Today’s special guest is Walter Roby. The San Fernando Valley, California native has only been part of the tribe for 3 months. However, even while working full-time, Walter managed to do something totally awesome—he has already closed 2 deals and earned a total of $8,000 in assignment fees!
In this episode, you’ll discover the challenges and setbacks he encountered while closing his first deal and how he managed to work around those hurdles and come out victorious. You’ll also discover how committed he is to succeeding and how that commitment has played a key role in his success.
If you are a newbie in the fascinating world of wholesaling, consider this episode a must-listen. Walter’s story is inspirational as much as it is motivational!
While Walter has tried wholesaling on his own (he sent out 100 to 200 postcards), he was only able to secure his first deal on his 2nd month after joining the tribe. Even if he was not sure about what he was getting into or what his next steps should be, he still took massive, imperfect actions to make things happen.
- His first deal was from someone he found on the high equity absentee owner out of state list.
- Since he works full-time, he used his break to get back to the seller and asked for the name, number, and property address.
- Seller has been doing real estate and was looking to liquidate. Initially, seller wanted $390, 000 for the property but in the end, they both agreed to $385, 000.
- While he was able to close the deal 3 weeks after and walked away $5, 000 richer, he maintains he probably won’t be able to do it if he didn’t commit and gave it his 100%.
Since then, Walter has closed another deal that earned him $3, 000 in assignment fee. Walter’s story is a testament that being a wholesaling neophyte is not a hindrance to success. As long as you are committed and you keep pushing forward, you are already a step closer to closing your next deal!
- How to Close 100+ Deals In Your First 18 Months with Tom Krol (BiggerPockets Podcast 176)
- Wholesaling Real Estate Summit 2018
- Think and Grow Rich by Napoleon Hill
- Thou Shall Prosper by Rabbi Daniel Lapin
- The Four Spiritual Laws of Prosperity by Edwene Gaines
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Cody Hofhine: Welcome to another episode here on Wholesaling Inc. My name is Cody Hofhine and I’m super excited to be with you guys today. We love our Rhino Nation, all of our listeners. So to each of you out there, we’re excited to be with you today. We’re excited for you to listen to today’s episode because there’s going to be some gold nuggets dropped today that you can implement. For those of you that are new to our podcasts, that are new listeners, we welcome you first and foremost. And secondly what we’re going to be talking about is wholesaling. Wholesaling is simply the art of finding deeply discounted properties that you can then turn for huge profits and you can do that through either assignment or through… Some people will keep them for themselves, for a rental, but we’re going to truly just narrow down how to find these deeply discounted off market properties.
I’m talking about properties 30, 40, 50 cents on the dollar and that’s what we are dedicated to on this podcast. So each of you grab a pen and a piece of paper and get ready to jot down some notes. We really want you to take action. That’s what this is all about. This podcast will do nothing for you if you don’t actually take action and implement the things that you are listening to.
Today we have a special guest. A guy that’s right here, rock solid in the tribe. His name is Walter Roby, and he lives in Los Angeles and specifically San Fernando Valley in California. He has his fiance and they’re getting married here in the near future. What’s really unique about Walter is he’s only been doing this for just three months, really, really quick. He’s already done two wholesale deals that has made him combined about $8,000. We’re going to break it down step-by-step one of those deals so that you guys can really hear the meat and potatoes, how you can do your first wholesale deal, super, super quick. Without more, let’s bring on Mr. Walter Roby. Walter, my man, how are you doing?
Walter Roby: Doing good, man. How are you?
Cody Hofhine: Really, really, really good. I’ve been super excited just thinking about as I looked at my calendar today and I’m, “Oh man, I’m already talking to Walter.” It seems like just yesterday this guy was just barely getting into wholesaling and here you are in beast mode already have done two deals and I’m sure there’s still things in the pipeline ready to close in the future too.
Walter Roby: Of course.
Cody Hofhine: So tell our listeners a little bit about you. Tell us about what it is you do daily and this will help kick off the podcast to help people understand because I think there’s so many people that are listening right now that this is going to resonate with. They have full time jobs like you, they are working that nine to five. But tell them a little bit about that because you sit a long time in traffic in LA, that really as I listen to your story, if you can do this, I’m telling you guys, everyone can do it. This story is going to be super motivational. So tell us a little bit about what you do.
