Alex Hormozi's Advice on Wholesale Real Estate

0:00Alex Hormozi just sat down with a real estate wholesaler who's doing $450,000 a month and the guy is stuck. Every time he tries to scale, he crashes back down to 250. In about 90 seconds, Hormozi tells him exactly why. I've flipped houses for 14 [music] years, and I'm telling you, his diagnosis is the same thing I've been preaching to you the entire time. So, I'm going to react to this clip line by line, and at the end, I'll show you the one thing even Hormozi missed because he's not a real estate guy. Let me show you. I am a real estate wholesaler. Okay. Um,

0:30we're currently averaging about $450,000 a month in revenue. I would like to be at a mean. That's your spread. That's what you're making. Or that's like house volume. Uh, that's gross. Okay. So, so what's your what's what's your spread on that? What's your take on that? So, we're at 40%. So, right around 250 240. Interesting. Weird. That's high. All right. So, right away, you know this guy's legit. $450,000 a month in revenue, about 40% margins, $240,000 a month in his pocket. So, this is a real wholesaling business, yet this guy's

1:09still hitting a wall. Now, hold on to that thought because what Hormozi says next is the whole video. We're currently at 450 average. Yeah, we've had 700K months this year already. The challenge is every time we get to those numbers and I try to, hey, you know what? It's time to ramp up. Uh, for some reason [music] we tend to tank to, you know, 200, 250. Okay. All right. That right there, he's had $700,000 months. Then he tries to push and the floor falls out beneath him and then he's back at 250. So, if you've ever had one amazing month wholesaling and then three quiet ones,

1:44you probably already feel this in your chest. Most people will look at this and say, "Hey, the problem is you just need more leads." But watch what Hormozi says instead. You have an ops issue, which is sales ops. And so it's go like this is gonna be much more weedy in terms of like tactics to answer this question. Um but it's like there's probably like 20 things that you need to be doing and you're probably doing like 13 of them and the other seven are going to be the thing that make the difference uh and creating the consistency of the team. That's at the service level

2:11at the at the at the deep root of this is who's the leader of the sales team. This is the most important sentence in the whole entire thing. He did not say get more leads. He didn't say spend more money on marketing. He said you have a sales ops problem and that you're doing 13 of 20 things

2:27and the seven things you're skipping. That's the difference. Now, I've said this a hundred times. Wholesaling is not a lead problem. It's an offer problem and a sales problem. The people who plateau are almost always the same people who think the answer is more leads at the top when the [music] leak is in how they run the calls and the offers they have at the bottom. And Hormozi just confirmed exactly this for a guy at 450K a month. This is exactly why my

2:52whole entire program is call centric. You're not closing a wholesale deal off of a text message. You close it on the phone, human to human, on a discovery call and then a close call. Now, this two call framework in this script, it's the seven things that this guy is missing. Now, I'll point you to the script where we hand it to you in just a minute. Let's get back into it. I would wager that script adherence is low because you have such variability in close rates unless there's a change in lead quality which would be something else. But are the leads the same like this month as last month? Yes, the lead is the same. Yeah. So it's a sales discipline

3:25issue. All right. So Hormozi nailed it without even seeing the inside of this guy's business. It's the same leads but wildly different close rates month to month. [music] Now this isn't about the real estate market. This isn't about luck. This is about script adherence. Now, when your numbers swing that much on the same leads, that means the words coming out of your mouth and your sales team mouths, they're swinging just as much. And here's what most new wholesalers and flippers do not understand. When you call that real estate agent about a distressed property, there's a right way to open that call. There's a right set of questions about the repairs,

3:58the seller's motivation, and a right way to set up the second call where you actually drop in the offer. And if you say it well, the agent will actually hand you all the intel you need that lets you offer smarter and better than everyone else. But if you wing it, you will sound like every other investor they hang [music] up on. Now, I'm not going to read you the full script that I have on camera, but it exists word for word, and it's the discovery script and the closer call script, and it's really the difference between guessing and actually having a closing system. Quick thing before the next clip. The link for the scripts is in the description and I'll walk you through

4:31the full on-market process Hormozi is basically describing from the outside. So grab it then come back because the next clips are where I start to disagree with Hormozi a little bit. Everyone should be reading the same script. If they're not reading the script, why are you on this team, right? Uh we need to have training that's every day to make sure that they are saying things the right way. We need to make sure that everyone memorizes the script. Some of you guys might have seen the YouTube video I put out like two days ago about this, but like they have to breathe the script. If they are not saying the script word for word, you cannot be on this team. You

4:59cannot take these calls. I'm getting these leads and not for you to go cowboy and mix [ __ ] up. And that then if we cannot solve that problem because for whatever reason you keep trying it and they don't adhere and they go off script because they just want to close the deals, it means you have a cultural issue which is a leader problem because it means the leader

