Katharine Kilpatrick has only been part of the tribe for 4 months. However, she’s already an absolute rockstar! The savvy wife and mother of 2 earned $4,100 from her very first deal and will be earning another $11,000 on a deal she’ll be closing in about a week or so. In this episode, Katharine shares several nuggets of wisdom—how she was able to close one deal after another, the things she wished she could have done differently, the books and principles that helped her succeed, how tithing changed her life, and so much more!
Prior to joining the tribe, Katharine gave wholesaling a try. She sent out less than a thousand mailers and the response was abysmal —zero percent response rate! After stumbling upon the Wholesaling Inc. podcast, she became so inspired that she decided to give wholesaling another go. And it turned out to be one of the best decisions she has ever made!
- She sent out direct marketing mail using the tribe postcard and received a reply from a very motivated absentee owner with 30% or more equity.
- The seller is a developer who also lives in North Carolina and wanted to get rid of some of his real estate investments.
- She quickly found a buyer for the deal and easily earned $4,100!
Her quick wit and ability to recognize and capitalize on her mistakes has made Katharine’s venture into the exciting but volatile world of wholesaling seem effortless. Use the tips, insights, and wisdom she has shared in this episode and you are well on your way to becoming the next wholesaling rockstar!
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: Hello Rhino Nation. Welcome to another episode here on Wholesaling Inc. My name is Cody Hofhine. I’ll be today’s host, and I am super excited for this episode. We are going to deep dive yet another wholesale deal so that each one of you listening can get one step closer to your first deal or add gold nuggets to what you’re already doing to get multiple deals this upcoming month.
So today we have Katharine Kilpatrick. She lives just outside of Asheville, North Carolina, married and two kids. She has been in the Tribe for about four months and she is an absolute rockstar. Doing deals consistently, she’s already closed on her first deal. She has another one closing in a week or so. And then just recently put another home under contract. So she is well on her way to build this consistent wholesaling business where she ultimately can do multiple deals consistently every month and bring in those big checks. So Katharine, without any more, how the heck are you? And let’s start filling in some of the gaps of what I may have missed.
Katharine K.: That sounds good. I’ve been here since late July and things have been going really well. It took me a little while to get up and going and get the marketing out but my phone started ringing like crazy and it’s just been a lot of sticking to it since then.
Cody Hofhine: Well let’s talk about that because I think what’s unique about your story, well maybe not so unique in the sense of, well maybe some of the issues that that happened right at the very beginning of what we talked about, but is these stories are so common. I think so many times we think it’s just easy, you get into it and boom, everything’s going to just come together. You actually tried this on your own once and sent out marketing, sent out some mail pieces. What did that end up resulting? What did the results look like on that?
Katharine K.: They looked like nothing. [crosstalk 00:03:00] I looked like a 0% response rate.
Cody Hofhine: How many mail pieces are we talking? Sometimes that’s hard to gut, to swallow. You send out mail and you had a 0% response rate. Did you find out what was the issue? Was it not enough mail or what was it?
Katharine K.: I think it was probably not enough mail, but I mean it was less than a thousand but probably not by much. And the number on there was correct, everything was on there. I don’t know what the problem was but… That was not the market for me.
Cody Hofhine: I think it was just your first test of wholesaling to let you know that, Hey, this is not going to be easy. You are going to have to rhino through this. But man, already right out of the gates when you got into this. This was before you joined the tribe when you did that, right?
Katharine K.: It was, yes, it was about two or three months before I joined.
Cody Hofhine: Okay, so a zero response rate, that’s probably already your first gut check. Like, hey, I spent some money and this was absolutely ridiculous. A 0%. What got you the courage to really look at moving forward?
Katharine K.: I was really interested in it. I’ve been really interested in real estate for a while, but I just was never into the hours of an agent with young kids. I actually stumbled across the podcast somehow and started listening to Tom and then you when you joined in and you guys kind of inspired me to give it another shot.
