The exact steps Greg Helbeck takes to wholesale a deal and absolutely push the boundaries of what he gets for it.
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Show NotesGreg Helbeck joined me this week on the Flipping Junkie podcast to share the exact steps he takes to wholesale a deal and absolutely push the boundaries of what he gets for it. This is truly fascinating and a game changer! You don’t want to miss what he had to say.
Listen in to find out the 6 reference points Greg uses for each motivated seller lead that helps him accurately determine whether there is a good likelihood of a deal.
We also discuss what it takes to increase the lead to deal conversion rate so you can do more deals with fewer leads. The conversation ended up going in a direction that was a shift in mindset we’ve never discussed before. This was a truly unique episode and I hope you have 30 minutes to listen in and benefit from it.
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Episode TranscriptionWEBVTT
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Danny Johnson: Alright hey Greg so glad to have you back on flipping junkie podcast thanks for joining me.
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Greg Helbeck: Danny it’s always fun to do these shows I love being a guest more than being a host and don’t tell why assistant that we’re still going to produce our show too.
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Danny Johnson: yeah I hear you man it’s uh it’s nice to be able to answer questions and not have to to think about what where the conversations going or what questions you know the audience might be thinking to themselves need to be answered, or whatever so yeah I get you on that.
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Danny Johnson: As well before before we we.
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Danny Johnson: sat down to record this we were talking about how you were doing bigger deals and you’re focused on conversions so let’s that’s that’s awesome because I think that’s a huge thing that a lot of investors aren’t so focused on.
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Danny Johnson: to their detriment, so why don’t you explain a little bit about why those things are so important to you.
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Greg Helbeck: yeah so i’ll talk about.
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Greg Helbeck: Bigger deal sizes first so a lot of people if you go on Facebook and you’re you know you’re on there for more than three minutes, I actually have a news feed eradicated now, so I don’t get lost in the sauce, but if you don’t have that you can get that for free on chrome.
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Greg Helbeck: everyone’s like I did 100 houses, I did 20 deal we got 15 contracts this month, which is all great stuff, but if you really like peel the layer back.
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Greg Helbeck: A lot of people are leaving lot of money on the table and they’re doing these little itty bitty mouse deals.
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Greg Helbeck: And that’s great i’d rather do that then do no deals, but at the same time, if you’re in an air, I mean really anywhere in the country now if you’re buying right which we’ll talk about with the conversions.
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Greg Helbeck: You can like double or triple the your deal size, on the same House if you just know how to maximize the profit, whether you’re wholesaling which we can get into or if you’re taking a deal down.
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Greg Helbeck: and doing construction or just doing a wholesale deal, you can make more money without having to necessarily work that much harder.
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Greg Helbeck: So, for example in our business our average wholesale deals around 30 grand you know, sometimes we’ll do deals that are 70 grand and sometimes we’ll do deals that are you know 15.
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Greg Helbeck: But normally it’s about 30 grand right and a big big reason for that I will say is our market is expensive so New York is insane San Diego is even crazier.
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Greg Helbeck: So the ARV is is is going to be higher, ultimately, but we can you can still do this in areas like San Antonio or Houston or wherever, where it is a little cheaper, you can still do those types of deals so.
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Greg Helbeck: We want me to get into like my my deal maximization strategy that i’ve learned from others I didn’t invent this at all, but i’m doing this alone will absolutely blow your profits through the roof.
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Danny Johnson: nope nope don’t want to share that that’s just.
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Greg Helbeck: For me i’ve secret.
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Greg Helbeck: A ball for the paywall yeah yeah i’m just kidding yeah so yeah let’s uh.
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Danny Johnson: yeah because I want to find out about that, and then you know after that kind of dig into.
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Danny Johnson: With because my first thought is okay, a more expensive markets, of course, the profit margin is good, I mean the the amount of profit, should be a lot higher because of the risk is higher, the amount of investment is more.
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Danny Johnson: And I want to talk about how that.
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Danny Johnson: How that is possible and markets like mine and San Antonio and other ones in between so.
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Greg Helbeck: yeah for sure so we’ll get into that, let me just cover the system that we have, where we will maximize our wholesale deals So the first thing is this.
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Greg Helbeck: it’s supply and demand, so there are deals, I will say this i’ll just go with disclaimer there are sometimes if the seller is really tough.
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Greg Helbeck: And you know might be in an area that not a lot of people want to buy in if you have less buyers right who are remotely interested on the initial communication.
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Greg Helbeck: it’s going to be a little bit harder to do this, but i’m saying let’s say you have a regular deal in a in an area that has solid demand and you’re not like dealing with a property in the middle of the woods.
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Greg Helbeck: i’ll just tell you an example and how we did this last week so.
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Greg Helbeck: I got a property brought to me this is from another investor he’s like I want you to wholesale this because I know that you know what you’re doing, and you guys have a system set up.
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Greg Helbeck: And I said absolutely let’s jv this thing i’ll take it from here and we’ll we’ll Max this thing out.
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Greg Helbeck: So the first thing I did was I sent out an email to my list, and I, this is the first key point to sending this email.
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Greg Helbeck: If you know it’s a hot deal, and you know it’s in an area where there’s there’s a lot of investor activity, I on purpose price the property.
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Greg Helbeck: Cheap because what I want to do is, I want to drive up the demand of people responding to that email.
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Greg Helbeck: So, then, I can get you know, the next step established which is basically taking the people who respond from that email or the text or whatever.
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Greg Helbeck: taking them and then we parse them out and we stick them into a separate database, where we have our process, so we have our general pool of prospects for buyers and then we have our pool of prospects for the subject property.
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Greg Helbeck: And then, once we have our pool of buyers for that subject property on this one we had like 15 people who are like literally begging for the property.
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Greg Helbeck: were to assume the deposit check to like they’re trying to like you know get the deal, without going through our process so i’m like hold your horses, this is how it’s gonna work.
