21 Todd Toback
Right, and so that's how that's you know. I knew it in my own business and then I started to see it.
00:07:28 Todd Toback
Obviously the impact in others. So Long story short, six weeks. And I mean everyone who participated in this course immediately doubled their deal size. I mean, it was. It was in completely insane. It was a more drastic than.
00:07:40 Todd Toback
00:07:41 Todd Toback
Even fathom, but if you want we can go over some of a little bit of this process.
00:07:47 Todd Toback
Of how we sell these sell these deals, of course. We've done a lot of teasing here. I, you know, I'm not really sure we're going to share all of it today, JD.
00:07:54 Todd Toback
Ah, ah, that.
Well, they got to go to your show and hit you up on your site to get every piece of this.
00:08:01 Todd Toback
About it, but so, so let's talk about dispositions, right? So there's a couple ways you can go about that, but number one what you have to do, especially in this market, is you've got to create competition, right? Crowd competition will tell you where the true market value of the property is.
00:08:17 Todd Toback
Yes, this is very, very important. Uh, I can tell you that different buyers pay more for certain areas, different buyers to pay more depending what their exit strategy is.
00:08:26 Todd Toback
So a guy who's going to buy and hold it is definitely going to pay more than a guy who's going to fix and flip it, right? A guy who's going to move into it with his the single dad who moves in.
00:08:34 Todd Toback
To the house with his 22 year old son who's going to fix it himself, right? And just pay for the materials is going to pay more than the big company who's got a big crew?
00:08:43 Todd Toback
Who's going to have to fix and flip it right so we need to create competition to drive up that price?
00:08:47 Todd Toback
So my first recommendation to everybody is you have to have control of the process to have a big buyers list.
00:08:54 Todd Toback
And I'm going to talk about a way that you can avoid this in a minute, but let's assume that you have to.
00:08:59 Todd Toback
Develop a big buyers less through a multiple of ways, right? You can do direct mail. You can work with other wholesalers.
00:09:06 Todd Toback
You can work with real estate agents, but one of my favorite ways is direct mail and you want to have a large group of buyers you're dealing with and every single property that you have.
00:09:15 Todd Toback
You want to send out to all of them and do one inspection time. OK, you want to set this. You want to keep a tight leash telling them they have to be there exactly at this time.
00:09:26 Todd Toback
That this is the quote, unquote suggested starting bid. You want to start with that frame work right suggested starting bid.
00:09:33 Todd Toback
This is not the price. Tell him this is the deadline for the offers. It's going to be 5K nonrefundable AMD they have to close in seven to 10 days cash or hard money only. And so you're setting the tone and you're driving the process.
00:09:46 Todd Toback
OK, I also get a professional inspector out to all of my wholesale deals and it's a way to go.
00:09:55 Todd Toback
Call the concerns of buyers right with the inspection, but also it will protect me if I need to get a reduction later.
00:10:03 Todd Toback
So we get everybody there, and if you do your job right, you should price it approximately $10,000 less than what you think the property will go for.
00:10:13 Todd Toback
Now of course this is going to take some nerve, and so why would I price it less than I think I could get it for right? Because this is.
00:10:20 Todd Toback
Going way above.
00:10:22 Todd Toback
Asking, OK, that's the trick here way, you're going to drive this way above asking so.
00:10:30 Todd Toback
Uhm, you get everybody to the property you want to do some crowd control. You'd want to keep them away from the seller and explain, hey, don't talk to the seller and we have this all in the email that we sent out.
00:10:43 Todd Toback
And you do a quick 45 minute inspection. OK offers come in highest and best come comes in. Of course it's going to be your title company.
00:10:51 Todd Toback
You drive the process now.
00:10:53 Todd Toback
Here's what's going to happen.
00:10:55 Todd Toback
Is by the way JD do most of the people listening to your show have the majority of them done. One or two deals? Or is it no deals?