5:16is reinforcing behaviors that get people to go off script and there's no consequences for doing it. And so if you want to have a consistent world-class sales team, the process has to always go above the player. No one is above the process. All right. No one is above the process. Write that down. This is the line that separates a wholesaler who has one good month from a wholesaler who builds a real consistent business. Now, when I was doing 50 deals my first year,

5:49it wasn't because I'm some genius on the phone. is because I ran the same process every single time. The same way I find a distress listing, the same questions on the discovery call, the same analysis before I ever say a price, the same offer terms that made me look like a pro because I am a pro

6:04instead of an amateur. The process always carries me, not my mood or my emotions that day. And this is why inside my program, we do a KPI call every single week where you actually fill out how many written offers you sent because we can break this down to a science. We know that 10 to 15 written offers gets you roughly one wholesale or flip deal every single time. And if you're not getting deals, we do not guess. We look at your inputs against the process and we find the seven things that you're skipping. So process above player. Hormozi and I completely

6:35agree here. I show the shapes of businesses. You are in a sales and marketing business. There's functionally no delivery. Like you're just basically like are are you guys doing outbound or like smiling and dialing or do you buy leads from setting teams? Inbound. Yes. Google ads. Google ads. Yeah. Okay. So, you have inbound leads that are coming in and then you close. Like that's the business. Like you buy media, you sell [ __ ] And so like this has to be a

6:58core. Like you have to be world class at this if you want to be world class at wholesale. All right. Stop it right there. Did you catch what the guy just said? What his lead source is? Google ads. He is buying his leads. So he buys media and then he sells. And Hormozi even says it. You are a sales and marketing business. And this is the one place that I'm actually going to add what Hormozi said because he's a business guy, not a real estate guy. Everything he told this man about sales ops is 100% correct. But the bigger reason this wholesaler is so fragile, the reason one slow month actually tanks him is that his deal flow is rented. The second he eases

7:34off the ad spend or his cost per lead spikes, his whole machine, his whole business sputters and he's paying about $5,000 or more to acquire a single deal and his margins live and die by an ad account he doesn't control. And this is the exact trap that I built our entire approach around to avoid. Now, there are over 1.5 million houses sitting on the market right now listed with real estate agents. About 91% of all real estate transactions happen right there on the market on

8:01the MLS with the real estate agent. Now, these leads, they cost you zero dollars in marketing. Yes, zero. So, when you take the sales discipline Hormozi is describing and the scripts and the process, the consistency, and you point it at free on-market leads instead of paid ones, the math completely changes. And it's absolutely insane in a good way. So this wholesaler system, it's currently on a treadmill, whereas the same system on the MLS on the market, it's a flywheel. The better you get at training sales and creating consistent sales processes, the less skill someone can have and create a consistent outcome within your team, which becomes the arbitrage of your business. Just like I said the cleaning thing before,

8:40if the whole constraint of that business is going to be finding, you know, basically taking a human being and then turning them to a great cleaner that actually shows up on time, you have to take the raw input of somebody who has no skill and just has work ethic, just has energy. And in 14 days, you can get them closing deals on wholesaling. That box is the value that your

8:57company, that is your IP. That is the trade secret. That's how your company is valuable. All right, that box, that's the whole game. And Hormozi is saying the asset isn't you. The asset is a repeatable system that you can scale and turns a normal person with work ethic into someone who can close a wholesale deal and a flip deal just like clockwork. So,

9:15the system is the trade secret. And I want to be straight with you about what we actually built. That box he's describing, the step-by-step system that takes you from no experience to actually closing deals on the market. That's a thing. The market selection, the way you find and filter for only distress listings, perfect deals for wholesaling and flipping. the proof of funds, the two call close, the analysis, the clean offer, the assignment, all of it in order. Now, you don't need to reinvent this box. I already spent over 14 years building it. So, look at what this clip proves. [music] A guy at $450,000 a month, he asks the most successful business coach alive how to

9:48grow. And the answer is not leads. The answer is sales ops, scripts, process, and culture. It's the boring stuff that most people skip. And it was never ever a lead problem. It's an offer problem run on a process. Now, once you accept that, the only question left is whether you want to run that process on leads you rent from Google for five grand a pop or on the million plus distress listings sitting right there on the MLS underneath your nose for free. Now, it's the same discipline, but a wildly different outcome. And that is the whole difference in this business between grinding

10:20and actually getting rich. So, Hormozi gave that wholesaler the right diagnosis. I just gave you the free version of the cure. And if you want the actual system, the scripts, the frameworks, the calculators, and a team that reviews your real deals with you every single day and every single week, that's exactly what we do inside of Pro Wholesaler. Now, the link is in the description. Watch the free training there first because it will show you the whole on market system end to end and then hop on a call with my team and I. Now, just like Hormozi, we'll spot the real problems going on on our call together and then we'll set the road map

10:51and give you the business in a box. Now, if you want to see me cover the sales process on real deals, start to finish, watch this next. Alex Martinez with Real Estate Skills.