How I Went From Selling Insurance to 7 Figure Wholesaler in Less Than Two Years!
In this throwback episode, Tom gets to put insurance broker turned wholesaling ROCKSTAR, Cody Hofhine in the hotseat.
We make him SQUEAL to find out the exact steps he took to generate over $105,000 in less than six months of wholesaling houses! In this episode, you’ll get to hear how Cody got his start with Wholesaling and has since built a 7 figure Wholesaling business. Man, what a difference just a few years make:-)
IN THIS EPISODE YOU’LL LEARN:
- How Cody found Wholesaling and started his journey
- The #1 reason Cody attributes to finding success in the Wholesaling game
- Best advice for ANYONE wanting to get into Wholesaling
- Some SUPER smart ways to build your cash buyers list
- The exact list (including criteria) that generated a $30k deal!
- What every Wholesaler needs in order to make money Wholesaling
- and so much more…
LINKS AND RESOURCES MENTIONED IN THIS EPISODE:
- Listsource – https://www.listsource.com/homepage/index.htm
- Craigslist – https://www.craigslist.org
- BOOK REC: The E-Myth by Michael Gerber
- BOOK REC: Profit First by Mike Micalowicz
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Tom Krol: All right everybody, welcome to another episode of the Wholesaling Inc podcast. I’m your host, Tom Krol, America’s number one wholesaling coach, and I’m excited to be here with you and I am super excited about our guest today. His name is Cody Heffen. Heffen. Did I get that last name right?
Cody Hofhine: Hofhine, Hofhine.
Tom Krol: Hofhine. I always mess up your last name, bro. What is going on with that?
Cody Hofhine: I don’t know. I don’t know.
Tom Krol: What is going on with that? Just remember hot one. I remember it’s the one the last time you-
Cody Hofhine: How fine!
Tom Krol: How fine that was it. How fine. All right. There you go. I’m out with Cody. Cody is an absolute rocket ship. He just started wholesaling. He’s never wholesaled a deal before. He’s only been doing it for… Cody, how long have you been wholesaling?
Cody Hofhine: I just joined your coaching back in May, so May 6th.
Tom Krol: May 6th and right now we are in the 1st of October. It’s been a very, very short time. That’s May, June, July, August, September. Four months, and that is really amazing because Cody has had amazing success and as you guys know today we are going to deep dive a deal. I’m super excited about that cause we’re going to get down and dirty right into the details. Cody can share some information about how he’s had so much success.
Cody, just for everybody to know, you’ve only started four months ago, how much money have you actually put in your pocket in that amount of time?
Cody Hofhine: Put in the pocket between assignments? Do you just want just actual closed in the pocket?
Tom Krol: Just closed in the pocket.
Cody Hofhine: Closed in the pocket. It’s probably, probably 105.
Tom Krol: Bam! 105,000 in four months. That is pretty incredible. We are going to pick one of those deals today and we are going to deep dive it. Very, very awesome. Cody, I have to ask you though, just before we get started, tell me a little bit about your journey. How did you get started or why did you want to get started in wholesaling? What was it that kind of caused you to make a turn in your life and get into wholesaling real estate?
Cody Hofhine: Great question. By trade, I own an insurance agency here in Utah and I lucked out. I got introduced to Salt Lake Real Estate Investors Association and went to the first meeting. It was for strictly selfish reasons. I wanted to build my insurance company. I had no interest in real estate, nothing like that. I just wanted to meet the investors so I can insure their properties.
From there I’ve been able to just connect with them and learn about what they’ve done. It’s always been intriguing because I’ll get to see what they purchased it for. Then I have access to the MLS and I’ve seen what they’ve sold them for and it just blew my mind. I thought, man, why am I not doing this, also, on my own time.
Tom Krol: I love it.
Cody Hofhine: That’s what made me get into it.
Tom Krol: I love it. That’s a great story. The success that you have has been absolutely explosive. I’m so proud of you, man. That’s awesome. I’m so happy.
Let’s talk about a deal. Let’s get right to the meat and potatoes. Obviously you wholesaled this deal. Now, for anybody who doesn’t know this, wholesaling just means that you find a seller who is motivated to sell their home quickly for cash. You put that home under contract and you sell the contract to a cash buyer. It’s very, very simple and anybody can do it. That’s really amazing.
The first thing I want to ask you about this particular deal is how did you find this deal? What was the marketing device that you used, and tell us a little bit more about how you found the seller in this house.
Cody Hofhine: Okay. The best way to explain this one, this is through a direct mail piece. I would say that’s 90%, that’s the heart of the business is doing direct mail. This came from what’s called a high equity list. I just find people with a high equity in their homes, put a list together, mail it out to them, and then see what kind of returns come back. There’s a lot, plenty of pound sand phone calls, but this one happened to be a good one.
Tom Krol: Absolutely. Yeah. I get those myself. This was a list that you used. What was the vendor that you use to pull the high equity list?