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Greg Helbeck: And when you have something that is scarce, which is a smoking deal right that someone is going to make a lot of money on.
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Greg Helbeck: You got to tell the buyers how you’re communicating so I communicated the buyers I said listen, we have a lot of demand for this property you obviously know it’s a killer deal, especially at the number that we put it out at.
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Greg Helbeck: Most likely, this is going to go to highest and best, and I know it sucks for you i’ve been in that situation before.
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Greg Helbeck: But due to the demand we’re going to go to a highest and best scenario and before we do that i’m going to set up a one time showing this is the key here a one time showing.
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Greg Helbeck: The seller will be there are our partner Taylor will be there he’s the one who’s conducting traffic, because I don’t live in New York.
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Greg Helbeck: And you’re going to be able to go and see this property you’re going to not speak to it, we don’t say a word to the seller, or else you’re blacklisted.
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Greg Helbeck: And you’re going to walk around any inspections, you want to do be my guest you’ll have 45 minutes in the property.
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Greg Helbeck: When you’re done with that one time showing you’re going to see other buyers there and it’s going to get competitive side you’re going to have to put your best foot forward with an offer.
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Greg Helbeck: When you’re done seeing the property our bet our offers are going to be do the next day at 3pm Eastern.
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Greg Helbeck: So I told the buyers in advance, and this is like a sales tactic it’s the upfront contract, this is exactly how we’re going to play ball.
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Greg Helbeck: If you want to play ball this way we’d love to have you be in the in the bidding system if you don’t want to do that I get it no pressure.
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Greg Helbeck: And we’ll go from there, and every single buyer is like yes, so we had 15 people in this House and immediately when people left that property, I was just you know 151 60 you know and everyone was like just just.
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Greg Helbeck: We put the property out for 139 on purpose and all the sudden.
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Greg Helbeck: You know it started rising rising rising, so I started processing those offers at that point they’re starting to come in the deadline was like I think it was in like two hours from there.
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Greg Helbeck: And if we got down to our top three so at that point, I told all the people who were not high enough that unfortunately this is, you know going to the top three people who are way higher than you.
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Greg Helbeck: And they were okay with that and I actually got on the phone with the top three I still sit in this position seat in my company so i’m the one selling the properties.
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Greg Helbeck: Like at least through the phone i’m not going there but i’m the one dealing with all the communication.
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Greg Helbeck: And I said hey you’re in the top three so I got on three separate phone calls with the buyers and I said listen.
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Greg Helbeck: it’s going to come down to a highest and best scenario, so I just want you to submit the absolute most you’re willing to pay for this property i’m not telling you what the other person’s offering you submit your highest and best offer.
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Greg Helbeck: And i’m going to simply make a business decision at three o’clock and it’s nothing against you personally.
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Greg Helbeck: With the demand on this property, this is the I have to do this, you know it’s it’s honestly my fiduciary responsibility to my team to do this, and they all understood.
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Greg Helbeck: And we literally got this property from 139 to 170,000 500.
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Greg Helbeck: Through an email right through creating the competition through creating the feeding frenzy to having them it’s all human psychology they want this property it’s scarce.
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Greg Helbeck: They see other people competing for and they know it’s a killer deal, even at 170 or 170 500.
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Greg Helbeck: We got everyone to raise their price and ultimately we’re in contract now with a buyer at 170,500 we’re buying the House for 100 and.
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Greg Helbeck: Either 100 to 110 it’s it’s going to depend on the mortgage balance but either way we’re going to make a lot of money and that deal.
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Greg Helbeck: I could have simply just said to one random buyer I know hey man would you buy this property, for one, you know 40 and yeah would have made money, they would have been great, but by doing it this way, which is uncomfortable which usually leads to some friction some tension.
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Greg Helbeck: were able to literally double the deal, without having to do another one right so that is how I like to do our wholesale deals when we have the right property in the right area, and we know that it’s going to most likely go gangbusters like every deal in San Diego pretty much this happens.
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Greg Helbeck: it’s uncomfortable number one and number two.
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Greg Helbeck: You have to be willing if you’re if you’re cool with your buyers you got to be willing to just be a straight up with like listen like this is it is what it is, I mean there’s one property there’s 10 buyers.
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Greg Helbeck: i’m going to have to do what’s best for us and we’re not going to do shady stuff we’re not going to like tell one buyer they’re buying it and then go ahead and tell them that their offer wasn’t good enough like I tell every buyer.
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Greg Helbeck: whoever’s offer I accept i’m going to do business with them so once they have my word that i’m selling them the property.
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Greg Helbeck: If 20 minutes later rolls by and someone else comes in 20 grand higher once I give that buyer my word my word is bond so i’m not going to take the higher offer once I give my word out.
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Greg Helbeck: The deal is is going to go down so because of that this is why i’m selecting the buyer at 3pm, this is the deadline this when you got to Max your offer out and once I make a decision nobody’s changing their mind.
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Greg Helbeck: And by doing that the buyers a they respect you and be they’re going to just straight up offer more money.
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Greg Helbeck: And the one deal, we would have made what 2530 on we’re going to make you know 60 on or whatever it is 5560 grand.
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Greg Helbeck: And it didn’t really take that much work, and it was the same property same seller same address same process.
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Greg Helbeck: double the money so there’s a lot there I kind of rambled for a minute obviously you can probably tell me my energy I love talking about this stuff because it just straight up puts more money in your pocket.
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Danny Johnson: Now I didn’t want to interrupt you because I wanted you to keep going because.
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Greg Helbeck: You know how to get me back.
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Danny Johnson: was excellent, that was a there’s so many things I love about that, and I think the biggest one is.
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Danny Johnson: You know the the the real thing there, and you emphasized is having you know just laying out the rules and the way it’s going to all go beforehand, because then.
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Danny Johnson: You know it doesn’t seem like you know, a slap in the face, or just like this whole like Oh, I thought I was going to get it and.
