00;00;00;02 - 00;00;26;24UnknownMost investors think that they have a marketing problem or a deal problem, but the truth is they have an analysis paralysis problem. They're trying to do too much, and they don't understand what it really takes in terms of focus and getting the right amount of volume to get success.00;00;26;27 - 00;00;52;17UnknownYeah, I think for today, we're going to break down what it really takes to build a business that has consistent deal flow, where you can repeatedly and predictably buy house flips, predict the amount of money you're going to make for the year, and what kind of focus and actual effort and volume that takes, and how you can do it honestly without even spending money, which I think is where a lot of people kind of get lost in the industry.00;00;52;19 - 00;01;18;08UnknownYeah, everybody thinks that you need to spend money on multiple marketing channels. And at the end of this episode, I think we'll be able to talk about at least one specific method that they can use. That's not going to cost any money. Yeah, not a dollar. And I think this particular method is the most powerful thing a house flipper can do in their business to scale to ten, 20, or even 30 flips a year.00;01;18;11 - 00;01;42;12UnknownYeah. How many how many deals do we have come into our inbox just in the last couple of weeks, would you say? I think we're getting between 10 to 20 quality off market deals at least a day in our inbox and some days even more. And for anybody listening to this podcast, I think we do this training. That's probably the most incredible training on how to build an actual system around this.00;01;42;12 - 00;01;58;02UnknownWe call it the black box method. One click a link. You should grab that right now. It costs less than going out to dinner for two people, so you have to get in it. It's only four days. It's only four days and it's about an hour a day. I think it will be. I would I would ask this.00;01;58;05 - 00;02;15;15UnknownIs it worth spending what you'd spend on dinner and about an hour a day for four days, to be able to make multiple six figures in your business in the next year? I do it. I would do.00;02;15;17 - 00;02;34;14UnknownAll right. Welcome back to the Seven Figure Flipping podcast. Today we're going to dive into a home run marketing strategy. We don't have to spend a dollar. And you can build a predictable business around it. I'll be here with my guest and co-host Lindsay AKA also my partner in blackjack real estate, and we can't wait to dive in.00;02;34;17 - 00;03;02;00UnknownOkay, so when we look across the industry and some of the other business owners who are I feel like they get mired down. They're stuck looking. Guys. I'm sorry. You're okay. I'm. You're okay. You're not allowed dying here. So let's save that for later, okay? Let me get back. I mean, a lot a lot of people are, they they get stuck.00;03;02;00 - 00;03;31;23UnknownThey feel like I'm doing marketing, and it's not working for me, but it's working for other people. I'm either spending money or I'm cold calling myself to save money. And is that. Do they have to do that? Like, what is the key that we've seen be the most successful for people to not have to just waste a bunch of money without being able to actually predict the results, without being able to have to, like, get on the phone and call themselves.00;03;31;23 - 00;03;51;07UnknownSo like, what are their options, right? I mean, the first question they really need to ask themselves is, can I if I pay for the leads, can I care for them? Can I contact them in a reasonable amount of time? Can I do the follow up? Can I track my KPIs? Because if you can't do any of those things, spending marketing money on marketing is not for you yet.00;03;51;09 - 00;04;10;21UnknownInstead, there are a lot of free ways that you can get leads and make offers to be able to build up your pipeline and then get to a point where you might be able to add in more channels. Yeah, and I think, today, particularly in today's market, the cost to acquire a deal by spending money on marketing is rising.00;04;10;23 - 00;04;35;21UnknownUsed to be $2,500, even 5000. And today we're seeing $7,500, in some cases, $10,000 to acquire a deal. And the next part of this is a lot of these people think they're going to get into real estate and do wholesaling. If they're if you're new and listening to this, if you're going to get into real estate and spend money, $10,000 to get a contract, you're only going to make 15 or 18 grand per contract.00;04;35;21 - 00;04;57;06UnknownAs a wholesaler, you got to develop your toolset, right. So I don't think that you can do marketing and spend money if you don't have multiple access strategies. What do you feel like wholesaling is still a full on viable option without being able to do anything else? No. I think you need to do what the data tells you.00;04;57;08 - 00;05;27;08UnknownYou to what you said in 2020 for our costs in our own company, we were close to $10,000 per contract, and it wasn't sustainable. Wholesaling. If your average wholesale fee is like