Is Direct Mail dead?
We all know that Marketing is the lifeblood of Wholesaling. As Wholesalers, we are ALWAYS looking for new and creative ways to find deals. There are so many different ways to find deals out there but our preferred method (and one we teach the tribe) has always been Direct Mail.
Well, besides knowing Direct mail like the back of our hand (yes, we are FANATICAL about stats), it always produces great (and consistent) results. That’s not to say other forms of marketing don’t do the same thing. We’ve just found Direct Mail to be the most consistent and reliable often yielding the BIGGEST assignment fees and the best deals!!
Is all that changing? Could Direct Mail possibly be…gulp…starting to die?
In today’s episode, I put Cody Hofhine in the hot-seat (my chance to get him back) and we talk about a NEW marketing channel for him that has recently yielded a $73,000 deal! With Cody being the “go-giver” that he is, he lays it all out for you, step by step, in this Podcast!
Trust me, if you are a Wholesaler who is struggling to get more deals (with BIGGER assignment fees) this could be the most important episode you ever listen to!
IN THIS EPISODE YOU’LL LEARN:
- Are the days of direct mail quickly coming to an end?
- How to make deals without actually seeing the property
- Where is Wholesaling headed…and how to get in early on new trends
- What is Wholetailing?
- Are good deals a thing of the past?
- How to find cash for your deals in as little as 30 minutes
- How to become the “only” solution for your prospects (and get TON’S of business referrals in the process)
- and so much more…
LINKS AND RESOURCES MENTIONED IN THIS EPISODE:
- Todd Toback
- Bill Rafter
- BOOK REC: The Slight Edge
- BOOK REC: The Compound Effect by Darren Hardy
- BOOK REC: Shoe Dog: A Memoir by the Creator of Nike
- BOOK REC: Rising Strong by Brene Brown
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: Hey guys. Welcome to another awesome, no fluff, no BS episode of Wholesaling Inc by Investor Grit. We are going to crush it today. I’ve got a guy on the phone I know you’ve heard of, Cody Hofhine. Cody, are you there?
Cody Hofhine: I am here, my man.
Tom Krol: All right guys. So here’s the deal. Today we are putting Cody in the hot seat. No fluff, no BS. I’m not going to waste time talking about Cody’s sad story. We’re going to get right down to the meat and the potatoes because I know that, that’s what you guys want to hear. So we are going to pick his brain. He just did a deal where he made a net profit of $73,000. $73,135 and 45 cents to be exact. I want to tell you exactly, step by step, exactly how he did it so that you can have the same exact success and you can replicate it and you can crush it right now. For anyone who’s joining us, if you don’t know what wholesaling is, wholesaling is the fastest way to make a fortune in a super short amount of time without really knowing anything about real estate and without using your own money or your own credit.
And we give you the step by step instruction how to. It’s all about finding super discounted properties that everybody says don’t exist. And then making a fortune with those properties, in a very short amount of time. So let’s get right down to the meat and potatoes. No fluff, no BS. Cody, how are you doing today?
Cody Hofhine: Not too bad, thank you.
Tom Krol: Good.
Cody Hofhine: Absolutely excited to be here today.
Tom Krol: Excellent. Excellent. All right, let’s get right down to it. First of all, I know you are in Utah. What city was this deal in?
Cody Hofhine: This was in a city called Roy.
Tom Krol: Roy?
Cody Hofhine: In just Utah. So maybe about 30, 40 minutes away from my actual residence.
Tom Krol: I love it. Roy, Utah. So first of all, the first thing that we want to know is a lot of people say, well, you know, they say, “Well Tom, Cody, these deals, nobody wants to sell deals for a discount right now.”
You know, that was back a few years ago when there was a big financial disaster, but there are no good deals anymore. Demand is high, inventory is low. So, my first question is, obviously all deals start with a motivated seller. Somebody who wants to sell quickly for whatever reason. The first question we have for you is, how did you either find this seller or how did this seller find you? And try to be as specific as possible because we want to really make sure that people can, replicate what you did.
Cody Hofhine: Absolutely. First they hit on a key point. There are plenty people out there that say that, there’s the chicken littles, right? The sky is falling. I love those people because then it leaves even more deals for me to go out and find. But this particular seller, this came from a channel.