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Danny Johnson: yeah now this other stuff they’re playing games with me.
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Danny Johnson: yeah I knew ahead of time what was going to happen or likely to happen.
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Danny Johnson: And it’s just happening that way so it’s not such a.
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Danny Johnson: thing where you’re starting to feel like like adversarial right.
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Danny Johnson: Total them.
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Danny Johnson: Oh yeah that’s awesome I love it so much and.
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Danny Johnson: You know, it just it’s like back in the day before you know things when things were really hot back in like 2006 all the auctions people would call the houses and stuff.
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Danny Johnson: And you know it’s kind of the same thing you know but it’s not in person and just kind of like everybody knowing other people are bidding.
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Danny Johnson: yeah so.
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Danny Johnson: So people feel a little bit more comfortable maybe submitting those offers but man that’s that’s excellent stuff and, especially, because if you can do that well.
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Danny Johnson: And you know that there’s other investors in town that could benefit from that those jv wholesale deals where you’re not even having to find the deals and bring the extra value to them, but also profiting from it, I mean it’s huge.
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Greg Helbeck: Totally I say this to other investors in my market and I I say if you’re brand new.
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Greg Helbeck: You can obviously do whatever you want.
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Greg Helbeck: But I tell them I said, if you’re new and you don’t have experience, especially dealing with buyers i’ve dealt with hundreds and hundreds of buyers.
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Greg Helbeck: odds are you will most likely make more money after you split a deal with our company, then you would on your own.
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Greg Helbeck: Just from the lack of experience and then, when you watch how we do it, you can then do it on your own and do the same thing so.
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Greg Helbeck: The investors, the Ben Amos you don’t have to just do this on jv deals we do this with our own deals too, but when you have a system in place for doing this.
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Greg Helbeck: It becomes very easy to follow, like the first time I did this, I was literally peeing my pants like it was actually in San Diego I was like in the hood.
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Greg Helbeck: At this House, and there was 15 people in this like crack shack.
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Greg Helbeck: And all like the tenants outside were like looking at me like when this guy had his range Rover parked on the side of the crass it’s like getting dark out the hood and i’m like.
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Greg Helbeck: You know, saying a prayer but you know, I was uncomfortable and I ended up you know blowing that house out of the water too so like once you do it, you become like desensitized to it.
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Greg Helbeck: And it, you can you can just straight up make more money on the same lead and everyone always says oh it’s competitive out there it’s hard to get deals which is true and it’s true.
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Greg Helbeck: But if you can maximize the profit on your deals and do this in a way, where we don’t do this on every house, because sometimes it’s just a scenario where you just can’t do it, you can’t get side or the owners nuts.
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Greg Helbeck: But it’s all about the communication, if you can communicate this with the buyers communicate this with the sellers.
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Greg Helbeck: I didn’t mention that, too, by the way, I got to talk about that and minerals, this would build through the whole thing off.
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Greg Helbeck: When you can manage communication and have them both agree that that’s Okay, it makes it really simple, so let me just talk about how to set the stage with the seller, because this is.
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Danny Johnson: really important, I was gonna be my next question so you can yeah oh my gosh you can get yourself in hot water, if you don’t do that so.
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Greg Helbeck: Before this showing happen, I personally called the seller, with the other investor.
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Greg Helbeck: And I said, let me normally I don’t do this Brett would do this, but let me just call the seller, because I don’t I didn’t have a relationship with the seller like normally if it’s a deal we get Brett would tell me all about it and I kind of know.
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Greg Helbeck: But this one, I had no clue what the seller was like so I just let me sniff the seller up, so I called the seller.
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Greg Helbeck: And I said hey Mr seller, I just want to let you know I appreciate you letting letting us in later on today at 5pm I did this like three o’clock local time.
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Greg Helbeck: And I said just to set the stage it might get a little crazy here for 45 minutes there’s going to be a ton of people in here we’re going to have prospective buyers are probably gonna have some contractors.
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Greg Helbeck: And there’s going to be 10 or 15 people walking around your House and I just want to let you know it might be a little nuts, the benefit is that, after this meeting is over.
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Greg Helbeck: Maybe one more time we got to go and after that you’ll have your money and this thing will be all all said and done.
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Greg Helbeck: So I told the seller in advance there’s going to be buyers in the property there’s going to be contractors in the property which is true and true.
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Greg Helbeck: And I said it’s gonna be crazy it’s theirs it’s going to be a madhouse in your property and I just want to make sure that you’re okay with that, so we can have a smooth meeting today.
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Greg Helbeck: And if the seller wasn’t okay with that obviously I would have switched it up a little bit, and I would have been a little more strategic with the buyers.
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Greg Helbeck: But the souls are going all totally it’s fine it’s all good they can come in there it’s all good so like when there was 15 people in the House and it looked like it was a Congo wine going in and out of there, he was he knew exactly what to expect right, so there was no no drama.
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Danny Johnson: How often do you have sellers that are apprehensive about that I don’t want to happen.
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Greg Helbeck: I would say, probably like one out of one out of four maybe we’ll get a little sketchy about that, and when that happens it’s it’s like you go back to the buyers and said listen.
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Greg Helbeck: i’m only bringing two people in this House so you’re going to have to make an offer sight unseen and if the offer is appealing i’ll take you inside with one more person.
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Greg Helbeck: But due to the seller and due to access I can’t get 15 people in here so in order to qualify for this property you’re going to have to submit an offer, and we take literally hundreds of pictures.
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Greg Helbeck: And videos so like they pretty much know what they’re getting into.
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Greg Helbeck: But you know it’s all about setting the right expectations like if that seller told me hey no more than five people I would have respected them, and I would have said hey buyers, this is the deal we got five people.
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Greg Helbeck: You want to be in the top five we need highest and best right now and then, when you go in the property, you can confirm your numbers.