00:11:02 Todd Toback
Or is it a bunch of deals?
It's all over the place.
00:11:06 Todd Toback
OK, so if you are brand new you want to do it this way and you don't have to worry about repairing any kind of relationships with your buyers or retrain and you want to train them this way from day one.
00:11:17 Todd Toback
But if you've been playing the favorites, here's what's going to happen. Guarantee it. Your old buyers are going to go there and they are going to stomp their feet and they're going to walk off the property and they're going to say I'm not doing business with you anymore and I'm going to go market for Sellers Direct, right? There's a little bit of a threat there, and they walk off and.
00:11:37 Todd Toback
That's part of the process, right? And what I would say to that is saying, hey, you know I I totally get it.
00:11:43 Todd Toback
I, you know, appreciate all the business that we've done together. But this is the new process. And you know, if you want to continue to do business, you're more than welcome to submit it with it.
00:11:53 Todd Toback
Right now, the reason why that buyer is upset.
00:11:56 Todd Toback
Is why JD?
Because up until now, he's in his mind, has been getting some pretty decent deals, and the insider track.
00:12:05 Todd Toback
Correct, and now the only reason why he's upset.
00:12:10 Todd Toback
Is that he's not going to get a 20 or 30 K less than he should.
00:12:16 Todd Toback
Right or she or she right? So uhm.
00:12:20 Todd Toback
So you're going to see that right now all the people who were on your buyers list before will gladly submit a bid, and once you get the highest bid, then at that point you can now direct them to the title and escrow company.
00:12:32 Todd Toback
Make sure that EMD is in and then rinse and repeat the process right? That's going to be very important.
00:12:40 Todd Toback
Now that's one step, and that's one way we dispose properties the other way. Now that we've started doing that is we just stick them right up now that we have them in a contract, we just stick them right on the mills.
00:12:49 Todd Toback
And do the same exact thing right. We run we. We run our inspections the same exact way, but we use the power of the models and we work with a real estate agent to list our properties and do all the negotiation and we get way more than we would if I did.
00:13:03 Todd Toback
Our house buyers list, but you must use that process. I spoke about. If you're going to get the highest and best.
So you know that that latter one is especially interesting, like since the you have this House under contract, what kind of feedback have you received from the seller? If you just turn around and put it on the unless like that?
00:13:27 Todd Toback
It's all about expectations.
00:13:31 Todd Toback
All about expectations, that's it, that's it. OK, once you get through this through your mind and you train yourself to believe it, and then you set those expectations with the seller.
00:13:46 Todd Toback
00:13:48 Todd Toback
It's easy, right? And everyone is going to be here at the same time it's going to be pandemonium. I'm going to start my marketing.
00:13:53 Todd Toback
I'm going to put it online, right? I'm going to get a head start on everything that we do, right?
00:13:57 Todd Toback
And This is why we're able to buy houses so fast, right? The escrow company is going to call you so everything is going to go in one shot.
00:14:03 Todd Toback
You're going to see a lot of activity, right? We're going to have this one inspection time. You can see a lot of people here.
00:14:08 Todd Toback
So when that happens and all those people there, it's crazy, but now they've expected it. They understand it, they've run to now understand that you're a man of your word, because when they go to an inspection, it's going to be pandemonium. And so when you set that stage, right?
00:14:25 Todd Toback
I've had 100% success. I've only had problems where we didn't set that expectation.
00:14:34 Todd Toback
And most of those are marginal deals.
Yeah, well, you know you, you've really squashed everything that most people would do.
You know whether it's the concept of building that relationship, identifying one or two of your strong buyers, and you're kind of feeding them deals, which frankly it seems, starts to feel like.
You're working for them, oh.
00:14:57 Todd Toback
Thank you, thank you for saying that.
Uh, but the other thing too is that a lot of people and I'm gonna put myself in the same boat. We have the a tendency of.