between 18 to $30,000. That that's tough. And, and there's challenges in certain areas to just even being able to move deals. So, I think you need to look at what is moving and what what exit strategy is making the most sense at that time.00;05;27;10 - 00;05;51;00UnknownWhen we made the pivots that we did, we move from wholesaling into flipping. We saw our cost per contract drop to about $3,500. That's a big difference. That that is a massive that is a massive difference. And the key is to be able to to not just do paid marketing and have really great sales, but also to have some free, some free opportunities.00;05;51;00 - 00;06;09;24UnknownSomebody else is already out there searching, and I'm talking to the house flippers right now who might be flipping a deal a quarter or a couple deals a month, or maybe a couple deals a quarter, and they're really looking to grow their business, and they say, well, I've been buying deals from wholesalers, but I don't ever see any good deals.00;06;09;24 - 00;06;26;15UnknownI hear that all the time. There's no good deals. I only get junk from wholesalers. I'm I'm always surprised at how many times when I ask, did you make an offer? The answer's usually no, because they look at it. They look at the price. They look at the deal quickly and they think, oh, I can't pay that and move on.00;06;26;20 - 00;06;44;24UnknownRight. And I feel like I have this conversation at least twice a week. And I say, well, what is your system around that? And they go, what do you mean by system? Like how do you decide which deals you're going to make an offer on? How many deals have you got today? How many deals have you got this week that have come into one central location?00;06;44;24 - 00;07;04;25UnknownHave you built a process and system around it that can be, position where you can put other people in place to allow you to go make offers on the all the best houses that come in. Instead of saying, this house is bad, this wholesaler doesn't know their numbers. And the answer to whether they have a system around it or to your point, they made an offer on it.00;07;04;25 - 00;07;21;12UnknownThey don't even know. Right? Right. And and the other thing too is like people say, well, I don't I don't have time to look through that many deals. And here's the thing. You don't have to be the person who's looking through that many deals, but you do have to take some time and identify what your actual buy boxes.00;07;21;16 - 00;07;46;02UnknownWhat are you looking to purchase? Where are you looking to purchase it? What types of deals do you want to see? And if you can do that, you can cut out your time tremendously and have somebody else go through those things for you. For sure. And it's systematic. It becomes it's not emotional, it becomes defined. It gives you the ability to do it in a way that it's objective and it becomes predictable, which I think is the most important part of this.00;07;46;02 - 00;08;08;26UnknownNow I want to tell a story about somebody who we both know is in our community, who has done a phenomenal job and scaled without spending any money on marketing, which just goes to prove that it's not deal flow isn't dead. Buying deals from wholesalers isn't dead. Your inconsistency and your inability to build a system around something is the reason you're not winning, right?00;08;08;28 - 00;08;27;28UnknownZero marketing spend should not mean zero deals, right? If you bring your marketing spend down to zero, it means it should not mean you're doing nothing. You should have a free marketing strategy and system put into place. That is how you build profit into your business. Now, when I think about Sarah, she's probably one of my favorite people.00;08;27;28 - 00;08;46;24UnknownShe comes into our community. She was and this is 2023. She was in Canada. She moved down to the United States. She's a mom. She's got kids. She's like, what am I going to do? I'm going to start flipping houses. She flips a couple houses before she finds us. They're like breakeven or maybe even lost a little bit of money.00;08;46;26 - 00;09;19;19UnknownShe joins our community and she she just falls in love with the black box method, which is what we teach her around the free marketing, strategy and system. And she literally goes from those two deals that were, like, lackluster at best, executed to black box strategy, does 20 deals over the next, like 12 to 18 months. And I remember her calling me in December of maybe 24 and saying, like, gosh, I have all these deals closing in, like the what's this U.S. tax thing about?00;09;19;19 - 00;09;41;22UnknownWhat am I going to do, with this money? So it was just really cool to see her not spend a dollar on marketing, but be able to scale her business to two flips a month, where she's netting gross profit per deal and her net her deal. It ends up being like, you know, 40, $50,000, right? In California, where a lot of people say you can't buy from wholesalers in California, it's too expensive.00;09;41;22 - 00;10;13;19UnknownYou can't do multiple deals. You can't. New and emerging investors