Justin Mulanax is an action-oriented tribe member from Tulsa, Oklahoma. He’s been a member of the tribe since April of 2016. However, even if he has only been a member for a little over a year, he already has one major accomplishment under his belt—a massive $10,000 payday! In this episode, discover how being obsessed with the process of wholesaling–from marketing to seeing the deals through–have made all the difference
Justin first learned about the exciting world of wholesaling from his girlfriend’s dad. While it seemed pretty straightforward at first glance, Justin soon realized there is more to wholesaling than meets the eye. He discovered that if he wants to close more deals, he needs to focus on two key things—taking action and consistent marketing.
- At first, Justin thought things need to be perfect before he would act. However, after he embraced the “progress not perfection” mindset, things start to turn around.
- He got a call from a seller he made an offer to 14 months prior. When he met with the seller, he offered a price that’s “uncomfortable.” (He was willing to shell out $77,000 but he started the negotiations with a $70,000 offer and worked his way up).
- His technique worked like magic as the seller accepted an offer that’s only 60 percent of what the property was actually worth!
- Once he acquired the contract, he took action by blasting out emails and sending out text messages. He also went the extra mile by making as many as 70 follow-up phone calls. His efforts were rewarded when 7 potential buyers showed up!
His obsession with marketing and taking action has made Justin’s wholesaling journey truly lucrative. However, aside from the two basics, there are so many other nuggets of wisdom you can get from his story. Learn as much as you can and it just might be the push you need to duplicate his success!
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
Subscribe to Wholesaling Inc
Cody Hofhine: Welcome to another episode here on Wholesaling Inc. My name is Cody Hofhine. I’ll be hosting today’s podcast and today, listeners, Rhino Nation, get ready for another absolute game changing podcast that will help each one of you that are listening today. Now, especially those that might be a little inconsistent on marketing or you feel a little bit of the roller coaster with your wholesaling business. This one is going to deep dive and help each one of you realize just how important is to stay consistent with marketing.
Speaker 2: Today we have Justin, and I hope I say this right, [inaudible 00:01:27] and he is from Tulsa, Oklahoma. Justin is single, for all you tribe member, just kidding, he’s dating someone. Don’t laugh Justin, don’t laugh. Justin, this isn’t a dating site and then we have a, Hey, he’s been in here, he’s been a try for a little over a year now and he’s done three deals and he has made a little over $18,000, in those three deals. We’re going to have Justin join us today, and talk to us a little bit about what he’s been able to do, how he’s been able accomplish and then we’re going to deep dive, a deal so that you can learn step by step, how you can take action in wholesaling.
Justin, my man, how you doing today?
Justin: I’m doing great. Cody, how are you doing?
Cody Hofhine: Doing well. So how’d you like that little prep? I didn’t want to sell you off that we’re here to do a dating service. I hope I didn’t get you to red over there.
Justin: No offense here. We are [crosstalk 00:02:17].
Cody Hofhine: I love it, my man. How are things in Tulsa, Oklahoma?
Justin: Things are going great. I mean I just closed two deals so I’m happy with it.
Cody Hofhine: I love it, and we are going to deep dive one of those today. Super quick, kind of give us a background. We talked a little bit about, before we started this podcast, give us a little bit of background. That you joined back in April, 2016 and kind of share the whole story. I think so many people may paint a picture that it’s all a happy, it’s all awesomeness, but kind of share your story and let people know exactly how it was for you.
Justin: Yeah, okay. Well right now I’m doing drywall. My grandpa’s company, he’s a contractor for apartment complexes, doing drywall and I hate it. That’s actually one of my why’s. Well, I kind of operate more off of like an obsession, we talked about this a little bit. Instead of a why, kind of like the book by Grant Cardone, Be Obsessed or Be Average. Just noticed that everything in my life, everything that was I was successful at, I was absolutely obsessed with. So I kind of, you know, and with now with wholesaling and I’m always listening to podcasts, always reading now anyways, I wasn’t a reader, but now I’m more of a reader and looking at checks on Facebook, it’s really all I care about. I’m absolutely obsessed with wholesaling. And then how I kind of got into it, I didn’t even know about it. My girlfriend’s dad, he’s actually been an investor for about 25 years and he told me about wholesaling, explain the process to me. And I was immediately hooked. I mean, I was completely interested in it and you told me more about it and I actually worked with him for awhile. I did some marketing for him and, really just trying to learn the process. So that’s how I got started.