We talk about different marketing channels all the time. This one comes from a fairly new marketing channel that I absolutely love and that’s from Facebook. So a lot of times you’ll see like advertisements come up when you’re in Facebook. That’s exactly how I did this. I market through Facebook. This individual ended up finding this ad. They clicked on it and filled out a web form. I met with them and from there it was just sitting down and negotiating a deal.
Tom Krol: Okay, so let’s just slow down a little because that’s a lot of information. Let’s go through step by step. So first of all, you said Facebook. So now Facebook, are we talking about it’s an actual ad. It’s not like a post that you posted on your page. It’s like you went to Facebook and you did an ad.
Now first of all, a few things. Did you do the ad yourself or did you hire somebody or what did that look like?
Cody Hofhine: That’s a great question. I don’t do any of this. Like if I want to succeed and do deal after deal, after deal. I need to delegate. So no, I do not do these ads. It’s not a post. It is an actual Facebook ad and that is done by a third party. So I actually hire that out. I do not touch it. He does it.
Tom Krol: I love it. Very, very cool. Now the next thing is Facebook sounds expensive. Is it a $1 million, $10 million? I mean, I’m a little being a little facetious here because I do know about Facebook, I use it myself, but how much did it cost? How long have you been running Facebook ads? Is it a big fat, expensive channel or is it something that you kind of do as a Ninja? Like, tell us a little bit more about the expense of running ads on Facebook.
Cody Hofhine: Okay. So, with Facebook it’s very cost effective. It’s so much cheaper than actual like pay per click, which can cost a lot. So this in comparison, it started off at like 14 cents every time someone hits my ad on Facebook versus on the internet, like pay per click, it’s like $70 every time someone clicks on my ad. And so I love Facebook for how cheap it is. And yeah, it can be as simple as paying someone 1000 bucks to manage this for you every single month. And then I do quite a bit of it. So I put about, $1,200 worth of money to have him use as like my budget every single month, for people to be clicking on.
Tom Krol: So okay. So, that’s awesome. So, you spend about $1,200 a month?
Cody Hofhine: Yes, 1200 towards my budget but then a thousand to him to do it for me.
Tom Krol: Okay, so you pay him a thousand and then there’s also a $1,200 on top of that?
Cody Hofhine: That is correct.
Tom Krol: Okay. So not super cheap but definitely cheaper than direct mail I would imagine for your market. Okay that’s awesome. Now the ad, if somebody doesn’t have that kind of budget, they want to do work directly with Facebook. Can you give us like a gist of, first of all, what does the ad say? Number one. And then number two, is what is an ad? Does it go to your website or is it just to go to a form? Or tell us a little bit more about that. If anybody wants to, you know, they want to just get down and dirty and do it themselves. And not outsource this. What does that look like?
Cody Hofhine: You know that is a hard one to answer because, I don’t understand Facebook. Like that’s the best part about it, is I know nothing about it. I just know it works and my ROI is fantastic, which I mean by that is return on investment. But what I can tell you, it’s so niche and so targeted that he’s able to put my ad out to exactly the type of sellers I’m looking for, so that only they see my ads. It’s not everyone in Utah seeing my ad. It’s very direct, very niche on how and who sees that ad. If I were to say to do it by yourself, I really, I couldn’t give you any background cause I just don’t do it. I don’t know it. So, that probably doesn’t help our listeners too much other than, I know you can reach out to any Facebook marketing company out there.
In fact, this might be something we actually get our Facebook marketer on our podcast. If I could tell you anything, it’d probably be best. I’ll ask these questions, so our learners can hear exactly step by step how it’s done.
Tom Krol: Okay. Yeah, that is awesome idea, let’s do that. Okay. Yeah. Perfect. So let’s do that. Let’s get our Facebook guy, cause we both use the same guys everybody and this guy is phenomenal. I will tell you that my internet leads are through the roof. I’m doing deal after deal, after deal. And what I love about Facebook, and Cody you could probably say this too, if you agree with it, is that what’s great about the internet leads is that the conversion rate is through the roof and the profit margins are through the roof. So these are like the easy deals that are big, which is very, very cool. So and I think actually.
Cody Hofhine: Less competition Tom, to you tell the truth. Like I don’t see anyone on these appointments. It’s usually just me on these appointments.