Putting some sort of markup on the property and then just kind of saying here it is. This is what we want.
Who wants it kind of thing and there's not a lot of negotiation. It's usually almost more of a first come, first serve.
00:15:28 Todd Toback
I totally agree and I I I found there was a couple of problems with that. It's interesting because I I had a chance to work with Tony Robbins team and their sales manager came and he wanted some real estate training.
00:15:42 Todd Toback
So I trained him on real estate and then he had a phenomenal sales manager who's like the number one.
00:15:48 Todd Toback
Sales manager in the world.
00:15:50 Todd Toback
And he came in, and we agreed to barter for this. And we did some deals together, and he took a look at our process, right? And he's like.
00:16:01 Todd Toback
You know, I don't understand you know well, because we used to do that first come, first, you know, serve thing and it was like whoever got the EMD in first and it was total chaos, right?
00:16:10 Todd Toback
It was like who's going to run to the title company with a 5K, and so it's just. It's just not a way to run a business, so no one understood what the selection process was for actually getting the deal.
00:16:21 Todd Toback
Versus OK, highest and best actually gets the property right. You wanted to set clear rules and so everyone knows they are on a level playing field, right? And so that's really, really important, and so that's something that we adopted. And after we did that.
00:16:24 Todd Toback
00:16:36 Todd Toback
Yeah, business was never the same in the wholesaling side.
So just a reminder, everybody look up a no limits real estate investing podcast and.
And definitely check out the website for a lot more content.
But you know, you just got my head spinning here right now regarding some of this stuff because.
It is, it really does make a huge shift out of you having all of the control from the disposition process versus disposition. Up until now has been very, extremely reactionary.
00:17:22 Todd Toback
And that's you know how we always run we.
00:17:25 Todd Toback
Wanted to run the business right we wanted.
00:17:27 Todd Toback
00:17:28 Todd Toback
Get rid of that reactionary side, right? The stress and the hurry and the angst and the chaos right? And so for us.
00:17:37 Todd Toback
We have one person who handles disposition who works with the real estate agent. She understands the process and accepts the offer and that's it, right?
00:17:48 Todd Toback
That's it so.
00:17:49 Todd Toback
00:17:51 Todd Toback
You know that's the most important thing is that you've got to decide how you want your business to run right? The end goal and that'll help you with a lot of decisions.
00:18:01 Todd Toback
Right, if you decide that you want to run your business this way, then your business is going to run that way, and if not, then it's going to. If you don't have a specific end goal in mind, I guarantee it's going to be chaos.
Sure, so a lot of people are going to probably think of think this too like that is. There seems to be like a certain market size that you have to be or certain cash buyers list size that you have to have in order for this to really work.
00:18:31 Todd Toback
Well, if you lift on the M LS no right, but I mean you know you wanna you want to have at least 20 good cash buyers on your list.
00:18:40 Todd Toback
So the biggest BS I see is wholesalers out there. Trading lists like I've never heard a bunch of a bigger piece of malarkey in my entire life, right? Because?
00:18:50 Todd Toback
The most of the people on there are just other wholesalers right? And people know people have never done a deal and so I can tell you that if you've got a list of 2000 people on your list, probably only 150 have actually ever done a deal.
00:19:06 Todd Toback
So I'd rather have 20 good.
00:19:08 Todd Toback
Once right that you know are good and are active so you can do that by mailing, and you know that's my preferred method.
00:19:18 Todd Toback
Chris Chico back in the day. Create a phenomenal postcard on getting cash bars so I love that so people were calling they are.
00:19:27 Todd Toback
Yeah, that you know that they have bought because you've bought the list and they've done that also at the auction.
00:19:32 Todd Toback
That's another great place to do that, but you know right now with the multiple listing service, you don't have to do that right now.
00:19:38 Todd Toback
00:19:39 Todd Toback
Somebody people listening to this and they're thinking that this is a good idea, but there's too much tension and friction.
