Why Wholesaling Should Be Your First Real Estate Strategy | Flipping Mastery Weekend Edition

On today's Wholesale Hotline Podcast (Special Saturday Edition), we help you start your weekend right offering tips, news and mindset advice. Show notes -- in these episodes we cover: Tips to level up your wholesaling business. Motivation to keep you going on your real estate journey. The latest industry news to keep you updated. Please give us a rating and let us know how we are doing! ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ ☎️ Welcome to Wholesale Hotline & Flipping Mastery Breakout! ☎️ Jerry Norton went from digging holes for minimum wage in his mid 20's to becoming a millionaire by the age of 30. Today he's the nation's leading expert on flipping houses and has taught thousands of people how to live their dream lifestyle through real estate. **NOTE: To Download any of Jerry's FREE training, tools, or resources… Click on the link provided and enter your email. The download is automatically emailed to you. If you don’t see it, check your junk/spam folder, in case your email provider put it there. If you still don't see it, contact our support at: [email protected] or 888) 958-3028. ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 💲 USE THIS LINK FOR DISCOUNTS AND FREEBIES TO USE IN YOUR BUSINESS: 💲 Make $10,000 Finding Deals:b https://flippingmastery.com/10kpod Get 100% funding for your deals! https://flippingmastery.com/fspod Mentoring Program: https://flippingmastery.com/ftpod FREE 8 Week Training Program: https://flippingmastery.com/8wpod Get Paid $8700 To Find Vacant Lots For Jerry: https://flippingmastery.com/lfpod FREE 30 Day Quickstart Kit https://flippingmastery.com/qkpod FREE Virtual Wholesaling Kit: https://flippingmastery.com/vfpod FREE On-Market Deal Finder Tool: https://flippingmastery.com/dcpod FREE Wholesaler Contracts: https://flippingmastery.com/wcpod FREE Comp Tool: https://flippingmastery.com/compod FREE Funding Kit: https://flippingmastery.com/fkpod FREE Agent Offer Sheet & Scripts: https://flippingmastery.com/aspod FREE Cash Buyer Scripts: https://flippingmastery.com/cbspod FREE Best Selling Wholesaling Ebook: https://flippingmastery.com/ebookpod FREE Best Selling Fix and Flip Ebook: https://flippingmastery.com/ebpod FREE Rehab Checklist: https://flippingmastery.com/rehabpod ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🔌 PLUG IN & SUBSCRIBE 🔌 SUBSCRIBE: Jerry Norton and Flipping Mastery TV FACEBOOK: http://www. Facebook.com/flippingmastery INSTAGRAM: https://www.instagram.com/flippingmastery/ ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🤝 #SQUADUP & GET MORE DEALS DONE in the Wholesale Hotline LIVE Facebook group: https://www.facebook.com/groups/759418414582645 🤝 ‼️‼️Pro tip: Make a post with your market & what you need help with‼️‼️

• 0:03Speaker 00

  Hey, it's Jerry Norton. Welcome to the Wholesale Hotline Podcast and the Flipping Mastery Breakout. We want to know how we're doing, so please leave a comment and give us a rating.

• 0:17Speaker 00

  I'm going to make a strong argument that wholesaling is really where you should start and where you want to start if you're breaking into real estate. What I'm finding is that most people do it wrong. And it's not that the strategy is wrong necessarily, it's the order is wrong. It's a timing thing. They're really misaligned on their timing. I want to talk about this idea around the speed of money. I first learned this from my friend Chris Rude, but I really love this idea that there are different speeds of money. And so first, let's start with fast speed. Fast speed would be where you're earning money in under 30 days. This is usually active income strategies in real estate. This would be wholesaling because you know, you get in, you get out, ideally in 30 days or less.

• 1:01Speaker 00

  You make $10,000 or more, but it's a very fast strategy. Then you get into medium speed money. This would be kind of the next level. This is six to 12 month turns, you know, so you're doing something today. You see the results or you get paid for that in six to 12 months. This is flipping. Usually these are value add type projects like a fix and flip, and you're making 40, 50, 60 or more on a deal. It's a medium speed. And then you have your slow speed strategies, and this is your long-term stuff. This is your passive income. This could be rentals. It could be what I like, private money lending. But this is where you're getting that mailbox money. It's trickling in. You do the work upfront. You own these assets and it's mailbox money, right? You get this money coming in every single month.

• 1:43Speaker 00

  And the mistake that a lot of people make is they just get all out of order. Most people jump into slowed speed. You know, they read the purple bible, rich dad, poor dad, and they buy into this idea that once my cash flow exceeds my living expenses, I'm free. And then they quickly learn that it was a lie, that those rentals are actually work. And not only work, but a headache and stress, you know? So it ends up being not what they thought and That little bit of cash flow they're earning isn't meeting their goals. And they find that they've got these rentals, but they're still having to go out and somehow figure out how to create active income. I like to think about a high school analogy. Freshman year in real estate really should be wholesaling. It's learning how to transact.