Cody Hofhine: I love it. I love it. I love it. So even with that gut check moment, 0% response rate, I mean, did you also have thoughts even as you’re listening to the podcast and you’re listening to tribe members doing this across the nation where you thinking like, Aw man, this is still too good to be true, or is it kind of like, Oh man, this might be the fit?
Katharine K.: Well, I mean I knew I felt really good about it when I joined the, it might be too good to be true or this is something everyone else can make work except for me was more like a month in the tribe or you know, a couple of weeks after my first mailing went out and most of the calls that I got were, never call me again.
Cody Hofhine: That happens so often, but you gutted that up and you rhinoed through it, which is awesome. About how long into it, I mean are we talking before you started seeing phone calls come that now were turning into like leads turn into people you could actually talk to and possibly turn into deals?
Katharine K.: It wasn’t long. I mean it was probably less than a month after I started planning my first mail piece. I got some good people. No deals came from the first billing of it. But the follow up, that’s where I found what ended up being my first deal.
Cody Hofhine: Okay, well lets kind of deep dive that. This is where we get to literally deep dive this deal, talk about it step-by-step and I know there’s so many people that are going to love how you did this deal and they’re going to be listening for key gold nuggets here so that they can start implementing these same exact thing. So lets kind of break it down. You said it was a mailer. Were you mailing out letters? Were you mailing out postcards? What does that look like?
Katharine K.: Yeah, mailing out the tribe postcard.
Cody Hofhine: Awesome. The tribe postcard, which is smoking hot. We love it. What lists were you mailing to, is this like a owner occupied, a high equity, a tax delinquent? What lists were you mailing to?
Katharine K.: This one was an absentee, I think with 30 or 40% or more equity.
Cody Hofhine: Okay, so absentee owner with 30% or more equity. Awesome stuff. Absentee owner, for those listening, those are like homes that the owner does not live in it, whether it’s a rental or whether it’s a second home, but it’s not owner occupied. It’s just absentee owner. Now is this person in state or did they live out of state?
Katharine K.: He lived… This deal was actually in South Carolina. I mean he lives in South Carolina as well. I’m only about an hour North of Greenville, so I added some of that territory in.
Cody Hofhine: Okay, not a far hop and a skip. You’re right there by the border. Now is that still part of your territory as well? Do you still market that area?
Katharine K.: You know I’m going to follow… I’m going to finish up this cycle with it, but after that I’m probably going to just focus more on Hendersonville, which is the town that I live in and the two little towns surrounding me and kind of try to focus there more because that’s where I live, and I’d rather drive 10 minutes than an hour to go see a house.
Cody Hofhine: Okay. Now one thing that might, I think it just happens to so many people. Right when you think you’re going to make a break and like, okay, this is my time to get into real estate. What happened before? Just to kind of give people background of, you’re getting ready to join the tribe, jump all in and then something took place at your house that kind of made this like a hiccup in your process. What was that?
Katharine K.: Yes. We bought a new house, and we got moved in here and then all of a sudden… I’ve never lived in a house with a septic tank before, but this house is on one and it started backing up into our house. So we had it… Yeah, disgusting. We had it inspected and they said this thing is half the size that it needs to be for a house this size, whole thing has to get ripped out and replaced.
Cody Hofhine: Oh, and so here was this instant, I was going to say, no pun intended, as you say, dump of money into the house and, and probably the wrong word, pouring money into the house right out of the gates. But I loved that you still stuck with your goals. Your goal was, I want to get into wholesaling. You did not let this, even though that was uncomfortable, and it took money to fix that problem, you still move forward. You get your mailers out, you get these phone calls coming in. And you said your second time around or was this from just follow up from that first round that you were talking to this individual?
Katharine K.: This was, this was from a second mailing that went out, but the same, same list. But that’s just the second mailing.
Cody Hofhine: Well you rhinoed through all this trouble. I love it. Here it is literally crap happened, and you just pushed through it and now you’re talking to people all times. Second time around you’re talking to this homeowner and what does that conversation look like? What made you know this person was motivated, ready to sell a home?