00:19:44 Todd Toback
And you know the seller is going to, you know, freak out and I. I get that right. But the question is, how much are you willing to get out of your comfort zone to make more money, right, right?
00:19:56 Todd Toback
And if the deal is that big, if you've got a monster on your hand and you're making you know 100K, I don't suggest putting on the M LS. I suggest taking that.
00:20:04 Todd Toback
Tucker, down right, buying it, taking it down and then doing what you can to maximize profit at that. It's not worth it, right? So there's money is so cheap right now, right to private funds is out there in.
00:20:20 Todd Toback
In full effect, right? So you can go and get a private money loan for practically free.
Yeah, so you know you mentioned the unless a couple Times Now I can imagine that you run into some Realtors. You'd have to find a realtor to be on your team or become one yourself.
But what type of resistance have you seen regarding finding the proper fit for a realtor?
00:20:48 Todd Toback
It's all about driving the process, right? So if you're listening to this and you're thinking oh, I'm a realtor, I could do this myself. I just want to let you know that I just threw up in my mouth.
00:21:01 Todd Toback
00:21:01 Todd Toback
If you want a job, get out of real estate investing and go get a job. OK, it is much easier and far less stressed to go work for somebody else than to do the job yourself in your own business.
00:21:15 Todd Toback
I mean, you know the whole thing of like I'm a realtor. I could list it myself. That is quite possibly the most.
00:21:21 Todd Toback
Asinine thing that I've ever heard.
00:21:25 Todd Toback
Go out there and find a broker. OK, not a real estate agent or broker. OK, and the reason why they call him a broker, it's because they're broke, and you know the brokers.
00:21:35 Todd Toback
What I like about them and not all brokers and you know, I. I mean that because you know they're willing to work for 1000 to $2000.
00:21:44 Todd Toback
A deal, right? They're willing to do that. That is their world, right? If you're a real estate investor that's I'm hoping that's not why you got involved in this business. And so whenever you're listening to this.
00:21:56 Todd Toback
And you're thinking, hey, is this the kind of wage I got into this business for? And if and if it's below that, we'll team up with somebody.
00:22:04 Todd Toback
To do that, so a broker, let's say you're in a market like Florida and you're selling $150,000 house. You can get a broker to sell a house between 1 1/2%.
00:22:14 Todd Toback
OK, now the reason why I like a broker is 2 reasons. Number one is they don't have to split it with an agent.
00:22:19 Todd Toback
#2 is that I want the boss. I want the decision maker that's really important, right? The full blown decision maker and so if they have a I don't want them in the middle of my listing saying hey, I don't want you sticking this on the M LS if you don't own it yet, right?
00:22:32 Todd Toback
I I don't. I don't want that so that I I want to deal with the decision maker so it's a broker and three, you want someone who's not from one of the big houses like Keller Williams or Coldwell Banker?
00:22:42 Todd Toback
I don't want them to have too many regulations. I want them to be like a free bird like Joe Smith, broker and so those are the three things now you will definitely. It's interesting because you can find brokers.
00:22:52 Todd Toback
In Facebook groups, local Facebook groups and post something on there, and here's what I love. If you say hey looking for a broker to list my.
00:23:00 Todd Toback
Deals willing to pay between one and 1 1/2% and you know or I would say 1% right must be flexible.
00:23:07 Todd Toback
You're going to get a ton of hate. An absolute ton of hate, and that's OK. I love it, but I I eat it up, but it just knows that I'm doing something right. And then every single time I've got 40 people who say how much they hate me and how.
00:23:20 Todd Toback
Brokers Commission is non-negotiable. Or how could I dare say that and then I get five or six people who message me privately and say man I would love to do this for you. I would love to do this for you and those are the people who we're looking for.
Yeah, you know it. It's been. It's kind of interesting. You know I'm in a smaller market, so when we did our wholesaling at a decent clip it was amazing how many people, especially Realtors and a couple brokers reached out saying this isn't legal. This isn't, you know it the naysayers.
