How To MacGyver The Money: Finding Cash Buyers By Mike Watkins

How do you make $100,000 in 100 days in real estate? In this episode, Mike Watkins discusses how you can do that by finding cash buyers. He even provides his scripts and a step-by-step process that can land you deals. Sit back and listen to gain valuable insights into this kind of deal. Learn how to MacGyver the money in real estate wholesaling now!

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How To MacGyver The Money: Finding Cash Buyers By Mike Watkins

Mike does wholesale. He teaches wholesaling. Remember, once you do five sessions, you get a free coaching call with Mike. David is on there too. You get a free coaching session. For every five sessions that you show up, you get a free coaching call with one of the coaches. That’s your bonus. That’s me asking you to please show up to the live session. You can get your bonuses. That’s under the directory in the portal. You can see all that. Mike has a wholesaling course under Online Courses. It is the wholesaling course that you could do. Go ahead, Mike.

I’m calling this How to MacGyver The Money: Your Mind is the Ultimate Weapon. I loved watching this show when I was growing up. You can call me, text me, or follow me on all the social media. I am married to an amazing, beautiful, shy wife. She didn’t approve any pictures so I can’t show you what she looks like. I am the Wholesaling Super Group leader of REI USA. I won teacher of the year in 2018. I like long walks on the beach, dubstep, playing Minecraft with my boys, and pretending to flip my friends’ houses while I’m at their parties. I’ve got two crazy kids, Lincoln and Noah.

What is wholesaling? We’re going to be talking about how to make $100,000 in 100 days. I am proposing to do that with wholesaling. Here’s a postcard that I send out. It is pink. It sticks out. The steps for wholesaling are, you market the properties with a postcard or a letter. You get those properties under contract. You sell that contract because you don’t own the house. You own the contract. The rights to purchase the property, that’s what you’re selling. You are the middle person. You then get paid at closing, and you repeat that whole process.

Learn it from an expert. Step one, get a mentor and not a guru. What I mean by that is to find somebody in your backyard. You can go to local meetups. Get somebody that is not selling courses, not immediately going to come back to you with some more expensive coaching later on to upgrade to the diamond level.

Ask around for who is coaching at these meetups. They’ll tell you to pay them with money or with deals. Please don’t split your deals with them. You can, but I’d be wary about that person. There are some good people that split deals with their students, but there are a lot of people that are sleazy with it. Watch out and be careful. If you suspect they might be a guru, ask me, and I’ll help out. It’s a small world.

How to get a mentor and not a guru part two? You can find one in your backyard. You can find one online like this bad boy or that guy. He’s breaking the rules now. He is supposed to keep off the grass, but he doesn’t care. He’s a bad boy. I had a nice stash in there. Find the buyers, step two. You’ve got somebody teaching you and helping you. Now you’re going to find the cash buyers.

[bctt tweet=”Your mind is the ultimate weapon.” via=”no”]

People always ask, “Should I find buyers? Should I find sellers first?” Here’s the definitive answer. I don’t care what anybody says. This is the correct answer. Pull the list of buyers in your county. That’s like your stomping grounds, your area. You’re going to know everything that goes on there. You can pull from a list source, the MLS, PropStream, or a number of other sites you can get cash buyers from. You take those and put them into Google Sheets.

You want to see which three bought the most. It was pretty simple to do that. See where they bought at, what zip codes have the most properties, what age those properties are, and the price they bought them at. You want the top three. Those zip codes, if they’re different, that’s your market. You want to see where the hot zones are. You must be committed.

This is step three. Promise to me that you will talk to five sellers a day and make an actual offer to a person truly interested in selling you their house, not like a guy in line at Starbucks. Don’t do that. Send a mail to any of those you don’t get to talk to. If you talked to 3 sellers, you’ve got 2 people in there that you need a mail to, and we’ll talk about how to get those people later.

Set a task in REsimpli or in your Google Calendar to send the mail again in 30 days and repeat forever. Tag yourself in it if you have that capability. Check out my YouTube channel, Mike The Wholesaler, for a video on how to make easy letters. You can handwrite them and copy. You can fill in the information later and it’ll save your finger muscles. It will thank you.

Step four is the free pocket list. You have a list right here on your phone. You can call the contacts in here A to Z. Not people who you currently work with. Make sure that it’s the people you used to work with because you don’t know who’s a brown-noser and who’s going to turn you into the boss. If you pass work with them, go from A to Z. Catch up with them, and ask them, “How you’ve been? Where are you at? You’re a manager at Applebee’s now. You were moving up. You are getting that paper. You got kids now.” Lift them up.

After you talk a little bit, you bring up houses, “I got this guy. He has a lot of money. He’s looking to buy some houses.” It’s not you. They’re not going to believe you got money because you may still work at a job, or they’ve got this perception of you as still being not this investor type with cash. You want to put that on somebody else. They’ve got the cash. They want to buy houses. Save your number as We Buy Houses. Put them in a group in a Google Sheet or in your contacts into a group called Deal Finders. You can reach out to them on a regular basis and see what they got. A student of mine did a deal this way in 34 days.

