Maximizing Profits in Wholesaling with AI

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1:26on what he thinks is happening with wholesaling. And we'll be talking a little bit about a video that comes from Maximilian Deere, where he said AI just changed land wholesaling. And he's talking about how you can make up to$30 ,000 a deal doing land wholesaling. So Jamie, give us the breakdown. First of all, I think you've mostly just done homes. Have you ever done like anything with land before, like any land purchases? Nothing with land. I've thought about it, but this whole idea of real estate wholesaling has been a huge magnet for YouTube views for years now because it's like, it's always pitched as like, it's this super easy process.

2:04You know, all you got to do is find a good deal and then flip it to an investor and boom, you make, you know, 30 grand. You know, I do this 10 times a month and I make 300 grand a month, blah, blah, blah. It's a very enticing opportunity, I will say. So people sell. I'm sure this guy has a course, this Maximilian, and I'm sure that he probably makes more money from the course than from wholesaling. I don't mean to knock him because I do think wholesaling works for some people, but it's a very difficult thing to first of all find a deal, which I think in this video he goes through how it's actually now easier with AI, but the other side of it is the sales and the actual closing of the deal, convincing someone to sell their property to you versus putting it on the MLS and selling it traditionally.

2:55So anyways, but I do think AI is becoming a huge tool for these people who do wholesale. Basically what you need to do if you want to wholesale a property, the whole idea is that you find a distressed property and you try to buy it for well under market value and then flip it to an investor who then buys it for what you bought it for plus an assignment fee. And that's kind of your payment for finding the deal. Anywhere from$5 ,000 to$50 ,000 typically is an assignment fee. But you need to find the deal first. You need to market to that person and then hopefully convince them to sell you their house.

3:39So that's the business model. And so a lot of that is scraping data, scraping lists. There's a lot of public information available. For example, like divorces are public information. Interesting. If you're behind in your mortgage, like delinquent or delinquent taxes, those are all different lists you can pull and analyze. So this guy, Maximilian is basically showing his strategy about how he uses AI to go through these lists and identify properties. He has even a Claude prompt here. It says, find me a website of tax delinquent properties in Dallas, Texas that are scheduled for auction. So from my experience, these types of lists, you typically have to pay for, perhaps with AI, you could get them for free.

4:30but it's basically public information. You then would reach out to these individual individuals individually. So each person you're going to have to either email them, call them, find their address. You have to then enrich whatever information you have to find the contact info. Typically you'll just have an address and then there's different programs like hunter.io that will hopefully enrich the data and find that phone number. you need, then you still have to cold call the phone number. And then hopefully they don't cuss you out and tell you to go, you know, whatever. And so that's kind of, that's where this whole dreamy scenario kind of falls apart because you really need to do a lot of cold calling.

5:16You're still doing the cold call. Like, yes, it's a good hack to finding the leads and getting them. And I think especially if you're building a company, maybe you have other people doing the cold calls and you're, you're like finding a ton of the leads. Um, it's a good process and AI helps a ton, but it's not completely without work. Right. So, you know, people are pitching AI tools as, you know, basically doing all the work for you. That's not necessarily true, but I do think it's helpful to know how to use some of these tools. My, where my mind goes when I see these videos like this, where you're able to pull this really intense data is what could, how could I start a business that uses lists and information like this to sell something else or sell something, um, you know, that no one else is doing.

6:00So the wholesaling thing, like I said, has been popular for many years because of YouTube essentially. So a lot of people are doing this. You don't really have an edge on others because you're just trying to copy what they do. So, and a lot of these guys are doing it at scale. So I don't know. I have lots of thoughts on this whole thing. I also think wholesaling can get a little bit, um, gray area or black hat, if you will, because you basically have people in these distressed situations and you're, you're, you know, having to not lie to them, but you're having to kind of take advantage of them a little bit to get a good deal.

6:39I actually, I have tried wholesaling in the past. I, and I, I gave it a good shot. I spent some money on, on lists and, and, and calls and stuff. And I did get close to doing landing one deal, but morally I couldn't pull the trigger because it was a situation where a dad had bought a home for his daughter. Okay. And then a couple of years later she passed away and then he was going to sell it. So I was like, I can't morally like be calling this guy every day. Like, Hey, you know, uh, what, you know, do you want to sell that house yet? Or I can give you cash. You know, like, right. I feel like there's just a moral component there that I just don't like.

7:18So totally. Personally, wholesaling is not for me, but Jaden, have you ever like nested anything like this data lists scraping when it comes to real estate space never been a big thing I haven't done a ton with cold call or anything like that um but I have been on the other end of it where um when I was originally I was selling a house in Arizona and it was uh you know I have a couple houses in Arizona that I just rent out now they're just rentals but um one of them in particular we bought kind of at the peak of the market and so the market it went down a bit. So when we were selling it, we were just, you know, going to lose some percentage of the sale.

7:55But you know, there's like the down payment or whatever. So it kind of covers. But in any case, there was a I got so many cold call phone calls from people. And like half of them would sort of pretend like they were like an agent or someone like interested in buying the home. And then they'd ask all these questions and ask about your creative financing. And then they'd be like, Look, I can see that you bought it for x amount, but you're selling it for less. So they had all these kind of AI tools as well that were scraping lists of like homes that were maybe bought for a certain amount and then were worth less.

8:26And then they were like, so, you know, because like I know you're trying to get more money, like I can give you like a better offer. But like we're going to have to do like seller financing where it's like technically still in your name. But I just like take over the payments, which of course means they could walk away at any point and you'd be stuck with it and stuff. So I understand how in the system we're like in some of those trickier situations for people. For us, thank goodness, like it's not the end of the world. I'm like, whatever, we're just going to we actually end up just renting it.

8:54So I tried selling it for like a month or two, didn't sell. And I'm like, I'll just rent it till the housing market gets better, recovers or whatever. But I can imagine if someone was really strapped for cash, maybe on the verge of bankruptcy, like literally didn't have a way to keep paying for this, they would take one of those bad deals. And it's like, I don't know, one bad decision could put you to another. And yeah. So anyway, they don't think you kind of prey off of that. I mean, they got to get their margin from something, right? So it's like, you're really desperate. Maybe you're willing to lose a bit of money.

9:23And so, yeah, it's tricky. And morally, it could probably be hard, I would imagine. But I will say, so if you're listening to this podcast, I don't mean to downplay the strategy, because I think the overall mindset really does work well for business. And that is to use AI to pull data for you. And then if you can have a high ticket offer, you know, that you could either run ads to reach those people or you could, spending your time is actually worth it. I think that's a pretty good business model. If you can find a high ticket service or product to sell to lists of people that can be pulled with AI, I think there's something there.

10:04It's just, I don't, you may have to think a little bit creatively as to what you're doing. 100 % guys thank you so much for tuning into the podcast today has been a ton of fun if this was an interesting business or strategy for you and you're planning on trying it out let us know go join this ai hustle school community and let us know what you're planning on working on we have tons of different side hustles and businesses that we're always always working on and we give you guys the the scoop and the inside details over on the ai hustle school community thanks so much for tuning in and we'll catch you guys all in the next episode.

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