Came out of the woodwork, especially in a market that I suppose they're not used, they weren't.
Used to it.
00:24:01 Todd Toback
Sure, what market are you operating in?
Mysterious island in North Dakota.
00:24:05 Todd Toback
Right, so you know the interesting thing is that it's.
00:24:10 Todd Toback
It's infuriating to a real estate agent who.
00:24:14 Todd Toback
Has to go sit with a seller.
00:24:17 Todd Toback
And nurture that lead and pay for that lead. And then fill out all kinds of paperwork.
00:24:24 Todd Toback
Right then put the house on the market, make sure it's clean. Make sure the seller cooperates. Does the listing back and forth takes the offer, goes back and forth.
00:24:32 Todd Toback
Has to act as a fiduciary right then sentence to escrow has to make sure the loan sticks together and then all said and done.
00:24:38 Todd Toback
That agent makes you know 3% on you know $150,000 house which is $4500.
00:24:45 Todd Toback
But now they've got to split with their broker, which is 22.
00:24:48 Todd Toback
100 bucks, right?
00:24:49 Todd Toback
And the fact that you're going to make 20 or 30 grand.
00:24:52 Todd Toback
On this is infuriating to them, right? And so I, you know, I I.
00:25:00 Todd Toback
I could see why they would be upset.
00:25:03 Todd Toback
Right it. They don't believe that it's possible because how could this guy be making 2030 grand and I'm making 2500 right? They also don't understand it and they're only looking at it through their worldview.
Right? No, you know the emulous thing is something especially interesting. That and you know. And frankly I haven't heard.
Like I mentioned, when we started this program, I haven't run into a lot of wholesalers or trainers or coaches even bring up or even suggest this as an option.
00:25:37 Todd Toback
Yeah, I mean you know the heart of that is that you've got to get past your fear of doing that, right?
00:25:42 Todd Toback
I'm quote unquote losing.
00:25:42 Todd Toback
The deal, right? But if it's that good of a deal, just take that sucker down.
00:25:47 Todd Toback
Take it down what I mean by take it down is buy it with cash, right? You? You've for me doing bigger deals. I'm always going to recommend that you want to have cash on hand. You can either.
00:25:57 Todd Toback
There's a million ways to get cash. Like I said before, I mean, I would line up a bunch of cash advantages, cash advances on my credit card, and you can get these things for basically 0% for 18 months.
00:26:07 Todd Toback
You know and get 200 grand worth of that or you can get a lot of credit on your house or you can get a private lender who will lend to you at 7 or 8%.
00:26:16 Todd Toback
But you know that's also an option for you also. I mean, there's a million ways to.
00:26:19 Todd Toback
Get 1,000,000 bucks.
Yeah, you know you and I talked about this on the last episode 2 is that this is really a mindset.
Change not only for a lot of people.
You know, we're some of us have gone through different trainings and different. It becomes a habit. The way we're doing things and if we if you really want to see this level of growth that Todd is talking about, it does take this drastic mindset and process change that.
Todd is suggesting here today.
00:26:52 Todd Toback
So I don't take on private clients often. OK, I don't do it. You've got to be doing deals and you've got to be willing to change.
00:27:00 Todd Toback
But one of my proudest moments is a private client. I had him do something that was completely out of his comfort zone.
00:27:06 Todd Toback
And he told me that he threw up right before he did it.
00:27:11 Todd Toback
And I was just so happy.
00:27:15 Todd Toback
He told me he was the best that one of the best things he's ever done his life. So I know that if if that is happening right real growth is happening right that the mind has to.
00:27:27 Todd Toback
If you're going to be stretched right, it's not. It's never comfortable. You know, anytime you go to a new level of growth, it's something that you're not used to do.