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Greg Helbeck: And a lot of the buyers in my market at least the good ones, they also wholesale so they know exactly what the deal is so they’re not like oh my God I can’t believe you’re doing this, you Greg you’re giving me all these good deals and now you’re like oh it’s like they wholesale to.
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Greg Helbeck: So they know exactly where i’m coming from.
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Greg Helbeck: And a lot of them are my personal friends so it’s like.
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Greg Helbeck: You know they they know the deal which is easier say it’s the same exact thing in San Diego like everyone pretty much knows each other out here so which is weird because it’s a huge city, but.
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Greg Helbeck: Anyway, small small investing community, but when you set the communication right with the buyer and the seller, and you have a property in an area where you know it’s going to go like crazy.
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Greg Helbeck: If you price it low on purpose that’s, the key to getting your email like response to shoot up because people are like.
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Greg Helbeck: You know when i’m checking email i’m looking at the thing for 15 seconds and if it’s something of interest i’ll respond if it’s not i’ll delete it.
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Greg Helbeck: If I see a property for like 140 in a certain zip code oh that sounds like a killer deal and then all of a sudden 450 other people saw the same thing and it triggers this massive response.
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Danny Johnson: yeah that’s in whenever you do things like that, if there’s a way to post that publicly somewhere somehow to be able to build a buyer’s list as well right, like all the people that aren’t already on your buyers list is there anything that you ever do like that to.
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Greg Helbeck: Try to build your buyers absolutely we there’s one way we do it is we go in Facebook groups and will say actually this is how I built My big database and San Diego is, I had a property in spring Valley, which is.
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Greg Helbeck: A little little sketchy area out like San Diego county but there’s a lot of investor activity and I went into Facebook it wasn’t even an investor group is a San Diego real estate professionals Facebook group is like 5000 people in there.
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Greg Helbeck: And I didn’t have it locked up yet, but I said hey I got a property in spring valley that i’m gonna be getting into escrow on in the next two weeks it’s going to be a killer deal it’s a two family.
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Greg Helbeck: And i’m going to look to sell the thing at a deep discount who’s interested 75 people responded to that Facebook posts and.
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Greg Helbeck: active campaign oh there we go right, the thing was sold like an hour later, once we got it under contract.
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Greg Helbeck: So post things like your activity like doesn’t have to be you can do a specific property I wouldn’t really put the address online that can get a little hairy depends on.
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Greg Helbeck: You can do that, but in our market you got to like have all these riders in the contract or whatever, but.
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Greg Helbeck: If you just put like hey I have an off market property i’m going to be getting involved in the next couple weeks is there any buyers who would be interested in that area i’d love to either partner with you or sell it to you.
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Greg Helbeck: And you get you can like kind of build your list in advance, and especially when you say where the property is like the zip code or the town or the city.
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Greg Helbeck: You can pre you know you can kind of pre fill that demand, so that when you get the property already know who you’re gonna probably sell to.
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Danny Johnson: yeah that’s awesome I love that idea.
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Danny Johnson: And then he was like for that for that one that you gave the example of just recently.
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Danny Johnson: What would you say, and I know this this isn’t The thing that caused it right or that you have to have this to have that kind of thing happened but Would you mind telling us what the size of that buyers list in New York, that you sent that to was.
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Greg Helbeck: it’s about 450 people.
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Greg Helbeck: Which which, like it’s a lot because there’s the people on that list are real, serious buyers but compared to some other people have like 45,000 people on their list.
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Greg Helbeck: I mean I don’t I don’t have that size of the list, because my market isn’t that big, ultimately, but I know the people on my list personally know me like they personally know who Greg ellerbeck is they know who velocity house fires is so when they see the email they know exactly.
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Greg Helbeck: Like who it’s from it’s not a bunch of like random daisy chain owners who are going to send it to their cousin who’s going to send it to their brother who’s going to assign it to some other knucklehead.
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Greg Helbeck: Like they’re people who are like no and a vetted and either have had a conversation with or they know that we’re doing business in that market so.
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Greg Helbeck: When we put a deal out to that list, I mean if it’s a deal will know right away we’ll get responses and we don’t get like we don’t get a lot of crazy knuckleheads to respond usually.
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Greg Helbeck: San Diego is very similar I have a list thing it’s like 80 people, but the people on that list, I personally know or.
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Danny Johnson: I saw quality over quantity yeah I mean you can set out to say I need a big buyers list and then all your efforts are doing.
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Danny Johnson: nothing but trying to get the number boosted for the number of people on this list you know, maybe that’s not such a good use of your time right like you can build a smaller one but build it more quality.
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Danny Johnson: And then have those interactions with people right so not just whenever you have deals to blast out, but maybe like send out something to just you know.
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Danny Johnson: Read the newsletter who you are like take my email seriously right.
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Greg Helbeck: yeah exactly and like that’s the thing I like about doing it, that the the with like the smaller list, I mean 400 people still like good, and these are like real buyers or agents who have buyers so.
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Greg Helbeck: yeah I mean it’s it’s it’s very engaged a very engaging list and.
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Greg Helbeck: A lot of them like personally know me right so so like they know that i’m not gonna you know send them some garbage deal, but you know is from some knucklehead.
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Greg Helbeck: You know, like I don’t just like there’s a lot of daisy chaining going on now, and I actually sometimes we will have scenarios where another investor can’t move their deal and then you’ll hit me up and there might be some overlap and I will put a.
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Greg Helbeck: humongous disclaimer on that email and i’ll say disclaimer if you’ve seen this property before I have permission from the other investor, we have a jv partnership sign and i’m helping them try to get their property sold as you can see per above the price is the same like so like.
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Greg Helbeck: I communicate so clearly, with the buyers like anything they could think of is already probably disclosed in my email so that doesn’t happen that often usually you know just.
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Danny Johnson: You know.