Cody Hofhine: Awesome. Now tell us what happened, how you were able to get into this. You did a deal super quick and kind of let’s go through the story.
Justin: Well, working with my girlfriend’s dad, I didn’t really have the experience necessary to really go off on my own. I’m in Tulsa, he’s in Dallas, it was kind of a hard working relationship. I came across the Theo Davis podcast, it really changed my life completely. I could relate with him, he was nervous, he didn’t know anything that he was doing. Really, after that podcast, I made the decision, I’m going to go off and do this on my own, and now you know, I’ve made $18,000 doing it. And really to take that first step, I kind of had the notion that you have to be perfect before you could go out and take action. And that’s really the most destructive mindset that you can have. Theo had a progress, not perfection mindset. He wasn’t worried about how he looked, he wasn’t worried about looking like an idiot. He didn’t really care about being perfect. He just went out there and did it and made mistakes and learned that along the way.
Cody Hofhine: Theo Davis is one of my favorite guys out there, I love that guy. He was a huge part in my success as well. Was listening to his humble approach and how he just went out there and serve people and love people. And he was very successful super quick in wholesaling because of that approach. So I know exactly what podcast you’re talking about cause that has inspired a lot of individuals.
Cody Hofhine: That’s awesome. So, then from there you kind of went on a dry spell. Let’s kind of tell them a little bit about, from there it took a while before your next deal. What was it that went on during that timeframe?
Justin: Yeah, I really just wasn’t consistent with my mailing. That’s really the gist of it. I wasn’t consistent and I should have been. I would market and I didn’t feel like I was getting an adequate return. So then I would actually, I was looking for other lists to mail to and just different things. And I would take like two to three weeks trying to sort a new list and then I kept doing that over and over. And looking back, if I would’ve kept marketing, I would’ve had probably two or three extra deals than what I have now.
Cody Hofhine: Was kind of like a scarcity mindset? Were you thinking, Aw man, I can’t keep investing in this? I mean, what was it that was going on and then ultimately, how did you overcome it?
Justin: Really, what was going on was I was just kind of putting mail out there. It wasn’t really a scarcity mindset. I would market and I was thinking, I should get at least 20 calls and I would only get 10. Then that would kind of really aggravate me. Like I told you in the beginning, where I came across to be obsessed. I just started being obsessed with wholesaling and I just pushed through and I kept marketing and then now I’ve got these two deals. I intend to stay obsessed and keep going with that.
Cody Hofhine: I love it. I love it. So let’s fast forward now. Just recently you did two deals. Let’s deep dive one of them and let’s help our listeners. Let’s help Rhino Nation today, understand something that they can do, some kind of action that they can take today and implement and go get their first deal. Let’s deep dive one of those two deals.
Justin: Yeah, I think they’ll be more interested in the $10,000 one.
Cody Hofhine: Let’s [inaudible]. Well holy smokes, you already jumped the gun. I’m still going to save the bell though. So we already know the number, but we are going to save the bell. Let’s look at that. So with that being said, how did it start out? Did it come from mail? What kind of marketing channel did it come from?
Justin: Okay, Initially this one came from a mailer, but let’s kind of get into the beginning of this one. It actually started out as, I got a voicemail, I was driving to work and obviously the most important thing is getting to these leads as quickly as possible. Or they’re calling somebody else, so I called them back. It was the son and daughter actually of a seller that I talked to over a year ago. [crosstalk 00:07:43] Fourteen months prior is when I spoke to him. Their dad actually passed away and they actually were calling me regarding an offer that I sent, like I said 14 months prior. They were asking if I was still doing real estate. I told them absolutely. Then I asked them, what do you think about this offer that I sent you? They were like, we think it’s acceptable. I was like, are you kidding me? They just totally, totally accepted an offer that was, I believe 60% of what the home was actually worth.