00:27:36 Todd Toback
And so you know, before I bought my first commercial property, I was extremely uncomfortable with it. You know, before I started understanding profit and loss statements, I just couldn't stand looking at spreadsheets.
00:27:47 Todd Toback
Now, like I love it, I live in them right? And so before I was uncomfortable doing kind of a an auction format with all my.
00:27:55 Todd Toback
Properties right I used to have the one or two favorites and you know it was easy, right? But easy is is the killer of growth.
Right, well you mentioned, you know, talking to the, you know.
I guess trading services with the Tony Robbins fella. But is that what spurred this thought or this change in your business? Or how did you? How did it come about?
00:28:24 Todd Toback
Well it was interesting 'cause that it didn't start out that way right? But it was a, uh, you know, a pair of fresh eyes, right? So you know, we had heard that they were really good at running remote sales teams, right?
00:28:37 Todd Toback
And then they had heard that we were really good in real estate and they were local right at the time.
00:28:42 Todd Toback
And so you know, a phone call happened, and then the teams got on the phone and then we, we, you know, had different people looking at different parts of the business and then it just came up right.
00:28:53 Todd Toback
And so it took a pair of fresh eyes to be like what the heck are you doing over here? You know, like that's a really good point.
00:28:58 Todd Toback
So really it came out of we were looking at sales people and they were like hey listen, you know the selling the properties is not really a sales position like some people have a full blown disposition.
00:29:08 Todd Toback
Manager and you know. And I'm like why you know? Like why does someone have a disposition manager? There's no.
00:29:14 Todd Toback
There's not really a negotiation going on. There's just a feeding frenzy and the highest and best and a procedure for where they submit the offer.
00:29:22 Todd Toback
And so you want to create the frenzy there, right? You shouldn't have to be individually calling all of these buyers, and some people have.
00:29:29 Todd Toback
You know that kind of business, especially like in turnkey real estate. If you have like a turnkey provider, but it's a different client, but when you're selling fixers, you know the auction method works really, really well.
Sure, you know, and you know I hate to back up too far. But early on you talking about how when we're spending all this time with individuals and we build those relationships and you're kind of giving them the inside track, they might start regretting the concept of what that that slice your make.
Thinking you've, you find that that's pretty much negated when you're in this auction type scenario, like because they when you're doing an assignment of contract, they all kind of.
They do know what you're making on each deal, right?
00:30:12 Todd Toback
Well, the biggest thing is I never negotiate on assignment fees. I negotiate on price, right? So you never want to make that a.
00:30:19 Todd Toback
A point of conversation, right? So someone says how much are you making on it? Well, first of all, I put somebody in between me and them and we say, hey we, we negotiate on price, right?
00:30:29 Todd Toback
So submit your total price in here. What you're willing to pay for the property and you know yes, we have this under contract, but that is irrelevant.
00:30:39 Todd Toback
Right, and so when we send it over, it's a purchase agreement and if we decide to switch that over to an assignment, sometimes they'll eventually, you know, find out. Maybe. But again, we always move the conversation from assignment fee over to price, right?
Well, I as always very enlightening outside of what we talked about. Is there anything else we might have missed that we probably should bring up yet?
00:31:04 Todd Toback
You know my goal for you. If you're listening to this is this business can change your life, right? And there are small tweaks, just like in any business that if you take them will send you to the next level, right?
00:31:16 Todd Toback
And so my goal for you is to do that, get out of your comfort zone, right? I I know, we mentioned the podcast, but my the podcast specifically is I try to do something a little bit differently.
00:31:26 Todd Toback
Right, I'm kind of known as a.
00:31:27 Todd Toback
Renegade in this business and I'd like you to be a renegade too if you're listening to this. So that is my advice for today. Hopefully, you can take some of that. Makes more money for yourself if you're listening to this.
Well thanks again Todd and always welcome back. Hope we can chat again and this is very insightful. Appreciate it.
00:31:47 Todd Toback