Walter Roby: Yeah, so I work in [00:03:57] about 20 minutes away. If you were to drive without traffic, it’s about two hours with traffic.
Cody Hofhine: Wow.
Walter Roby: And I wake up at 5:00 in the morning and I get to work about 7:30. I get off at 4:30. I get home at 6:00. And then you know from six to eight is when I do my wholesaling and then I got a VA that works for me in the daytime and I just had to make it happen with those hours in between. On the one hand it sucks sitting in traffic, but on the other hand, that’s how I built my education. I first came across Bigger Pockets and then I found myself… I got to the office one day and I remember, “Man, who is this guy?” And just filled me with energy and it was Tom Krol.
Cody Hofhine: Oh, if I had a dollar for every time someone said, “I listened to Bigger Pockets where Tom Krol’s on there,” I would be a millionaire. That podcast-
Walter Roby: Right?
Cody Hofhine: Episode was so huge, but I’m telling you it’s because the true Tom Krol, who this guy is, was revealed to everyone and I love Tom. His passion in wholesaling and I love his energy. It’s like a big old bottled up can of caffeine that’s ready to explode any minute.
Walter Roby: Right and that’s the same thing with you and Brent and Tom. It’s like I have the same energy. If my fiance, she works three jobs. She’s over paying the bills and she works in the psych ward at one of them. Well, I forced her to quit because she would tell me stories of her coworkers who would come home with black eyes. And I said, “You know what? If I can’t bring a deal home and my fiance comes home with a black eye, I’m really going to shoot myself in the foot.” That’s why I reached out to you guys and say, “Hey, let’s get it done.”
Cody Hofhine: What a huge why, Walter. I love this and I think what’s going to be so great about this story that you’re going to help everyone understand and this deal that we’re going to break down today step-by-step, is it really forced you to get uncomfortable. It forced you to take action that you had never taken before. And so I really love this because that’s what everyone needs to understand. It’s okay, you’re going to be doing things you don’t even know what you’re doing yet. That is okay. You’re going to make mistakes, you’re going to fail your way forward! You’re going to sound like you’re crazy! It is okay! That’s all part of it.
And so your story, man, I love this because right when we got on the phone, you were telling me before we started this podcast, I had to get uncomfortable. And your why is so clear. You don’t want your fiance working in these jobs that are not safe atmosphere. And ultimately this is going to do it for you, my man. You’re going to do great. You’ve already done two deals. So let’s go into this. Let’s deep dive your first deal and let’s help our listeners understand how they too can do this. Even working full time, nine to five and maybe stuck in traffic three hours a day.
Walter Roby: Right. So this deal, actually, I had tried wholesaling on my own for about a few months before sending out a 100 or 200 mailers, postcards, and yellow letters a week and got no success. Then I heard of advice from you on one of the other podcasts. It was like, no, take that the whole thing. Take massive action and send out a massive list. And I did that. And next thing I know I got a guy. First off, this was the high equity absentee owner out of state that I get-
Cody Hofhine: That’s a good list. So everyone take note if you want to list the mail to, he just said one. High equity absentee owner. So that is a great list to be mailing to. So, and this was a mailer I should say, right?
Walter Roby: Yeah, this was a mailer.
Cody Hofhine: Awesome, okay.
Walter Roby: So he called me and I was actually at work and I couldn’t pick up, but I call back when I can. It’s on my voicemail. I have it to go straight to CallRail, is my marketing number. And on my voicemail I said, “Hey, I’m sorry I can’t reach the phone right now, but if you leave your name, number, and the address of the property you’d like to sell I’ll get back to you as soon as possible.” Next thing I know I have a voicemail with a name, number, and an address of the property.
Cody Hofhine: Oh, man. Let’s even recap what you just said. So listeners, jot this down. I’m telling you, this is one, actually there’s already two or three already but of many that are going to be coming on this podcast. So his voicemail, he said it step-by-step. “Hey this is Walter. Sorry, couldn’t answer the phone. Please leave your name, number, and the property address that you’re calling about and we’ll get back to you as soon as you can.”
You have all your phone calls go to a voicemail and which would make sense as well, because you’re a busy guy, you are working a full time job. So you’re sending them to voicemail and then from there, is that what you’re doing from six to eight when you said you get home and you’ve got those couple hours, is that what you’re doing? You’re getting back to these voicemails?
