Get The Deal Without Asking For It, Get A VA Even If You Have Zero Deals? Working With Private Equity

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Welcome To The Business Of Wholesaling Newsletter!

Every week, we’ll be sending you strategies, tactics, and tools used by successful wholesalers and we’ll cover any important market insights and news in the industry.

Here’s what we got for you today:

• Get The Deal Without Asking For It

• Get A VA Even If You Have Zero Deals?

• Working With Private Equity

Get The Deal Without Asking For It

Can you get the deal without asking for the deal?

This is the method used by Oren Klaff, author of Pitch Anything and Flip The Script, when he helps his clients raise fundraising.

He calls it the “Buyer’s Formula”. Essentially, he’s creating a frame for the prospect to evaluate the deal he’s proposing. And the boundaries he sets allow the prospect to focus and come to a decision on whether or not the deal is right for them.

So here’s Oren Klaff’s 7-Step Buyer’s Formula.

1. Introduce yourself as the expert

Prospects need to know why they should listen to you before you even go into the pitch. So casually throwing in things like how you’ve helped sell similar houses in the neighborhood or how you’ve helped X number of homeowners sell their houses are good things to mention early on.

2. Outline ways to fail

Next, create boundaries for the offer by highlighting ways the prospect can fail.

In our case, we don’t want the buyer to go the traditional route of listing their property. If they have been considering going with an agent, this is your opportunity to bring up the cons of listing on MLS and all the other third parties that need to get involved.

3. Highlight counterintuitive ways to fail

Your job here is to point out traps or false beliefs that he or she believes. Teach them at least one valuable insight.

If you’re able to help your prospect understand an insight, it makes them feel more in control and feel more confident in making an informed decision. 

4. List obvious hacks

This one is pretty straightforward. Tell your prospect what actions he or she should take to get started. 

5. Less obvious hacks

Now you can show off and remind your prospect why you’re the expert. Tell them the information they wouldn’t normally know unless they’ve been in your shoes and have done multiple deals.

6. Hand over autonomy

This is where it sounds counterintuitive. But you must detach from the outcome. Remove all neediness. You’ve given them all the information they would need, and now it’s their choice.

7. Redirect to the keep buyer in “bounds”

Now you should be at the point where your buyer brings up objections. Let them express their concerns. But make sure they stay within the frame of your conversation.

As we said before, it’s a good idea to bring up flaws in your offer before your buyer does. This builds trust and reinforces you as the expert.

Get A VA Even If You Have Zero Deals?

oes it make sense to get a VA even if you’re still working on your first deal?

Doug Beck stopped by the Business of Wholesaling podcast and brought this topic up.

First off, we know how essential a team is to scaling your wholesaling business. But how early is too early to get your first team member?

Doug says it makes sense even in the very beginning. His reasoning is that most people start this business as a side thing. They’re probably working a full-time job or involved in some other business.

And we all know how many moving parts are involved in the day-to-day. So assuming you haven’t figured out how to clone yourself or slow down time…

The only way you can add more time is via delegation. From Doug’s perspective, if you can get a good VA for $4/hour, you can save 20 hours a week for only $80. 

If you think about it, it’s nearly impossible to not be profitable on that investment. 

That doesn’t mean you’ll be guaranteed to find a deal… but let’s say your first deal was $3200 net profit. To break even means that you would have to go 40 weeks without finding a deal.

And if you haven’t found a deal for that long… well, there are probably some bigger issues or you should’ve fired that VA 37 weeks ago. 

Doug was able to scale his company to 7 figures in revenue per year with the help of VAs, so he appreciates the value of VAs. 

Don’t underestimate the power of having someone working for you for 4 hours a day.

How Private Equity Can Supercharge Your Wholesaling Business

Imagine having a bank account, like a river that never runs dry.

No matter how much money you pull out or what you buy, there’s still more.

Wouldn’t that be nice?

Well, that is exactly what it feels like when you are working with a private equity firm.

No matter how many deals you bring their way or how much money they spend, they still keep buying.

It’s not like working with a local investor.

Local investors are like corner stores - friendly, and familiar, but with limited stock.

They run relatively small operations, have finite funds, and they take on one or maybe a handful of projects at a time

They fix them, then they flip them for a profit, but their reach is restricted.

Private equity firms, on the other hand, are like supermarket chains.

They run major operations, manage hundreds of millions if not billions of dollars, and are constantly hungry for as many investment opportunities as possible.

Their appetite for deals is insatiable.

But there’s one problem.

While private equity firms have a Scrooge McDuck vault of capital and established systems for allocating it, what they lack is deal flow.

They need more high-quality properties to invest in and more opportunities to spend money.

You as a wholesaler have a perfect solution to their problem.

Not only do you have established systems for generating and qualifying deals, but you are an expert at sourcing valuable investment opportunities.

This creates a perfect synergy.

It streamlines the disposition process, puts more money in your pocket, and at the same time solves their supply issue.

It’s a win-win scenario.

Thanks for reading this week’s issue of the Business of Wholesaling. 

We’ll be back next week with more marketing & sales strategies, market insights, and other advice you can use to grow your wholesaling business. 

See you next week.

Team Business of Wholesaling