Cash Buyers: You could wholesale deals and the profit you make on that will then go back into the IRA, and it’ll slowly build up your tax-free retirement.

Step five, free leads online. You’re not going to believe this, but you can go onto Zillow, and you could look up for sale by owners or for rent by owners. It’s FSBOs and FRBOs. Both of these houses are most likely going to be vacant. They want money for the house. Usually, there’s not going to be a tenant. You can easily reach out to these people.

A lot of the time, they put their phone number in there. You can call them up and talk to them. Call those people and they’re free. I think if you’re a realtor, you can pull the list and upload it to Mojo Dialer and call. Get them to sign on the dotted line. If you want this script, you can text SCRIPT to (678) 439 5699, and I’ll give you my script. I’ll try to help people. I get on there and say, “This is Mike Watkins. I drove by the house. I’m looking at it, and I was talking about this on Wholesaling 101.”

I was telling them. “I’m trying to help people get it through to them. I drove by the house. It looked like it needed a little bit of work. Do you need help to fix it up? Do you need funding for that? We can find tenants for you to rent it for you and start paying you or we can help you sell it.” Selling is where you wholesale it for them.

Get the deal locked up, and get a contract from your mentor. I believe Stacy has got contracts on here. There are a lot of pages. I’ve got one that’s one page, and that one comes for you for free in the wholesaling course. You should be able to download that. If not, text that to me in the script and say, “Send me the contract.”

When you go to the course, all your stuff is still there.

You get the contract to lock the property up, and you get the contract to assign it. Get them to sign on the line, get a lockbox or a key to the property, and put it on the back of the house. You can mail a lockbox even to the seller. I was selling a house to somebody, and they mailed me a lockbox because they were used to dealing with sellers directly instead of wholesalers. I was like, “I didn’t even think I could do that.”

[bctt tweet=”Get a mentor, not a guru. Find somebody in your backyard.” via=”no”]

If you’re doing it virtually or in another state, you can do that. Close on it. You want to go through the closing process, even though you’re going there to get a check. Show the deal to the buyers and get a contract from your mentor or from the site. It’s called an assignment. Show the house to your buyers, get the buyer to sign on the dotted line, and get them to give you a $2,000 non-refundable earnest money deposit check made out to you or the title company.

This is most likely a deterrent for daisy-chaining, where a wholesaler will occasionally pay $2,000, lock your house up, double close somebody else and make less money than you, which is crazy. Don’t be pushy. Don’t always be closing. Always be helping, ABH at the closing table. You go to the closing and say, “What are you going to do with that money because they’re getting cash from this cash buyer into their account?” They’re now a cash buyer. They want to invest in another real estate, or they want a new home.

Add them as a buyer and find them some deals. They might want them with a little less work needed, but you could get these buyers, and they’re not going to be on a list anywhere. This is typically what they say and how they talk, “You are money hard.” Go to meetups, REI USA state events. I know there’s one for Ohio. There’s one for Georgia. Go to those. Find a hard money lender.

You can also use J&M Capital on the REIA, on the site, get a proof of funds letter, and use that money to get those sellers that need to see the money. If they’re iffy, you could say, “I got a proof of funds to prove I got money.” Any other wholesalers that come in are most likely not going to have that. You can double close for bigger profits, and I can also lend money if you want, but always be looking for money. It’s good to look for the funding when you don’t need it. Trust me.

Repeat step from step three on. Repeat that, wholesale some deals, build up your cash, etc. You get the idea. Step ten, form an LLC after you do some deal. Go to the Secretary of State site, and search for the name you want. Please, no equity, diamonds, or solutions in the name. Copyright the name on LegalZoom. Nobody can take it, copyright it and send you a letter, forcing you to take it all down, which sucks. Trust me.

Get a bank account, and put your money in the bank. Don’t put it in your personal account. I use Chase. I’m not a lawyer, attorney, or anything like that, but I love Chase. It’s not your money. It’s the company’s money. Get a company card, keep it at home, and keep it separate. Whenever you have to pay stuff at Home Depot or anything like that, track it all there. Any money you spend on marketing or deals comes out of that account and not out of your personal account.

Cash Buyers: Surround yourself with people who were there for the first crash and could give you advice on surviving the next one.

You want to make an IRA account. You get a sponsor here from Advanta. I’m not an attorney again, but this is not advice. Use Advanta IRA. Put a portion of the money into this account. Use that money on small deals from other wholesalers. You could wholesale deals. The profit you make on that will go back into the IRA, and it’ll slowly build it up tax-free. Build up your retirement.

Here’s my event, Wholesaling 101. The next one is on the 20th of June 2022. There’s my contact. Here’s a little bit of what we talked about wholesaling. I talked about phone skills and how not to annoy people. David said, “Don’t mass-market everybody. Don’t send out mass texts and ringless voicemails.” Calling people is all right, like Mojo Dialer.

A lot of these snakey things make me mad. I don’t want to do that to people and direct mail too. Hit them up in ways that they’re going to respond to you nicely. There have been some times when people were like, “I’ve been waiting on a dentist to call me for my son.” They’ll call me and be like, “Is Mike Watkins there?” I’ll be like, “Yes.” They’ll be like, “We want to talk to you about your property at 123 Main Street.”

