In this episode, David Dodge and Mike Slane discuss the importance of 3 pillars in Real Estate which are Marketing, Making Offers, and Following Up. To learn more about these 3 pillars check this episode!
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David: The three pillars of wholesaling real estate. That's it guys, that's it. There's three things that you need to get good at and you need to be consistent with.
Mike: It's true. It's pretty simple business.
David: I like to call them the three pillars.
Mike: No, I like that, I like that. You really jumped on the three pillar thing.
David: I don't know why I coined that Mike, it just sounds-
Mike: Hey, we need something. I like it, the three pillars of wholesaling baby.
David: Yeah, it sounds good, but really though look at these as like a stool. You have a three-legged stool, most stools are four legs but let's just hypothetically think of the three-legged stool.
Mike: Did they always have four legs for the most part? I feel like they used to have three.
David: I feel like they did too.
Mike: Because maybe it was easier to build it.
David: I think that one- there must have been a big movement where they-
Mike: Well if you think about it, so like chair building is really difficult is my understanding like for a craftsman or a woodworker, like a chair has to be really just sort of perfect, like it has to all be level and balanced and all that.
David: And sturdy, yeah.
Mike: And sturdy, exactly. So, I'm pretty confident that stools used to have three because it was easier to slap three legs on cuz no matter how long those three legs are, they're always going to touch the ground.
David: Oh, I like that.
Mike: Whereas if you have four, you're gonna get a lot of wobble if they're not perfect, so I think- again, maybe I'm making shit up.
David: Imagine the marketing pitch of the guy that created the four-legged stool.
Mike: Yeah, it's like think how- yeah, this is so much more solid, you know.
David: Got to be like yeah, it's a precision, hahaha.
Mike: Precision engineered stool.
David: Well, back to the three-legged stool though, think of it this way guys, there's three legs to a stool and they're all three important. If you take away one of any of those three, the stool can no longer stand, it's going to fall down. So, there's three pillars or three legs to the stool when it comes to wholesaling real estate and those are three basic things that you need to be consistent with. So, what are they? Number one, marketing to motivated sellers. You got to market to motivated sellers if you want to get leads in the door and do deals. Pillar number two, making offers. So, number one was marketing to motivated sellers. If you're not marketing to motivated sellers, you're not going to have any leads. Well, number two is making offers. If you're not making offers on those leads that are coming in, you're never going to have any inventory and you can't sell something you don't have so you got to have inventory to be successful at anything. Walmart could not be Walmart if you walked in and the shelves were empty. Inventory is so important, so you have to make offers, that's the only way to get it, unless you're joint venturing with other people neither here nor there. Pillar number three, following up. You market to motivated sellers to get leads, you make offers to turn a lead into a controlling property in your inventory and you follow up with the leads and/or the offers that fell apart every week, every month, every quarter until they sell it to you or somebody else. The importance of follow-up is so huge because 80 to 85% of the deals that we do and that most wholesalers do come a couple months later after initial contact due the follow-up. So, if you're not following up, yes you can still market to motivated sellers and make offers, but your business is going to fall apart because you're not converting as many of these leads that you're paying for as possible. Your cost per lead's gonna be through the roof.
Mike: That's good guys, cannot-
David: That's it. It's so simple.
Mike: The stool will not stand up without all three pillars, without all three, right.
David: It won't stand up, you gotta have those three things and you got to be consistent with all of those three things, otherwise-
Mike: Yeah, and the follow up is so important Dave, I was looking at our system just this morning and it was on Keokuk, the one we're buying for company hold, in the communications there was like 52 communications on there.
David: We're going there today.
Mike: Right, we are.
David: We're gonna record that, it's gonna be awesome.
Mike: Yeah, so literally every time we contacted that seller, our systems just flags it, timestamps it. There's like 50 of them, it's great.
Mike: So guys yeah, follow up. This is not a one-and-done thing. You're not- there's no one phone call, one appointment- closed.
David: Oh, how I wish it was.
Mike: Occasionally, but not-
David: It's not.
Mike: Very very rarely.
David: So guys, the point of this, this is going to be a really short episode but it's short for a reason, because there is no need to harp on all the things that are required to do deals, but there's three things that matter and that's really all there is to it. There's three things and they all matter equally, and they- and you have to be consistent with all of them. So again, you're talking about marketing to motivated sellers, getting leads in the door, making offers. If you don't make offers on those deals, you won't have anything to sell. This is not rocket science. You got to follow-up.
Mike: Yeah, I love it.
David: That's it, that's all there is to it. So, if you guys aren't doing deals, look- take a look at your stool. If you want to do more deals, take a look at the stool as well and see which of those three legs are short. They need to be equal, you can't have 30 minutes a day on follow up and the whole rest of the day on the other things. You got to focus on all of them consistently, anything you want to add?
Mike: No, it's great. I thought we talked about this already, but I liked this episode. Three pillars baby.
David: That's it.
Mike: Let's do it.
David: And that's it guys. Signing off.
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