How Real Estate Wholesalers Use AI Text Blasting to Find Deals | Carlos Frazier

Carlos Frazier (00:00)

another good thing is your cash buyer’s list. So this is a cheat code for myself. I tell all of my mentees this too. The reverse wholesaling is go out for your cash buyers first because they’re going to tell you where they’re looking to invest, how much they’re looking to spend. If you build that relationship with your cash buyer’s list first, that helps you to actually narrow down where you should go look.

How many bed and baths are you looking for? What’s the budget of what are your cash buyers looking for? So honestly, that’s a very good key point for a lot of people in the business, especially starting out.

Scott Bursey (01:08)

Welcome back to the Real Estate Pros podcast, powered by Investor Fuel. I’m your host, Scott Bursey. Glad you’re with us. And today we’re pleased to be joined by Carlos Frazier. Carlos is a real estate wholesaler, two years into the business. He runs his deals virtual, locking up homes in cities he doesn’t live in.

And he does it with a system. AI platforms and text blasting that reach sellers and buyers for him. Listeners, you can expect a clear look at how a lean tech driven wholesale business runs day to day. Carlos, welcome to the show.

Carlos Frazier (01:44)

Hey, nice to be here, Scott. Thank you so much, sir. It’s a pleasure.

Scott Bursey (01:47)

It’s awesome having you here, my friend. And to help our listeners get up to speed. Please give us the ninety second highlight reel of how your career ignited and where you’re pouring your fuel now.

Carlos Frazier (01:59)

Yeah, so it started with me just being a nine to five worker, man, every single day, working hard.

trying to take care of the family, trying to find a different way to create some passive income, And a buddy of mine was already into real estate wholesaling. So we used to talk every day. He would tell me, man, I’m getting into this, and he’s explaining it to me. And I got interested. So I started to take the courses, I learned about the business, I got very interested, and then here we are. Two years later, I have a business. I’m running a real estate company myself. we’re closing deals in several different states across the country.

So yeah, man, it’s been a heck of a run. it’s very exciting.

Scott Bursey (02:33)

Thank you for sharing that with us. And actually you have an ebook that you wrote as well.

Carlos Frazier (02:39)

yes, I do have a ebook. It’s out right now.

I have a link. it’s located in all of my social media platforms. but it’s doing very well. It’s teaching everyone out there who’s looking for a new way to create some passive income and create some wealth, how to start from A to Z with real estate wholesaling without bank loans, without a realtor’s license, and very little start money to get in there. I teach everyone from A to Z, man, how to get in there and learn this business from the ground up to get in there and become successful.

Scott Bursey (03:06)

Well, that is really spectacular. And what caught my attention about you, Carlos, was the way you’ve been able to take what you learned in two short years and turn it around and teach people. you wrote that ebook that helps beginners get their start in this business. Most people are still figuring it out at that point. You’re already handling the map for them to be quite frank. And taking that a step further.

Your whole model runs on AI and text blasting. Yes. Walk us through how a deal starts for you.

Carlos Frazier (03:38)

Okay, so when you’re using the AI platforms, everything is automated. So it’s mass text blasting. so what you do is you’re using skip trace genius and you’re using platforms like PropStream. So these platforms is where you go to actually get the information for these property owners, the address, their phone numbers, contact information. you’re putting all of this into your AI platforms, which then contacts all of your sellers for you.

So you’re not doing the cold calling like it used to be back in the day. We’re not doing the driving for dollars. you’re letting the AI platforms actually contact all of your sellers and your buyers for you with mass texting and emailing. so from there you can narrow down, it responds for you. you get your deals in, and then from there you can come in and close those deals without having to spend a lot of time on your cell phone or driving around for dollars. So it’s definitely a huge

advancement in the industry. So it’s been great.

Scott Bursey (04:34)

What part of that system does the work while you sleep?

Carlos Frazier (04:37)

really all of it. So your mass texting is still responding to your sellers or your buyers even while you sleep. so all of your responses to your yeses or your no’s, it’s already pre-programmed into your platform. So if you get a no, your AI system knows to kick it out. And if you get a yes, your AI system already knows to respond with asking maybe does the property need repairs? what’s your asking price?

things of that nature. So it completely runs automated even while you sleep. it’s awesome.

Scott Bursey (05:07)

Where can the system potentially break down for you, Carlos?

Carlos Frazier (05:12)

Where could the system break down for me?

Scott Bursey (05:14)

Potentially, yes.