I know these other sellers got to think that way too. You got to cut through and separate yourself from all these other wholesalers. IRA accounts. You’ll do round robin because you can’t invest in your own IRA. It’s good to have friends that have IRAs too. They may have a deal, and they’ll hook you up. They were like, “You fund the repairs and the stuff on this little property here.” The money will go back into your IRA. They’ll get the wholesale deal done and don’t make money. You make money.

What you’re saying is the way to make $100,000 in the next 100 days is to wholesale some deals?

Wholesale some deals and you make money. Your sellers are going to be getting cash. Let’s say the cash buyer is paying a particular seller $200,000 cash, you’re getting $20,000, and the seller’s getting $200,000. This is their second house, they’ve already got a home that they live in, you can turn them into cash buyers and use their money too. You can do that.

[bctt tweet=”It’s good to look for the funding when you don’t need it.” via=”no”]

The seller that you wholesale the deal from has the money that they make become the private money that you use. I do that too. I’m like, “You’re going to make a lot of money on this deal. What are you going to do with all that money?” He lent it to me. He teaches biweekly on Fridays. He has a plethora of information. Hop on and spend some time with him, especially if you’re interested in wholesaling. I was going to ask you real fast, Mike. What do you think is going to happen to wholesaling with the market?

If it continues to go up like it has been, it’s been pretty good. I would say right when the market starts to go down, it’s going to be hard. I’ve heard from people with the last crash in ’07 that first downturn is the hardest part. Once it’s going down and the market starts to crash, it will be a little easier. When it starts to stagflation, where everything is a lot, and it starts to turn down, that’s going to be hard.

Just like MacGyver, you’ve got to mix it up. You’ve got to then get those deals at way lower rates. When the market continues to go down, it’s still a deal. The good thing about wholesaling is that you’re getting these properties under contract. You’re not closing on them. You do have the ability to pull out of the contract if the market is tanking too quickly.

The good thing about Mike is that he is like what David Randolph said, “He teaches you step by step how to do it the right way.” I feel like there are a lot of people out there that are way too high level. I like that you get into the nitty-gritty.

Somebody was asking me, “Why am I not big-time like a big company?” I got everything I needed. I’ve got the wife and the kids. I make enough to do everything. I don’t need to be Jeff Bezos of wholesaling. Phillip says, “Is the market going to crash?” It will go down, but it’s not going to be doom and gloom. A lot of the people who have the houses that they start to sell and can’t sell, and they need to come down in price. Those are going to be the doom and gloom people.

That’s going to be good as a wholesaler because once that doom and gloom sets in and they come to the realization that they need to lower the price on that house, you should be able to come in and get those under contract and sell them quickly. There’s going to be a lot of people that are going to be in the doom and gloom and not come to the realization that they need to come down in price.

Cash Buyers: You own the contract, the rights to purchase the property. That’s what you’re selling. You are the middle person. You then get paid at closing and you repeat that whole process.

It’s going to be a price decrease. It’s going to be a correction. It needs to be corrected.

A guy in my mastermind, Chris, had a deal in Decatur. He was selling for $800,000, and nobody was offering on it. He finally got an offer of less than $800,000. He took a loss, and that’s the first time that’s happened to him on a deal since ’09. I take that to heart. I’m surrounding myself with people who were there for the first crash and could give me advice on surviving the next one and we’re good.

We’re saying crash, but it’s going to be a correction.

The terminology is it’s going to go down. I don’t think it’s a crash. I think It’s going to be a correction.

It’ll be interesting to see what happens. I’m excited. I’m ready.

I cannot wait when that does settle.

I’m sure all the coaches here are excited.

All of my Millennial friends are excited too because they’re like, “We’re going to get houses too.”

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About Mike Watkins

Magic Mike wasn’t always the people’s stripper. He started out by trading his time for money stripping at the club. Then an investor sent him a letter asking him to buy his house. Mike hired that investor to teach him, and now he’s stripping it down for people all over America since 2009 and now his business works FOR him, automagically.

The Wealth University is here to teach you how to quit your job by replacing that income through real estate. Learn how to flip houses with cash or credit. All you need is a little money for marketing.

Magic Mike wasn’t always the people’s stripper. He started out by trading his time for Money. By day, Mike makes ends meet by pushing carts but night time was when Mike really gets to display his many talents: He’s the hot headliner in an all-male chin n dales show. However, Mike learns there’s a downside to the stripper lifestyle when his boss lets him go. He was evicted and then had to live with his mom again. He lost his dad shortly after. This turned out to be a blessing in disguise. He left everything to Mike.

Knowing how easy it was for Mike’s old landlord to get that mailbox money, he bought a house and tried to do the same. Mike could not get it rented out tho. He was losing $$$ fast. Then an investor sent him a letter asking to buy his house. Mike hired that investor to teach him, and now he’s stripping it down for people all over America since 2009 and now his business works FOR him, automagically.