Tom Krol: I totally agree. And the other thing too about them is that they’re super profitable. They’re super easy. And actually, I think for the first month ever since we started working with our Facebook guy, is that this is going to be the first month ever that one of our other channels, other than direct mail actually outperforms direct mail, which I am super stoked about. So, all right, so let’s get back on point. So let’s do this. So first of all, okay, so the seller contacts you now. First of all, Cody, do you use, when the seller fills out the form, or do they call you or is it go to live answer or do you go to voicemail? Or is it a form that one of you get or your acquisition manager get? What does that process look like?
Cody Hofhine: Yeah, so that’s done all through our CRM, our customer relationship management system, which we use a company called Podio.
Tom Krol: Got it.
Cody Hofhine: So what happens is, they fill out this form, this form automatically gets entered this database into Podio. And then yeah, we reach out to them by phone. So I don’t get back with them with an email. I actually have my team get back to them by phone, and figure out what’s going on. And they reply to a simple ad that just says we buy homes, cash. Like that is our simple ad and it shows a picture of a home and that’s it. And then they fill out a web form.
Tom Krol: I love it. Okay, very cool. So, all right, so the seller calls in from Roy, Utah. They have a house. My first question is why was the seller selling? Because I know this, you know, wholesaling and finding discounted properties is all about the seller and the and the situation. The impending event, if I don’t sell by X, then Y is going to happen. So tell us a little bit of the background of why was this seller actually selling.
Cody Hofhine: Surface. This goes back to your podcast, which is so true. Surface was, we’re thinking about moving and that’s exactly how they said it. They said some numbers, there was equity in the home. So we booked the appointment. When we go sit down with the seller, my team goes out there, sits down with the seller. And from there, the true reason was no, it’s no longer, we’re just testing the market and we’re thinking about selling. No, they actually needed to be gone in two weeks and my team went over multiple times. Saying, you know what the best way on this is, list this with a realtor. See what you can get for it that will net your best money. And she’s like, I can’t, I have two weeks. We’ve got to be gone. We are relocating, we got new jobs. And so two weeks is perfect. We made the cash offer, they accepted and that is it. As simple as that.
Tom Krol: So I just want to highlight something that Cody just said. Guys, Cody’s team, you know, they do over a hundred thousand dollars a month in profit and he’s an amazing all-star. So I just want to say this, what Cody just said was so important. This originally came out of the Peter Conti David Finkel book, which is, they call it in that book, they call it reversing. But always, always, always, you’re never trying to be a deal creator. You’re trying to be a deal finder and when you’re chasing the deal, it runs away from you.
Just like trying to catch a dog. When you chase a dog, it runs away from you. When you run away from a dog, it chases you. Exactly what he just said, just shows the level of expertise because they said “why not work with an agent?” So one of the biggest tricks to wholesaling and being a deal finder rather than a deal creator, is eliminating every other option except working with you, which is backing away. When the seller, instead of trying to convince them to work with me, they’re saying, “Hey, why don’t you work with somebody else?” And now the seller is convincing Cody that he should give them their money. His money, rather than him convincing the seller to give them the house. So, that is the key. That is such a key point, is you always want to be walking away from the deal and finding out why they’re really selling.
It’s so critical, so that you’re not chasing deals that they’re chasing you. So I want to point that out because, as you’re building rapport with the seller, you don’t have to be there making it all about the number. Because remember guys, as wholesalers we will always lose on the number. We don’t give the highest price. We have our services, we pay cash, we close fast, we pay the closing cost, we buy as is. So, there shouldn’t be any convincing anyone of anything. So I just wanted to point that out Cody. Cause that is so important that you said that to the seller, Hey listen, list it with an agent it’ll take a little bit longer, you’ll have to do some showings and but you know, you’ll get a higher price and that is the key. So I really love that. So all right.
Cody Hofhine: Well, Tom, one thing to add to that real quick, and I think this is critical, is being okay that you’re not the option all the time. It is okay. Like, I’ll present myself as an option and if I’m not the option, I truly, truly, truly am there to make this situation good for them. Whether I’m the option or not. And I truly do have a belief system in place who no matter what your upper like power is that you, you’re what your faith is. My true belief system is I’m there to help this individual and if I am the option, great, and if I’m not the option, I’m okay with that. And I’m okay also leading them the direction that they need to go. And then I come to find out, I get more and more deals from this.
It’s like the law of the harvest and in it’s best practice.