Walter Roby: Well, no, I actually get back to the voicemails on my lunch break and the other breaks that I get from work.
Cody Hofhine: You stud, [crosstalk 00:08:36] so you’re burning the candles at all ends of the stick. I love this.
Walter Roby: You have to.
Cody Hofhine: I love this. So you’re during your lunch break, your paid breaks that you get during the day, as well as you come home and you pound the phones when you get home.
Walter Roby: Right.
Cody Hofhine: I love it. What did this voicemail sound like? Was it just like a pretty plain Jane like, “Hey, my name is so-and-so and here’s my number and here’s my address,”? Did it sound any more motivating than that or what did it sound like?
Walter Roby: It really didn’t sound motivating. It was kind of really cut throat. It was, “Hey Walter, Philip nine one.” You know, he said the address and it sounded like he was in the military actually. So, I called him back on my lunch break and he said, “I got this property out in Canoga. I’m from Nevada. I’ve been doing real estate for 25 years, but I’m looking to liquidate. This property has a tenant in it and I want to sell it sight unseen and tell me what you think. Give me your offer.” And he wouldn’t give me his number. Afterward I took a look at the property on Zillow. I Google street view. I drove by and it needed a lot of work, but I kept trying to fish out that number, like you guys suggest and he wouldn’t give it to me. So I’m like, all right, well I’m just going to swallow my tongue, bite my teeth. “I’ll give you about 350000 bucks for it.” And after repaired value is going for like 600 in that area. And fixer uppers are going for probably about 430.
Cody Hofhine: So tell me this, as you’re talking to him, there’s real no numbers there, but was there any real motivation other than, “Hey, I want to liquidate?” I mean, was there anything like, “Hey, my tenants trashed it,” or “Hey, I’m falling behind on my mortgage.” I mean, was there really any other motivation besides this or more of just, he was a tired investor that no longer wanted it?
Walter Roby: To be honest, I couldn’t tell of any motivation. I think he was just a tired investor and that was also the same week when I signed up for the Tribe so I didn’t know how to gauge that motivation. I was just winging it and then I didn’t know what to do next. And then that’s when I asked you guys for help.
Cody Hofhine: I love this, but you took action, Walter, my man, I really want you to pat yourself on the back. This is incredible because there’s not many people that dare to take this imperfect action and you know us better than anyone else in the tribe. Some of our favorite quotes are progress, not perfection and take massive imperfect action. And here you are doing exactly that. Keep going. On the phone call, is this guy in Nevada? He’s out of state as you’re talking to him.
Walter Roby: Yeah. So he’s in Nevada. His son lives close by. His son actually has his realtor license. And the one thing I did notice is that he didn’t want to sell the property with a realtor, even though he was the son. I was curious as to why. And he had tenants that had been in there for… I think it was he didn’t want them to catch wind that he’s trying to sell the property and leave because the property was in a condition where he can’t rent it out. So if they leave, there’s going to have a vacant property that’s not earning him any income. Lo and behold, when I gave him… You know, he wouldn’t give me his number. I finally just bit my teeth and offered 350,000 and then he’s, “You know what? No, we don’t have a deal.” Then I-
Cody Hofhine: You’re like, “Oh no, did I just ruin this? Dang it!”
Walter Roby: Exactly. I was about to tuck my tail between my legs and go cry. And then, I rolled up my sleeves. “Well, wait a minute. Why is that? Well, let’s work out a deal. Let’s figure out where do you need to be.” And he’s, “I have a number of my head and you’re not at that number.”
“Tell me where that number is because maybe I can come close and you know we can work. I want to help you out because I know you don’t want to sell with a realtor. I want to make this as easy as possible.” He said he needs to be at 390 and going back and forth. He wasn’t budging at all. But, we ended up getting under contract for 385. So I sent him the contract.
Cody Hofhine: Yeah. What does that look like? Cause this makes it a little bit unique, right? A lot of people would think, “Oh.” At any point did you actually drive to the house and go look at it? Or is this just all done by Google or Zillow?”
Walter Roby: No, I drove by because it was only a few blocks away, but I could have driven by, which is what I probably should’ve done just to see where at have from a motivation aspect.