Cody Hofhine: Sure.
Justin: Yeah, so…
Cody Hofhine: What was their motivation behind it? Did they not want the property? Was it like a home that was in distress, like it needed a lot of repair? Like what was it that helped you understand that these people were motivated?
Justin: Well, the situation with the foundation. The foundation, it was really bad, but it was under warranty. It was very bad and they just, kind of didn’t want to deal with it anymore, is really how that happened.
Cody Hofhine: Okay, so you sent out an offer, which by the way, for those listening, that’s why we always tell people send out offers. So if someone’s not interested, what does it hurt? Just send out an offer, And that way you can send it out by mail, by email, whatever. Like, “Hey, attached is an offer. If you are interested, this is something we could pay.” Right? He took action. Justin sent out an offer, it did get accepted. Fourteen months later they find this offer and say, “Hey, let’s call this guy back and see if he still wants it.” That is absolutely amazing. That’s what’s so fun about real estate is you don’t realize what’s going to come back. You just don’t know. But had you not take an action, to send that off in the first place, you never would have got this deal. That’s incredible, my man. Keep going.
Justin: All right. Yeah, and then obviously, I had to get in front of the sellers, as quickly as possible. Then I got to the house and there was only one that was able to make it. It was the son and daughter, but only one was able to make it, I thought that it was going to be both. So I got there and I was talking to the son, and he was really just trying to find the pain. I talked about his dad and I really tried to stay on the pain as long as possible. So, I couldn’t get them to give me the number first. I could hear Tom in the back of my head actually, telling me, get the number first from them. So, I wanted to be at 77, I started a lot lower. What I like to do is come up slowly, start low and come up slowly. [crosstalk 00:10:03] I think it’s really painful for myself, because I feel like if I’m uncomfortable with the price that I’m putting out there, I feel like they’re going to be more comfortable to receive it. If that makes sense.
Cody Hofhine: No, I love what you’re saying. I hope everyone that’s listening right now is truly taking notes. Unless you’re driving, but taking notes of what he just said. Is starting low, you’ve got to start at a price that’s uncomfortable. I love that you said that, “I was uncomfortable”, like start with this price that makes me uncomfortable, because that’s just the starting point and then you can work your way up. So keep going, my man. I love this already.
Justin: So I started down at 70 [crosstalk 00:10:38] that I wanted to be at 77. Maybe should have started lower, but that’s just kind of where I wanted to be.
Cody Hofhine: Where were they at?
Justin: Where were they at? Oh, the offer that I sent was actually for 84.
Cody Hofhine: Okay and were they thinking 84 or were they thinking you need to be at 90? I mean, did they tell you any numbers at all?
Justin: Oh, sorry, I thought I went over that. Yeah, they actually wanted to accept the offer for 84.
Cody Hofhine: Oh, okay, perfect.
Justin: So like I said, I started at 70, he rejected it. Went up to 72, he was like, “nah, you know, I don’t think that’ll work.” I was like, what about 75? And he was like, no. Then at this point I was cringing at 77, and he actually said, “well, you know what, I think that I think that’ll work.” And he accepted the offer, for 77 and that’s exactly where I wanted to be. So, I was golden on that.
Cody Hofhine: Well, what’s interesting about this, if you kind of look at the whole structure of it, you started at 70 he’s at 84, what ultimately took place? Did you even think about this? You guys met where, in the middle?
Justin: Oh yeah.
Cody Hofhine: You know what I mean? From 84, he came down seven, from 70, you went up seven and you got your max allowable offer. Your 77, like this all I want to pay for it, right? So you were smart. You ultimately showed that you got uncomfortable and you came up seven grand and he got uncomfortable and he came down seven grand and you created this win-win. I think it worked out perfect.