Tom Krol: I couldn’t agree more. And it really shows that you have an abundance mindset, right? So you guys, this is another key point is that if you believe that we’re all going to the same puddle and more for him, it means less for you and, we all have thin bowls and there’s a little tiny puddle, you’re going to be in a scarcity mindset, which means that you’re going to be afraid of losing the deal, and you’re not going to have that confidence and that abundance mindset that’s going to say, you know, you don’t have to chase this deal. If you have an abundance mindset, you know there’s an ocean of water, and we have 10 gallon buckets, all of us, and there’s more than enough for everybody.
I think that’s so, you know, that’s so key. It’s so key. You know, being a go giver and doing this with an abundance mindset is really key, which is why we’re out here giving out this information because there is no such thing as competition, only collaboration. So, all right, so awesome point. I love it. Very, very cool. So now, so you make the presentation to the seller. They talked to you, you guys have built a rapport, you have the house under contract, you know, tell us a little bit more about the price structure, how you got to the offer. Did they give you the price, did you give them a price? What did all of that look like?
Cody Hofhine: Yeah, so we made a cash offer, now not knowing a huge bit, this is a new County for our team. We just barely jumped into this County not too long ago, maybe a month before we found this deal.
And so we really truly didn’t know what the retail value was going to be on this home. But yeah, we structured a deal where we put it where we felt safe enough to say, Hey, as a cash price, like we feel like this is going to be our number. And from there, what is crucial and key is we actually purchased this home. We have transactional funding all for our deals. We closed on this home and we now own this home. Right when the sellers moved out, we hired a company to go clean the house a little bit and then we hired another company to stage it. And by stage it, I mean put simple things like a couches, maybe some pictures on the wall, just make it look like a home so people can have a vision when they walk in this home like, Oh look at this. This is how our family is going to be sitting and here’s where the TV’s going to sit and here’s the dining table. And they can start to see the vision because we’ve staged it simply for it.
Tom Krol: Well, okay, so let me just back up a little bit.
Cody Hofhine: Okay.
Tom Krol: So, the first thing is, in the negotiation, who gave the price to who, did you guys like have? And I also want to say you guys before I asked Cody this question, Cody just said, I mean this is just liquid gold, everything that he’s saying because I want you to hear something that is so important. What he just said. If you guys just hit the back button by like 30 seconds twice and you’re going to hear what he just said, is one of the number one reasons why there are people who come into this business and do deals right out of the gate and just crush it because of what he just said.
He said, “You know, I didn’t really know what the valuation was, but we just kind of had an idea. And then we put the property under contract for as low as possible.” Right, so, here is the deal. Don’t become an expert. You don’t have to be so concerned with the exact valuation and becoming like a licensed and bonded and insured appraiser. Just put the property under contract for as low as possible and then you’re going to want to sell it. Whatever your exit strategy is for as much as possible to make as much profit as possible. So, the one key thing that Cody said that was so key again, was he didn’t really know the true exact value, which is so key. So, I just wanted to point that out. The other thing too is first of all, were you in this appointment or was it one of your acquisition managers?
Cody Hofhine: This is my team going out there, that did this and they did this all by themselves and we ultimately put the home under contract at 137,000 and then I’ll get to the specifics. But yeah, this is all done by team. I don’t go on these appointments.
Tom Krol: Well who, so, when you were giving the price, when they were giving the price to the homeowner, who came up with the actual offer? Like who was that the seller who made that number? Or was it you guys? Or how did that work?
Cody Hofhine: It starts by just the negotiation conversation that we always have. It’s the same every single time. And I would tell you the truth is we always want them to see what their price is, cause we want to see if it’s going to work. Again, our goal is to be a win, win situation.
But they came in at a price at 160,000 and we knew we just couldn’t do it cause we, it just didn’t work for us. And so we ultimately put out an offer and said, you know what, we can’t do the 160 but what if we could do 120,000 and that’s where the negotiation started.
Tom Krol: So, they gave the price first of 160.
Cody Hofhine: They did, yes.
Tom Krol: Okay, so you guys, key again, liquid gold. Write this down. Who gave the price first, was the seller. Very important. I just want to slow down for one second here. The seller gave the price first, not the investor. That is so key. Always allow your seller to give the price first. We always, we go by what’s called the rule of seven that we do not give our price, in my company, we do not give a price until we have asked for the price for the home, from the seller at least seven different times.
