Could you imagine making $73,000 Wholesaling houses?
It takes determination, focus, and lot’s of “grit” to succeed at Wholesaling houses.
When it comes to wholesaling Real Estate, consistent effort is not only a requirement…it’s the “secret sauce” for finding success and making lots of money in the business.
But for all the pain and struggles, the rewards are through the roof! We are advocates of hustling and getting out there to constantly (and consistently) market because we know it works!
Today you will meet Chris Rood, from the tribe who just made a whooping $73,000 dollars from his last deal and it only took him 3 hours to make this happen (and that includes driving time)!
You’ll also learn a very valuable lesson that he learned along the way.
Don’t miss this episode!!
IN THIS EPISODE YOU’LL LEARN:
- When Chris joined the tribe and how much he has earned since he started
- How he got into real estate and what drew him to Wholesaling
- Becoming the “source” of the deals (you’ll love this one)
- Why “speed” is the key to success in this business and how to apply these principles to your business.
- Finding motivation through listening (listening between the raindrops)
- Chris’ month to month stats and a lesson he recently learned that changed his business
- The importance of getting a mentor (Chris worked with many) to train you
- and so much more…
LINKS AND RESOURCES MENTIONED IN THIS EPISODE:
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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Cody Hofhine: Welcome to another episode of Wholesaling Inc by Investor Grit. Rhino Nation, I am absolutely excited about today’s episode. We have a wholesaler that is just crushing it in his market. He is in Lafayette, Louisiana. His name is Chris Rood. This guy has been in the tribe for I would say just a little over a year, maybe just a little under the year. We’ll get the full details. He’s a wholesaler and he’s on track to do a little over $350,000 his first year. Awesome, awesome stuff. So without more introduction, I am ready to deep dive and get Chris on the phone and on this podcast so we can rock and roll and help each one of you as our listeners do this exact same thing in your market. Chris, are you with me my man?
Chris Rood: I am here.
Cody Hofhine: Chris. Absolutely love it. So here you are. Is it been just a little under a year? A little over a year?
Chris Rood: Since I’ve been in a tribe or since I’ve been wholesaling?
Cody Hofhine: Yep, since you’ve been in the tribe.
Chris Rood: The tribe? I joined the tribe, I believe in April. It was either late March or early April of this year.
Cody Hofhine: Of this year? So less than a year. Quite a bit less. And you’re on track to do a little right around $350,000 your first year with wholesaling. Is that true?
Chris Rood: Yes, sir.
Cody Hofhine: You are the absolute man.
Chris Rood: That is true.
Cody Hofhine: I love it. I love it. I love it. This is huge, huge, huge success. Listeners, listen to everything that he has to say. We’re going to deep dive some deals today that are just going to blow your mind on what exactly he has done. We’re going to specifically break down one specific deal that I got to learn from. Chris, earlier as we were talking before we started this recording and I’m telling you this is absolutely going to blow your mind. So get a pen, a paper, a pencil, whatever it is to jot notes down cause there’s going to be some liquid gold, some absolute gold nuggets revealed on this episode. All right Chris. So first and foremost, what got you involved in real estate?
Chris Rood: Well I own a chain, a Quicklube car wash and mechanics shop where I live here in Lafayette. I was sick of a working 60-70 hours a week and about three years ago I said, “You know what, let me try this real estate game.” So I started buying single family homes off of MLS from realtors and I had some decent deals. I was getting deals that had 20-25% equity positions. I said, “You know what, there’s money in this.” I started renting them out, making some good positive cashflow. I’ll built up a portfolio of about 23 single-family homes. And then I came across wholesaling and I started watching a bunch of videos on YouTube and I said, “Man, there’s this got to be some money in this.” Because I started hearing people, seeing and posting checks on YouTube and it’s like, wow, is this for real?
So I started educating myself. I hired on Tom Krol and the rest is history. If you think you’re going to make money as an investor without being a wholesaler, you can but you have to realize once you become a wholesaler you become the source of the deals. As a wholesaler you become the source of the deals. So now that I’m a wholesaler, instead of buying deals off the MLS, I don’t even look at MLS no more because I mean those are just… That’s not even worth my time. I literally buy deals for 20, 30, 40 cents on the dollar. Now when before when I was buying them with a realtor, I’d have put in 30-40 offers to get a deal that maybe I was getting a 20% equity position. So if you want to get into real estate guys, it is crucial that you become a wholesaler. Wholesaling is where you want to start because from there you can do anything, you can get into rehabbing, you can become a landlord.
Cody Hofhine: Okay, so let’s do this.
Chris Rood: It’s unbelievable.
