$835,000 From 24 Deals In One Month!

Happy Sunday! You will enjoy this case study!

$835,000 of revenue and 24 deals for the month of June, WHOLESALING REAL ESTATE! Thats how much Clint Cooper and his partners at Padly made last month in gross revenue! If you have aspirations of running a wholesale operation as a business OR as a solopreneur, then you need to read this case study! Clint speaks about how he made over a million dollars his first year in the business of real estate as a solopreneur, why he decided to get partners, marketing channels, profit margins, how they sell their deals, the number one skillset you need to succeed, and also deep dives into going from a one man show to now a reputable company with two partners and 40 employees doing 25-30 deals a month in only two states!

How Clint Got Started In Real Estate 👇

If you are just getting started in this business and have no money, then you want to read this!

Clint’s first year in the business was in 2020. The way he took action was by building relationships with wholesalers and realtors to get deals! Most of the deals came from realtors and what Clint would do is cold call agents! He would build a list of realtors, cold call them, introduce himself and build rapport/relationship with them. He would offer value to them by telling the agents that if they brought him a deal, the agent can make 3% on the buy and then he would cut them a check for 10% of the profits once he sells the house! Genius! This makes the agent want to do business with him because agents are capped by their commission. What agent wouldn’t want to make extra money just by bringing deals to the right buyer! Exchange value for value!

Getting into a partnership! 👇

The COO of Padly is Tyler Evans. Tyler is a rockstar integrator who is in charge of making data driven decisions. As the chief operating officer, Tyler oversees the financials and KPI’s of the company, and makes decisions based on the numbers and performance of the company. The reason that Clint hired Tyler was because Tyler complimented Clint’s weaknesses. Clint knew that Tyler could help take business to a new level. Like most visionaries, Clint is an all gas no brakes type of guy. Tyler is an all brakes, “let’s make decisions based off numbers and KPI’s, NOT intuition”. Clint expressed the importance of making sure you find a partner that compliments your weaknesses and is good at the things you are not good at. Simply put, if you are a visionary looking for a partner, make sure you hire and integrator. And if you are an integrator looking for a partner, make sure you find a visionary!

Profit Margins! 👇

If you are like me, then you are probably thinking, “well how much of that $835,000 is profit and how many of those deals is wholesale vs fix n flip?!?!” Great question! Right now, Padly is operating at 30-40% profit margins and 95% of their deals are wholesale and 5% are fix n flip.

Marketing cost/Budget 👇

One rule of thumb that I found interesting is, Padly’s marketing budget is 20% of their previous month revenue. Meaning, if they have a $500k month in July, then their marketing budget for August will be $100k. This keeps their sales people motivated because their sales people know if they have a great month in revenue, then thats more money the company will spend in marketing which leads to more opportunities for them!

Marketing Channels/Lead Generation 👇

Right now Padly is currently doing direct mail, texting, cold calling, and pay per lead. Direct mail is their best performing marketing channel, just like it is for myself. The part that people fail to realize about direct mail is that direct mail is a long game. Meaning, you are probably not going to see much results your first 3-6 months sending mailers. When you do direct mail, you have to keep track of things such as, how many times you mail each lead and keep track of your response rates. Typically, you want a response rate of at least 1%. You also want to mix it up a bit with your mailers. Something I have noticed personally, is our 5×8 cards with a family photo tends to get a better response rate then 4×6 post cards that have a generic message saying something like “We Buy Houses for Cash”.

Disposition Strategy! 👇

Selling your deals on the MLS! The traditional way of wholesaling is by finding an off market property, getting it under contract and then assigning that contract to a cash buyer for a fee. And usually, you find that cash buyer through your own network or another wholesaler’s or realtor’s network. What the guys at Padly are doing is a complete game changer to not only get more exposure and eyes on the deals they have but to also increase profit margins! Most of the deals they get are listed on the MLS. When you list your properties on the MLS you not only get cash buyers but also retail buyers. Nobody pays more money than retail buyers. And when you have retail buyers, you are able to lock up deals at a higher percent of the ARV (After Repair Value). When you are able to lock up deals at a higher number this allows you to have an edge on your competition and increase deal flow!

What Is The Number One Skillset You Need In This Business?

Sales! A lot of people fail to realize that real estate is a sales, marketing, and relationship business! But the number one skillset that you need to succeed in this industry is sales skills! Learn how to be an effective communicator and solve problems. And the best part about sales skills, is they can be developed! It’s not something you either have or don’t have. Whether you are gifted or not, sales skills can be developed with consistency and time! And one of the best ways to get your feet wet is by picking up your phone and making phone calls. If I was just starting and had no money, I would watch wholesaling real estate videos on Youtube that are about cold calling and start calling realtors! If I had a little bit of money, I would invest into a dialer, pull a list off of Propstream, get it skip traced and start cold calling!

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