And we eventually get into conversations where we say, if the seller just won’t, they just persist. We’ll say, well, you know, we don’t want us to give you the number we’re the investors, I mean we’ll start at $100 and go up from there. And we kind of like joke around about it. We learned that from Bill Rafter, in our tribe. So, always the rule of seven, so I love that. Okay, so you have the house under contract and you had it under contract then, so you made them an offer of 120 and then I guess they countered. And what ultimately did you get the house under contract for?
Cody Hofhine: This one ultimately went under contract for $137,000.
Tom Krol: 137 K. Now you also said that on this particular one that you guys actually purchased the home. Now I know there’s a lot of people who are out there who are going, oh my goodness, but I don’t have credit. I don’t have money. So how the heck did you come up with $137,000 to actually close and buy in this home, plus the closing costs and all that. So how did that work?
Cody Hofhine: This is a great point to bring out to our listeners. I just get transactional funding and you can borrow that from either like, your traditional hard cash lenders that will charge you a higher percent. You might have family members that have stash of money sitting in a bank that they can use. On this particular one, this was used through what I just said, a traditional hard cash lender that charges two points and 12%. So, to make math easy, let’s say you borrow $100,000 from a hard cash lender, you would pay three grand for one month of using his money. So the two points is considered a percent for each point. So 2% and then also the 12%, which is 1% a month. So, you add those three points together. 3% of 100,000 is $3,000, is what it costs for that 100 grand.
Tom Krol: So, I want to be crystal clear on a few things. I want to say this to everybody who’s listening, the first thing is, everyone freaks out when they hear about hard money lending. Like it’s some big complicated math equation, like quantum physics that you can’t figure out and is not available to you. As wholesalers and as coaches in this industry, Cody and I run into the same two types of people all the time. We constantly run into people who are saying, “I have these deals and I need money, where can I find it?” And then another group of people who are like, I have a ton of money and I’m only making one or 2% in a bank. Who can I lend it to?
So here is the deal. I want you to start off this whole thing by knowing that if you need cash, it is everywhere. It is everywhere. There’s private lenders, family members, hard money lenders and what Cody just described, the 1% and 12%, this is easy, simple math. The title company will help you figure it out. It’s readily available. There are sources for hard money and private money everywhere, so do not be nervous about that. Cody, I think we should probably have a podcast about like maybe with some hard money lenders, like people who want to lend. Do you think that’s, what are your thoughts on that?
Cody Hofhine: Absolutely and I’ve got plenty. Again, it’s easy. I don’t want our listeners to ever feel like it is hard to find money for your deals that you’re doing. It’s not, it really is as easy as finding the McDonald’s.
Tom Krol: I promise you that if you put a good deal under contract to buy, there is, there is money available, and we like to always, you know, one thing guys is when it comes to real estate investing, there’s different laws and regulations all over the place. So always, always, always, no matter what you hear on this podcast or from any coach or guru or training seminar or coaching program or anything, go and check with the local real estate attorney first who’s in the state where you’re performing transactions. Run all this stuff by them first.
But here’s the bottom line. Just know this, hard money is everywhere. We always like to acquire some sources of hard money first before we go out looking for deals. So we know we have it, but it’s super, super easy. It shouldn’t take you more than 15 to 30 minutes to figure that out and to actually find a ton of resources, just by asking around for exactly that. And if you have a good deal, again, there’s tons of money everywhere so don’t let that stop you. Don’t be nervous about that. But all right, so you get the home under contract and then you ultimately, so on this particular deal, you actually bought the home with hard money.
Cody Hofhine: I did. So I bought that, put it under contract closed on it and then we put it, it’s called instead of just the word wholesaling, like that art of finding the deeply discounted property. Yes we use that but now we use a word called wholetailing, where you combine wholesale and retail together to get the word wholetail. Right. So we put it back. Oh did I hear a semi bell back there?
Tom Krol: I was just going to say we’re.
Cody Hofhine: I love the victory bell by the way.