Carlos Frazier (05:15)

I haven’t had any issues with the AI. I haven’t had any issues myself personally, but I can probably see if you don’t have an actual CRM system connected, so you’re getting complete overload with all of this information, right? You’re getting all of these leads coming in. You have mass texting, mass email. So if you don’t have your CRM system, which is maybe an Excel sheet somewhere where you can dump all of these yeses

and maybe separate your nose. You can create a cash buyer’s list to be able to put your list together to know when to contact who. I think without that, you’ll definitely have a hard time,

Scott Bursey (06:29)

When a city goes quiet on you, Carlos, what’s the first thing you check?

Carlos Frazier (06:34)

Man, well, when the city goes quiet on me, the first thing that I try to check is maybe what’s going on with the property value. I look at my comps, I look at what’s going on in the neighborhood, I look at what’s selling, what’s not selling. sometimes you may be tapped into a certain market where there’s just not a lot going on, So that’s a very big thing for anyone who’s starting out that’s getting in. You want to make sure that you’re checking these markets and checking your comps.

Make sure that you’re in a good market to invest in. that’s very important. Otherwise you’ll waste a lot of time and a lot of dollars in market dollars, that’s for sure.

Scott Bursey (07:08)

Carlos, this one’s been on my mind. You lock up deals in cities that you don’t live in. How do you pick the next city?

Carlos Frazier (07:16)

I try to look out there at the analytics. I go out and I try to see using AI, where are the hot markets right now as far as with real estate wholesaling? Where are the lot of flips going on? Where are a lot of properties already being sold? Where do we have gentrification going on and remodeling? I use that data and I put that in and I’ll go in and look at

Where some things are hot at, where’s the hotbeds, right? Also, another good thing is your cash buyer’s list. So this is a cheat code for myself. I tell all of my mentees this too. The reverse wholesaling is go out for your cash buyers first because they’re going to tell you where they’re looking to invest, how much they’re looking to spend. If you build that relationship with your cash buyer’s list first, that helps you to actually narrow down where you should go look.

How many bed and baths are you looking for? What’s the budget of what are your cash buyers looking for? So honestly, that’s a very good key point for a lot of people in the business, especially starting out. Check with your cash buyers. Look and see what it is that they’re looking to invest in, and that can also help you to guide you better into what markets to invest in and look for. So good information.

Scott Bursey (08:25)

Thanks for putting that on the table.

What are some possible threats that you’re watching closely when it comes to your operation?

Carlos Frazier (09:09)

Man, definitely the fluctuation in the market. right now with the economy, the economy plays a big role in our industry.

what’s selling, are there any investors, or people backing out, people are not buying as much. you always gotta make sure that you’re checking what’s going on in the economy, in the markets that you’re looking in. that’s always a big challenge for us in the industry that we’re in, regardless, whether if it’s fix and flip or it’s the bird method, wholesaling. real estate can be tricky sometimes, man, based off of the economy and what’s going on with the real estate industry. So that’s probably one of our biggest most

famous hurdles, right? So that’s always a nightmare for us to look up some

Scott Bursey (09:46)

Yeah, absolutely. Well, I appreciate you sharing how that works for us. Let me put this one on you. You reach buyers the same way you reach sellers. Yes. How do you build a buyer’s list in a city where no one?

Carlos Frazier (09:58)

Well, that’s a very good question. So it takes a lot of different strategies. I like to use different real estate groups. So when you’re on these platforms, all your social media platforms, a lot of them also have a lot of these big groups, right, that you can follow. But if you tap into some of those real estate groups, you’ll find a lot of groups that have

wholesalers that maybe you can partner with and do some JV deals with, as well as cash buyers that’s putting out there, hey, this is what they’re looking for. but it takes time. That’s one of the things. Real estate is not a get rich quick industry. So I like to tell people

You’re gonna have to take the time to build these relationships. It’s the same with any industry that we do where we’re selling, right? When you’re selling something, you want to build those relationships with your client. so with cash buyers, it takes time. I like to use all these different platforms to find my cash buyers, but I would recommend always using these AI bots because they do the same thing in reverse.

you can go to platforms that I use specifically is PropStream. So say PropStream, you can still go in and modify to cash buyers. It’s gonna bring up a list in whichever city you’re looking for of how many cash buyers are in that specific city. And from there you can dump that information into your Mass Texting AI buy and they will contact all of those cash buyers. Hey, are you looking for any other properties?

and when you get your responses back, you can build those relationships from there. there’s a lot of different ways, man, but with this new technology and with AI, it’s making it a lot easier to do these.

Scott Bursey (11:32)

Carlos, in your experience, what makes a buyer raise their hand fast?