Katharine K.: So this was probably… I would not be surprised if this is the weirdest deal that I ever do. He texted me and he’s a developer, he was a landlord, but he’s a developer primarily now, and he is just looking to dump one real estate investment that he owns after another. So he said, “you’ve asked me about this particular house” and this was all over text. I literally… This is not an exaggeration, I did not talk to him on the phone a single time. It was by a text. And because he’s just always too busy to talk on the phone. So he answered all my questions sometimes in the middle of the night about the house and we kind of just went back and forth on the numbers and then I locked it up just without ever speaking to him on the phone.
Cody Hofhine: Holy cow. Did you have… you never even met him at the property? Go look at it. I mean this was all done by text and drive bys and things like that [crosstalk 00:10:10].
Katharine K.: It was all done by text…
The other strange thing about this one is that I never saw the house in person at all. It was tenant occupied and he did not want the tenant to know that he was selling it.
Cody Hofhine: Did that help also… I guess what I want for myself and also for the listeners, does that also help in the negotiation process? Meaning Hey, if you’re not even going to let me look at this, then my cash price, like site unseen is going to be this. I mean, did it help? Did it help with that negotiation process?
Katharine K.: It did and you know, if I could do it over again, I probably would have been more aggressive. But, hindsight being what it is. But yeah, it definitely did help.
Cody Hofhine: But here’s the best part of what you’re saying, hindsight I would’ve been more aggressive, but that’s the best part. You got in there, you’ve never done a deal before. You just took massive action. You get this home under contract and hindsight, you learn something. The best part about that is you looked back and said, what would I have done different? Now moving forward, you’re going to be that much better on your wholesaling game, you’re going to be that much better in your negotiation. It’s going to be that much better maybe for your assignments. But that’s the whole point.
You didn’t go through this and just say, okay, off to my next one. You also found out where things that could have been done better and now you’re looking back on it and what to do. You’re, you’re capitalizing on those teaching moments and we always talk about here in the tribe, education is cancer, but Tom and I are also firm believers that the only education you should ever receive, is from your mistakes, from making mistakes, from failing your way forward because those mistakes, that failure is future to… it’s tuition for future success and so I’ll say that again, those failures, those mistakes are tuition for a future success. I love that you’re taking these moments in and now learning from how to better yourself.
Katharine K.: Yeah, it was definitely the whole thing. Start to finish was a good learning experience.
Cody Hofhine: It’s so random. Not many people do a deal all through texts and this lets you know that in fact, this could be the first podcast that talks about how everything was done by text. It’s just so random. A couple of podcasts ago, we’re talking about how this person had all the money in the world and just gave the wholesaler a killer deal because they had won the lottery back in the 90s and they had all the money they could ever handle. They just didn’t want to have people walking through the house. They just wanted a simple process.
So, you never know what you’re going to come across, which is beautiful about wholesaling is there’s so many ways to find these deals and every story is going to be unique from someone that wants to do everything by text to someone winning the lottery to someone that might have a septic tank blow up in their house. There’s so many ways. Well perfect. Even though you talk by text, cause here’s the thing, we’re not looking for homes, We’re looking for motivated sellers. How through texts, cause it’s so hard, how are you able to hear motivation? I mean was there certain phrases, words he was saying that made you know like Oh man, this guy literally wants to get rid of this.
Katharine K.: Well he was very upfront with the fact that he really wants to focus on development now, and he’s been a landlord for a while that he’s just over it. So you know, he was, he was very upfront about the fact that he’s looking to get rid of houses. He doesn’t want the headache of it anymore. He wants get them gone. He was upfront about that and then with the price kind of back and forth, he threw out a number, I threw out a number, was about 30% of that and then, and he came way down and so that kind of showed me that he was pretty motivated.