Cody Hofhine: I love this Chris cause I can’t agree more with you. Wholesaling is like the beginning stages to pick what the end game is and we are going to… I want you absolutely to help the listeners hear what it is you did. So let’s deep dive a recent deal that I believe, if I remember right, either just recently closed or you’re going to be closing on, but we’re going to talk about a deal where Chris, what is the end up? What are you going to be making on this deal?
Chris Rood: I should net $73,000 in this deal.
Cody Hofhine: $73,000. Hold on. You’re going to listen to a familiar sound that you hear from me and Tom all the time. Get ready. Rhino Nation and Chris, that my friend is a victory bell for an amazing, amazing wholesale deal that Chris has done. So we’re going to deep dive where he’s made over a $70,000 profit on one deal and we’re going to break this down. So let’s do this. So Chris, what does this look like? First and foremost, where in Louisiana did this take place? Did this take place in Lafayette where you’re at?
Chris Rood: No, this is a little town right outside of Lafayette called Crowley.
Cody Hofhine: Crowley.
Chris Rood: [crosstalk 00:05:40] Crowley, Louisiana.
Cody Hofhine: OK. So Crowley, Louisiana. A lot of probably cities that a lot of just like, “Holy smokes, we don’t even know these names.” But the best point about this is it doesn’t matter. There was a deal to be had here in this town Crowley and Chris found it. So Chris, how did you find this deal? What kind of marketing channel were you using to find this?
Chris Rood: This was an internet lead and here’s the key to internet leads guys. You have to be Johnny on the spot. Speed is key in this business because if you have a lot of competition in your market, we’re all doing a lot of the same things, what you can’t really teach is speed. I mean you can teach it, but when you guys get a lead, you cannot sit on it for one or two days. You need to call them right then and there.
Cody Hofhine: Okay, you’re saying PPC, right? Like pay-per-click or what do you mean by internet?
Chris Rood: Yep, PPC.
Cody Hofhine: Okay. So pay-per-click and then you bring up this gold nugget and that is, you’re saying, get back to these people super quick. What timeframe are we looking at Chris?
Chris Rood: Oh, less than… When I get the lead I call them. As long as I’m not on the phone, as soon as I get off the phone, I’m calling them. I may call somebody within five to 15 minutes of getting a lead.
Cody Hofhine: Okay, so five to 15 minutes.
Chris Rood: [crosstalk 00:06:47] And then just start feeling them out.
Cody Hofhine: That’s awesome. That’s a gold nugget. Listeners, you’ve got to listen to this. Between five and 15 minutes from the lead coming in. And so this was a pay-per-click. And do they reach out to you by phone? They found you on a website, do they now call you or are they filling out a web form or how does that look?
Chris Rood: Yeah, they fill out a web form and it automatically emails me.
Cody Hofhine: Okay.
Chris Rood: So then I’ll hurry up and I open up the email and then it has their email address with their phone number and you’ve got to call them right away.
Cody Hofhine: Perfect. So you call them. How did this conversation go? Is it something that instantly it was like, “Boom, I know this is going to be a deal. Let’s go out there and talk to them.” Or was this more of like, “No, it really wasn’t. It’s about building rapport and…” How did this all come together? What did it sound like the first conversation you had with them?
Chris Rood: Well, she called me and I listen to what they have to say and I listen for motivation and she basically told me her house got flooded and she just lost her job and she was really struggling. She didn’t… And on top of that she had just paid off her house three months ago and then we had a massive flood here in Louisiana. So not only did she lose her job, she paid off her house and dropped flood insurance and no longer had flood insurance and her whole house flooded. So she says, “Look, I really need money. Whatever you can do to help me out. I need money like yesterday.” So I said, “You know what? I’m going to come meet you right now.” I stopped everything I was doing. I drove straight to Crowley. I evaluated the deal and made her a quick offer and she took it right away.
Cody Hofhine: How far drive are we talking from where you’re at in Lafayette to Crowley?
Chris Rood: It’s going to be about a 35 to 40 minute drive.
Cody Hofhine: Okay, so pretty close to being backyard, right there within your area. 30 minute drive. You drive out to her and did that conversation goes smooth? Did you already feel like there was already a deal there on the phone? Or is it more, did it take place inside the home before you say you have an offer of $16,000? She takes it. How did you get to that point?
Chris Rood: Well, I listen. I listen to what she has to say and once she told me that she lost her job and she dropped flood insurance on her house three months ago, I knew that I was working with something. So I stopped everything I was doing to make it a point to go book a meeting with her and that’s what I did. I went straight, I dropped everything. I knew there was possibly a deal right here.
Cody Hofhine: Okay.