won't have success there. And she proved that she can. Yeah. She she she proved that she can. Here's the other thing. The big obstacle for most people why most people fail at this is because they have the wrong mindset around it. Instead of seeing all these wholesalers who are out there chasing deals as extensions of your business and working collaboratively with them, they have a fixed mindset and they believe that these wholesalers are idiots.00;10;13;19 - 00;10;32;01UnknownThey don't know what they're doing, their prices are wrong. Instead of saying, how can I collaborate knowing that I have to offer what I have to offer, but I want to be. I want them to go find me deals for the prices that I can pay. Right. And I want to get in front of them and have conversations and build relationships.00;10;32;03 - 00;10;53;13UnknownIf they understand that you're going to be a trusted buyer, that you're going to show up on closing day, and let's just say you're a cash buyer, you you may, despite the price that you offer, be preferred over somebody else. That's an unknown. So the price of the deal doesn't really matter. Yeah. And it was it was cool to see, see Sarah come in with such an open mindset.00;10;53;13 - 00;11;22;24UnknownRight. So she starts off, she goes, gosh, I'm having a hard time finding deals. She gets one system in place, and now she's got a flood of deals and and she has the appropriate margins on those deals. And I mean like, what do you think changed emotionally or mentally for Sarah in that process? I think she saw what was possible because a common mistake that newer investors make is they think if they they make more narrow margins, 10 to 15,000, that everything will be okay.00;11;22;27 - 00;11;42;08UnknownThe problem with that is not everything in a flip goes as planned. And if it doesn't and your profit gets eaten up, then you're not going to make money. When she saw that it didn't really matter what the price was, the the numbers were the numbers. She should make her offer follow up and get the deals at the price she needed them.00;11;42;14 - 00;12;04;05UnknownYep. Even if things went wrong during the rehab, she could still be profitable. Yeah, that was huge for her. Yeah. Most definitely. And she just had such a like her. She wasn't operating from a position of scarcity, her margins, you know she. But a lot of these people think like analyzing deals is the problem. These wholesalers don't understand analyzing deals.00;12;04;08 - 00;12;34;06UnknownWell, the wholesalers aren't the problem. You're the problem because you're worried about what they're doing instead of just doing what you should be doing, which is offering based on the numbers that you have. And I think that's just a big hack. It seems so simple. But we saw it in practice with Sarah where she went from, I acquired two bad deals, not really knowing what I'm doing to putting a system in place, being able to acquire, you know, a couple deals a month over the next year, year and a half, which I think is really to your point, she wasn't worried also about what the wholesalers were going to make.00;12;34;06 - 00;12;54;24UnknownI hear this from people all the time. They get really bad out of shape about what a wholesaler is going to make, and they don't necessarily understand what a wholesaler goes through marketing, what that spend is, the relentless effort it takes to get that under contract, to manage the seller, to do all those things, just to get it across the finish line.00;12;54;26 - 00;13;17;19UnknownAnd if the numbers work for you and you're going to make money, it doesn't really matter what that other person makes. And she she also didn't care about that, which put her further ahead. The the coolest thing about Sarah was, is that she just came in as she followed the process beginning to end, and it produce results. If you're able to do that, you will get results.00;13;17;21 - 00;13;42;06UnknownAnd I and she did exactly that. Which, you know, I'm just so grateful to watch her succeed. The other I got a text message yesterday, actually. And, I love when people are so dialed in their system just in text me and you said, hey, I was getting a deal every 37 offers. And now in November, December, it's like I'm up to 100 offers, but I don't have a deal right now.00;13;42;09 - 00;14;02;01UnknownAnd I said, well, you know, that's actually not uncommon for Q4, where things kind of stall out between Thanksgiving and December. And I said, just look at the aggregate of the work you've put in over the past 6 to 12 months. And that average, that average is what you use to better predict your following year, following year.00;14;02;01 - 00;14;29;10UnknownBut Justin was a similar boat where he took this free strategy. He mastered it and mastered his margins and how he was offering and collaborating and then he added paid marketing on top of that to increase his margins even more. Right? Because your habits determine if you're going to meet your goals 100%. And if you're chasing five bad deals and you don't have enough volume inside of your