This blog post shares insights from a conversation with Kyle Eisenbarger and Joey Ientile, two seasoned wholesale real estate professionals. They’ve mastered negotiation and offer valuable lessons for anyone in the real estate industry. From finding the right partners to using Predictive Index (PI) tools for smarter hiring, their approach and key takeaways will help you succeed in real estate wholesaling.
The Power of Complementary Skills in Partnership
Kyle and Joe, epitomize a successful partnership empowered by complementary skills. According to them, a significant reason for their success lies in their ability to leverage each other's strengths. This strategic alignment transcends simple compatibility and ventures into crafting a relationship where both parties contribute unique skills to the table.
Joe and Kyle's First Deals
Surprisingly, their first wholesale deal wasn’t groundbreaking in terms of numbers but was monumental in terms of learning. Joe's initial wholesale deal brought in $9,000 before he partnered with Kyle, who at the time was engrossed in his first house flipping deal worth $15,000. These initial experiences were paramount, making them realize the potential within real estate wholesaling.
Why Did They Partner Up?
Despite individual successes, Kyle and Joe decided to partner up to harness each other's strengths. Joe describes himself as the "visionary" and "maverick," focusing more on sales, while Kyle is the "operator," bringing in technical and software skills. This blend of personalities and skills allowed them to cover more ground and operate efficiently.
All the things I'm not good at, he's good at and likes to do and the things I suck at, you know, he's good at and vice versa. - Joe
Leveraging Predictive Index for Hiring
A fascinating tool they use in their business is the predictive index (PI). This instrument helps them understand personality traits, ensuring they place the right person in the right role. By aligning roles with individual strengths and propensities, they ensure long-term job satisfaction and effectiveness.
Joe and Kyle reaffirm that PI isn’t the sole determinant but is a critical component in their hiring process. It assists in ensuring that their employees are in positions where they are most likely to excel and sustain.
Wholesaling Journey and Marketing Strategies
Joe narrates his entry into the real estate scene in 2016 as a realtor, focusing initially on house rentals. However, he discovered the retailing potential in 2021 and pivoted. Initially, mass texting was their key marketing strategy, bringing several initial deals with minimum expenditure. As text marketing started facing challenges due to increased spam filters by phone companies, they pivoted to direct mail.
Direct Mail: A Major Marketing Source
Direct mail has now become their primary marketing driver. According to Kyle and Joe, it takes approximately $3,500 in mail spend to land a deal, which translates to around 6,000 postcards. They advise newcomers to be prepared for a learning curve, potentially requiring more initial spending until they become proficient.
"You might spend five, six grand before you get that deal. But then you might get another one faster after that."
KPIs and Conversion Metrics
From spending $3,500, they typically generate 8-10 leads, converting roughly one in ten into a deal. For every appointment, they make sure to make an offer, emphasizing the importance of following up on leads and continuous engagement with potential sellers.
Negotiation Tactics
The duo shares their negotiation strategies centered on focusing less on the house and more on the person's situation and motivation. This psychological approach, inspired by Jeremy Miner's teachings, helps them create pressure subtly and maintain control of the conversation without making the customer feel cornered.
Motivation over Price
Kyle and Joe ensure that their negotiations drive home the importance of the seller's motivations—whether it’s a personal issue or a need to relocate. They prefer discussing the seller's situation rather than the property's condition, confidently relying on their expertise to handle the latter.
Sales Dynamics
A crucial aspect of their strategy is the sales dynamic between the salesperson and the sales manager. Here, the salesperson acts as an advocate for the seller, working hard to get the best possible offer approved by the sales manager. This creates an environment of trust and collaboration, which is highly effective in closing deals.
Handling Initial Rejections
Joe highlights the importance of patience and persistence, emphasizing that multiple interactions are often necessary to align the seller's expectations with their offers. They avoid presenting final offers initially, opting instead to manage expectations and build rapport.
Closing the Deal: The Path to Wholesaling Success
Kyle and Joe's journey proves that success in real estate wholesaling isn’t just about numbers—it’s about strategy, partnerships, and persistence. They’ve shown how complementary skills, effective marketing pivots, and a focus on the seller’s motivation can transform simple offers into lucrative deals. By leveraging tools like Predictive Index for smarter hiring and honing their negotiation tactics, they've created a roadmap for anyone looking to thrive in the industry.
The art of wholesaling real estate lies in constant learning, strategic partnerships, and mastering the psychology of negotiation. Whether you're just starting or refining your methods, Kyle and Joe's insights can guide you toward closing more deals and reaching new heights in your real estate career. Now, it’s your turn to put these lessons into action and start turning offers into profits!