Cody Hofhine: The high equity list I pull through a company called listsource.com.
Tom Krol: Listsource.com, got it. Anybody can pull that list, and that was just basically a high equity list. Can you give us a little bit of the details of that list, some of the criteria that you use to actually pull it?
Cody Hofhine: Good gravy. Now I’ve got to really think about that.
Tom Krol: Come on. Come on. We need people to be able to repeat your success. Let’s go through it. Let me guess here. You probably pulled a high equity list. When you say high equity, like 40 to a hundred percent, something like that?
Cody Hofhine: 40 to 100% and my first list I pulled was for people that were 50 years of age and older.
Tom Krol: I love it.
Cody Hofhine: They tend to be the ones that have more money and more equity in their homes.
Tom Krol: Okay. The age criteria is key for us too. We find that most of the deals we do are in that group of people who are 40 or 50 or higher years of age. I love that criteria. Awesome.
Cody Hofhine: Then I’ll do an origination date of the loan, when they purchase the home, make sure that there truly is equity and that they haven’t hopefully refinanced in any of that time. I’m pulling what I think are good filters. Besides that, I’m trying to think of exactly what else is on that filter.
Tom Krol: Did you do just single family homes or town homes and condos and…
Cody Hofhine: The first list, yes, I did just single family homes. The second time, now that I mail a lot more per month, it’s into the multifamily, the duplexes, the triplexes, the condos, the town homes.
Tom Krol: I love it.
Cody Hofhine: The first time just to keep the mailing small so I could afford it. It started small, but then it’s grown into where I can pull a heck of a lot more.
Tom Krol: Cody. I love it. That’s excellent. That’s definitely enough information for people to pull a list and send a postcard out too. Tell us a little bit more about this. First of all on that mail campaign, do you remember what you spent on that? How much did it cost in total for you to send out all of that mail?
Cody Hofhine: This particular one, this is a recent one. This was off my big list. I send out about 15,000 mail pieces a month, so 30,000 every two months is my campaign every week. It’s anywhere between… It’s probably about, oh, 4,000 total in the list source to buy the list and then another probably $1,200 a week to do my mailers. I just split up those 30 grand or the 30,000 mailers every week over eight weeks.
Tom Krol: I love it, man. That’s a fantastic plan, Cody. That’s excellent, and obviously it’s working well for you. Excellent. Now, this is what we all want to know. Why did this seller decide to sell this home to you at a discounted price? What was the situation? What was going on in the house that that caused him or her to want to do that?
Cody Hofhine: This one was a unique deal. This was too easy of a deal. Maybe I should share some of my hard ones, but this one was an easy one.
I called the guy back and I usually sit by a computer and I’ll pull up the County Assessor’s website to kind of see what they have the tax assessed value at. Tax assessed value is usually about 15, 20% low here in Utah. It might be back elsewhere as well. It was shown that it was worth about 340 and as I was talking to them and just sitting there and asking all the questions. I have a script that I follow that I just really try to get some good answers out of them to see how motivated they are. When I came to the point of, “Hey, what do you think it’s worth?” He said 225 and I kind of dropped my jaw, I said 225 I think he meant to say 325 because this says it’s worth 340.
He’s explaining, “Oh, I just did granite countertops two years ago. I have a brand new Trex deck out back that I did last year. A brand new roof, brand new furnace, brand new AC. Yeah, it’s worth 225.” I just sat there and I wanted to make sure I said, “You’re saying if it worked out for me and it was something that I’m interested in, I could buy this for 225?” I wanted to repeat that so he understood that he said 225.
He said, “That’s right, 225.” He’s all, “I talked to a realtor, a good buddy of mine, and he’s a dominant realtor here.”
I like the Apple watch by the way.
Tom Krol: Oh, excellent. I’m with you.
Cody Hofhine: He said, “He’s a great realtor. He knows what he’s doing.”
I called him up and he says, “This area is selling for 250 so if you want to do a hassle free, just drop the realtor fees and just sell someone for 225.” I told them, “Yeah, I’ll come over and look at it.” I didn’t want to show my cards too early with happiness, but I went over to the house, walked through it and still played like the “am I interested, am I not” type cards. I said, “225 is that the best you can do?” He’s like, “That really is. I have to walk away with 225.”
I just sat there for a minute. I’m like, “You know what? I think that’s a fair offer. Let’s write that up for 225.”
Tom Krol: I love it. Okay, from there-
Cody Hofhine: There it is.
Tom Krol: Now, everybody wants to know, how much money did you make on the deal?
Cody Hofhine: This one just barely closed and funded, and I still pinch myself when I open up the checkbook or the checking account. This got me $30,000.00 and this was probably two hours worth of work.
Tom Krol: I love it. I love wholesaling. Wait, hold on, because we’re definitely ringing the victory bell for that one. [crosstalk 00:12:05] Absolutely. Hold on. Here we go. (Bell ringing).