Chris Rood: Because you could hear and almost smell the motivation over the phone.
Cody Hofhine: Okay. So here we have a situation that’s pretty hard. This individual needs money because she dropped flood insurance and her house is free and clear, meaning she’s paid it off, but now she can’t do nothing. This thing is damaged. How damaged are we talking? When you say flooded, was this whole thing under water or what does that look like?
Chris Rood: It was about eight inches from the floor. So it was pretty bad. Yeah. And on top of that, Cody, she lost her job too.
Cody Hofhine: Yeah.
Chris Rood: So she lost her job. I mean it was a terrible situation and she wanted to move cause she was getting a transfer. She found another job and she just needed to sell. And she had no money and she wasn’t going to get a check from the flood insurance because she just dropped it. So she was super motivated.
Cody Hofhine: Okay. I like that. I like that. So you found some things that were going on, some motivation on why she wanted to leave.
The key thing that I love about Chris, and I know Chris as a friend, I speak to this guy almost on a daily basis. One thing I can point out listeners about Chris, this is super, super, super critical, is the fact that he is there to be an option for individuals. When they come to him and say, “Hey, I’ve got this going on, this going on, this going on.” Chris will always go out there and present himself as an option. He’s not always the option and he’s not always going to walk out with a contract, but Chris is also an individual that’s okay with that. Whether he gets the deal or not, he helps that individual find the right solution. And in this case, Chris was this seller’s best option. And so he puts this home under contract for $16,000 and then let’s go from there. So you purchased this? Did you have to borrow money for this? Did you close with traditional lending? What does that look like? Is it just your own cash? What is it?
Chris Rood: I closed on this deal today at 10 o’clock.
Cody Hofhine: Okay.
Chris Rood: With my own cash. It was 16,500.
Cody Hofhine: [crosstalk 00:10:57] So 16 grand pulled from the bank.
Chris Rood: It wasn’t a ton of money.
Cody Hofhine: Pulled right from your bank account. Go close on it. And that’s today?
Chris Rood: That was at 10 o’clock today.
Cody Hofhine: Good man. Good man. Now with that, I’m assuming you already know what you’re going to be doing with this home. Tell me now the end game, how that came to and what ultimately happened. What were you able to do with this home?
Chris Rood: Okay. So once I got the deal under contract, this is about two weeks ago, once I got under contract. The very next day, I brought my contractor over there to look and give me an estimate on the rehab cost. So he he walks in, right? And he’s like, “Oh my God, this house is awesome. My whole family grew up right down the road and it’s got a three and a half acres with a pond.” And I said, “Well man,” he kept talking about it and talking and I said, “Well man, if you want it I’ll wholesale it to you.” He goes, “Man, what will you wholesale it to me for?” I said, “I’ll wholesale it to you for 89.” And he goes, “Dude, I want it.” So I got under contract… The day before I got under contract from the original homeowner. The next day I got under contract with my contractor. So my personal contractor who rehabs on my deals is the one that bought it. So it’s just funny how things work out.
Cody Hofhine: Okay, so [crosstalk 00:12:01] 89,000 minus 16 that’s where you’re getting your $73,000 profit because you had a motivated cash buyer it sounds like as well that really, really wanted this home.
Chris Rood: Well I was going to keep it for myself and rehab it myself because full retail was worth about 140 to 160. But when he walked up and kept talking about it I offered him a wholesale deal on it and he signed a contract with me right there on the spot. So the day before get it under contract and the next day my contractor buys it.
Cody Hofhine: Now when is actually set to close on the home? [crosstalk 00:12:34].
Chris Rood: He’s going to close on the home two weeks from now.
Cody Hofhine: Two weeks from now?
Chris Rood: He’s already got his bank. Yep.
Cody Hofhine: That’s fantastic. Is this something he wants for himself? He wants to live in this home?
Chris Rood: He wants to live there with his kids. He’s moving from Lafayette to Crowley to move into this home.
Cody Hofhine: That is fantastic. Tribe and listeners across the nation, here’s a key thing. This is the best part about wholesaling. He has a home that he purchases and maybe to any other buyer or retail buyer, maybe he only would have sold it for 50,000 but sometimes you find like a gold diamond. You find this diamond in the rough where your cash buyer or your end buyer really, really, really wants this for themself and they’re able to pay a little bit more than what a traditional wholesale is because he really wanted it for himself. So Chris falls upon this opportunity, finds a great deal, and then on top of it finds a great, great fit for a cash buyer that wants it for his own private home and able to net $73,000 on this one deal. Chris, I can’t tell you how excited I am for you. That is more money than most people make in America for their whole year worth of work doing 40, 50, 60 hours a day. Now my guess is you probably spent at least 100 hours on this.