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Greg Helbeck: They can’t move their deal it’s probably not a deal.
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Greg Helbeck: Like quite frankly.
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Danny Johnson: This is all about real relationships and how you’re running your business.
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Danny Johnson: Right The fly by night and get rich quick kind of people don’t you do the things that you’re talking about during this episode, and so I think that thread kind of runs through it right it’s like.
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Danny Johnson: Being upfront with people about how things are going to go like what what’s going to happen, how it works right they trust you they want to play into it, because they see you’re putting it out there for what it is.
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Danny Johnson: And then, even in your communications with the deals that you’re you’re koji being or jv and you know, making that clear that when you see this stuff i’m not trying to.
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Danny Johnson: To to rip anybody off or or you know trick anybody into anything and so it’s all out here it’s all on the table it’s all right here.
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Greg Helbeck: Exactly and they know that and they know that we’re going to do what we say we’re going to do and.
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Greg Helbeck: That goes a long way in our business right, I mean there’s a lot of people who just.
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Greg Helbeck: They just don’t do what they say they’re going to do right and it’s the same thing with sellers which we’ll get into in a minute it’s like.
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Greg Helbeck: We give them an offer and it’s a real offer with no contingencies like we’re gonna close right, whether we wholesale it or not, we’re going to close like so it’s got to make sense for us for them.
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Greg Helbeck: But we’re not just going to put out some bogus offer and like roll the dice if we’re going to roll the dice there’s a contingency period and they know that there’s a chance we might walk away because they’re probably asking for too much.
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Greg Helbeck: So it’s all about communicating right, the better anyone can get a communicating.
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Greg Helbeck: The easier it’s going to be to go through the the day to day activities of your business because.
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Greg Helbeck: You just like kind of like debunk a lot of these landmines that will inevitably blow up if you don’t communicate properly and people know exactly what they’re getting into right it’s like when you’re selling a house.
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Greg Helbeck: And it’s you know, in a bad neighborhood or something at this properties in an area little rough I mean you can drive by and see yourself but.
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Greg Helbeck: don’t take my word for it go see it yourself and then make a decision, if the property is for you or not, and we do the same thing Rentals.
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Greg Helbeck: In a rough neighborhood and it please see the property before you decide to you know sign the lease I don’t want to get a call saying oh i’m scared to walk out to my car you knew going in advance what you’re getting into so communication is key.
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Danny Johnson: yeah that’s that’s really, really big I remember one time a lot like early in my career in this business in having a rental property.
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Danny Johnson: Where the people that moved in you know called me like the week after they moved in with my son just got jumped on the way home from school and it’s like.
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Danny Johnson: Oh boys.
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Danny Johnson: yeah you know I just felt horrible it’s like that you know they didn’t you know, and I didn’t I didn’t live there right, so I didn’t know that it was like you know that bad, but that did feel like really, really bad to hear but there’s nothing I can really do about it but.
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Greg Helbeck: Interesting tenants real quick with tennis i’ve had some horror stories for tenants like just absolute horror stories and like.
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Greg Helbeck: I always tell the tenants, because I, I will interact with them a little bit like if it’s like something that’s like like serious.
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Greg Helbeck: i’m always like listen if you’re not happy in the property i’m not going to force you to stay here i’ll give you your security deposit back keep the leave the property in decent shape.
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Greg Helbeck: And you can get out of there like I make the 10 like it’s not where it’s like.
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Greg Helbeck: If you’re not happy i’m not happy right and there’s so much demand for Rentals nowadays it’s like i’ll just get another tenant so.
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Greg Helbeck: That that happened with tenants before where there was like unmet expectations and educate more money back and said.
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Greg Helbeck: I don’t want you to be here on happy, you know, maybe i’m too, Nice and light with New York, though, like the law landlord was up there, this is not Texas it’s like you got a bad tenant you’re going to be six months to get them out.
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Danny Johnson: If you yeah yeah yeah that that makes it a lot easier.
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Danny Johnson: You happier for everybody right with that situation well we’re we’re we’re pretty far into it and I definitely want to make sure that we cover the the conversion, you know, lead to do conversion turning more of those leads into deals So what do you have for us about that.
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Greg Helbeck: yeah so there’s a few things that I want to mention on conversion, so I could talk about this for hours, the first thing I found this this actually happened in our.
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business.
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Greg Helbeck: Back in I think the winter know in the fall of 2020 we were running into a challenge, where.
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Greg Helbeck: we’re getting a lot of leads, but a lot of leads this work didn’t seem to be good leads, as I would say.
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Greg Helbeck: And I was like spending all this money on marketing getting the phone ring, how can this conversion like what’s going on here like i’ve studied sales I bought houses like what’s going on here.
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Greg Helbeck: So I started to like take a deep dive and I what I did was, I took the data from deals that i’ve closed.
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Greg Helbeck: And then I tried to like look through all the common factors on like, why did this person sell me their house at a discount like what What was their story, what was the condition like what was their timeline like.
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Greg Helbeck: And I found six things that were very interesting than made up a lot of these deals number one the seller when they call they had a real why for selling the House it wasn’t like i’m getting foreclosed tomorrow but it’s like.
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Greg Helbeck: i’m selling my house I don’t live there i’m relocating they had a story behind why they were so they were like what’s your offer.
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Greg Helbeck: Maybe it’s right price like that those people are most likely never going to sell their house to you at least anytime soon.
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Greg Helbeck: The second thing was the property was either vacant or there was like one unit that was vacant if it was like a duplex or some there’s some sort of like unoccupied scenario going on, so that’s two.
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Greg Helbeck: Three was at their timeline was either six months or less sometimes it was yesterday, sometimes it’s like hey I want to sell by the summer.
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Greg Helbeck: The fourth thing is that the property needed some updates like it just needed updates or it was a total disaster like there was there was a value add component to the property where it wasn’t turnkey.
