Episode #1 – Hello
Welcome to EarlToms podcast. Since this is the first episode, what we’re going do is say hello and kind of give you a background and things we hope to accomplish and things that you can expect from us. This is not going be a polished podcast by any means, since it’s the 1st one but hopefully you’ll stick with us long enough to understand that what we’re doing is showing you how to turn your hobby of wholesaling into a business that successful down the road so that start listening.
Let’s give a little background who we are. We’re a website that is basically designed to show you the ways that you can turn your business, actually your hobby into a business with different things that you should be doing instead of what you are doing. So when you go to the website, we’ll have things on there to help you. You’ll know where to run ads, how to run ads. If you do mailers, how you should be doing your mailers and things like that. If you’ve got a template using, like investorcarrot, something like that, are you actually in control of your business? So what we did is we started the website about two years ago to try to give some information to the wholesalers out there instead of kind of going and listen to this guru say, do whatever and then you sit there and $5000 later and go, I don’t have any deals. How do I get started? I thought I was doing it the right way. But yet nothing is being shown in my bank account as far as profit because all you seem to do in the very beginning, is spend money without making any money. So what I see a lot of wholesalers out there say is I don’t have any any money. How can I get into the business without any money?
Because a lot of these different gurus will say, you can do this without your own money and to an extent you can, but you’re never gonna be successful without actually spending some money. It’s the same as any other business. In order for a business to be successful, you have to have revenue coming in. You have to be making money or you can’t keep the doors open. So that’s why we started the website a couple of years ago, and now what we’ve decided to do is just kind of talked to you a little bit, you know, maybe 10-15 minutes every time give you some examples, give you some things to do that will actually benefit you instead of doing recycled information that everyone else is doing but are having limited results. That’s what we’re hoping to accomplish out of this and one of the biggest things that I that I see over time are people that want to be successful that are just getting started or they’ve been in the business for a little while and they’re just kind of treading water. They can’t seem to get ahead. That’s really the main reason that we started. This is trying to help you turn your hobby into an actual business.
If you don’t treat what you’re doing as a business, you will never be successful. So when you follow everybody that wants to go to an investor meeting and talk to different wholesalers and things like that. That actually can be a good thing, but you’re always splitting your money. You’re always at the mercy of someone else, and I don’t know any successful business out there that I mean, you take Amazon, for example, the post office decided to tell Amazon, you know, we might raise your rates. So what Amazon started to is invest in themselves, and they’ve actually seen their profits go up. They needed it when they first started out but to sustain the business, they had to control their own revenue and their ability to make money. So whether it’s running Google ads, Facebook ads, doing mailers, cold calling, all these different things over the over the time, we’re gonna trying to educate the wholesaler on what actually works, not buy into the next fad – next trendy idea that some somebody said works because we’ve tried all of these things and we will give you the results of what actually worked, what didn’t work and let you decide for yourself over time.
What we will do is we’ll actually get to the point where we’ll let new wholesalers experience wholesaling. We’ll have conversations with them and let them say, Hey, I’ve got this issue and we’ll talk through it if we have, you know, wholesalers call in and say, Hey, I need to sell my house. We may record you know, those conversations and see how we overcome certain things with a sailor to be able to get the deal. We actually made record some of the conversations that we have with buyers so that when a buyer says, you know, this house is only worth $150,000 – How do you overcome that when the house is actually, $200,000 or better. What we’re going to help you with are these objections and things to overcome. Basically, you’ll be able to go for making nothing wondering how you’re gonna survive in this business, to having a $50,000 – $100,000 month so that you can turn around and reinvest.
Start a business. Hire employees and do these other things even if you want to do it virtually or in your own backyard in the city where you are. We’re going to try to help you not be the next guru. What we’re gonna do is try to help you become the go to person in your area. So if even if you are doing something virtually by the time we’re finished, you should be able to be that go to person and that’s gonna include, all the advertising, how to overcome objections with sellers and buyers. One of the things right now that is starting to become popular is SEO. If you haven’t done SEO in the past, that is a fixed rate every single month of how to get leads, because what you don’t have nine out of 10 times is a deal problem. What you do have is a lead problem. So if you’re not actually turning your company – your hobby into a marketing business than you are functioning in the wrong capacity, because the only way that you get leads is through marketing. You have to go through the channels that are cost effective to have multiple leads, multiple inspections a day to be to play the numbers game and then wind up having enough money at the end of the month to pay your bills and to reinvest the marketing aspect of it for the next month. So what we’re going to show you is how to boot strap your company and what bootstrap means is, you spend the necessity, you don’t overspend. You don’t throw something against the wall to see if it sticks. The next person saying cold calling is working so everyone starts doing it. We did it and we still do it. But we don’t have the results like we do with other marketing channels. The leads that come in that wind up being what I call sellable deals cost more per lead. What is a sellable deal? It means you only get a house under contract that you can sell.