funnel.00;14;29;10 - 00;14;50;17UnknownHowever, you're funneling deals to yourself like you're going to continue to chase five bad deals. But if you have 50 or hundreds of deals, your opportunity expands exponentially, right? And your business is going to change the minute that you see real volume. And here's here's here's some there's math behind all of this. This is the beauty of this.00;14;50;19 - 00;15;16;13UnknownSo when we look at marketing, last year, you and I did planning going into 2025. And we looked at one particular channel we were going to go, market to and serve the foreclosure market. We said it's going to take about 325 outbound messages, phone calls, phone calls or text to acquire, was it just phone calls?00;15;16;13 - 00;15;38;06UnknownIt was just phones. Okay. Just phone calls. During the 25 phone calls to get an appointment I believe. And we knew how many appointments had taken us to get a contract. It was going to be 25, 25 of these appointments to get a contract. And we predicted that we could do 22 deals. Based off of a certain call volume.00;15;38;09 - 00;15;59;21UnknownAnd of those 22 deals we could make about $40,000 a deal and we would do 1.1 million from that particular marketing channel. Right. And what have we done this year? We're on our 22nd deal. We just closed. We just closed. And in the pipeline, in the pipeline we have another three. And we we should hit 1.3 million this year.00;15;59;22 - 00;16;21;10UnknownYeah. From from that basically from that one channel, which I think is, it's literally predictable down to how many phone calls we have to make down the how many wholesalers we have to sell, everything we do we're doing with intention and we're measuring because if you what you measure is what you get results with, if you don't measure it, you can't get results.00;16;21;10 - 00;16;51;15UnknownAnd to get to that planning, those weren't guesstimates, right? So we started collecting data at the beginning of October and collected it through mid-December. So we had a really short runway of data and not a whole lot of success, by the way, at that point. And we said we are going to go, this is our annual plan. We are going to go hard on this the next 90 days, be rigidly, adherent to the process and see what the outcome is going to be.00;16;51;17 - 00;17;15;03UnknownIt exceeded our expectations. We became like so excited. We're like, oh my gosh, we're going to do double what we planned. And that's not what happened, right? We actually stayed right on target where we originally planned. And so I think when you when you start to see success and things start to look even better than you thought and that will happen, you have to kind of like manage the emotions a little bit.00;17;15;04 - 00;17;34;00UnknownAnd even it's a long game. Yeah, it's a long game. This year's been a little bit of a roller coaster. There's been months where things haven't turned out okay and then we've had great months afterwards. So even when you're following the process, you can't just stick to it. When it feels really good. You have to stick to it even when it doesn't.00;17;34;02 - 00;18;00;07UnknownYeah. And I think I think for anybody listening like a couple takeaways for me on this are, trust the data, measure the data, trust the process. Don't get too high or too low and under thing. Understand that things are measured over time, not over a week, not over a month, but over quarters and over. Over a year span to really understand if something worked the way you intended it to work.00;18;00;07 - 00;18;15;03UnknownAnd in our case, it started to look like it was working even better. And then by the end of the year, it all had kind of evened out to almost exactly what we said it would do. And with the data, if you if you don't know your data, if you don't know your numbers, you don't know your business.00;18;15;03 - 00;18;41;24UnknownAnd the times in which we had some challenges, it was a data problem. We didn't have enough opportunities to analyze. And when when we found that and corrected it, our deal flow went back up. So you consistently have to monitor your KPIs and make sure that you're on track. Yeah. And this is the this is this thing that separates amateurs from the pros and even folks we, we know doing, a good amount of business.00;18;41;24 - 00;19;13;28UnknownThey can be doing so much better, being way more profitable if they just track their data and they just measured what matters in their business. Now, I think for, people, if you're going to do one thing this week, you got to stop telling yourself that you can't work with wholesalers. You got to stop guessing. You have to start measuring and putting a system in place, and then auditing that system as you go so that you can create a predictable deal machine in your business.00;19;14;00 - 00;19;37;04UnknownYeah. And you can't be shy about making offers even when it's not the asking price. That doesn't matter. Making those offers. And then this big following up we, we did an experiment where we tracked wholesale deals in our market in Central Florida, and