Cody Hofhine: Yeah. Yeah. He had some bigger goals and was willing to get this going for speed to get this going. Now is this something that you’re in constant talk with him about his other properties?
Katharine K.: He actually just sent me another one about a week ago.
Cody Hofhine: All by text again. [crosstalk 00:14:12].
Katharine K.: All by text, I may never talk to this guy on the phone.
Cody Hofhine: It’s so crazy. So random. But that lets you know, do not be disturbed everyone. Rhino Nation, do not be disturbed that all communication goes by texts cause sometimes that’s going to happen. Okay. So never met with them. It was like even the contract, the agreement was all done by email.
Katharine K.: It was all DocuSign.
Cody Hofhine: All DocuSign, okay. Never met him at closing. You don’t even know if this guy exists.
Katharine K.: I meant to go to closing. The closing ended up being like two days before Thanksgiving and it just with my work schedule, it just didn’t, I couldn’t fit it in.
Cody Hofhine: Okay. Okay. So you get this all done, like literally you don’t know if you’re talking to a ghost or anything else, but you power through it, you get this done. What did that look like? You put the agreement together. From there, how many cash buyers did you have that were interested in this property or I should say purchasing this agreement?
Katharine K.: Not many because it was going to be site unseen. A lot of them just said, you know, I gave them the address, they drove past it. The house was not in good shape and the current tenant was not taking very good care of it, but he’s been tenant there for five or six years and was going to continue to be a tenant, pays his rent on time, just the house wasn’t in good shape. I had a couple of them come back and give me really, really, really low offers that were less than I had signed it for, and randomly enough I put it on Craigslist and that’s where I ended up getting my Buyer. [crosstalk 00:15:46].
Cody Hofhine: Someone that really wanted it.
Katharine K.: And the other strange thing also never talked to him on the phone all via text.
Cody Hofhine: The cash buyer? [crosstalk 00:00:16:00].
Katharine K.: Yeah.
Cody Hofhine: So all around this whole deal from with the seller to the cash buyer, it was just a text friendly conversation is all it was.
Katharine K.: The whole thing. It was… [crosstalk 00:16:09].
Like I said, this may be the weirdest deal I ever do. It was so strange.
Cody Hofhine: Sure. Now did that make it tricky because obviously your buyers, they can’t see the- they can’t really go physically inspect the property, anything like that because the tenants in place, they don’t want the tenant to know they’re selling. At some point they’re going to find out all that stuff, but ultimately you found a guy that’s motivated enough that’s like, yes, I like this area, I want this home. What did you put it under contract for, with the seller, and then ultimately, what did you assign it for to your cash buyer?
Katharine K.: I got it under contract for 20,000 and I signed it for 25.
Cody Hofhine: Holy smokes. We’re talking, you said 20,000 and assigned it for 25?
Katharine K.: I did, but with this guy, he was the whole thing again via text. His first number was 15 and I said, “sorry, I can’t make that work” but I said, “what about 25?” Then he went back and forth and then he’s like, “okay, I can do it if you pay half of the closing costs.” At this point, should I have probably said that’s not my process, probably. But, I was so excited. [crosstalk 00:17:17].
Cody Hofhine: It’s your first deal!
Absolutely. Hold on one second.
Speaker 1: [inaudible]
Cody Hofhine: We have got a victory there cause that was your first deal and I will tell you the same thing happened for me. My first deal I made 24,000 dollars, it was absolutely awesome and it was the worst deal to have happen. Your first deal. Cause then you think, Oh man, life’s going to be good every deal. I’m going to make 24 and that’s not the case. With that being said, I found out that the guy that I wholesaled this property to, he turned around and didn’t fix it up, didn’t do anything. He did the exact same thing. He wholesaled it and he did another 18,000 above that. There was so much money left on the table, but I didn’t even care. Like I literally went home and I talked to my wife. I’m like, Oh, I don’t care. 24 grand. Like that’s where money I made my first year of insurance. Like I love this and I will tell you that is a huge success. So ultimately, what was your net on that assignment?