Cody Hofhine: But I love this he’s out of state though. This is not a typical deal. I mean, you’ll mail to non owner occupied all the time, but that doesn’t necessarily mean they’re out of state. It just means they don’t live in the home. They could live there in the city somewhere, but they just own another rental. But this is specifically a guy also living out of state. Was the process harder? I mean did it make it hard that way or was it just like a DocuSign or did you mail it? What did that look like?
Walter Roby: No, here’s the thing. I kept sending him the contracts, kept sending him a DocuSign and he wasn’t signing anything. He would just completely dismiss everything I send and I’m, “Come on, just sign it. Just sign it! Just sign it!” Because I was so eager, so hungry to get a deal. You know, he was taking his time and it was part of my learning process.
Cody Hofhine: What was his hesitation?
Walter Roby: His hesitation since he, quote unquote, has been doing real estate for 25 years, come to find out he didn’t like the contract. And so when we finally agreed on price, one of his terms is that he wanted a $25,000 nonrefundable deposit. That was actually my idea, but not 25, it was 12. Because at first he didn’t want to sell the deal because he was afraid if I don’t move forward, then his tenants know that he’s trying to sell the property, they’re going to skip town.
And I was, “Well, wait a minute. What if I give you a nonrefundable deposit?”
“What do you mean?”
“So how much are they paying in rent?”
“What if I paid you six months worth of rent as the deposit nonrefundable? Will that work for you? Because that will mitigate your risk of them skipping town. You’ll at least have rent paid for six months or you can use that for repairs or whatever the case may be.”
He’s, “All right, well let me think about that.” So the next day he comes back, “I need $25,000 nonrefundable cash deposited on Monday to open up escrow.” And then that… it was another gut checking moment and I was, “Who’s going to send $25 non refundable?” And he wanted a 60 day escrow because he wanted to give his tenants a long time to find a new place because likes them.
I was, “That’s fine, but having $25 tied up doesn’t really fly with my buyers.” It’s not all coming out of my mouth. I’m getting backlash from my buyer who was interested in this one at the time. It’s really difficult. When we finally agreed on price, I sent him the contract with those terms and he pretty much tore every single paragraph up to shreds that I just picked up from the attorney.
Cody Hofhine: Yeah.
Walter Roby: I got it a week before from the attorney. She’s, “Hey, I use this with all the wholesalers and it’s very good for assignments.” And he pretty much tore it up. His own clauses in there that really left me in the dirt. And the one I remember in particular was if the tenant damages the property, the buyer can cancel the contract less their nonrefundable earnest money deposit.
And then I knew it wouldn’t fly with anyone. So in the midst of going through the training with you guys and also at the time I was reading, I think it was Trump Style Negotiation, they said, you know, let him have a couple of small wins and hide the big win for you. So I gave him, like nine out of 10 corrections that he wanted. But the one that I couldn’t move forward with was if the tenant damages the property then that’s on my end. That’s not cool. He finally agreed and then we signed. I think it was three weeks after that was when we actually closed because the tenants moved out early. But even then, that was only in the middle of the stretch because the escrow company that I used, I thought I’d be doing my buyers a service and using their escrow company. But they didn’t even know what assignment was or what my role was. I had to chase them down to go get my escrow fees.
Cody Hofhine: The first deal proves to be the hardest deal you’ll ever be my friend.
Walter Roby: It was very stupid. Escrow. Closing date, I think it was a Wednesday. So I emailed them on Tuesday because I’ve never closed on a property other than a primary residence. I don’t know how this works.
Cody Hofhine: Sure.
Walter Roby: I don’t know if I’m supposed to walk in and go into the closing table and fill out papers or what I’m supposed to do. So we’re closing on Wednesday, so on Tuesday I shoot them an email, “Hey, let me know if there’s anything you need for me to assist you closing on Wednesday.”
They’re, “Oh, okay cool.” And then Wednesday comes and I don’t get an email, I don’t get a call. I’m, “Huh, well maybe they’re doing paperwork.” On Thursday, I still don’t get a call and I’m “Hey, did this property close?”
And then she’s, “Yeah, we closed yesterday. Everyone got their checks. The seller got his money and the buyer got in the property.
“I’m, “What about the assignment fee?”
“What assignment fee?”