• 2:26Speaker 00

  It's learning how to find deals, analyze deals, recognize the process. Sophomore year is like fix and flip. Now you're ready for some risk. You're ready to take on some capital, ready to get in some deals, but you're still not holding those assets. You're turning them. Junior year might be rentals. And then senior year would be development, commercial, some of these big plays that you can do. And senior year is also where you can start to really create the tax advantages, the passive income. But I really feel like you should follow this order for the most part. Another way to think about this is you're using your legs, right? You guys have all heard this analogy crawl, walk, run, sprint. So crawling would be wholesaling, walking would be flipping, running might be rentals,

• 3:10Speaker 00

  sprinting might be development and commercial. So success in my mind really does come down to the right strategy, in the right order, at the right time. This is where I think you should be focusing on earning that massive income first and then passive income second, or later when it's more appropriate. What that really means to me is you need to create what I call a printing press or an ATM machine, a model that is going to create a lot of income very quickly. So if we go back to this speed of money idea, what I think is in year one, the initial phase of this business on fast speed income. Put the job and go in full time. It's going to pad the bank account.

• 3:54Speaker 00

  It's going to fund all your other endeavors. Nothing beats having a lot of money in the bank account every single month. It just solves all your problems in life. Maybe not all of them, but the money problems, it solves all those problems. And so year one really should be focused on about 100% on fast speed. Year two or phase two of your development or your business journey could be maybe 80, 20, 80% still fast speed, 20% now medium speed.

• 4:20Speaker 00

  And then maybe by year three or phase three, it looks like this 70% fast, 20% medium and 10% slow. And as time goes on, you can developmentally move into the slower speed money. Maybe someday, eventually the slow speed money replaces all of the other speeds and you don't need those other speeds. But I look at that fast speed money. I look at that model wholesaling. I look at that as the gift that keeps giving, right? I look at that like the mother goose that lays the golden eggs. And even to this day, over 20 years after I got started in real estate, I put a lot of focus on the fast speed money. Some focus on medium and some focus on slow.

• 5:02Speaker 00

  But I never lose sight that I've got to generate that fast speed money so that it can facilitate all the things that I want to do. So when it gets into it and you're become what I would call, you know, a deal finding machine. I think about baseball as an analogy of like, what deals should I keep? And to me, a single, a double or a triple wholesale those, don't keep those. Somebody else has smaller margins than you do. Let them have that deal. Let them work really hard to make 20 grand on a flip or whatever. Pass those deals on to the next guy. Make the quick fee, get that fast speed money in. And then when you're ready and it's appropriate, remember timing. Then the home run deals are the ones you keep.

• 5:47Speaker 00

  And those could be flips or those could be buy and holds that you want to hold on to. But be very, very selective. This is how I look at the business today. If it's a single, double, triple, I don't want to keep that thing. I want to wholesale it. But when that home run comes in, that deal of a lifetime that I love. I want to keep that deal and take that one on. Just to kind of put this in perspective, if you do just three deals a month that are wholesale deals and the average deal is 10,000, which is the bottom end of average, then that's $360,000 a year. And you can run a business like this wholesaling three deals, averaging $10,000 a deal as a solo operator with very low overhead, even low marketing expenses where you're taking home most of that in a business.

• 6:30Speaker 00

  Business model. That's how wholesaling should look initially. Let's talk about this. Getting that first deal. I really want to talk about this proof of concept, getting that first deal, not losing sight that you are one deal away from the life of your dreams. It's not the one deal, it's the trajectory that you put yourself on. It's the path that gets you started into creating millions of dollars in this business. It's all developmental. It's fine where you're at, just start. Get off the sidelines and get started. I think most people with the resources that are available today that I didn't have 20 years ago, you can get there so much faster than it took us to get there. I mean, when I started 20 years ago, wholesaling was sort of like this obscure thing. There was no data, there was nothing. If you didn't have MLS, you couldn't even comp anything.

• 7:15Speaker 00

  Your hands were tied and everything was behind a paywall. You had to pay people to even learn anything. I can't believe what people have today and then the excuses they make as to why they can't get started. And so I want to share with you here this chart I created, this blueprint. And I'll put this in the chat if you guys want this because it's, it's got all these links to really deep dive each of these steps. And so I'm going to go through this very quickly. But again, I'll give you this blueprint. It'll have all these links. On these links, there's videos that expand on these topics. And then there's free resources that you can download absolutely for free. Step one is setting up your business, you know, get your LLC set up. Treat it like a real business, not a hobby. I find that if you set up a business, you get an entity in place.

• 7:57Speaker 00

  You open up a bank account, you get your EIN number, you do those things, you treat it like a real business and you take it seriously. Step two is going to be choosing your market. And this is something you have to get very clear about. Wholesaling is market specific. And you could choose your backyard market where you live and you close in person, you go on appointment, or you could choose a remote market, we call that virtual. And that's not where you live and you would close those deals on the phone. And choosing your market, I think you need to think about, you know, you want to be in a big enough of a market where you've got plenty of opportunity. Minimum 500,000 population. That would be a metro market where you could drive anywhere in that range within an hour. You really want to also be in a halfway decent median home sale prices.