Katharine K.: About 4,100.
Cody Hofhine: 4,100 dollars that is amazing. Your first deal, you’re not even that far into this business. You’ve already got one deal under your belt, one deal closing next week, which let’s talk that one. What… how much you going to make on that deal thats closing next week?
Katharine K.: About 11,000.
Cody Hofhine: Hold on. Not many people get two victory bells, but Katharine you are getting it.
So 11,000 dollars next week and then you’ve got a deal that’s in the pipeline that’s under contract, things are starting to move for you. What is it that… What’s your goal? What’s your mindset now? As you look at this, you’ve talked about, and I should have asked even beforehand, you said, “well, I was busy during that time because of my job.” What is your future look like? Do you see that you’re still going to be doing a job and this on the side? Are you going to start doing this full time? What does that look like?
Katharine K.: Yeah, no, it’s been kind of funny. I started tithing and the weirdest thing happened. My success at my nine to five kind of went through the roof. My commissions have been on the last three months, about 10 times what they are on average, but it is a nine to five. It is something I’m looking to get away from. The plan is to probably go full time early next year.
Cody Hofhine: Oh wow. That is huge. But I will tell you something I’m so glad you brought up, cause I don’t know if I talk about it strongly enough and I should because I believe in it so much. That’s the fact that I love the keywords for everyone out there. If there is a gold nugget worth taking away from this podcast over everything else she’s even talked about that’s already golden nuggets and things that you can implement your business. The number one thing to success and all successful people do, and that’s tithe. 10% set aside for tithing.
It’s so interesting. But yet it always is this way when I talk to people that are tithing, they say the exact same thing. When I started tithing, this started taking place and literally the tenfold the law of the harvest took place and it came back 10 fold and now your business has taken off. This is incredible. If there’s anything out there I want to tell each of you I to tithe 10% of my money and I will tell you that is the secret sauce. That is what makes our business continue to go. That is why our students are successful is because they, when they come into the tribe, what is the first book we read Katharine?
Katharine K.: The four laws, Four Spiritual Laws of Prosperity.
Cody Hofhine: That’s it. The Four Spiritual Laws of Prosperity, and in that the main objective there is to get everyone thinking on the spiritual side, the abundant mindset and also the law of tithing. I will tell you, that is so huge and so I tell you kudos to you Katharine, because that is a secret sauce, that is it. When we find ways to be in of abundant mindset and give back and that tithing holding back that 10% I’m telling you, it’s just the law of the harvest takes place and you can’t really explain it other than you start looking at it like, Holy cow, I’ve never had my commissions like this, or Holy cow, I’ve never been this consistent in deals or, Holy cow, I’ve never made this much money in assignment fee.
I’m telling you it is directly related to the spiritual side as well so thank you for sharing that because I think that is something so worthy of sharing on this podcast and helping people understand just there’s more to it than just sending out mailers. There’s more to it than just meeting with motivated sellers. When you take some money and set it aside for the tithing, it comes back 10 fold. That is awesome. Thank you for sharing. What does that look like from here going forward? I guess let me ask this, we always have these questions for everyone on the podcast. If you were to look back at the very beginning and you had to do something over again, or you’re like, Oh man, I’d make sure I still did this, this way because it worked so good. What is a gold nugget you could give to our listeners that if you had to do it all over again, what would you make sure would stay in place or you’d do differently?
Katharine K.: One of the things, I definitely jumped the gun on getting started before my cash buyer list was really where it should be and, I would say that if I… and I don’t necessarily know that I would do that part differently but, I stopped focusing on growing that list and switched over to just speaking to motivated sellers, and I think I should have been splitting my focus a little bit and trying to do both. My husband is actually starting to help me with that. He’s reaching out to landlords on Craigslist and trying to help me grow that. Ideally this is something that we could do together once it really starts getting going.