Then I was, “Wait a minute.”
Cody Hofhine: Uh oh.
Walter Roby: “Yeah, there’s an assignment fee.” And then didn’t know what that was. I said, “You know, there’s another contract that was attached with the purchase agreement that has a $5,000 assignment fee in my name.
She’s, “Oh, that’s what it was.” Then she still wasn’t budging on it. She was under an impression that all her work was done.
I was, “Excuse me, Miss. Can you go get original purchase agreement? Okay, who is the seller on that?” And it had the seller’s name. “Who’s the buyer?” It had my name. “All right, and you sold it to a party that wasn’t me, that wasn’t allowed to buy it? There’s another contract on the back end that says, ‘I Walter Roby, assign my rights to my buyer for a fee of $5,000.'”
Cody Hofhine: Yeah.
Walter Roby: And then she’s, “Let me call you back.” And then in an hour, she had my check.
Cody Hofhine: Oh man. So here we are. I want all of our listeners. You can hear the smile and maybe a little bit of laughter in my voice. As I say, the first deal can always be one of your toughest deals because there’s so much new stuff, so many moving parts at the beginning. But Walter, my man, just continued to push through all of this stuff even though it hit him time and time again. He continued to push through this and I love that you just had this, grit, to just keep pushing forward knowing that this is not going to stop me. I’m going to do this. I’m making sure that I do this and it’s not giving up. It’s just going in there and knowing that there’s going to be some difficult things. But I will also tell you, as hard or as challenging as some of these things were on this first deal, you will always remember your first deal. It will be your sweetest deal because it was when your eyes were now open to this completely different ballgame that you get to be a part of.
Walter Roby: Right. Definitely.
Cody Hofhine: What did you end up making? You said $5,000 on your first assignment within… What month did you do this in?
Walter Roby: I actually, I think that was month two.
Cody Hofhine: Month two. You hold on one sec. Hold on. Walter, you know what’s coming by, man. Get ready. We’ve got our victory bell!
Walter Roby: Thank you! Thank you!
Cody Hofhine: For Mr. Walter, that two months in! Brother, that is such good speed! Two months in to just barely learn how to do this. Two months in, you’re already closing on your first deal, making $5,000. Now, at the beginning of the podcast, we talked about how Walter’s already closed on two deals for a total of eight. He has also done a second deal that paid him $3,000. Walter, my man, I’m telling you, you are doing great things and 2018 is looking pretty bright. Can you see this new 2018 that’s a lot different than 2017?
Walter Roby: Most definitely I do. 2018… there’s not enough time in it. I’m so excited for what’s to come. I took that whole $5,000 and instead of putting it back into my marketing, I booked a trip to Orlando, I got a hotel and I reserved pay for everything up front.
Cody Hofhine: Oh my goodness. You’re ready for the live event where all the good stuff happens. We are so excited for that event. So that is exciting news that you’re actually going to be there at the live event in January and this episode should be out before the actual live event goes on. I’m excited for the Orlando event. This is going to be where we beat up all of us rhinos, all in one room and I’m telling you my man, what a wise, wise investment because your mind is going to grow. It’s like Napoleon Hill, Think and Grow Rich. You will have some thoughts in there that are expanding to nothing but money for 2018.
Walter Roby: Right. I’m excited.
Cody Hofhine: Well awesome stuff. That’s good news! I think I already knew you’re coming to Orlando, but that’s good news. Well, Walter tell me this. We always like to do this at the ends of our podcast to make sure that our listeners get some value. For those that are maybe just new, getting into wholesaling or maybe they’re at a struggling point in their wholesaling career. What is it that you would tell them if you were to start over right from the beginning, what would you do differently or what would you make sure you did the same?
Walter Roby: For anyone that is just getting started, you know, struggling. Ask yourself this: Are you really giving it your 110%? Are you really blocking out all the other distractions and going all in? What I did for myself is I went on my Instagram, went on social media, and I stopped following all the shopping and all the clutter. I canceled my TV and I was laser-focus. If I had to do it all over again, I’d do the same and I’d ask the next person, are you doing the same? Are you that committed to succeed?