Justin: Yeah, absolutely. So he accepted that and then we had to get it signed up. I did have, to wait a couple of days because his sister was out of town. But you should always wait for the decision makers to be there.
Cody Hofhine: Such a key thing for everyone listening. What he’s saying is, if there’s multiple people in the decision making, try your absolute best, this worked out for him, but try your absolute best to make sure they both are on the appointment with you.
Justin: Absolutely. Yeah I was actually under the impression that they would both be there, cause they were both on the phone call, that we initially talked. I totally thought they would and I should have asked, but I didn’t. Then you know, the next step I lasted it out to my buyers, using Mailchimp. I also texted the buyers their preferred text. What I’ve found that really gets a killer response, when you’re sending a text, is I usually send the address, the ARV, and asking and also obviously, you want to mention that you’re selling the contract, not the property.
Cody Hofhine: Yep.
Justin: Yep. Also, on this one I made about 70 phone calls, because a lot of them opened the email, and they didn’t reply. That makes me angry.
Cody Hofhine: But here’s something key. A lot of people that are wholesalers are investors, they send out that email and if they don’t open up, they’re not taking the time to reach out to these investors and ask why they didn’t open it up or why they didn’t respond. So you’re doing something that’s over and above majority of the investors out there, which is ultimately going to lead to what you’re going to get to is finding your buyer. So tell me about it.
Justin: Yeah, eventually I held the inspection and I actually didn’t know if anyone was going to show up on this one. I was nervous, because I couldn’t get anybody to just tell me, yes. I got a lot of, “I’m going to try”, I got a lot of, “might be able to swing by”, I was so frustrated. Oh my gosh, I couldn’t believe it. I’m thinking I’m going to be the only one there, which was bad because the seller was actually at the property. So I was like, I’m going to look like an idiot in front of the seller, not having anybody come by, and I told him I’m going to have a showing, or have an inspection.
Cody Hofhine: Yeah, inspection.
Justin: I actually got seven buyers showed up to this one, so.
Cody Hofhine: Wow.
Justin: Yeah, seven buyers showed up. It was funny because, I couldn’t get any of them on the phone to tell me, but seven did show up.
Cody Hofhine: And what were you marketing that contract for?
Justin: I just set $6000, so I believe we’re at, 83.
Cody Hofhine: What 83? Okay, so you said it out of 83, seven people pop out to the wood works to come to this inspection and they go through it. What did they… because we obviously know the number, you shared that earlier, but how’d you get it from six to 10 did they do that on their or did you go for highest and best? What did that look like?
Justin: So the first buyer got there, and he actually gave me asking and then that was great. You know, I got excited, okay well this is a good enough deal, to at least get asking. So I was going to make six grand at that point. Another buyer came in and he was obsessed with this property, he loved it. He gave me $3000 higher. His offer was $3000 higher than asking. So he stayed the entire hour I held the showing. He actually, because he saw all of the buyers that were showing up over that hour period, he actually raised his offer an additional $2000.
Cody Hofhine: Wow.
Justin: Yeah, that was amazing.
Cody Hofhine: Did it end up being this cash buyer you openly went with?
Justin: No, this is the funny part. No, it wasn’t him. I actually got an offer the next day for 18 grand, or $1800 higher than his offer. So I texted him and I let him know I was going to be accepting another offer and he didn’t reply until like way later. I was like, what’s going on here? He actually sent me a lovely,, colorful text with a bunch of cuss words.
Cody Hofhine: Just mad, okay?
Justin: Yeah, he was totally mad, totally angry with me and told me, you don’t understand the game, you don’t know how this works. I have the contract, I’m going to say how it works.
Cody Hofhine: Right, right.