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Greg Helbeck: The fifth thing is that there, this is like really specific for like San Diego in New York, because the markets are NUTS they’re.
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Greg Helbeck: they’re asking price was below zillow for some reason now we’re redfin whenever whatever you know tool you use but.
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Greg Helbeck: Right off the BAT they’re asking less than what zillow or redfin thinks and in recent San Diego when that happens you’re probably going to make money um and then the last thing was this is my favorite.
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Greg Helbeck: They didn’t want to list their house for some reason, like we talked about the real estate option we talked about listing it.
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Greg Helbeck: And they just didn’t want to list it for some reason, they just didn’t want to list it and they justified on the phone why they did not want to list their house, so what we started doing in our businesses, I saw that.
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Greg Helbeck: Literally every property I took my took my trailing 20 and i’m like all right, these are 20 actual deals we’ve purchased Let me take a look at like the commonalities here.
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Greg Helbeck: And every single seller without question check it least three of those boxes, if not four or five, sometimes even six.
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Greg Helbeck: So what we started doing in our business on the conversion side is we started tightening up tightening up the criteria of what a real lead was in our business.
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Greg Helbeck: And what we did to to kind of make that tangible, is that we had every prospect when they came through the funnel if they didn’t check two boxes at minimum.
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Greg Helbeck: They weren’t deemed a lead in our company for our kpis they were a prospect, they were someone in our system.
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Greg Helbeck: But they were not we call it a net lead in our business and that there’s a gross lead and there’s a netsuite.
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Greg Helbeck: To be in that lead you gotta check two boxes, if not more so we started getting a little more tight with our criteria.
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Greg Helbeck: And then, when it comes to the actual converse so when you do that you’re going to get quote unquote less leads but you’re going to get better leads, which is going to work you’re going to convert higher because they’re going to.
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Greg Helbeck: kind of fit that Avatar easier and you can almost disqualify prospects just by using that system by the fact that they.
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Greg Helbeck: Have no reason for selling it’s in good shape there’s no timeline they’re just looking for an offer, because he cold call them on a Tuesday night.
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Greg Helbeck: they’re probably not selling at a discount right at least right now, maybe their situation will change, which you know follow up is important.
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Greg Helbeck: So we started doing that, which is a huge pillar and the second thing that we love to do with sellers when it comes to conversion is getting commitments from sellers in advance, just like I said, with the buyers.
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Greg Helbeck: You know a lot of sellers they do want to sell they are, they have a problem, we can solve.
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Greg Helbeck: But sellers are very flaky they’re very flaky people they’re not used to making commitments for the most part i’m not trying to generalize every seller here, but most of them.
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Greg Helbeck: they’re very tough of committing to things that’s why they might be selling their house at a discount or they might be some unfortunate situation.
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Greg Helbeck: And you know that that’s just the reality of our business so when you get commitments from sellers in advance.
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Greg Helbeck: It makes the sales process, a lot more efficient it’s not going to guarantee you’re going to get every deal.
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Greg Helbeck: But you’re going to have an agenda set with a seller where there’s specific next steps that are going to going to happen after we get off the phone or after we meet at their house or whatever the case, might be so i’ll give you an example.
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Greg Helbeck: We have a lot of deals we get where it straight up comes down to a negotiation it we go through the sales process we find out their pain find out the deal killers we find out all the things that are necessary to to see if there are serious fit.
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Greg Helbeck: And we start negotiating and then we’re negotiating over the House where you know they have a number of we have a number.
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Greg Helbeck: And what i’ve found that is when you have a seller who’s finally going to sell you a property at a number that makes sense for them and for you.
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Greg Helbeck: If you don’t set commitments, what happens is you’ll get a yes, but then they’ll coast you they’ll go ignore your docusign the Attorney won’t respond if you’re in New York, so you get these false sense of securities.
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Greg Helbeck: And the seller, the seller is never 100% committed to selling you the property, so what we do in our business and Brett on my team is an absolute beast at this.
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Greg Helbeck: He goes to the seller, and he says it sounds like you’re absolutely set at getting you know to 25 for your property Is that correct yes.
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Greg Helbeck: If we could do to 25 we don’t know yet we still have to run a numbers, but if we could do the 225 are you in a situation where you could either a give us a yes or no, and if it’s a no that’s fine or.
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Greg Helbeck: If, could you just give us a straight up yes and move forward if we could do 25 so we kind of like see where they’re at like they might want it, we might go, yes or no if they’re a little sketchy.
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Greg Helbeck: But if they’re like hot to trot and they’re going to sell their house, we will kind of go a little back and forth them so listen.
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Greg Helbeck: If you can get the to 25 if we tell you, we can pay to 25 are you committed to taking the next step with us, assuming you’re comfortable everything.
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Greg Helbeck: So we get them before we ever make an offer like we kind of loosely let them know that’s probably where we’re going to be at.
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Greg Helbeck: But before we actually finalize a number for that prospect, we get a commitment from them in advance that they’re either going to move forward or they’re going to give us a yes or no decision.
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Greg Helbeck: That way, at the end of the phone call where they’re ending it with a know and we’re going to follow up and be as helpful as we can.
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Greg Helbeck: or we’re going to end that phone call with a contract signed and that way there’s no confusion right they’re not like.
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Greg Helbeck: Oh well, yeah I want to sell for 25 but I got to talk to my wife I got to talk to my account I got to talk to my friends like no.
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Greg Helbeck: you’re going to give us a yes or no, or you’re just going to commit to giving us, yes, if you’re comfortable we try to never do the pressure thing doesn’t really work that well.
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Greg Helbeck: But at that end of the call the seller knows they’re gonna have to give you a commitment and usually it’s regarding the number, they want that happens to make sense for us, and it does that that makes sense i’m kind of rambling here.
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Greg Helbeck: But like we do that in our business and it gets us a lot of deals because it we just hold them accountable to giving us some sort of an answer, whether it’s a yes or no.