Chris Rood: I spent literally probably three hours from the time and that’s including driving time.
Cody Hofhine: Holy moly! [Crosstalk 00:14:06].
Chris Rood: Driving there, getting it under contract.
Cody Hofhine: That’s the point I wanted to make.
Chris Rood: The next day driving there again with my contractor.
Cody Hofhine: That is literally the point I wanted to make to my listeners. I knew you didn’t spend a hundred hours on this, but that is the best part about wholesaling. He spent… Did you say three hours?
Chris Rood: Three hours including drive time.
Cody Hofhine: So three hours including drive time to be able to profit $73,000. I don’t even want to do a math backwards and equate what that is per hour but that equates to a lot of money and it was all working out a deal with a motivated seller where you find a win-win situation and then finding out on the other end of things you have a great buyer that really wants this home. Chris, my man, I’m telling you, congratulations. That is absolutely awesome. You are a rock star.
Chris Rood: Thank you. Thank you. You know guys, this is a knowledge based business. If you guys are trying to figure this stuff out on your own, it’s not worth it. You can hire a mentor that can teach you this stuff in literally a couple of months and absolutely change your life. I mean this is so powerful. This information that you can gain from Tom and Cody’s mentorship is really a game changer. Where can you go and make this kind of money that fast? I don’t know of another business. Do you, Cody?
Cody Hofhine: Couldn’t agree more. No, no, no. I’m sitting here laughing and smiling at myself because I’m listening to my own story where I was in insurance and I made $19,000 my first year and it just didn’t cut it. It’s not enough. You know that. I don’t care what state you live in in the United States. $19,000 a year, with two kids and one on the way at that time, was not going to cut it. It just didn’t work with a mortgage payment, car payment, everything, food, diapers. It just didn’t cut it. And so no, can’t agree with you more. Wholesaling has been the way that I’ve been able to see my family more and I think I’ve shared this multiple times on the podcast, but I 100% this is what I live by. I love the word success.
Success to me, my definition is my own personal definition. It’s not how much money I have. It’s not how many rentals I have, but the word success has always been when my family sees me more than my employees see me and insurance couldn’t do that for me. But I will tell you, wholesaling has been the only way that I truly have found what I find to be success in my life. Real estate has been the only way that has helped me find my true meaning of success where my family sees me more than employees. Is that the same case for you too, Chris?
Chris Rood: I couldn’t agree more with you. Like I was telling you, I was working 60-70 hours a week, making a decent living, but I hardly ever saw my kids. I was working on Saturday and now I literally spend 60 to 70 hours at home now because I’m mostly at home taking calls and booking appointments. But I mean it’s a total life changing venture. If you guys are sick of your nine to five job, stop wasting your time. If you want freedom, if you want true freedom, real estate can make your dreams come true and you can do that through wholesaling. There’s not a better way.
Cody Hofhine: That is so, so, so motivational Chris. I couldn’t agree with you more. Tell my listeners this. This is one thing I absolutely love, this little moment right here is, if you could pick one book and I know we talk on a daily basis, so I know this is an easy answer for whatever you’re going to pick. But if you could pick one book that would inspire and change the mindset or just help individuals, our listeners, what would that one book be that you absolutely love and has helped you?
Chris Rood: Man, just one book?
Cody Hofhine: Just one book. If you can come up with [crosstalk 00:17:45]
Chris Rood: Can I say three?
Cody Hofhine: It sounds like you read a lot, which is good and that’s a good point to prove the fact that you are always reading. You’re not on Facebook, you’re not playing around. It’s like family, business, and then learning. But yeah, if you can narrow it down to… I’ll do this, I’ll meet you in the middle. Let’s negotiate here. If you could do two books, what are the two best books you could tell our listeners?
Chris Rood: Well and I know a lot of people already say this book, but I mean it is an absolute game changer and that’s Think and Grow Rich by Napoleon Hill. If you guys want to really become wealthy, you need to read that book. Not once, not twice, but at least six times. That book will absolutely change your life because making money is a spiritual game. It really is and it’s all about mindset. You become what you think about the most and this is all about what do you think about on a day to day basis? Do you think about playing on Facebook? Or are you thinking about wholesaling? If you’ve become absolutely obsessed about wholesaling to where that’s all you think about I guarantee you, you will make a killing in this business. I am obsessed. I know Cody’s obsessed. I know all the guys that I talk to who are crushing it in this business are obsessed and that’s the mindset you have to have. You have to love this with all your heart and soul. Read the book Think and Grow Rich. All the key diamonds and gold is in that book.