Justin: So, this is where it got stressful. The buyer that I did accept his offer, he wanted to go out to the property again. He was partnering, he had a partner on this one, so he wanted to go out to the property with the partner. So, I let that happen, I spoke to the seller, and that was awkward. I got him out to the property and then his partner was out there and they were looking at it for a little bit. After that little appointment, I asked him, how do you feel about the property now? Is everything good? He told me we’re good to go. So I was thinking in the back of my head, great. Then, oh my gosh, a couple of days later, I received another text from him. This property was, like I said, under warranty, the foundation was under warranty and he wanted the company that had the warranty with this property to come out and look at it for a third time. So, oh my gosh, so that really…
Cody Hofhine: Holy smokes.
Justin: Yeah, so that was really making me nervous and he just wanted to make sure everything was covered. So yes, that company comes out and I had the seller and the buyer at the property as well, so they’re all in there at the same time and that really created an awkward situation. Then so they’re there for about an hour and eventually, we were told that it needed an additional 12 piers. So here I’m getting…
Cody Hofhine: Holy Cow.
Justin: …I’m getting extremely nervous. I’m like, there’s no way, I’m going to make this money now, when the buyer didn’t really say anything, he just kind of got in the car and left. So I was like, what is going on? So I called him and he was like, well let me talk to my partner. I had four days to deal with this pit in my stomach, and I finally received a text from, and I didn’t even want to open the text. I was totally nervous about it and I finally found the courage and he was like, we’re good to go. I was like, are you, you know, I was…
Cody Hofhine: You ride up through this.
Justin: Couple of days and I got it. He could have, but he didn’t even ask me to come down on price so, and he actually closed on the other property as well.
Cody Hofhine: Awesome.
Cody Hofhine: Awesome. [crosstalk 00:18:20] So that’s where, at the end of this, let me make sure my math, cause you said ten, but it sounded like you could’ve got more than ten on it. What did you end up getting on this one?
Justin: I ended up getting ten.
Cody Hofhine: $10,000. You know what’s coming my man, you hold on one sec.
I bet you’ve been waiting for this victory bell for a long time my friend [inaudible]
Justin: You got to yell like Tom does.
Cody Hofhine: Tom has a bottle, he has energy that I don’t think anyone can reproduce. This guy’s got energy like no other. When I call him like, man, I thought I was energetic until I just got off the phone with you, come on. So I love that guy. He always energizes me. Awesome stuff. So $10,000 and then shortly after you do another deal, you said with this same buyer, which is awesome, but I love your story here and I want everyone that’s listening to this. Remember it doesn’t just come easy. The process is simple, but you still got to take action. And does that mean they’re not going to have gut check moments? No, he had plenty of gut check moments along the whole way. A guy wanting to go see it multiple times. Finding out there’s going to need to be, foundation work involved, wondering about if he’s going to make any money now because of it like this went to the wire and ultimately all of that work, all of that stress, led to a $10,000 payday, which is absolutely awesome.
I absolutely love it. I know as we’re sitting here, Justin, that there’s a lot of listeners that are sitting and thinking, Aw man, I wonder if I’m giving up early on some of these deals where if I would’ve just rhinoed through it, I could have still made a paycheck out of it. Well, that’s awesome stuff. Now tell us this, we always like to do this, this is a tradition of ours. On ending this podcast, tell us, what is it, if you had to start over again, what’s one thing that you could tell our listeners, that you would make sure that you would either not do again, or that you would do something different? If you had to do over again, what would you do different?
Justin: Yes, and on these, I actually lost two or three deals this way, and that’s why I’m going to mention this, because this was my biggest mistake. Do not have favorite go-to buyers. Do not have favorite go-to buyers. It’s a cancer.
Cody Hofhine: Don’t be a cash buyers employee.
Justin: Yeah, exactly. What I would do, is I would show one or two buyers the property and they would pass up on it. So I would just assume that it wasn’t a good deal. In this business, you’re not supposed to assume anything. So, I would just assume it wasn’t a good deal and then I wouldn’t blast it out to the rest of my buyers. That was the biggest mistake, I thought that I would lose buyers if I blasted it out. Which [crosstalk 00:21:01] the case on both of these deals that I just did, when I blasted it out, there was a good 50% that rejected it. So if you’re only showing two or three buyers and they reject it, there’s a good chance, you’re throwing away money.