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Danny Johnson: yeah, no, no, I think it’s big because it makes them consider really if they’re they’re pretty much ready for it, I mean if.
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Danny Johnson: If that way you find out, instead of you know, making that and then having to deal with the whole.
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Danny Johnson: thing where it does get weird for them, because they didn’t even maybe realize they weren’t at that ready point to make a decision and you’re just helping them see that, first, so that they can get their first.
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Danny Johnson: exactly that, when you do they’ve already done that parks.
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Danny Johnson: Exactly.
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Greg Helbeck: really make sense, yes yeah.
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Greg Helbeck: that’s huge for, especially over the phone because there’s not all there’s less report called over the phone we.
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Greg Helbeck: operate pretty much all over the phone so when you’re doing deals over the phone you’re going to have most likely less report because you’re just.
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Greg Helbeck: In their living room or you know meeting them somewhere, so the commitments are that much more important over the phone so for our conversion that’s like our like secret sauce in our company.
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Greg Helbeck: That really works, it just straight up works and then another thing i’ll say about conversion.
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Greg Helbeck: And this is this has definitely been said before, but it just it just straight up works is that the whole like idea of like doing the negative reverse selling or going negative taking a step backwards.
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Greg Helbeck: Like when you have a seller who’s like maybe a little reluctant.
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Greg Helbeck: And they’re like wow I don’t know I might I only got need to sell my house or like you know what’s your offer like whatever they say something that’s not beneficial to moving sale forward.
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Greg Helbeck: Instead of like being like well i’ll close all cash i’ll buy, as is or whatever i’ll sound like you jump up and down until you sell your House it’s like hey Mrs prospect, it seems like.
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Greg Helbeck: Even if I gave you a good number of sounds like you’ve never even sell your House in the next six months, and you pull back right and then all of a sudden this the truth will come out.
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Greg Helbeck: I well I didn’t say that I mean I don’t know I and now all of a sudden, they kind of like come back to you and they’re like justifying.
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Greg Helbeck: Why they might actually want to sell their house and six months, or like hey even if you got an offer it sounds like there’s no way you’d be able to make a decision today that’s that’s the truth right they.
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Greg Helbeck: They they’re either going to say exactly or they’re going to say, well, if the number made sense I could probably get my husband on board.
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Greg Helbeck: Okay, so your husband’s definitely involved in this decision to sounds like if you’re sold this House didn’t tell your husband he’d go crazy.
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Greg Helbeck: Well yeah yeah I don’t do anything like you see what i’m doing and you’re kind of like taking a step back to clear the ground to get to the truth, because sales is ultimately just about getting to the truth and the truth is usually in the middle.
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Greg Helbeck: So I mean we do that, to like crazy like we just go.
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Danny Johnson: On some no amount of saying that i’m going to do this or do that, that you feel are called benefits to them is going to do that because it’s not.
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Danny Johnson: getting to the truth of what’s going on.
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Greg Helbeck: Exactly we always pushed to the truth and it’s a little cough like I the team i’ve been made a big emphasis to train my team where it’s like.
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Greg Helbeck: don’t be afraid to ask the uncomfortable question, like, for example when a seller is like.
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Greg Helbeck: hey I like your offer, but I need till Friday right like like which could be that could be a valid statement i’m not like discounting that, however.
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Greg Helbeck: We will go in and we will say I totally respect that totally normal like there’s a softening statement there, can I ask you a quick question, Mr seller.
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Greg Helbeck: Do you really are you really going to wait till Friday and if that’s the case that’s fine or you just gonna chop the offer around to another investor and try to get a higher price and if that’s what you want to do, I totally respect that there’s nothing wrong with that.
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Greg Helbeck: I just want to make sure we’re on the same page and if that’s what you want to do more power to you we’re not gonna put any pressure you to sell your House.
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Greg Helbeck: just want to make sure we’re on the same page.
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Greg Helbeck: that’s a good one that’s a that’s a hard thing to ask right but.
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Greg Helbeck: yeah.
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Danny Johnson: But it but it’s going to the truth.
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Greg Helbeck: They again it’s when you’re thinking about why they’re actually doing that and now would imagine the majority of the time is just because.
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Danny Johnson: they’re afraid to commit to it to make a mistake.
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Greg Helbeck: And when you’re when you’re dealing with the truth on the spot it’s a lot easier to clear the barriers up.
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Greg Helbeck: versus ending a call and then chasing them around and they’re ghosting you and then they’re telling you their cat died and then they’re telling you the House burned down it’s like.
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Greg Helbeck: We just go right to the truth, and we do it in a polite manner, where they really the sellers respect you when you when you do it in a way that’s like somewhat nurturing because, like if that’s what they’re going to do and you’re like mind reading them.
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Greg Helbeck: And they’re like oh yeah i’m going to do that I really need 350 your office 330.
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Greg Helbeck: I can’t leave 20 grand on the table, and now you know where you’re at, and then you can either decide to buy the House or you can decide that it might not make sense, and they should make yourself to somebody else.
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Greg Helbeck: So, like never be afraid of the truth when you’re on the phone with a prospect, because ultimately you’re going to find out the truth anyway right whether it’s going to be the easy way you know it’s gonna happen either way.
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Danny Johnson: right for sure this is a good time, I think, to i’m actually doing i’ve been doing, like the live an online workshop about this sort of thing.
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Danny Johnson: yeah because it’s been an interesting thing, because as looking back into my business and where we had.
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Danny Johnson: Bigger success from going from having to generate so many leads to just figuring out how to convert more leads into deals like what is.
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Danny Johnson: What is more, of the improvement to our business and our processes that will do that, and then it turns out that it’s kind of like all about.
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Danny Johnson: Focusing not on the deals we’re trying to do, or what we’re trying to do, but focusing on what it’s like for the people that we’re serving right we’re buying houses from people, and so what is it like for them what’s their perspective, not our perspective.