Cody Hofhine: Absolutely. Absolutely. We hear this all the time. In fact, some of our favorite students, we’ve got Josh and Marlina Dates that are a husband, wife couple that crush it in Florida. We’ve got Steven and Christian Richardson that her husband wife combo. I’ll tell you, one plus one does not equal two. It can also equal 10. It can really come back in the power of it. That is awesome. If that ends up being a goal, I can’t wait to talk in the future and maybe you’re coming to the live event where you can meet in person to see how the things are going. So I love it. That’s awesome stuff.
Katharine K.: That’s going to be my birthday present this year.
Cody Hofhine: Look at that, birthday present. Come to the live event in Orlando. That’s going to be good stuff that we love. Tom and I love meeting our students in person. That’s where we get to really talk face to face and really talk shop and really see what successes are going on, what hiccups and trials are going on. I’ll tell ya, it’s a good event for just meeting all the tribe. That’s where that community comes together and you feel like your best cheerleaders are there cheering you on. It’s awesome. Awesome, awesome stuff. Well, what book, if you were to say a book that would help our listeners that has helped maybe with mindset or help you keep on track. What is a good book you would recommend?
Katharine K.: The two, I’m going to give two [crosstalk 00:24:16] the Four Spiritual Laws of Prosperity. That book is awesome. I hate to say the same thing that everyone else does, but it’s an awesome book. [crosstalk 00:24:27].
Cody Hofhine: But it’s that powerful.
No, I love that because when you got 80 people saying the same thing, man, that is a book worth buying. I agree with you 100%
Katharine K.: That’s an awesome one. I really, really liked Profit First. I think especially if you’re just getting started, this is such a good way to structure building a business, so that you aren’t… I think that especially getting into this and getting a check for 11,000 and then being like, yay, now I can go spend 11,000 [crosstalk 00:24:58].
Cody Hofhine: Yeah, I can go to Disneyland and get a new car.
Katharine K.: Exactly, and then God forbid tax season comes up and you owe the government a good deal of money. It’s really good to just have a blueprint in front of you of, this is going to go here, and this is going to go here and just build it like that from the ground up.
Cody Hofhine: He made it so simple in that book how to break though that budget up. He made it, how much goes to operations, how much goes to marketing, how much goes to tithing and how much goes to profit. I love his concept. It’s- what does he say? He says, “income minus profit equals expenses”. Meaning a lot of people do income minus expenses, equal profit. He says “No, pay yourself first and then what you have leftover. That’s all you’ve got. You got to use that money wisely on your marketing and get it to keep coming back”. Awesome, awesome advice. I love it. And Katharine, I will tell you, I’m so excited for your future. You are so at, even just at the tip of the ice right at the beginning stages and you’re already finding so much success right out of the gates.
I love that and it helps people realize this is not a long journey. It’s not six months down the road, it’s not a year down the road. You can do deals super quick if you just put your head down and you have a huge why. In fact, if your why’s not big enough, your excuses will be, but Katharine, you’ve been a perfect example of watching someone just get in, jump in and just do exactly step by step what you need to do. Take massive action and the results are, you got deals really quickly so congratulations.
Katharine K.: Thank you.
Cody Hofhine: Rhino Nation, you have just heard an amazing podcast. Gold nuggets about tithing, gold nuggets about what need to do. Doing deals directly by just text message that you could rhino through this and you can make it happen as she has done. I will tell ya, this is great stuff. If you are serious about wholesaling, what is stopping you? Think about your why, have a powerful why and jump into this business. It’s a great business. It’s a great way to serve people. It’s a great way to make money and ultimately get you out of that rat race that Robert Kiyosaki talks about where you can live life on your terms. If you need help building your wholesaling business, reach out to us at Wholesaling Inc dot com, Wholesaling I-N-C dot com and book a call with our team and we’ll have a free strategy call to see if we’re a good fit for one another. If we like what you say, we just might invite you to be part of the tribe. Until next time Rhino Nation, take care and we’ll see you on the other side.