Cody Hofhine: Wow. Such a good point.
Justin: Oh yeah. I absolutely threw away, like I said, two or three deals, maybe even four because I decided I was just going to show, one or two, three buyers and they would pass up on it. So, okay, it’s not a good deal. That’s really the worst thing you could do.
Cody Hofhine: Ouch.
Justin: Yeah, I almost lost a $4,500 deal because [crosstalk 00:21:38] I didn’t think it was a good deal, I really didn’t. I made the phone call and I told her on the phone, I don’t think this is going to work out, and she’s like, sorry, I can’t hear you, let me call you back later. If she didn’t do that, I would have lost a deal.
Cody Hofhine: Ouch. Ouch. Such a good gold nugget to everyone listening. Make sure you send every deal out to every cash buyer, because there’s some people that are just going to love deals. There’s other people that just don’t love the deal. It doesn’t mean that it’s not a deal, it’s just it wasn’t the right deal for that cash buyer. Hence, why we always tell our tribe to get a minimum of 150 cash buyers. I love it. Now, what about a favorite book? If you were to say a book that has helped you, and I know one of them for sure is, “Be Obsessed or Be Average”, by Grant Cardone. Great book. Is that the book you’d still tell people like, yes, that book has changed my life, or is there another book in addition?
Justin: Well, actually I’d like to talk about “The 10X Rule”, I’m about halfway through that one. ,I love what it talks about and it talks about, setting a goal that is 10 times what you originally want to accomplish, and then taking 10 times the action that it would take to get the goal 10 times higher.
Cody Hofhine: I love it. That book on audible by the way, is really, really good because it’s Grant Cardone’s voice and he throws in things that are not in the book that makes it kind of humorous.
Justin: I would actually do a quote real quick from that book and the quote, well it talks about why successful people seem lucky. The quote is “luck is just a byproduct of those who take the most action”, and that really got me. I.
Cody Hofhine: Love that. So, so, so true. Well, Justin, my man, I will tell you because of your action, and because of your consistent marketing, now you will continue to see deals flow your way. And to everyone out there listening, if you feel like you’re inconsistent with your deal flow, ask yourself one question, are you staying consistent with your marketing? Nine times out of ten, it’ll all come back to marketing, because if you’ll stay consistent with your marketing, you will then be consistently getting phone calls. You’ll then consistently be on appointments, you’ll consistently put homes under contract, and consistently collect checks. And that’s the name of the game. So Justin, thank you so much for sharing your story today. I know a lot of people are going to connect with this podcast.
Justin: Yeah, no problem. I really enjoyed doing it.
Cody Hofhine: Awesome. Awesome. Now Rhino Nation, I will tell you, this is another awesome episode that you can download, you can re listen to. There’s plenty of gold nuggets here for each and every one of you to remember, to take part to your wholesaling business, so you can take massive action and go out there and get deals, get homes under contract. Justin has shared so many golden nuggets in this episode that’ll help you doing so. And if it’s something that you are looking for help to build your wholesaling business, you’re looking for a way to really make this work. Go over to our website, www.wholesalinginc.com, where you can book a call with our team, and be able to reach out to our team. If we love what you have to say, we just might invite you to be part of the tribe.
Also, for all tribe members. Tickets are going absolutely fast. In fact, there’s not many left. For those wanting to go to the Orlando event, the live event, the big event, where everyone can 10 times their money next year, by learning from the best of the industry that are going to be up on that stage. Go to www.wholesalingsummit2018.com, and book your tickets. Reserve your spot, so that you can go to that amazing event, and learn how to really up your game in wholesaling,. So we will talk to you next time when we catch you on our next podcast. We’re excited that Justin’s well on his way and this can be each one of you. Take massive action and it will change your life. Take care Rhine Nation, see you.