Cody Hofhine: I love it. I love it.
Tom Krol: That is fantastic man. What’s amazing about that number… It was 30,000 on the nose, is that what you said?
Cody Hofhine: 30,000 even.
Tom Krol: 30,000 even. That’s amazing because that’s like average American salary a year. that is absolutely amazing, especially for two hours of work. I will tell you, wholesaling to me is just the most wholesome, honest way to make an absolute fortune in such a short amount of time. Congratulations because that is really an insane amount of money.
Let me ask you this question. With this deal, the way everything went down, what would you have done differently if you could go back and redo this whole entire deal from scratch from beginning to end? Is there anything that you would have done differently or not really? Where do you stand on that?
Cody Hofhine: That’s a good question because I ask myself this a lot. What can I do different? On this particular deal, everything went smooth. The one thing I probably would have done different is, I could’ve waited probably even another day or two to get some of the people, maybe call, make some more calls, pull some more buyers. I think that assignment fee could have been, I really think it could have been actually a 40 or 45.
Tom Krol: All wholesalers have that regret, myself included. I know there’s many times where I’ve said I wish I would have waited a little longer. Either way, 30Ks is great. If you were to redo this again, you’d probably just go backwards and wait a little bit longer on the sale side of the PA, of the purchase agreement, to get a little bit higher of an assignment fee.
Cody Hofhine: Absolutely. That’s the only thing I can think. Other than that, it really was just come up and pick up my house.
Tom Krol: I love it. That is so easy peasy lemon squeezy. How is not everyone in the whole entire country wholesaling houses? It’s the best way to make money. Hands down. [crosstalk 00:14:07]. Yeah, no question.
I want to ask you one final question. Anybody who is looking to get started in wholesaling, anybody who’s just kind of starting out. I know there’s a lot of people that they have analysis paralysis and there’s all kinds of things going out, doubts and fears. Does wholesaling and really work? What would you encourage someone to do when they’re just getting started in wholesaling?
Any advice or anything for a newbie or a rookie?
Cody Hofhine: Yeah, there’s a couple of things I would do. I would start by just going to your local real estate investors association. You can look up REIA groups. Every state, almost, has them. I would say start there, look at some of the people there, talk to people, start networking. The best thing about this and in any industry, and I wholeheartedly believe this, is the wheel never has to be recreated. The wheel has been invented.
Find a good mentor, a good coach, jump on it, pay him, and have him teach you so you don’t have to start over from the beginning or reinvent anything. It’s there. I put a plug out for you, Tom. I don’t know if they know that or not know that, but Tom Krol has been my mentor on this and I tell you, it’s an absolute game changer. I’ll make more money wholesaling this last six months of this year than I will my whole entire year as an insurance agent.
Tom Krol: That’s fantastic. First of all, I really appreciate it. I appreciate the plug. It was unsolicited, but I appreciate that. Thank you very much, and it’s been fantastic to watch it grow. Now I guess you’re selling your insurance business? Is that public yet or can I not really talk about that?
Cody Hofhine: No, it’s a good question. I had so many thoughts of that, and as of just recently what I did is I looked at it in the sense of, and I guess I’ll be open with you on this one, it’s the six figure income here as well. However, what I’m going to do is I’m just going to take home less and just bring in someone that actually manages business cause I started thinking about it. I could take 50 or 60 grand home, which would be fantastic. How many rentals would it take for me to own before I could have that kind of a side income? I’m actually going to-
Tom Krol: Absolutely.
Cody Hofhine: own this and let it keep running, but wholesaling is going to be my absolute main focus where Cody Hofhine’s doing that every single day.
Tom Krol: I love that because have you read the book, the E-Myth by Michael Gerber?
Cody Hofhine: You know, I bought it. I have not read it yet. Right now, I’m setting up all my profit first accounts from that book that you gave me.
Tom Krol: I love profit first. Here’s what I would suggest is, on that point with the insurance companies you may want to take a look at, because Gerber will tell you exactly step by step how to get that insurance business from a really hands off. Also the wholesaling business. I think that’s fantastic. Cody, it’s amazing. Your success is amazing. I’m so happy that you’re coming on here and sharing it. So many people have a scarcity mindset. They don’t want anybody to know what they’re doing. It’s really out there. We really like to kind of push people into sharing. This has been an awesome adventure with you. I’m so proud of you and it’s been awesome.
Cody Hofhine: Thank you.
Tom Krol: Being able to help you get there has been an honor and a privilege. I really appreciate that opportunity. For anyone else who’s out there, if you want to just absolutely explode your wholesaling business right away, go to Investor Grit, investor G R I t.com. Click on the application tab. If we like what you have to say, we might even invite you into be a [inaudible 00:17:24]. God bless everybody. We’ll talk to you soon.