Cody Hofhine: Wow. I love that. Not many people are willing to do that, Walter, that’s jaw-dropping. That is awesome stuff that you’re willing to say, “Hey.” Because it’s the norm. If you always do what everyone else does, you always have what they have. Right? And if the majority have cable and if the majority are on Facebook and the majority are on Twitter and the majority, are on Instagram. Wow, what a good call out to make sure everyone understands. Hey, these are time killers, these are shiny object syndromes stopping you. These are things that are in your way from actually hitting your goals and I couldn’t agree more with you, man.
Walter Roby: Right. Cody, I have something written down here. I’m on only on page 20 of Thou Shall Prosper and it’s already a game changer. Old you plus new money equals new you. If you flip it around, it says new money equals new you minus the old you.
Cody Hofhine: Wow. Good stuff, man. That book’s a quality book. I’m not even all the way through it. It’s a big thick one. So I’m assuming that would probably be for my next question, what we always like to tell our listeners. What would be a good book that you would recommend that they start reading to help them with their mindset? What is a good book that you have liked that has changed your life?
Walter Roby: I’ve read a bunch of business books. I’ve been reading [inaudible 00:23:00] and the flip books and Gary Keller books for the last four years. The one that really just set off was, everyone always says it, but The Four Spiritual Laws. As soon as that I started tithing and as soon as I started applying what she says in there, just started happening. I got this deal, I got a raise at work. Other things just came in my life that never would have happened before. I’m not a very religious person, you know? So I just tested it out and tried it out and applied what she said. Everything else is behind me now.
Cody Hofhine: So impressive. Walter, spiritual or not, the fact of the matters is this. That’s the first action item I should say. When joining the tribe, that’s the first action item we tell each and every one of our students is get The Four Spiritual Laws of Prosperity. The fact that you are humble enough to be teachable, to learn something new and rather spiritual or not, but then also try it. If it works, you’ll know instantly if it works for you, if it doesn’t work for you. I love to hear that even when you say, “And I’m not even that spiritual,” but you tried it. You took the action, you took on the invitation from me and Tom and then magically look at the things that started to fall into place. I’ll tell you, keep up on that. That is such a sound principle. In fact, some of the richest people I know are the people that always remember to cut that 10% back to God through that tithing. That’s an awesome, awesome book and such an awesome book to share with everyone, so thank you for sharing that.
Walter Roby: Yeah, thank you.
Cody Hofhine: Well, Walter, my man, what is up for 2018? What are your goals to end this podcast? What is it that you are looking to accomplish? Have you really sat down and started thinking about what that looks like? Maybe it’s quitting the full time job in the near future. Maybe it’s X amount of wholesale deals a month. What does that look like?
Speaker 2: I’m looking to scale up and build a team. I currently have a couple of VAs, but if I can bring in at least four to five deals a month, you know, that’d be killer toward the end of 2015.
Cody Hofhine: There you go, my man. Well, thank you so much for being on the show. I know there’s so many people out there that are probably listening to this podcast right now and they’re thinking, “That is my story. I sit in traffic an hour a day, three hours a day, whatever it may be. But I work that corporate American job nine to five. And yes, you know what? I can do this. I can take that 15 minute break or that lunch break and do this in between. And when I get home I cannot go to my couch and listen to the news or whatever and just pound the phones for two hours.”
This is what’s led to your success. And so listeners, I’m telling you, there’s so many gold nuggets from this episode because we will always break it down step by step in a granular approach so that you too, can implement these things. They work! I’m telling you they work. There’s so many things that are in common as you listen to each and every one of our episodes. And Walter has really taken time to capitalize those same exact principles. Implement them, try them out, see how they work for you and I’m telling you, they will only work if you will get off now the podcast and go take massive imperfect action. You’re going to make mistakes. It is okay, but that’s what it’s for. You’ll get one step closer to your next wholesale deal.
For each of you out there listening, if you want to make 2018 your best year ever, and if you want wholesaling to be a part of that and you just don’t know exactly where to start, go over to Wholesalinginc.com. That’s wholesaling-I-N-C.com where you can book a strategy call. It’s free! Reach out to us! Talk to us, strategize with us, let us know what it is you are looking to do, what it is you want to do and let’s see if we’re a good fit. If we like what you have to say, we just might invite you, just like Walter, to be a member of the tribe so that you can move forward and crush your goals for 2018 take care of Rhino Nation and we’ll see you on the next episode.