Tom Krol: I love the victory bell. It’s very cool. We have a new victory bell actually, cause I moved my office. But I just want to tell you guys, like you guys, this wholetailing stuff is amazing. Wholesaling is great, but wholetailing is just simply the art of just, without rehabbing the property, just buying it and putting on MLS for the highest cash buyer. And what it ultimately does is creates a feeding frenzy around your deals. And it is just amazing because instead of making, you know, 10 or $20,000 per deal, now you’re making 20, 30, 40, $50,000 per deal or even more. And it’s absolutely the coolest thing in the world. So, wholetailing essentially means that you bought it Cody, right? And then, you just sold it, I guess through an agent on MLS or something like that.
Cody Hofhine: Correct. Put on the MLS, had an agent list it and originally why we had to come up with our numbers is we thought this home would be worth around 180 maybe 190 and anyways, that was our number. Our realtor afterwards says, why don’t we try putting this at 199,000 and we thought, great, this is going to be awesome if we can get this. And this home was already in good condition, so it wasn’t like a home that needed much rehab, it is in great shape. That’s why we staged it to make it look like a cozy home already. And we put it at 199 and this ended up driving up, where multiple buyers, retail buyers, wanted this home. And the final price that we put under contract was for 216,000, as is. We didn’t do one thing to it.
Tom Krol: Wow. I love it now, okay, so that definitely gets the victory bell. Wow. That’s amazing brother. All right, so, that’s a total profit. I don’t have a calculator in front of me, but it sounds like you did that 73,135 bucks and 45 cents?
Cody Hofhine: Correct. After like the loan costs and all that fun stuff, closing costs, a net to us of $73,135 and 45 cents. But the key thing that I want our listeners to understand, is you can’t turn a bad wholesale deal into a good wholetail deal. It still starts with finding a good deal. If the deal is not good from the beginning, it doesn’t matter. Wholetailing is not going to change that for you. So make sure you always have a good deal right from the beginning.
Tom Krol: I totally, totally, totally agree. And you know, one thing that we always say is 10K all day, which means that you know, you always want to start with a margin of at least 10K and then typically, but I will say this, if I could have gone back and wholetailed the majority of my deals, amazing.
I mean, I don’t even want to think about it. I just did this with my brother Todd. We were putting some numbers on wholetailing deals first thing, versus other exit strategies. And it’s like, oh my goodness. So yeah, it’s eye opening. I’ve got a wholetail deal I’m working on right now and we can talk about that one another time, but awesome. Very, very cool. I love it. So, you guys, that’s more money than, $73,000, that’s more money than most Americans make in an entire year. So let me ask you this question, Cody, from beginning to end, from first contact to getting your check in your hands, what was the total amount of time that that took you?
Cody Hofhine: Let me look at this real quick. So for the time we put it under contract, it was 13 days later that we closed on it. And then from there, it took a month and a half, the reason being is because of traditional lenders and all that stuff. So yeah, from the end buyer, our retail buyer closing on our home was another like 45 days. So let’s say 15 days on top of that, let’s say 60 days, let’s say two months total from when we put it under contract, and we had a check in our hand for $73,000.
Tom Krol: That’s amazing. And the whole time you were, you know, getting dirty with paint and granite countertops and dry wall and saws and dumpsters and putting on a new roof and all that stuff. Right.
Cody Hofhine: Wrong-o, bongo.
Tom Krol: Wrong is right. Right, exactly, so the whole thing is, it may have been a two month waiting period, but the beauty of wholetailing is that you’re not rehabbing the property. So that’s amazing. And $73,000 in less than 60 days. I mean, Holy smokes and congratulations man. That’s awesome. So what are you going to do with that money?
Cody Hofhine: That will just keep going and pushing forward with that, we don’t take it all home. A lot of people are like, oh, you go on a great vacation. We’re really smart. So whether that means acquiring some rentals, whatever it may be. But I just love that I have cash available from these deals to now really cherry pick my best deals and keep them for a rental portfolio. And that’s really my direction.
Tom Krol: You know, it’s so amazing you should say that because one thing I’ll tell you guys is that as wholesalers, as you get more and more cash, one thing you get to do is really cherry pick your pipeline for rentals. You know, people talk about good rentals at a few percentage points. They’re like, oh, you know, rentals would be great with X, Y and Z. And it’s so funny because you know, what an agent will call a good deal for an investor for who’s looking for a rental. You know, it was like a few points below retail price. But it’s so funny cause as a wholesaler, you know, you come across these home run deals where you’re paying 30 40, 50, 60 cents on the dollar. The ROI when you can pay cash for a property like that is, I mean my goodness, I mean talk about really, you know, extrapolating and just getting this thing. Just exploding your success is when you start taking the cash from wholesaling and wholetailing and you start putting it into free and clear rental properties. I mean you guys, it’s really, I love it.