Some people say put every deal under contract but that’s going to give you a bad reputation. You’re gonna stress yourself out, and you’re going to spend your wheels because you’re never gonna maximize what your business could be doing. So, for example, last year we closed about 15 deals in a mid-major market that has some attention nationwide. We get some wholesalers and investors from out of state trying to come in and get our deals. Well, that’s fine. Let them have all of the $2,500 – $5,000 deals. Don’t worry yourself with those, because what you’re actually looking for are the deals that you can make one deal a month and pay your bills and have enough to sustain you for the next month. And you keep that revolving, and that will wind up putting enough money in the bank to where you can actually create a business. So what we do instead of going and getting the $2,500 – $5,000 deals, we don’t pay attention to those. We let the other wholesalers have those because while they’re out, they’re focused on the small amounts. We’re out there getting the deals that we can actually get closed. We have room to negotiate when a buyer shows up, instead of basically being able to market something at $50,000 when you’ve got it under contract at $45,000 so any time a buyer comes in and says, I’ll give you $46,000 you didn’t make any money with the time and money you spent to get that lead. By the time it’s closed, you didn’t make any money. So over the last year, we had over $200,000 a year in this market by doing minimal deals because we let the other wholesalers go and focus on those small deals. You can make money doing those smaller deals. I’m not saying pass on those every time but what you want to do is not spend more time and more money on small deals. Your focus should be on deals that could potentially close.
Unfortunately there’s no real guarantee that a deal will close because anything can happen in Real Estate. So when you go when you look at it and you’re analyzing a deal, you’re looking at the at the ARV, you have to understand. Hey, can I get this? Is it gonna be worth it? You’ve got to get to the point where you understand rehab cost and how you can overcome an objection with a seller. What their actual motivation is, how you can present that to the seller? If you don’t sell it to me, what are you going to wind up doing with it? Well, I will sell it retail through a real estate agent. Okay, you’re going to wind up paying agent commission closing cost and no guarantee that the loan’s going to go through with the condition that the house is in. So do you want go through that? You know, I hope that you get your house sold or would you like a solution today? That is basically the same money as what you would put in the bank. There are things that you’ve got to be able to explain to a seller in a way that’s not offensive to them. Even though the offer might be insulting. You have a way of presenting a solution to the seller, the homeowner that lets them trust you, give you the deal because what winds up happening is in every deal, the homeowner will not sign a contract with someone unless they actually trust them. So when people go in and say, I’ll give you full retail price, this homeowner may sign that because that’s giving them the most money. But you basically have no guarantee to sell that. The likelihood is that you won’t sell it.
So now that seller is going to go to Google or go to Yelp. They going to give you a one star review. So now every other time a seller shows up and says, Hey, I want to sell my house too, because most of them will find you online. Now they see those reviews attached to it. Now you won’t get that deal, but when you go for the deals that you can get closed with a buyer and you ask your seller for review, you’ll get a five star review. We’re the only company in our market with a five star review across the board online. The reason is because we deliver what we say we’re going to do. So what I’m trying to get across to everyone that’s going listen to this is how to boot strap your business in the beginning without a lot of money, but still get you deals, take you through the school of hard knocks because your first deals are going to be very difficult.
You’re not going to know a lot about wholesaling Real Estate, but we will give you ways of getting deals so that you can actually be successful. It may not be in the first month, it may not be in the 1st 6 months. It may take you two years to be able to say I actually have money in the bank. Now I can go and hire somebody to handle my calls. Whether it be a VA or somebody actually in the office, that’s completely up to you. It depends on what you actually need and what you’re willing to pay. By the time you go through the process, if you follow what’s being said to you then you should have the money in the bank to be able to actually call what you have a business, not a hobby. So when we go through all this, you’ll get the actual truth.
You don’t have to spend more money with this because we’re not asking you for any money. Everything on EarlToms has always been free other than certain things, because those are services that we can offer because we’ve been there, done that. We’ve had the trial and error. We’ve learned what worked. We’ve learned what doesn’t work. So if we have AdWords, Facebook ads, deal analyzers, those kind of things, it’s because they work. It’s not because we’re just trying to sell you something. 99% of the things on EarlToms.com is free. So if you decide to spend money on it – That’s great. If you don’t, that’s great, too. We want to educate you, help you and that’s it.
So with that said, I appreciate you listening to the first episode. These will get better. And hopefully as you listen, you’ll start increasing your profit so that you can actually turn what you call a hobby now into a business that will give you the life that you were wanting to have. Thank you for listening to the first episode of EarlToms podcast. We’ll see you soon.