Cody Hofhine: Awesome. Awesome. And are you going to take me up on the offer of book number two or should we go with book number one?
Chris Rood: Book number two? I have to say if you read this book in conjunction with Think and Grow Rich, I would have to say… And Cody actually recommended this book, I never thanked him for it. And that is The Compound Effect by is it, Dan Hardy?
Cody Hofhine: Darren Hardy. Yep.
Chris Rood: Darren Hardy. That is a phenomenal book. Read those two books and they go hand in glove.
Cody Hofhine: I love it. I love it. I love it. I can’t tell you. You tell these books and whenever I hear these books from all of our people that we’re interviewing, I love how many of them that I’ve absolutely read and I couldn’t agree more. Think and Grow Rich, an amazing book that will just help your mindset go to where it needs to be. But then The Compound Effect, I can’t tell you how much I always recommend that almost as a first book almost every time because it’s the small and simple things and Chris is doing these small and simple things and he does them day, after day, after day.
Now Chris, before we end this, I also want our listeners to understand one big mistake, we talked about this beforehand, but listeners, listen to this. I want you to list your months, what you’ve done each month with wholesaling, and then listen to a couple areas in his months, what he made and after he goes through all the months, we’ll go back and tell you why he made zeros in a couple of months. Chris, take it away, my man. Tell me kind of your month to month stats.
Chris Rood: Okay. So March of this year, I did 47,000. May, I did 42. June, I made $88,000. That’s when I got cocky and I said, “You know what? I’m a back off on my marketing. I made a ton of money. I’m going to keep some of this money and not reinvest it.” Well, the following month of July, it dropped more than half. I only did 22,500 that month and then June I did one deal for 1,700 and then August I did zero and then September I pumped it back up to 30. But the point is I cut off my marketing.
Don’t think just because you’re making a lot of money that you can back off this. This is a marketing game. It’s all relative. He who markets the most wins. Simple as that. If you guys think you know you’re going to market it and you make a ton of money and then you’re not going to market the following month, it may not hit right away, but I guarantee your lead flow will dry up and you’ll strike out a couple of months and I did for two months straight. I did one deal in two months when I was averaging anywhere from five to 10 deals in the months before, and I learned a valuable, valuable lesson. I don’t care if you made $100,000 in one month, I would take at least whatever you’re comfortable with 10, 15, 20% of that and reinvest it back in the market. That’s the only way you’re going to scale up. You cannot scale up if you’re not reinvesting. I don’t care how much it hurts, just put it back in the market.
Cody Hofhine: Absolutely. I couldn’t agree more. The reason that I bring this up Chris, and I am so appreciative that you would share this. It takes a lot of courage to share some of the mistakes that each of us face. We’re not all perfect here, but what we can learn are some amazing gold nuggets from what Chris just shared and that is he was doing well and something’s stopped, and I’m going to use the word consistency. He didn’t stay consistent on his marketing. And this is all about that whole book. Going back to the book, The Compound Effect, the minute you stop staying consistent, momentum stops helping you as well. And then you have to start all over from ground zero and build that momentum again. And had he just stayed consistent, he wouldn’t have had that goose egg, that zero in August. He would’ve kept doing 20, 30, 40, 50,000 a month. But instead it dropped down to 1,700 and then zero. Which is, man, that was probably a gut check moment, wasn’t it?
Chris Rood: Absolutely. It didn’t feel good. It hurt my pride because I thought I was walking on water. I felt like, “Wow, this is pretty incredible. I’m making all this money.” And I got cocky, I rested on my laurels and I’ve learned a valuable lesson. I hope you guys listen and really think about what I just said and I don’t care how much money you guys are making, reinvest it otherwise you’re going to lose deals. Simple as that.
Cody Hofhine: Absolutely. Well Chris, my man, really. I appreciate your friendship. You are good man. I’ve absolutely loved the time that I’ve known you. And then more importantly, I appreciate you getting on this podcast today and helping our listeners learn from your successes and then learn from what is one of the crucial mistakes that so many of us, even myself, have done before and so thank you so much for your time today.
Chris Rood: No, Cody, thank you my brother. You are inspiring. You’re just an awesome human being. It’s a privilege to know you.
Cody Hofhine: Well likewise, likewise. So thanks again. Now Tribe and Rhino Nation, if you want to learn more about wholesaling and wholetailing, get onto investorgrit.com, that’s investor G-R-I-T.com and book a strategy call. We can help you do this exact same thing for your business and if we like what you have to say, we just might invite you to be part of the tribe. Be a Rhino with all these rock stars. Take care. Until next time, we love you. Rhino nation, take care.