So, I want to have a followup call with you with that 73,000 and what rental property you bought and what the ROI is on that. Sounds fair?
Cody Hofhine: I would love to do that. It’d be great for our listeners to learn that.
Tom Krol: All right, so one last question before I let you go. I want to know, tell me, what is and I will tell you guys this, I’m telling you right now, Cody and I are close friends. We do this business together even though I’m interviewing him, and he’s interviewing me. We do this podcast together, but I wanted to specifically, cause I heard about this Facebook deal in Facebook is kind of new for both of us. I wanted to pick his brain specifically about this deal, but one thing that you’ll always find is, you are the average of the five people you spend the most time with. So I spent a lot of time with Cody. We spent time together, and he’s an awesome inspiration in my life. He just, you know, he came into the business and crushed it.
So, one thing that you always notice about successful wholesalers and about successful people all the time, is that they’re always, whenever you ask them this question, they always, they don’t have to think about it, they can just know it right away. And we haven’t practiced this podcast. So this is an off the cuff question that I didn’t prepare Cody for ahead of time, but I guarantee you have an answer. So just check this out guys. So Cody, what book are you reading right now? Or what is a book that you just read that you could recommend to everybody? The whole tribe, the rhino nation. Everyone who’s listening. What would be a good book that you could recommend right now?
Cody Hofhine: A good book, right this second that I’m rereading because it’s that good is, The Slight Edge.
Tom Krol: Oh yes!
Cody Hofhine: The Slight Edge. It’s one of my favorites.
Tom Krol: Did you recommend, hold on, I want to see if that one’s in my library.
Cody Hofhine: I recommended that one to you.
Tom Krol: You did. You did. Right. Okay, so wait, let me just see if I, what is that book about? Remind me, because I know.
Cody Hofhine: The Slight Edge, almost derives and kind of goes together with The Compound Effect by Darren Hardy. Right? But The Slight Edge, is just talking about what makes a difference between, and you can compare this with anything, but what makes a difference between like a wholesaler that’s doing six figures every month and a wholesaler that’s making five grand a month. And really everyone thinks, oh, there’s such a big gap. It’s got to be something big. It’s not. It’s little things and doing them consistently. And then that gives you the slight edge, right? Where big Mo, instead of, we call it big Mo, when momentum comes to help you out, big Mo comes and visits town like and starts pushing you.
Tom Krol: Right, it’s so true. So, this is so key. You guys, I’m telling you for sure, like less of the other things and more of reading and spending time with awesome people and yeah, Cody, great reminder on The Slight Edge. I actually think, I do remember for sure, I don’t see it in my library, but I will order it today and yeah, that is amazing. I’m going to definitely read it and right now one book that I’m reading is, anybody who wants to keep up with our reading lists, cause I’m reading Shoe Dog by Phil Knight, the guy who built Nike. I just finished Rising Strong by Brene Brown, which was an awesome book.
I definitely strongly recommended it, especially if you are starting in wholesaling and you’ve been struggling, you know she gives some really good insight. It’s not really a business book, but it’s a great book to give you some insight about, you know, some of your thought patterns. But awesome. All right brother. Well thank you for the book recommendation. I will definitely buy it 100% and I will read it this time. I don’t know why I don’t have it. I keep looking for it but.
Cody Hofhine: It’s a goodie, by Jeff Olson.
Tom Krol: Jeff Olson. I am going to definitely read it 100%, so thank you for your time today and letting us pick your brain and letting us put you in the hot seat. Thank you for being so specific with the answers.
Cody Hofhine: I love it.
Tom Krol: We’re going to go from there man, thank you very much, and hey, $73,000.
Cody Hofhine: This goes out to you, rhino nation. We love, love, love our listeners.
Tom Krol: Very cool. All right guys, if you want to find out more about exploding your wholesaling business right now, if you want to stop learning and start earning, you want to crush all of your goals and you want to reach those destinations with excellence, then go to investor, grit investor, G-R-I-T.com, right now. Click on the application tab for our coaching. If we like what you have to say, we might even invite you into be a rhino. All right, everybody, talk to you soon and have a great week.