we tracked the amount of them that didn't actually close. How much more opportunity was out there?00;19;37;04 - 00;20;05;19UnknownWhat if those people received multiple offers and were we were able to work out something where they were then close able? So don't assume that because the asking price isn't what you want it to be, that you can't get the deal. Yeah, I think too many people defeat themselves at the price. Instead of simply asking a question. Now for people who are going to be reaching out, maybe to say to wholesalers or even real estate agents to make an offer at a price that's lower than they're asking for.00;20;05;19 - 00;20;27;03UnknownWhat kind of language? Like how would you approach that and what kind of language? What would you say to somebody when you know that your offer might be offensive? Right. I just start out by saying I the last thing I'd want to do is offend you with an offer. The way these numbers are working out for me, I'm not actually seeing the RV or maybe even the rehab price the way you have it listed here.00;20;27;05 - 00;20;54;06UnknownCould you maybe walk me through how these numbers came about? I also want to understand from the wholesalers perspective, what they were looking at. Their exit or their idea might be different than mine, and I might want to consider that. So I'm always open to learning. Then it gives me the opportunity because I've asked the question to explain how I'm looking at it and what my concerns are, and then ask them if they would be terribly offended if I made an offer that wasn't in line with what they were asking.00;20;54;09 - 00;21;11;03UnknownAnd once I've asked permission and you tell me, you give me permission to give you a lowball offer or a lower offer, it's very hard to be upset with that. Yeah. And would you do this over the phone? Would you do this via email? How would you do that? In those situations I would do it over the phone.00;21;11;03 - 00;21;32;00UnknownTypically I'm because I don't want my words to get misread. I don't want emotion put on words that doesn't exist. And I'm also trying to build a relationship, so I want them to hear that I'm authentic and that I'm putting my best foot forward. Also, I am cheering them on. If you have better offers, like 100%, you want to find me by taking them.00;21;32;00 - 00;21;49;11UnknownBut if something doesn't work out, I'm here. I'm a cash buyer. I can close quick. I'm not going to wait for hard money loan. Let me know. I'm happy to work with you. Yeah. And and would you follow up with an email? Absolutely. After the fact. And then also just give them a little bit of information about us, you know, like this is our website.00;21;49;11 - 00;22;06;25UnknownThis is who I am. This is my buy box. These are the areas I operate. And if you ever see something like this, let me know. I was at the gym this morning and this guy, his name's Mike, he has a shirt on and it says it basically says like I do real estate with his number on it.00;22;06;27 - 00;22;20;21UnknownI was like, oh, that's really cool. So I walk up to Mike and I go, Mike, what do you do in real estate? So I'm a real estate agent with Caldwell Banker. I said, oh, awesome, I'm a cash buyer. I buy junky houses that you probably don't want to list on the MLS. I said, here's the deal, Mike.00;22;20;23 - 00;22;34;08UnknownIf you find a house that you think, man, I really wouldn't want to listen to, it needs to be fixed up. How about you bring that house to me and I'll buy it, and then I'll let you list at once. It's beautiful. I'm fixed up. And Mike was, like, super excited to take my phone number down. Yeah, I mean, why would you pass it up?00;22;34;08 - 00;23;13;04UnknownCost me nothing in marketing, right? As Mike brings me one deal that I make, 50 or 60 or 70 or 80 grand on like that one conversation. Right. That took me 30s is worth 80 grand for sure. Kudos to Mike for advertising himself. Still not sure. I thought it was super awesome. Okay, so for anybody today, if you're lucky enough to be listening to this, I really, really encourage you to check out what we're going to be doing on the black Box method training, because I'm going to give you our exact system and how we are going and acquiring deals and a predictable way without spending a dollar on marketing.00;23;13;11 - 00;23;40;12UnknownAnd honestly, it's only four days long. It's less than $9 a day to be there. It's $27 to attend the training. It's just enough money to make sure you have skin in the game, and you show up so that you actually take something away and do something good for your business. And I'd love to see you there. You just click the link in the description and get some deals, make it predictable, and actually make some profit margin in your business.00;23;40;15 - 00;23;52;25UnknownHey, thanks for listening. Today's episode. Please check out the link in the description. Leave us a review. Share this with a friend and I'll see you on the next one. That's it. That's what I know. Perfect. Okay. That's perfect.
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