Carlos Frazier (11:37)

I would say profit margin. Profit margin is very important. ARV is very important. your comps. So it’s not a good deal to me until a buyer makes it a good deal. can find a property out there that someone has a certain asking price for, right? But when you check the market and when you check your comps and the cash buyer, there’s no margin there for any profit. right there don’t have a good deal.

so I definitely would say you always gonna make sure that there’s room there for you and your buyer to make a profit. that’s what makes it a good deal. you always wanna make sure that that’s there. Make sure you’re ARV, you’re doing everything for the repair cost, so we know that there’s some money to be made there for both you and your cash buyer.

Scott Bursey (12:16)

Thanks for taking us inside that. Carlos, you touched on relationships. Curious, how much of your business runs on relationships?

Carlos Frazier (12:25)

I would say a hundred percent of the business runs off of relationships. I would say with those relationships, a lot of my leads, my seller leads, and a lot of deals that I’ve closed have actually come from follow-ups. So that’s also the key to building these relationships. sometimes you may reach out to a seller.

They have a lot going on. Maybe they inherited the property and someone passed away. There’s so many things going on in their life, right? So they may tell you, well, hey, right now it’s not a good time. I got so much going on. So you have to put those people in your system, maybe call back, try back again, right? And a lot of my deals have actually came through follow-ups, actually building those relationships. hey Scott, I was reaching back out just, touch bases. I know you had a lot going on. And maybe the time is right now for us to discuss.

how we can get that house sold for you. a lot of things isn’t going to be, right then and there, back and forth conversation. You building that relationship with them slowly, talking and reaching out to people, that’s a big plus in our industry for sure.

Scott Bursey (13:23)

That philosophy right there opens doors. Yeah.

Carlos Frazier (13:27)

Yes.

Scott Bursey (13:28)

let’s dive deep here. If a new wholesaler comes to you with a phone, a small budget, and ninety days, what would you tell them to put their money first?

Carlos Frazier (13:38)

The first thing I would sell them is bandit signs. So when I first started out, right, and I had a very small budget, I had a cell phone. Bandit signs was my best friend, right? So what I would do is I would put bandit signs in nice communities. Hey, I have a three-bed, two-bath, great investment deal or something like that, right? I would make these signs and people would give me a call.

Hey, I was wondering about that deal. It just sold. But if you’re looking for other properties, I can take your information and we can have some different conversations. So I always would say bandit signs, man. That was one of my first things I always use. I’ll put them in certain areas where I saw people were selling properties. I would put bandit signs in nice communities where people actually were looking to buy properties, and from there you can also create your cash buyer’s list.

And you can find sellers at the same time with little to no money. So driving for dollars, man. That’s what we used to call it.

Scott Bursey (14:33)

Thank you for that context. And Carlos, you have given us a lot of really good context here today. But is there any additional words of wisdom or some advice that you could give our listeners?

Carlos Frazier (14:45)

yes, like we were saying, the five Ps. Proper preparation prevents poor performance. So as long as you have your systems in place, you don’t want to just freestyle it. you want to make sure you have these systems in place. you got things that are running automated. You have your Excel sheets to already know when to follow up with certain sellers and certain buyers. as long as you’re prepared properly for this journey.

you’ll definitely be successful. I think that’s definitely my advice to anybody that’s just starting out for sure.

Scott Bursey (15:15)

Now that’s a winning recipe. Carlos, for those of our listeners that want to keep this conversation moving, stay in your lane, or collaborate with you on future deals, what’s the best way for them to plug into your pipeline and reach you directly?

Carlos Frazier (15:28)

definitely. I’m on all platforms from Instagram, TikTok, Facebook. You can put in my name, Carlos Frazier. First name, last name, I’ll come up. Reach out to me. like I say I have the ebook that’s available. I do call sessions, Zoom calls for any of my new starters that have any questions, you’re stuck somewhere you wanted to know, just to get some information from someone. Reach out to me on all social media platforms, Carlos Frazier, and I’m here to help you.

Scott Bursey (15:54)

Carlos, thank you for joining us today on the Real Estate Pros podcast.

Carlos Frazier (15:58)

Thank you so much, Scott, man. I appreciate you having me, sir.

Scott Bursey (16:00)

It’s been a pleasure. And to our listeners, we appreciate you. If you receive value from today’s episode, please subscribe. We’ll be filling your tanks with a lineup of elite guest, just like Carlos Frazier, who are accelerating and setting the pace for the rest of the industry. Until next time, keep your standards high and your vision clear. We’ll see you in the next episode, everyone.