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Danny Johnson: Also i’m doing this workshop right now that talks about that because.
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Danny Johnson: there’s a sales.
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Danny Johnson: percentages right the sales graphs and stuff about 3% of buyers, which in the case of normal marketing and consumer you know buying 3% of buyers are ready to buy right they’re active buyers 7% intend to buy so that’s 10% total.
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Danny Johnson: And then you have like 30% that have the need, but they’re just not ready to act right so that’s huge because that’s the total 40% and when I look at my business in the past, when I was just generating all these leads and just trying to get these low hanging fruit motivated.
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Greg Helbeck: sellers yeah I was getting 3% conversion rate man, I was getting.
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Danny Johnson: And so it’s like what is what is their journey, the seller and our business right we’re buying from people, so the seller what is their journey.
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Danny Johnson: And then, how do we use that journey to make sure that we’re serving them with where they are so that we get those deals, so that we start digging into not just the three to 7%.
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Danny Johnson: Which is 10% but digging into more of the 30% below that which could end up getting your numbers like 20% conversion rate of.
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Danny Johnson: Of leads to deals so that’s what the workshop is about, and if anybody listening right now wants to register for that you can head over to forefront CRM COM.
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Danny Johnson: that’s Fo R E, F R amp T crm.com slash workshop and i’m doing that, right now, so go and check that out and register for your spot so all right Greg had to.
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plug the workshop there.
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Greg Helbeck: is very relevant it’s all and it’s true like I see a lot, I see a lot of investors.
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Greg Helbeck: Who maybe they don’t have experience or they just they don’t study sales psychology stuff like.
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Greg Helbeck: they’re talking about the ARV and they’re talking about how much work they got to put into the property what their margins are.
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Greg Helbeck: Like the seller doesn’t care, the only thing we tell the seller, though, we will say this, though the seller, we say we do need to make profit on the property and we just disclose that straight up, we want you got to be happy with the offer.
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Greg Helbeck: Or else you’re never going to sell, but we do need to get it at a number that does allow us to make a profit, we don’t hide that from them so like when they find out, we make a profit.
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Greg Helbeck: We told them in advance that’s what we’re doing and they’re not you know a lot of the sellers in my market like know what’s going on um.
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Danny Johnson: But we don’t think In most places nowadays, I mean it’s not a secret anymore like who these people that say they buy a house like it’s known, because it shows right everybody kind of knows what’s going on.
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Greg Helbeck: Like normalized now you know.
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yeah.
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Danny Johnson: You know so weird in the beginning, you know back in the early 2000s where people were like what what is this, what do you guys, do you know, the thing was not we had to explain like why we were buying houses or while we were wanting to do that.
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Greg Helbeck: Right now it’s like Oh, are you on those TV shows it’s like i’m not but I know there’s 25 of them online right now, so you can certainly pick your.
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Danny Johnson: pick your choice yeah yeah for sure I actually had a TV crew following me around for a day.
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Danny Johnson: You know, for for trying to.
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Danny Johnson: put together a show thing they.
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Danny Johnson: wanted to do that with with my ex wife and I man that was painful I really because you had to generate drama, you had to wear the situation’s didn’t exist before, so it was just.
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Greg Helbeck: Looking San Antonio yeah yeah and then like spending like 30 minutes in the front of some house with people driving by.
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Danny Johnson: And then, like just trying to get one line nailed.
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Danny Johnson: Would yeah cheesy weird line, and it was it was just painful.
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Danny Johnson: But anyway.
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Greg Helbeck: frustrating for sure.
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Danny Johnson: yeah now this has been good stuff Greg i’m really glad that you came on and shared it I love the whole idea of focusing on.
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Danny Johnson: You know maximizing profit per deal because then you don’t need as many deals and that’s a lifestyle thing right it starts to.
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Danny Johnson: To get into lifestyle and setting up your business to be something that doesn’t require so much work so that you can focus on exactly what you do and it’s like looking high level, how can we improve what we’re doing so, we don’t have to work, some of them are.
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Greg Helbeck: 100% and it’s the same it’s I like how you mentioned that, because at the end of the day.
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Greg Helbeck: it’s if you could make double the profit on the same House.
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Greg Helbeck: You just you solve your problem right it’s like if you have to do, literally half the work and you’re making the same amount of money, if not more money.
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Greg Helbeck: And that’s where like a lot of investors, they think like they have to do 45 houses, a month, which would be great and I respect people who do that i’m not saying it’s it’s a great thing to do, and I certainly don’t do that but.
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Greg Helbeck: You can also do eight houses, a month and probably make the same if not maybe a little bit less than the person doing 45 and you have 45 less transaction coordination files going on, so.
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Greg Helbeck: I mean there’s real value in that too.
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Danny Johnson: yeah and I think I think the value actually even in time and effort wise is greater like if you doubled, how much wholesale profit, you were making.
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Danny Johnson: I really think that you’re saving you’re not having to do two deals and saving just the half of the effort.
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Danny Johnson: I think it’s greater I think it’s probably like 60 70% of effort you’re saving because of all the things that go into the generating of all the leads the the analysis, the calls the appointments.
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Danny Johnson: All that stuff adds up and if you get rid of a lot of that you know it’s just beautiful so.
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Greg Helbeck: Absolutely for sure.
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Danny Johnson: All right, Greg well if anybody listening wants to find out more about you or listen to your podcast or anything, how can they find you.
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Greg Helbeck: Sure, like go on social media Greg ro GR EA to underscore 37 on instagram podcast is called pave the way podcast you can look it up anywhere.
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Greg Helbeck: And if you want to get directly in touch with me, the best way to do that is not through instagram messenger it’s through my email so Greg at velocity house buyers calm Greg at velocity house buyers calm, if you drop me an email i’ll get back to you and we can connect.
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Danny Johnson: awesome Greg thanks a lot man have a good one.