• 8:41Speaker 00

  So stay out of the low income markets. Those are very hard to hit any kind of margins in your business. Step three is to generate leads. This is really what matters the most, I think, is generating leads. Like I said earlier, you want to become a deal finding magnet. When you think about finding deals, there are three types of lead gen. There's free methods, low cost methods, and there's high cost methods. And really to think about this, think about outbound marketing and inbound marketing. Outbound marketing is where you're going to get free things. That could be door knocking. It could be driving for dollars where you drive around looking for deals. Or it could be agent outreach. Those are some of your top outbound marketing methods. Cheap might be cold calling and texting. That's very inexpensive.

• 9:23Speaker 00

  Expensive is going to be where you're running ads now and you're starting to move into inbound marketing where they're contacting you. This could be Facebook ads, direct mail, TV, radio. This could be SEO. It could be pay per click, which is Google ads. It could be pay per lead, PPL, which is a done for you lead generating service. Once you generate those leads, then you got to move into calculating and offer price. Now I developed a calculator. I'll give this to you for free. It's really great. You don't even have to figure out comping and after repair value. You don't have to try to figure out what the repairs are. It basically just runs this algorithm.

• 9:59Speaker 00

  And it takes the values off a Zillow realtor in Redfin and it averages those out. It takes percentages, factors in your profit, and it gives you a number and it does it all instantly. I found this to be very, very effective to get your offer price very quickly. Once you've got your offer, you've got to make the offer. And making the offers is where everybody kind of falls by the wayside. If you're not putting a number in front of a seller or an agent every single day, you're not doing deals. You've got to be able to present these offers and do it in a succinct way. And so I've got some resources there for making those offers. Step six is going to be executing the contract with that seller. And again, I've got contracts that I'll give you for free.

• 10:42Speaker 00

  I fine tune them with lawyers every single year. I add to them, I update them constantly so that they're, you know, relevant to the market and what's going on in the marketplace. So you want to be able to execute that. Again, resources on getting those for free, how to fill out the paperwork. Step seven is then to open escrow. Once you've got an executed contract, you want to open escrow. I've got a resource there all about how that works, the title process. I recommend at this step also is where you implement a transaction coordinator. They're going to keep all the parts together. They're going to coordinate between seller, between your buyer, between title. Keep the glue together so stuff doesn't fall apart at the last minute. So step seven is opening escrow. Step eight is then you need to find your buyer.

• 11:25Speaker 00

  I break down multiple methods to find buyers. We even give away a free cash buyer directory where you can get free cash buyers. We pull all of this data and you know, so that's a resource that you can get to as well. Once you find your buyer, then you got to execute your assignment contract with that buyer. Again, give you that for free, show you how to fill that out so that you can get that buyer under contract. And step 10 is the best part of all, that's where you're going to close and get paid and make your fee on the deal. You know, a couple of thoughts here as we wrap this up. Success really does come down to, you know, these three things. And this is where I see wholesalers either make it or break it.

• 12:06Speaker 00

  The wholesalers I know that start out and they find success relatively quickly. They go on to build successful multimillion dollar businesses. They understand the consistency and the work entailed every single day. If you do these three things every day, which is one, generate quality leads. Two, talk to sellers or agents every single day. And three, make offers every single day. If you do those three things on a daily basis. You are very quickly in the money. You are very quickly doing one deal a month, two deals a month, three deals a month, five deals a month, and so on. This is what makes the best wholesalers out there is they are consistent.

• 12:49Speaker 00

  And I think about it like this, it really comes down to making offers because until you put an offer in front of a seller or an agent, nothing else matters. All the rest of it is just busy work. It's all leads up to the offer. Because until you put an offer in front of somebody, you don't give anybody the opportunity to say yes or no. And you have no control over whether they're going to say yes or no. But you do have control over whether or not you give somebody the opportunity to say yes or no. I look at it like this, if you haven't made five offers every single day, at least 10 ideally, then you're not doing deals every month. Simple as that. That's your job. Put those offers in front of people every single day. The more

• 13:30Speaker 00

  offers you make, the more deals you'll do, and the more money you'll earn. That should be your mantra. That is the mantra of a wholesaler is making offers every single day. And if I can do that consistently, five, 10 times a day, I'm doing deals every month. That I think guys is really the secret ingredient. If you guys want this blueprint, I can put the PDF that has the hyperlinks in there for you guys. You can get all these resources there. If you go through all these resources and watch these videos, you might go down a rabbit hole of watching, you know, five hours of detailed information about these things. I cover all of this in detail on my YouTube channel and give these resources to you for free.

• 14:09Speaker 00

  Thanks for listening to this podcast. To get more free tips, check out my YouTube channel. Just search Flipping Mastery TV on YouTube, where I have over a thousand videos teaching you how to make more money with real estates. On my channel, I also give away free stuff like my Quick Start Kit with everything you need to flip your first house in the next 30 days. Or my deal finding software called Data Cruncher, which finds discounted houses in any zip code in a matter of seconds. You can get those for free at myquickstartkit.com and mydatacruncher.com.